Saturday, October 10th9.9°C

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


Recent Trending

Today's Market
S&P TSX13964.36-14.30
S&P CDNX552.26+5.20
S&P 5002014.89+1.46
CDN Dollar0.7723-0.0001
Natural Gas2.52+0.02

Okanagan Companies
Pacific Safety0.225-0.005
QHR Technologies Inc1.25+0.02
Metalex Ventures0.07+0.02
Russel Metals21.26-0.29
Copper Mountain Mining0.66+0.05
Colorado Resources0.07+0.00
ReliaBrand Inc0.0175+0.0009
Sunrise Resources Ltd0.02+0.00
Mission Ready Services0.075-0.005
Decisive Dividend Corp3.25+0.14
Diamcor Mining0.97+0.03


202582715686 Whiskey Cove Road
3 bedrooms 3 baths
more details
Click here to feature your property
Please wait... loading

Income for life?

Photo: Thinkstock.comIn almost every conversation I have with clients these days, the topic swings to interest rates. What direction they’re going, how long will they stay where they are and how...

Perfect (reno'd) home

Photo: Thinkstock.comHow many times have you found a home in the perfect location, but it needs too much work as per the home inspection? There is a great program available through most lenders that w...

5 Claim misconceptions

Photo: Thinkstock.comIf you have been hurt in an accident or as a result of medical negligence you will likely look to your friends and family for some advice on how to deal with the situation. These ...


Member of BC Press Council