Laurentian Bank of Canada raised its dividend 10% as it reported a loss in its fourth quarter due to one-time charges related to a strategic review of the bank’s operations.
The bank said Friday it will now pay a quarterly dividend of 44 cents per share, up from 40 cents.
The increased payment to shareholders came as the bank said it lost $102.9 million or $2.39 per diluted share in the quarter ended Oct. 31 as it recorded $189.4 million in impairment and restructuring charges following the strategic review.
The result compared with a profit of $36.8 million or 79 cents per share in the same quarter last year.
Revenue totalled $250.4 million for the quarter, up from $243.5 million a year ago.
Provisions for credit losses were $24.9 million for quarter compared with $24.2 million for the fourth quarter of 2020, as higher provisions on performing loans were partly offset by lower provisions on impaired loans.
“I am extremely proud of everything we accomplished in resetting and rebuilding the bank in 2021,” Laurentian Bank chief executive Rania Llewellyn said in a statement.
Laurentian took several one-time charges in the quarter due to changes as part of its new strategic plan including a 50% reduction in leased corporate office space in Toronto, Burlington, Ont., and Montreal.
The bank also took a charges related to a decision regarding its core-banking technology system, organizational changes and an impairment charge on the value of its personal banking businesses.
On an adjusted basis, Laurentian says it earned $47.8 million or $1.06 per diluted share in its most recent quarter, up from an adjusted profit of $42.3 million or 91 cents per diluted share in the same quarter last year.
For its full year, Laurentian said it earned $57.1 million or $1.03 per diluted share on $1 billion in revenue. The result compared with a profit of $114.1 million or $2.37 per diluted share on $971 million in revenue a year earlier.
On an adjusted basis, Laurentian says it earned $211.2 million or $4.57 per diluted share for its full year, up from $138.2 million or $2.93 per diluted share a year earlier.