Canada Dividend Investor: LB - <span class="simulate_din_font">Laurentian Bank reports net income of $33.9 million for the second quarter of 2012 and increases dividend by $0.02 per share</span> (CAD 0.47)

Company: Laurentian Bank
Stock Name: LB
Amount: CAD 0.47
Announcement Date: 06/06/2012
Record Date: 05/06/2012

Dividend Detail:

Highlights of the second quarter 2012

Quarterly common share dividend raised by $0.02 or 4% to $0.47 per share

Net income of $33.9 million, return on common shareholders' equity of
12.1%, and diluted earnings per share of $1.22

Continued strong loan growth, up 9% year-over-year

Credit quality remains excellent as evidenced by loan losses down to
$7.5 million

Excluding Transaction and Integration Costs related to the acquisition
of the MRS Companies:

Net income of $36.3 million, up 17% year-over-year;

Return on common shareholders' equity of 13.0%

Diluted earnings per share of $1.31

MONTREAL, June 6, 2012 /CNW Telbec/ - Laurentian Bank of Canada (TSX:
LB) reported net income of $33.9 million, or $1.22 diluted per share,
for the second quarter ended April 30, 2012, compared with
$31.0��million, or $1.17 diluted per share, for the second quarter of
2011. Return on common shareholders' equity was 12.1% for the second
quarter of 2012, compared with 12.7% for the second quarter of 2011.
Excluding Transaction and Integration��Costs¹(T&I Costs), net income was up 17% to $36.3 million or $1.31 diluted per
share for the second quarter of 2012 and return on common shareholders'
equity was 13.0%. For the six-month period ended April 30, 2012, net
income totaled $64.8 million or $2.38 diluted per share, compared with
$67.9 million or $2.58 diluted per share in 2011. Return on common
shareholders' equity was 11.8% for the six-month period ended April 30,
2012, compared with 14.0% for the same period in 2011. Excluding
T&I��Costs, net income was $69.2 million or $2.56 diluted per share for
the six-month period ended April 30, 2012 and return on common
shareholders' equity was��12.7%.

Concurrent with this press release, the Bank issued a separate press
release providing details on B2B Trust's proposed acquisition of AGF
Trust Company and the simultaneous common share private placement it
has secured. Commenting on these transactions, R��jean Robitaille,
President and Chief Executive Officer, mentioned: "We are very pleased
to be acquiring AGF Trust Company, an established supplier of banking
services to the financial advisor community. This significant
transaction evidences our continued investment in our growth engines in
order to further develop the Bank's ��competitive advantage and
positioning, improve its profitability and create long-term shareholder
value. In addition, the $120��million private placement we secured
provides us with the additional financial strength to pursue our
strategies."

Commenting on the Bank's financial results for the second quarter of
2012, Mr. Robitaille mentioned: "I am pleased with our solid
performance for the second quarter considering the ongoing economic
concerns and the challenging banking environment. Again this quarter,
we maintained momentum and generated organic loan and deposit growth in
all our business lines and benefited from excellent credit quality.
Furthermore, the integration of the MRS Companies is proceeding
according to plan as we remain focused on delivering on the expected
synergies and managing expenses very closely."

"I am delighted that we have renewed the collective bargaining agreement
with the Bank's unionized employees" added R��jean Robitaille. "This new
six-year agreement assures a seamless pursuit of the development of the
organization and enables our personnel to continue to enjoy the
benefits of competitive working conditions for years to come. In fact,
the continued development of our human capital is one of the Bank's
three key priorities, and we are firmly committed to the required
efforts in that regard." Mr. Robitaille concluded: "As the competitive
position of our business lines is contributing to a solid balance sheet
and earnings, we are also very pleased to announce an increase in our
quarterly common share dividend by a further $0.02 to $0.47."

----------------------------

¹Transaction and Integration Costs (T&I Costs) specifically refer to
costs incurred by the Bank to finalize the acquisition of the MRS
Companies (which included M.R.S. Inc.; MRS Trust Company; M.R.S.
Securities Services Inc.; and M.R.S. Correspondent Corporation) and
integrate their operations within the B2B Trust business segment. Refer
to the non-GAAP financial measures section.

IFRS Conversion

The Bank implemented IFRS as its financial reporting framework on
November 1, 2011. Transition to IFRS occurred as at November��1,��2010
and required restatement of the Bank's 2011 comparative information
from Canadian GAAP basis to IFRS basis. Additional information on the
impact from the transition is also available in the Bank's 2011 Annual
Report, in the notes to the unaudited condensed interim consolidated
financial statements and in the Supplementary Information reported for
the second quarter of 2012.

Caution Regarding Forward-looking Statements

In this document and in other documents filed with Canadian regulatory
authorities or in other communications, Laurentian Bank of Canada may
from time to time make written or oral forward-looking statements
within the meaning of applicable securities legislation.
Forward-looking statements include, but are not limited to, statements
regarding the Bank's business plan and financial objectives. The
forward-looking statements contained in this document are used to
assist the Bank's security holders and financial analysts in obtaining
a better understanding of the Bank's financial position and the results
of operations as at and for the periods ended on the dates presented
and may not be appropriate for other purposes. Forward-looking
statements typically use the conditional, as well as words such as
prospects, believe, estimate, forecast, project, expect, anticipate,
plan, may, should, could and would, or the negative of these terms,
variations thereof or similar terminology.

By their very nature, forward-looking statements are based on
assumptions and involve inherent risks and uncertainties, both general
and specific in nature. It is therefore possible that the forecasts,
projections and other forward-looking statements will not be achieved
or will prove to be inaccurate. Although the Bank believes that the
expectations reflected in these forward-looking statements are
reasonable, it can give no assurance that these expectations will prove
to have been correct.

Financial objectives for 2012 are based on expected results presented on
an International Financial Reporting Standards (IFRS) basis. The
completion of the IFRS conversion process in October 2012 could lead to
changes to these objectives.

The pro forma impact of Basel III on regulatory capital ratios is based on the Bank's
interpretation of the proposed rules announced by the Basel Committee
on Banking Supervision (BCBS) and related requirements of the Office of
the Superintendent of Financial Institutions Canada (OSFI). The Basel
rules and impact of IFRS conversion could be subject to further change,
which may impact the results of the Bank's analysis.

The Bank cautions readers against placing undue reliance on
forward-looking statements when making decisions, as the actual results
could differ considerably from the opinions, plans, objectives,
expectations, forecasts, estimates and intentions expressed in such
forward-looking statements due to various material factors. Among other
things, these factors include capital market activity, changes in
government monetary, fiscal and economic policies, changes in interest
rates, inflation levels and general economic conditions, legislative
and regulatory developments, competition, credit ratings, scarcity of
human resources and technological environment. The Bank further
cautions that the foregoing list of factors is not exhaustive. For more
information on the risks, uncertainties and assumptions that would
cause the Bank's actual results to differ from current expectations,
please also refer to the Bank's Annual Report under the title
"Integrated Risk Management Framework" and other public filings
available at www.sedar.com.

With respect to the MRS Companies and proposed AGF Trust Company
transactions, such factors also include, but are not limited to: the
anticipated benefits from the transaction such as it being accretive to
earnings and synergies may not be realized in the time frame
anticipated; the ability to promptly and effectively integrate the
businesses; reputational risks and the reaction of B2B Trust's or MRS
Companies' and AGF Trust Company customers to the transaction; and
diversion of management time on acquisition-related issues. In
addition, with respect to the proposed AGF Trust Company transaction,
such factors also include: the possibility that the proposed
transaction does not close when expected or at all because required
regulatory or other approvals and other conditions to closing are not
received or satisfied on a timely basis or at all; the terms of the
proposed transaction may need to be modified to satisfy such approvals
or conditions.

��

The Bank does not undertake to update any forward-looking statements,
whether oral or written, made by itself or on its behalf, except to the
extent required by securities regulations.

Highlights

��

FOR THE THREE MONTHS ENDED

��

FOR THE SIX MONTHS ENDED

��

In thousands of Canadian dollars, except per share ��

and percentage amounts (Unaudited)

APRIL 30

2012

��

��

APRIL 30

2011

��

VARIANCE

��

APRIL 30

2012

��

APRIL 30

2011

��

VARIANCE

��

Profitability

��

Total revenue

198,670

��

183,237

��

392,414

��

370,092

��

Net income

33,863

��

31,016

��

64,825

��

67,936

��

(5)

��

Diluted earnings per share

1.22

��

1.17

��

2.38

��

2.58

��

(8)

��

Return on common shareholders' equity ^[1]

��

12.1

��

12.7

��

11.8

��

14.0

��

Net interest margin ^[1]

��

1.73

��

1.83

��

1.74

��

1.84

��

Efficiency ratio ^[1]

��

74.0

��

72.0

��

73.9

��

70.0

��

Profitability - Excluding Transaction and Integration Costs^[2]

��

Transaction and Integration Costs

3,350

��

6,010

��

Adjusted net income ^[1]

36,302

��

31,016

��

69,221

��

67,936

��

Adjusted diluted earnings per share^[1]

1.31

��

1.17

��

2.56

��

2.58

��

(1)

��

Adjusted return on common shareholders' equity ^[1]

��

13.0

��

12.7

��

12.7

��

14.0

��

Adjusted efficiency ratio ^[1]

��

72.4

��

72.0

��

72.4

��

70.0

��

Per common share

��

Share price

��

High

47.65

��

55.87

��

48.68

��

55.87

��

Low

43.90

��

48.25

��

41.12

��

44.14

��

44.03

��

50.27

��

(12)

��

44.03

��

50.27

��

(12)

��

Price / earnings ratio (trailing four quarters)

��

9.9

��

n.a.

��

Book value ^[1]

��

41.19

��

38.17

��

Market to book value

��

107

��

132

��

Dividends declared

0.45

��

0.39

��

0.90

��

0.78

��

Dividend yield ^[1]

��

4.09

��

3.10

��

4.09

��

3.10

��

Dividend payout ratio ^[1]

��

37.0

��

33.4

��

37.8

��

30.2

��

Financial position

��

Balance sheet assets

��

30,708,474

��

27,895,982

��

Loans and acceptances

��

23,121,470

��

21,158,665

��

Deposits

��

21,060,754

��

19,573,777

��

Basel II regulatory capital ratio ^[3]

��

Tier I

��

10.4

��

11.1

��

Other information

��

Number of full-time equivalent employees

��

4,003

��

3,728

��

Number of branches

��

158

��

157

��

Number of automated banking machines

��

426

��

422

��

[1] Refer to the non-GAAP financial measures section.

[2] Costs related to the acquisition of the MRS Companies.

[3] The ratio for 2011 is presented in accordance with previous Canadian
GAAP as filed with OSFI.

Review of Business Highlights

Laurentian Bank continues to pursue its growth and development, thanks
to four well-positioned business segments. At the end of the second
quarter of 2012, the Bank reached another milestone, with balance sheet
assets exceeding $30 billion. More importantly, the Bank is growing
profitably, with the second quarter of 2012 being the best second
quarter in its history.

