National Bank revises its provision for credit losses

National Bank of Canada today announced 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 therefore amount to $325 million as against $200 million in fiscal 2000. Worsening economic conditions in North America during the quarter have had a negative impact on the credit quality of the Bank's commercial loans in both the United States and Canada.

The National Bank also reported that the transaction announced on June 27^th with Global Payments Inc. has been closed. The transaction, which involves payment solutions for the Bank's credit card merchants, will generate a one-time gain of approximately $70 to $75 million on a taxable equivalent basis, which will be accounted for in the fourth quarter of 2001.

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