The Montreal-based bank announced Thursday that its quarterly dividend will rise by four cents to 79 cents per share per quarter, a five per cent increase.
National Bank also reported $553-million in net income in the second quarter, up 69 per cent from the same time last year. About $212 million of that profit came from a gain on the bank's sale of Natcan Investment Management in April.
National Bank's net income before adjustments was $3.22 per diluted share, or $1.95 per share after adjustments.
Analyst estimates compiled by Thomson Reuters put revenue for the second quarter at $1.28 billion and earnings per share at $1.86.
Revenue for the quarter was $1.5 billion, up from $1.2 billion in the same quarter last year.
"In the second quarter of 2012, National Bank continued to experience excellent operating results while facing increased competition and less favourable market conditions," president and CEO Louis Vachon said in a statement accompanying the financial results.
Excluding special items, National Bank had $347 million of net income in the three months ended April 30 – up six per cent from a year earlier.
"Given the current environment, the bank continues to prudently manage risk and costs and will keep investing wisely in technology and staff training," Vachon said.
"Furthermore, the Bank's solid capital level will support growth initiatives and add value for shareholders, particularly through dividend growth."
The bank's wealth management division had quarterly net income of $233 million, up from $49 million in the same quarter last year, helped by the sale of the Natcan investment service.
In the banks's personal and commercial segment, quarterly net income rose 14 per cent to total $166 million.
In the financial markets division, net income totalled $115 million for the second quarter of 2012, down $12 million from $127 million in the same quarter of 2011.
The bank had $49 million in credit losses to cover bad loans, $6 million lower than the same quarter in 2011.