UPDATE 1-National Bank of Canada profit rises on wealth, markets
* Ex-items profit C$1.09/share vs C$1.05
* Profit driven by wealth management, financial markets
* Montreal bank is first Canadian lender to report Q1 result
TORONTO, Feb 24 (Reuters) - National Bank of Canada, the country's sixth-largest lender, said on Monday its first-quarter profit rose 9 percent, driven by stronger wealth management and financial markets income.
The Montreal-based bank earned C$405 million ($365.87 million), or C$1.15 a share, in the fiscal first quarter ended Jan. 31. That compared with a year-before profit of C$373 million, or C$1.05 a share.
Excluding certain items, including a gain on the rise of fair value of certain restructured notes and a reduction in pension-related service costs, the bank earned C$1.09 a share. That exceeded analysts' expectations of a profit of C$1.05 a share, according to Thomson Reuters I/B/E/S.
Wealth management income jumped 42 percent to C$68 million, helped by the C$250 million acquisition of TD Waterhouse's Institutional Services Business, which was completed in November.
National and its Canadian peers have been seeking to add to their wealth management businesses in order to offset sluggish growth in Canadian consumer lending profits.
Indeed, personal and commercial banking income rose a meager 3 percent to C$168 million, as personal lending grew 7 percent and commercial lending increased by 5 percent from a year ago, while net interest margins narrowed to 2.25 percent from 2.32 percent. Continued...