National Bank of Canada today reported that fourth-quarter profit rose 6%, thanks to higher revenue at all three business units and lower taxes.

The bank said net income in the three months ended Oct. 31 was $220 million, or $1.31 a share, up from $207 million, or $1.20 a share, in the same period a year earlier.

Excluding a year-earlier reduction in the general allowance for credit risk, the bank said fourth-quarter net income grew by $29 million, or 15%.

Net income at National’s personal and commercial banking business rose 13% in the quarter to $124 million.

Profit at its financial markets unit jumped 44% to $75 million.

The wealth-management business profit rose 12% to $29 million.

National Bank said its effective tax rate in the latest quarter was 16%, down from 25.3% in the 2005 fourth quarter.

For the full fiscal year, National earned $871 million, up 2% from 2005. On a per-share basis, the bank earned $5.13 in fiscal 2006, up 5%.

“All of our financial targets have been achieved or exceeded through disciplined implementation of strategies at all levels of the organization. The rigour with which we executed these strategies drove the robust growth of our core business activities with individuals and businesses, and the substantially higher profitability in our wealth management and financial markets segments. As a result, the bank posted record net income in fiscal 2006, which puts it in a strong position to continue creating value for its shareholders and maintaining balance among all stakeholders who are partners in its success,” confirmed Real Raymond, president and CEO.

Also today, the bank raised its quarterly dividend by 8%.

The bank increased its dividend to 54¢ a share, from 50¢ previously. The bank also moved its dividend-payout ratio higher, to 40-50% of earnings, from 35-45% previously.