Bank of Montreal is reporting much improved fourth-quarter profit due to reduced provision for credit losses compared with last year.

Profit soared to $398 million, or 75¢ a share, in the quarter ended October 31, up from $4 million in the same period last year. Excluding items, the bank earned 85¢a share.

Fourth-quarter revenue rose 17% to $2.3 billion from $2 billion, while return on equity rose to 14.6% from negative 0.4% last year.

During the quarter net income of Personal and Commercial Client Group grew by 32% with year-over-year revenue growth of 10%

Private Client Group net income, excluding non-recurring items, rose strongly from a year ago, and jumped 50% from the third quarter

Results for the fourth quarter also included $39 million of non-recurring acquisition-related costs.

For the full year, the bank earned $1.42 billion, down slightly from $1.5 billion a year ago.

The bank’s full year loan-loss provision came in at $820 million, in line with guidance of $775 million to $825 million provided earlier this year.

“This quarter’s results were easily the best of fiscal 2002 and we anticipate that BMO’s financial performance will have improved relative to its peer group average when all the results are in,” BMO chairman and CEO Tony Comper.