National Bank of Canada NA-T , the country's sixth-largest chartered bank, said net income more than tripled to $241-million as trading revenue soared and the bank cut costs.
Profit was $70-million a year earlier, when the bank took writedowns for its holdings of asset backed commercial paper and for restructuring costs. Profit for the most recent quarter was $1.39 a share, up from 37 cents a year earlier The bank said that after extraordinary charges and gains are backed out, earnings for the quarter were up 7 per cent, thanks in large part to a very successful quarter for its investment-banking and trading businesses.
The financial markets business almost doubled its profit as it earned more trading stocks and bonds and helping clients with transactions such as mergers.
“Despite the recession, National Bank turned in one of its finest financial performances in recent years,” chief executive officer Louis Vachon said in a statement.
The bank set aside $5-million more against credit losses, an increase of about 10 per cent, to cover losses on personal loans and credit cards.
The bank's shares declined, dropping 4.4 per cent in midday trading Thursday as the results fell short of analysts' expectations, in part because of lower earnings from its retail branches. The consensus estimate was that National would earn $1.46 a share.
