National Bank of Canada is reporting weaker profit for the second quarter ended April 30.

The bank says net income was $122 million or 62¢ a share before goodwill. That is down from $145 million, or 71¢ a share, in the prior-year period.

During the quarter, the National Bank increased its provision for credit losses by $100 million following a decision by BCE Inc. to cease providing financial support to its Teleglobe subsidiary.

The bank says it also reduced its general allowance for credit risk by $30 million and recorded $10 million in revenues generated by merchant banking investments.

Taken together, these items reduced earnings for the quarter, net of income taxes, by $38 million or 20¢ per share.

Revenues were $827 million, up 4% from $798 million. Return on equity, fell to 13.1% from 16.6%.