Laurentian Bank Of Canada Stock price
Compare with Peer Group
📊 Peer Group
📈 What is it?
The peer group consists of the companies with the most similar business model. They serve as a benchmark for putting a stock into context.
🧮 How is it selected?
Based on similarity of business model, meaning companies from the same industry with comparable products and a similar customer base. That's the only way to compare apples to apples.
🏛️ Why does it matter?
Whether a stock is cheap or expensive is best judged by comparison. A P/E of 18 or an EV/FCF of 20 can look cheap or expensive depending on the yardstick. The peer group gives you the most accurate one: companies with a similar business model that operate under the same conditions.
🎯 What does it mean for investors?
When a metric sits below the peer average, the stock is valued more cheaply relative to its competitors, and above the average more expensively. A discount to the peer group can be an opportunity, but it can also have a reason (for example lower growth). The comparison is a starting point, not a verdict.
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Key metrics
📘 Market Capitalization
📈 What is it?
Market capitalization shows how much a company is currently worth on the stock market.
🧮 How is it calculated?
🏛️ Why is it important?
It helps classify companies by size (Large, Mid, Small Cap) and indicates their market presence and relative stability.
🧮 Calculation
🎯 What does this mean for investors?
- Large-cap companies tend to be more stable, often pay dividends, but may grow more slowly.
- Smaller firms may offer higher growth potential but come with more volatility.
- Market capitalization is a useful indicator of company size — but not a measure of whether a stock is undervalued or overvalued.
📘 Enterprise Value (EV)
📈 What is it?
Enterprise Value represents the total cost to acquire a company — including its debt and excluding its cash reserves.
🧮 How is it calculated?
(= Market Cap + Net Debt)
🏛️ Why is it important?
EV gives a more complete picture of a company's value than market cap alone and is used in key valuation ratios like EV/FCF or EV/Sales.
🧮 Calculation
🎯 What does this mean for investors?
- Enterprise Value shows the true cost of buying a company, including all financial obligations.
- It is more accurate than just looking at market cap, especially when comparing companies with different levels of debt or cash.
- Professional investors prefer EV-based multiples because they better reflect the company’s full financial footprint.
📘 Net Debt
📈 What is it?
Net Debt shows how much debt remains after subtracting a company’s available cash reserves.
🧮 How is it calculated?
🏛️ Why is it important?
It indicates how dependent a company is on borrowed money and how easily it can service its debt in the short term.
🎯 What does this mean for investors?
- Low or negative net debt signals financial strength and flexibility.
- Companies with strong cash positions are better positioned in crises.
- High net debt increases financial risk — especially in environments with rising interest rates or economic downturns.
📘 Cash
📈 What is it?
Cash represents all liquid assets a company can access immediately — including cash, bank deposits, and short-term investments.
🧮 How is it calculated?
🏛️ Why is it important?
It reflects a company’s financial flexibility and resilience — enabling investments, buybacks, or buffer in downturns.
🧮 Calculation
🎯 What does this mean for investors?
- A strong cash position means greater room for maneuver and crisis resistance.
- Cash-rich companies can invest, pay down debt, or repurchase shares.
- But excess idle cash might indicate a lack of growth opportunities.
📘 Shares Outstanding
📈 What is it?
Shares outstanding represent the total number of a company’s shares currently held by investors — excluding treasury stock.
🧮 How is it calculated?
🏛️ Why is it important?
It’s the basis for key metrics like Earnings Per Share (EPS), Market Capitalization, or the Price/Earnings ratio (P/E).
🧮 Calculation
🎯 What does this mean for investors?
- Fewer shares in circulation typically increase earnings per share — making each share more valuable.
- Share buybacks reduce the number of shares and boost per-share metrics.
- Issuing new shares does the opposite — diluting shareholder value and lowering per-share figures.
📘 Price-to-Earnings Ratio (P/E)
📈 What is it?
The P/E ratio shows how many times a company's earnings per share are reflected in its current share price — in other words, how "expensive" the stock appears relative to its profits.
🧮 How is it calculated?
🏛️ Why is it important?
The P/E ratio is one of the most widely used valuation metrics. It helps investors assess whether a stock appears cheap or expensive compared to its earnings power.
🧮 Calculation
📊 P/E (TTM) = Based on earnings from the last 12 months (Trailing Twelve Months):🎯 What does this mean for investors?
- A low P/E may indicate undervaluation — or signal underlying issues.
- A high P/E may reflect strong growth expectations — or an overvalued stock.
📘 Price-to-Sales Ratio (P/S)
📈 What is it?
The P/S ratio shows how much investors are paying for $1 of the company’s revenue – regardless of profitability.
🧮 How is it calculated?
🏛️ Why is it important?
P/S is especially useful for evaluating growth companies or businesses not yet profitable. It reflects how the market values the company’s sales.
🧮 Calculation
Market Cap = C$1.81b | Revenue (TTM) = C$951.65m
Market Cap = C$1.81b | Estimated Revenue = C$995.68m
🎯 What does this mean for investors?
- A low P/S may indicate undervaluation — or low profitability.
- A high P/S can reflect strong growth expectations — or excessive optimism.
- Especially helpful when evaluating companies where profits are low, volatile, or negative.
📘 Enterprise Value to Sales (EV/Sales)
📈 What is it?
EV/Sales shows how much investors are paying for $1 of revenue — considering not just equity, but also debt and cash. It’s the capital structure–adjusted version of the P/S ratio.
🧮 How is it calculated?
🏛️ Why is it important?
It’s ideal for comparing companies with different levels of debt. It reflects a company's true cost relative to its revenue.
🧮 Calculation
Enterprise Value = C$22.89b | Revenue (TTM) = C$951.65m
Enterprise Value = C$22.89b | Forward Revenue = C$995.68m
🎯 What does this mean for investors?
- EV/Sales allows for capital structure–neutral company comparisons.
- A lower ratio may indicate undervaluation; a higher one may signal strong growth expectations or overvaluation.
- Especially helpful when evaluating high-growth companies with low or negative earnings.
📘 Enterprise Value to Free Cash Flow (EV/FCF) | ex SBC
📈 What is it?
EV/FCF compares a company’s enterprise value with its free cash flow. The metric therefore shows the multiple of current free cash flow at which a company is valued. EV/FCF ex SBC additionally accounts for stock-based compensation (SBC). While SBC does not represent a direct cash outflow, issuing shares as compensation can dilute existing shareholders. Therefore, SBC is deducted from free cash flow in this adjusted version.
🧮 How is it calculated?
EV/FCF ex SBC = Enterprise Value ÷ (Free Cash Flow (TTM) − SBC)
🏛️ Why is it important?
EV/FCF provides a valuation based on free cash flow and therefore complements earnings-based valuation metrics such as the P/E ratio. The ex SBC version additionally accounts for the economic impact of stock-based compensation and provides a more conservative view from a shareholder perspective.
🧮 Calculation
🎯 What does this mean for investors?
- A low EV/FCF means that enterprise value is low relative to current free cash flow. The reasons should always be considered in the context of the company and its industry.
- A high EV/FCF means that enterprise value is high relative to current free cash flow. This can, for example, reflect high growth expectations or temporarily weak cash generation.
- When SBC is positive and adjusted free cash flow remains positive, EV/FCF ex SBC is generally higher than the standard EV/FCF.
- The metric is particularly useful for companies with relatively stable and predictable cash flows.
- If free cash flow is negative or very low, EV/FCF has limited usefulness and should not be interpreted like a standard valuation multiple.
📘 Price-to-Book Ratio (P/B)
📈 What is it?
The P/B ratio compares a company’s market value to its book value — showing how much investors are paying for each dollar of net assets.
🧮 How is it calculated?
🏛️ Why is it important?
P/B is commonly used for asset-heavy industries like banks or industrials. It helps assess whether a stock is trading above or below its net asset value.
🧮 Calculation
🎯 What does this mean for investors?
- A P/B below 1 may signal undervaluation — or weak profitability.
- A P/B above 1 implies the market expects future value creation (e.g., brand, IP, growth).
- Best used for companies with tangible assets and strong balance sheets.
📘 Dividend per Share (DPS)
📈 What is it?
Dividend per Share shows how much cash a company pays out to shareholders for each share they own – usually on an annual or quarterly basis.
🧮 How is it calculated?
🏛️ Why is it important?
DPS is the absolute value of the payout per share – crucial for income-focused investors and dividend strategies.
🧮 Calculation
🎯 What does this mean for investors?
- A stable or growing DPS often signals a strong, shareholder-friendly business.
- DPS alone doesn’t tell you how attractive the payout is – the stock price also matters (→ see Dividend Yield).
