QUEBEC - Laurentian Bank of Canada has reported a significant drop in its fourth-quarter profits, primarily due to restructuring charges and a costly computer outage. The Quebec-based bank's net income fell to C$30.6 million, or C$0.67 per diluted share, compared with C$55.7 million, or C$1.26 per share, in the same period last year.
The financial results reflect the impact of a C$5.3 million charge from a mainframe outage in September and additional expenses totaling C$15.9 million related to restructuring and strategic reviews.
The bank's quarterly revenue also declined to C$247.4 million from last year’s C$257.1 million. Despite the lower revenue, provisions for credit losses were slightly reduced to C$16.7 million compared to the previous year's fourth quarter figure of C$17.8 million.
Laurentian Bank has seen changes at the top with Eric Provost stepping into the role of CEO succeeding Rania Llewellyn, while Michael Boychuk has been appointed as board chair following Michael Mueller’s resignation in the aftermath of an IT outage.
The bank's adjusted earnings per diluted share were down at C$1 from the adjusted profit of C$1.31 per share reported in the last year's comparable quarter.
Laurentian Bank's recent performance comes amidst broader market fluctuations, with notable movements including a strengthening yen as Japan is anticipated to end its negative interest-rate policy soon.
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