Laurentian Bank of Canada Reports Lower Profit and Revenue

Laurentian Bank of Canada has announced a decrease in both profit and revenue for the quarter, mainly due to one-off costs and charges.

Decrease in Net Income

In the three months ending on October 31, the Quebec-based bank reported a net income of 30.6 million Canadian dollars ($22.5 million), which amounts to C$0.67 per share. This is a decline from the previous year’s comparable quarter, where they achieved a net income of C$55.7 million, or C$1.26 per share.

Impact of Mainframe Outage and Restructuring Charges

During this quarter, Laurentian Bank of Canada experienced a significant mainframe outage in September, which resulted in a cost of approximately C$5.3 million before tax. Additionally, restructuring charges totaling C$15.9 million were incurred.

Adjusted Earnings and Total Revenues

Adjusted earnings for the quarter reached C$1.00 per share, lower than the analysts’ expectation of C$1.16 per share as reported by FactSet. Furthermore, total revenues decreased to C$247.4 million from C$260.8 million, contrary to the expected slight rise to C$261.6 million.

Provision for Credit Losses

The provision for credit losses, which involves setting aside funds to cover bad or uncollected debt, rose to C$16.7 million from C$17.8 million the previous year. However, Laurentian Bank highlighted that improvements were made in this area during the quarter due to volume reduction and credit migration.

Common Equity Tier 1 Ratio

The common equity tier 1 ratio, a measurement of a bank’s core capital compared to its riskier assets like loans and mortgages, reached 9.9% compared to 9.1% in the previous year.

Overall, despite the lower profit and revenue, Laurentian Bank of Canada remains committed to strengthening their financial position and addressing the challenges faced during this quarter.