Laurentian Bank reports record 2012 earnings and increases dividend

Laurentian Bank reports record 2012 earnings and increases dividend 
 _____________________________________________________________________
|The Bank's Annual Report, which includes the Audited Annual          |
|Consolidated Financial Statements and accompanying Management's      |
|Discussion and Analysis for 2012, is also available on the Bank's Web|
|site at                                                              |
|www.laurentianbank.ca.    |
|_____________________________________________________________________| 
2012 Highlights 


    --  Net income up 14% to $140.5 million, return on common
        shareholders' equity of 12.1%, and diluted earnings per share
        of $4.98
    --  Significant increase in loan portfolios, up 21% year-over-year
    --  Excellent credit quality as evidenced by loan losses of $33.0
        million, down 35% year-over-year
    --  Acquisitions of the MRS Companies and AGF Trust Company and
        $182 million common share issuances


--  Excluding adjusting items:
  o Adjusted net income of $140.7 million, up 8% year-over-year
  o Adjusted return on common shareholders' equity of 12.0%
  o Adjusted diluted earnings per share of $4.98, up $0.05 from $4.93 a 


    year earlier

Highlights of the fourth quarter 2012
    --  Quarterly common share dividend raised by $0.02 or 4% to $0.49
        per share
    --  Net income of $45.7 million, return on common shareholders'
        equity of 14.2%, and diluted earnings per share of $1.51
    --  Closing of the acquisition of AGF Trust Company and recognition
        of a $16.4 million net gain arising upon acquisition.
    --  Issuance of $200 million subordinated debt and of $100  million
        preferred shares


--  Excluding adjusting items:
  o Adjusted net income of $36.2 million, up 8% year-over-year
  o Adjusted return on common shareholders' equity of 10.9%
  o Adjusted diluted earnings per share of $1.17, down $0.09 from $1.26 


    a year earlier



MONTREAL, Dec. 5, 2012 /CNW Telbec/ - Laurentian Bank of Canada reported net 
income of $140.5 million or $4.98 diluted per share for the year ended October 
31, 2012, compared with $123.7 million or $4.65 diluted per share in 2011. 
Return on common shareholders' equity was 12.1% for the year ended October 31, 
2012, compared with 12.2% for the same period in 2011. Excluding adjusting 
items(1), net income was up 8% to $140.7 million or $4.98 diluted per share 
for the year ended October31, 2012, compared to $130.4 million or $4.93 
diluted per share for the same period in 2011; and adjusted return on common 
shareholders' equity was12.0%.

Including $24.3 million pre-tax gain arising on acquisition ($16.4 million 
after income taxes), net income totalled $45.7 million, or $1.51 diluted per 
share for the quarter ended October 31, 2012, compared with $26.7million, or 
$0.99 diluted per share, for the fourth quarter of 2011 and $1.06 for the 
third quarter of 2012. Return on common shareholders' equity was 14.2% 
compared with 9.9% for the fourth quarter of 2011 and 10.1% for the third 
quarter of 2012. Excluding adjusting items, net income was up 8% 
year-over-year to $36.2million or $1.17 diluted per share for the fourth 
quarter of 2012 and up 3% quarter-over-quarter. Adjusted return on common 
shareholders' equity was 10.9% for the fourth quarter of 2012.

Commenting on the Bank's financial results for 2012, Réjean Robitaille, 
President and Chief Executive Officer, mentioned:
"We successfully improved our earnings year-over-year and, in so doing, 
reached record profitability in a challenging retail banking and low interest 
rate environment, recording the eighth consecutive year of rising earnings per 
share. As net interest margins continued to be pressured throughout the year, 
sustained organic growth in loan and deposit volumes combined with the Bank's 
acquisitions of the MRS Companies(2) and AGF Trust Company (AGF Trust) 
generated strong revenue growth. The excellent credit quality of the Bank's 
loan portfolio also contributed to our good performance. In the midst of 
persistent economic uncertainty, we will continue to prudently invest in 
various initiatives in our business lines, while closely controlling costs, 
with a constant focus on profitable growth to optimize the deployment of our 
shareholders' equity."

On the integration of the MRS Companies and AGF Trust, Mr. Robitaille added: 
"As significant milestones of the system conversion and client integration 
process of the MRS Companies are now achieved, we remain focused on 
materializing the full potential from this strategic transaction. Our efforts 
now gradually turn to the integration of the AGF Trust business in order to 
optimize the benefits for the Bank and for our clients."

Mr. Robitaille concluded: "In this difficult and uncertain environment, we 
remain committed to enhancing value for our shareholders and we are confident 
in our ability to maintain our progress. I am therefore pleased to announce 
that the Board of Directors has approved an increase in our quarterly common 
share dividend of $0.02 to $0.49 per share."

IFRS Conversion

 _____________________________________________________________________
|International Financial Reporting Standards (IFRS) are the generally |
|accepted accounting principles (GAAP) for Canadian publicly          |
|accountable enterprises for years beginning on or after January 1,   |
|2011. 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 the previous Canadian GAAP (CGAAP) basis|
|to the new IFRS basis. Additional information on the impact from the |
|transition is available in the Bank's 2012 Annual Report, in the     |
|notes to the annual consolidated financial statements and in the     |
|Supplementary Information reported for the fourth 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.                        |
|                                                                     |
|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). Changes to the interpretation of Basel   |
|III rules may impact 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 anticipated benefits from the acquisitions of the|
|MRS Companies and AGF Trust and the Bank's statements with regards to|
|these transactions being accretive to earnings, such factors also    |
|include, but are not limited to: the fact that 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 Bank's or MRS Companies' and AGF Trust's customers to|
|the transaction; and diversion of management time on                 |
|acquisition-related issues.                                          |
|                                                                     |
|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.                       |
|_____________________________________________________________________|

_________________________

(1) Certain analyses presented throughout this document are based on the 
Bank's core activities and therefore exclude the effect of certain amounts 
designated as adjusting items. Refer to Adjusting items and Non-GAAP financial 
measures sections for further details.

(2) The MRS Companies include the renamed B2B Bank Financial Services Inc, B2B 
Bank Securities Services Inc. and B2B Bank Intermediary Services Inc. as well 
as MRS Trust , which merged with B2B Bank as of April 16, 2012.

Highlights
                  FOR THE THREE MONTHS
                          ENDED                          FOR THE YEAR ENDED            
                  OCTOBER     OCTOBER
                       31          31              OCTOBER 31     OCTOBER 31           

 In thousands
of Canadian
dollars, except
per share and
percentage
amounts
(Unaudited)          2012        2011   VARIANCE         2012           2011   VARIANCE
                                                                                       

Profitability                                                                          

  Total revenue $ 210,396   $ 182,422    15 %    $    796,643   $    738,347     8 %

  Net income    $  45,685   $  26,709    71 %    $    140,508   $    123,717    14 %

  Diluted
  earnings per
  share         $    1.51   $    0.99    53 %    $       4.98   $       4.65     7 %

  Return on
  common
  shareholders'
  equity ([1])       14.2 %       9.9 %                  12.1 %         12.2 %         

  Net interest
  margin ([1])       1.62 %      1.76 %                  1.69 %         1.82 %         

  Efficiency
  ratio ([1] )       78.6 %      75.2 %                  75.9 %         71.8 %         
                                                                                       

Adjusted
measures                                                                               

  Adjusted net
  income ([1])  $  36,186   $  33,375     8 %    $    140,660   $    130,383     8 %

  Adjusted
  diluted
  earnings per
  share( [1])   $    1.17   $    1.26   (7) %    $       4.98   $       4.93     1 %

  Adjusted
  return on
  common
  shareholders'
  equity ([1])       10.9 %      12.7 %                  12.0 %         12.9 %         

  Adjusted
  efficiency
  ratio ([1])        74.4 %      70.2 %                  73.1 %         70.6 %         
                                                                                       

Per common
share                                                                                  

  Share price                                                                          
    High        $   47.80   $   46.41            $      48.68   $      55.87           
    Low         $   43.77   $   38.62            $      40.66   $      38.62           
    Close       $   44.45   $   45.98   (3) %    $      44.45   $      45.98   (3) %

  Price /
  earnings
  ratio                                                   8.9 x          9.9 x         

  Book value (
  [1])                                           $      42.81   $      39.59     8 %

  Market to
  book value                                              104 %          116 %         

  Dividends
  declared      $    0.47   $    0.42    12 %    $       1.84   $       1.62    14 %

  Dividend
  yield ([1])        4.23 %      3.65 %                  4.14 %         3.52 %         

  Dividend
  payout ratio
  ([1])              31.2 %      42.6 %                  37.0 %         34.8 %         
                                                                                       

Financial
position                                                                               

  Balance sheet
  assets                                         $ 34,936,826   $ 28,963,210    21 %

  Loans and
  acceptances                                    $ 26,780,879   $ 22,087,544    21 %

  Deposits                                       $ 24,041,443   $ 20,016,281    20 %
                                                                                       

Basel II
regulatory
capital ratio (
[2])                                                                                   

  Tier I                                                 10.9 %         11.0 %         
                                                                                       

Other
information                                                                            

  Number of
  full-time
  equivalent
  employees                                             4,201          3,669           

  Number of
  branches                                                157            158           

  Number of
  automated
  banking
  machines                                                426            427           

[1] Refer to the non-GAAP financial measures section.
[2] The ratio for 2011 is presented in accordance with previous CGAAP as filed 
with OSFI.

Financial Review

The following sections present a summary analysis of the Bank's financial 
condition as at October31, 2012, and of how it performed during the 
three-month period and year then ended. The analysis should be read in 
conjunction with the unaudited financial information for the fourth quarter of 
2012 presented below.

Audited Annual Consolidated Financial Statements and accompanying Management's 
Discussion and Analysis for 2012 are also available on the Bank's website at 
www.laurentianbank.ca. Additional information about the Laurentian Bank of 
Canada, including the Annual Information Form, is available on the Bank's 
website at www.laurentianbank.ca and on SEDAR at www.sedar.com.