The Retail and SME-Qu��bec's focused strategy continues to reap benefits.
Business development efforts resulted in an additional $1.0 billion of
residential mortgage loans over the past year. The effective team of
mobile mortgage bankers, the skilled personnel serving clients in
branches and the strong partnerships that have been developed with
mortgage brokers and real estate agents contributed to this
achievement. Average SME-Qu��bec loans increased by 22% over the past
year to reach $1.1��billion, owing to the group's expertise and targeted
client approach.

The Commercial and Real Estate business segment also fueled growth in
the commercial loan portfolios. Average balances grew by 13% during the
last year, supported by the team's strong reputation and stellar
execution.

The B2B Trust segment continues to develop and evolve. During the
quarter, solid progress was made with respect to the integration of the
MRS Companies. As well, the transformation of B2B Trust to B2B Bank is
well underway, with its introduction scheduled for July. This change
will neither modify the segment's business model nor strategy, but will
help to streamline its processes.

Laurentian Bank Securities, during the quarter, successfully partnered
with Investissement Qu��bec, providing financing for a northern Qu��bec
resource company. LBS was pleased and privileged to participate in the
inaugural investment related to Qu��bec's "Plan Nord". This confirms the
growing importance of LBS in the institutional equity market.

Employees of the Bank who are unionized recently voted in favor of an
agreement in principle for the renewal of their collective agreement.
Effective January 1, 2012, this six-year agreement calls for employees
to receive a 2% salary increase for the next 4 years. For the
subsequent 2 years, the increase would be 2.5% with the possibility of
a further increase of up to 1% based on the Bank's results. This is a
win/win agreement and allows the Bank to pursue its development
strategy.

The Bank's Management Committee has been further strengthened by the
addition of Mr. Gilles Godbout. As Executive Vice President of
Operations and Systems and Chief Information Officer, he will assure
the dynamic and rigorous management of the Bank's infrastructure and
technological investments.

The pursuit of the Bank's business plan is resulting in an institution
with greater depth, strength and diversification. Each of our three
growth engines generate about one-third of the Bank's profitability. As
well, half of its profitability comes from outside of Qu��bec. This is
contributing to diversify Laurentian Bank's long-term growth and
development.

Management's Discussion and Analysis

This Management's Discussion and Analysis (MD&A) is a narrative
explanation, through the eyes of management, of the Bank's financial
condition as at April 30, 2012, and of how it performed during the
three-month and six-month periods then ended. This MD&A, dated June 6,
2012, should be read in conjunction with the unaudited condensed
interim consolidated financial statements for the second quarter of
2012, prepared in accordance with IAS��34��Interim financial reporting, and IFRS��1 First-time adoption of IFRS, as issued by the International Accounting Standards Board. The
comparative figures as at April 30, 2011 and October 31, 2011 and for
the three-month and six-month periods ended April 30, 2011 have been
restated to comply with IFRS. For details on the significant
adjustments to the interim financial statements, refer to Note 5,
"Adoption of IFRS", to the unaudited condensed interim consolidated
financial statements. Supplemental information on risk management,
critical accounting policies and estimates, and off-balance sheet
arrangements is also provided in the Bank's 2011 Annual Report.

Additional information about the Laurentian Bank of Canada, including
the Annual Information Form, is available on the Bank's website www.laurentianbank.ca and on SEDAR at www.sedar.com.

Economic Outlook

Globally, the economic picture remains dominated by growing concerns in
the Euro Zone. In addition to worries about sovereign debt funding in
peripheral countries, strong political opposition to fiscal austerity
is reviving financial stress. Moreover, credit rating agencies
proceeded with a series of credit rating downgrades in the Euro Zone.
This situation is the main factor currently supporting the very low
yield environment in North America as investors become increasingly
risk averse. Furthermore, this massive flight-to-quality movement will
likely persist until relevant solutions are found.

In North America, the sources of economic growth are shifting from the
public to the private sector. This is becoming clearer now in Canada as
well since the federal government and some provinces, Ontario
specifically, are reducing spending. Fortunately, private sector
full-time employment has been strong and payroll income is gaining
traction, bringing some relief to consumers. In fact, inflation in
Canada has slowed recently and will most likely oscillate around the 2%
target. With inflation under control and a modestly growing economy,
the Bank of Canada could start its interest rate normalization process
sooner than previously anticipated, particularly considering the need
to preserve financial stability. Nonetheless, the Bank still expects
the overnight rate to be below 2% by the end of 2013, an accommodating
level, thus enabling a moderate expansion of the Canadian economy to
continue.

2012 Financial Objectives

The following table presents management's financial objectives for 2012
and the Bank's performance to date. Revenue growth was determined with
reference to the restated 2011 IFRS comparative figures. These
financial objectives are based on the same assumptions as noted on page
29 of the Bank's 2011 Annual Report under the title "Key assumptions
supporting the Bank's objectives" and exclude Transaction and
Integration Costs.

2012 FINANCIAL OBJECTIVES ^[1]	��	��	��	��
(Excluding Transaction and Integration Costs)	��	��	FOR THE SIX MONTHS	��
��	2012 OBJECTIVES	��	ENDED APRIL 30, 2012	��
��	��	��	��	��
Revenue growth	> 5 %	��	6	%
Adjusted efficiency ratio	73 % to 70 %	��	72.4	%
Adjusted return on common shareholders' equity	11.0% to 13.5%	��	12.7	%
Adjusted diluted earnings per share	$ 4.80 to $ 5.40	��	$ 2.56	��

��[1] Refer to the non-GAAP financial measures section.

Based on the results for the six months ended April 30, 2012 and current
forecasts, management expects the Bank to meet its objectives as set
out at the beginning of the year. Strong loan growth, the acquisition
of the MRS Companies, good cost control and continued improvements in
credit quality have contributed to the overall good performance.

Analysis of Consolidated Results

��

FOR THE THREE MONTHS ENDED

��

FOR THE SIX MONTHS ENDED

In thousands of Canadian dollars,

except per share amounts (Unaudited)

APRIL 30

2012

��

��

JANUARY 31

2012

��

��

APRIL 30

2011

��

��

APRIL 30

2012

��

��

APRIL 30

2011

��

Net interest income

128,324

��

130,629

��

122,065

��

258,953

��

248,668

Other income

��

70,346

��

63,115

��

61,172

��

133,461

��

121,424

Total revenue

��

198,670

��

193,744

��

183,237

��

392,414

��

370,092

Provision for loan losses

��

7,500

��

10,000

��

11,984

��

17,500

��

23,441

Non-interest expenses

��

147,111

��

143,020

��

131,986

��

290,131

��

259,063

Income before income taxes

��

44,059

��

40,724

��

39,267

��

84,783

��

87,588

Income taxes

��

10,196

��

9,762

��

8,251

��

19,958

��

19,652

Net income

33,863

��

30,962

��

31,016

��

64,825

��

67,936

Preferred share dividends, including applicable taxes

��

3,165

��

3,166

��

3,109

��

6,331

��

6,218

Net income available to common shareholders

30,698

��

27,796

��

27,907

��

58,494

��

61,718

Earnings per share

��

Basic

1.22

��

1.16

��

1.17

��

2.38

��

2.58

��

Diluted

1.22

��

1.16

��

1.17

��

2.38

��

2.58

Impact of Transaction and Integration Costs^[1]

��

FOR THE THREE MONTHS ENDED

��

FOR THE SIX MONTHS ENDED

In thousands of Canadian dollars,

except per share amounts (Unaudited)

APRIL 30

2012

��

^[2]

JANUARY 31

2012

��

��

APRIL 30

2011

��

��

APRIL 30

2012

��

��

APRIL 30

2011

��

Items before income taxes

��

Income before income taxes as reported

44,059

��

40,724

��

39,267

��

84,783

��

87,588

Transaction and Integration Costs :

��

Integration-related costs

��

3,350

��

2,660

��

6,010

��

Adjusted income before income taxes

47,409

��

43,384

��

39,267

��

90,793

��

87,588

��

Items net of income taxes

��

Net income as reported

33,863

��

30,962

��

31,016

��

64,825

��

67,936

Transaction and Integration Costs :

��

Integration-related costs

��

2,439

��

1,957

��

4,396

��

Adjusted net income

36,302

��

32,919

��

31,016

��

69,221

��

67,936

��

Diluted, per common share

��

Diluted earnings per share as reported

1.22

��

1.16

��

1.17

��

2.38

��

2.58

Transaction and Integration Costs :

��

Integration-related costs

��

0.10

��

0.08

��

0.18

��

Adjusted diluted earnings per share

1.31

��

1.24

��

1.17

��

2.56

��

2.58

[1] Refer to the non-GAAP financial measures section.

[2] The impact of Transaction and Integration Costs on a per share basis
does not add due to rounding.

Three months ended April 30, 2012 compared to three months ended April
30, 2011

Net income was $33.9 million, or $1.22 diluted per share, for the second
quarter ended April 30, 2012, compared with $31.0��million, or $1.17
diluted per share, for the second quarter of 2011. Excluding T&I Costs,
for the second quarter ended April 30, 2012, net income was
$36.3��million, or $1.31 diluted per share as presented above.

Total revenue

Total revenue increased $15.4 million or 8% to $198.7��million in the
second quarter of 2012, compared with $183.2��million in the second
quarter of 2011. The contribution from the MRS Companies to total
revenue amounted to $10.7 million for the second quarter of 2012.

Net interest income increased to $128.3 million for the second quarter
of 2012, from $122.1��million in the second quarter of 2011, as strong
loan and deposit growth year-over-year and higher revenues related to
loan prepayments more than offset lower margins. When compared to the
second quarter of 2011, margins decreased by 10 basis points to 1.73%
in the second quarter of 2012, as the net interest margin was impacted
by an increase in lower yielding assets related to securitization
activities and the continued very low interest rate environment and
flatter yield curve.

Other income was $70.3 million in the second quarter of 2012, compared
to $61.2 million in the second quarter of 2011, a $9.2 million or 15%
year-over-year increase. This includes a $7.0 million contribution to
other income from the acquisition of the MRS Companies, largely from
revenues related to registered self-directed plans and higher card
service revenues year-over-year due to higher transactional volume and
fees. In addition, during the second quarter, the Bank completed a sale
of $77.0 million of commercial mortgage loans, which led to the
recognition of a $3.1 million gain in other income. This transaction
dovetails with the Bank's syndication strategy and contributes to the
proactive management of its risk-weighted assets. These increases were
partly offset by lower credit insurance income resulting from a higher
level of claims, as well as by lower income from brokerage operations
due to unfavourable market conditions.

Provision for loan losses

The provision for loan losses amounted to $7.5 million in the second
quarter of 2012, down $4.5 million or 37% from $12.0��million in the
second quarter of 2011, reflecting excellent credit conditions in
Canada and the quality of the Bank's loan portfolios. Losses in the
quarter represented 0.13% of average loans and acceptances, down from
0.24% in the second quarter of 2011. However, the Bank remains cautious
and continues to adhere to prudent loan underwriting standards amidst
the ongoing economic uncertainty.

