National Bank saw a 37 per cent drop in its first-quarter profit due in large part to a decision to write off its investment in Maple Financial Group.

The Montreal-based bank – the smallest of Canada's six major banks – says its net income for the quarter totalled $261-million, down from $415-million a year earlier.

Diluted earnings per share were 67 cents for the three months ended Jan. 31, down from $1.16 a year earlier.

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National Bank announced on Feb. 7 that it would write off the value of its 24.9 per cent interest in Maple Financial after a German financial regulator shut down its Maple Bank subsidiary.

The decision cost the bank $145-million after taxes.

Excluding several specified items, including the Maple Bank loss, National Bank says it would have earned $427-million or $1.17 per share in the quarter – up four per cent from $410-million or $1.14 per share a year ago.

The bank's personal and commercial operations contributed $184-million of net income, up eight per cent from last year.

Net income from wealth management was up four per cent to $77-million from $74-million while its financial markets arm contributed $41-million of net income, down from $177-million a year earlier – mainly because of Maple Financial.

Maple Financial Group is unrelated to Maple Acquisition Group, which bought the TMX in 2012.