The financial
information reported herein is based on the condensed interim
consolidated (unaudited) information for the three-month period
ended April 30, 2024 and has been prepared in accordance with
International Financial Reporting standards (IFRS), as issued by
the International Accounting Standards Board (IASB). All amounts
are denominated in Canadian dollars. The Laurentian Bank of Canada
and its entities are collectively referred to as "Laurentian Bank"
or the "Bank" and provide deposit, investment, loan, securities,
trust and other products or services.
|
MONTREAL, May 31, 2024
/CNW/ - Laurentian Bank of Canada
reported a net loss of $117.5 million
and a diluted loss per share of $2.71
for the second quarter of 2024, compared with net income of
$49.3 million and diluted earnings
per share of $1.11 for the second
quarter of 2023. Return on common shareholders' equity was a
negative 18.6% for the second quarter of 2024, compared with 7.7%
for the second quarter of 2023. Of note, reported results for the
second quarter of 2024 included impairment and restructuring
charges of $196.8 million
($155.6 million after income taxes),
or $3.56 per share, related to the
restructuring of the Bank's operations and to the impairment of the
Personal and Commercial (P&C) Banking segment. Refer to the
Non-GAAP Financial and Other Measures section and to the Business
Highlights section for further details. Adjusted net
income(1) was $40.5 million and adjusted diluted earnings
per share(2) were $0.90
for the second quarter of 2024, compared with $51.7 million and $1.16 for the second quarter of 2023. Adjusted
return on common shareholders' equity(2) was 6.1% for
the second quarter of 2024, compared with 8.1% a year ago.
For the six months ended April 30,
2024, net loss was $80.3
million and diluted loss per share were $1.97, compared with net income of $101.2 million and diluted earnings per share of
$2.20 for the six months ended
April 30, 2023. Return on common
shareholders' equity was a negative 6.7% for the six months ended
April 30, 2024, compared with 7.6%
for the six months ended April 30,
2023. Of note, reported results for the six months ended
April 30, 2024 included impairment
and restructuring charges of $202.8 million ($160.1 million after income taxes), or
$3.66 per share, related to the
restructuring of the Bank's operations and to the impairment of the
P&C Banking segment. Adjusted net income(1) was
$84.7 million and adjusted
diluted earnings per share(2) were $1.80 for the six months ended April 30, 2024, compared with $106.0 million and $2.31 for the six months ended April 30, 2023. Adjusted return on common
shareholders' equity(2) was 6.1% for the six months
ended April 30, 2024, compared with
8.0% a year ago.
"The Bank maintained a strong and prudent liquidity position and
remains well capitalized in light of continuing macroeconomic
headwinds," said Éric Provost, President & CEO. "This quarter,
we further simplified our operations that demonstrates our
conviction and ability to execute on our strategic plan, as we
concentrate on our core strengths. We will also unveil our revamped
strategic plan on May 31, 2024, which will position us for
future growth as an even stronger Bank."
|
For the three months
ended
|
|
For the six months
ended
|
In millions of dollars,
except per share and percentage amounts (Unaudited)
|
April 30,
2024
|
|
April 30,
2023
|
|
Variance
|
|
April 30,
2024
|
|
April 30,
2023
|
|
Variance
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
basis
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
(117.5)
|
|
$
49.3
|
|
(338) %
|
|
$
(80.3)
|
|
$ 101.2
|
|
(179) %
|
Diluted earnings per
share
|
$
(2.71)
|
|
$
1.11
|
|
(344) %
|
|
$
(1.97)
|
|
$
2.20
|
|
(190) %
|
Return on common
shareholders' equity(2)(3)
|
(18.6) %
|
|
7.7 %
|
|
|
|
(6.7) %
|
|
7.6 %
|
|
|
Efficiency
ratio(4)
|
152.9 %
|
|
71.0 %
|
|
|
|
114.3 %
|
|
70.8 %
|
|
|
Common Equity Tier 1
(CET1) capital ratio(5)
|
10.4 %
|
|
9.3 %
|
|
|
|
10.4 %
|
|
9.3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
basis
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net
income(1)
|
$
40.5
|
|
$
51.7
|
|
(22) %
|
|
$
84.7
|
|
$ 106.0
|
|
(20) %
|
Adjusted diluted
earnings per share(2)
|
$
0.90
|
|
$
1.16
|
|
(22) %
|
|
$
1.80
|
|
$
2.31
|
|
(22) %
|
Adjusted return on
common shareholders' equity(2)(3)
|
6.1 %
|
|
8.1 %
|
|
|
|
6.1 %
|
|
8.0 %
|
|
|
Adjusted efficiency
ratio(2)
|
73.8 %
|
|
69.7 %
|
|
|
|
73.4 %
|
|
69.5 %
|
|
|
(1)
|
This is a non-GAAP
financial measure. For more information, refer to the Non-GAAP
Financial and Other Measures below and beginning on page 5 of the
Second Quarter 2024 Report to Shareholders, including the MD&A
for the period ended April 30, 2024, which pages are incorporated
by reference herein.
