Laurentian Bank of Canada
TSX:LB
Laurentian Bank of Canada
Laurentian Bank of Canada engages in the provision of financial services. The company is headquartered in Montreal, Quebec and currently employs 2,800 full-time employees. The Bank operates primarily across Canada and in the United States. Its segments include Personal segment, Business Services segment and Capital Markets segment. The Personal segment caters to the financial needs of retail clients. Clients can access the Bank's offering of financial advice, products and services through a network of branches in Quebec referred to as Financial Clinics; an advisors and brokers channel targeting independent financial intermediaries, and a digital direct-to-customer platform. The Business Services segment caters to the financial needs of business clients across Canada and in the United States and provides commercial banking, real estate financing, and equipment and inventory financing. The Capital Markets segment provides a range of services, including research, market analysis and advisory services, corporate underwriting for debt and equity, and administrative services.
Revenue: Laurentian Bank reported Q2 revenue of $242.5 million, down 4% year-over-year and 3% quarter-over-quarter.
Profitability: Adjusted EPS was $0.73, down 19% year-over-year and 6% sequentially; adjusted net income was $34 million, down 16% year-over-year.
Efficiency Ratio: The adjusted efficiency ratio rose to 75.2%, reflecting ongoing technology investments; elevated expense levels are expected through year-end.
Loan Growth: Commercial loans grew 1% quarter-over-quarter and now represent 49% of the loan portfolio; inventory financing utilization increased slightly to 46%.
Credit Quality: The loan portfolio remains resilient, with allowances for credit losses stable and credit performance described as strong.
Capital Position: The CET1 ratio increased to 11%, above the bank's 10% target and expected to remain elevated for the year.
Guidance: Management anticipates a seasonal loan book decline in Q3, slight revenue increase, and efficiency ratio in the mid-70s for the full year.
Strategy: Continued focus on commercial banking growth and technology modernization, with expectations for efficiency gains in 2026.
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