Laurentian Bank beats expectations, hikes dividend but profit slips
Laurentian Bank of Canada beat analyst expectations and hiked its dividend in the second quarter, though profit slipped as the bank set more funds aside for bad loans.
Laurentian Bank’s profit slipped to $49.3 million in the three months ending April 30, from $59.5 million a year earlier. On an adjusted basis, Laurentian earned $51.7 million in profit, or $1.16 per share. Bloomberg analysts, on average, had been expecting $1.11 per share.
The bank also raised its quarterly dividend one cent to 47 cents per share, payable on Aug. 1.
“I am extremely pleased with our results this quarter and the progress we have made in optimizing our funding profile, ending the quarter with a very strong liquidity position and capital level,” said Laurentian president and chief executive Rania Llewellyn in a press release accompanying the results.
Provisions for credit losses increased to $16.2 million in the second quarter from $13 million last year. The bank’s expenses also grew by $10.4 million year over year to $182.5 million, lead by covering costs such as employee salaries and technology investments.
Laurentian Bank’s conference call discussing the results will take place today at 9:00 a.m. ET.
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