Saturday, November 22nd4.4°C
24124
23934

Laurentian Bank looks growth in the rest of Canada; boosts Q1 net profit

MONTREAL - Laurentian Bank of Canada will continue pursuing growth outside Quebec in areas such as commercial lending and mortgages this year after boosting its first-quarter profit to $35.5 million.

Chief executive Rejean Robitaille said Wednesday the bank expects to meet its performance targets for fiscal 2014 and is "picking our spots" for growth, including a wider section of the Canadian economy.

The Quebec-based bank wants to specialize in commercial lending in areas such as renewable energy, health care and public-private partnerships, Robitaille told analysts on a conference call.

"We have initiatives in place to further diversify our portfolios geographically," he said.

Laurentian has its base in Quebec and a presence in Ontario, Alberta and British Columbia with about 3,800 employees.

Almost 40 per cent of the bank's loan portfolio is generated from outside Quebec, Robitaille said, adding that 74 per cent of commercial mortgages, 60 per cent of personal loans and 27 per cent of its mortgages are currently from other provinces.

In its financial results, Laurentian (TSX:LB) boosted its net profit by eight per cent in the quarter, up from $25.8 million year-over-year.

The profit amounted to $1.16 per share, up from $1.07 per share or $32.8 million in the first quarter of 2013.

Excluding certain items, Laurentian reported an adjusted profit for the quarter ended Jan. 31 of $39.3 million or $1.29 per share. That compared with $39.1 million or $1.30 per share last year.

Total revenue was up one per cent, rising to $216.1 million compared with $213.9 million a year ago.

However, the bank's provision for loan losses increased by $2.5 million to $10.5 million in the first quarter, up from $8 million in the first quarter of 2013.

Chief financial officer Michel Lauzon said the bank's overall credit quality is strong and continues to benefit from favourable credit conditions in Canada.

"But owing to the growth in loan portfolios, we could still incur a slight increase in impaired loans and loss provisions as the year progresses," he told analysts.

Desjardins analyst Michael Goldberg said that Laurentian's results were in line with his expectations, but added the bank's share price was "likely derailed by concerns about credit quality."

Shares in Laurentian closed down 58 cents to $45.92 on the Toronto Stock Exchange.

The Canadian Press


Read more Business News

23630


Recent Trending




Today's Market
S&P TSX15111.13+35.95
S&P CDNX789.135.56
DJIA17810.0691.06
Nasdaq4712.97+11.102
S&P 5002063.50+10.75
CDN Dollar0.8901-0.0002
Gold1201.50+10.60
Oil76.72+0.87
Lumber331.50+4.50
Natural Gas4.236-0.253

 
Okanagan Companies
Pacific Safety0.155-0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.30+0.03
Cantex0.04+0.005
Anavex Life Sciences0.178+0.008
Metalex Ventures0.03+0.005
Russel Metals31.62+0.82
Copper Mountain Mining2.24+0.06
Colorado Resources0.125-0.015
ReliaBrand Inc0.013-0.002
Sunrise Resources Ltd0.050.00
Mission Ready Services0.35+0.015

 
24130


23967

FEATURED Property
13307034835 Paradise Valley Drive - Peachland
2 bedrooms 1 baths
$128,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


What I learned in China: Part 2

As per my previous article on my visit to China, we have much to learn about and from their people. It is potentially the largest market on earth with 1.3 billion people in one country but much will d...


Retirement: Health Issues

Our health is really our greatest asset and maintaining our health is of tremendous importance. You want to do what you can to ensure that health issues will not jeopardize the enjoyment of your retir...


Be quiet already!

No, you’re not crazy. There really are voices in your head. Voices that keep you from doing what you need to do during your customer care calls. It can be the voice of your teachers, your parent...

_



24207

24119


Member of BC Press Council


22842