(December 4 – 17:25 ET) – Laurentian Bank reported net income of $81.7 million for the year ended October 31, compared to $55.7 million in 1999. Net income per share was $3.36 in 2000 ($3.46 before goodwill) compared to $2.10 in 1999 ($2.20 before goodwill). Return on common shareholders’ equity was 14.4% for the year, compared to 9.6% in 1999.

For the quarter ended October 31, net income was $30.1 million compared to $13.2 million in the same period in 1999. Net income per share was $1.31 ($1.35 before goodwill) compared to 51¢ in 1999 (53¢ before goodwill). Return on common shareholders’ equity was 21.7% for the quarter, compared to 9.0% in 1999. The bank says its recognized previously unrecorded tax benefits during the quarter.

Commenting on the fourth quarter and annual results, Henri-Paul Rousseau, president and CEO said: “The bank is pleased with these record earnings; this achievement is due to continued growth and improved efficiency in our principal business lines and the high level of retention of the Sun Life Trust Company business acquired in March 2000.”

Total revenue grew 10.7% to $490.7 million in 2000 from $443.3 million in 1999 due to internal growth, the acquisitions of Sun Life Trust Company and Tassé & Associés, and an improvement in net interest margins.

The Bank’s net interest income increased 21% from $230.5 million to $278.9 million as a result of a 12.6% growth in average loan volumes and an improvement from 1.79% to 1.95% in interest margins due to continued improvement in the loan and deposit mix, better margins on our variable rate portfolios and a reduced level of liquidities.

Non-interest expenses increased by 2.6% from $342.1 million to $350.9 million, including the impact of the Sun Life Trust Company and Tassé & Associés acquisitions that were fully integrated by the end of the third quarter of 2000.

The efficiency ratio showed a strong improvement from 77.6% in 1999 to 71.9% in 2000.

Assets under administration stood at $13 billion at October 31, compared to $11.1 billion in 1999, for an increase of $1.9 billion. The year over year increase is due to increases in mortgage loans under management resulting from securitization activities and self-directed retirement plans.

The brokerage and financial markets sector reported a decrease in net income to $2.3 million in 2000 from $4.4 million in 1999 caused by financial market conditions and a reduced volume of brokerage activities in the second half of the year.
-IE Staff