(March 1 – 12:00 ET) – Laurentian Bank is reporting improved earnings for the first quarter ending January 31.

Net income before goodwill charges rose to $23.6 million or 89¢ a share for the quarter, compared to $15.2 million or 58¢ a share for the same period in 2000.

Return on common shareholders’ equity before goodwill charges was 14% for the quarter, compared to 10.3% in 2000.

Total revenue grew 45% to $160.1 million during the quarter from $110.3 million in 2000 due to the acquisition of several Scotiabank branches in Quebec taking effect in the first quarter of 2001

Net interest income grew 57% to $91.9 million or 2.2% of average assets in 2001, compared to $58.5 million or 1.76% in 2000. Non-interest income increased from $51.8 million in 2000 to $68.2 million in 2001. The increase includes a gain of $10.9 million related to the reinsurance of a block of credit insurance premiums.

Non-interest expenses increased by 25% from $82 million to $102.5 million, including the impact of the Scotiabank branches acquisition. The bank’s efficiency ratio, including goodwill charges, showed a strong improvement from 74.6% in 2000 to 64.8% in 2001.

The provision for credit losses was $8 million in the first quarter of 2001 or 0.19% of average assets versus $5 million or 0.15% in the first quarter of 2000.

Assets under administration stood at $13.1 billion at January 31, compared to $11.6 billion in 2000, for an increase of $1.5 billion. The bank’s Tier 1 and Total capital ratios were 7.4% and 11.1%, respectively, compared to 7.9% and 11.6% a year ago.

At its meeting, the board of directors approved a quarterly dividend on the bank’s common shares of 27¢.
-IE Staff