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Laurentian Bank touches 7-week low as Q4 profit misses Street view

Last updated: 13:57 10 Dec 2014 EST, First published: 14:57 10 Dec 2014 EST

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Laurentian Bank (TSE:LB) retreated to the lowest in seven weeks after Canada’s seventh-largest bank posted adjusted earnings in its fiscal fourth quarter that lagged behind analyst expectations.

Shares declined to C$47.56, the lowest intraday price since Oct. 16, and were trading at C$47.70, down 5.1 percent, at 2:36 p.m. in Toronto.

Net income rose to C$33.8 million, or C$1.09 per diluted share, for the three months ended Oct. 31, from C$25.9 million, or C$0.82 per share, a year earlier, the Montreal, Quebec-based lender said in a statement today.

Excluding one-time items, adjusted net income jumped to a record of C$42.6 million, or C$1.39 per diluted share, from C$38.5 million, or C$1.26 per a share, last year.

Revenue increased to C$221.4 million from C$215.5 million.

Analysts were looking for earnings of C$1.41 per share on $221.6 million of revenue.

“Our growth in business activities, as well as our rigorous control over expenses and the sustained credit quality of the loan portfolio contributed to our strong financial performance in an environment of slowing consumer loan demand and compressed margins,” chief executive officer Rejean Robitaille said in the statement.

He said the bank will continue to focus in 2015 on higher-margin commercial activities and increasing its footprint outside of Quebec.

Laurentian also boosted its dividend for the third time in the past year, raising its payout by 4 percent to C$0.54 with the next payment in February.

Laurentian joined Quebec banking competitor National Bank of Canada (TSE:NA), Scotiabank (TSE:BNS), CIBC (TSE:CM) and Bank of Montreal (TSE:BMO), which all announced recently they are raising their dividends.

Provisions for loan losses rose by $6 million to reach $42 million for the year, and were up 5 percent to $10.5 million in the fourth quarter.

The bank’s core personal and commercial segment’s adjusted profit grew nearly 18 per cent to $33.4 million in the quarter on $153.8 million of revenues.

 

 

 

 

 

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