- Wednesday, October 16, 2024
Laurentian Bank of Canada reported a drop in its fiscal third-quarter earnings but still managed to beat expectations on an adjusted basis. The Canadian bank, primarily operating in the province of Quebec, posted net income of 49.3 Canadian dollars ($36.4 million), or C$1.03 a share, for the three months ended July 31, compared to C$55.9 million, or C$1.18, a year ago. These figures include C$8.2 million in charges for restructuring and related to a strategic review.
On an adjusted basis, the bank's earnings slipped to C$1.22 a share, surpassing the C$1.16 mean estimate of analysts polled by FactSet. Despite this, revenue for the quarter remained relatively stable at C$260.8 million, slightly below expectations for C$263.2 million.
Laurentian Bank's net interest income saw a modest increase of about 2% to C$260.8 million, while other income fell roughly 4% to C$68.7 million. Notably, the bank's net interest margin expanded to 1.84% for the quarter, higher than the anticipated 1.80% as predicted by analysts.
At the same time, Laurentian Bank's provision for credit losses, which represents the estimated amount required to cover potential losses due to credit risk, narrowed to C$13.3 million from C$16.6 million for the corresponding quarter last year. The reduction in provisions on performing loans was driven by volume reduction and credit migration, partially offset by higher provisions on impaired loans.
Overall, despite a decline in earnings, Laurentian Bank of Canada has managed to exceed expectations on an adjusted basis, demonstrating resilience in a challenging market environment.
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