Laurentian Bank of Canada is reporting a 21% increase in profit for the second quarter ended April 30. Canada’s seventh largest bank attributed the rise to lower loan losses and a strong performance from its retail banking unit.

The bank said net income was $13.3 million, or 42 ¢a share, for quarter, up from $11 million, or 32¢ a share, a year ago.

Loan loss provisions fell to c$10.5 million from $16 million as the year-before amount had been boosted by a $5 million provision taken to guard against its exposure to insolvent Air Canada.

Retail banking income rose 36% to c$7.6 million, while wealth management and brokerage earnings more than tripled to $1 million.

Revenue was $123.4 million, while return on equity was 5.9%, compared with 4.9 % a year ago.

“After the first six months of 2004, we are on target compared to our objectives,” Raymond McManus, CEO of Laurentian, said in a news release release.

Last year, the bank sold 57 of its Ontario and Western Canada-based branches to Toronto-Dominion Bank as it refocused its efforts on its Quebec operations.

During the quarter, the bank said it would take its B2B Trust (unit private for about $51.6 million. The bank currently owns 77%of B2B and said on it expects to close the deal on June 8.

Laurentian also announced the retirement of a member of its management Committee, André Dubuc, senior executive vice president and treasurer — treasury, capital markets, wealth management and brokerage.

As of July 1, Bernard Piché will take over all the duties of Dubuc, including his activities as chairman of the board of directors of Laurentian Bank Securities and as member of the board of BLC-Edmond de Rothschild Asset Management Inc. As a result of this appointment, Piché will resign his position as president and Chief Executive Officer of B2B Trust.

Raymond McManus, president and CEO of the Laurentian Bank, will continue to hold the position of executive chairman of B2B Trust and will be acting as CEO of B2B Trust.

François Desjardins has been appointed president and C)) of B2B Trust.