- Long-term dividend growth is often a hallmark of high-quality companies – like the dividend aristocrats.
📘 Dividend Yield
📈 What is it?
Dividend yield shows how large a company’s dividend is in relation to its current share price.
🧮 How is it calculated?
🏛️ Why is it important?
It allows investors to compare dividend payouts across stocks, regardless of price or payout size.
🧮 Calculation
🎯 What does this mean for investors?
- A stable yield can reflect reliable distributions.
- Comparing 1Y and 5Y yield shows whether dividend growth keeps pace with stock price appreciation.
- A low yield isn’t always negative – it can signal strong past performance or growth focus.
📘 Dividend Growth
📈 What is it?
Dividend growth shows how much a company has increased its dividend per share over time.
🧮 How is it calculated?
5Y: Compound Annual Growth Rate (CAGR)
🏛️ Why is it important?
Consistently rising dividends are often a sign of financial strength and shareholder orientation – especially relevant for long-term investors.
🧮 Calculation
🎯 What does this mean for investors?
- Stable dividend growth is a sign of sustainable earning power.
- High dividend growth can significantly boost your total return:
- If a company pays $1 in dividends and increases it by 15% annually over 5 years, you’ll receive $2 per share in year 5 – twice as much as at the start!
📘 Payout Ratio
📈 What is it?
The payout ratio shows what percentage of a company’s earnings (per share) is distributed to shareholders as dividends.
🧮 How is it calculated?
🏛️ Why is it important?
It helps assess whether the dividend is sustainable – especially in relation to the company’s profitability.
🧮 Calculation
🎯 What does this mean for investors?
- A low payout ratio means the company retains more earnings for reinvestment – typical for growth companies.
- A moderate payout (e.g. 25–50%) indicates a healthy balance between returns and reinvestment.
- High payout ratios may seem attractive but can carry risk if earnings decline.
📘 Consecutive Dividend Increases
📈 What is it?
This metric shows how many consecutive years a company has raised its dividend per share – without any cuts or pauses.
🧮 How is it calculated?
(Special dividends are not considered.)
🏛️ Why is it important?
A long track record of increases reflects financial strength, consistency, and shareholder commitment.
🎯 What does this mean for investors?
- A long dividend increase streak builds confidence – especially in volatile markets.
- Such companies are seen as reliable and income-friendly investments.
- The longer the streak, the stronger the company’s dividend discipline.
📘 Revenue
📈 What is it?
Revenue shows how much a company earns in total from selling its products and services – the gross income before any costs are deducted.
🧮 How is it calculated?
🏛️ Why is it important?
Revenue is one of the key figures to assess a company’s size, market position, and growth potential.
🧮 Calculation
🎯 What does this mean for investors?
- Growing revenue indicates rising demand and can be an early signal of future earnings growth.
- Comparing actual and expected revenue reveals trends in the market environment and analyst sentiment.
- Note: Strong revenue alone isn’t enough – margins and profitability matter just as much.
📘 EBITDA
📈 What is it?
EBITDA stands for “Earnings Before Interest, Taxes, Depreciation, and Amortization.” It reflects a company’s operating profit before the effects of financing, taxes, and accounting depreciation.
🧮 How is it calculated?
🏛️ Why is it important?
EBITDA is widely used to evaluate a company’s operating performance – especially across capital-intensive sectors or international comparisons.
🎯 What does this mean for investors?
- A high or growing EBITDA indicates strong operational profitability – independent of taxes, interest, or accounting methods.
- It’s especially useful for comparing companies across sectors or geographies.
- Important: EBITDA is not a net income figure – it excludes key costs like depreciation and interest.
📘 EBIT
📈 What is it?
EBIT stands for “Earnings Before Interest and Taxes.” It reflects a company’s operating profit after depreciation, but before interest and tax expenses.
🧮 How is it calculated?
🏛️ Why is it important?
EBIT is a core profitability metric that shows how well the company performs in its main business operations – independent of capital structure and tax environment.
🎯 What does this mean for investors?
- A high EBIT indicates strong profitability from the company’s core business – before financial and tax effects.
- It allows better comparison between companies with different debt levels or tax structures.
- Compared to EBITDA, EBIT already accounts for depreciation and reflects capital intensity more clearly.
📘 Net Income
📈 What is it?
Net income is the company’s total profit – the amount left after all expenses, taxes, interest, and depreciation have been deducted.
🧮 How is it calculated?
🏛️ Why is it important?
Net income is the most comprehensive measure of a company’s profitability – showing how much actual profit remains after all business and financing costs.
🧮 Calculation
🎯 What does this mean for investors?
- Growing net income indicates that the company is managing all of its costs efficiently.
- It directly influences valuation metrics like P/E ratio and the company’s dividend capacity.
- Over time, net income trends reveal how resilient and profitable the business model really is.
📘 Free Cash Flow (FCF) | ex SBC
📈 What is it?
Free cash flow shows how much cash remains after a company has covered its operating and capital expenditures. FCF ex SBC additionally deducts stock-based compensation (SBC) to adjust the cash flow for the effect of non-cash SBC.
🧮 How is it calculated?
Free Cash Flow ex SBC = Operating Cash Flow − SBC − Capital Expenditures (CAPEX)
🏛️ Why is it important?
FCF reflects a company’s actual financial strength – independent of reported accounting earnings. It shows how much flexibility a company has for dividends, share buybacks, or debt reduction. FCF ex SBC also deducts stock-based compensation and shows how much cash generation remains after SBC.
🧮 Calculation
🎯 What does this mean for investors?
- High free cash flow indicates that a company has strong financial strength – independent of reported earnings.
- It is often a solid basis for sustainable dividends and share buybacks.
- Declining FCF can be a warning sign, even if reported earnings remain stable.
📘 Revenue Growth
📈 What is it?
Revenue growth shows how much a company’s sales have changed compared to the previous year – both on a trailing basis (TTM) and based on forward projections.
🧮 How is it calculated?
Forward = (Expected revenue ÷ Revenue in prior year − 1) × 100
Forward growth is based on analyst estimates for the current fiscal year.
🏛️ Why is it important?
Rising revenue signals growing demand, business expansion, and market share gains – especially important for growth-oriented companies.
🧮 Calculation
🎯 What does this mean for investors?
- Growth is the engine of long-term value creation – especially in tech and growth sectors.
- What matters is not just current growth, but its sustainability.
- Forward projections reflect whether analysts expect continued momentum – or a slowdown.
📘 EBITDA Growth
📈 What is it?
EBITDA growth shows how much a company’s operating profit (before interest, taxes, depreciation, and amortization) has increased or decreased compared to the previous year.
🧮 How is it calculated?
Forward = (Expected EBITDA ÷ EBITDA from prior year − 1) × 100
The forward estimate is based on analyst projections for the current fiscal year.
🏛️ Why is it important?
Growing EBITDA indicates improving operational profitability – regardless of financing or accounting effects.
🎯 What does this mean for investors?
- Strong EBITDA growth signals operational efficiency and scalability – especially during growth phases.
- EBITDA growth can be an early indicator of margin and earnings expansion – but should be assessed alongside revenue and EBIT.
📘 EBIT Growth
📈 What is it?
EBIT growth shows how much a company’s operating profit (after depreciation, but before interest and taxes) has increased compared to the previous year.
🧮 How is it calculated?
Forward = (Expected EBIT ÷ EBIT from prior year − 1) × 100
The forward estimate is based on analyst projections for the current fiscal year.
🏛️ Why is it important?
EBIT growth is a direct indicator of a company’s business performance – taking into account capital intensity through depreciation.
🎯 What does this mean for investors?
- Rising EBIT signals improving operating profitability – even after accounting for depreciation.
- It’s especially important for evaluating companies with significant capital expenditures.
- Combined with revenue and EBITDA growth, EBIT growth provides a well-rounded view of operational progress.
📘 Net Income Growth
📈 What is it?
Net income growth shows how much a company’s bottom-line profit has increased or decreased compared to the previous year – both on a trailing basis (TTM) and based on analyst projections.
🧮 How is it calculated?
Forward = (Expected net income ÷ Net income from prior year − 1) × 100
The forward estimate reflects analysts’ expectations for the current fiscal year.
🏛️ Why is it important?
Net income is the ultimate measure of profitability. Growing net income signals stronger efficiency, cost control, and sustainable earnings power.
🧮 Calculation
🎯 What does this mean for investors?
- Stronger net income boosts valuation, dividend potential, and investor confidence.
- If profits stall while revenue grows, it may signal margin pressure.
