National Bank of Canada is reporting a higher profit for the fourth quarter ended October 31. The bank says the increase was due in part to the recovery in stock markets.

Net income for the quarter was $158 million, upfor a 17%, compared to $135 million in the corresponding quarter of 2002.

Earnings per share were 87¢ for the fourth quarter versus 71¢ for the corresponding quarter of 2002.

Provisions for bad loans were $50 million, slightly lower than $53 million last quarter.

Return on equity rose to 16.4% in the quarter from 14.5% last year, while revenue advanced 14% to $903 million from $795 million.

The bank also raised its quarterly dividend by 18% to 33¢ per share.

The bank says each of its three business segments posted solid growth.

Personal and Commercial declared net income of $79 million for the fourth quarter of 2003 for an increase of $11 million, or 16%, compared to the same period in 2002. The improvement was attributable to wider spreads and higher other income, particularly for insurance products.

Wealth Management benefitted from the stock market recovery, generating net income of $24 million in the fourth quarter, a jump of 60% from $15 million in the fourth quarter of 2002.

Net income for Financial Markets was up 49% to $73 million in the fourth quarter of 2003 versus $49 million for the same period a year earlier. Trading activities accounted for most of the net income growth in this segment.

Tier 1 and total capital ratios were 9.6% and 13.4% respectively as at Oct. 31, 2003 compared to 9.6% and 13.6% as at Oct. 31, 2002.

http://www2.ccnmatthews.com/scripts/ccn-release.pl?/current/1204032n.html