Quarterly profit rose at National Bank of Canada, even though the bank took previously announced writedowns for commercial paper, staff layoffs and other items.

The bank said Thursday it earned $70 million, or 37¢ a share, in the fourth quarter, ended Oct. 31. That was up from the year-earlier period, when it lost $175 million, or $1.14 a share, because of a big charge for the repurchase of asset-backed commercial paper from clients.

In November, the bank disclosed that it would take charges totaling $237 million before tax in the quarter due to further writedowns of asset-backed commercial paper, an internal restructuring that will cut 400 jobs, and a writedown of tangible assets.

The results for the quarter include a $117 million loss related to the impact of asset-backed commercial paper, a $66 million loss due to restructuring charges, and a $54 million loss resulting from a writeoff of tangible assets.

Excluding unusual items, the bank said it earned $228 million, or $1.36 a share, up from $217 million, or $1.34, a year earlier.

“During the fourth quarter, we streamlined our organizational structure, which had an impact on our results,” Louis Vachon, president and chief executive, said in a release.

“However, this initiative will enable us to better serve our clients and cope with the economic conditions we will face in the coming quarters.”

On a segment basis, Personal and Commercial banking contributed $223 million for the fourth quarter of 2008, an increase of 7% compared to the corresponding quarter of 2007.

Net income for Wealth Management totalled $47 million in the fourth quarter of 2008, compared to $29 million for the corresponding quarter of 2007, an increase of $18 million.

Financial Markets posted net income of $70 million in the fourth quarter of 2008, practically the same as in the corresponding quarter of 2007.

The bank reported at Tier 1 capital ratio of 9.4% as at Oct. 31, compared to 9.0% as at Oct. 31, 2007.

IE