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Laurentian Bank Posts Higher Q3 Profit - Update

(RTTNews) - Laurentian Bank of Canada (LB.TO) said Thursday that its third quarter profit rose 5% from last year, driven by higher net interest margin and strong growth in loan and deposit volumes.

The company reported net income for the third quarter of C$30.1 million or C$1.13 per share, compared to C$28.7 million or C$1.08 per share for the year-ago quarter.

Total revenue for the third quarter rose 7% to C$188.8 million from C$176.7 million in the same quarter last year.

Laurentian said its net interest income for the quarter increased 15% to C$129.9 million from C$112.8 million a year ago.

However, interest margins should remain under pressure, due to sustained competition for retail customers and the continued low interest rate environment, as well as the Bank's higher liquidity level, the company said in a statement.

Provision for loan losses for the third quarter increased to C$20.0 million from C$16.0 million in the prior year quarter, particularly affected by a C$5.0 million loss on a single commercial exposure during the quarter.

With only three months remaining in the current fiscal year, the company believes that it is well positioned to meet the 2010 objectives set at the beginning of the year, including revenue growth of 5% to 10% and earnings of C$4.00 to C$4.70 per share.

Separately, Laurentian Bank of Canada declared a regular quarterly dividend of C$0.36 per share, payable on November 1 to share holders on record on October 1.

Laurentian Bank shares are currently trading at $46.70, down $0.86 or 1.81%.