📘 Free Cash Flow Growth
📈 What is it?
Free cash flow (FCF) growth shows how a company’s available cash – after covering operating expenses and capital expenditures – has changed compared to the previous year.
🧮 How is it calculated?
🏛️ Why is it important?
Free cash flow reflects real financial strength. Growing FCF indicates more flexibility for dividends, share buybacks, and reinvestment.
🧮 Calculation
🎯 What does this mean for investors?
- Declining FCF may point to rising investments, increasing costs, or weaker operating performance.
- Especially for dividend investors, FCF growth is critical – since dividends are paid from actual available cash.
- A negative trend isn't always bad, but it deserves closer attention.
📘 Gross Margin
📈 What is it?
Gross margin shows how much of a company’s revenue remains after deducting the direct costs of goods sold (like materials and production). It represents the company’s “raw profit” before fixed costs, taxes, and interest.
🧮 How is it calculated?
Or simply: Gross Margin = Gross Profit ÷ Revenue × 100
🏛️ Why is it important?
Gross margin indicates how efficiently a company can produce or procure what it sells. It is a key measure of product-level profitability and pricing power.
🎯 What does this mean for investors?
- A high gross margin suggests strong pricing power and efficient production.
- Falling margins may signal rising input costs or competitive pressure.
- Compared to peers, gross margin offers insights into the quality of a business model.
📘 EBITDA Margin
📈 What is it?
The EBITDA margin shows how much of a company’s revenue remains as operating profit before interest, taxes, depreciation, and amortization.It reflects operating efficiency without being distorted by financing or accounting factors.
🧮 How is it calculated?
🏛️ Why is it important?
The EBITDA margin reveals how much operating income a company generates per dollar of revenue – independent of capital structure and tax effects.
🎯 What does this mean for investors?
- A high EBITDA margin reflects strong core profitability – before accounting distortions.
- It allows for effective comparisons across companies and sectors.
- A stable or growing margin signals efficient cost control and business scalability.
📘 EBIT Margin
📈 What is it?
The EBIT margin shows what percentage of revenue remains as operating profit after depreciation but before interest and taxes.
🧮 How is it calculated?
🏛️ Why is it important?
The EBIT margin reflects a company’s core profitability while accounting for capital intensity (e.g. machinery, infrastructure). It’s especially useful for comparing businesses with different levels of depreciation.
🎯 What does this mean for investors?
- A high EBIT margin shows that the company remains efficient even after factoring in depreciation.
- It’s especially relevant for capital-intensive industries.
- Stable or rising EBIT margins over time are a strong indicator of pricing power and business quality.
📘 Net Margin
📈 What is it?
Net margin shows how much of a company’s revenue remains as bottom-line profit after deducting all costs, interest, taxes, and depreciation.
🧮 How is it calculated?
🏛️ Why is it important?
Net margin reflects a company’s overall efficiency – across operations, financing, and taxation. It shows how much actual profit is generated from each dollar of revenue.
🧮 Calculation
🎯 What does this mean for investors?
- A high net margin means the company is not only strong operationally but also manages financing and taxes efficiently.
- Peer comparisons reveal business quality and competitiveness.
- Declining margins despite revenue growth can be a red flag for rising costs or inefficiencies.
📘 Free Cash Flow Margin | ex SBC
📈 What is it?
The Free Cash Flow Margin shows how much free cash flow a company generates relative to its revenue. In simplified terms, free cash flow is calculated as operating cash flow minus capital expenditures. The Free Cash Flow Margin ex SBC additionally accounts for stock-based compensation (SBC). While SBC does not represent a direct cash outflow, issuing shares as compensation can dilute existing shareholders. Therefore, SBC is deducted from free cash flow in this adjusted metric.
🧮 How is it calculated?
Free Cash Flow Margin ex SBC = (Free Cash Flow − SBC) ÷ Revenue × 100
🏛️ Why is it important?
The Free Cash Flow Margin shows how efficiently a company converts its revenue into free cash flow. Strong free cash flow can provide financial flexibility for dividends, share buybacks, debt repayment, or further investments. The ex SBC version additionally accounts for the economic impact of stock-based compensation and therefore provides a more conservative view of cash generation from a shareholder perspective.
🧮 Calculation
🎯 What does this mean for investors?
- A high Free Cash Flow Margin shows that a company converts a high proportion of its revenue into free cash flow.
- This can provide greater financial flexibility for dividends, share buybacks, debt repayment, or investments.
- The Free Cash Flow Margin ex SBC additionally accounts for potential shareholder dilution from stock-based compensation.
- The long-term trend is particularly important. Declining margins can, for example, result from higher investments, changes in working capital, or weaker operating performance.
📘 Equity Ratio
📈 What is it?
The equity ratio indicates what portion of a company’s total assets is financed by shareholders’ equity – in other words, how much it relies on its own capital.
🧮 How is it calculated?
🏛️ Why is it important?
A high equity ratio reflects financial strength and stability, especially during downturns. It’s a key indicator of a company’s solvency and long-term risk profile.
🧮 Calculation
🎯 What does this mean for investors?
- Companies with high equity ratios are generally more resilient and less dependent on external debt.
- Low equity ratios can signal higher risk or aggressive financial strategies.
- Important: Always assess the equity ratio in combination with the return on equity (ROE). This shows not just how stable the company is – but also how efficiently it uses shareholder capital.
📘 Return on Equity (ROE)
📈 What is it?
Return on equity (ROE) shows how efficiently a company uses its shareholders’ equity to generate profit. In other words: how much net income is earned per dollar of equity.
🧮 How is it calculated?
🏛️ Why is it important?
ROE is a core profitability metric. It helps investors understand whether a company delivers attractive returns on the capital provided by its shareholders.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROE indicates that the company is using its capital efficiently and profitably.
- It’s especially meaningful for capital-intensive businesses or firms with high equity bases.
- Important: A very high ROE can also result from high debt levels – always interpret it alongside the equity ratio to assess financial health.
📘 Return on Capital Employed (ROCE)
📈 What is it?
ROCE measures how efficiently a company generates profits from its total capital – including both equity and interest-bearing debt.
🧮 How is it calculated?
It evaluates the return on all capital employed, regardless of how it’s financed.
🏛️ Why is it important?
ROCE is ideal for comparing companies with different financing structures. It shows how well management uses capital to create value for both shareholders and creditors.
🎯 What does this mean for investors?
- A high ROCE means the company uses its capital efficiently – regardless of whether it's funded by debt or equity.
- The higher the ROCE compared to peers, the more value the company creates with its invested capital.
- Especially relevant for capital-intensive sectors like industrials, energy, or infrastructure.
📘 Return on Invested Capital (ROIC)
📈 What is it?
ROIC measures how efficiently a company generates returns from the capital invested in its core operations – regardless of whether the capital comes from equity or debt.
🧮 How is it calculated?
- NOPAT = Net Operating Profit After Taxes
- Invested Capital = Operating assets minus non-interest-bearing liabilities
🏛️ Why is it important?
ROIC is one of the most accurate indicators of capital efficiency. Unlike return on equity, it is not distorted by leverage and shows how much value is created for all capital providers.
🎯 What does this mean for investors?
- A high ROIC shows how effectively a company uses the capital that is truly invested in its core operations.
- Unlike ROCE, ROIC focuses only on the capital that is actively used to run the business – and that requires a return (i.e. interest-bearing).
- Especially useful when comparing companies with large amounts of excess cash or non-interest-bearing liabilities – giving a more realistic picture of capital efficiency.
📘 Leverage Ratio (Debt-to-Equity)
📈 What is it?
The leverage ratio indicates how much a company relies on interest-bearing debt (such as loans and bonds) relative to its shareholders’ equity.
🧮 How is it calculated?
🏛️ Why is it important?
This ratio helps assess a company’s financial structure and risk profile. High leverage can enhance returns – but also increases exposure to interest rate changes and financial stress.
🧮 Calculation
🎯 What does this mean for investors?
- A low leverage ratio signals financial strength and independence.
- A higher ratio can improve returns in good times but increases risk during downturns or rising interest rate periods.
- 👉 Always interpret in the context of industry, capital intensity, and interest rate environment.
📘 Earnings per share (EPS)
📈 What is it?
Earnings per Share (EPS) shows how much profit is attributable to a single share – and is one of the most important metrics for evaluating a company's performance.
🧮 How is it calculated?
The diluted share count reflects potential new shares that could be issued through options, convertible bonds, or other rights.
🏛️ Why is it important?
EPS is the basis for many key valuation metrics like P/E ratio, PEG ratio, or payout ratio. It enables comparisons of profitability across companies, regardless of their size.
