Laurentian Bank of Canada reported net income of $20.7 million, or $0.75 diluted per common share, for the second quarter ended April 30, compared to $24.6 million, or $0.91 diluted per common share, for the same period in 2006.
Return on common shareholders’ equity was 9.7% for the quarter, compared to 12.5% for the same period in 2006. Results for the second quarter of 2007 included favorable tax adjustments of $1.6 million ($0.07 diluted per common share), while 2006 results included a net favourable tax adjustment of $10.7 million resulting from various tax-related issues ($0.45 diluted per common share). Excluding these tax adjustments, net income improved by more than $5.0 million or 37% and diluted net income per common share rose by $0.22 or 48%.
Total revenue stood at $145.7 million in the quarter, compared to $131.0 million in the same quarter the previous year. The increase results from growth in net interest income of $9.8 million and growth in other income of $4.9 million.
Meanwhile, for the six-month period ended April 30, net income totaled $41.2 million or $1.49 diluted per common share, compared to net income of $41.6 million or $1.51 diluted per common share in 2006, including the effect of the favorable tax adjustments. Return on common shareholders’ equity was 9.6% for the six-month period compared to 10.1% for the same period in 2006.
“We had good second quarter results and the bank continued to steadily increase its revenues and profitability,” said Réjean Robitaille, president and CEO commenting on the results. “Growth in loan and deposit volumes, combined with the focus on our three priorities, namely: the improvement of our efficiency, profitability and the development of our human capital, enabled us to continue our progression. This performance reflects both our sound strategy of developing the bank’s activities in markets and segments where we can compete advantageously and the strong commitment of our people.”