Laurentian Bank of Canada T.LB

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

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.

TSX:LB - Post by User

Laurentian Bank of Canada > cibc flash research: target C$28

<< Previous

Bullboard Posts

Next >>

Comment by DeanEdmontonon Aug 31, 2024 10:50am

126 Views

Post# 36203943

RE:cibc flash research: target C$28

Results couldn't be a lot worse. Rising expenses, shrinking loans and deposit along with no evidence of a trun around from the NEW CEO and Execs. About par for the course with this Bank over the past 40 years, but worse over the past 10 years. They seem to be trying to shrink their way to greatness.

I sure feel sorry for anyone who is holding onto this stocklong term. Outside of short term trading on the buck or two swings, not much upside.

perplexed01 wrote: FQ3 First Look: Nothing To Show A Turnaround

Our take: Neutral. LB reported a modest EPS beat, mostly on the release of performing credit allowances. PTPP of $68MM was effectively in line with the consensus estimate of $69MM.

Overview of results: Adjusted EPS came in at .88 versus consensus of .86 and our estimate of .84. Adjusted ROE was 6.2%, unchanged from last quarter. Book value per share was $56.97, increasing only 0.3% sequentially due to impairment and severance charges.

Sources of variance: Positive sources of variance relative to our estimate include higher capital markets related revenue (CMRR) (+.14/sh) and lower PCLs (+.05/sh). This was partially offset by higher operating expenses (-.10/sh) and lower lending NII (-.04/sh).

Total PCLs helped by performing release: Total PCLs were $16.3MM (18bps), better than our estimate of $19.0MM (21bps) and lower than FQ2 at $17.9MM (20bps). Performing provisions were negative $11.8MM (release) and impaired provisions were essentially flat sequentially at $28.1MM.

NII lower on lower AEA: Lending NII came in at $181MM, up <1% sequentially and ~1% below our forecast. NIM was flat Q/Q and AEA declined ~1% in total.

Loans decline across all categories: Total gross loans and acceptances declined 3.3% Q/Q. Commercial loans declined 3.9%, personal loans declined 5.3% and residential mortgages declined 2.4%.

Operating leverage remains negative: Total expenses of $188MM increased 5% Y/Y. Adjusted operating leverage came in at negative 7%. The bank reported another restructuring charge in the quarter, as expected. Charges totalled $9MM versus $7MM expected and down from $156MM last quarter.

Deposits decline: Total deposits declined 5.2% Q/Q, worse than -1.9% in FQ2. Demand deposits declined 3.8% versus a 5.7% decline in FQ2. Term deposits declined 5.7% Q/Q, versus flat in FQ2.

CET1 ratio: Reported CET1 was 10.9%, up from 10.4% last quarter.