🧮 Calculation
🎯 What does this mean for investors?
- EPS captures per-share profitability and is especially useful for comparisons over time or with analyst estimates.
- Rising EPS may signal consistent growth or share buybacks.
- Important: Always use diluted EPS for more realistic valuations – especially in companies with stock-based compensation.
📘 Free cash flow per share (FCF per share)
📈 What is it?
Free Cash Flow per Share shows how much free cash flow a company generates per outstanding share – after investments, but before dividends or debt repayments.
🧮 How is it calculated?
Free cash flow is calculated as operating cash flow minus capital expenditures (CapEx).
🏛️ Why is it important?
FCF per Share reveals how much real cash is available per share – useful for dividends, buybacks, or reducing debt. Unlike net income, free cash flow is harder to manipulate and often seen as a more reliable metric.
🧮 Calculation
🎯 What does this mean for investors?
- High FCF per share signals strong financial flexibility.
- It shows how much capital the company can effectively reinvest or return to shareholders.
- Particularly relevant for dividend payers and capital-efficient businesses.
📘 Short interest
📈 What is it?
Short interest indicates how many shares of a company are currently sold short – that is, borrowed and sold by investors who expect the price to decline.
🧮 How is it calculated?
It reflects the percentage of a company’s shares that are being shorted relative to the total shares available.
🏛️ Why is it important?
Short interest serves as a sentiment indicator: A high value may signal skepticism or bearish expectations – but also increases the potential for a short squeeze if prices rise unexpectedly.
🧮 Calculation
🎯 What does this mean for investors?
- Low short interest usually indicates market confidence in the company.
- High short interest can be a warning sign – or an opportunity if sentiment shifts.
- Especially relevant in volatile markets or ahead of key earnings releases.
📘 Employees
📈 What is it?
The employee count shows how many people a company employs worldwide – offering insights into its size, structure, and business model.
🧮 How is it calculated?
🏛️ Why is it important?
It helps assess operational scale, labor intensity, and cost structure. Combined with revenue and profit, it enables key metrics like revenue per employee or productivity.
🧮 Calculation
🎯 What does this mean for investors?
- A high headcount can signal operational complexity – but also significant growth capacity.
- Revenue per employee is a key indicator of efficiency.
- Especially useful for comparing tech, industrial, or service-heavy companies.
📘 Revenue per employee
📈 What is it?
Revenue per employee indicates how much revenue a company generates on average per employee – a key measure of efficiency and productivity.
🧮 How is it calculated?
The employee count is typically taken from the most recent annual report.
🏛️ Why is it important?
This metric helps compare business models – especially between labor-intensive and technology-driven companies. A high value suggests automation, operational efficiency, or strong value creation per head.
🧮 Calculation
🎯 What does this mean for investors?
- A high revenue per employee indicates a scalable and margin-strong business model.
- A low figure may reflect labor-intensive operations or lower value-add.
- Especially helpful when comparing tech companies to industrial or service sectors.
Laurentian Bank Of Canada Stock Analysis
Analyst Opinions
10 Analysts have issued a Laurentian Bank Of Canada forecast:
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Laurentian Bank Of Canada Events
Past Events
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MAY
29
Q2 2026 Earnings Call
4 months ago
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FEB
27
Q1 2026 Earnings Call
8 months ago
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DEC
5
Q4 2025 Earnings Call
10 months ago
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Laurentian Bank Of Canada — Q2 2026 Earnings Call
1. Management Discussion
Welcome to Laurentian Bank Financial Results Call. Please note that this call is being recorded. I would now like to turn the meeting over to Raphael Ambeault, Vice President, Finance and Investor Relations. Please go ahead, Raphael.
[Foreign Language]
Good morning, and thank you for joining us. Today's opening remarks will be delivered by Eric Provost, President and CEO and the review of the second quarter financial results will be presented by Yvan Deschamps, Executive Vice President and CFO. After which, we'll invite questions from the phone.
Also joining us for the question period is Christian De Broux, Executive Vice President and CRO.
All documents pertaining to the quarter can be found on our website in the Investor Relations section. I'd like to remind you that during this conference call, forward-looking statements may be made, and it is possible that actual results may differ materially from those projected in such statements.
For the complete cautionary note regarding forward-looking statements, please refer to our press release or to Slide 2 of the presentation. I would also like to remind listeners that the bank assesses its performance on a reported and adjusted basis and consider both to be useful in assessing underlying business performance. Eric and Yvan will be referring to adjusted results in their remarks unless otherwise noted as reported.
I will now turn the call over to Eric.
[Foreign Language] Good morning, and thank you for being with us today. Our focus continues to be firmly anchored in serving our customers and managing our operations with discipline. I would like to begin by thanking our employees for their focus and commitment during this challenging period, as we navigate an uncertain macroeconomic environment while supporting the migration and sell process and while continuing to effectively manage the bank's day-to-day operations.
Moving on to our loan performance. Our commercial specialization teams delivered another strong quarter and driving solid performance with combined commercial loan growth of 2.4%, excluding the syndication portfolio sale.
Inventory financing performed well with loan growth of 5% quarter-over-quarter, while our dealer base grew by 4%, highlighting the continued expansion of our network. In commercial real estate, the portfolio grew by 1% quarter-over-quarter while the pipeline increased by 9%, positioning us well for future growth.
Overall, our commercial specialization continues to deliver high-quality growth fully aligned with our transformation plan. In terms of provisions, for credit losses, the ratio increased to 31 basis points, primarily driven by a single large commercial file in an industry where we no longer operate.
Importantly, this remains an isolated situation, and we are confident that our portfolio is appropriately reserved, reflecting its overall quality and performance. This quarter marked meaningful progress in advancing the announced transactions with National Bank and Fairstone with several key milestones achieved.
As a reminder, closing remains subject to regulatory approvals and other closing conditions. We have made solid progress on both fronts and as thing stands, the Competition Act approval condition for both transactions have been satisfied, provided that there is no change in circumstances relating to the Competition Bureau.
Operationally, the portfolio migration is progressing well and remains on track. Based on our current trajectory, we continue to expect both transactions to close by the end of 2026. I will now turn the call over to Yvan to review our financial performance.
[Foreign Language] I would like to begin by turning to Slide 6, which has been added to provide details on the adjusting items for the second quarter of 2026, which totaled $43.2 million after tax or $0.96 per share. We recorded the following charges stemming from the transactions announced in December on an after-tax basis. Severance and employee benefits for $12.9 million, accelerated amortization of software and other intangible assets for $7.8 million. Charges related to onerous contracts, leases and others for $1.4 million. Impairment of premises and equipment for $900,000. Transaction and conversion costs were $3.7 million.
During the quarter, we also announced the closing of the syndicated loan transaction, which resulted in a net loss of $16.6 million after tax. Quarterly comparison is available on Slide 21 and in the second quarter report to shareholders.
Turning to Slide 7. It highlights the bank's financial performance for the second quarter of 2026. On a reported basis, total revenue for the quarter was $213.7 million, down 12% compared to last year and 15% quarter-over-quarter. Net loss and diluted loss per share were $20.6 million and $0.50, respectively. The remainder of my comments will be on an adjusted basis and also be on the total loans and total deposits basis as the balance sheet outlined separately for Q2, the assets held for sale and the liability is directly associated with them.
Total revenue for the quarter was $236.2 million, down 3% compared to last year, and 6% quarter-over-quarter. The diluted EPS of $0.46 decreased by 37% year-over-year and by 29% quarter-over-quarter. Net income of $22.6 million was down by 33% compared to last year and was down by 34% sequentially. The bank's efficiency ratio increased by 240 basis points compared to last year due to our investments and by 90 basis points sequentially. Our ROE for the quarter stood at 3.4%, down 180 basis points year-over-year and 110 basis points quarter-over-quarter.
Slide 8 shows net interest income up by $2.8 million or 2% year-over-year from the growth of average earning assets and higher commercial loan concentration. On a sequential basis, net interest income was down by $9.8 million or 5% from the shorter quarter and the impact of the Syndicated Loan Transaction. Our net interest margin at 1.84% was down 1 basis points year-over-year and down 5 basis points quarter-over-quarter. Sequential reduction was driven by the nonrecurrence of loan repricing lags and favorable repayments recorded in the first quarter of 2026.
The Slide 9 highlights the bank's funding position. On a sequential basis, total funding was up by $300 million from an increase of the debt-related securitization activities and wholesale deposits. The bank maintained a healthy liquidity coverage ratio through the quarter, which remains at the higher end of the industry.