Non-interest expenses

Non-interest expenses totaled $147.1 million for the second quarter of
2012, compared to $132.0��million for the second quarter of 2011.
Excluding T&I Costs of $3.4 million and the additional operating
expenses related to the MRS Companies of $7.6 million, non-interest
expenses increased moderately by $4.2��million or 3% to $136.2��million
compared to a year ago.

Salaries and employee benefits increased by $6.1 million or 8% to $79.3
million compared to the second quarter of 2011, mainly due to increased
headcount from the acquisition of the MRS Companies and regular salary
increases. In addition, after the quarter end, the Bank announced the
acceptance of an agreement in principle by its unionized employees for
the renewal of their collective bargaining agreement. The new six-year
agreement will be applied retroactively to January 1, 2012 and assures
the seamless pursuit of the Bank's business plan, while enabling
employees to continue to enjoy the benefits of competitive working
conditions.

Premises and technology costs increased by $3.0 million to $38.0 million
compared to the second quarter of 2011. Rental costs increased due to
the acquisition of the MRS Companies and additional square footage of
leased premises to accommodate growth and new IT projects. Continued
investments in the Bank's technology infrastructure and higher
amortization expense related to completed IT development projects also
contributed to the increase.

Other non-interest expenses increased by $2.6 million to $26.5 million
for the second quarter of 2012 from $23.9 million for the second
quarter of 2011, mainly as a result of the acquisition of the MRS
Companies and other professional services.

T&I Costs for the second quarter of 2012 totaled $3.4��million and were
related to IT, legal and communication expenses for the integration of
the MRS Companies. As at the end of the second quarter, the integration
process is progressing according to the planned timeline and budget.

Excluding the T&I��Costs, the efficiency ratio was 72.4% in the second
quarter of 2012, slightly higher compared to the second quarter of
2011. With pressure on net interest income likely to persist in the
near future, as the current low interest rate environment lingers, the
Bank is continuing to diversify its revenues from other income and to
capitalize on organic growth opportunities while focusing on cost
control, generating MRS synergies and improving execution.

Income taxes

For the quarter ended April 30, 2012, the income tax expense was $10.2
million and the effective tax rate was 23.1%. The lower tax rate,
compared to the statutory rate, mainly resulted from the favourable
effect of holding investments in Canadian securities that generate
non-taxable dividend income and the lower taxation level on revenues
from insurance operations. For the quarter ended April 30,��2011, the
income tax expense was $8.3��million and the effective tax rate was
21.0%. Year-over-year, the higher income tax rate for the second
quarter ended April 30, 2012 reflects a lower level of tax-advantaged
income, which was partly offset by the 1.5% reduction in Federal income
tax rates, effective this year.

Six months ended April 30, 2012 compared to six months ended April 30,
2011

Net income was $64.8 million, or $2.38 diluted per share, for the six
months ended April 30, 2012, compared with $68.0��million, or $2.58
diluted per share, in 2011. Excluding T&I Costs, net income was
$69.2��million, or $2.56 diluted per share.

Total revenue

Total revenue increased $22.3 million or 6% to $392.4��million for the
six months ended April 30, 2012, compared with $370.1��million for the
six months ended April 30, 2011. The contribution from the MRS
Companies to total revenue amounted to $19.1 million for the six months
ended April 30, 2012.

Net interest income increased to $259.0 million for the six months ended
April 30, 2012, compared with $248.7��million for the same period in
2011. This increase is mainly explained by strong loan and deposit
volume growth year-over-year of $2.0��billion and $1.5 billion
respectively, which more than offset a decrease in net interest margin
of 10 basis points over the same period. As noted above, the
compression in net interest margin resulted from the increase in
lower-yielding Replacement Assets related to securitization activities
compared to last year, as well as to ongoing pricing pressure.

Other income was $133.5 million for the six months ended April 30, 2012,
compared to $121.4 million for the same period in 2011, a 10%
year-over-year increase. This includes a $12.7 million contribution to
other income from the acquisition of the MRS Companies, largely from
revenues related to registered self-directed plans. As noted above,
during the second quarter of 2012, the Bank also sold commercial
mortgage loans, resulting in the recognition of a $3.1 million gain in
other income. The increase in other income is also explained by higher
fees and commissions on loans and deposits, as well as higher card
service revenues year-over-year. These increases were partly offset by
lower credit insurance income resulting from a higher level of claims,
as well as by lower income from brokerage operations due to
unfavourable market conditions.

Provision for loan losses

The provision for loan losses amounted to $17.5 million for the six
months ended April 30, 2012, a significant decrease of $5.9 million or
25% from $23.4 million from the six months ended April 30, 2011,
reflecting the excellent credit conditions in the Canadian market and
the quality of the Bank's loan portfolios. The decrease relates to
improvements in all loan portfolios, with clear progress in the
commercial loan portfolios.

Non-interest expenses

Non-interest expenses totaled $290.1 million for the six months ended
April 30, 2012, compared to $259.1��million for the six months ended
April 30, 2011. Excluding T&I Costs of $6.0 million and current
operating costs related to MRS Companies of $14.7 million, non-interest
expenses increased by $10.4��million or 4% to $269.5��million.

Salaries and employee benefits increased by $14.5 million or 10% to
$156.3 million compared to the six months ended April��30, 2011, mainly
due to increased headcount from the acquisition of the MRS Companies,
as well as to regular salary increases, higher pension costs and higher
employee benefits costs related to certain group insurance programs.

Premises and technology costs increased by $5.6 million compared to the
six months ended April 30, 2011, resulting from higher rental costs due
to the acquisition of the MRS Companies and increased square footage of
leased premises, higher IT costs related to ongoing business growth and
amortization expense related to completed IT development projects.

Other non-interest expenses increased by $5.0 million to $52.6 million
for the six months ended April 30, 2012, from $47.7��million for the
same period of 2011, mainly as a result of the acquisition of the MRS
Companies.

T&I Costs for the six months ended April 30, 2012 totaled $6.0��million
and were related to IT, legal and communication expenses for the
integration of the MRS Companies.

For the six months ended April 30, 2012, excluding the T&I��Costs, the
efficiency ratio was 72.4%, compared with 70.0% for the six months
ended April��30, 2011. Cost control measures aimed at slowing expense
growth did not fully compensate for the impact of compressing margins.

Income taxes

For the six months ended April 30, 2012, the income tax expense was
$20.0 million and the effective tax rate was 23.5%. The lower tax rate,
compared to the statutory rate, mainly resulted from the favourable
effect of holding investments in Canadian securities that generate
non-taxable dividend income and the lower taxation level on revenues
from insurance operations. For the six months ended April 30,��2011, the
income tax expense was $19.7��million and the effective tax rate was
22.4%. Year-over-year, as noted above, the higher income tax rate for
the six months ended April 30, 2012 reflects the lower level of
revenues from insurance operations, which was partly offset by the 1.5%
reduction in Federal income tax rates, effective this year.

Three months ended April 30, 2012 compared to three months ended January
31, 2012

Net income was $33.9 million or $1.22 diluted per share for the second
quarter of 2012 compared with $31.0 million or $1.16 diluted per share
for the first quarter of 2012. Excluding T&I Costs, net income was
$36.3��million, or $1.31 diluted per share, compared to $32.9 million or
$1.24 diluted per share for the first quarter ended January 31,��2012.

Total revenue increased to $198.7 million in the second quarter of 2012,
from $193.7 million in the previous quarter as the MRS Companies
contributed throughout the second quarter compared to 77 days in the
first quarter. Despite growth in loan volumes, net interest income
decreased by $2.3 million to $128.3 million sequentially. This decrease
is mainly explained by the slightly lower net interest margin of 1.73%
for the second quarter of 2012 compared with 1.75% for the previous
quarter and the two fewer days in the second quarter.

Other income increased by $7.2 million or 11% sequentially, largely due
the $3.1 million gain on sale of a $77.0 million commercial mortgage
loan portfolio during the second quarter, combined with better
performance across all revenue streams.

The provision for loan losses amounted to $7.5 million in the second
quarter of 2012, compared to $10.0 million for the first quarter of
2012, reflecting the excellent quality of the portfolio and favourable
credit conditions.

Non-interest expenses amounted to $147.1 million in the second quarter
of 2012, compared to $143.0 million in the first quarter of 2012.
Excluding T&I Costs of $3.4 million in the second quarter and of $2.7
million in the first quarter of 2012, non-interest expenses increased
by $3.4��million sequentially. This was mainly a result of a full
quarter of salary increases, non-recurring adjustments in variable
compensation in the first quarter and 13 additional days of normal
operating expenses related to the MRS Companies compared to the first
quarter, which were partly offset by two less days in the second
quarter and decreases in other expenses. Excluding T&I Costs, operating
leverage was marginally positive sequentially, mainly due to the growth
in total revenue quarter-over-quarter, combined with continued cost
control initiatives.

Financial Condition

CONDENSED BALANCE SHEET		��	��	��	��	��	��	��	��
�� In thousands of Canadian dollars (Unaudited)		AS AT APRIL 30 2012		�� ��	AS AT OCTOBER 31 2011		�� ��	AS AT APRIL 30 2011
��		��	��	��	��	��	��	��	��
ASSETS		��	��	��	��	��	��	��	��
��	Cash and deposits with other banks	��	$ 696,280	��	$	367,059	��	$	717,795
��	Securities	��	5,294,610	��	��	5,175,866	��	��	4,949,223
��	Securities purchased under reverse repurchase agreements	��	978,063	��	��	720,317	��	��	626,168
��	Loans and acceptances, net	��	22,982,601	��	��	21,944,394	��	��	21,022,460
��	Other assets	��	756,920	��	��	755,574	��	��	580,336
��		$	30,708,474	��	$	28,963,210	��	$	27,895,982
��		��	��	��	��	��	��	��	��
LIABILITIES AND SHAREHOLDERS' EQUITY		��	��	��	��	��	��	��	��
��	Deposits	$	21,060,754	��	$	20,016,281	��	$	19,573,777
��	Other liabilities	��	3,075,005	��	��	2,725,215	��	��	2,875,652
��	Debt related to securitization activities	��	5,051,652	��	��	4,760,847	��	��	4,051,889
��	Subordinated debt	��	243,426	��	��	242,551	��	��	241,683
��	Shareholders' equity	��	1,277,637	��	��	1,218,316	��	��	1,152,981
��		$	30,708,474	��	$	28,963,210	��	$	27,895,982

Balance sheet assets stood at $30.7 billion as at April 30, 2012, up
$1.7 billion from year-end 2011. Over the last twelve months, balance
sheet assets increased by $2.8 billion or 10%.

