National Bank 2Q adjusted net up 6%, wealth segment income up 20%

National Bank 2Q adjusted net up 6%, wealth segment income up 20%

Montreal-based National Bank reported an adjusted 6% rise in fiscal second-quarter net profit -- rising to $369 million from $347 million a year earlier -- excluding the extraordinary gain from the sale of its Natcan Investment Management unit. Income in the bank’s wealth-management segment was up 20%, also after discounting the gain from the Natcan sale.

"In the second quarter of 2013, the Bank delivered record results thanks to excellent performance in our three business segments. Both wealth management and financial markets increased net income by more than 20%, benefiting from the momentum in our coast-to-coast expansion,” said president and chief executive Louis Vachon.

Excluding the $198 million net gain from the Natcan sale, National Bank reported $434 million in net income for the second quarter, a drop of 22% from $553 million in the second quarter of 2012. For the first six months of fiscal 2013, the bank's net income totalled $798 million versus $904 million a year earlier.

In the wealth management segment, excluding the gain from the Natcan sale, second-quarter net income was up 23% at $58 million and second-quarter total revenues amounted to $289 million versus $277 million in the same quarter of 2012, due largely to higher net interest income generated on higher deposit volumes and to higher fee-based service revenues.

Excluding specified items, the segment's first-half net income totalled $114 million versus $93 million in the same period of 2012. Total revenues amounted to $565 million compared to $539 million for the first six months of 2012.