|
(2)
|
This is a non-GAAP
ratio. For more information, refer to the Non-GAAP Financial and
Other Measures section below and beginning on page 5 of the Second
Quarter 2024 Report to Shareholders, including the Management's
Discussion and Analysis (MD&A) for the period ended April 30,
2024, which pages are incorporated by reference herein. The
MD&A is available on SEDAR+ at www.sedarplus.ca.
|
(3)
|
Effective November 1,
2023, the Bank retrospectively adopted IFRS 17, Insurance
contracts, which required restatement of the Bank's 2023
comparative information and financial measures. Refer to
Note 2 in the Condensed Interim Consolidated Financial
Statements for further information.
|
(4)
|
This is a supplementary
financial measure. For more information, refer to the Non-GAAP
Financial below and beginning on page 5 of the Second Quarter 2024
Report to Shareholders, including the MD&A for the period ended
April 30, 2024, which pages are incorporated by reference
herein.
|
(5)
|
In accordance with the
Office of the Superintendent of Financial Institutions' (OSFI)
"Capital Adequacy Requirements" guideline.
|
Non-GAAP Financial and Other
Measures
In addition to financial measures based on generally accepted
accounting principles (GAAP), management uses non-GAAP financial
measures to assess the Bank's underlying ongoing business
performance. Non-GAAP financial measures presented throughout this
document are referred to as "adjusted" measures and exclude amounts
designated as adjusting items. Adjusting items include the
amortization of acquisition-related intangible assets, and certain
items of significance that arise from time to time which management
believes are not reflective of underlying business performance.
Non-GAAP financial measures are not standardized financial measures
under the financial reporting framework used to prepare the
financial statements of the Bank and might not be comparable to
similar financial measures disclosed by other issuers. The Bank
believes non-GAAP financial measures are useful to readers in
obtaining a better understanding of how management assesses the
Bank's performance and in analyzing trends.