The comparative figures as at October 31, 2011 and November 1, 2010 and for 
the year ended October31, 2011 have been restated to comply with IFRS. For 
details on the significant adjustments to the consolidated financial 
statements, refer to Note 30, "Adoption of IFRS", to the audited consolidated 
financial statements.

2012 Financial Performance

The following table presents management's financial objectives for 2012 and 
the Bank's performance for the year then ended. Revenue growth was determined 
with reference to the restated 2011 IFRS comparative figures. These financial 
objectives were based on the assumptions noted on page 29 of the Bank's 2011 
Annual Report under the title "Key assumptions supporting the Bank's 
objectives" and excluded adjusting items related to the MRS Companies 
acquisition. The actual performance for 2012 includes results of operations of 
AGF Trust since the acquisition on August 1, 2012. However, it excludes the 
adjusting items related to the AGF Trust and MRS Companies acquisitions 
detailed in the Adjusting items section.

2012 FINANCIAL OBJECTIVES ([1])                                   

(Excluding adjusting items)                                       
                                       2012 OBJECTIVES   2012 RESULTS  
                                                                  

Revenue growth                                   > 5 %         8    %

Adjusted efficiency ratio( [1])           73 % to 70 %      73.1    %

Adjusted return on common               11.0% to 13.5%      12.0    %
shareholders' equity( [1])

Adjusted diluted earnings per share(  $ 4.80 to $ 5.40    $ 4.98     
[1])

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

The Bank met its revenue growth, adjusted return on common shareholders' 
equity and adjusted diluted earnings per share objectives for the year 2012 
and posted, for the sixth year in a row, a record profitability level.

This overall satisfactory performance resulted, in part, from increased net 
interest income due to strong organic and acquisition-related loan and deposit 
growth year-over-year. Higher other income from the MRS Companies' investment 
accounts, as well as the excellent credit quality of the Bank's loan portfolio 
throughout the year also contributed significantly to the attainment of the 
objectives.

Analysis of Consolidated Results

CONSOLIDATED                                                     
RESULTS
                FOR THE THREE MONTHS ENDED        FOR THE YEAR ENDED  
                  OCTOBER               OCTOBER      OCTOBER    OCTOBER
                       31    JULY 31         31           31         31

 In
thousands of
Canadian
dollars,             2012       2012       2011         2012       2011
except per
share
amounts
(Unaudited)
                                                                 

Net interest    $ 142,411  $          $            $          $        
income                       129,664    126,391      531,028    504,485

Other income       67,985     64,169     56,031      265,615    233,862

Total             210,396    193,833    182,422      796,643    738,347
revenue

Gain on
acquisition
and
amortization
of net
premium
on purchased
financial
instruments        23,795          -          -       23,795          -

Provision
for loan            8,000      7,500     12,999       33,000     51,080
losses

Non-interest      165,377    148,955    137,152      604,463    530,111
expenses

Income
before             60,814     37,378     32,271      182,975    157,156
income
taxes 

Income taxes       15,129      7,380      5,562       42,467     33,439

Net income      $  45,685  $  29,998  $  26,709    $          $        
                                                     140,508    123,717

Preferred
share
dividends,          3,273      3,164      3,111       12,768     12,436
including
applicable
taxes

Net income
available to    $  42,412  $  26,834  $  23,598    $          $        
common                                               127,740    111,281
shareholders

Earnings per                                                           
share

  Basic         $    1.51  $    1.06  $    0.99    $    4.98  $    4.65

  Diluted       $    1.51  $    1.06  $    0.99    $    4.98  $    4.65



The contribution from the MRS Companies and AGF Trust fuelled the Bank's 
earnings growth in 2012. When combined with organic growth, excluding 
adjusting items, the earnings generated by the acquired businesses more than 
offset the compressed margins stemming from the persistently low interest rate 
environment throughout the year. In addition, on the same basis, the Bank's 
earnings remained sequentially elevated in the fourth quarter of 2012 when the 
acquired business' contribution more than compensated for a seasonally low 
volume of loan prepayment revenues and higher expenses from one-time expenses 
such as B2B Bank conversion-related advertising, normal year-end adjustments 
to variable compensation, and GST/HST and capital tax adjustments.

Impact of the acquisition of AGF Trust

On August 1, 2012, B2B Bank acquired 100% of AGF Trust in a share purchase 
transaction for a cash consideration equal to the net book value of the 
company at closing of approximately $246.3 million. The agreement also 
includes a contingent consideration of a maximum of $20.0 million payable over 
five years if credit quality reaches certain criteria.

Under IFRS, the preliminary allocation of the purchase price (the difference 
between the purchase price and the fair value of assets and liabilities of AGF 
Trust) resulted in a pre-tax gain of $24.3 million ($16.4 million after income 
taxes) arising on acquisition as the estimated fair value of the net assets 
acquired, exceeded the purchase price. The gain mainly represents the 
favourable effect of the net premium to reflect current market rates on 
purchased financial instruments, which was partly offset by the estimated fair 
value of the contingent consideration, initially valued at $5.9 million. The 
purchase price allocation is based on management's best estimates of the fair 
value of the assets acquired, liabilities assumed and contingent consideration 
at the date of acquisition.

The portion of the gain resulting from the revaluation of the purchased 
financial instruments recorded as part of the gain on acquisition in the 
fourth quarter of 2012 will be amortized in net income over the estimated 
remaining term of the purchased financial instruments. The following table 
presents the expected ensuing impact on the Bank's future reported results 
that will however be excluded on an adjusted basis.

SUMMARY OF GAIN ON ACQUISITION AND EXPECTED IMPACT OF AMORTIZATION OF NET PREMIUM ON
PURCHASED FINANCIAL INSTRUMENTS
                                                                                    

For the years
ended October
31                GAIN ON
In thousands  ACQUISITION
of Canadian
dollars                         EXPECTED IMPACT OF AMORTIZATION OF NET PREMIUM ON PURCHASED
(Unaudited)                                                           FINANCIAL INSTRUMENTS
                              2012
                                (                                       2016 to
                     2012     [1])       2013       2014       2015        2022       TOTAL

Net premium
on purchased
financial
instruments    $   30,236  $ (541)  $ (4,533)  $ (5,848)  $ (6,025)  $ (13,289)  $ (30,236)

Contingent
consideration     (5,900)        -          -          -          -           -           -

Increase
(decrease) in
income
before income
taxes              24,336    (541)    (4,533)    (5,848)    (6,025)    (13,289)    (30,236)

Income taxes
(recovered)         7,954    (141)    (1,192)    (1,539)    (1,585)     (3,497)     (7,954)

Increase
(decrease) in
net income     $   16,382  $ (400)  $ (3,341)  $ (4,309)  $ (4,440)  $  (9,792)  $ (22,282)

[1] Actual amortization recorded in 2012.

The above reversal schedule could be reviewed to reflect changes in the 
expected remaining term of the purchased financial instruments, considering 
actual prepayments or other changes in expected cash flows. In addition, 
future changes in the estimated fair value of the contingent consideration 
could impact results.

Adjusting items

The Bank has designated certain amounts as adjusting items and has adjusted 
GAAP results to facilitate understanding of its underlying business 
performance and related trends. The Bank assesses performance on a GAAP basis 
and on an adjusted basis and considers both to be 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. Adjusted 
results and measures are non-GAAP measures. Comments on the uses and 
limitations of such measures are disclosed in the Non-GAAP Financial Measures 
section.

IMPACT OF ADJUSTING ITEMS, NET OF INCOME TAXES                

In thousands of
Canadian
dollars, except
per share
amounts
(Unaudited)                FOR THE THREE MONTHS ENDED        FOR THE YEAR ENDED
                            OCTOBER     JULY   OCTOBER         OCTOBER   OCTOBER
                BUSINESS         31       31        31              31        31
                                                          (
                 SEGMENT       2012     2012      2011 [2])       2012      2011
                                                                                

Impact on net
income                                                                          

Reported net
income                   $   45,685 $ 29,998 $  26,709      $  140,508 $ 123,717

Adjusting
items, net of
income taxes (
[1])                                                                            

Gain on
acquisition and
amortization of
net premium on
purchased
financial
instruments                                                                     

  Gain on
  acquisition   B2B Bank   (16,382)        -         -        (16,382)         -

  Amortization
  of net
  premium on
  purchased
  financial
  instruments   B2B Bank        400        -         -             400         -

Costs related
to business
combinations
and other( [3])                                                                 

  MRS Companies
  transaction
  and
  integration
  related costs B2B Bank      4,739    4,801     1,201          13,936     1,201

  AGF Trust
  transaction
  and
  integration
  related costs B2B Bank      1,744      454         -           2,198         -

  Compensation
  for the
  termination
  in 2012 of a
  mutual fund
  distribution
  agreement     Other             -        -     5,465               -     5,465
                            (9,499)    5,255     6,666             152     6,666

Adjusted net
income( [1])             $   36,186 $ 35,253 $  33,375      $  140,660 $ 130,383
                                                                                

Impact on
diluted
earnings per
share                                                                           

Reported
diluted
earnings per
share                    $     1.51 $   1.06 $    0.99      $     4.98 $    4.65

Adjusting items
([1])                        (0.34)     0.21      0.28               -      0.28

Adjusted
diluted
earnings per
share ([1])              $     1.17 $   1.27 $    1.26      $     4.98 $    4.93

[1] Refer to the Non-GAAP Financial Measures section.
[2] The impact of the Transaction and Integration Costs on a per share basis 
does not add due to rounding.
[3] Also referred to as Transaction and Integration Costs (T&I Costs).  

Year ended October 31, 2012 compared to year ended October 31, 2011

Net income was $140.5million, or $4.98 diluted per share, for the year ended 
October 31, 2012, compared with $123.7million, or $4.65 diluted per share, 
in 2011. Adjusted net income was up 8% year-over-year to $140.7million, 
compared with $130.4 million in 2011, while adjusted diluted net income per 
share was up $0.05 to $4.98, compared to $4.93 diluted per share, in 2011.

