MONTREAL — Laurentian Bank of Canada’s net income was virtually flat in the third quarter compared with last year at $54.9 million, as the company recorded acquisition-related costs and other expense increases that offset five per cent higher revenue.
The Montreal-based company’s net income per share amounted to $1.23 per share, which was down from $1.48 per share or $54.8 million in last year’s third quarter, when there was less outstanding Laurentian stock.
Adjusted earnings totalled $59.4 million, or $1.34 per share for the three months ended July 31 — down from $59.9 million or $1.63 per share in last year’s third quarter.
Analysts had estimated $1.43 per share of net income and $1.45 per share of adjusted earnings, according to Thomson Reuters Eikon.
The bank’s total revenue increased by $12.7 million to $260.7 million, driven by growth from its commercial loan portfolio following its acquisition of Northpoint Commercial Finance, completed in August 2017, in return for cash and stock.
Laurentian Bank also says it has resolved previously identified issues with its mortgage loan portfolio to the satisfaction of Canada Mortgage and Housing Corp. and a third-party purchaser.
The bank says its customers haven’t been affected by Laurentian’s sale of mortgages that were inadvertently deemed portfolio insured while they did not meet CMHC criteria for portfolio insurance.
Laurentian had said in June it would repurchase between $125 million on $150 million of mortgages to resolve the issue and it said Tuesday that its review of the matter had been completed within the guidance issued last quarter.
Companies in this story: (TSX:LB)
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