Laurentian Bank is reporting a drop in profit for the first quarter ended January 31.

The bank said profit was $13.6 million, or 43¢ a share, down from $19.9 million, or 70¢ a share, a year ago.

The year-earlier profit included an $8.5 million, or 29¢ a share, gain on the sale of Laurentian’s TSX Group shares.

The bank said its first-quarter results also include a $1.7 million, or 6¢ a share, gain linked to tax adjustments.

Revenues fell 18% to $120.5 million from $147.6 million, due to revenues lost after the bank sold its branches in Ontario and western Canada.

Return on equity was 6%, compared with 10.3% in the same period last year.

Loan loss provisions fell to $9.8 million from $11 million the year before.

“Results are on target,” Raymond McManus, president and CEO, said in a news release.

“Growth in loan portfolios is lower than anticipated as we will not increase volume at the sacrifice of pricing. However, expense reductions, including the impact of the cost-reduction initiatives initiated in 2003, were better than anticipated.”