National Bank today reported a 6% increase in profit for the first quarter ended January 31.
The Montreal-based bank said Q1 profit was $255 million, up from $240 million a year ago.
Earnings per share were $1.58 up from a year-earlier $1.43 per share.
Included in the quarterly profit was a $32-million gain on the sale of its Bahamian subsidy. Excluding that gain and including $14 million in financing costs and professional fees related to asset-backed commercial paper, the bank said its adjusted earnings were $237 million, $1.46 per share.
Total revenues in the quarter were down 6% to $929 million from a year-earlier $989 million.
“These are very good results considering the strong volatility currently being experienced on various global financial markets,” president and CEO Louis Vachon said in a news release.
“We are continuing to lay the groundwork of the bank’s renewed development strategy with a view to accelerating our rate of growth in order to achieve our financial objectives.”
In the bank’s personal and commercial segment, Q1 net income was $130 million, an increase of 6%, owing to higher revenues coupled with lower operating expenses.
In wealth management, National Bank said total revenues slipped to $216 million in the quarter, as against $223 million in the first quarter of 2007, a variation the bank attributed to weaker financial markets that primarily affected its securities brokerage subsidiaries.
In the bank’s financial markets segment, net income dropped to $73 million in the quarter, versus $83 million in the year-earlier period.
The bank also announced it has named Rejean Levesque as executive vice-president – personal and commercial banking.
National Bank profit climbs 6%
Volatile markets trim wealth management revenue
- By: IE Staff
- February 28, 2008 February 28, 2008
- 11:40