Photo: Jacques Nadeau Archives The Duty
The Laurentian Bank has taken a decision which had not been seen for almost three decades in the financial sector: cuts its dividend.
In addition to see its profits dip in the second quarter, where its provisions for credit losses jumped due to the pandemic of COVID-19, the Laurentian Bank has taken a decision which had not been seen for almost three decades in the financial sector — to cut its dividend.
The reduction in the quarterly dividend per share is of the order of 40 %, which will increase from 67 to 40 ¢, a decision based on ” prudence “, in order to have more “operational flexibility” in the context of a situation ” unprecedented “, stated on several occasions by the president and chief executive officer of the Laurentian, François Desjardins, during a conference call with analysts. “We are seeing signs of stabilization and we are working on the growth. By generating growth, profits will return. But I can’t really predict the next six months. “
It is the fall of the net income of the Laurentian in the second quarter.
Laurentian university has eliminated 200 other jobs, including 100 positions in may, and expects its network of 83 branches will grow to be about 20 less by the end of the year. In 2016, then she was going ahead with its transformation relating to the end of counter services for the benefit of the consulting services, the Bank had approximately 150 branches.
For the three-month period ended April 30, Laurentian saw its net profit plunge 79 %, to $ 8.9 million, or 13 cents per share. Provisions for losses on receivables were $ 54.9 million, compared to 9.2 million a year ago. Date 30 April, the amount of deferred payment for personal loans, residential mortgages and commercial amounted to $ 109 million. Excluding non-recurring items, the Laurentian has posted an adjusted profit of $ 11.9 million, or 20 cents per share, down 76 % compared to the second quarter last year.
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