Laurentian Bank releases fiscal Q3 results

Strong fundamentals made up for the bank’s weaker residential mortgage and personal loan businesses

Laurentian Bank releases fiscal Q3 results

Laurentian Bank Financial Group reported strong annual income growth during the fiscal third quarter, despite a decline in residential mortgages and personal loans over the nine months ending July 31.

The bank posted net income of $62.1 million and diluted earnings per share of $1.32 for Q3, significantly higher than the $36.2 million and $0.77 seen during the same period last year. Return on common shareholders’ equity was 9.4%, up from 5.8% during the third quarter of 2020.

Adjusted net income stood at $59 million and diluted earnings per share were $1.25 for the third quarter, up from $47.1 million and $1.02 last year. Adjusted return on common shareholders' equity was 8.9% for Q3, versus 7.7% the year prior.

In the nine-month period ending July 31, reported net income was $159.9 million compared to $77.3 million during the same time last year. On an adjusted basis, net income year-to-date was $163.3 million, up from $95.9 million in 2020.

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Laurentian’s residential mortgage loans amounted $15.7 billion as of July 31, shrinking by 4% since Oct. 31, 2020.

“The acquisition of mortgage loans from third parties, as part of the bank’s program to optimize the usage of the National Housing Act mortgage-backed securities allocations, has contributed to mitigating the impact of repayments,” Laurentian said.

The bank’s personal loans totalled $3.8 billion as of July 31, down by 8% since Oct. 31, 2020, largely due to a steady decline in Laurentian’s investment loan portfolio.

“Going forward, we remain focused on enhancing the customer experience while continuing to identify structural cost opportunities. Overall, I am pleased with our progress, and I am excited about the journey ahead as we fully realize the results of our actions.” said Rania Llewellyn, president and chief executive officer of Laurentian Bank.