Laurentian Bank beats analyst expectations despite profit slip

Laurentian Bank Holds Annual Meeting Of Shareholders

The Laurentian Bank of Canada’s profit slipped in the first quarter as expenses rose and it set aside more funding for loans potentially going bad.

The bank’s reported profit fell by just over six per cent year over year to $51.9 million in the three-month period ending Jan. 31. On an adjusted basis, the bank’s profit was $54.3 million, or $1.15 per share, down nearly nine per cent from a year earlier but ahead of Bloomberg analyst expectations of $1.13 per share.

Laurentian Bank’s provisions for credit losses, or the amount the bank sets aside for loans potentially going south, was $15.4 million in the first quarter, up from $9.4 million the same period last year.

Total revenue edged up one per cent to $260.1 million on rising net interest income ($187.1 million) from commercial loans. Adjusted non-interest expenses also climbed five per cent year over year to $180.5 million due to higher employee salaries and technology investments.

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“We had good financial results this quarter driven by growth in commercial banking, while also maintaining healthy capital ratios and liquidity levels,” said Laurentian Bank chief executive Rania Llewellyn in a press release accompanying the results.

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