National Bank Financial Group (TSX:NA) reported Thursday that its first-quarter profit more than tripled compared with a year ago and hinted it may look to raise its dividend.

CEO Louis Vachon said the earnings, among other factors, could result in more good news for shareholders.

“National Bank is well capitalized and well positioned to increase its dividend,” said Vachon, who added that further study was required.

“In the meantime, we continue to invest in future revenue growth and strengthen our competitive position going forward,” he said during a conference call with analysts.

The Montreal-based bank said Thursday it earned $215 million or $1.22 per share for the quarter ended Jan. 31, up from $69 million or 36¢ per share in the first quarter of the bank’s 2009 financial year.

Excluding specific items, Canada’s sixth-largest bank earned $1.55 — the average analyst expectation of $1.45 a share, according to Thomson Reuters.

National Bank’s revenues totalled $1.08 billion, rising 23 per cent from last year, but fell short of analyst expectations of $1.09 billion in revenue.

National Bank’s quarterly results included a $75-million settlement related to asset-backed commercial paper.

In its personal and commercial banking division, net income was up 2% to $139 million. The financial markets division reported profits of $144 million compared to $74 million in the same quarter of last year.

National Bank said provisions for credit losses, or money set aside for expected losses for unpaid loans, were $43 million in the quarter — or less than the $121 million set aside a year earlier.

“Looking forward and taking into account the relatively slow economic recovery, we still remain cautious with regards to projecting a specific level of loan provision,” chief financial officer Patricia Curadeau-Grou said.

She said that personal and commercial banking along with wealth management represented more than of the bank’s first-quarter net income.

Barclays Capital analyst John Aiken said the bank benefited from lower than anticipated provisions for credit losses, but he qualified his overall assessment of the bank’s performance.

“While the decline in provisions for credit losses is a distinct positive we note that the underlying metrics were not as favourable,” Aiken wrote in a note.

He said impairments, particularly in real estate were higher over the same time last year.

“We note that NA’s gross impaired loan balance remains at a cyclical peak, but should be manageable,” Aiken said.

Shares in National Bank closed up $1.12, or 2%, at $59.73 Thursday on the Toronto Stock Exchange with more than one million shares traded.