The President and Chief Executive Officer of Laurentian Bank, Réjean Robitaille, during its 2010 meeting of shareholders held in Montreal.Paul Ducharme/Handout/Laurentian Bank of Canada
Laurentian Bank said its profit increased 17 per cent in the third quarter as it announced two transactions with Mackenzie Financial.
The Montreal-based bank earned $35.3-million, or $1.34 per share, for the period ended July 31. That beat analyst expectations and was up from $1.13 a year earlier when it earned $30.1-million.
Revenue was $191-million, up 1 per cent from $188.8-million in the prior year.
Laurentian had been expected to earn $1.19 per share on $189-million of revenue, according to analysts polled by Thomson Reuters.
Chief executive Réjean Robitaille said he was satisfied that the bank had significantly increased its profitability "in a challenging retail banking environment."
In its agreements with Mackenzie, the first will see Laurentian Bank subsidiary B2B Trust acquire the MRS companies for $165-million. MRS provides trust and administrative services to more than 135 dealers firms and 14,000 financial advisers.
The transaction is expected to close in November, subject to regulatory notifications and approvals.
The second deal would make Laurentian Bank the main distributor of a preferred series of Mackenzie funds beginning in 2012.
The move would enhance the bank's product offerings and improve the competitiveness of its wealth management operations.
As a result of this agreement, the bank said it may be required to pay Industrial Alliance a $7.6-million penalty to terminate early in 2012, the existing distribution agreement of IA Clarington funds.
On the Toronto Stock Exchange, Laurentian's shares gained $0.59 at $44.19 in morning trading.