Liquid assets

Liquid assets, including cash, deposits with other banks, securities and
securities purchased under reverse repurchase agreements, increased by
$0.7 billion from year-end 2011, as the Bank continued to actively
manage its liquidity levels to support the growth in business activity.
Liquid assets as a percentage of total assets increased marginally to
23% from 22% as at October 31, 2011.

Loans

Total loans and bankers' acceptances stood at $23.1 billion as at April
30, 2012, up $1.0 billion or 5% from October��31,��2011 and 9%
year-over-year. While the acquisition of the MRS Companies added $0.3
billion to the loan portfolio, the Bank also generated $0.7 billion in
organic growth since the beginning of the year in the midst of intense
competition. Personal loans increased by $342.2 million or 6% since
October 31, 2011, as higher investment loans acquired through the MRS
Companies transaction, higher home equity lines of credit and personal
loans granted under the Immigrant Investor Program more than offset the
ongoing albeit slower run-offs in point-of-sale financing. Residential
mortgage loans also increased by $410.1 million over the same period,
including $60.9��million related to the acquisition of the MRS
Companies. In addition, commercial mortgage loans grew by $107.0
million or 5% from October 31, 2011 despite a loan sale of $77.0
million during the second quarter, while commercial loans, including
bankers' acceptances, increased by $174.7��million or 8% over the same
period.

Deposits

Total personal deposits increased by $804.5 million or 5% from October
31, 2011 and stood at $16.4 billion as at April��30,��2012 including
$675.2 million resulting from the acquisition of the MRS Companies and
$129.3 million generated from organic growth. Business and other
deposits, which include institutional deposits, were up $240.0 million
since the beginning of the year to $4.6 billion as at April 30, 2012.
The Bank took advantage of favourable market conditions and raised
$200.0��million of three-year senior deposit notes during the second
quarter to maintain prudent liquidity.

While the Bank continues to actively manage its liquidity levels and to
maintain diversified funding sources, it focuses its efforts on retail
deposit gathering through its Retail & SME-Qu��bec and B2B��Trust
business segments; particularly stable sources of financing for the
Bank which represented 78% of total deposits as at April 30, 2012.

Other Liabilities

Debt related to securitization activities increased by $290.8 million
since the beginning of the year and stood at $5.1 billion as at April
30, 2012. Since October 31, 2011, the Bank securitized and legally sold
$354.6 million of residential mortgage loans, $50.8 million in the
first quarter and $303.8 million in the second quarter, which led to an
increase in debt related to securitization activities of $353.0
million. In addition, loans totaling $459.3��million were sold as
Replacement Assets during the same period, $228.6 million in the first
quarter and $230.7 million in the second quarter. For additional
information on the Bank's debt related to securitization activities,
please refer to Note 8 to the unaudited condensed interim financial
statements.

Subordinated debt stood at $243.4 million as at April 30, 2012,
relatively unchanged from October 31, 2011.

Shareholders' equity

Shareholders' equity stood at $1,277.6 million as at April 30, 2012,
compared with $1,218.3 million as at October��31,��2011. This increase
resulted from a common share issue for net proceeds of $60.9 million as
well as net income for the first six months of 2012, net of declared
dividends, which more than offset the decrease in accumulated other
comprehensive income (AOCI). The Bank's book value per common share,
excluding AOCI, appreciated to $41.19 as at April 30, 2012 from $39.40
as at October 31, 2011. There were 25,250,137 common shares and 50,000
share purchase options outstanding as at May 28, 2012. The increase in
the number of common shares from October 31, 2011 resulted from the
issuance of 1,325,100 common shares on February 2, 2012 as detailed
below.

Assets under administration

Assets under administration stood at $33.1 billion as at April 30, 2012,
$21.0 billion higher than as at October 31, 2011, and $20.5 billion
higher than as at April 30, 2011. These increases are mainly
attributable to the growth in assets related to self-directed RRSPs due
to the acquisition of the MRS Companies and mutual funds, which has
started to benefit from the new distribution agreement related to
Mackenzie funds.

Capital Management

The regulatory Tier I capital of the Bank, measured under IFRS, reached
$1,245.3 million as at April 30, 2012, compared with $1,217.2 million
as at October 31, 2011, measured under previous Canadian GAAP. Taking
into account that the Bank has elected to phase-in the IFRS
adjustments, the Tier 1 BIS capital and total BIS capital ratios stood
at 10.4% and 12.9%, respectively, as at April 30, 2012, compared to
11.0% and 13.7%, respectively, as at October��31,��2011 under previous
Canadian GAAP. These ratios remain well above present minimum
requirements. The decrease in these ratios mainly results from the
combined effect of a lower IFRS transition adjustment and higher
risk-weighted assets related to the acquisition of the MRS Companies,
partially offset by a common share issue of $60.9 million during the
second quarter. The tangible common equity ratio of 8.0% continues to
reflect the high quality of the Bank's capital.

On February 2, 2012, the Bank successfully completed a common share
issue for net proceeds of $60.9��million. This is consistent with its
prudent approach to managing capital and objective to maintain capital
ratios above new regulatory requirements as detailed below, especially
considering good organic growth prospects and the recent balance sheet
expansion related to the acquisition of the MRS Companies.

REGULATORY CAPITAL	��	��	��	��	��	��	��	��
�� In thousands of Canadian dollars, except percentage amounts (Unaudited)	AS AT APRIL 30 2012	�� ��	�� ��	AS AT OCTOBER 31 2011	^[2] ��	�� ��	AS AT APRIL 30 2011	^[2] ��
��	��	��	��	��	��	��	��	��
Tier 1 capital (A)	$ 1,245,326	��	��	$ 1,217,225	��	��	$ 1,177,648	��
Tier I BIS capital ratio (A/C)	10.4	%	��	11.0	%	��	11.1	%
Total regulatory capital - BIS (B)	$ 1,543,140	��	��	$ 1,516,840	��	��	$ 1,477,834	��
Total BIS capital ratio (B/C)	12.9	%	��	13.7	%	��	14.0	%
Total risk-weighted assets (C)	$ 11,935,860	��	��	$ 11,071,971	��	��	$ 10,562,773	��
Assets to capital multiple	18.1	x	��	16.2	x	��	16.4	x
Tangible common equity as a % of risk-weighted assets ^[1]	8.0	%	��	9.2	%	��	9.2	%

[1] Refer to the non-GAAP financial measures section.

[2] The amounts are presented in accordance with previous Canadian GAAP
as filed with OSFI.

Impact of the adoption of IFRS on regulatory capital

Effective November 1, 2011, the Bank adopted IFRS, which impacted its
shareholders' equity. The Bank has irrevocably elected to phase-in,
over five quarters, the impact of the adjustment to retained earnings
arising from the first-time adoption of certain IFRS changes, as
allowed by OSFI's transition guidance. As such, for the purposes of
calculating capital ratios, the Bank has amortized, since November��1,
2011, the eligible portion of the impact of IFRS on capital initially
totaling $136.0 million on a straight-line basis over the next five
quarters until January 31, 2013. Therefore, the total impact of the
IFRS conversion on the Bank's capital ratios will only be fully
reflected as of January 31, 2013. Excluding this transitional
provision, the Tier 1 capital ratio and total capital ratio would have
been 9.8% and 12.2%, respectively, as at April��30, 2012.

Upon adoption of IFRS, the Bank's assets increased by the amount of
securitized residential mortgage loans and replacements assets. For
purposes of the Asset to Capital Multiple (ACM) calculation,
securitized mortgages sold through the CMB program on or before March
31, 2010 were excluded as permitted by OSFI. However, securitized
mortgages sold after that date are now included in the ACM calculation
and mainly contributed to the increase in the ACM, which stood at 18.1
as at April 30,��2012.

Proposal for new capital and liquidity regulatory measures

In December 2010, the Basel Committee on Banking Supervision (BCBS)
published new capital guidelines commonly referred to as Basel III.
OSFI indicated that it expects deposit-taking institutions to meet the
Basel III capital requirements early in the Basel III transition period
beginning January 1, 2013, including a 7% Common Equity Tier 1 ratio
target (4.5% minimum plus 2.5% capital conservation buffer).

Considering the Bank's capital position, and based on current
understanding of the Basel III rules, management believes that the Bank
is well positioned to meet upcoming capital requirements as of the
initial date of implementation in January 2013. The pro forma Common Equity Tier 1 ratio, as at April 30, 2012, would be approximately
7.1% when applying the full Basel��III rules applicable in 2019 (i.e.,
without transition arrangements). Further details on these capital
measures, as well as the related new global liquidity standards, are
provided in the Capital Management section of the annual MD&A.

Potential capital implication of the proposed acquisition of AGF Trust
Company

On June 6, 2012, B2B Trust, a subsidiary of the Bank, and AGF Management
Limited announced that they had entered into an agreement under which
B2B Trust will acquire 100% of AGF Trust Company in a share purchase
transaction. After incorporating the estimated capital requirements for
AGF Trust at closing and the expected proceeds from the simultaneous
private placement, the Bank's Basel II Tier 1 Capital Ratio would be,
on a pro forma basis, approximately 10.3% as at April 30, 2012, still
comfortably above existing regulatory guidelines. Furthermore, the
Bank's Basel III Common Equity Tier 1 ratio based on the full Basel III
rules applicable in 2019 (i.e. without transition arrangements), would
be, on a pro forma basis, approximately 7.3% as at April 30, 2012, in
line with expected regulatory requirements.

Dividends

On May 23, 2012, the Board of Directors declared regular dividends on
the various series of preferred shares to shareholders of record on
June 7, 2012. At its meeting on June 6, 2012, given the Bank's solid
balance sheet and earnings as well as its confidence in the Bank's
future, the Board of Directors approved an increase of $0.02 per share,
or 4%, to the quarterly dividend and thus declared a dividend of $0.47
per common share, payable on August 1, 2012, to shareholders of record
on July 3, 2012.

COMMON SHARE DIVIDENDS AND PAYOUT RATIO

��

FOR THE THREE MONTHS ENDED

��

FOR THE SIX

MONTHS ENDED

��

FOR THE YEARS ENDED

��

��

In Canadian dollars, except payout ratios (Unaudited)

APRIL 30

2012

��

��

JANUARY 31

2012

��

��

APRIL 30

2012

��

��

OCTOBER 31

2011

��

��

OCTOBER 31

2010

��

��

OCTOBER 31

2009

��

��

��

Dividends declared per common share

$ 0.45

��

$ 0.45

��

$ 0.90

��

$ 1.62

��

$ 1.44

��

$ 1.36

��

Dividend payout ratio ^[1][2]

37.0

��

38.7

��

37.8

��

34.8

��

31.1

��

32.1

[1] Refer to the non-GAAP financial measures section.

[2] The ratios for 2010 and 2009 are presented in accordance with
previous Canadian GAAP.

Risk Management

The Bank is exposed to various types of risks owing to the nature of its
activities. These risks are mainly related to the use of financial
instruments. In order to manage these risks, controls such as risk
management policies and various risk limits have been implemented.
These measures aim to optimize the risk/return ratio in all operating
segments. For additional information regarding the Bank's Risk
Management Framework, please refer to the 2011 Annual Report.

