Big Banc Split Corp. Rewards Investors with Share Split and Payout Boost

TORONTO, ON – April 25, 2026 – In a move signaling strong confidence and rewarding its shareholders, Big Banc Split Corp. (TSX: BNK) has announced a 1.2-for-1 stock split for its Class A shares. The decision, driven by the fund's robust performance, will provide investors with increased payouts and make the popular shares more accessible.

Class A shareholders of record at the close of business on May 1, 2026, will receive 20 additional Class A shares for every 100 shares they own. The shares are expected to begin trading on a post-split basis when the market opens on May 4, 2026. The split effectively increases the total dollar amount of distributions paid to Class A shareholders by approximately 20%, offering a significant boost to income-focused portfolios.

A Reward for Strong Performance

The share split is not a routine corporate action but a direct result of the fund's exceptional returns. Since its inception on June 24, 2020, Big Banc Split Corp.'s Class A shares have delivered an impressive 23.4% per annum total return based on net asset value. This performance stands in sharp contrast to the broader market, with the fund outperforming the S&P/TSX Composite Total Return Index by a substantial 6.2% annually over the same period.

Recent performance has been even more remarkable. Over the past year, the fund's Class A shares generated a staggering 70.7% return, more than double the 34.8% return of the S&P/TSX Composite Index. This sustained outperformance highlights the effectiveness of the fund's management and its underlying investment strategy, providing the foundation for the board's decision to execute the split.

Riding the Wave of Canadian Banking Strength

The success of Big Banc Split Corp. is intrinsically linked to the resilience and profitability of its holdings: an equally weighted portfolio of Canada’s ‘Big Six’ banks. These financial institutions are pillars of the Canadian economy and have demonstrated remarkable strength in the current economic climate.

In the first quarter of 2026, the Big Six collectively reported approximately $19 billion in profit, a significant increase from the $14 billion posted in the same period last year. This surge was largely fueled by powerful results in their capital markets and wealth management divisions. For example, Royal Bank of Canada saw its profit climb 13% year-over-year to $5.8 billion, while TD Bank Group’s net income soared 45% to $4.04 billion. This solid operating momentum from the underlying bank stocks provides a powerful tailwind for the fund, translating directly into the high returns its investors have enjoyed.

The fund’s structure allows it to further enhance these returns. By writing covered call options on up to 30% of its portfolio, the fund generates additional income, which contributes to its monthly distributions and helps mitigate volatility.

What the Split Means for Investors

For current and prospective investors, the share split has several practical benefits. First and foremost is the impact on income. Following the split, the monthly cash distribution will be set at $0.12 per Class A share. While the per-share amount is adjusted for the new share count, an investor who held 100 shares will now hold 120, resulting in a 20% increase in the total cash they receive from distributions.

This enhanced payout makes the fund even more attractive to income-seeking investors. As of April 22, 2026, Big Banc Split Corp. already boasted a trailing twelve-month dividend yield of 23.22%, significantly higher than the average for top dividend payers in Canada's Financial Services sector.

Secondly, the split aims to improve liquidity and accessibility. By lowering the per-share price, the fund becomes more attainable for retail investors who may be deterred by a higher entry point. While a stock split does not change the fundamental value of an investor's total holding or the fund's market capitalization, it often leads to increased trading volume and a broader shareholder base.

Decoding the Split Corp Structure

Big Banc Split Corp. operates using a “split corporation” structure, which is designed to meet the needs of two different types of investors through two classes of shares. The Class A shares (TSX: BNK) are designed for investors seeking capital appreciation and regular monthly cash flow. The Preferred Shares (TSX: BNK.PR.A) are for investors seeking fixed, cumulative preferential monthly cash distributions with lower risk.

The announced share split applies only to the Class A shares; the preferred shares are not affected. Following the split, the preferred shares are expected to benefit from a downside protection buffer of approximately 60%, based on the net asset value of the fund. This structure allows investors to choose the risk-and-return profile that best suits their financial goals.

The fund is managed by Purpose Investments Inc., a prominent Canadian asset management firm with over $30 billion in assets under management. Led by well-known entrepreneur Som Seif, Purpose has built a reputation for client-centric innovation, offering a range of specialized investment products. Big Banc Split Corp. is a key example of its strategy to provide targeted solutions that give investors unique access to specific market segments, in this case, the stable and profitable Canadian banking sector.