LAURENTIAN SLASHES DIVIDEND

Laurentian Bank of Canada shares plunged as much as 20 per cent after the company slashed its quarterly dividend in the first payout cut by a large Canadian lender in almost three decades. The Montreal-based regional bank chopped its dividend by 27 cents to 40 cents, a 40 per cent reduction. The move came as Laurentian posted fiscal second-quarter results Friday that missed analysts’ estimates, the result of higher provisions for loan losses to brace for the financial impacts of the coronavirus pandemic. Citing the “highly uncertain economic environment,” Laurentian said it cut the payout “to provide greater financial strength and flexibility to support continued growth” and “the pursuit of the bank’s strategic plan.” The last time a major Canadian bank reduced its dividend was in 1992, a move made by Montreal-based National Bank of Canada.