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Laurentian Banks Q1 net income down 32 per cent to miss estimates

MONTREAL — Laurentian Bank announced job cuts as it reported first-quarter net income of $40.3 million, down 32 per cent from the same period a year earlier.The Montreal-based lender’s net income for the quarter ended Jan. 31 amounted to 88 cents in diluted earnings per share, down from $1.41 one year ago.On an adjusted basis, Laurentian reported net income of $44.7 million or diluted earnings per share of 98 cents, down from $63.2 million or $1.49 per share a year ago.Analysts on average expected adjusted diluted earnings of $1.29 per share.Laurentian chief executive Francois Desjardins says the lender’s performance during the quarter was hurt by lower capital market revenue. Market volatility at the end of 2018 has weighed on the quarterly earnings of several Canadian banks.The bank also says it took measures to improve efficiency during the quarter that will lead to a reduction of its head count by approximately 10 per cent or 350 employees over the next 12 months.“Laurentian Bank Financial Group has never been in a better financial position, in terms of its solid capital and liquidity levels; it continues to have an industry low loan loss provision — a testament to the quality of our underwriting and credit risk management,” Desjardins said in a statement. “And even if there is more work to do, it has never been stronger in terms of its processes and technology.”The Canadian Press

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