The following tables show a reconciliation of the non-GAAP
financial measures to their most directly comparable financial
measure that is disclosed in the primary financial statements of
the Bank.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES —
CONSOLIDATED STATEMENT OF INCOME
|
For the three months
ended
|
|
For the six months
ended
|
In thousands of dollars
(Unaudited)
|
April 30
2024
|
|
January 31
2024
|
|
April 30
2023
|
|
April 30
2024
|
|
April 30
2023
|
|
|
|
|
|
|
|
|
|
|
Non-interest
expenses
|
$
386,341
|
|
$ 197,834
|
|
$ 182,472
|
|
$
584,175
|
|
$ 366,147
|
|
|
|
|
|
|
|
|
|
|
Less: Adjusting items,
before income taxes
|
|
|
|
|
|
|
|
|
|
P&C Banking segment
impairment charges(1)
|
155,933
|
|
—
|
|
—
|
|
155,933
|
|
—
|
Restructuring and other
impairment charges(2)
|
40,832
|
|
6,076
|
|
—
|
|
46,908
|
|
—
|
Amortization of
acquisition-related intangible assets(3)
|
3,229
|
|
3,217
|
|
3,221
|
|
6,446
|
|
6,431
|
|
199,994
|
|
9,293
|
|
3,221
|
|
209,287
|
|
6,431
|
Adjusted
non-interest expenses
|
$
186,347
|
|
$ 188,541
|
|
$ 179,251
|
|
$
374,888
|
|
$ 359,716
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
$
(151,678)
|
|
$
43,609
|
|
$
58,526
|
|
$
(108,069)
|
|
$ 119,487
|
|
|
|
|
|
|
|
|
|
|
Adjusting items, before
income taxes (detailed above)
|
199,994
|
|
9,293
|
|
3,221
|
|
209,287
|
|
6,431
|
Adjusted income
before income taxes
|
$
48,316
|
|
$
52,902
|
|
$
61,747
|
|
$
101,218
|
|
$ 125,918
|
|
|
|
|
|
|
|
|
|
|
Reported net income
(loss)
|
$
(117,547)
|
|
$
37,283
|
|
$
49,291
|
|
$
(80,264)
|
|
$ 101,201
|
|
|
|
|
|
|
|
|
|
|
Adjusting items, net of
income taxes
|
|
|
|
|
|
|
|
|
|
P&C Banking segment
impairment charges(1)
|
125,629
|
|
—
|
|
—
|
|
125,629
|
|
—
|
Restructuring and other
impairment charges(2)
|
30,020
|
|
4,468
|
|
—
|
|
34,488
|
|
—
|
Amortization of
acquisition-related intangible assets(3)
|
2,410
|
|
2,402
|
|
2,393
|
|
4,812
|
|
4,779
|
|
158,059
|
|
6,870
|
|
2,393
|
|
164,929
|
|
4,779
|
Adjusted net
income
|
$
40,512
|
|
$
44,153
|
|
$
51,684
|
|
$
84,665
|
|
$ 105,980
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
available to common shareholders
|
$
(118,835)
|
|
$
32,682
|
|
$
48,003
|
|
$
(86,153)
|
|
$
95,312
|
|
|
|
|
|
|
|
|
|
|
Adjusting items, net of
income taxes (detailed above)
|
158,059
|
|
6,870
|
|
2,393
|
|
164,929
|
|
4,779
|
Adjusted net income
available to common shareholders
|
$
39,224
|
|
$
39,552
|
|
$
50,396
|
|
$
78,776
|
|
$ 100,091
|
(1)
|
The Personal and
Commercial (P&C) Banking segment impairment charges related to
the impairment of the P&C Banking segment as part of the
goodwill impairment test performed as at April 30, 2024.
|
(2)
|
Restructuring and other
impairment charges resulted from the Bank's decision to suspend the
Advanced Internal-Ratings Based (AIRB) approach to credit risk
project and to reduce its leased corporate office premises in
Toronto, as well as from the simplification of the Bank's
organizational structure and headcount reduction. Restructuring and
other impairment charges were mainly comprised of impairment
charges and severance charges and were included in the Impairment
and restructuring charges line item.
|
(3)
|
Amortization of
acquisition-related intangible assets results from business
acquisitions and is included in the Non-interest expenses line
item.
