Laurentian Bank of Canada reported a more-than-200% increase in fourth quarter earnings and announced a three-year plan to \u201creposition\u201d the Montreal-based bank.

The bank said earnings in the final three months of fiscal 2003, ended Oct. 31, jumped to $50.7 million from $15.9 million a year earlier, a jump of 218%. Earnings per common share (diluted) were $2.01 vs 52\u00a2. Total revenues for the quarter were $200.8 million, up from $143.8 million in 2002.

But the bank said that excluding the gain on the sale of 57 branches in Ontario and Western Canada, announced in August, and restructuring charges incurred during the quarter, net income would have been $6.6 million or 13\u00a2 per share.

For the full year, net income was $91.9 million ($3.32 per share) vs $44.3 million ($1.26) in 2002. Excluding special items, net income would have been $56.2 million ($1.80) vs $86.7 million ($3.09).

Raymond McManus, Laurentian president and chief executive, said 2003 has been a \u201cyear of transition\u201d for the bank. \u201cA weak economic environment coupled with increasingly intense competition, particularly in the mortgage market, has hampered results in 2003,\u201d he said in a statement.

McManus said the first step in the repositioning was the sale of branches in Ontario and Western Canada to TD Bank Financial Group. The move, he said, will allow the bank to focus on strengthening market share in Quebec.

\u201cWe have also reinforced our organization internally with a flatter organizational structure, which we believe will provide more flexibility and will improve our efficiency.\u201d

He said the sale has given the bank a stronger balance sheet heading into 2004 and a lower risk profile with the highest Tier 1 and total capital ratios in its history. \u201cSuch strong capital ratios will enhance our flexibility with a view to future business expansion and acquisition opportunities.\u201d

McManus said the three-year plan involves a “retailer approach” to client servicing. Twenty new branches will be opened in Quebec by 2006 and the number of automated banking machines increased by 10 per cent in the first year of the plan. Laurentian hopes to grow its revenues by an average of 6% a year.

To gauge customer satisfaction, the bank will conduct client surveys four times a year and develop new marketing programs to bring in new business. \u201cWe want to treat our customers like guests, by emphasizing a more consumer-oriented retailing approach.\u201d
McManus said there is strong market potential for increasing the level of cross-selling to customers. \u201cWe intend to increase the average number of products held by a customer, notably by repositioning some of our products such as our VISA Gold card.\u201d

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