National Bank of Canada posted growth in revenue and profitability in the third quarter ended July 31 compared to the corresponding year-earlier period.

Growth in total revenue in the third quarter grew to $933 million, up 5% from $889 million in the third quarter of 2005. Rise in diluted earnings per share to $1.30, a 10% increase over the year-earlier period. The quarter was highlighted by an after-tax gain of 5¢ per share associated with the initial public offering of MasterCard Inc., of which the bank is a shareholder.

The bank’s three main business segments each reported higher revenue and profitability and improved productivity. Total revenue increased robustly on the strength of the personal and commercial segment. With net income totalling $220 million, the third quarter was the best quarter for the bank this fiscal year.

“The disciplined deployment of our strategies continues to pay off. Increasing the profitability of our operations is more important than just trying to grab a larger share of the market. The success of this approach is borne out in wider spreads and the continued high quality of our loan portfolio. We are well on our way to achieving our financial targets for fiscal 2006,” said Real Raymond, president and CEO.

During the quarter, National Bank appointed Louis Vachon as chief operating officer of the bank. In creating this position, the bank intends to boost operational efficiency by fostering synergy among its operating units. It will also afford Raymond more time to focus on the bank’s strategic development, client and investor relations and risk management.