Laurentian Bank of Canada reported a 31% rise in quarterly profit on Wednesday.

The Montreal-based bank said net income was $25 million, or 91¢ a share, for the three months ended January 31. That compared with net income of $19.1 million, or 68¢ a share, in the same period a year ago.

Revenue rose 3.6% to $156.5 million.

The bank said its return on common shareholders’ equity was 10% during the quarter, up from 8.1% a year earlier.

Results for the first quarter of 2008 included an unfavorable tax adjustment of $5.6 million, or 23¢ a share, the bank said.

Excluding this tax adjustment, net income would have stood at $24.7 million, or 91¢ a common share, and return on common shareholders’ equity would have been 10.9%.

The provision for credit losses amounted to $12.0 million in the first quarter, compared with $9.5 million a year ago, and $10.5 million in the fourth quarter of 2008.

“Despite market conditions, we had another good quarter with solid loan and deposit growth. However, results also reflected concerns related to the slowing economy and, as anticipated, margin compression and higher loan losses. We have been closely monitoring the situation and are taking appropriate measures,” said Réjean Robitaille, president and CEO.

IE