National Bank of Canada first-quarter profit fell 73% as it took charges of $184 million related to asset-backed commercial paper.

The Montreal-based bank said earned $69 million, or 36¢ a share, in the quarter, ended Jan. 31. That compares with a net profit of $255 million, or $1.58 a share, in the same period last year.

Excluding unusual items, the bank said it earned $253 million, or $1.51 a share, up from $237 million, or $1.46 a share, last year.

Revenue declined 6% to $876 million.

“The operating results for the first quarter of 2009 were up from the corresponding quarter of 2008, primarily due to the good performance of the Personal and Commercial and Financial Markets segments. The relatively good performance of the Wealth Management segment is also worth noting, given the current economic environment,” said Louis Vachon, president and CEO, in release.

“In addition, the efforts with regard to the ABCP restructuring have finally paid off, with the issuance of new notes. This success is one of the few positive restructuring events in the context of a global financial crisis,” Vachon added.

Personal and Commercial contributed $250 million in the first quarter of 2009, an increase of 4% compared to the corresponding quarter of 2008. Net income for the quarter grew 5% to $140 million.

Net income for Wealth Management totalled $32 million in the first quarter of 2009, compared to $39 million for the corresponding quarter of 2008, a decrease of $7 million.

Financial Markets posted net income of $73 million in the first quarter of 2009, up $1 million from the corresponding quarter of 2008.

The bank also announced that, beginning next year, it will submit the compensation policy for its executive officers to its shareholders for an advisory vote.

The vote on National Bank’s compensation policy will be non-binding, as had been requested in the related proposal submitted by a shareholder, the Mouvement d’education et de defense des actionnaires (MEDAC), for the bank’s annual meeting scheduled for Friday.

National Bank says it is the first major bank in Canada to agree to submit its compensation policy for executive officers to shareholders for an advisory vote.

IE