(March 6 – 16:15 ET) – Laurentian Bank reported net income of $14.9 million for the quarter ended January 31, 2000 compared to $17.5 million for the same period in 1999. Net income per share was $0.57 in 2000 compared to $0.70 in 1999. Return on common shareholders’ equity was 10.0% in 2000, compared to 12.9% in 1999.

Compared to the fourth quarter of 1999, net income increased by $1.7 million or 13% from $13.2 million to $14.9 million and net income per share increased 12% from $0.51 to $0.57. The Bank’s results show progressive improvement when compared to more recent quarters, reflecting improved net interest margins and a reduction in operating costs.

Henri-Paul Rousseau, President and Chief Executive Officer says, “Loan growth in commercial and consumer financing continued to be strong; programs to improve growth and efficiency of our retail network began to produce results.”
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“The Sun Life Trust acquisition, which will double the size of loan and deposit portfolios with independent agents, was approved by the Minister of Finance and the transaction was closed on March 1, 2000. The Sun LifeTrust will contribute positively to earnings. Management of the Bank believes that these projects will translate into strong earnings momentum for the rest of the year.”

The evolution of the Bank’s profitability during the first quarter of 2000, when compared to the first quarter of 1999, is largely explained by the following factors:

>The Bank’s net interest margin, which decreased from 2.10% in 1999 to 1.76% in 2000, was affected by competition in retail loan and deposit interest rates, a higher level of mortgage securitization and wholesale deposits and a higher level of liquidities.
>Non-interest income continued to grow, while costs were slightly reduced.

The brokerage, fund management and financial markets sector reached the break-even point during the first quarter of 2000. Market conditions in November and December of 1999 resulted in weak earnings in its Financial Markets activities during the quarter. The Brokerage operations continued its growth with the purchase of Tassé & Associés, a Québec-based brokerage firm, in early February 2000. The acquisition will be accretive to net earnings, says Laurentian.