National Bank of Canada is reporting reduced profit for the fourth quarter ended October 31. The bank said earnings slipped during the quarter despite growth across most business lines and lower loan loss provisions.

Net profit was $135 million, or 71¢ a share, down from $147 million, or 73¢a share, a year ago.

The bank said it generated an after-tax gain of $47 million on the sale of its merchant payment unit. Excluding this item, as well as discontinued operations, adjusted net income rose to $146 million in the fourth quarter, or 77¢ a share.

That is up 26% from $116 million, or 56¢ a share, in the corresponding quarter of 2001.

For the full year, the bank earned $429 million, or $2.18 a share, down from last year’s $582 million, or $2.88 a share.

Real Raymond, president and CEO, said National’s performance was “satisfactory in light of the difficult economic environment.”

Return on equity for the year was 14.3% on a reported basis.

During the fourth quarter, the Personal Banking and Wealth Management unit improved by 8%, while the Commercial Banking division gained 11 %.

However, those gains were offset by an 11% slide in income from the Financial Markets, Treasury and Investment Banking.

Loan loss provisions were lower at $53 million, compared with $98 million last year.

Revenues were higher at $368 million from $340 million, while return on equity was 15.7%, after adjustments, compared with year-ago ROE of 11.9%.

The bank also raised its quarterly dividend by 2¢ to 26¢ a common share.