At a time when the Laurentian Bank revealed higher expenses than anticipated by analysts, its boss recognized that the Montreal financial institution could have to make other layoffs.
President and CEO Éric Provost said that Laurentian would probably have to record other financial charges in its results in the coming quarters as part of the recovery of its activities, during a conference call on Thursday. with analysts to discuss quarterly results.
“We have already started with a 2% reduction in our workforce,” he recalls. We analyze how to simplify the organization. I would say yes, it will be necessary to include other restructuring charges. »
“The extent of this must still be determined when we come back with our strategic plan,” he adds.
In December, the regional bank announced it had laid off 55 employees, representing 2% of its workforce. Laurentian is not alone. In recent months, announcements of layoffs have multiplied in the Canadian banking sector in a context of economic slowdown.
We will have to wait until next spring to know the details of the new strategic plan. Arriving at the head of the institution in the wake of the outage which lasted several days, Mr. Provost set himself the objective of investing in technologies, simplifying its activities and prioritizing customer satisfaction. customers scalded by the breakdown.
Results below expectations
Laurentian Bank revealed results below expectations while its expenses were higher than analysts had predicted.
RBC Capital Markets analyst Darko Mihelic takes a slightly negative view of the results. “It should be expected that the bank is currently spending to adjust its activities. So, lower than expected results due to higher spending is not a cause for concern, in our view. »
In the first quarter ended January 31, the Montreal bank revealed net profit of $37.3 million, compared to $51.9 million. Adjusted diluted earnings per share were 91 cents. Revenues, for their part, increased from $260.1 million to $258.3 million.
Before the results were released, analysts expected earnings per share of 95 cents and revenue of $252.4 million, according to Refinitiv.
Despite the lower-than-expected profit, Scotiabank analyst Meny Grauman points out that revenues are higher than expected. “We remain on the sidelines while waiting for the new strategic plan, but the results still include some positive elements. »
Laurentian Bank lost 30 cents, or 1.12%, to $26.54 on the Toronto Stock Exchange around noon.