Canadian Banks

[cjcride]

A great way to keep Net Profits below 1 Billion Canadian dollars would be to increase the Dividend payment to Shareholders

 

[BMWTurboDzl]

True, but they may be anticipating a downturn and therefore increasing their capital base in order to absorb potential losses.

bankofcanada.ca/2021/06/staff-analytical-note-2021-12/

 

[Danh]

Dividend payments do not reduce net income.

 

[cjcride]

Dividend payments do not reduce net income.

I thought it would come under business expense.

Update: Just did some follow up research and you guys are correct.

Darn!

 

[Danh]

I thought it would come under business expense

Dividends are a distribution of profits so are charged to retained earnings rather than operating expense. If you look at a set of financial statements you won’t find any mention of dividends in the income statement; they are a balance sheet only item.