Slide 10 presents other income of $51.1 million, which was lower by 15% compared to last year and by 10% compared to last quarter. The decrease mostly related to income from financial instruments.
Slide 11 shows noninterest expenses of $183.2 million up 1% year-over-year and down 5% sequentially, mainly from seasonally lower salaries and employee benefits and a streamlined workforce.
Slide 12 presents the CET1 ratio, which increased by 10 basis points to 11% due to the net impact of the Syndicated Loan Transaction. Slide 13 highlights our total commercial loan portfolio, which increased by about $800 million year-over-year and decreased by about $300 million sequentially, as the growth in commercial real estate and inventory financing was more than offset by the reduction due to the sale of the syndication loan portfolio in the second quarter of 2026.
The Slide 14 provides details of our inventory financing portfolio. This quarter, utilization rates were 46%, an increase of 1% quarter-over-quarter. Slide 15 illustrates that 2/3 of our commercial real estate portfolio is residential with most of it in multi-residential housing. The LTV on the uninsured multi-residential portfolio stood prudently at 60%.
Slide 16 presents the bank's total residential mortgage portfolio. Total residential mortgage loans were down 3% year-over-year and 2% on a sequential basis. We adhere to cautious underwriting standards and are confident in the quality of our portfolio. This is reflected in our 63% proportion of insured mortgages and a low loan-to-value ratio of 52% on the uninsured portion.
Total allowances for credit losses on Slide 17 totaled $181.4 million, down $11.2 million compared to last quarter, mostly from lower allowances on impaired commercial loans. Turning to Slide 18. The provision for credit losses was $26.9 million, an increase of $10.2 million from a year ago, from higher provision on impaired commercial loans. Sequentially, PCLs were up $10.4 million for the same reasons. As a percentage of average loans, PCLs increased by 12 basis points year-over-year and by 13 basis points quarter-over-quarter to 31 basis points.
Slide 19 provides an overview of impaired loans. Gross impaired loans decreased by $50.6 million year-over-year and increased by $6.7 million sequentially, driven by commercial loans. As we look ahead to the third quarter of 2026, I would like to provide some remarks.
We've all incurred additional transaction-related charges in Q3 in the $40 million range pretax. This is essentially the continuance of the charges incurred or gradually amortized over the current fiscal year. We expect loans to decline by roughly 2% to 3%, mainly due to the seasonal reduction in inventory financing and a reduction in residential mortgages. The reduction in inventory financing will also drive the NIM down.
Regarding the adjusted efficiency ratio, Q3 should be relatively aligned with Q2. We expect PCLs to be in the high teens. Our tax rate is also expected to be in the high teens. Capital and liquidity levels are solid and expected to remain strong for Q3. Reminder that there is LRCN interest payment next quarter. And I will now turn the call back to the operator.
Thank you. Ladies and gentlemen, we will now begin question-and-answer session. [Operator Instructions] Your first question comes from Paul Holden with CIBC.
2. Question Answer
Thank you. Good morning. Wanting to see the news -- good to see the news on the Competition Bureau approval. Can you give us a sense of -- like does that come a little bit earlier than original plan. And I guess the reason I ask is, there's some commentary recently from regulators in terms of suggesting sort of these transactions move faster in pace versus how they have historically. So just wondering if this transaction is indeed sort of moving along a little bit quicker than originally expected?
Well, I would comment, Paul, this is Eric, that we're pretty much on track. We've been collaborating with all instances of regulatory. And we believe things are moving along with what we expected. So not really earlier, just I think the timing is according to plan so far.
Okay. And that -- remind me, that is end of calendar 2026.
Yes. As I said in my comments we expect this to close in '26.
Okay. But that is calendar, not fiscal.
It is calendar. Yes.
Okay. Okay. And then just curious what you're seeing in terms of credit performance in the CRE book. I don't believe the higher losses this quarter related to that. But we've certainly seen some other banks put up higher losses in CRE. So just you commented on the LTV, et cetera, but just wondering if you're seeing any higher delinquency rates or any kind of negative movement on that portfolio?
Yes. Thank you, Paul. Yes, for the transaction, we highlighted like this is not CRE-related, but I would leave Christian for a few comments on that topic.
Okay. Thank you for the question. I would just say that our CRE book is performing as expected, according to historical normal variations. So no concern there. The big file that we've incurred loss on obviously is in a sector like we said, that we've exited. So obviously, not CRE.
Okay. So no concerns on CRE books kind of performing in line with expectations? .
It's performing in line. You're asking a CRO, if there's no worry. No, I always worry, but by and large, we're quite comfortable with the book at this point.
Okay. That's good. And then 1 final question from me would just be, how do you think about the, I'll call it, the capital stack or the different funding layers you have in place for the business today, obviously, particularly to commercial versus what might make sense as a private company. So that question particularly comes into mind when you just mentioned the reminder on the LRCN next quarter. Is that the type of thing that still makes sense as a private company?
Yes. Thank you for the question. This is Yvan, Paul. I'll take this one. So we are still a stand-alone company. So we still have the requirements in terms of capital stacks that we need to be in good standings with regulation and with obviously the regulator. So there's no change from a stand-alone perspective. Obviously, once the company gets into Fairstone, Fairstone will have to make its own calls on a consolidated basis. But until the closing of the transaction, we need to manage as a stand-alone business.
[Operator Instructions] This concludes the Q&A session. I will now hand the meeting over to Eric Provost for closing remarks.
Thank you. We continue to make steady progress towards the completion of our agreements with Fairstone and National Bank while maintaining a clear focus on supporting our customers and employees. Two important steps remain, we are well positioned and confident in our ability to execute on our priorities. I would also like to recognize and thank our employees for their dedication and continued commitment as Laurentian Bank navigates this important transition. Thank you, and I wish you all a great rest of the day.
Ladies and gentlemen, this concludes the conference call for today. We thank you for participating and ask that you please disconnect your lines. Thank you.
Laurentian Bank Of Canada — Q2 2026 Earnings Call
Laurentian Bank Of Canada — Q1 2026 Earnings Call
1. Management Discussion
Welcome to Laurentian Bank Financial Results Call. Please note that this call is being recorded. I would now like to turn the meeting over to Raphael Ambeault, Vice President, Finance and Investor Relations. Please go ahead, Raphael.
[Foreign Language] Good morning, and thank you for joining us. Today's opening remarks will be delivered by Eric Provost, President and CEO, and the review of the first quarter financial results will be presented by Yvan Deschamps, Executive Vice President and CFO, after which we'll invite questions from the phone. Also joining us for the question period is Christian De Broux, Executive Vice President and CRO.
All documents pertaining to the quarter can be found on our website in the Investor Relations section. I'd like to remind you that during this conference call, forward-looking statements may be made, and it is possible that actual results may differ materially from those projected in such statements. For the complete cautionary note regarding forward-looking statements, please refer to our press release or to Slide 2 of the presentation. I would also like to remind listeners that the bank assesses its performance on a reported and adjusted basis and considers both to be useful in assessing underlying business performance. Eric and Yvan will be referring to adjusted results in their remarks unless otherwise noted as reported.
I will now turn the call over to Eric.
[Foreign Language] Good morning, and thank you for being with us today. For the first quarter of 2026, we're pleased with the progress we've made on our key priorities. Our core commercial businesses showed solid underlying momentum with a total loan growth of 4% in the first quarter, which is right in line with our transformation plan.
I want to take a moment to recognize our employees. Their commitment and professionalism stand out. They continue to navigate this period of change with resilience, integrity and a strong focus on serving our customers. This quarter, we recorded after-tax adjusting items of $54.7 million, reflecting charges related to the transactions announced in December. At the same time, the team has also established high momentum as it relates to the transaction. On that front, we reached an important milestone. As announced on February 5, our shareholders voted 98.8% in favor of the resolution approving the acquisition transaction. This vote confirms strong support for a future in which the bank can accelerate its strategic growth plan. Another milestone came on February 17 when we completed the sale of our syndication portfolio to National Bank.
The process went smoothly, and we will continue to monitor the transition to ensure everything remains seamless for the clients. While several steps remain to complete the transaction, including obtaining regulatory approvals, we are progressing steadily. We remain confident that we have the right team in place to successfully execute. Our mix of commercial loans continued to move in the right direction, increasing by 1% to reach 51% of total loan portfolio. As mentioned earlier, our commercial teams delivered a strong first quarter with notable momentum in key areas. Inventory financing grew 7% quarter-over-quarter and utilization improved by 5 percentage points sequentially, reaching 45%.
