National Bank of Canada is reporting increased profits for the fourth-quarter ended October 31.

The bank said its net earnings for the quarter were $163 million, or 81¢ a share, before goodwill and discontinued operations. This an increase from $131 million, or 65¢ a share, last year.

The bank said revenues were $875 million, up 15% from $759 million last year. It attributed jump in part because of the $76 million net gain related to its merchant card business, as well as 9% growth in treasury and investment banking.

National said it has increased the provision for loan losses in 2001 to $205 million, up from $184 million last year.

Return on equity rose to 17.2% from 14.9%, before discontinued operations and goodwill charges.

For the fiscal year, National said net income, before discontinued operations and goodwill charges hit a new record at $627 million, or $3.11 a share, up 26% from a year ago.

Excluding the gain from the sale of merchant credit card operations, income before discontinued operations and goodwill charges for 2001 was up 18% from 2000.

The bank’s Tier 1 capital ratio was 9.6% versus 8.7% a year ago

Andre Berard, Chairman of the Board and Chief Executive Officer, described the results of the last fiscal year as excellent in every respect. “Despite the marked slowdown in Canada’s economy and a confirmed recession in the United States,” Berard said, “the National Bank succeeded in maintaining its steady growth and staying on course as regards its ambitious profitability and performance objectives.”