National Bank of Canada today reported a loss for the fourth quarter. The bank had previously issued a warning that it would take a big charge on asset backed commercial paper (ABCP).

The Montreal-based bank said it lost $175 million, or $1.14 a share in the three months ended October 31. That was down from a profit of $220 million, or $1.31 a share, in the same 2006 period.

Despite the quarterly loss, National Bank said it would increase its dividend by 2¢, to 62¢ a share, and has authorized a buyback program that could see it repurchase up to 3%of its shares.

The bank said last week that it would take a $575 million pre-tax charge, or $365 million after tax, related to its holdings of non-bank ABCP.

The bank said that excluding the ABCP charge and other items, it earned $217 million. or $1.34 a share in the fourth quarter.

Removing the ABCP charge and other one-time items, quarterly net income still declined in the bank’s personal and commercial banking business, falling to $111 million in the quarter, from a year-ago profit of $116 million that included a gain on securities.