02:05 PM EDT, 05/31/2024 (MT Newswires) -- Laurentian Bank of Canada ( LRCDF ) on Friday issued a revamped strategic plan with a focus on its commercial banking operations after earlier reporting its swung to a net loss in its fiscal second quarter.

The bank said it expects its commercial banking operations to drive the bank's growth, though it is also looking to expand in the personal banking market as it looks to post double-digit earnings per share growth over the mid-term.

"Our Path Forward , the revamped Strategic Plan we unveiled today, charts the path to a stronger, sustainable, and more profitable Laurentian Bank. Commercial Banking will remain the Bank's growth engine, and we will grow market share in Personal Banking by introducing new, low-cost, value-add products to attract new customers and increase deposits, while simultaneously simplifying our offering," chief executive Eric Provost said in a release.

Laurentian also plans to simplify its capital-markets operations, focusing on fixed income and foreign exchange.

This comes after Laurentian earlier on Friday reported an adjusted profit beat for its second quarter, but swung to a net loss after taking a hit for restructuring and impairment charges. Adjusted profit, which excludes most one-time items, was $40.5 million or $0.90 per adjusted share, down from the $51.7 million and $1.16 last year. The result topped the consensus analyst forecast of $0.87 per share, according to Capital IQ. The net loss was $117.5 million, or $2.71 per diluted share, compared with net income of $49.3 million and $1.11 per share, last year.

Reported results included impairment and restructuring charges of $196.8 million ($155.6 million net), or $3.56 per share, the bank said. These were related to the restructuring of its operations and to the impairment of the personal and commercial banking segment.

Total revenue fell to $252.6 million, from $257.2 million for the prior year quarter. Provisions for credit losses climbed to $17.9 million, from $16.2 million for the prior year period, due to higher provisions on impaired loans from credit migration, partly offset by a release of provisions on performing loans.

Laurentian reported that return on common shareholders' equity was a negative 18.6%, compared with 7.7% last year.

The bank maintained a regular quarterly dividend of $0.47 per share, payable on August 1.

Laurentian shares were last seen down $1.39 to $25.30 on the Toronto Stock Exchange.

Price: 25.30, Change: -1.39, Percent Change: -5.21