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NATIONAL BANK Press Release Second Quarter 2021 National Bank reports its results for the Second Quarter of 2021 The financial information reported in this document is based on the unaudited interim condensed consolidated financial statements for the quarter and six - month period ended April 30 , 2021 and is prepared in accordance with International Financial Reporting Standards ( IFRS ) as issued by the International Accounting Standards Board ( IASB ) , unless otherwise indicated . IFRS represent Canadian generally accepted accounting principles ( GAAP ) . All amounts are presented in Canadian dollars . MONTREAL , May 28 , 2021 - For the second quarter of 2021 , National Bank is reporting net income of $ 801 million compared to $ 379 million in the second quarter of 2020. Second - quarter diluted earnings per share stood at $ 2.25 compared to $ 1.01 in the second quarter of 2020. This strong growth was driven by increases in total revenues across most business segments and by a substantial reduction in provisions for credit losses in the second quarter of 2021 , whereas , in the second quarter of 2020 , significant provisions had been recorded to reflect a deterioration in macroeconomic conditions caused by the COVID - 19 pandemic . Income before provisions for credit losses and income taxes ( 1 ) totalled $ 1,039 million in the second quarter of 2021 compared to $ 915 million in the second quarter of 2020 , a 14 % increase arising from good performance in most of the business segments . For the six month - period ended April 30 , 2021 , the Bank's net income totalled $ 1,562 million compared to $ 989 million in the same period of 2020. First - half diluted earnings per share stood at $ 4.40 compared to $ 2.68 in the same period of 2020. This significant increase was driven by net income increases across all the business segments , i.e. , increases that were notably due to lower provisions for credit losses recorded in the first half of 2021 given an improved macroeconomic outlook compared to the same period of 2020. Income before provisions for credit losses and income taxes ( 1 ) totalled $ 2,083 million for the six - month period ended April 30 , 2021 , a 19 % year - over - year increase driven by revenue growth across all business segments . " For the second quarter 2021 , the Bank delivered another strong performance . We continue to operate in an improving economic environment more conducive to business growth , with our Q1 momentum carrying over into Q2 . Our solid results once again reflect the fact that we have made the right strategic choices and have built a strong , diversified and agile franchise , ” commented Louis Vachon , President and Chief Executive Officer of the National Bank of Canada . “ With an industry - leading ROE , strong capital levels and prudent allowances for credit losses , we are well - positioned to selectively seize growth opportunities as we gradually exit the pandemic , " added Mr. Vachon . Highlights ( millions of Canadian dollars ) 2021 Quarter ended April 30 2020 % Change 2021 2020 Six months ended April 30 % Change Net income 801 379 Diluted earnings per share ( dollars ) $ 2.25 $ 1.01 111 123 $ 1,562 989 58 Income before provisions for credit losses and income taxes ( ¹ ) 1,039 915 14 4.40 2,083 $ 2.68 64 1,747 19 Return on common shareholders ' equity ( ¹ ) Dividend payout ratio 22.0 % 38.0 % 10.7 % 45.9 % 21.6 % 38.0 % 14.3 % 45.9 % As at April 30 , CET1 capital ratio under Basel III 2021 12.2 % As at October 31 , 2020 11.8 % Leverage ratio under Basel III 4.4 % 4.4 % ( 1 ) See the Financial Reporting Method section on page 5 for additional information on non - GAAP financial measures .