An increase in revenues and higher loan and deposit volumes helped drive up Laurentian Bank of Canada’s net income in the fourth quarter, the company reported on Wednesday.

For the three-month period ended Oct. 31, Laurentian Bank’s net income was $38.2 million, up from $27.3 million in the fourth quarter of 2008.

Net income in the quarter includes income from discontinued operations of $11.5 million related to the sale of asset management activities in fiscal 2005, the bank noted. Income from continuing operations was $26.8 million for the fourth quarter of 2009, up from $22.9 million last year.

Total revenue jumped 17% to $178.5 million in the fourth quarter, from $152.8 million in last year. Net interest income increased by $14.9 million to $118.2 million mainly due to higher loan and deposit volumes, the bank said.

The provision for loan losses amounted to $16 million, compared with $10.5 million in the fourth quarter of 2008. The bank attributed the year-over-year increase to the effect of overall economic deterioration on most portfolios.

Return on common shareholders’ equity was 15.3%.

For the year ended Oct. 31, Laurentian Bank reported net income of $113.1 million, or diluted earnings of $4.23 per common share, compared with $102.5 million, or diluted earnings of $3.80 per common share in 2008. Return on common shareholders’ equity was 11.4% in 2009, compared with 11% in 2008.

The boost in earnings resulted from record growth in personal and commercial loan and deposit portfolios, the bank said, as well as higher revenue from brokerage operations. But results were dampened by higher loan losses resulting from poor market and economic conditions throughout the year and losses on securities.

Total revenue rose to $666.5 million for fiscal 2009, from $630.5 million last year. The increase was driven by higher net interest income, as well as strong increases in fee income and brokerage revenues.

“We reached all our objectives for 2009 and completed another record year at Laurentian, despite weaker economic conditions in Canada,” said Réjean Robitaille, president and CEO. “The bank continued to perform well, as we have succeeded in taking advantage of certain market opportunities in an unsettled environment. Furthermore, with solid liquidity and capital levels, we maintained a strong financial position throughout the year. However, higher loan losses, as a consequence of the recession, have weighed on our profitability in 2009.”

Robitaille added: “Our confidence in the Bank’s future performance and our solid balance sheet prompted us to recommend a $0.02 per share, or 6%, increase in the quarterly dividend to $0.36 per common share.”

The bank said the board of directors approved the increase to the dividend at a meeting on Wednesday. The dividend will increase beginning with a distribution on Feb. 1 to stockholders of record as of Jan. 4.