UPDATE 1-Laurentian Bank profit falls as costs, provisions rise

Fri Aug 30, 2013 12:19pm EDT
 
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* Costs from acquisitions eat into profits

* Results fall just short of expectations

* Shares down 0.9 percent (Adds details on profit fall, share price move, analyst's comment)

By Cameron French

TORONTO, Aug 30 (Reuters) - Laurentian Bank of Canada , the country's seventh-largest bank by assets, reported a 6 percent fall in quarterly profit on Friday as higher operating and integration costs stemming from recent acquisitions offset higher revenue.

Shares of Montreal-based Laurentian, which operates almost exclusively in the province of Quebec, were down 0.9 percent after the results were released.

Net profit for Laurentian's fiscal third quarter, ended July 31, fell to C$28.3 million ($26.9 million), or 91 Canadian cents a share, from C$30.0 million, or C$1.06 a share, a year earlier.

Excluding transaction and integration costs, Laurentian earned C$1.31 a share, falling just short of the profit of C$1.33 a share expected by analysts, according to Thomson Reuters I/B/E/S.

National Bank Financial analyst Shubha Khan said in a note the profit miss was largely due to higher than expected non-interest expenses, which jumped 17 percent to C$175 million.   Continued...