|
|
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
— CONSOLIDATED BALANCE SHEET
|
For the three months
ended
|
|
For the six months
ended
|
In thousands of dollars
(Unaudited)
|
April 30
2024
|
|
January 31
2024
|
|
April 30
2023
|
|
April 30
2024
|
|
April 30
2023
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity(1)
|
$
2,744,758
|
|
$
2,886,490
|
|
$
2,845,278
|
|
$
2,744,758
|
|
$
2,845,278
|
|
|
|
|
|
|
|
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
Preferred
shares
|
(122,071)
|
|
(122,071)
|
|
(122,071)
|
|
(122,071)
|
|
(122,071)
|
Limited recourse
capital notes
|
(123,487)
|
|
(123,487)
|
|
(123,516)
|
|
(123,487)
|
|
(123,516)
|
Cash flow hedge
reserve(2)
|
(9,140)
|
|
(25,535)
|
|
(32,591)
|
|
(9,140)
|
|
(32,591)
|
Common shareholders'
equity(1)
|
$
2,490,060
|
|
$
2,615,397
|
|
$
2,567,100
|
|
$
2,490,060
|
|
$
2,567,100
|
|
|
|
|
|
|
|
|
|
|
Impact of averaging
month-end balances(3)
|
104,149
|
|
(7,616)
|
|
(24,981)
|
|
111,010
|
|
(36,279)
|
Average common
shareholders' equity(1)
|
$
2,594,209
|
|
$
2,607,781
|
|
$
2,542,119
|
|
$
2,601,070
|
|
$
2,530,821
|
(1)
|
Effective November 1,
2023, the Bank retrospectively adopted IFRS 17, Insurance
contracts, which required restatement of the Bank's 2023
comparative information and financial measures. Refer to
Note 2 in the Condensed Interim Consolidated Financial
Statements for further information.
|
(2)
|
The cash flow hedge
reserve is presented in the Accumulated other comprehensive income
line item.
|
(3)
|
Based on the month-end
balances for the period.
|
Business Highlights
Revamped Strategic Plan
In April 2024, the Bank announced
that it will unveil its revamped strategic plan on May 31, 2024. In the second quarter of 2024, the
Bank recorded impairment and restructuring charges of $196.8 million ($155.6 million after income taxes), or
$3.56 diluted per share. The impact
of these impairment and restructuring charges on the Bank's Common
Equity Tier 1 capital ratio was a decrease of 8 basis points.
Personal and Commercial Banking segment
impairment
As at April 30, 2024, indicators
of potential impairment were identified for the Bank's assets,
which led management to perform a goodwill impairment test as at
April 30, 2024 for the P&C
Banking segment. As a result of this test, the Bank recorded an
impairment charge in the second quarter of 2024 on the value of its
P&C Banking segment of $155.9 million detailed as follows: 1)
goodwill for an amount of $83.9 million, 2) software and intangible
assets for $66.2 million and, 3)
premises and equipment for $5.8 million.
Refer to the Critical accounting and estimates section on
page 21 of the Bank's MD&A for the second quarter of 2024
and to Notes 7 and 17 to the Condensed Interim Consolidated
Financial Statements for additional information.
Suspension of the advanced-internal ratings-based (AIRB)
approach to credit risk project
In the current context of its revamped strategic plan and
priorities, the Bank has made the decision to suspend the AIRB
project and to focus on the priorities of its revamped strategic
plan to generate additional revenue, or efficiency gains. As a
result, the Bank recorded an impairment charge of $23.3 million in the second quarter of 2024
related to AIRB intangible assets that were still under
development.
Reduction of leased corporate office premises
Since 2021, the Bank has adopted a hybrid work model. With an
objective of maximizing shareholder value, increasing efficiency
and simplifying our organization, the Bank has made the decision to
reduce by two-thirds its leased corporate office premises in
Toronto. As a result of this
planned reduction, the Bank recorded charges of $13.2 million in the second quarter of 2024
mainly related to the impairment of its premises. This will not
impact the Bank's headquarters in Montreal, our Burlington corporate offices, or our branch
footprint.
Organizational changes
In line with the Bank's priorities of becoming a simpler and
more customer-centric organization, the Bank continued the
simplification of its organizational structure. As a result, the
Bank recorded severance charges of $2.9 million in the second quarter of 2024
and expects to record additional charges of approximately
$7 million in the third quarter of 2024.
Other Business Highlights
Sale of assets under administration of Laurentian Bank
Securities' retail full-service investment broker
division
On April 4, 2024, the Bank
announced that it has entered into an agreement to sell assets
under administration of Laurentian Bank Securities' retail
full-service investment broker division to iA Private Wealth Inc.
(iAPW), a wholly owned subsidiary of Industrial Alliance Insurance
and Financial Services Inc. ("iA Financial Group"). iA Financial
Group is one of the largest insurance and wealth management groups
in Canada, headquartered in
Quebec, and with operations in
the United States.