Credit risk¹

The following sections provide further details on the credit quality of
the Bank's loan portfolios.

PROVISION FOR LOAN LOSSES

��

FOR THE THREE MONTHS ENDED

��

FOR THE SIX MONTHS ENDED

In thousands of Canadian dollars, except percentage amounts

(Unaudited)

APRIL 30

2012

��

��

JANUARY 31

2012

��

��

APRIL 30

2011

��

APRIL 30

2012

��

��

APRIL 30

2011

��

��

��

Provision for loan losses

��

Personal loans

5,856

��

6,189

��

6,029

��

12,045

��

12,784

��

Residential mortgage loans

��

498

��

284

��

706

��

782

��

1,042

��

Commercial mortgage loans

��

2,555

��

888

��

3,661

��

3,443

��

7,440

��

Commercial and other loans (including acceptances)

��

(1,409)

��

2,639

��

1,588

��

1,230

��

2,175

��

Total

7,500

��

10,000

��

11,984

��

17,500

��

23,441

��

As a % of average loans and acceptances

��

0.13

��

0.18

��

0.24

��

0.16

��

0.23

The provision for loan losses decreased to $7.5 million in the second
quarter of 2012, from $10.0 million in the first quarter of 2012 and
$12.0 million a year ago, reflecting the good overall credit quality of
the Bank's loan portfolios and continued favourable credit conditions
in the Canadian market.

The year-over-year decrease in loan losses on personal loans partly
results from a reduced exposure to the point-of-sale financing
business. The provisions on residential mortgage loans were down
marginally in the second quarter of 2012 compared to the second quarter
of 2011, and remained at a very low level as the quality of the credit
metrics used in establishing the collective provisions remained good.

Loan losses on commercial mortgages and commercial loans remained low
during the second quarter and further decreased by a combined $2.4
million, mainly as a result of improvements in the credit conditions of
certain loans and, to a lesser extent, to recoveries. The relatively
low level of loan losses continues to reflect the good credit quality
of this portfolio.

_______________

¹ Mortgage loans on residential real estate development properties and
projects, which were previously reported in residential mortgage loans,
were reclassified to commercial mortgage loans to better reflect the
nature and risk of these loans.

IMPAIRED LOANS

��

��

In thousands of Canadian dollars, except percentage amounts (Unaudited)

AS AT APRIL 30

2012

��

��

AS AT OCTOBER 31

2011

��

��

AS AT APRIL 30

2011

��

��

��

Gross impaired loans

��

Personal

15,926

��

14,395

��

16,256

��

Residential mortgages

��

14,717

��

17,053

��

16,186

��

Commercial mortgages

��

60,394

��

62,541

��

50,428

��

Commercial and other (including acceptances)

��

56,284

��

69,736

��

72,392

��

147,321

��

163,725

��

155,262

��

Individual allowances

��

(67,003)

��

(69,450)

��

(67,461)

��

Collective allowances

��

(71,866)

��

(73,700)

��

(68,744)

��

Net impaired loans

8,452

��

20,575

��

19,057

��

Impaired loans as a % of loans and acceptances

��

Gross

��

0.64

��

0.74

��

0.73

��

Net

��

0.04

��

0.09

��

0.09

Gross impaired loans amounted to $147.3 million as at April 30, 2012,
compared to $163.7 million as at October 31, 2011 as credit quality
continued to improve during the quarter. The decrease since
October��31,��2011 essentially resulted from improvements in the
commercial loan portfolios. Retail portfolios also performed well and
related impaired loans were down $0.8 million from October 31, 2011
despite the Bank's strong loan growth, as borrowers continued to
benefit from the current low interest rate environment and favourable
employment conditions in Canada. Since the beginning of the year,
individual allowances decreased by $2.4��million to $67.0��million. Over
the same period, collective allowances decreased by $5.0��million,
partly offset by a $3.2 million increase related to the acquisition of
the MRS Companies, as improvements in credit quality and market
conditions more than offset the impact of higher loan volumes. Net
impaired loans amounted to $8.5��million as at April 30, 2012, compared
to $20.6��million as at October 31, 2011.

Market risk

Market risk represents the financial losses that the Bank could incur
following unfavourable fluctuations in the value of financial
instruments subsequent to changes in the underlying factors used to
measure them, such as interest rates, exchange rates or equity prices.
This risk is inherent to the Bank's financing, investment, trading and
asset and liability management (ALM) activities.

The purpose of ALM activities is to control structural interest rate
risk, which corresponds to the potential negative impact of interest
rate movements on the Bank's revenues and economic value. Dynamic
management of structural risk is intended to maximize the Bank's
profitability while preserving the economic value of common
shareholders' equity. As at April 30,��2012, the effect on the economic
value of common shareholders' equity and on net interest income before
taxes of a sudden and sustained 1% increase in interest rates across
the yield curve was as follows.

STRUCTURAL INTEREST RATE SENSITIVITY ANALYSIS	��	��	��
In thousands of Canadian dollars (Unaudited)	AS AT APRIL 30 2012	��	AS AT OCTOBER 31 2011
��	��	��	��
Increase in net interest income before taxes over the next 12 months	$ 13,155	��	$ 22,026
Decrease in the economic value of common shareholders' equity (Net of income taxes)	$ (26,604)	��	$ (15,964)

As shown in the table above, the Bank has slightly reduced its ALM
short-term sensitivity compared to October��31,��2011. These results
reflect management's efforts to take advantage in the movement of
short-term and long-term interest rates, all the while maintaining the
sensitivity to these fluctuations within approved limits.

Segmented Information

This section outlines the Bank's operations according to its
organizational structure. Services to individuals, businesses,
financial intermediaries and institutional clients are offered through
the following business segments:

- Retail & SME-Qu��bec

- Real Estate & Commercial

- B2B Trust

��

- Laurentian Bank Securities & Capital Markets

- Other

Retail & SME-Qu��bec

��

FOR THE THREE MONTHS ENDED

��

FOR THE SIX MONTHS ENDED

��

��

In thousands of Canadian dollars, except percentage amounts (Unaudited)

APRIL 30

2012

��

��

JANUARY 31

2012

��

��

APRIL 30

2011

��

��

APRIL 30

2012

��

��

APRIL 30

2011

��

��

��

��

Net interest income

76,096

��

78,725

��

77,881

��

154,821

��

158,329

��

Other income

��

33,422

��

31,803

��

33,215

��

65,225

��

66,557

��

Total revenue

��

109,518

��

110,528

��

111,096

��

220,046

��

224,886

��

Provision for loan losses

��

4,855

��

6,216

��

6,570

��

11,071

��

14,254

��

Non-interest expenses

��

91,268

��

91,260

��

90,162

��

182,528

��

180,121

��

Income before income taxes

��

13,395

��

13,052

��

14,364

��

26,447

��

30,511

��

Income taxes

��

2,737

��

2,631

��

2,846

��

5,368

��

5,959

��

Net income

10,658

��

10,421

��

11,518

��

21,079

��

24,552

��

Efficiency ratio^[1]

��

83.3

��

82.6

��

81.2

��

82.9

��

80.1

��

[1] Refer to the non-GAAP financial measures section.

The Retail & SME-Qu��bec business segment's contribution to net income
was $10.7 million in the second quarter of 2012, compared with $11.5
million in the second quarter of 2011.

Total revenue decreased from $111.1 million in the second quarter of
2011 to $109.5 million in the second quarter of 2012 as higher other
income was more than offset by lower net interest income.
Year-over-year, net interest income decreased by $1.8��million, as
significant growth in loan and deposit volumes, notably in the
residential mortgage loan portfolio, did not fully compensate for the
decline in net interest margin stemming from the ongoing low interest
rate environment. Other income increased marginally from $33.2��million
in the second quarter of 2011 to $33.4��million for the same period in
2012 as significantly higher revenues from card services due to
increased transactional volume and fees was partly offset by lower
credit insurance income owing to a higher level of claims.

Loan losses decreased by $1.7��million, or 22% from $6.6 million in the
second quarter of 2011 to $4.9��million in the second quarter of 2012.
This progress was mainly driven by the continued decrease in the
point-of-sale portfolio stemming from the reduced exposure and marked
improvements in the SME portfolio. Non-interest expenses increased by
$1.1 million or 1% from $90.2��million in the second quarter of 2011 to
$91.3��million in the second quarter of 2012 as lower expenses resulting
from cost control initiatives were more than offset by regular salary
increases and higher rental and operating costs due to increased
business activity.

For the six months ended April 30, 2012, net income decreased $3.5
million to $21.1 million essentially due to the combined effect of
lower interest margins and credit insurance income, which more than
offset strong loan growth and the significant improvement in loan
losses as explained above. Expenses, as a result of cost control
measures were up a marginal $2.4��million or 1.3% over the same period.

Balance sheet highlights

Loans up 8% or $978.1 million over the last 12 months

Increase in deposits of 6% or $522.8 million over the last 12 months, to
$9.7 billion as at April 30, 2012

Real Estate & Commercial

��

FOR THE THREE MONTHS ENDED

��

FOR THE SIX MONTHS ENDED

In thousands of Canadian dollars, except percentage amounts (Unaudited)

APRIL 30

2012

��

JANUARY 31

2012

��

��

APRIL 30

2011

��

APRIL 30

2012

��

��

APRIL 30

2011

��

��

��

Net interest income

22,049

��

22,212

��

22,514

��

44,261

��

45,609

��

Other income

��

10,451

��

8,006

��

7,851

��

18,457

��

15,945

��

Total revenue

��

32,500

��

30,218

��

30,365

��

62,718

��

61,554

��

Provision for loan losses

��

1,755

��

2,851

��

4,860

��

4,606

��

8,237

��

Non-interest expenses

��

7,484

��

7,756

��

7,004

��

15,240

��

14,363

��

Income before income taxes

��

23,261

��

19,611

��

18,501

��

42,872

��

38,954

��

Income taxes

��

6,292

��

5,305

��

5,296

��

11,597

��

11,151

��

Net income

16,969

��

14,306

��

13,205

��

31,275

��

27,803

��

Efficiency ratio^[1]

��

23.0

��

25.7

��

23.1

��

24.3

��

23.3

[1] Refer to the non-GAAP financial measures section.

The Real Estate & Commercial business segment's contribution to net
income increased by $3.8 million or 29% to $17.0��million in the second
quarter of 2012, compared with $13.2 million in the second quarter of
2011.