Total revenue

Total revenue increased $58.3 million or 8% to $796.6million for the year 
ended October 31, 2012, compared with $738.3million for the year ended 
October 31, 2011. The contribution from the MRS Companies to total revenue 
amounted to $40.1 million for the year ended October 31, 2012, and the 
contribution from AGF Trust amounted to $20.0 million, as these strategic 
acquisitions accelerated the Bank's revenue growth in 2012.

Net interest income increased to $531.0 million for the year ended October 31, 
2012, compared with $504.5million in 2011. This increase is mainly due to 
the Bank's sustained loan and deposit volume growth year-over-year, of 
respectively $1.2billion and $0.5billion from organic growth and of $3.5 
billion for loans and $3.5 billion for deposits from the acquisitions of the 
MRS Companies and AGF Trust. This was partly offset by a decrease in net 
interest margin of 13 basis points year-over-year, from 1.82% in 2011 to 1.69% 
in 2012. The compression in net interest margin resulted from the persistently 
low interest rate environment throughout the year and flatter yield curve 
affecting earnings on low cost deposits and capital funding as well as 
continued high liquidity levels.

Other income was $265.6 million for the year ended October 31, 2012, compared 
to $233.9 million in 2011, a $31.8 million or 14% year-over-year increase. 
This includes a $26.2 million contribution to other income from the 
acquisition of the MRS Companies, largely from fees related to investment 
accounts. The increase in other income is also explained by higher income from 
brokerage operations, higher fees and commissions on loans and deposits and 
higher card service revenues year-over-year. These increases were partly 
offset by a lower contribution from credit insurance activities resulting from 
a higher level of claims in the first half of the year and lower income from 
financial market operations.

Gain on acquisition and amortization of net premium on purchased financial 
instruments

A gain on acquisition and the ensuing amortization of net premium on purchased 
financial instruments amounted to $23.8million for the year ended October 
31, 2012. This includes a $24.3 million pre-tax gain ($16.4 million after 
income taxes) resulting from the purchase price of AGF Trust, slightly offset 
by a $0.5million amortization of acquisition-related net premium on these 
financial instruments. Refer to the Impact of the acquisition of AGF Trust 
section above for further details on these items.

Provision for loan losses

The provision for loan losses amounted to $33.0 million for the year ended 
October 31, 2012 compared to $51.1 million for the year ended October 31, 
2011, a significant decrease of $18.1million or 35% year-over-year despite 
the strong increase in the Bank's loan portfolio and $3.1 million of loan 
losses associated with AGF Trust's loan portfolios. This very low level of 
losses reflects the continued excellent quality of the Bank's loan portfolios 
and considerable improvements in the commercial portfolios year-over-year. 
Losses in 2012 represented 0.14% of average loans and acceptances, down from 
0.24% in 2011. Although the Bank benefited from favourable credit conditions 
in 2012, it remains prudent in the current uncertain economic environment and 
closely monitors its loan portfolio, with a particular focus on the recently 
acquired portfolio of AGF Trust.

Non-interest expenses

Non-interest expenses totalled $604.5 million for the year ended October 31, 
2012, compared to $530.1million for the year ended October 31, 2011. 
Excluding T&I Costs of $22.0 million in 2012, and $9.0 million in 2011, and 
current operating costs related to MRS Companies of $30.1 million and AGF 
Trust of $8.3 million, non-interest expenses increased by $23.0million or 4% 
year-over-year.

Salaries and employee benefits increased by $38.0 million to $320.6 million 
compared to the year ended October31,2011. Increased headcount from the 
acquisitions of the MRS Companies and, to a lesser extent, of AGF Trust in the 
fourth quarter of 2012, accounted for $20.4 million or 54% of this increase. 
Regular salary increases and variable compensation, as well as severance 
costs, higher pension costs and expenses related to group insurance programs 
also contributed to the increase year-over-year.

Premises and technology costs increased by $11.7 million to $152.9 million 
compared to $141.2 million for the year ended October31, 2011. This increase 
is mainly due to higher rental and IT costs related to the acquisition of the 
MRS Companies and AGF Trust and increased square footage of leased premises. 
Higher IT costs related to ongoing business growth and amortization expense 
related to completed IT development projects, also accounted for the increase.

Other non-interest expenses increased by $11.7 million to $108.9 million for 
the year ended October31, 2012, from $97.3million for the same period of 
2011. Excluding the effect of the acquisitions during 2012, other non-interest 
expenses were down $1.5 million compared to last year.

T&I Costs for the year ended October31, 2012 totalled $22.0million, of 
which $19.0 million was related to the MRS Companies and $3.0 million to AGF 
Trust, compared to $9.0 million a year ago. In 2012, T&I Costs were mainly 
related to IT systems conversion, legal and communication expenses for the 
integration of the MRS Companies, as well as to severance costs and other 
transaction costs related to the acquisition of AGF Trust. B2B Bank has also 
invested a further $6.1 million to develop the IT infrastructure and upgrade 
the acquired dealer account management system. A year ago, T&I Costs were 
mainly composed of a $7.7million compensation expense for termination in 
2012 of a distribution agreement of mutual funds.

For the year ended October31, 2012, the adjusted efficiency ratio was 73.1%, 
compared with 70.6% for the year ended October31, 2011. The Bank's 8% 
revenue growth year-over-year was hampered by the overall low-interest rate 
environment and margin compression and could not fully compensate for higher 
expenses from acquired operations incurred throughout the year. The Bank 
remains nonetheless focused on materializing operating synergies to reap the 
full benefits from the integration of both the MRS Companies and AGF Trust to 
increase overall productivity and increase revenues over the next five 
quarters.

Income taxes

For the year ended October31, 2012, the income tax expense was $42.5 million 
and the effective tax rate was 23.2%. 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 foreign insurance operations. 
For the year ended October31,2011, the income tax expense was 
$33.4million and the effective tax rate was 21.3%.

Three months ended October 31, 2012 compared to three months ended October 31, 
2011

Net income was $45.7 million, or $1.51 diluted per share, for the fourth 
quarter ended October 31, 2012, compared with $26.7million, or $0.99 diluted 
per share, for the fourth quarter of 2011. Adjusted net income was up 8% 
year-over-year to $36.2million for the fourth quarter ended October 31, 
2012, compared with $33.4 million in 2011, while adjusted diluted net income 
per share was down 7% to $1.17, compared to $1.26 diluted per share, in 2011.

Total revenue

Total revenue increased $28.0 million or 15% to $210.4million in the fourth 
quarter of 2012, compared with $182.4million in the fourth quarter of 2011. 
The contribution from AGF Trust to total revenue amounted to $20.0 million for 
the fourth quarter of 2012, and the contribution from the MRS Companies 
amounted to $10.3 million, with the Bank's comparable revenue base essentially 
unchanged year-over-year.

Net interest income was up 13% to $142.4 million for the fourth quarter of 
2012, from $126.4million in the fourth quarter of 2011, as significant loan 
and deposit growth year-over-year, both organic and from acquisitions, more 
than compensated for lower margins. When compared to the fourth quarter of 
2011, margins decreased by 14 basis points to 1.62% in the fourth quarter of 
2012. During the quarter, the net interest margin continued to be adversely 
impacted by the very low interest rate environment and relatively high 
liquidity levels due to the acquisition of AGF Trust and the Bank's recent 
issuance of subordinated debt and preferred shares. In this context, the 
addition of $3.3 billion of higher-yielding loans in the AGF Trust portfolios 
provided support.

Other income totalled $68.0 million in the fourth quarter of 2012, compared to 
$56.0 million in the fourth quarter of 2011, a $12.0million or 21% 
year-over-year increase. This includes a $6.7 million contribution to other 
income from the MRS Companies, largely from investment account fees. Higher 
income from brokerage operations, higher fees and commissions on loan and 
deposits, and higher card service revenues have also contributed to the 
increase year-over-year. These increases were partly offset by lower income 
from financial market operations as well as softer net credit insurance income 
due to a higher claims.

Gain on acquisition and amortization of net premium on purchased financial 
instruments

The gain on acquisition and ensuing amortization of net premium on purchased 
financial instruments amounted to $23.8million in the fourth quarter of 
2012, as noted above.

Provision for loan losses

The provision for loan losses decreased by $5.0 million or 38% to $8.0 million 
in the fourth quarter of 2012, including a $3.1million provision related to 
the acquired AGF Trust portfolio, from $13.0million in the fourth quarter of 
2011. This significant improvement reflects continued excellent credit 
conditions in the Canadian market and the quality of the Bank's loan 
portfolios, as well as a continued prudent approach to loan provisioning. In 
addition, during the fourth quarter of 2012, favourable settlements and 
overall improvements led to a net credit of $2.0 million in loan losses in the 
real estate and commercial loan portfolios.

Non-interest expenses

Non-interest expenses totalled $165.4 million for the fourth quarter of 2012, 
compared to $137.2million for the fourth quarter of 2011. Non-interest 
expenses during the fourth quarter of 2012 include T&I Costs of $8.8 million 
and operating expenses related to the MRS Companies of $8.8million and to 
AGF Trust of $8.3million while non-interest expenses in the fourth quarter 
of 2011 included T&I Costs of $9.0 million.

Salaries and employee benefits increased by $16.7 million or 24% to $87.1 
million compared to the fourth quarter of 2011, mainly due to increased 
headcount from the acquisition of the MRS Companies and AGF Trust. Salaries 
for the fourth quarter of 2012 also include a $2.5 million restructuring 
charge in the Bank's head office departments. Regular salary increases, higher 
performance-based compensation accruals and pension costs further contributed 
to the increase year-over-year.