This transaction includes the transfer of approximately
$2 billion in assets under
administration from Laurentian Bank Securities to iAPW. The
transaction is anticipated to close this summer, subject to
required regulatory approvals. Net proceeds from the transaction
are not expected to be material to the Bank.
The transaction supports the Bank's strategic focus on
simplification, and concentrating on areas of business where it can
win and be more competitive.
Key executive changes
On April 2, 2024, the Bank
announced that Kelsey Gunderson,
Executive Vice President & Head of Capital Markets, would leave
the Bank on April 12, 2024, to pursue
personal interests prior to establishing the next path in his
professional journey. Brian Doyle,
previously Chief Financial Officer of Capital Markets, now serves
as Acting Head of Capital Markets and Acting President & Chief
Executive Officer of Laurentian Bank Securities Inc.
On May 23, 2024, the Bank
announced the retirement of William
Mason, Executive Vice President and Chief Risk Officer,
effective later this year. Christian De
Broux will succeed him as Chief Risk Officer starting
June 17, 2024. Mr. De Broux,
returning to Laurentian Bank, brings extensive experience and a
deep understanding of the bank's operations, having been involved
in major strategic initiatives previously. Mr. Mason will stay on
as Special Advisor to support Mr. De Broux during the
transition.
Consolidated Results
Three months ended April 30,
2024 financial performance
Net loss was $117.5 million and
diluted loss per share was $2.71 for
the second quarter of 2024, compared with net income of
$49.3 million and diluted
earnings per share of $1.11 for
the second quarter of 2023. Adjusted net income was $40.5 million and adjusted diluted earnings
per share were $0.90 for the second
quarter of 2024, compared with $51.7 million and $1.16 for the second quarter of 2023.
Total revenue
Total revenue decreased by $4.6 million to $252.6 million for the second quarter of 2024,
compared with $257.2 million
for the second quarter of 2023.
Net interest income decreased by $4.6 million to $179.6
million for the second quarter of 2024, compared with
$184.2 million for the second
quarter of 2023. The decrease was mainly due to lower net interest
income from lower loan volumes. The net interest margin was 1.80%
for the second quarter of 2024, unchanged compared with the second
quarter of 2023.
Other income was $73.0 million for the second
quarter of 2024, unchanged compared with the second quarter of
2023. Higher income from financial instruments in the second
quarter of 2024 was mostly offset by lower lending fees due to
tempered commercial real estate activity and lower income from
mutual funds.
Provision for credit losses
The provision for credit losses was $17.9 million for the
second quarter of 2024, compared with $16.2
million for the second quarter of 2023, an increase of
$1.8 million mainly as a result
of higher provisions on impaired loans due to credit migration,
partly offset by a release of provisions on performing loans. The
provision for credit losses as a percentage of average loans and
acceptances was 20 basis points for the quarter, compared with 18
basis points for the same quarter a year ago. Refer to the
"Credit risk management" section on pages 15 to 17 of the Bank's
MD&A for the second quarter of 2024 and to Note 5 to the
Condensed Interim Consolidated Financial Statements for more
information on provision for credit losses and allowances for
credit losses.
Non-interest expenses
Non-interest expenses amounted to $386.3
million for the second quarter of 2024, an increase of
$203.9 million compared with the
second quarter of 2023. Of note, reported results for the second
quarter of 2024 included impairment and restructuring charges of
$196.8 million related to the
restructuring of the Bank's operations and to the impairment of the
P&C Banking segment. Adjusted non-interest expenses increased
by $7.1 million or 4% to
$186.3 million for the second quarter
of 2024, compared with $179.3 million for the second quarter of
2023.
Salaries and employee benefits amounted to
$99.5 million for the second quarter
of 2024, a decrease of $1.3 million
compared with the second quarter of 2023, mostly due to
efficiency gains resulting from reduced headcount and lower
employee benefits.
Premises and technology costs were $50.1 million for the second quarter of 2024, an
increase of $1.6 million compared
with the second quarter of 2023. The increase year-over-year is
mainly due to increased amortization charges resulting from
recently completed projects.
