Laurentian Bank of Canada today reported an increase in profit for the first quarter of fiscal 2007.

The bank said net income was $20.6 million, or 74¢ diluted per common share, for the first quarter ended Jan. 31, 2007, compared to net income of $17 million, or 59¢ diluted per common share for the first quarter of 2006.

Total revenue increased by 6% to $141.6 million in 2007, compared to $133.7 million for the same period a year ago, mainly as a result of the improvement in net interest income associated to loan and deposit volume growth.

Non-interest expenses increased by 2% to $104.3 million in 2007, from $102.8 million for the first quarter of 2006, essentially as a result of higher salaries and employee benefits.

The provision for credit losses was stable at $10 million in the first quarter of 2007 compared to the first quarter of 2006.

Return on common shareholders’ equity was 9.4% for the quarter, compared to 7.9% for the same period in 2006.
“The bank had a solid quarter, with all business lines contributing. We benefited again from strong loan and deposit growth. However, there is still a lot to be done. In that regard, we will maintain the focus on our three priorities aimed at improving our profitability and efficiency and developing our human capital to assure the long term success of the bank,” said Réjean Robitaille, president and CEO.

Results for the first quarter of 2007 included the favorable effect of approximately $0.9 million resulting from the adoption of certain amendments to the federal minimum tax on financial institutions. Results for the first quarter of 2006 included the favorable adjustment to future tax assets of $2.4 million, resulting from the increase in Quebec income tax rates. The effective tax rate of the current quarter also benefited from lower taxes on dividends from Canadian securities and credit insurance income.