Laurentian Bank (TSX:LB) anticipates margins on its core retail financial services will remain under pressure for the foreseeable future, but expects revenue growth will continue, executives said Thursday.

Laurentian chief financial officer Michel Lauzon said overall net interest income has risen by an average annual rate of 10% over the past four years and by 17% over the past year.

“As would be expected during an economic and financial crisis, impaired loans increased,” Lauzon said told an investor conference “However, this increase was from a very low level to a higher yet manageable level.”

“Our prudent approach to risk management and disciplined underwriting standards prevented our bank from being impacted by the sharp deterioration in credit quality that affected most North American financial institutions.”

Laurentian said it made fewer bad loans to its retail customers last year while the quality of commercial lending stabilized.

“Furthermore, in the fourth quarter of 2010, impaired loans actually declined,” Lauzon said.

“Future growth and net interest income should be driven by continued organic growth in loans and deposits, despite retail margins being under pressure for the foreseeable future.”

Laurentian’s shares closed Thursday at $50.39, up 29 cents, on the Toronto Stock Exchange.

IE