National Bank earns $70M in Q4

Writedowns continue to eat into the bottom line of National Bank Financial Group as Canada's sixth largest bank reported a fourth-quarter profit of $70 million Thursday, compared with a loss of $175 million for the same period a year ago.

Earnings were dragged down by after-tax charges of $78 million related to Asset-Backed Commercial Paper (ABCP), $44 million attributable to restructuring and $36 million resulting from a write-off of tangible assets.

In the fourth quarter of 2007, the bank had after-tax writedowns of $381 million. Almost all of the amount was related to ABCP, as the U.S. sub-prime mortgage debacle effectively froze the market for the securities.

Quarterly earnings amounted to 37 cents per share, compared with a loss of $1.14 a share for the same period last year.

The bank said its full-year net income was $776 million, or $4.67 per share, up 43 per cent from $541 million in 2007.

"Despite a significant economic slowdown and exceptionally difficult financial conditions worldwide, National Bank posted solid and profitable results," CEO Louis Vachon said in a release.

"The contribution of the personal and commercial segment grew, that of the wealth management segment remained stable and that of the financial markets segment was highly acceptable," he said.

Shares of National Bank Financial closed down $2.27, or six per cent, to $35.55 on the TSX.