06:29 AM EDT, 05/30/2025 (MT Newswires) -- Laurentian Bank of Canada ( LRCDF ) on Friday reported a second-quarter adjusted earnings beat, even as revenues eased, as it cited "positive momentum in our specialized businesses" and a lower provision for credit losses.

For the second quarter, adjusted net income fell to $34 million, or $0.73 per diluted share, compared with $40.5 million, or $0.90 in the same quarter of 2024. The result beat a FactSet forecast of $0.70.

Laurentian reported net income of $32.3 million and diluted earnings per share of $0.69, compared with a net loss of $117.5 million and a diluted loss per share of $2.71 for the second quarter of 2024.

National Bank in a preview note published earlier in May forecast EPS from Laurentian of $0.67 versus a consensus then of $0.75, and said it didn't expect a dividend increase. National Bank cited as key themes to focus on: LB's "commercial loan dynamic could hurt NIM performance"; whether its internal investments "yield negative operating leverage"; and its "credit performance'.

Among other highlights from Laurentian, total revenue decreased to $242.5 million compared with $252.6 million for the second quarter of 2024. Net interest income increased 1% to $182.2 million from $179.6 million in the second quarter of 2024. Laurentian cited the positive impact of "favorable" changes in its business mix, which was partly offset by lower interest income from the reduction in average earning assets. The net interest margin was 1.85% for the second quarter of 2025, an increase of 5 basis points compared with the second quarter of 2024, mainly for the same reasons. Other income decreased by $12.6 million to $60.3 million for the second quarter of 2025, compared with $73.0 million for the second quarter of 2024.

The provision for credit losses was $16.7 million for the second quarter of 2025, compared with $17.9 million for the second quarter of 2024, a decrease of $1 .2 million mainly as a result of lower provisions on impaired loans, partly offset by higher provisions on performing loans.

Return on common shareholders' equity was 4.9% for the second quarter of 2025, compared with a negative 18.6% for the second quarter of 2024. Adjusted return on common shareholders' equity was 5.2% for the second quarter of 2025, compared with 6.1% a year ago.

Laurentian's board declared a regular quarterly dividend of $0.47 per share on the common shares, payable on August 1, 2025, to the holders of record at the close of business on July 1, 2025. This was an unchanged amount from the prior quarter.

"We are seeing positive momentum in our specialized businesses, said President and Chief Executive Eric Provost. "While there is still more to accomplish, we are satisfied with the progress we have made thus far. Looking ahead, we will continue to expand our presence and sharpen our focus in specialized areas, which will support both customer success and shareholder returns."

On Thursday, Laurentian closed up $0.33, or 1.2%, at $28.83.