Premises and technology costs increased by $3.7 million to $39.1 million 
compared to the fourth quarter of 2011. This increase is mainly due to rental 
and IT costs for the MRS Companies and AGF Trust, as well as additional square 
footage of leased premises and higher amortization expense related to 
completed IT development projects.

Other non-interest expenses increased by $8.0 million to $30.3 million for the 
fourth quarter of 2012, from $22.3 million for the fourth quarter of 2011. 
Other non-interest expenses of the MRS Companies and AGF Trust amounted to 
$5.5 million in the fourth quarter of 2012. The remaining increase is mainly 
attributable to higher professional service fees related to various 
initiatives, including costs incurred to initiate the process to adopt the 
internal ratings based approach under Basel II, as well as other regulatory 
compliance projects. Higher advertising expenses compared to last year, 
related to reward points and the changeover from B2B Trust to B2B Bank and 
higher GST/HST and capital taxes also contributed to the overall increase. In 
light of a slower revenue growth environment, the Bank continues to exercise 
disciplined control over expenses.

T&I Costs for the fourth quarter of 2012 totalled $8.8 million and mainly 
related to IT systems conversion and communication expenses for the 
integration of the MRS Companies and also included severance and other 
transaction costs related to AGF Trust of $2.4 million. With regards to the 
MRS Companies, the integration process is progressing according to plan, with 
significant systems conversion milestones reached during the quarter. A year 
ago, T&I Costs were mainly composed of a $7.7 million compensation expense for 
termination in 2012 of a mutual fund distribution agreement .

The adjusted efficiency ratio was 74.4% in the fourth quarter of 2012, 
compared to 70.2% in the fourth quarter of 2011. Some of the expense items in 
the quarter were non-recurring. The Bank remains nonetheless committed to 
control costs and to leverage the two recent acquisitions to increase overall 
productivity and to generate additional revenue growth from other income and 
higher margin products.

Income taxes

For the quarter ended October 31, 2012, the income tax expense was $15.1 
million and the effective tax rate was 24.9% (and 21.1% on an adjusted basis). 
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 October 31,2011, the income tax 
expense was $5.6million and the effective tax rate was 17.2% (19.1% on an 
adjusted basis). Year-over-year, the higher income tax rate for the fourth 
quarter ended October 31, 2012 results from the lower proportion of revenues 
from insurance operations and non-taxable dividends, considering the gain on 
acquisition of AGF Trust, partly offset by the 1.5% reduction in Federal 
income tax rates, effective this year.

Three months ended October 31, 2012 compared to three months ended July 31, 
2012

Net income was $45.7 million or $1.51 diluted per share for the fourth quarter 
of 2012 compared with $30.0 million or $1.06 diluted per share for the third 
quarter of 2012. Adjusted net income was $36.2million, or $1.17diluted per 
share, compared to $35.3 million or $1.27 diluted per share for the third 
quarter ended July 31,2012.

Total revenue increased to $210.4 million in the fourth quarter of 2012, from 
$193.8 million in the previous quarter. Net interest income increased by $12.7 
million or 10% sequentially to $142.4 million, as loan and deposit growth 
resulting from the acquisition of AGF Trust more than offset the sequential 
margin decrease of 4 basis points. Tighter margins, a lower seasonal volume of 
loan prepayment penalties and a relatively higher level of lower-yielding 
liquid securities explain the sequential drop in the net interest margin, 
which more than offset the increase related to AGF Trust's higher margin loans.

Other income increased by $3.8 million sequentially, largely due to higher 
income from treasury and financial markets and income from brokerage 
operations, which were favourably impacted by increased market activity 
throughout the fourth quarter.

Gain on acquisition and amortization of net premium on purchased financial 
instruments amounted to $23.8 million in the fourth quarter of 2012, which 
mainly resulted from the preliminary allocation of the purchase price of AGF 
Trust.

The provision for loan losses slightly increased to $8.0 million in the fourth 
quarter of 2012, compared to $7.5 million in the third quarter of 2012, albeit 
remaining at a very low level. During the fourth quarter, provisions of $3.1 
million on the AGFTrust loan portfolio were partly offset by recoveries and 
favourable adjustments to allowances in the commercial loan portfolios.

Non-interest expenses amounted to $165.4 million in the fourth quarter of 
2012, compared to $149.0 million in the third quarter of 2012. Excluding T&I 
Costs of $8.8 million in the fourth quarter and of $7.2 million in the third 
quarter of 2012, non-interest expenses increased by $14.7million 
sequentially, largely due to operating costs of AGF Trust and higher variable 
compensation, higher reward points, B2B Bank-related advertising coupled with 
higher GST/HST and capital taxes.

Financial condition

CONDENSED BALANCE SHEET                                   
                                     AS AT OCTOBER 31 AS AT OCTOBER 31

In thousands of Canadian dollars                 2012             2011
(Unaudited)
                                                          

ASSETS                                                    

  Cash and deposits with other banks  $       571,043  $       367,059

  Securities                                6,142,961        5,175,866

  Securities purchased under reverse          631,202          720,317
  repurchase agreements

  Loans and acceptances, net               26,663,337       21,944,394

  Other assets                                928,283          755,574
                                      $    34,936,826  $    28,963,210
                                                                      

LIABILITIES AND SHAREHOLDERS' EQUITY                                  

  Deposits                            $    24,041,443  $    20,016,281

  Other liabilities                         2,873,563        2,725,215

  Debt related to securitization            6,037,097        4,760,847
  activities

  Subordinated debt                           443,594          242,551

  Shareholders' equity                      1,541,129        1,218,316
                                      $    34,936,826  $    28,963,210



Total assets stood at $34.9 billion at October31,2012, up $6.0 billion 
from October31,2011, reflecting the continued growth in operations and the 
effect of acquisitions closed during the year. Liquid assets increased by $1.1 
billion compared to October 31, 2011 and totalled $7.3 billion at 
October31,2012, as the Bank continued to prudently manage its liquidity 
levels. In addition, the Bank strengthened its capital at the end of the year 
in light of the upcoming Basel III implementation.

Net loans and bankers' acceptances stood at $26.7 billion as at October 31, 
2012, up $4.7 billion or 21% from October31,2011. Despite intense 
competition and recent tightening of mortgage lending rules in Canada, the 
Bank generated $1.2 billion in organic growth in 2012 while the acquisition of 
the MRS Companies and AGF Trust respectively added $0.3billion and 
$3.2billion to the loan portfolio. Personal loans increased by $2.0 billion 
or 35% since October31,2011, as investment loans and home-equity lines of 
credit of $2.2 billion acquired through the MRS Companies and AGF Trust 
transactions were slightly offset by run-offs in point-of-sale financing. 
Residential mortgage loans also increased by $2.3 billion over the same 
period, including $1.2billion related to the acquisition of AGF Trust and 
$1.0 billion resulting from organic growth, reflecting the Bank's strength in 
the retail market. In addition, commercial loans, including bankers' 
acceptances, increased by $282.0million or 14% from October 31, 2011 while 
commercial mortgage loans grew by $79.8 million or 3% over the same period, 
despite loan sales of $85.2 million in 2012.

Personal deposits increased by $3.8 billion or 24% from October 31, 2011 and 
stood at $19.4 billion as at October 31,2012 including $0.7 billion 
resulting from the acquisition of the MRS Companies, $2.8 billion resulting 
from the acquisition of AGF Trust, and $0.3 billion generated from organic 
growth. Business and other deposits, which include institutional deposits, 
were up $265.7 million since October 31,2011 to $4.7 billion as at October 
31, 2012. During the fourth quarter of 2012, the Bank also issued $200.0 
million Medium Term Notes (Subordinated Indebtedness) Series 2012-1 due 
October 19, 2022.

To prudently manage capital in 2012 in light of balance sheet growth and in 
preparation for increased regulatory capital requirements, the Bank issued 
1,325,100 common shares for net proceeds of $60.9 million in early February. 
On August1,2012, a private placement of 2,867,383 common shares closed for 
net proceeds of $115.0 million to support the Bank's balance sheet considering 
the acquisition of AGF Trust. During the fourth quarter of 2012, the Bank also 
completed the issuance of 4,000,000 Series11 preferred shares for net 
proceeds of $97.7 million. When combined, these transactions provided the Bank 
with added flexibility to pursue its growth initiatives and maintain capital 
ratios well above new regulatory requirements.

Measuring performance in 2013

The following table presents the Bank's objectives for 2013.

2013 FINANCIAL OBJECTIVES (                                       
[1])

(Excluding adjusting items)                                       
                            2012 RESULTS         2013 OBJECTIVES ([2] )
                                                                  

Revenue growth                         8 %                 > 5 %       

Adjusted efficiency ratio(          73.1 %      72.5 % to 69.5 %       
[1] )

Adjusted net income (in
millions of Canadian             $ 140.7     $ 145.0 to $ 165.0        
dollars)( [1] )

Adjusted return on common           12.0 %        10.5% to 12.5%       
shareholders' equity( [1] )

Common Equity Tier 1 ratio          n.a.                 >  7.0%       

[1] Refer to the non-GAAP financial measures section.
[2] These objectives for 2013 should be read concurrently with the following 
paragraphs on key assumptions.  

Key assumptions supporting the Bank's objectives

The following assumptions are the most significant items considered in setting 
the Bank's strategic priorities and financial objectives. The Bank's 
objectives do not constitute guidance and are based on certain key planning 
assumptions. Other factors such as those detailed in the Caution Regarding 
Forward-Looking Statements and Integrated Risk Management Framework sections 
of the annual MD&A could also cause future results to differ materially from 
these objectives.

