The bank set aside greater provisions for credit losses during the quarter
Laurentian Bank of Canada reported that its Q1 2023 profit saw a considerable annual decline as it allocated greater provisions for credit losses.
Revenue totalled $260.1 million, up from $257.5 million during the same quarter last year. Provisions for credit losses in Q1 went up from $9.4 million in 2022 to $15.4 million in 2023, stemming from higher provisions on impaired loans.
The bank’s net income during the quarter was at $51.9 million while diluted earnings per share were at $1.09, versus the $55.5 million and $1.17 levels seen during the same period last year.
Adjusted net income was $54.3 million and adjusted diluted earnings per share were $1.15, compared to $59.5 million and $1.26 for Q1 2022.
Experts’ initial estimate for Laurentian’s Q1 profit was $1.12 per share, according to financial markets data firm Refinitiv.
“We had good financial results this quarter driven by growth in commercial banking, while also maintaining healthy capital ratios and liquidity levels,” said Rania Llewellyn, president and CEO of Laurentian Bank.
Llewellyn added that the institution is poised for an expansion this year.
“We delivered on a key milestone in the first quarter of 2023 with the launch of the bank’s reimagined VISA experience, which will allow us to grow our brand and attract new customers across Canada,” Llewellyn said. “This is an important step in the execution of our strategic plan and I remain confident in our team’s ability to continue to deliver on our strategic priorities.”