Other non-interest expenses were $40.0 million for the second quarter of 2024, an
increase of $6.8 million compared
with the second quarter of 2023 mainly resulting from higher
regulatory expenses and other costs related to various compliance
projects, as well as higher expenses to support the Bank's
strategic priorities.
Impairment and restructuring charges were
$196.8 million for the second quarter
of 2024, compared with nil for the second quarter of 2023. In
the second quarter of 2024, the impairment test of the P&C
Banking segment resulted in impairment charges of $155.9 million. Restructuring and other
impairment charges of $40.8 million
were also recorded following the Bank's decision to suspend the
AIRB project and to reduce its leased corporate office premises in
Toronto, as well as from the
simplification of the Bank's organizational structure and headcount
reduction. Refer to the Business Highlights section on page 7
of the Bank's MD&A for the second quarter of 2024 for further
details.
Efficiency ratio
The efficiency ratio on a reported basis increased to 152.9% for
the second quarter of 2024, compared with 71.0% for the second
quarter of 2023 The increase year-over-year is mainly due to the
impairment and restructuring charges recorded in the second quarter
of 2024, as described above. The adjusted efficiency ratio
increased to 73.8% for the second quarter of 2024, compared to
69.7% for the second quarter of 2023 mainly as a result of lower
revenues and higher adjusted non-interest expenses.
Income taxes
For the second quarter of 2024, the income tax recovery was
$34.1 million, and the effective
income tax rate was 22.5%. The lower effective income tax rate
compared to the statutory income tax rate was attributed to the
non-tax deductible goodwill impairment charge, partly offset by the
lower taxation level of income from foreign operations. For the
second quarter of 2023, the income tax expense was $9.2 million, and the effective income tax
rate was 15.8%. The lower effective income tax rate compared
to the statutory income tax rate was mainly attributed to the lower
taxation level of income from foreign operations.
Financial Condition
As at April 30, 2024, total assets amounted to $48.4 billion, a 3% decrease compared with
$49.9 billion as at October 31,
2023, due to the lower level of loans and liquid assets.
Liquid assets
As at April 30, 2024, liquid assets as presented on the
balance sheet amounted to $11.0
billion, a decrease of $0.4
billion compared with $11.4
billion as at October 31, 2023. The Bank continues to
prudently manage its level of liquid assets. The Bank's funding
sources remain well diversified and sufficient to meet all
liquidity requirements. Liquid assets represented 23% of total
assets as at April 30, 2024, compared with 21% as at
October 31, 2023.
Loans
Loans and bankers' acceptances, net of allowances, stood at
$36.1 billion as at
April 30, 2024, a decrease of $0.8 billion since October 31, 2023.
Commercial loans and acceptances amounted to $17.2 billion as at April 30, 2024, a
decrease of $0.6 billion or 4%
since October 31, 2023 mainly resulting from lower real estate
commercial loans. Personal loans of $2.3 billion as at April 30, 2024
decreased by $0.3 billion from
October 31, 2023, mainly as a result of a decline in the
investment loan portfolio driven by volatile market conditions and
higher interest rates. Residential mortgage loans of $16.8 billion as at April 30, 2024
increased by $0.1 billion or 1%
from October 31, 2023.
Deposits
Deposits decreased by $1.4 billion to $24.6 billion as at April 30, 2024 compared
with $26.0 billion as at
October 31, 2023, as the Bank gradually reduced its deposit
basis considering loan volume reductions and its liquidity
position. Personal deposits stood at $21.0
billion as at April 30, 2024, a decrease of
$1.3 billion compared with
$22.3 billion as at
October 31, 2023. Of note, personal deposits sourced through
the retail channel decreased by $0.1 billion or 1% compared with
October 31, 2023. Personal notice and demand deposits from
partnerships decreased by $1.0 billion since October 31, 2023,
and deposits from advisors and brokers decreased by $0.3 billion. Personal deposits represented
85% of total deposits as at April 30, 2024, compared with 86%
as at October 31, 2023, and contributed to the Bank's sound
liquidity position. Business and other deposits decreased by
$0.1 billion over the same
period to $3.6 billion.
