The Montreal-based lender said its net income fell 10 per cent year-over-year to $55.9 million in the three-month period that ended July 31. Adjusted for special items, Laurentian said it earned $1.24 per share; analysts, on average, were expecting $1.26.
Several analysts highlighted that Laurentian's net interest margin — which measures the difference between how much a bank generates from interest on loans versus how much it pays in interest — shrank to 1.83 per cent in its fiscal third quarter from 1.87 per cent in the second quarter. In general, there's an expectation that chartered banks will be able to expand their NIMs as central banks hike interest rates.
The frosty market reception is indicative of an investor base that still hasn't fully bought in to Llewellyn's turnaround strategy.
Kinda late headline, no?