The country's sixth-largest bank says net income was $404 million, or $1.13 per share, compared to $362 million, or $1.01 per share, a year earlier.
Adjusted profits, which filter out specific items, increased 10 per cent to $411 million or $1.15 per share. Analysts were expecting $1.12 per share, according to data from Thomson Reuters.
Revenue grew to $1.42 billion from $1.28 billion.
Within its divisions, National Bank's financial markets business saw profits increase 25 per cent to $160 million.
National Bank is also raising its quarterly dividend to 52 cents per share from 50 cents per share.