Skip to main content

The Globe and Mail

Laurentian Bank profit plummets on restructuring costs

Laurentian Bank’s main branch in downtown Montreal.

John Morstad/The Globe and Mail

Laurentian Bank of Canada missed expectations as restructuring costs caused its net profit to plummet 41 per cent to $27.2-million in the fourth quarter of its fiscal year despite an increase in revenues.

Adjusting for one-time items, the Quebec-based bank said its net income dipped three per cent to $35.2-million, or $1.14 per share. That compared to $36.2-million or $1.17 per share a year earlier.

Revenues for the period ended Oct. 31 were $215.5-million, up two per cent from $210.4-million a year ago.

Story continues below advertisement

The bank was expected to report $1.31 per share in adjusted earnings in the quarter on $220.5-million of revenues, according to analysts polled by Thomson Reuters.

For the full year, Laurentian Bank's (TSX:LB) net profit decreased to $124.7-million from $140.5-million a year earlier. On an adjusted basis, its profits reached a record $156-million, up 11 per cent from the prior year. The bank earned $5.09 per share, up from $4.98 per share in 2012.

Revenues increased nine per cent to $865.3-million.

The full-year results fell short of the $5.26 per share adjusted profits on $868.2-million of revenues forecast by analysts.

Founded in 1846, Laurentian is Canada's seventh-largest bank with $37-billion in assets under administration.

Report an error
Comments

The Globe invites you to share your views. Please stay on topic and be respectful to everyone. For more information on our commenting policies and how our community-based moderation works, please read our Community Guidelines and our Terms and Conditions.

We’ve made some technical updates to our commenting software. If you are experiencing any issues posting comments, simply log out and log back in.

Discussion loading… ✨

Combined Shape Created with Sketch.

Combined Shape Created with Sketch.

Thank you!

You are now subscribed to the newsletter at

You can unsubscribe from this newsletter or Globe promotions at any time by clicking the link at the bottom of the newsletter, or by emailing us at privacy@globeandmail.com.