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Laurentian's profit rises in first quarter to $35.5M, loan losses increase

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MONTREAL - Laurentian Bank of Canada reported $35.5 million of net income in its fiscal first quarter, up eight per cent from a year earlier.

The Montreal-based bank's profit amounted to $1.16 per share, up from $1.07 per share or $32.8 million in 2013, before adjustments.

Excluding some items, Laurentian's adjusted earnings for the quarter ended Jan. 31 were $39.3 million or $1.29 per share. That compared with $39.1 million or $1.30 per share last year.

Total revenue was up one per cent, rising to $216.1 million compared with $213.9 million in the first quarter of fiscal 2013.

But the bank's provision for loan losses increased by $2.5 million to $10.5 million in the first quarter, up from $8 million in the first quarter of 2013.

"The increase in the first quarter of 2014 reflects a return to more normalized overall loan losses from the 2013 low levels," the bank said in a news release.

Laurentian, Canada's eighth-largest bank by market capitalization, has its base in Quebec and a presence in Ontario, Alberta and British Columbia. It has about 3,800 employees.

Shares in Laurentian Bank were down 23 cents to $46.27 at noon.

Desjardins analyst Michael Goldberg said that Laurentian's results were in line with his expectations, but said the bank's share price was "likely derailed by concerns about credit quality."


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