In commercial real estate, both the portfolio and the pipeline continued to show steady progress, each increasing by 5%. In essence, our commercial specialization demonstrated solid underlying growth, consistent with our transformation plan. In terms of provision for credit losses, the ratio decreased to 18 bps, reflecting the strength of our specialized underwriting, consistent education practices and disciplined portfolio management. We also saw an improvement in asset quality with gross impaired loans decreasing by 19% to 96 bps. We remain confident that our current level of provisions is prudent and appropriate given the overall quality and performance of our portfolio. Finally, our solid capital and liquidity positions allows us to move forward with confidence.
I would now like to turn the call over to Yvan to review our financial performance.
[Foreign Language]. I would like to begin by turning to Slide 6, which has been added to provide details on the adjusting items for the first quarter of 2026, which totaled $54.7 million after tax or $1.23 per share. We recorded the following charges stemming from the transactions announced in December, totaling $53.1 million after tax, including impairment of premises and equipment for $15.8 million, charges related to onerous contracts, leases and other for $10.8 million, severance and employee benefits for $8.4 million, accelerated amortization of software and other intangible assets for $5.2 million, impairment of software and other intangible assets for $4.8 million, transaction and conversion costs were $8.1 million. During the quarter, we also announced the purchase of group annuity contracts from a Canadian insurer that transfers approximately $60 million in obligations of our 2 registered defined benefit pension plans, which resulted in a net settlement loss of $1.6 million after tax. Quarterly comparison is available on Slide 21 and in the first quarter report to shareholders.
Turning to Slide 7. It highlights the bank's financial performance for the first quarter of 2026. Total revenue for the quarter was $251.6 million, up 1% compared to last year and up 3% quarter-over-quarter. On a reported basis, net loss and diluted loss per share were $20.5 million and $0.58, respectively. The remainder of my comments will be on an adjusted basis and also be on a total loans and total deposits basis as the balance sheet outlined separately for Q1, the assets held for sale and the liabilities directly associated with them. The diluted EPS of $0.65 decreased by 17% year-over-year and 11% quarter-over-quarter. Net income of 34.2%, $24.2 million was down by 13% compared to last year and stable sequentially. The bank's efficiency ratio increased by 240 basis points compared to last year due to our strategic investments and by 110 basis points sequentially, mainly from the regular annual salary increases and seasonally higher employee benefits. Our ROE for the quarter stood at 4.5%, down 80 basis points year-over-year and 50 basis points quarter-over-quarter.
Slide 8 shows net interest income, up by $8.7 million or 5% year-over-year from the growth of average earning assets and higher commercial loan concentration as well as favorable loan repayments. On a sequential basis, net interest income was up by $12.2 million or 7% for the same reasons in addition to the impact from favorable loan repricing lags due to the reduction of the U.S. Federal Reserve rate last December. Our net interest margin at 1.89% was up 4 basis points year-over-year and up 10 basis points sequentially, including about half from nonrecurring elements.
Slide 9 highlights the bank's funding position. On a sequential basis, total funding was stable. The bank maintained a healthy liquidity coverage ratio through the quarter, which remained at the high end of the industry. For the remainder of the year, the level of liquidity will remain very high, considering the proceeds of the sale of the syndicated loan portfolio closed on February 17.
Slide 10 presents other income of $56.7 million, which was lower by 9% compared to last year and compared to last quarter. The decrease mostly came from income from financial instruments.
Slide 11 shows noninterest expenses of $192.9 million, up 4% year-over-year and sequentially, mainly from the seasonal higher employee benefits and vacation accruals.
On Slide 12, you'll see that our CET1 ratio decreased by 40 basis points to 10.9% due to the charges stemming from the transactions announced in December and commercial loan portfolio growth.
Slide 13 highlights our total commercial loan portfolio, which grew by about $1.4 billion year-over-year and by about $700 million sequentially. This quarter, the seasonal dealers' inventory restocking was positive and fueled the loan growth to 7% quarter-over-quarter. Also, commercial real estate delivered 5% loan and pipeline growth.
Slide 14 provides details of our inventory financing portfolio. This quarter, utilization rate was 45%, an increase of 5% quarter-over-quarter.
Slide 15 illustrates that 2/3 of our commercial real estate portfolio is residential with most of it in multi-residential housing. The LTV on the uninsured multi-residential portfolio stood prudently at 61%.
Slide 16 presents the bank's total residential mortgage portfolio. Total residential mortgage loans were down 3% year-over-year and down 2% on a sequential basis. We adhere to cautious underwriting standards and are confident in the quality of our portfolio. This is reflected in our 65% proportion of insured mortgages and a low loan-to-value ratio of 51% on the uninsured portion.
Total allowances for credit losses on Slide 17 totaled $192.6 million, up $3.8 million compared to last quarter, mostly from higher allowances on commercial loans.
Turning to Slide 18. The provision for credit losses was $16.5 million, an increase of $1.3 million from a year ago from higher provisions on performing loans, partly offset by lower provisions on impaired loans. Sequentially, PCLs were down $1.5 million from lower provisions on impaired commercial loans, partly offset by lower releases of provisions on performing loans. As a percentage of average loans, PCLs increased by 1 basis point year-over-year and decreased by 2 basis points quarter-over-quarter to 18 bps.
Slide 19 provides an overview of impaired loans. Gross impaired loans decreased by $49 million year-over-year and $75.1 million sequentially, driven by changes in commercial loans. Thanks to our prudent underwriting standards and the strong credit quality of our loan portfolio by about 95% of which is collateralized, we're able to manage credit migration effectively with minimal impact on our ACL and PCL outcomes.
As we look ahead to the second quarter of 2026, I would like to provide some remarks. We will incur additional transaction-related charges in Q2 in the $40 million range post tax, including from the loss due to the discount on the sale of the syndicated loan portfolio to National Bank concluded on February 17. The expected Q2 impact from the sale of the syndicated loan portfolio is a loss of about $0.04 on adjusted EPS. We expect loans to decline by roughly 2% to 3%, mainly due to the syndicated loan portfolio sale.
Excluding this transaction, the loans should remain relatively stable. The NIM is expected to be slightly lower due to some nonrecurring items in Q1. Regarding the adjusted efficiency ratio, Q2 should be relatively in line with Q1. We expect PCLs to remain in the high teens. Our tax rate is also expected to be in the high teens. Capital and liquidity levels are solid and expected to remain strong for Q2.
I will now turn the call back to the operator.
[Operator Instructions] And your first question will be from Stephen Boland at Raymond James.
2. Question Answer
Just -- I know you said you still need regulatory approval. Could you just -- is that just OSFI and Minister approval? Is that the only 2 that are left at this point?
Stephen, it's Eric. Actually, we're -- the main ones we're waiting for is OSFI as well as the Competition Bureau. And after that would follow the Minister approval.
Okay. And the timing is, I think, in the disclosure, it is late 2026. That's the -- is there any more specific timing? I know dealing with OSFI and the Minister is always a bit of a crapshoot. So late 2026 is still the guidance?
Yes, yes. We're still aiming for that.
Okay. Second question is continued good growth in inventory finance. You talked a little bit about utilization. But what's driving that growth? Is it more dealers utilization? Is it Canada, U.S.? Maybe you could just flesh that out a bit, please?
Yes, Stephen. It's really a mix. Like we definitely continue our success track record in terms of onboarding. The newest program we actually won is Arctic Cat, which is an exclusivity, generating good traction again and will fuel future growth and continue on that side. But also the dealers have been restocking prudently, but still a good momentum there. So I think they anticipate, again, an okay season for 2026, and we're benefiting from that sentiment.
Okay. And I mean, obviously, I presume the people in the field are letting the clients know that there is a change in ownership with you potentially. What's the feedback? Is there -- is it positive? Do they care? I'm just curious what the message was to your salespeople, to top clients?
Well, actually, I had a great opportunity to be out there in the field with our people, meeting customers and the reaction is quite good. They understand the rationale of the transaction, and they're quite supportive. So far, we've seen that in additional volume and then good pipeline for future growth. So we're in good shape there.
[Operator Instructions] Seeing there's no further questions registered. This concludes the Q&A session. I will now hand the meeting over to Eric Provost for closing remarks.
Thank you. We're making steady progress towards closing the agreements with Fairstone and National Bank, all while keeping our customers and employees' best interest at the forefront. This is still work ahead of us, but I'm confident that we will achieve our objectives. Thank you, and have a great rest of the day.
Thank you. Ladies and gentlemen, this concludes the conference call for today. We thank you for joining and ask that you please disconnect your lines. Thank you.
Laurentian Bank Of Canada — Q1 2026 Earnings Call
Laurentian Bank Of Canada — Q4 2025 Earnings Call
1. Management Discussion
Welcome to the Laurentian Bank Financial Results Conference Call. Please note that this call is being recorded.
