National Bank of Canada announced on Tuesday that it expects its provision for credit losses in the fourth quarter of 2001 to be approximately $136 million, for an increase of $65 million over the previous quarter.

On an annual basis, the provision for credit losses for fiscal 2001 would amount to $325 million as against $200 million in fiscal 2000.

The bank advised that worsening economic conditions in North America during the quarter have had a negative impact on the credit quality of its commercial loans in both the United States and Canada.

National Bank will release its fourth quarter results on December 6, 2001.