National Bank profit plunges as it writes off stake in Maple Financial
A branch of the National Bank is shown on December 8, 2011, in Montreal. National Bank announced Thursday, Dec. 6, 2012, that its quarterly dividend will go up in the new year, following a fourth quarter that saw its net income rise 20 per cent over the same time last year. (Ryan Remiorz / THE CANADIAN PRESS)
The Canadian Press
Published Tuesday, February 23, 2016 9:34AM EST
MONTREAL -- National Bank (TSX:NA) saw a 37 per cent drop in its first-quarter profit due in large part to a decision to write off its investment in Maple Financial Group.
The Montreal-based bank -- the smallest of Canada's six major banks -- says its net income for the quarter totalled $261 million, down from $415 million a year earlier.
Diluted earnings per share were 67 cents for the three months ended Jan. 31, down from $1.16 a year earlier.
National Bank announced on Feb. 7 that it would write off the value of its 24.9 per cent interest in Maple Financial after a German financial regulator shut down its Maple Bank subsidiary.
The decision cost the bank $145 million after taxes.
Excluding several specified items, including the Maple Bank loss, National Bank says it would have earned $427 million or $1.17 per share in the quarter -- up four per cent from $410 million or $1.14 per share a year ago.
The bank's personal and commercial operations contributed $184 million of net income, up eight per cent from last year.
Net income from wealth management was up four per cent to $77 million from $74 million while its financial markets arm contributed $41 million of net income, down from $177 million a year earlier -- mainly because of Maple Financial.
Maple Financial Group is unrelated to Maple Acquisition Group, which bought the TMX in 2012.