Laurentian Bank of Canada T.LB.PR.H

Primary Symbol: T.LB Alternate Symbol(s): LRCDF | LAUCF

Financial Services

Laurentian Bank of Canada (the Bank) is a Canada-based provider of financial services to its personal, commercial and institutional customers. The Bank operates in Canada and the United States. Its segments include Personal Banking, Commercial Banking and Capital Markets. The Personal Banking segment caters to the financial needs of retail clients. The Commercial Banking segment caters to the financial needs of business clients across Canada and in the United States and provides commercial banking, real estate financing, and equipment and inventory financing. The Capital Markets segment provides a range of services, including research, market analysis and advisory services, corporate underwriting for debt and equity, and administrative services. The Bank's clients can access its offering of financial advice, products and services through a network of branches in Quebec. The Bank offers a digital direct-to-customer platform to all Canadians. The Bank has approximately 57 branches.

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Laurentian Bank of Canada > Q3, strategic review, bought a bit more, CEO

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Comment by DeanEdmontonon Aug 31, 2023 2:32pm

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Post# 35614291

RE:Q3, strategic review, bought a bit more, CEO

NorthF - Interesting analysis and perspective. Well thought out and reasonable, even if I don't share the same view of the outcomes. Look forward to seeing which view pervails in the end. One comment on their results, if they had taken LLP at the same level as the other Banks, their results would not be remotely what they are. I would say they are lowballing the LLPs.

Northforce13 wrote: Q3 was pretty good, better than hoped, particularly in light of how poorly peers are doing. If LB continues to show slowly growing ROE during coming quarters, the P/B multiple will rerate as well, regardless of what happens with the strategic review. This provides an underlying cushion of safety and the possibilty of price appreciation from current levels if an acqusition does not happen.

Stratic Review: Also positive, clearly there are multiple offers on the table they are working through. LB spent 2 mil +/- on legal fees in Q3 on this and claims that expense is on going. The review will likely conclude in 2-3 months, rough guesstimate. Other industries take longer, but I don't think it will take that long in this case. Bidders bid with due diligence provision conditions, etc. Meanwhile the board of directors and CEO do what they can to subtly ensure that the company isn't sold, so that they can keep their jobs (also normal). They might seek to claim in 2-3 months that no suitable offers were received, even though share holders would almost certainly take most of those "unsuitable" offers. Then there comes the possibility of a "hostile" takeover, whereby an offerer presents its offer directly to share holders. These situations are always interesting.

Bought a bit more: Took a bit more at 37.24.

CEO: In general I don't like women CEOs. I do like this one, in terms of she seems to be on the ball and fairly smart. Problem of course is she does not want to lose her job as CEO of a bank, so she wants to steer things towards the continuation of her "3 year turnaround plan" that is 2 years in.

This is going to be an interesting ride.

GLTA