I would now like to turn the meeting over to Raphael Ambeault, Vice President, Finance and Investor Relations. Please go ahead, Raphael.
[Foreign Language] Good morning, and thank you for joining us. Today's opening remarks will be delivered by Eric Provost, President and CEO, and the review of the fourth quarter and annual financial results will be presented by Yvan Deschamps, Executive Vice President and CFO, after which we'll invite questions from the phone. Also joining us for the question period is Christian De Broux, Executive Vice President and CRO. All documents pertaining to the quarter can be found on our website in the Investor Relations section.
I'd like to remind you that during this conference call, forward-looking statements may be made and it is possible that actual results may differ materially from those projected in such statements. For the complete cautionary note regarding forward-looking statements, please refer to our press release or to Slide 2 of the presentation. I would also like to remind listeners that the bank assesses its performance on a reported and adjusted basis and considers both to be useful in assessing underlying business performance. Eric and Yvan will be referring to adjusted results in their remarks unless otherwise noted as reported.
I will now turn the call over to Eric.
[Foreign Language] Good morning. Thanks for being with us today. Our road map for 2025 was ambitious. We are proud to report that we delivered against our plan, achieving several transformational milestones. Notably, the deployment of cloud-based systems has significantly improved our operational efficiency, resilience and customer experience. These investments are foundational to building a bank that is agile, secure and well positioned for the future. Operational resiliency and redundancy were also meaningfully enhanced, enabling the bank to respond swiftly to change, maintain stability and ensure consistent service delivery to our clients. Elevated interest rates and moderated economic activity influenced other income streams, notably lending fees.
Despite these headwinds, net interest income increased year-over-year, reflecting a more favorable business mix and an improved net interest margin. Credit performance remained stable at 17 bps with slightly lower allowances for credit losses compared to 2024, supported by resilient asset quality and disciplined risk management. In line with the spending levels outlined in our strategic plan, we continue to make targeted investments in IT infrastructure during the fourth quarter. These planned and essential initiatives are designed to simplify operations, strengthen resiliency and deliver long-term efficiency gains for both our clients and shareholders. As a result, we closed the year with an adjusted efficiency ratio of 75.2%, aligned with our guidance.
The bank divestitures of assets under administration from the full-service and discount brokerage division earlier in the fiscal year contributed to lower noninterest expenses through reduced headcount and broker commissions while also driving higher other income from the associated gain on the sale of the division on a reported basis. Our capital and liquidity positions remained consistently strong throughout the year, reinforcing the bank's financial resilience and ability to navigate the current macroeconomic environment. This solid foundation provides the stability and flexibility required to support growth while staying firmly focused on executing our strategic priorities.
Throughout the year, we have achieved steady progress in strengthening our portfolio by increasing the proportion of commercial loans from 47% to 50%. Notably, commercial loan balances grew by 2% on a quarter-over-quarter basis and by 8% year-over-year. This strategic shift in our business mix contributed to an improvement in our net interest margin, which rose from 1.79% in the prior year to 1.83% in 2025.
Turning to the composition of our commercial growth. Our key specialization delivered strong results. Inventory financing closed at $4.2 billion, making an impressive 12% year-over-year increase. This performance was supported by an expansion of our dealer base of more than 3% and continued diversification into new segments, areas where we see meaningful opportunities for further growth.
In commercial real estate, activities started the year slowly, but interest rate reductions later in the year resulted in a notable improvement, particularly in rental construction. This momentum allowed us to expand our unfunded pipeline by 13% and grow our loan book by 11% year-over-year.
On the personal banking front, our continued engagement with customers allowed us to maintain a relatively stable deposit base within the retail segment while simultaneously building positive momentum in broker-sourced deposits. The agreements we announced earlier this week are aligned with the acceleration of our commercial specialization and the partnership strategy we had announced as part of our strategic plan.
In recent years, we have assessed multiple approach for our retail and SME banking services. However, the substantial investments needed to sustain a competitive position in the Canadian banking landscape, coupled with the evolving regulatory requirements and rising customer expectations have made it increasingly difficult to compete effectively.
Joining forces with Fairstone Bank will allow us to grow our specialized commercial business even further while maintaining our brand identity and head office in Montreal, where we were funded over 175 years ago. Partnering with National Bank, a leading Quebec-based institution will provide our customers with access to a broader suite of services and enhance modern technology. The press release regarding this announcement is available in the News Release section of our website and includes detailed information. As the special shareholder meeting to vote on these agreements is scheduled for the first quarter of 2026, the proxy circular will be published in early January.
With that, I'll turn it over to Yvan.
[Foreign Language] I would like to begin by turning to Slide 6, which highlights the bank's financial performance for 2025. Total reported revenue for the year was $983.7 million, down 3% compared to last year. On a reported basis, net income and diluted EPS were $139.9 million and $2.85, respectively. On an adjusted basis, the bank generated net income of $147.2 million in fiscal 2025 or $3 per share. Adjusting items after taxes include restructuring and other impairment charges of $8 million and a profit on sale of assets under administration of $0.6 million. Additional details are available on Slide 21 and in the 2025 annual report.
The remainder of my comments will be on an adjusted basis and focus on the fourth quarter. Total revenue, as displayed on Slide 7, was $244.7 million, up 3% year-over-year, mainly from higher net interest income, driven by favorable business mix and the growth of average earning assets. Diluted EPS of $0.73 was down 18% year-over-year and down 6% quarter-over-quarter. Net income of $34.2 million was down by 16% compared to last year and down 14% compared to last quarter. The bank's efficiency ratio increased by 60 basis points compared to last year, but declined by 10 basis points compared to last quarter. The increase year-over-year reflects our ongoing investments in strategic priorities. Our ROE for the fourth quarter stood at 5%, down by 40 basis points from last quarter.
Slide 8 displays net interest income up by $8.8 million or 5% year-over-year, mainly driven by favorable shifts in the bank's business mix, notably with respect to the commercial loan mix. On a sequential basis, net interest income was down by $3.2 million or 2%, reflecting a seasonal decline in average inventory financing loan volumes during the quarter. Early signs of the buildup season appeared late in Q4, while real estate growth partially offset residential mortgage headwinds. Our net interest margin was up by 2 basis points year-over-year and down 3 basis points sequentially at 1.79%, essentially for the same reasons.
Slide 9 highlights the bank's funding position. We manage our funding in line with our loan book. On a quarterly basis, total funding was down by $100 million. Lower wholesale deposits largely contributed to this decrease due to the maturity of a $340 million senior deposit note. The $400 million increase in deposits sourced from the advisers and brokers channel was offset by a reduction in partnership deposits. Cost-efficient long-term debt related to securitization activities increased by $200 million over the quarter. The bank maintained a healthy liquidity coverage ratio remaining at the high end of the industry.
Slide 10 presents other income of $62.1 million, which was 1% lower compared to last year and 2% higher compared to last quarter. Quarterly increase in other income is driven primarily by higher lending fees and reflects the stronger momentum in commercial real estate activity towards the end of the fourth quarter.
Slide 11 shows noninterest expenses of $185.1 million, up 4% compared to last year, mainly due to higher salaries and employee benefits, together with higher technology costs as the bank pursues investments in infrastructure and strategic objectives. On a sequential basis, noninterest expenses were down 1%, primarily due to lower employee benefits costs.
On Slide 12, you will observe that our CET1 ratio remained stable at 11.3%. We are maintaining a solid capital position, and we are well positioned to redeploy capital. Slide 13 highlights our commercial loan portfolio, which was up $1.3 billion or 8% year-over-year and up $400 million or 2% on a sequential basis, both of which were mainly driven by the growth of commercial real estate pipeline.
Slide 14 provides details of our inventory financing portfolio. This quarter, utilization rates were 41%, remaining below historical averages, normally in the high 40s. Slide 15 illustrates that most of our commercial real estate portfolio is focused on multi-residential housing with our exposure to the office segment at around 4% of our commercial loan portfolio. As noted in previous quarters, the bulk of our portfolio consists of multi-tenant properties with minimal exposure to single-tenant buildings.
Slide 16 presents the bank's residential mortgage portfolio. Residential mortgage loans were down 2% year-over-year and down 1% on a sequential basis. We adhere to cautious underwriting standards and are confident in the quality of our portfolio. This is reflected in our 63% proportion of insured mortgages and a low loan-to-value ratio of 50% on the uninsured portion.