Total revenue increased by $2.1 million, from $30.4 million in the
second quarter of 2011 to $32.5 million in the second quarter of 2012.
This increase largely results from a $3.1 million gain on the sale of
$77.0 million of commercial mortgage loans recorded in other income, as
the Bank looked to manage proactively its risk-weighted assets. This
increase was partially offset by lower net interest income due to
continued margin compression as the Bank generated strong loan growth
year-over-year. Loan losses further reduced by $3.1��million to
$1.8��million in the second quarter of 2012, compared with $4.9��million
in the second quarter of 2011. This very low level of losses reflects
the overall good credit quality of the loan portfolios, enhanced by the
ongoing favourable economic conditions in Canada. Non-interest expenses
increased marginally to $7.5 million in the second quarter of 2012
compared with $7.0 million in the second quarter of 2011 essentially
due to higher rental and salary costs related to additional headcount
hired to support increased business activity.

For the six months ended April 30, 2012, net income increased by 12% to
$31.3 million as a result of improved loan losses and an increase in
revenue due to the gain on sale of some commercial mortgage loans.
Non-interest expenses increased by $0.9 million compared to the six
months ended April 30, 2011, mainly due to increased salaries and
benefits and rental costs as explained above.

Balance sheet highlights

Loans and BAs up 10% or $299.7 million over the last 12 months

Decrease in deposits of $38.2 million over the last 12 months

B2B Trust

��

FOR THE THREE MONTHS ENDED

��

FOR THE SIX MONTHS ENDED

In thousands of Canadian dollars, except

percentage amounts (Unaudited)

��

APRIL 30

2012

��

��

JANUARY 31

2012

��

��

APRIL 30

2011

��

��

APRIL 30

2012

��

��

APRIL 30

2011

��

��

��

Net interest income

��

30,689

��

30,964

��

28,410

��

61,653

��

57,222

��

Other income

��

9,116

��

8,143

��

2,419

��

17,259

��

4,944

��

Total revenue

��

39,805

��

39,107

��

30,829

��

78,912

��

62,166

��

Provision for loan losses

��

890

��

933

��

554

��

1,823

��

950

��

Non-interest expenses

��

24,483

��

23,422

��

15,666

��

47,905

��

31,568

��

Costs related to an acquisition and other ^[1]

��

3,350

��

2,660

��

6,010

��

Income before income taxes

��

11,082

��

12,092

��

14,609

��

23,174

��

29,648

��

Income taxes

��

2,953

��

3,221

��

4,141

��

6,174

��

8,403

��

Net income

��

8,129

��

8,871

��

10,468

��

17,000

��

21,245

��

Efficiency ratio ^[2]

��

69.9

��

66.7

��

50.8

��

68.3

��

50.8

Adjusted net income ^[2]

��

10,568

��

10,828

��

10,468

��

21,396

��

21,245

��

Adjusted efficiency ratio ^[2]

��

61.5

��

59.9

��

50.8

��

60.7

��

50.8

[1] Costs related to the acquisition of the MRS Companies.

[2] Refer to the non-GAAP financial measures section.

Excluding after-tax T&I Costs related to the acquisition of MRS
Companies of $2.4 million, the B2B Trust business segment's
contribution to net income was $10.6 million in the second quarter of
2012, up marginally from the second quarter of 2011. Reported net
income for the second quarter of 2012 was $8.1 million.

Total revenue increased to $39.8 million in the second quarter of 2012
compared with $30.8 million in the second quarter of 2011, mainly as a
result of the increase in other income from registered self-directed
plans related to the acquisition of the MRS Companies. Net interest
income also increased by $2.3 million compared to last year due to
organic growth in loan and deposit volumes and the addition of assets
from the acquisition of the MRS Companies.

Loan losses slightly increased by $0.3 million to $0.9 million in the
second quarter of 2012, compared to $0.6��million in the second quarter
of 2011, mainly due to marginally higher provisions required on greater
volumes of investment loans. Non-interest expenses increased by $8.8
million to $24.5��million in the second quarter of 2012, compared with
$15.7��million in the second quarter of 2011. This increase includes
current operating costs of $7.6 million related to the MRS Companies.
Otherwise, expenses increased by $1.2 million or 8% year-over-year, due
to higher salary expenses and other expenses to support the segment's
business growth objectives and higher IT costs due to increased
activity. Costs related to an acquisition and other amounted to $3.4
million for the second quarter of 2012, resulting mainly from IT costs
incurred and additional headcount hired to integrate the MRS Companies.

Results for the second quarter of 2012 were adversely impacted by two
fewer days of activity compared to the first quarter. However, the
second quarter results include 90 days of operation of the MRS
Companies versus 77 days in the first quarter.

The acquisition of the MRS Companies, after five and a half months, is
yielding excellent results and contributing to improve revenue
diversification as evidenced by the growth in other income and assets
under administration. The integration of the MRS Companies and the
realization of anticipated synergies are progressing according to plan,
with the IT integration proceeding smoothly. Management remains focused
on completing this process in order to ensure anticipated synergies are
achieved over the next 9 months.

For the six months ended April 30, 2012, net income, excluding after-tax
T&I Costs related to the acquisition of MRS Companies of $4.4 million,
was $21.4 million, slightly higher than the same period of 2011
essentially as a result of the operating contribution of MRS Companies.
Reported net income for the six months ended April��30,��2012 was $17.0
million.

Balance sheet highlights

Loans up 11% or $604.5 million over the last 12 months

Total deposits up 10% or $895.7 million over the last 12 months

Laurentian Bank Securities & Capital Markets

��

FOR THE THREE MONTHS ENDED

��

FOR THE SIX MONTHS ENDED

��

In thousands of Canadian dollars, except percentage amounts (Unaudited)

APRIL 30

2012

��

��

JANUARY 31

2012

��

��

APRIL 30

2011

��

��

APRIL 30

2012

��

��

APRIL 30

2011

��

��

��

Total revenue

16,265

��

14,655

��

17,872

��

30,920

��

34,113

��

Non-interest expenses

��

12,530

��

12,160

��

14,126

��

24,690

��

26,621

��

Income before income taxes

��

3,735

��

2,495

��

3,746

��

6,230

��

7,492

��

Income taxes

��

956

��

620

��

1,014

��

1,576

��

2,038

��

Net income

2,779

��

1,875

��

2,732

��

4,654

��

5,454

��

Efficiency ratio ^[1]

��

77.0

��

83.0

��

79.0

��

79.9

��

78.0

[1] Refer to the non-GAAP financial measures section.

The Laurentian Bank Securities and Capital Markets (LBS & CM) business
segment's contribution to net income was up marginally to $2.8��million
in the second quarter of 2012, compared with $2.7��million in the second
quarter of 2011.

Total revenue decreased by $1.6 million to total $16.3 million in the
second quarter of 2012 compared with $17.9��million for the same quarter
of 2011, as market conditions remained challenging for underwriting and
trading activities compared to a year ago. Difficult market conditions
also adversely impacted retail brokerage activity and contributed to
the decrease in total revenue. Non-interest expenses decreased by $1.6
million, essentially due to lower performance-based compensation, in
line with lower market-driven income, reduced commissions and cost
reduction measures implemented during the quarter.

Compared to the first quarter of 2012, the contribution from the LBS &
CM business segment continued to progress as markets gained some
momentum in the beginning of the second quarter of 2012. This trend was
tempered somewhat with the resurgence of global economic concerns,
which has dampened results towards the end of the quarter.

For the six months ended April 30, 2012, net income decreased by $0.8
million compared to the same period last year, as lower expenses did
not fully compensate for the decrease in revenues, essentially for the
same reasons presented above.

Balance sheet highlight��

Assets under management stood at $2.2 billion as at April 30, 2012

Other Sector

��

FOR THE THREE MONTHS ENDED

��

FOR THE SIX MONTHS ENDED

��

In thousands of Canadian dollars (Unaudited)

��

APRIL 30

2012

��

��

JANUARY 31

2012

��

��

APRIL 30

2011

��

��

APRIL 30

2012

��

��

APRIL 30

2011

��

Net interest income

��

(1,206)

��

(1,781)

��

(7,410)

��

(2,987)

��

(13,934)

Other income

��

1,788

��

1,017

��

485

��

2,805

��

1,307

Total revenue

��

582

��

(764)

��

(6,925)

��

(182)

��

(12,627)

Non-interest expenses

��

7,996

��

5,762

��

5,028

��

13,758

��

6,390

Loss before income taxes

��

(7,414)

��

(6,526)

��

(11,953)

��

(13,940)

��

(19,017)

Income taxes recovery

��

(2,742)

��

(2,015)

��

(5,046)

��

(4,757)

��

(7,899)

Net loss

��

(4,672)

��

(4,511)

��

(6,907)

��

(9,183)

��

(11,118)

The Other sector posted a negative contribution to net income of $4.7
million in the second quarter of 2012, compared with a negative
contribution of $6.9 million in the second quarter of 2011.

Net interest income improved to negative $1.2��million in the second
quarter of 2012, compared to negative $7.4 million in the second
quarter of 2011, reflecting good market positioning as well as some
adjustments to transfer pricing initiated in the first quarter of 2012.
Other income for the second quarter of 2012 was $1.8 million, compared
to $0.5��million for the second quarter of 2011 and essentially relates
to gains on treasury activities.

Non-interest expenses in the second quarter of 2012 amounted to $8.0
million compared to $5.0 million a year ago, a $3.0��million increase.
Higher pension costs, charges on group insurance programs and
share-based incentive program costs, as well as regular salary
increases contributed to the increase compared to last year.

For the six months ended April 30, 2012, the negative contribution stood
at $9.2 million, compared to negative $11.1 million for the six months
ended April 30, 2011, mainly due to the same reasons as noted above.

Proposed Acquisition of AGF Trust Company

On June 6, 2012, the Bank and AGF Management Limited announced that they
had entered into an agreement pursuant to which B2B Trust, a subsidiary
of the Bank, will acquire 100% of AGF Trust Company in a share purchase
transaction. The transaction is expected to close in August 2012
subject to regulatory notifications and approvals. As of the closing
date, assets of AGF Trust Company are expected to be approximately $3.8
billion, essentially including cash and marketable securities of $0.7
billion and retail loan portfolios of approximately $3.1 billion. The
final purchase price will be based on the net book value of AGF Trust
Company as at the closing date, estimated at approximately
$242.0��million. The agreement also includes a contingent consideration
of a maximum of $20.0 million over five years if credit quality reaches
certain criteria.

To support the Bank's balance sheet, considering this proposed
transaction, the Bank entered into arm's length subscription agreements
with the Caisse de d��p��t et placement du Qu��bec and the Fonds de
solidarit�� FTQ, relating to a private placement of 2,867,383
subscription receipts, which will be issued at a price of $41.85 per
receipt and will be exchangeable, on a one-for-one basis, for common
shares of the Bank. The offering of subscription receipts is expected
to close, subject to the approval of the Toronto Stock Exchange, no
later than June 15, 2012, and the proceeds of such offering will be
placed in escrow until closing of the AGF Trust acquisition, at which
point the subscription receipts will be automatically exchanged for
common shares of the Bank. This agreement will provide net proceeds of
$115.1 million.