The Bank continues to be affected by the on-going economic and financial 
instability which, in Canada, is keeping interest rates at historically low 
levels. Therefore, management believes the following factors will underlie its 
financial outlook for 2013:
    --  Good organic growth to continue, particularly in our commercial
        businesses
    --  Some attrition in the acquired portfolios
    --  Compressed margin to stabilize during 2013
    --  Strategies to grow and diversify other income to be maintained
    --  Loan loss provisions to increase from 2012 low levels and as a
        result of the addition of the AGF Trust portfolios
    --  Continued cooling of the housing market, without any severe
        correction
    --  Expenses to be tightly controlled
    --  Regulatory costs to continue to rise to conform to a heightened
        regulatory environment
    --  Integration of MRS/AGF Trust to be completed in late 2013 with
        further synergies to materialize in 2014
    --  Full year dilution impact of the common share issuances
        completed in 2012

These targets exclude expected integration costs pertaining to the 
acquisitions of the MRS Companies and AGF Trust, and amortization of 
acquisition-related net premium on purchased financial instruments, as 
detailed above.

In addition, in light of heightened regulatory capital requirements coming 
into effect on January 1, 2013, management will continue to focus on its 
prudent approach to capital management and leverage on its capital 
optimization initiatives to maintain a Basel III Common Equity Tier 1 ratio 
above 7%.

Capital Management

The regulatory Tier I capital of the Bank, calculated using the Standardized 
Approach, reached $1,460.3 million as at October31, 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 
10.9% and 14.7%, respectively, as at October31, 2012, compared to 11.0% and 
13.7%, respectively, as at October31,2011 under previous Canadian GAAP. 
These ratios remain well above present minimum requirements.

Capital ratios, as at October 31, 2012, reflect the effect of various actions 
undertaken during the year such as the transition to IFRS, the acquisitions of 
the MRS Companies and AGF Trust, common share issuances as well as the 
issuance of preferred shares and subordinated debt in October.

REGULATORY CAPITAL                                                 
                            AS AT OCTOBER 31     AS AT OCTOBER 31 ([1])

In thousands of Canadian
dollars, except percentage              2012                 2011      
amounts (Unaudited)
                                                                      

Tier 1 capital (A)           $     1,460,253      $     1,217,225     

Tier I BIS capital ratio                10.9  %              11.0   % 
(A/C)

Total regulatory capital -   $     1,974,060      $     1,516,840     
BIS (B)

Total BIS capital ratio                 14.7  %              13.7   % 
(B/C)

Total risk-weighted assets   $    13,436,433      $    11,071,971     
(C)

Assets to capital multiple              16.3  x              16.2   x 

[1] The amounts are presented in accordance with previous CGAAP 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 November1, 2011, the eligible portion of the impact of 
IFRS on capital initially totalling $136.0million on a straight-line basis 
over 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 10.7% and 14.5%, respectively, 
as at October31, 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 Canada Mortgage Bonds 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 total assets.

Proposal for new capital and liquidity regulatory measures

In August 2012, OSFI issued its draft capital adequacy requirements guideline 
drawn on the BCBS new capital guidelines published in December 2010, commonly 
referred to as Basel III. In its draft guideline, 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 new minimum 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, 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 October31, 2012, stood at 7.4% when 
applying the full BaselIII 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.

Dividends

On November 8, 2012, the Board of Directors declared regular dividends on the 
various series of preferred shares to shareholders of record on December 7, 
2012. At its meeting on December 5, 2012, given the ongoing progress in the 
Bank's profitability, its confidence in the Bank's future and the solid 
balance sheet and capital ratios, the Board of Directors approved a $0.02 per 
share, or 4%, increase to the quarterly dividend on common shares and thus 
declared a dividend of $0.49 per common share, payable on February 1, 2013, to 
shareholders of record on January 3, 2012.

On December 5, 2012, the Bank announced the introduction of its Shareholder 
Dividend and Share Purchase Plan. The plan offers eligible Canadian 
shareholders of both the Bank's common shares and Class A Preferred Shares the 
opportunity to have their regular quarterly cash dividends automatically 
reinvested in additional common shares of the Bank. With regard to the above 
dividend of 0.49$ per common share declared at its meeting held on December 5, 
2012, the Board of Directors elected to issue common shares under the plan 
from treasury at a 2% discount from the average market price.

COMMON SHARE DIVIDENDS AND PAYOUT RATIO                                       
                                                                              
               FOR THE THREE MONTHS                 FOR THE YEARS ENDED       
                      ENDED

In Canadian
dollars,
except
payout      OCTOBER   JULY   OCTOBER   OCTOBER   OCTOBER   OCTOBER   OCTOBER
ratios           31     31        31        31        31        31        31  

(Unaudited)    2012   2012      2011      2012      2011      2010      2009  
                                                                              

Dividends
declared
per common               $
share        $ 0.47   0.47    $ 0.42    $ 1.84    $ 1.62    $ 1.44    $ 1.36  

Dividend
payout
ratio ([1]
[2])           31.2 % 44.2 %    42.6 %    37.0 %    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 
CGAAP.  

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-Québec        ● Laurentian Bank Securities &
                                           Capital Markets

● Real Estate & Commercial   ● Other

● B2B Bank                    

Retail & SME-Québec
                  FOR THE THREE MONTHS ENDED       FOR THE YEAR ENDED   
               OCTOBER                 OCTOBER     OCTOBER      CTOBER
                   31      JULY 31          31          31   O      31  

In thousands
of Canadian
dollars,
except
percentage
amounts
(Unaudited)       2012        2012        2011        2012        2011  
                                                                        

Net interest
income       $  75,792   $  80,163   $  80,112   $ 310,776   $ 321,578  

Other income    35,234      34,662      33,090     135,121     132,346  

Total
revenue        111,026     114,825     113,202     445,897     453,924  

Provision
for loan
losses           6,433       6,474       6,082      23,978      24,060  

Non-interest
expenses        93,359      91,107      91,352     366,994     363,825  

Income
before
income taxes    11,234      17,244      15,768      54,925      66,039  

Income taxes     1,941       3,709       3,174      11,018      14,148  

Net income   $   9,293   $  13,535   $  12,594   $  43,907   $  51,891  

Efficiency
ratio( [1])       84.1 %      79.3 %      80.7 %      82.3 %      80.2 %

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

Year ended October 31, 2012

The Retail & SME-Québec business segment's contribution to net income was 
$43.9 million in 2012, compared to $51.9million for 2011.

Total revenue decreased from $453.9 million in 2011 to $445.9 million in 2012, 
as lower net interest income more than offset growth in other income. 
Year-over-year, net interest income decreased by $10.8 million or 3% as the 
business segment's strong organic growth in loan and deposit volumes 
throughout the year did not compensate for the compressed margins resulting 
from the very low interest rate environment and the run-off of higher-margin 
point-of-sale financing loans. Other income increased by $2.8million or 2% 
to $135.1 million in 2012 from $132.3 million a year ago. Higher revenues from 
card services due to increased fees and transactional volumes, and higher fees 
on deposits were partly offset by lower credit insurance income resulting from 
higher claims.

Loan losses were down marginally to $24.0million in 2012 compared to 
$24.1million in 2011, despite a $0.8 billion or 6% increase in the loan 
portfolio year-over-year. This continued low level reflects the good credit 
quality of all loan portfolios and marked improvements in the SME and 
point-of-sale financing portfolios, which more than offset the higher losses 
on the credit card portfolio. Non-interest expenses were up marginally by $3.2 
million or less than 1%, from $363.8million in 2011 to $367.0million in 
2012 as cost control measures, including restructuring initiatives, were taken 
to mitigate the reduced level of earnings.

Three months ended October 31, 2012

The Retail & SME-Québec business segment's contribution to net income was 
$9.3 million in the fourth quarter of 2012, compared with $12.6 million in the 
fourth quarter of 2011.

Total revenue decreased from $113.2 million in the fourth quarter of 2011 to 
$111.0 million in the fourth quarter of 2012. Year-over-year, net interest 
income decreased by $4.3million, as significant growth in loan and deposit 
volumes, notably in the residential mortgage loan, home-equity lines of credit 
and SME portfolios, did not fully compensate for the decline in net interest 
margin stemming from the persistently low interest rate environment and 
run-off of the high margin point-of-sale financing loan portfolio. Other 
income increased from $33.1million in the fourth quarter of 2011 to 
$35.2million for the same period in 2012 mainly due to higher fees on 
deposits and higher revenues from card services resulting from increased 
business activity, partly offset by higher claims on credit insurance. Income 
from sales of mutual funds also contributed to the increase during the 
quarter, as the business segment leveraged its new distribution agreement of 
LBC-Mackenzie funds in its branch network.

Loan losses were up by $0.4million, from $6.1 million in the fourth quarter 
of 2011 to $6.4million in the fourth quarter of 2012. This increase reflects 
higher provisions required for the credit card portfolio, partly offset by 
lower provisions on the point-of-sale portfolio stemming from the reduced 
exposure. Non-interest expenses increased by $2.0million or 2%, from 
$91.4million in the fourth quarter of 2011 to $93.4million in the fourth 
quarter of 2012. Higher advertising costs and higher reward points expenses 
resulting from growth in card activity mainly accounted for the increase, as 
other expenses were relatively unchanged year-over-year. Non-interest expenses 
in the fourth quarter of 2012 also include a $1.0 million restructuring charge 
affecting head office departments.

Real Estate & Commercial
                FOR THE THREE MONTHS ENDED       FOR THE YEAR ENDED    
              OCTOBER               OCTOBER
                   31    JULY 31         31   OCTOBER 31   OCTOBER 31  

In thousands
of Canadian
dollars,
except
percentage
amounts
(Unaudited)      2012       2012       2011         2012         2011  
                                                                       

Net interest
income       $ 21,833   $ 21,731   $ 22,105     $ 87,825     $ 90,656  

Other income    7,646      8,327      8,956       34,430       33,738  

Total
revenue        29,479     30,058     31,061      122,255      124,394  

Provision
for loan
losses        (2,040)        436      3,982        3,002       22,677  

Non-interest
expenses        8,586      7,756      8,293       31,582       30,211  

Income
before
income taxes   22,933     21,866     18,786       87,671       71,506  

Income taxes    6,204      5,915      5,378       23,716       20,469  

Net income   $ 16,729   $ 15,951   $ 13,408     $ 63,955     $ 51,037  

Efficiency
ratio( [1])      29.1 %     25.8 %     26.7 %       25.8 %       24.3 %

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


Year ended October 31, 2012

The Real Estate & Commercial business segment's contribution to net income 
improved by $12.9 million, or 25%, to $64.0million in 2012, compared with 
$51.0 million in 2011.