Allowances for credit losses on Slide 17 totaled $189 million, down $15 million compared to last year and $1.1 million compared to last quarter, mainly due to lower allowances on performing loans, partly offset by an increase in allowances on impaired loans, notably commercial loans.
Turning to Slide 18. The provision for credit losses was $18 million, an increase of $7.6 million from a year ago, impacted by higher provisions on impaired loans, partly offset by higher releases on performing loans. Sequentially, PCLs were up $6.9 million, mainly from higher provisions on impaired commercial loans. As a percentage of average loans and acceptances, PCLs increased by 8 basis points year-over-year and quarter-over-quarter to 20 basis points. Slide 19 provides an overview of impaired loans. On a year-over-year basis, gross impaired loans increased by $47.1 million or by $6.5 million sequentially. Thanks to our prudent underwriting standards and the strong credit quality of our portfolio, about 95% of which is collateralized, we're able to manage credit migration effectively with minimal impact on our ACL and PCL outcomes. We remain committed to a prudent and disciplined approach to risk management.
I will now turn the call back to the operator.
[Operator Instructions] And your first question will be from Stephen Boland at Raymond James.
2. Question Answer
Maybe, Eric, if you could just talk about the evolution of the transaction. We all know you went through a formal kind of process a couple of years ago before you took over. I'm just wondering how this transaction started and got to this point?
Stephen, well, actually, as per our strategic plan release in May 2024, like we clearly made it a priority to seek out partnership and to try to explore avenues for all business lines. And as you can see, we took actions throughout the year, but it was definitely through various interactions that we landed in terms of discussions engaging with Fairstone. And you're going to have way more details when we publish a proxy in the upcoming weeks.
Okay. That's great. Second question, which you're probably getting a lot of. Can you just talk about the dividend sustainability here until closing? Is there any thoughts of closing or shutting the -- reducing the dividend? Is there anything in the purchase agreement about that? And just I'll add a third here, just on the same topic kind of thing. Do you expect any issues on closing the branches? I know Quebec can be very -- they're not your regulator, but certainly, the government is always protective of employment. Maybe you could just touch on those 2 things.
Thank you, Stephen, and thank you for raising the question on dividend. We also did receive a lot of questions on it. So I'll answer that portion, and Eric will step in for your last question. So on the dividend side, as you see this morning, we declared the $0.47 dividend on the common shares. So there is no restrictions on paying dividend in the agreement. The only restriction is that we're not allowed to increase the dividend going forward.
Stephen, I'll take the branches and employees. This is the hardest part of the decision we took because it impacts colleagues and people that have been working with us for some time, a very long time. So in terms of branches like this, this is physical presence, the fact that we're going to National Bank, they have an extended network across the province, which we believe will be well received in terms of point of service for our customers.
And in terms of employment, we announced the fact that National Bank has offered a post-transition channel to actually prioritize posting and opportunities for the employees that will be impacted and terminated by this announcement. So I feel good about our approach towards the regulatory approvals, and we're confident we're going to get the right levels of support.
[Operator Instructions] We'll go next to Sohrab Movahedi at BMO Capital Markets.
I just wanted to confirm that you intend to continue with your investment agenda here, Eric and Yvan. And to the extent that you continue to make the investments, if you could kind of -- I suppose, portion it out as to how much of investments to date have been more in favor of the commercial franchise as opposed to the retail and SME and what the split may look like on a go-forward basis as well?
Yes, it's a great question, Sohrab. And our #1 goal is to execute on conversion getting to closing, like the migration towards National Bank will become definitely our priority. So there's a portion that's going to go there. And yes, like we've been working throughout the last 1.5 years on improving foundational and making sure that we create the right resiliency and redundancy. And part of it is focused and will be focused towards keeping the momentum towards our specialized group. So it's going to be really a split, but big focus will be on conversion.
Okay. And Eric, as obviously -- I mean, you're in the midst of something and we'll learn more about the details when the proxy becomes available. But is the bank now mostly focused on ensuring that -- are you more managing the downside risk? Or are you still trying to deploy capital and I don't know, grow the bank and the loan book and all of that?
Well, yes. So first and foremost, like our customers from a retail standpoint is our focus in terms of maintaining level of services, making sure that our people are taken care of and that we have a clear game plan towards executing our path towards National Bank migration. But for the rest, like this is the future path in terms of being a specialized bank. So we're fully engaged with our customer base on the commercial front, our specialized group, inventory financing, equipment financing and commercial real estate. The instructions to our team is definitely to continue and grow and seek out business that we want to continue into. So that continues.
Okay. So not to belabor the point, but it is possible then I suppose -- like, I mean, let me ask the question a little bit directly. Do you have capital for SME growth? Or is that more in a controlled amortization mode until the deal closes?
Yes. I'll be clear, Sohrab. So we're still in business, and we want to grow this bank. So as mentioned by Eric, definitely, the future is on the commercial side. But we're going to work with National to support our customers as well, and that includes the retail and the SME. And we want to make sure that those customers are well treated, and we're going to keep them. And definitely, the focus of the bank going forward is going to be on the commercial side. But we've mentioned for the last many quarters that we have a lot of liquidity and capital, and we still have resources that we can redeploy.
[Operator Instructions] Seeing we have no other questions registered. This concludes the Q&A session. I will now hand the meeting over to Eric Provost for closing remarks.
Thank you. This week marks the beginning of a new chapter for Laurentian Bank. As we look to the months ahead, our priorities are clear. We will work relentlessly and diligently to close the agreements with Fairstone Bank and National Bank while having our customers and employees' best interest at heart. Our priority is to ensure uninterrupted excellent service for our customers during this transition. Wishing you all a wonderful holiday season. Thank you.
Thank you, sir. Ladies and gentlemen, this concludes your conference call for today. We thank you for joining and ask that you please disconnect your lines. Thank you.
Laurentian Bank Of Canada — Q4 2025 Earnings Call
Financial data from Laurentian Bank Of Canada
Revenue
Revenue is the sum of all sales generated by a company, e.g. for its products or services.
Revenue (TTM) metric explainedDirect Costs
Direct costs are the costs incurred directly in connection with the manufacture of the product or service.
Gross Profit
Gross Profit indicates how much of the revenue remains in the company after deducting direct production costs. If the percentage share of sales is calculated, this is referred to as the gross margin.
Gross Profit metric explainedSelling and Administrative Expenses
Selling, general and administrative expenses (SG&A) include all expenses for marketing and sales as well as the general administration of the company.
Research and Development Expense
Research and development costs (R&D) provide information on how much the company invests in the research and development of its products. The costs are particularly interesting as a percentage of revenue and in comparison to direct competitors.
EBITDA
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is the company's earnings before interest, taxes, depreciation and amortization. The EBITDA margin is calculated as a percentage of sales.
Depreciation and Amortization
Depreciation represents reductions in the value of the company's assets (e.g. due to wear and tear on machinery).
EBIT (Operating Income)
EBIT (Earnings Before Interest and Taxes) is the company's profit before interest and taxes, also known as the operating income. The EBIT Margin is calculated as a percentage of sales at
.
Net Profit
Net Profit represents the profit or loss after deduction of all costs.
Net Profit metric explainedStocksGuide Premium
| Jul '26 |
+/-
%
|
||
| Revenue | 952 952 |
4%
4%
100%
|
|
| - Interest Income | 752 752 |
3%
3%
79%
|
|
| - Non-Interest Income | 200 200 |
24%
24%
21%
|
|
| Interest Expense | 1,299 1,299 |
7%
7%
137%
|
|
| Non-Interest Expense | -896 -896 |
19%
19%
-94%
|
|
| Loan Loss Provisions | 87 87 |
63%
63%
9%
|
|
| Net Profit | -22 -22 |
117%
117%
-2%
|
|
In millions CAD.
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Laurentian Bank Of Canada Stock News
Company Profile
Laurentian Bank of Canada engages in the provision of financial services. The company is headquartered in Montreal, Quebec. The company offers a range of financial services and advice-based solutions to customers across Canada and the United States. Its Personal and Commercial Banking segment provides a range of financial services and advice-based solutions for personal and commercial banking customers across Canada and the United States. The Bank provides its personal banking customers with financial advice for their day-to-day banking, financing, protection and investing needs. Its commercial banking business specializes in four main areas: real estate financing, equipment financing and inventory financing, commercial small and mid-sized business financing, and syndication. Its products and services include bank accounts, transactional packages, term deposits, mutual funds, credit cards, unsecured credit, residential real estate secured financing and creditor protection. The Bank also provides daily banking services.
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| Head office | Canada |
| CEO | Mr. Provost |
| Employees | 2,682 |
| Website | www.laurentianbank.ca |
