BUZZ-Laurentian Bank of Canada dips as lending volumes remain challenged

** Shares of Laurentian Bank of Canada LB.TO fall as much as 3.9%, last down 2.4% at C$26.32

** LB posts Q3 interest income of C$180.8 mln ($134.1 mln), down C$11.4 million compared to a year earlier, hurt by lower commercial loan volumes

** Scotiabank analyst Meny Grauman says LB's revenue continues to be pressured by shrinking loan balances

** Adds that LB's turnaround remains fraught with significant challenges and continues to be a show-me story

** In May, Laurentian Bank unveiled its plan to streamline its business under its revamped strategic plan

** Cormark Securities says the results were more than expected as clients remain hesitant given the challenging macroeconomic backdrop

** Brokerage adds that there is reason to move off its pessimistic view on LB this quarter until there is credible evidence of a turnaround in its performance

** As of last close, LB shares were down 3.3% YTD

($1 = 1.3478 Canadian dollars)

(Reporting by Arasu Kannagi Basil in Bengaluru)

((ArasuKannagi.Basil@thomsonreuters.com;))