Total revenue decreased by $2.1 million, from $124.4 million in 2011 to $122.3 
million in 2012. In 2012, strong growth in loan and deposit volumes, notably 
in the real estate portfolio, did not offset the effect of margin compression 
stemming from persistently low interest rates. Other income increased by $0.7 
million or 2% in 2012 reflecting the combined effect of a $3.2million gain 
on the sale of $85.2 million of commercial mortgage loans during the year, 
partly offset by lower revenue from foreign exchange operations resulting from 
a relatively stable currency environment. Loan losses were significantly lower 
at $3.0million in 2012, compared with $22.7million in 2011, a 
$19.7million or 87% decrease. This improvement includes the effect of 
favourable settlements and adjustments to individual allowances and reflects 
the overall strong health of the loan portfolios as further evidenced by a 
significantly lower level of impaired loans. Non-interest expenses increased 
by $1.4million, from $30.2million in 2011 to $31.6 million in 2012. Higher 
salaries and benefits, hiring fees and rental costs related to investments in 
the sales force and management development mainly contributed to the overall 
increase in2012.

Three months ended October 31, 2012

The Real Estate & Commercial business segment's contribution to net income 
increased by $3.3 million or 25% to $16.7million in the fourth quarter of 
2012, compared with $13.4 million in the fourth quarter of 2011.

Total revenue decreased by $1.6 million, from $31.1 million in the fourth 
quarter of 2011 to $29.5 million in the fourth quarter of 2012. This decrease 
mainly results from reduced other income due to lower underwriting fees and 
foreign exchange activity related to more stable rates. Net interest income 
was relatively unchanged compared to last year as solid loan and deposit 
growth compensated for reduced margins. Loan losses continued to improve and 
generated a net loan loss credit of $2.0million in the fourth quarter of 
2012, compared with losses of $4.0million in the fourth quarter of 2011, a 
$6.0 million year-over-year decrease. During the quarter, the business segment 
benefitted from favourable settlements and overall improvements as well as 
from continued good credit conditions in Canada. Non-interest expenses 
increased marginally to $8.6 million in the fourth quarter of 2012 compared 
with $8.3 million in the fourth quarter of 2011 essentially due to salary 
costs related to additional headcount hired to support increased business 
activity.

B2B Bank
                 FOR THE THREE MONTHS ENDED       FOR THE YEAR ENDED   
              OCTOBER                 OCTOBER     OCTOBER     OCTOBER
                   31     JULY 31          31          31          31  

In thousands
of Canadian
dollars,
except
percentage
amounts
(Unaudited)      2012        2012        2011        2012        2011  
                                                                       

Net interest
income       $ 49,821   $  32,119   $  30,475   $ 143,593   $ 117,769  

Other income    8,923       8,408       1,913      34,590       8,967  

Total
revenue        58,744      40,527      32,388     178,183     126,736  

Gain on
acquisition
and
amortization
of net
premium on
   purchased
financial
instruments    23,795           -           -      23,795           -  

Provision
for loan
losses          3,607         590       2,935       6,020       4,343  

Non-interest
expenses       35,259      22,913      15,927     106,077      64,040  

Costs
related to
business
combinations
and other (
[1])            8,830       7,157       1,349      21,997       1,349  

Income
before
income taxes   34,843       9,867      12,177      67,884      57,004  

Income taxes    9,650       2,612       3,446      18,436      16,149  

Net income   $ 25,193   $   7,255   $   8,731   $  49,448   $  40,855  

Adjusted net
income ([2]) $ 15,694   $  12,510   $   9,932   $  49,600   $  42,056  

Efficiency
ratio ([2])      75.1 %      74.2 %      53.3 %      71.9 %      51.6 %

Adjusted
efficiency
ratio ([2])      60.0 %      56.5 %      49.2 %      59.5 %      50.5 %

[1] Integration costs related to the acquisition of the MRS Companies and AGF 
Trust.
[2] Refer to the non-GAAP financial measures section.  

Year ended October 31, 2012

B2BBank business segment's contribution to adjusted net income was $49.6 
million for 2012, up $7.5 million or 18% from $42.1 million in 2011. Reported 
net income for 2012 was $49.5 million compared to $40.9 million in 2011.

Total revenue increased by $51.4 million or 41% to $178.2million in 2012, 
compared with $126.7million in 2011, essentially as a result of B2B Bank's 
strategic acquisitions of the MRS Companies and AGF Trust. Net interest income 
increased by $25.8million compared to last year, mainly due to B2B Bank's 
significant increase in loan portfolios and deposit portfolios year-over-year. 
This was partially offset by narrower margins on B2B Bank's deposit 
portfolios. Other income increased to $34.6 million, essentially as a result 
of a $26.2 million contribution from MRS-sourced fees related to investment 
accounts. The gain on acquisition and amortization of net premium on purchased 
financial instruments amounted to $23.8 million in 2012, essentially 
reflecting the preliminary allocation of the purchase price of AGF Trust.

Provision for loan losses increased from $4.3 million in 2011 to $6.0 million 
in 2012. Excluding $3.1 million of loan losses associated with AGF Trust's 
loan portfolios, loan losses decreased by 32% or $1.4 million, reflecting the 
underlying quality of B2BBank's loan portfolios.

Non-interest expenses, as shown in the table above, totalled $106.1 million in 
2012, compared to $64.0million in 2011. Excluding ongoing operating costs 
related to MRS Companies of $30.1 million and AGF Trust of $8.3million, 
non-interest expenses otherwise increased by $3.7million or 6% 
year-over-year, mainly from the effect of additional employees required to 
support non acquisition-related business activity and enhanced service levels. 
T&I Costs, included in the costs related to business combinations and other 
line item in the table above, totalled $22.0million for 2012, of which $19.0 
million was related to the MRS Companies and $3.0 million to AGF Trust, 
compared to $1.3 million a year ago. In 2012, T&I Costs were mainly related to 
IT systems conversion, legal and communication expenses for the integration of 
the MRS Companies, as well as to severance costs and other transaction costs 
related to the acquisition of AGF Trust.

With regards to the MRS Companies, the integration process is progressing 
according to plan, with significant milestones reached in 2012. Management 
remains focused on materializing all revenue and cost synergies to reap the 
full benefits from the integration of both the MRS Companies and AGF Trust to 
increase overall productivity and revenues over the next five quarters.

Three months ended October 31, 2012

B2BBank business segment's contribution to adjusted net income was $15.7 
million in the fourth quarter of 2012, up $5.8million from $9.9 million in 
the fourth quarter of 2011. Reported net income for the fourth quarter of 2012 
was $25.2million.

Total revenue increased to $58.7 million in the fourth quarter of 2012 
compared with $32.4 million in the fourth quarter of 2011. Net interest income 
increased by $19.3 million compared to last year, to $49.8 million in the 
fourth quarter of 2012, essentially as a result of business acquisitions which 
added significant loan and deposit volumes and compensated for compressed 
margins on deposits. Over the same period, other income also increased by $7.0 
million to $8.9 million in the fourth quarter of 2012 mainly as a result of 
MRS-sourced fees on investment accounts. As mentioned above, a gain on 
acquisition and amortization of net premium on purchased financial instruments 
of $23.8 million was recorded in the fourth quarter of 2012.

Loan losses increased from $2.9 million in the fourth quarter of 2011 to $3.6 
million in the fourth quarter of 2012, as a $3.1million provision related to 
the acquired AGF Trust portfolio was offset by a notable improvement in B2B 
Bank's loan portfolios.

Non-interest expenses, as shown in the table above, increased by $19.3 million 
to $35.3million in the fourth quarter of 2012, compared with $15.9million 
in the fourth quarter of 2011. This increase includes current operating costs 
of $8.8million related to the MRS Companies and of $8.3 million related to 
AGF Trust. Otherwise, expenses increased by $2.3 million or 14% 
year-over-year, due to higher salary and variable compensation as well as 
advertising and legal expenses related to B2B Trust becoming a Schedule I 
federally chartered bank under the name of B2B Bank. T&I Costs amounted to 
$8.8million for the fourth quarter of 2012, mainly related to IT systems 
conversion and communication expenses for the integration of the MRS Companies 
as well as restructuring and other transaction costs related to AGF Trust of 
$2.4 million.

Laurentian Bank Securities & Capital Markets
                 FOR THE THREE MONTHS ENDED       FOR THE YEAR ENDED   
               OCTOBER       JULY     OCTOBER     OCTOBER     OCTOBER
                    31         31          31          31          31  

In thousands
of Canadian
dollars,
except
percentage
amounts
(Unaudited)       2012       2012        2011        2012        2011  
                                                                       

Total
revenue      $  15,726   $ 13,256   $  10,389   $  59,902   $  56,353  

Non-interest
expenses        12,081     11,668      10,246      48,439      47,902  

Income
before
income taxes     3,645      1,588         143      11,463       8,451  

Income taxes       953        412          12       2,941       2,180  

Net income   $   2,692   $  1,176   $     131   $   8,522   $   6,271  

Efficiency
ratio ([1])       76.8 %     88.0 %      98.6 %      80.9 %      85.0 %

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

Year ended October 31, 2012

For the year ended October 31, 2012, the Laurentian Bank Securities & Capital 
Markets (LBS & CM) business segment's contribution to net income increased to 
$8.5 million compared to $6.3 million in 2011.