Additional Financial Information - Quarterly Results

��

IFRS

��

CANADIAN GAAP

In thousands of Canadian dollars, except per share and percentage
amounts (Unaudited)��

APRIL 30

2012

��

��

JANUARY 31

2012

��

��

OCTOBER 31

2011

��

��

JULY 31

2011

��

��

APRIL 30

2011

��

��

JANUARY 31

2011

��

��

OCTOBER 31

2010

��

��

JULY 31

2010

��

��

��

Total revenue

198,670

��

193,744

��

182,422

��

185,833

��

183,237

��

186,855

��

190,074

��

188,810

��

Net income

33,863

��

30,962

��

26,709

��

29,072

��

31,016

��

36,920

��

32,514

��

30,064

��

Earnings per share

��

Basic

1.22

��

1.16

��

0.99

��

1.09

��

1.17

��

1.41

��

1.24

��

1.13

��

Diluted

1.22

��

1.16

��

0.99

��

1.08

��

1.17

��

1.41

��

1.24

��

1.13

��

Return on common shareholders' equity ^[1]

��

12.1

��

11.6

��

10.0

��

11.2

��

12.7

��

15.2

��

11.8

��

11.0

Balance sheet assets (in millions of dollars)

30,708

��

29,921

��

28,963

��

28,239

��

27,896

��

26,919

��

23,772

��

23,549

��

Excluding Transaction and Integration Costs^[2]

��

Adjusted net income^[^1]

36,302

��

32,919

��

33,375

��

29,072

��

31,016

��

36,920

��

32,514

��

30,064

��

Adjusted diluted earnings per share^[1]

1.31

��

1.24

��

1.26

��

1.08

��

1.17

��

1.41

��

1.24

��

1.13

��

Adjusted return on common shareholders equity^[1]

��

13.0

��

12.4

��

12.8

��

11.2

��

12.7

��

15.2

��

11.8

��

11.0

[1] Refer to the non-GAAP financial measures section.

[2] Costs related to the acquisition of the MRS Companies.

Accounting Policies

A summary of the Bank's significant accounting policies is presented in
Notes 2 and 3 of the April 30, 2012 unaudited condensed interim
consolidated financial statements. The unaudited condensed interim
consolidated financial statements for the second quarter of 2012 have
been prepared in accordance with these accounting policies.

Future changes in accounting policy

The International Accounting Standards Board ("IASB") has issued new
standards and amendments to existing standards on financial
instruments, consolidation, fair value measurement, employee benefits,
offsetting and presentation of other comprehensive income. These future
accounting changes will be applicable for the Bank in various annual
periods beginning on November��1,��2012 at the earliest. The Bank has not
yet assessed the impact of the adoption of these standards on its
financial statements. Additional information on the new standards and
amendments to existing standards can be found in Note 4 to the
unaudited condensed interim consolidated financial statements.

Corporate Governance and Changes in Internal Control over Financial
Reporting

On November 16, 2011, the Bank completed the acquisition of the MRS
Companies. In accordance with Canadian securities law, which allows an
issuer to limit its design of the disclosure controls and procedures,
and internal controls over financial reporting to exclude the controls,
policies and procedures of a business acquired not more than 365 days
before the last day of the period covered by the interim filings,
management has excluded the controls, policies and procedures of MRS
Companies, the results of which are included in the unaudited condensed
interim consolidated financial statements of the Bank for the period
ended April 30, 2012. MRS Companies constituted approximately 3% of
total assets, 2% of total liabilities, 5% of total revenue and 5% of
total net income as at and for the six-month period ended April 30,
2012. For additional information on the assets acquired and liabilities
assumed at the date of acquisition, refer to Note 15 to the unaudited
condensed interim consolidated financial statements.

During the last quarter ended April 30, 2012, there have been no changes
in the Bank's policies or procedures and other processes that comprise
its internal control over financial reporting which have materially
affected, or are reasonably likely to materially affect, the Bank's
internal control over financial reporting.

The Board of Directors and the Audit Committee of Laurentian Bank
reviewed this press release prior to its release today.

Non-GAAP Financial Measures

The Bank has adopted IFRS as its accounting framework. IFRS are the
generally accepted accounting principles (GAAP) for Canadian publicly
accountable enterprises for years beginning on or after January 1,
2011. The Bank uses both GAAP and certain non-GAAP measures to assess
performance. Non-GAAP measures do not have any standardized meaning
prescribed by GAAP and are unlikely to be comparable to any similar
measures presented by other companies. These non-GAAP financial
measures are considered useful to investors and analysts in obtaining a
better understanding of the Bank's financial results and analyzing its
growth and profit potential more effectively. The Bank's non-GAAP
financial measures are defined as follows:

Return on common shareholders' equity

Return on common shareholders' equity is a profitability measure
calculated as the net income available to common shareholders as a
percentage of average common shareholders' equity, excluding
accumulated other comprehensive income.

Book value per common share

The Bank's book value per common share is defined as common
shareholders' equity, excluding accumulated other comprehensive income,
divided by the number of common shares outstanding at the end of the
period.

Tangible common equity ratio

Tangible common equity is defined as common shareholders' equity,
excluding accumulated other comprehensive income, less goodwill and
contractual and customer relationship intangible assets. The tangible
common equity ratio is defined as the tangible common equity as a
percentage of risk-weighted assets.

Net interest margin

Net interest margin is the ratio of net interest income to total average
assets, expressed as a percentage or basis points.

Efficiency ratio and operating leverage

The Bank uses the efficiency ratio as a measure of its productivity and
cost control. This ratio is defined as non-interest expenses as a
percentage of total revenue. The Bank also uses operating leverage as a
measure of efficiency. Operating leverage is the difference between
total revenue and non-interest expenses growth rates.

Dividend payout ratio

The dividend payout ratio is defined as dividends declared on common
shares as a percentage of net income available to common shareholders.

Dividend yield

The dividend yield is defined as dividends declared per common share
divided by the closing common share price.

Adjusted GAAP and non-GAAP measures

Certain analyses presented throughout this document are based on the
Bank's core activities and therefore exclude the effect of the
integration costs related to the acquisition of the MRS Companies.

About Laurentian Bank

Laurentian Bank of Canada is a banking institution operating across
Canada and offering its clients diversified financial services.
Distinguishing itself through excellence in service, as well as through
its simplicity and proximity, the Bank serves individual consumers and
small and medium-sized businesses. The Bank also offers its products to
a wide network of independent financial intermediaries through B2B
Trust, as well as full-service brokerage solutions through Laurentian
Bank Securities.

Laurentian Bank is well established in the Province of Qu��bec, operating
the third-largest retail branch network. Elsewhere throughout Canada,
it operates in specific market segments where it holds an enviable
position. Laurentian Bank of Canada has more than $30 billion in
balance sheet assets and more than $33��billion in assets under
administration. Founded in 1846, it has been selected as the Qu��bec and
Atlantic Canada regional winner of the Canada's 10 Most Admired
Corporate Cultures^TMprogram presented by Waterstone Human Capital. The Bank employs more
than 4,000 people.

Access to Quarterly Results Materials

Interested investors, the media and others may review this press
release, interim consolidated financial statements, supplementary
financial information and our report to shareholders which are posted
on our web site at www.laurentianbank.ca.

Conference Call

Laurentian Bank invites media representatives and the public to listen
to the conference call with financial analysts to be held at 2:00��p.m.
Eastern Time on Wednesday, June 6, 2012. The live, listen-only,
toll-free, call-in number is 514-861-2909 or 1-888-789-9572
Code��3478978#.

You can listen to the call on a delayed basis at any time from 6:00 p.m.
on Wednesday, June 6, 2012 until 11:59 p.m. on July��6,��2012, by dialing
the following playback number: 514-861-2272 or 1-800-408-3053 Code
4742839#. The conference call can also be heard through the Investor
Relations section of the Bank's Web site at www.laurentianbank.ca. The Bank's Web site also offers additional financial information.

Unaudited Condensed Interim Consolidated Financial Statements

The complete unaudited condensed interim consolidated financial
statements for the quarter ended April 30, 2012, including the notes to
the unaudited condensed interim consolidated financial statements, are
also available on the Bank's Web site at www.laurentianbank.ca.

Consolidated Balance Sheet ^[1]

��

��

In thousands of Canadian dollars (Unaudited)��

AS AT APRIL 30

2012

��

AS AT OCTOBER 31

2011

��

AS AT APRIL 30

2011

��

AS AT NOVEMBER 1

2010

ASSETS

��

Cash and non-interest-bearing deposits with other banks

72,029

��

81,600

��

71,262

��

72,444

Interest-bearing deposits with other banks

��

624,251

��

285,459

��

646,533

��

99,394

Securities

��

Available-for-sale

��

2,055,991

��

2,108,075

��

2,054,503

��

2,138,861

��

Held-to-maturity

��

1,056,657

��

885,822

��

646,713

��

559,457

��

Held-for-trading

��

2,181,962

��

2,181,969

��

2,248,007

��

1,496,583

��

Designated as at fair value through profit or loss

��

624,642

��

5,294,610

��

5,175,866

��

4,949,223

��

4,819,543

Securities purchased under reverse repurchase agreements

��

978,063

��

720,317

��

626,168

��

994,674

Loans

��

Personal

��

6,116,400

��

5,774,207

��

5,681,527

��

5,636,203

��

Residential mortgage

��

12,279,486

��

11,869,412

��

11,252,744

��

10,859,647

��

Commercial mortgage

��

2,470,794

��

2,363,808

��

2,213,760

��

2,166,375

��

Commercial and other

��

2,087,886

��

1,900,977

��

1,823,234

��

1,691,190

��

Customers' liabilities under acceptances

��

166,904

��

179,140

��

187,400

��

165,450

��

23,121,470

��

22,087,544

��

21,158,665

��

20,518,865

��

Allowances for loan losses

��

(138,869)

��

(143,150)

��

(136,205)

��

(131,567)

��

22,982,601

��

21,944,394

��

21,022,460

��

20,387,298

Other

��

Premises and equipment

��

66,308

��

61,708

��

60,966

��

55,727

��

Derivatives

��

161,807

��

228,261

��

118,719

��

158,066

��

Goodwill

��

64,077

��

29,224

��

29,224

��

29,224

��

Software and other intangible assets

��

142,401

��

113,949

��

100,414

��

101,671

��

Deferred tax assets

��

2,467

��

4,160

��

21,172

��

47,995

��

Other assets

��

319,860

��

318,272

��

249,841

��

289,289

��

756,920

��

755,574

��

580,336

��

681,972

��

30,708,474

��

28,963,210

��

27,895,982

��

27,055,325

��

LIABILITIES AND SHAREHOLDERS' EQUITY

��

Deposits

��

Personal

16,414,315

��

15,609,853

��

15,510,692

��

15,354,851

��

Business, banks and other

��

4,646,439

��

4,406,428

��

4,063,085

��

4,250,819

��

21,060,754

��

20,016,281

��

19,573,777

��

19,605,670

Other

��

Obligations related to securities sold short

��

1,352,007

��

1,471,254

��

1,437,259

��

1,362,336

��

Obligations related to securities sold under repurchase agreements

��

441,532

��

36,770

��

205,923

��

60,050

��

Acceptances

��

166,904

��

179,140

��

187,400

��

165,450

��

Derivatives

��

128,626

��

129,969

��

129,588

��

115,235

��

Deferred tax liabilities

��

1,408

��

6,362

��

290

��

27,543

��

Other liabilities

��

984,528

��

901,720

��

915,192

��

945,939

��

3,075,005

��

2,725,215

��

2,875,652

��

2,676,553

Debt related to securitization activities

��

5,051,652

��

4,760,847

��

4,051,889

��

3,486,634

Subordinated debt

��

243,426

��

242,551

��

241,683

��

150,000

Shareholders' equity

��

Preferred shares

��

210,000

��

210,000

��

210,000

��

210,000

��

Common shares

��

320,435

��

259,492

��

259,484

��

259,363

��

Share-based payment reserve

��

227

��

227

��

227

��

243

��

Retained earnings

��

719,372

��

683,007

��

653,541

��

610,483

��

Accumulated other comprehensive income

��

27,603

��

65,590

��

29,729

��

56,379

��

1,277,637

��

1,218,316

��

1,152,981

��

1,136,468

��

30,708,474

��

28,963,210

��

27,895,982

��

27,055,325

[1] Comparative figures have been prepared in accordance with IFRS. See
Note 5 to the unaudited condensed interim consolidated financial
statements as at April 30, 2012 for further details.

