Laurentian Bank of Canada Thursday reported lower third quarter earnings on slightly higher revenues.

The Montreal-based bank said net income for the quarter ended July 31 was $28.7 million, or $1.08 a share. That’s down from $30.9 million, or $1.17¢ a share, a year earlier.

Excluding special items, net income improved by $3.4 million, or 14¢ a share, compared with the third quarter of 2008, Laurentian said.

Results for the third quarter of 2008 included certain items — including a gain on sale of Montreal Exchange shares that was partly offset by an increase in the general allowance for loan losses — that distort the comparison with this year’s quarter.

Total revenue rose 3% to $176.7 million from a year earlier, mainly as a result of a $9.4 million increase in net interest income to $112.8 million as loan and deposit volumes climbed.

“Measures taken since the beginning of the year to offset the impact of the financial and economic crisis have clearly contributed to the improvement in earnings, particularly in restoring our net interest margin and top-line growth,” said Réjean Robitaille, president and CEO.

The provision for loan losses decreased to $16 million from $18.5 million in the third quarter of 2008.

On a segment basis, the Retail & SME Quebec business segment’s contribution to net income fell to $9.7 million, compared with $11.6 million for the third quarter of 2008.

The Real Estate & Commercial business segment’s contribution to net income improved $3.4 million, or 44%, to $11.1 million, compared to $7.7 million for the third quarter of 2008.

B2B Trust’s contribution to net income slipped by $0.6 million, to $8.7 million, compared with $9.2 million in the third quarter of 2008.

Laurentian Bank Securities’ contribution to net income improved noticeably to $3.2 million, compared with $1.1 million in the third quarter of 2008.

IE