Total revenue increased by 6% from $56.4 million in 2011 to $59.9 million in 
2012, as a result of higher underwriting fees and trading income. This was 
partly offset by reduced retail brokerage income, resulting from a lower level 
of activity throughout the year. Although market conditions improved compared 
to 2011, they remained challenging in 2012 as bond market uncertainty 
persisted and small-cap equity markets were sidelined. Non-interest expenses 
increased marginally by $0.5million to $48.4 million in 2012, as a result of 
performance-based compensation accruals partly compensated by cost control 
initiatives.

Three months ended October 31, 2012

LBS & CM business segment's contribution to net income increased to $2.7 
million in the fourth quarter of 2012, compared to $0.1million in the fourth 
quarter of 2011.

Total revenue increased by $5.3 million to $15.7 million in the fourth quarter 
of 2012 compared with $10.4million for the same quarter of 2011, as 
underwriting, trading and retail brokerage activities benefited from improving 
market conditions compared to the difficult environment a year ago. 
Non-interest expenses increased by $1.8 million to $12.1 million in the fourth 
quarter of 2012, as performance-based compensation accruals were partly offset 
by other expense control and lower allocated costs.

Other Sector
                  FOR THE THREE MONTHS ENDED     FOR THE YEAR ENDED   
               OCTOBER                 OCTOBER    OCTOBER    OCTOBER
                    31     JULY 31          31         31         31  

In thousands
of Canadian
dollars
(Unaudited)       2012        2012        2011       2012       2011  
                                                                      

Net interest                                           $          $
income       $ (6,255)   $ (5,134)   $ (7,394)   (14,376)   (28,664)  

Other income     1,676         301       2,776      4,782      5,604  

Total
revenue        (4,579)     (4,833)     (4,618)    (9,594)   (23,060)  

Non-interest
expenses         7,262       8,354       2,328     29,374     15,127  

Costs
related to
business
combinations
and other (
[1] )                -           -       7,657          -      7,657  

Loss before
income taxes  (11,841)    (13,187)    (14,603)   (38,968)   (45,844)  

Income taxes
recovery       (3,619)     (5,268)     (6,448)   (13,644)   (19,507)  


                                                   $          $
Net loss     $ (8,222)   $ (7,919)   $ (8,155)   (25,324)   (26,337)   
Adjusted net                                           $          $
loss( [2])   $ (8,222)   $ (7,919)   $ (2,690)   (25,324)   (20,872)   
[1] Compensation for the termination in 2012 of a mutual fund distribution 
agreement.
[2] Refer to the non-GAAP financial measures section.   
Year ended October 31, 2012 
The Other segment posted a negative contribution to net income of $25.3 
million in 2012 compared to a negative contribution of $26.3 million in 2011. 
Excluding a compensation expense of $5.5 million (net of income taxes) for 
termination in 2012 of a mutual fund distribution agreement, adjusted negative 
contribution to net income in 2011 was $20.9million. 
Net interest income improved to negative $14.4 million in 2012, compared to 
negative $28.7 million in 2011, reflecting good market positioning as well as 
some adjustments to inter-segment transfer pricing initiated in early 2012. 
Other income in 2012 was $4.8million, compared to $5.6million for 2011 and 
essentially relates to gains on treasury activities. 
Non-interest expenses, as shown in the table above, increased by $14.2 million 
to $29.4 million in 2012. The increase was largely due to higher pension costs 
and employee benefits expenses related to group insurance programs, as well as 
to higher professional service fees related to the ongoing project to adopt 
the internal ratings based approach under Basel II and other regulatory 
compliance projects. In 2011, T&I Costs, included in the costs related to 
business combinations and other line item in the table above, related to a 
$7.7million compensation expense for termination in 2012 of a mutual fund 
distribution agreement. 
Three months ended October 31, 2012 
The Other sector posted a reported negative contribution to net income of $8.2 
million in the fourth quarter of 2012, relatively unchanged compared to a year 
ago. Adjusted negative contribution to net income in the fourth quarter of 
2011 was $2.7million. 
Net interest income improved to negative $6.3 million in the fourth quarter of 
2012, compared to negative $7.4 million in the fourth quarter of 2011, 
reflecting good market positioning. Other income for the fourth quarter of 
2012 decreased to $1.7million, compared to $2.8 million for the fourth 
quarter of 2011, due to a lower level of gains on treasury activities. 
Non-interest expenses increased by $4.9 million to $7.3 million in the fourth 
quarter of 2012, compared to $2.3 million a year ago, essentially for the same 
reasons as noted above. In the fourth quarter of 2011, T&I Costs related to a 
$7.7million compensation expense for termination in 2012 of a mutual fund 
distribution agreement. 
Non-GAAP Financial Measures 
 _____________________________________________________________________
|The Bank uses both generally accepted accounting principles (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.                                                       |
|                                                                     |
|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 certain   |
|amounts designated as adjusting items, as presented in the table in  |
|the Adjusting Items section.                                         |
|                                                                     |
|Most of the adjusting items relate to gains and expenses that arise  |
|as a result of acquisitions. The gain on acquisition and ensuing     |
|amortization of net premium on purchased financial instruments are   |
|considered adjusting items since they represent, according to        |
|management, significant non-cash adjustments and due to their        |
|non-recurrence. Transaction and integration-related costs in respect |
|of the MRS Companies and AGF Trust have been designated as adjusting |
|items due to the significance of the amounts and the fact that some  |
|of these costs have been incurred with the intent to generate        |
|benefits in future periods. The one-time compensation for the        |
|termination in 2012 of a mutual fund distribution agreement has been |
|designated as an adjusting item due to its significance and          |
|non-recurrence.                                                      |
|_____________________________________________________________________| 
About Laurentian Bank 
Laurentian Bank of Canada is a pan-Canadian banking institution that has 
nearly $35 billion in balance sheet assets and $33 billion in assets under 
administration. Founded in 1846, Laurentian Bank was selected in 2012 as one 
of the 10 winners of the Canada's Passion Capitalists program in recognition 
of its sustained success through the promotion of passion within its ranks. 
The Bank employs more than 4,200 people. 
Recognized for its excellent service, proximity and simplicity, Laurentian 
Bank serves more than one million clients in market segments in which it holds 
an enviable position. In addition to occupying a choice position among 
consumers in Québec, where it operates the third largest branch network, the 
Bank has built a solid reputation across Canada in the area of real estate and 
commercial financing thanks to its teams working out of more than 35 offices 
in Ontario, Québec, Alberta and British Columbia. Its subsidiary, B2B Bank, 
is a Canadian leader in providing banking products as well as investment 
accounts and services to financial advisors and brokers, while Laurentian Bank 
Securities is an integrated broker, widely recognized for its expertise and 
effectiveness nationwide. 
Conference Call 
Laurentian Bank invites media representatives and the public to listen to the 
conference call with financial analysts to be held at 2:00p.m. Eastern Time 
on Wednesday, December 5, 2012. The live, listen-only, toll-free, call-in 
number is 416 340-2217 or 1866 696-5910 Code1404266#. 
You can listen to the call on a delayed basis at any time from 6:00 p.m. on 
Wednesday, December 5, 2012 until 11:59 p.m. on January 5, 2013, by dialing 
the following playback number: 905 694-9451 or 1 800 408-3053 Code 7380033#. 
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 annual audited consolidated financial statements for the year ended 
October 31, 2012, including the notes to consolidated financial statements, 
are also available on the Bank's Web site at www.laurentianbank.ca. 
Consolidated Balance Sheet ([1]) 
                   AS AT OCTOBER     AS AT OCTOBER          AS AT 
                              31                31     NOVEMBER 1 
In thousands of
Canadian dollars
(Unaudited)                     2012              2011           2010 
                                                                  
ASSETS                                                                
Cash and
non-interest-bearing
deposits with other
banks                $        90,860   $        81,600   $     72,444 
Interest-bearing
deposits with other
banks                        480,183           285,459         99,394 
Securities                                                            
Available-for-sale       2,822,588         2,108,075      2,138,861 
Held-to-maturity         1,446,751           885,822        559,457 
Held-for-trading         1,873,622         2,181,969      1,496,583 
Designated as at
  fair value through
  profit or loss                   -                 -        624,642 
                       6,142,961         5,175,866      4,819,543 
Securities purchased
under reverse
repurchase
agreements                   631,202           720,317        994,674 
Loans                                                                 
Personal                 7,806,067         5,774,207      5,636,203 
Residential
  mortgage                14,169,095        11,869,412     10,859,647 
Commercial
  mortgage                 2,443,634         2,363,808      2,166,375 
Commercial and
  other                    2,150,953         1,900,977      1,691,190 
Customers'
  liabilities under
  acceptances                211,130           179,140        165,450 
                      26,780,879        22,087,544     20,518,865 
Allowances for
  loan losses              (117,542)         (143,150)      (131,567) 


                          26,663,337        21,944,394     20,387,298

Other                                                                

  Premises and
  equipment                   71,871            61,708         55,727

  Derivatives                167,643           228,261        158,066

  Goodwill                    64,077            29,224         29,224

  Software and other
  intangible assets          159,973           113,949        101,671

  Deferred tax
  assets                       4,751             4,160         47,995

  Other assets               459,968           318,272        289,289
                             928,283           755,574        681,972
                     $    34,936,826   $    28,963,210   $ 27,055,325
                                                                     

LIABILITIES AND
SHAREHOLDERS' EQUITY                                                 

Deposits                                                             

  Personal           $    19,369,310   $    15,609,853   $ 15,354,851

  Business, banks
  and other                4,672,133         4,406,428      4,250,819
                          24,041,443        20,016,281     19,605,670

Other                                                                

  Obligations
  related to
  securities sold
  short                    1,349,932         1,471,254      1,362,336

  Obligations
  related to
  securities sold
  under repurchase
  agreements                 244,039            36,770         60,050

  Acceptances                211,130           179,140        165,450

  Derivatives                100,867           129,969        115,235

  Deferred tax
  liabilities                 16,128             6,362         27,543

  Other liabilities          951,467           901,720        945,939
                           2,873,563         2,725,215      2,676,553

