A moribund market for mutual funds, particularly in early 2003, put the squeeze on B2B Trust’s fourth quarter and yearly profit.

For the year ended October 31, 2003, B2B Trust, a subsidiary of Laurentian Bank of Canada, reported net income of $14.6 million or $0.59 per common share, compared with $20.7 million or $0.83 per common share a year ago. The company posted net fourth quarter income of $3.3 million or $0.14 per common share, compared to $4.5 million or $0.18 per common share for the same period in 2002.

B2B Trust’s revenue are closely linked to the sales performance of mutual fund manufacturers and distributors, says Bernard Piché, president and CEO. But he noted that investors adopted “a cautious approach [in early 2003] as exemplified by the slow pace in mutual fund sales and the continued redemptions in equity mutual funds.”

As a result, the company will work to become “less dependent on our mutual fund
lending business for asset growth for the coming years,” said Piché.

“B2B Trust will strive to achieve its growth through an enlarged investment loan offering in terms of products design, delivery channels and markets reached, as well as a growing
consumer loans business both through our traditional channels and through large scale retailers,” he said.