The announcement followed the Bank of Canada's Sept. 7 outsized rate move
Laurentian Bank of Canada has announced an increase to its prime lending rate, in the wake of the Bank of Canada’s 0.75% overnight rate hike on Sept. 7.
The increase in Laurentian’s prime lending rate, and that of B2B Bank, amounted to 75 basis points. This raised the rate from 4.70% to 5.45%, effective today.
Earlier this month, the bank reported an $11.2 million increase in provisions for bad loans during its fiscal third quarter, amid mounting inflationary pressures.
“The macroeconomic environment continues to be uncertain and volatile, and is being weighed down by high inflation, very rapid interest rate increases and geopolitical tensions,” said CEO Rania Llewellyn.
Read more: Poll: Canadian finances labouring under inflation trends
Laurentian’s net income amounted to $55.9 million during fiscal Q3, representing a decline from $62.1 million during the same period last year. Overall Q3 revenue was at $260 million, up from $254.9 million last year.
“Results were mostly driven by the conversion of our strong unfunded pipeline in the construction portfolio to support the multi-residential segments, as developers continue to catch up to the structural supply shortage in certain markets,” Llewellyn said.
