Laurentian Bank of Canada (TSE:LB) Posts Earnings Results

Laurentian Bank of Canada (TSE:LB) posted its quarterly earnings data on Friday. The company reported C$0.46 earnings per share (EPS) for the quarter, FiscalAI reports. The business had revenue of C$236.16 million for the quarter. Laurentian Bank of Canada had a return on equity of 2.86% and a net margin of 3.72%.

Here are the key takeaways from Laurentian Bank of Canada’s conference call:

• Laurentian Bank said it made meaningful progress on the planned transactions with National Bank and Fairstone, with Competition Act approval now satisfied and both deals still expected to close by the end of 2026.
• The bank reported strong commercial loan growth in its specialization teams, including 5% quarter-over-quarter growth in inventory financing and a 9% increase in the commercial real estate pipeline.
• Adjusted second-quarter results were softer, with net income of CAD 22.6 million, EPS of CAD 0.46, and an ROE of 3.4%, while revenue declined year-over-year and sequentially.
• Provision for credit losses rose to 31 basis points, mainly because of one large commercial file in a sector the bank no longer serves, which management described as an isolated issue.
• Management guided to additional Q3 transaction-related charges of about CAD 40 million pre-tax, with loans expected to decline 2% to 3% and PCLs likely in the high teens.

Laurentian Bank of Canada Trading Down 0.5%

LB opened at C$40.25 on Friday. The company has a fifty day simple moving average of C$40.26 and a 200 day simple moving average of C$39.36. The firm has a market cap of C$1.80 billion, a price-to-earnings ratio of 26.83, a PEG ratio of 0.76 and a beta of 1.23. Laurentian Bank of Canada has a twelve month low of C$28.34 and a twelve month high of C$40.49.

Laurentian Bank of Canada Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, May 1st. Stockholders of record on Friday, May 1st were paid a $0.47 dividend. The ex-dividend date was Wednesday, April 1st. This represents a $1.88 annualized dividend and a dividend yield of 4.7%. Laurentian Bank of Canada’s dividend payout ratio is 125.33%.

Analyst Ratings Changes

Separately, Desjardins reduced their target price on Laurentian Bank of Canada from C$50.00 to C$40.00 and set a “tender” rating on the stock in a research report on Monday, February 9th. Two equities research analysts have rated the stock with a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Strong Sell” and an average price target of C$36.44.

About Laurentian Bank of Canada

Founded in Montreal in 1846, Laurentian Bank is committed to serving its customers and fostering deep relationships with specialized groups. Laurentian Bank runs operations across Canada – primarily in Québec and Ontario – as well as in the United States and competes where it sees market opportunity and has an edge, while harnessing the power of partnerships and collaboration.