Consolidated Statement of Income^[1]

��

FOR THE THREE MONTHS ENDED

��

FOR THE SIX MONTHS ENDED

��

In thousands of Canadian dollars, except per share amounts (Unaudited)

APRIL 30

2012

��

��

JANUARY 31

2012

��

��

APRIL 30

2011

��

��

APRIL 30

2012

��

��

APRIL 30

2011

��

Interest income

��

Loans

240,943

��

245,083

��

234,433

��

486,026

��

476,849

��

Securities

��

18,377

��

18,891

��

18,199

��

37,268

��

36,485

��

Deposits with other banks

��

1,276

��

1,024

��

1,589

��

2,300

��

2,599

��

Other, including derivatives

��

14,557

��

15,697

��

14,196

��

30,254

��

29,304

��

275,153

��

280,695

��

268,417

��

555,848

��

545,237

Interest expense

��

Deposits

��

104,653

��

107,673

��

108,851

��

212,326

��

222,362

��

Debt related to securitization activities

��

39,508

��

39,672

��

33,983

��

79,180

��

65,858

��

Subordinated debt

��

2,374

��

2,403

��

2,352

��

4,777

��

6,731

��

Other, including derivatives

��

294

��

318

��

1,166

��

612

��

1,618

��

146,829

��

150,066

��

146,352

��

296,895

��

296,569

Net interest income

��

128,324

��

130,629

��

122,065

��

258,953

��

248,668

Other income

��

Fees and commissions on loans and deposits

��

29,657

��

28,511

��

27,882

��

58,168

��

56,225

��

Income from brokerage operations

��

14,354

��

13,549

��

16,592

��

27,903

��

29,876

��

Credit insurance income

��

3,662

��

3,770

��

4,290

��

7,432

��

9,493

��

Income from treasury and financial market operations

��

5,856

��

4,714

��

3,993

��

10,570

��

10,122

��

Income from sales of mutual funds

��

4,488

��

4,329

��

4,460

��

8,817

��

8,567

��

Income from registered self-directed plans

��

7,648

��

6,801

��

1,990

��

14,449

��

4,074

��

Other income

��

4,681

��

1,441

��

1,965

��

6,122

��

3,067

��

70,346

��

63,115

��

61,172

��

133,461

��

121,424

Total revenue

��

198,670

��

193,744

��

183,237

��

392,414

��

370,092

Provision for loan losses

��

7,500

��

10,000

��

11,984

��

17,500

��

23,441

Non-interest expenses

��

Salaries and employee benefits

��

79,282

��

77,032

��

73,157

��

156,314

��

141,845

��

Premises and technology

��

37,998

��

37,166

��

34,954

��

75,164

��

69,555

��

Other

��

26,481

��

26,162

��

23,875

��

52,643

��

47,663

��

Costs related to an acquisition and other

��

3,350

��

2,660

��

6,010

��

147,111

��

143,020

��

131,986

��

290,131

��

259,063

Income before income taxes

��

44,059

��

40,724

��

39,267

��

84,783

��

87,588

Income taxes

��

10,196

��

9,762

��

8,251

��

19,958

��

19,652

Net income

33,863

��

30,962

��

31,016

��

64,825

��

67,936

Preferred share dividends, including applicable taxes

��

3,165

��

3,166

��

3,109

��

6,331

��

6,218

Net income available to common shareholders

30,698

��

27,796

��

27,907

��

58,494

��

61,718

Average number of common shares outstanding (in thousands)

��

Basic

��

25,235

��

23,925

��

23,923

��

24,573

��

23,922

��

Diluted

��

25,253

��

23,943

��

23,946

��

24,591

��

23,944

Earnings per share

��

Basic

1.22

��

1.16

��

1.17

��

2.38

��

2.58

��

Diluted

1.22

��

1.16

��

1.17

��

2.38

��

2.58

Dividends declared per share

��

Common share

0.45

��

0.45

��

0.39

��

0.90

��

0.78

��

Preferred share - Series 9

0.38

��

0.38

��

0.38

��

0.75

��

0.75

��

Preferred share - Series 10

0.33

��

0.33

��

0.33

��

0.66

��

0.66

[1] Comparative figures have been prepared in accordance with IFRS. See
Note 5 to the unaudited condensed interim consolidated financial
statements as at April 30, 2012 for further details.

Consolidated Statement of Comprehensive Income ^[^1]

��

FOR THE THREE MONTHS ENDED

��

FOR THE SIX MONTHS ENDED

��

In thousands of Canadian dollars (Unaudited)

��

APRIL 30

2012

��

��

JANUARY 31

2012

��

��

APRIL 30

2011

��

��

APRIL 30

2012

��

��

APRIL 30

2011

��

Net income

��

33,863

��

30,962

��

31,016

��

64,825

��

67,936

��

Other comprehensive income, net of income taxes

��

Unrealized net gains (losses) on available-for-sale securities

��

(3,751)

��

(1,483)

��

(1,617)

��

(5,234)

��

(8,556)

��

Reclassification of net (gains) losses on available-for-sale securities
to net income

��

(888)

��

(321)

��

(1,209)

��

(1,625)

��

Net change in value of derivatives designated as cash flow hedges

��

(23,980)

��

(7,564)

��

(4,004)

��

(31,544)

��

(16,469)

��

(28,619)

��

(9,368)

��

(5,531)

��

(37,987)

��

(26,650)

Comprehensive income

��

5,244

��

21,594

��

25,485

��

26,838

��

41,286

[1] Comparative figures have been prepared in accordance with IFRS. See
Note 5 to the unaudited condensed interim consolidated financial
statements as at April 30, 2012 for further details.

Consolidated Statement of Changes in Shareholders' Equity ^[1]

��

FOR THE SIX MONTHS ENDED APRIL 30, 2012

��

AOCI RESERVES

��

In thousands of Canadian dollars (Unaudited)

PREFERRED

SHARES

��

COMMON

SHARES

��

RETAINED

EARNINGS

��

AVAILABLE-

FOR-SALE

SECURITIES

��

CASH

FLOW

HEDGES

��

TOTAL

��

SHARE-

BASED

PAYMENT

RESERVE

��

TOTAL

SHARE-

HOLDERS'

EQUITY

��

Balance as at October 31, 2011

210,000

��

259,492

��

683,007

��

22,217

��

43,373

��

65,590

��

227

��

1,218,316

Net income

��

64,825

��

64,825

Other comprehensive income (net of income taxes)

��

Unrealized net gains (losses) on available-for-sale securities

��

(5,234)

��

(5,234)

��

(5,234)

��

Reclassification of net (gains) losses on available-for-sale securities
to net income

��

(1,209)

��

(1,209)

��

(1,209)

��

Net change in value of derivatives designated as cash flow hedges

��

(31,544)

��

(31,544)

��

(31,544)

Comprehensive income

��

64,825

��

(6,443)

��

(31,544)

��

(37,987)

��

26,838

Net proceeds from issuance of common shares

��

60,943

��

60,943

Equity dividends

��

Preferred shares, including applicable taxes

��

(6,331)

��

(6,331)

��

Common shares

��

(22,129)

��

(22,129)

Balance as at April 30, 2012

210,000

��

320,435

��

719,372

��

15,774

��

11,829

��

27,603

��

227

��

1,277,637

��

FOR THE SIX MONTHS ENDED APRIL 30, 2011

��

AOCI RESERVES

��

In thousands of Canadian dollars (Unaudited)

PREFERRED

SHARES

��

COMMON

SHARES

��

RETAINED

EARNINGS

��

AVAILABLE-

FOR-SALE

SECURITIES

��

CASH

FLOW

HEDGES

��

TOTAL

��

SHARE-

BASED

PAYMENT

RESERVE

��

TOTAL

SHARE-

HOLDERS'

EQUITY

��

Balance as at November 1, 2010

210,000

��

259,363

��

610,483

��

37,071

��

19,308

��

56,379

��

243

��

1,136,468

Net income

��

67,936

��

67,936

Other comprehensive income (net of income taxes)

��

Unrealized net gains (losses) on available-for-sale securities

��

(8,556)

��

(8,556)

��

(8,556)

��

Reclassification of net (gains) losses on available-for-sale securities
to net income

��

(1,625)

��

(1,625)

��

(1,625)

��

Net change in value of derivatives designated as cash flow hedges

��

(16,469)

��

(16,469)

��

(16,469)

Comprehensive income

��

67,936

��

(10,181)

��

(16,469)

��

(26,650)

��

41,286

Issuance of common shares under share purchase option plan

��

121

��

121

Share-based payments

��

(16)

��

(16)

Equity dividends

��

Preferred shares, including applicable taxes

��

(6,218)

��

(6,218)

��

Common shares

��

(18,660)

��

(18,660)

Balance as at April 30, 2011

210,000

��

259,484

��

653,541

��

26,890

��

2,839

��

29,729

��

227

��

1,152,981

[1] Comparative figures have been prepared in accordance with IFRS. See
Note 5 to the unaudited condensed interim consolidated financial
statements as at April 30, 2012 for further details.

��

For further information:

Chief Financial Officer: Michel C. Lauzon, 514-284-4500 #7997
Media and Investor Relations contact: Gladys Caron, 514-284-4500 #7511; cell 514-893-3963

Canada Dividend Investor

Wednesday, June 6, 2012

LB - <span class="simulate_din_font">Laurentian Bank reports net income of $33.9 million for the second quarter of 2012 and increases dividend by $0.02 per share</span> (CAD 0.47)

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