June 24th, 2024

Laurentian Bank Q1 profit down, provisions for credit losses up from a year ago

By The Canadian Press on February 28, 2023.

Laurentian Bank headquarters is seen in Montreal, Tuesday, April 5, 2022. THE CANADIAN PRESS/Ryan Remiorz

MONTREAL – Laurentian Bank of Canada reported its first-quarter profit fell compared with a year ago as its provisions for credit losses ticked higher.

The Montreal-based bank said Tuesday it earned $51.9 million or $1.09 per diluted share for the quarter ended Jan. 31, compared with a profit of $55.5 million or $1.17 per diluted share a year earlier.

Revenue totalled $260.1 million for the bank’s latest quarter, up from $257.5 million in the same quarter last year.

The bank said the higher revenue came as net interest income rose to $187.1 million compared with $180.9 million a year earlier, mainly due to higher interest income from commercial loans, partly offset by higher funding costs and lower mortgage prepayment penalties.

Other income was $73.0 million for the quarter, down from $76.6 million a year earlier as volatile market conditions unfavourably impacted financial markets revenue and the bank recorded lower lending fees.

Laurentian said its provision for credit losses in the first quarter was $15.4 million, up from $9.4 million a year earlier, mainly due to higher provisions on impaired loans.

On an adjusted basis, Laurentian said it earned $1.15 per diluted share in the quarter, compared with an adjusted profit of $1.26 per diluted share a year earlier.

Analysts on average had expected a profit of $1.12 per share, according to estimates compiled by financial markets data firm Refinitiv.

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

This report by The Canadian Press was first published Feb. 28, 2023.

Companies in this story: (TSX:LB)

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