Laurentian Bank Financial Group reports Q2 profit down, cuts quarterly dividend

Laurentian Bank Financial Group reports Q2 profit down, cuts quarterly dividend

Laurentian Bank Financial Group reports Q2 profit down, cuts quarterly dividend

MONTREAL — Laurentian Bank Financial Group reported its second-quarter profit fell nearly 80 per cent from a year ago and it cut its dividend in a move to give it more flexibility during the COVID-19 pandemic.

The bank says it will now pay a quarterly dividend of 40 cents per share, down from 67 cents per share.

Laurentian chief executive Francois Desjardins says the bank has a strong capital and liquidity position and disciplined risk management, but it is a time for prudence.

The dividend cut came as Laurentian reported a profit of $8.9 million or 13 cents per share for the quarter ended April 30, down from $43.3 million or 95 cents per share in the same quarter a year ago.

On an adjusted basis, Laurentian says it earned 20 cents per share for the quarter, down from an adjusted profit of $1.08 per share in the same quarter last year.

Analysts on average had expected a profit of 38 cents per share for the quarter, according to financial markets data firm Refinitiv.

Laurentian’s provisions for credit losses amounted to $54.9 million for the quarter compared with $9.2 million for the second quarter of 2019.

This report by The Canadian Press was first published May 29, 2020.

Companies in this story: (TSX:LB)

The Canadian Press

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