Canadian investors should be very familiar with the Big Six bank stocks. However, the sixth-largest Canadian bank often flies under the radar. Today, I want to look at this under-the-radar bank stock following the release of its third quarter 2021 results.
National Bank (TSX:NA) is a Quebec-based financial institution and the sixth largest of the Big Six Canadian banks. Its shares have climbed 39% in 2021 as of close on August 30. The bank released its third quarter 2021 results on August 25.
The bank reported net income of $839 million in Q3 2021 – up from $602 million in the third quarter of 2020. Net income in the first nine months of 2021 came in at $2.40 billion which was up from $1.59 billion in the year-to-date period in 2020. Personal and Commercial Banking delivered net income of $330 million over $223 million in Q3 2020. This increase was powered by higher revenues and lower provisions for credit losses.
National Bank also reported net income growth of 30% in its Wealth Management division and 21% in its Financial Markets segment. Meanwhile, its U.S. Specialty Finance and International division saw net income increase 85% from the prior year to $161 million.
Shares of National Bank last had a favourable price-to-earnings ratio of 12. It announced a quarterly dividend of $0.71 per share. That represents a 2.8% yield. Like its peers, National Bank put together a strong quarter on the back of a resurgent economy. This is another bank stock you can trust in 2021 and beyond.