Debt related to
securitization
activities                 6,037,097         4,760,847      3,486,634

Subordinated debt            443,594           242,551        150,000

Shareholders' equity                                                 

  Preferred shares           303,249           205,527        205,527

  Common shares              428,526           252,601        252,472

  Share-based
  payment reserve                227               227            243

  Retained earnings          774,899           694,371        621,847

  Accumulated other
  comprehensive
  income                      34,228            65,590         56,379
                           1,541,129         1,218,316      1,136,468
                     $    34,936,826   $    28,963,210   $ 27,055,325

[1] Comparative figures have been prepared in accordance with IFRS. See Note 
30 to the audited consolidated financial statements as at October 31, 2012 for 
further details.  
Consolidated Statement of Income ([1]) 
                      FOR THE THREE MONTHS ENDED          FOR THE YEAR ENDED
                   OCTOBER                 OCTOBER       OCTOBER       OCTOBER
                        31     JULY 31          31            31            31

In thousands of
Canadian
dollars, except
per share
amounts
(Unaudited)           2012        2012        2011          2012          2011
                                                                              

Interest income                                                               

  Loans          $ 280,762   $ 248,073   $ 241,963   $ 1,014,861   $   962,820

  Securities        17,250      16,802      18,797        71,320        74,059

  Deposits with
  other banks        1,544       2,304       1,084         6,148         5,277

  Other,
  including
  derivatives       14,529      14,457      15,752        59,240        61,345
                   314,085     281,636     277,596     1,151,569     1,103,501

Interest expense                                                              

  Deposits         124,926     108,394     110,069       445,646       444,463

  Debt related
  to
  securitization
  activities        43,809      40,891      38,552       163,880       140,743

  Subordinated
  debt               2,654       2,408       2,432         9,839        11,574

  Other,
  including
  derivatives          285         279         152         1,176         2,236
                   171,674     151,972     151,205       620,541       599,016

Net interest
income             142,411     129,664     126,391       531,028       504,485

Other income                                                                  

  Fees and
  commissions on
  loans and
  deposits          30,263      31,522      29,333       119,953       115,006

  Income from
  brokerage
  operations        14,386      12,517       8,332        54,806        48,429

  Income from
  registered
  self-directed
  plans              7,440       7,190       1,505        29,079         7,253

  Income from
  sales of
  mutual funds       4,731       4,478       4,258        18,026        17,308

  Income from
  treasury and
  financial
  market   
  operations         4,563       2,398       5,897        17,531        20,938

  Credit
  insurance
  income             4,415       3,682       4,994        15,529        18,591

  Other income       2,187       2,382       1,712        10,691         6,337
                    67,985      64,169      56,031       265,615       233,862

Total revenue      210,396     193,833     182,422       796,643       738,347

Gain on
acquisition and
amortization of
   net premium
on purchased
financial
instruments         23,795           -           -        23,795             -

Provision for
loan losses          8,000       7,500      12,999        33,000        51,080

Non-interest
expenses                                                                      

  Salaries and
  employee
  benefits          87,112      77,177      70,431       320,603       282,630

  Premises and
  technology        39,111      38,644      35,375       152,919       141,212

  Other             30,324      25,977      22,340       108,944        97,263

  Costs related
  to business
  combinations
  and other          8,830       7,157       9,006        21,997         9,006
                   165,377     148,955     137,152       604,463       530,111

Income before
income taxes        60,814      37,378      32,271       182,975       157,156

Income taxes        15,129       7,380       5,562        42,467        33,439

Net income       $  45,685   $  29,998   $  26,709   $   140,508   $   123,717

Preferred share
dividends,
including
applicable taxes     3,273       3,164       3,111        12,768        12,436

Net income
available to
common
shareholders     $  42,412   $  26,834   $  23,598   $   127,740   $   111,281

Average number
of common shares
outstanding (in
thousands)                                                                    

  Basic             28,118      25,250      23,925        25,634        23,924

  Diluted           28,135      25,267      23,941        25,652        23,943

Earnings per
share                                                                         

  Basic          $    1.51   $    1.06   $    0.99   $      4.98   $      4.65

  Diluted        $    1.51   $    1.06   $    0.99   $      4.98   $      4.65

Dividends
declared per
share                                                                         

  Common share   $    0.47   $    0.47   $    0.42   $      1.84   $      1.62

  Preferred
  share - Series
  9              $    0.38   $    0.38   $    0.38   $      1.50   $      1.50

  Preferred
  share - Series
  10             $    0.33   $    0.33   $    0.33   $      1.31   $      1.31

  Preferred
  share - Series
  11             $      -        n.a.        n.a.    $        -          n.a. 

[1] Comparative figures have been prepared in accordance with IFRS. See Note 
30 to the audited consolidated financial statements as at October 31, 2012 for 
further details.   
Consolidated Statement of Comprehensive Income ([1]) 
                          FOR THE THREE MONTHS ENDED        FOR THE YEAR ENDED
                       OCTOBER                 OCTOBER      OCTOBER      OCTOBER
                            31     JULY 31          31           31           31

In thousands of
Canadian dollars
(Unaudited)               2012        2012        2011         2012         2011
                                                                                

Net income           $  45,685   $  29,998   $  26,709   $  140,508   $  123,717
                                                                                

Other comprehensive
income, net of
income taxes                                                                    

  Unrealized net
  gains (losses) on
  available-for-sale
  securities               307     (2,714)     (3,974)      (7,641)     (11,810)

  Reclassification
  of net (gains)
  losses on
  available-for-sale
  securities to net
  income                 (831)       (334)       (617)      (2,374)      (3,045)

  Net change in
  value of
  derivatives
  designated as cash
  flow hedges          (3,577)      13,774      21,514     (21,347)       24,066
                       (4,101)      10,726      16,923     (31,362)        9,211

Comprehensive income $  41,584   $  40,724   $  43,632   $  109,146   $  132,928

[1] Comparative figures have been prepared in accordance with IFRS. See Note 
30 to the audited consolidated financial statements as at October 31, 2012 for 
further details.

Consolidated Statement of Changes in Shareholders' Equity ([1]) 
                                                                           FOR THE YEAR ENDED OCTOBER 31, 2012
                                                                     AOCI RESERVES          
                                                                                           SHARE-


                                                    AVAILABLE-                          BASED       TOTAL
In thousands of        PREFERRED             RETAINED                   CASH               PAYMENT     SHARE-Canadian dollars                   COMMON                FOR-SALE       FLOW                         HOLDERS'
(Unaudited)               SHARES    SHARES   EARNINGS   SECURITIES     HEDGES      TOTAL   RESERVE      EQUITY 


                                                                                                              

Balance as at
October 31, 2011     $   205,527 $ 252,601 $  694,371 $     22,216 $   43,374 $   65,590 $     227 $ 1,218,316

Net income                                    140,508                                                  140,508

Other comprehensive
income (net of
income taxes)                                                                                                 

Unrealized net gains
(losses) on
available-for-sale
securities                                                 (7,641)               (7,641)               (7,641)

  Reclassification
  of net (gains)
  losses on
  available-for-sale
  securities to net
  income                                                   (2,374)               (2,374)               (2,374)

  Net change in
  value of
  derivatives
  designated as cash
  flow hedges                                                        (21,347)   (21,347)              (21,347)

Comprehensive income                          140,508     (10,015)   (21,347)   (31,362)               109,146

Net proceeds from
issuance of new
common shares             97,722   175,925                                                             273,647

Equity dividends                                                                                              

Preferred shares,
including applicable
taxes                                        (12,768)                                                 (12,768)

Common shares                                (47,212)                                                 (47,212)

Balance as at
October 31, 2012     $   303,249 $ 428,526 $  774,899 $     12,201 $   22,027 $   34,228 $     227 $ 1,541,129
                                                                                                              
                                                                           FOR THE YEAR ENDED OCTOBER 31, 2011
                                                                     AOCI RESERVES                    


                                                                                        SHARE-       TOTAL
In thousands of                                         AVAILABLE-       CASH                BASED      SHARE-Canadian dollars       PREFERRED    COMMON   RETAINED     FOR-SALE       FLOW              PAYMENT    HOLDERS'
(Unaudited)               SHARES    SHARES   EARNINGS   SECURITIES     HEDGES      TOTAL   RESERVE      EQUITY 
                                                                                                           
Balance as at
November 1, 2010     $   205,527 $ 252,472 $  621,847 $     37,071 $   19,308 $   56,379 $     243 $ 1,136,468 
Net income                                    123,717                                                  123,717 
Other comprehensive
income (net of
income taxes)                                                                                                  
Unrealized net
  gains (losses) on
  available-for-sale
  securities                                              (11,810)              (11,810)              (11,810) 
Reclassification
  of net (gains)
  losses on
  available-for-sale
  securities to net
  income                                                   (3,045)               (3,045)               (3,045) 
Net change in
  value of
  derivatives
  designated as cash
  flow hedges                                                          24,066     24,066                24,066 
Comprehensive income                          123,717     (14,855)     24,066      9,211               132,928 
Issuance of common
shares under share
purchase option plan                   129                                                                 129 
Share-based payments                                                                          (16)        (16) 
Equity dividends                                                                                               
Preferred shares,
  including
  applicable taxes                           (12,436)                                                 (12,436) 
Common shares                              (38,757)                                                 (38,757) 
Balance as at
October 31, 2011     $   205,527 $ 252,601 $  694,371 $     22,216 $   43,374 $   65,590 $     227 $ 1,218,316 
[1] Comparative figures have been prepared in accordance with IFRS. See Note 
30 to the audited consolidated financial statements as at October 31, 2012 for 
further details. 
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 
SOURCE: LAURENTIAN BANK OF CANADA 
To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/December2012/05/c4077.html 
CO: LAURENTIAN BANK OF CANADA
ST: Quebec
NI: FIN ERN DIV CONF  
-0- Dec/05/2012 14:10 GMT
 
 
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