Debt related to securitization activities
Debt related to securitization activities increased by
$0.3 billion or 2% compared with
October 31, 2023 and stood at $13.2 billion as at April 30, 2024.
During the year, new issuances of cost-effective long-term debt
related to securitization activities more than offset maturities of
liabilities, as well as normal repayments.
Shareholders' equity and regulatory capital
Shareholders' equity stood at $2.7
billion as at April 30, 2024 and decreased by
$113.3 million compared with
October 31, 2023. Retained earnings decreased by $126.5 million compared to October 31, 2023,
mainly as a result of the cumulative net loss of $80.3 million and of dividends amounting to
$41.1 million. Accumulated other
comprehensive income increased by $8.1 million compared to October 31,
2023. For additional information, please refer to the Capital
Management section of the Bank's MD&A and to the Consolidated
Statement of Changes in Shareholders' Equity for the period ended
April 30, 2024.
The Bank's book value per common share was $56.82 as at
April 30, 2024 compared to $59.96 as at October 31, 2023.
The CET1 capital ratio was 10.4% as at April 30, 2024, in
excess of the minimum regulatory requirement and the Bank's target
management levels. The CET1 capital ratio increased by 50 basis
points compared with October 31, 2023, mainly due to the
risk-weighted assets reduction. The Bank met OSFI's capital
and leverage requirements throughout the quarter.
On May 30, 2024, the Board of Directors declared a
quarterly dividend of $0.47 per
common share, payable on August 1, 2024, to shareholders of
record on July 2, 2024. This quarterly dividend is equal to
the dividend declared in the previous quarter and is 2% higher
than the dividend declared in the previous year. The Board also
determined that shares attributed under the Bank's Shareholder
Dividend Reinvestment and Share Purchase Plan will be made in
common shares issued from Corporate Treasury with a 2%
discount.
Caution Regarding Forward-Looking
Statements
From time to time, Laurentian Bank of Canada and, as applicable its subsidiaries
(collectively referred to as the Bank) will make written or
oral forward-looking statements within the meaning of applicable
Canadian and United States
(U.S.) securities legislation, including, forward-looking
statements contained in this document (and in the documents
incorporated by reference herein), as well as in other documents
filed with Canadian and U.S. regulatory authorities, in reports to
shareholders, and in other written or oral communications. These
forward-looking statements are made in accordance with the "safe
harbor" provisions of, and are intended to be forward-looking
statements in accordance with, applicable Canadian and U.S.
securities legislation. They include, but are not limited to,
statements regarding the Bank's vision, strategic goals, business
plans and strategies, priorities and financial performance
objectives; the economic, market, and regulatory review and outlook
for Canadian, U.S. and global economies; the regulatory environment
in which the Bank operates; the risk environment, including, credit
risk, liquidity, and funding risks; the statements under the
heading "Risk Appetite and Risk Management Framework" contained in
the 2023 Annual Report, including, the MD&A for the fiscal year
ended October 31, 2023, and other
statements that are not historical facts .
Forward-looking statements typically are identified with words
or phrases such as "believe", "assume", "estimate", "forecast",
"outlook", "project", "vision", "expect", "foresee", "anticipate",
"intend", "plan", "goal", "aim", "target", and expressions of
future or conditional verbs such as "may", "should", "could",
"would", "will", "intend" or the negative of any of these terms,
variations thereof or similar terminology.
By their very nature, forward-looking statements require the
Bank to make assumptions and are subject to inherent risks and
uncertainties, both general and specific in nature, which give rise
to the possibility that the Bank's predictions, forecasts,
projections, expectations, or conclusions may prove to be
inaccurate; that the Bank's assumptions may be incorrect (in whole
or in part); and that the Bank's financial performance objectives,
visions, and strategic goals may not be achieved. Forward-looking
statements should not be read as guarantees of future performance
or results, or indications of whether or not actual results will be
achieved. Material economic assumptions underlying such
forward-looking statements are set out in the 2023 Annual Report
under the heading "Outlook", which assumptions are incorporated by
reference herein.
