National Bank Financial Group announced on Thursday that net income soared to $241 million in the fourth quarter of fiscal 2009, up from $70 million last year.

For the three-month period ending Oct. 31, the bank’s diluted earnings per share stood at $1.39 versus $0.37 for the same quarter of 2008.

Revenue for the quarter totalled $1.1 billion, up from $765 million last year. More than half of this increase is due to the ABCP impairment charge recorded in the fourth quarter of 2008. Gains were also driven by higher revenue from trading activity, which stood at $191 million, up $78 million compared to the same quarter of 2008. In addition, underwriting and advisory fees jumped to $81 million from $49 million one year earlier, due to increased trading on the markets.

Return on common shareholders’ equity was 16.7% in the fourth quarter of 2009 compared to 5.0% in the same quarter of 2008.

“Despite the recession in 2009, National Bank turned in one of its finest financial performances in recent years,” said president and CEO Louis Vachon. “In the fourth quarter, the bank continued to make investments throughout its network, creating new customer service positions and, recently, finalizing a national partnership agreement with Sun Life Financial. We will carry this momentum into 2010, ensuring that our One client, one bank vision becomes a reality.”

In November, Sun Life Financial and National Bank announced a strategic partnership that will give Sun Life Financial advisors access to a wide range of National Bank lending products for clients.

National Bank recorded a $54-million provision for credit losses in the fourth quarter, up $5 million from last year. The increase was mainly due to losses on personal loans and credit card receivables, the bank said.

The bank’s Tier 1 capital ratio rose to 10.7% as at October 31, 2009, up from 9.4% a year ago.

For fiscal 2009, National Bank reported net income of $854 million, up 10% from $776 million in fiscal 2008. Total revenues for fiscal 2009 were $4.13 billion, up from $3.64 billion for fiscal 2008.

Net income for the bank’s wealth management segment totalled $26 million in the fourth quarter of 2009, down from $45 million in the same quarter of 2008. The segment’s total revenues stood at $191 million, as against $213 million last year.

Net interest income was down $18 million, mainly due to a narrower spread on deposits, the bank said.

Operating expenses in the segment rose $6 million to $153 million in the fourth quarter, mainly due to an increase in variable compensation and an adjustment to the allowance for vacant premises.

For fiscal 2009, net income for wealth management fell $38 million to $115 million from $153 million in the same period of 2008. Its revenue fell to $757 million, down from $834 million for fiscal 2008, due to lower transaction volume, the narrower spread on deposits, and assets under management and administration that on average remained lower than 2008 levels due to the downturn in stock markets.

In the bank’s personal and commercial business, a jump in loan volumes helped drive total revenues up $16 million or 3% to reach $587 million in the fourth quarter. Loan volumes rose 8% in the fourth quarter compared to the same period last year, especially consumer loans. Net interest income advanced $6 million to total $359 million for the quarter.

But net income for the bank’s personal and commercial business slipped to $112 million for the quarter, down from $122 million in the same quarter of 2008. National Bank noted that it experienced a narrowing of the net interest margin, which was 2.46% in the fourth quarter of 2009 versus 2.61% in the same quarter of 2008.

For fiscal 2009, net income for the personal and commercial segment totalled $504 million, unchanged from fiscal 2008.

The bank’s financial markets segment posted net income of $140 million in the fourth quarter of 2009, up $72 million from the same quarter last year, thanks to higher trading activity revenues and higher revenues from banking services.