Source: The Canadian Press

National Bank Financial Group (TSX:NA) said Thursday it earned $261 million, up from a year ago, when the bank earned $241 million.

The Montreal-based bank said the profit amounted to $1.50 per diluted share for the quarter ended April 30 compared with a profit of $241 million or $1.41 per share a year ago when it took a $20 million in after-tax charges related to asset-backed commercial paper.

The average analyst estimate had been for earnings of $1.46 per diluted share, according to Thomson Reuters.

Revenue was $1.05 billion, up from $1.03 billion.

Return on equity was 18%, down from 18.5% a year ago.

“In the second quarter of 2010, the personal and commercial segment excelled with a steadily increasing loan volume,” said Louis Vachon, president and chief executive of National Bank.

“The results of financial markets were also up from the second quarter of 2009, which had benefited from highly favourable market conditions.”

The bank said earnings from its personal and commercial segment rose 23% to $141 million for the quarter fuelled by a solid increase in personal and commercial loans.

The wealth management business earned $28 million in the quarter, down from $30 million a year ago, while National Bank’s financial markets business earned $125 million, up 3 million from the same quarter of 2009.

Shares in National Bank, which reported its results after the close of markets, were down 94 cents at $58.07 on the Toronto Stock Exchange.