Laurentian Bank of Canada is reporting lower reported lower profit for the fourth quarter ended October 31. The bank said its quarterly results were affected by an increase in the provision for loan losses and losses on securities investments.

Net income was $15.9 million, or 52¢a share, down from $23.5 million, or 87¢, in the year-earlier period.

The bank said loan-loss provisions rose to $11 million from $9.5 million a year ago, while return on equity was 7.8%, down from 12.9% in the prior-year period.

For the year ended October 31, the net income was $44.3 million or $1.26 diluted per common share compared to $90.7 million or $3.37 per common share in 2001. Return on common shareholders’ equity decreased to 4.8% in 2002 from 13.1% in 2001.

Without the additional $70 million provision for loan losses related to the Bank’s exposure to Teleglobe and other commercial loans recorded during the second quarter of 2002, the 2002 net income would have been $86.8 million or $3.09 diluted per common share.

Total revenue was $600.4 million in 2002 compared to $607.5 million, excluding the $10.9 million reinsurance gain and the $12.4 million dilution gain in 2001.

Provision for credit losses was $111 million in 2002 or 0.60% of average assets versus $35 million or 0.20% of average assets in 2001. The increase is principally related to the additional $70 million provision for loan losses recorded during the second quarter of 2002 associated with the Bank’s exposure to Teleglobe and other commercial loans.

Assets under administration stood at $12.4 billion at October 31, 2002 compared to $13.1 billion at year-end 2001. The year over year decrease in self-directed retirement plans, mortgage loans under management and client brokerage assets was partially offset by the increase in trust assets.