The Bank cautions readers against placing undue reliance on
forward-looking statements, as a number of factors, many of which
are beyond the Bank's control and the effects of which can be
difficult to predict or measure, could influence, individually or
collectively, the accuracy of the forward-looking statements and
cause the Bank's actual future results to differ significantly from
the targets, expectations, estimates or intentions expressed in the
forward-looking statements. These factors include, but are not
limited to general and market economic conditions; inflationary
pressures; the dynamic nature of the financial services industry in
Canada, the U.S., and globally;
risks relating to credit, market, liquidity, funding, insurance,
operational and regulatory compliance (which could lead to the Bank
being subject to various legal and regulatory proceedings, the
potential outcome of which could include regulatory restrictions,
penalties, and fines); reputational risks; legal and regulatory
risks; competitive and systemic risks; supply chain disruptions;
geopolitical events and uncertainties; government sanctions;
conflict, war, or terrorism; and various other significant risks
discussed in the risk-related portions of the Bank's 2023 Annual
Report, such as those related to: Canadian and global economic
conditions (including the risk of higher inflation and rising
interest rates); Canadian housing and household indebtedness;
technology, information systems and cybersecurity; technological
disruption, privacy, data and third party related risks;
competition; the Bank's ability to execute on its strategic
objectives; digital disruption and innovation (including, emerging
fintech competitors); changes in government fiscal, monetary and
other policies; tax risk and transparency; fraud and
criminal activity; human capital; business continuity; emergence of
widespread health emergencies or public health crises;
environmental and social risks including, climate change; and
various other significant risks, as described beginning on page 38
of the 2023 Annual Report, including the MD&A, which
information is incorporated by reference herein. The Bank further
cautions that the foregoing list of factors is not exhaustive. When
relying on the Bank's forward-looking statements to make decisions
involving the Bank, investors, financial analysts, and others
should carefully consider the foregoing factors, uncertainties, and
current and potential events.
Any forward-looking statements contained herein or incorporated
by reference represent the views of management of the Bank only as
at the date such statements were or are made, are presented for the
purposes of assisting investors, financial analysts, and others in
understanding certain key elements of the Bank's financial
position, current objectives, strategic priorities, expectations
and plans, and in obtaining a better understanding of the Bank's
business and anticipated financial performance and operating
environment and may not be appropriate for other purposes. The Bank
does not undertake any obligation to update any forward-looking
statements made by the Bank or on its behalf whether as a result of
new information, future events or otherwise, except to the extent
required by applicable securities legislation. Additional
information relating to the Bank can be located on SEDAR+ at
www.sedarplus.ca.
Access to Quarterly Results
Materials
This press release can be found on the Bank's website at
www.lbcfg.ca, under the Press Room tab, and the Bank's Report to
Shareholders, Investor Presentation and Supplementary Financial
Information under the Investor Centre tab, Financial Results.
Conference Call
Laurentian Bank of Canada
invites media representatives and the public to listen to the
conference call to be held at 9:00 a.m. (ET) on May 31,
2024. The live, listen-only, toll-free, call-in number is
1-888-664-6392, code 68976124. A live webcast will also be
available on the Bank's website under the Investor Centre tab,
Financial Results.
The conference call playback will be available on a delayed
basis from 12:00 p.m. (ET) on
May 31, 2024, until 12:00 p.m. (ET) on July 1, 2024, on our website under the Investor
Centre tab, Financial Results.
The presentation material referenced during the call will be
available on our website under the Investor Centre tab, Financial
Results.
About Laurentian Bank of
Canada
Founded in Montréal in 1846, Laurentian Bank wants to foster
prosperity for all customers through specialized commercial banking
and low-cost banking services to grow savings for middle-class
Canadians.
With a workforce of approximately 2,800 employees, the Bank
offers a wide range of financial services and advice-based
solutions to customers across Canada and the
United States. Laurentian Bank manages $48.4 billion in balance sheet assets and
$26.6 billion in assets under
administration.
SOURCE Laurentian Bank of Canada