National Bank has reported net income of $210 million for the second quarter of 2016, down from $404 million in the same quarter of 2015.
The huge drop was “essentially […] a result of a sectoral provision for credit losses recorded for producers and service companies in the oil and gas sector,” the bank says in a release. Diluted earnings per share stood at $0.52 in the second quarter of 2016 compared to $1.13 in the second quarter of 2015.
Read: Scotiabank Q2 profit falls 12% due to restructuring
Excluding the sectoral provision of $183 million, net of income taxes, and excluding other specified items (see page 4 of this for a list of these items), the 2016 second-quarter net income totalled $420 million, up 2% from $411 million in the second quarter of 2015, and the 2016 second-quarter diluted earnings per share stood at $1.14, relatively stable compared to $1.15 in the second quarter of 2015.
For the first six months of fiscal 2016, the Bank’s net income totalled $471 million versus $819 million in the same period of 2015, and its first-half diluted earnings per share stood at $1.19 versus $2.29 in the same period of 2015. Excluding the sectoral provision and specified items, the Bank’s first-half net income totalled $847 million, up 3% from $821 million in the same period of 2015, and its first-half diluted earnings per share stood at $2.31, essentially unchanged from $2.30 in the same period of 2015.
The bank raised its quarterly dividend by 2% to 55 cents per share.
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