|
The financial
information reported herein is based on the condensed interim
consolidated (unaudited) information for the three-month period
ended October 31, 2024 and on the Audited Consolidated
Financial Statements for the year ended October 31, 2024, and
has been prepared in accordance with International Financial
Reporting standards (IFRS), as issued by the International
Accounting Standards Board (IASB). All amounts are denominated in
Canadian dollars. The Laurentian Bank of Canada and its entities
are collectively referred to as "Laurentian Bank" or the "Bank" and
provide deposit, investment, loan, securities, trust and other
products or services.
The Bank's 2024 Annual
Report (which includes the Audited Consolidated Financial
Statements and accompanying Management's Discussion & Analysis)
will be available today on the Bank's website at
www.laurentianbank.ca and on SEDAR+ at www.sedarplus.ca.
|
MONTREAL, Dec. 6, 2024
/CNW/ - Laurentian Bank of Canada
reported a net loss of $5.5 million
and a diluted loss per share of $0.41
for the year ended October 31, 2024,
compared with net income of $181.1
million and diluted earnings per share of $3.89 for the year ended October 31, 2023. Return on common shareholders'
equity was a negative 0.7% for the year ended October 31, 2024, compared with 6.6% for the year
ended October 31, 2023. Of note,
reported results for the year ended October
31, 2024 included restructuring and other impairment charges
of $228.4 million ($179.0 million after income taxes), or
$4.09 per share, related to the
restructuring of the Bank's operations and to the impairment of the
Personal & Commercial (P&C) Banking segment recorded in the
second quarter of 2024. Refer to the Non-GAAP Financial and Other
Measures section for further details. Adjusted net
income(1) was $168.7 million and adjusted diluted earnings
per share(2) were $3.57
for the year ended October 31, 2024,
compared with $208.3 million and
$4.52 for the year ended October 31, 2023. Adjusted return on common
shareholders' equity(2) was 6.1% for the year ended
October 31, 2024, compared with 7.7%
a year ago.
For the fourth quarter of 2024, reported net income was
$40.7 million and diluted earnings
per share were $0.88, compared with
net income of $30.6 million and
diluted earnings per share of $0.67
for the fourth quarter of 2023. Return on common shareholders'
equity was 6.2% for the fourth quarter of 2024, compared with 4.5%
for the fourth quarter of 2023. Adjusted net
income(1) was $40.9 million and adjusted diluted earnings
per share(2) were $0.89
for the fourth quarter of 2024, compared with $44.7 million and $1.00 for the fourth quarter of 2023. Adjusted
return on common shareholders' equity(2) was 6.2% for
the fourth quarter of 2024, compared with 6.6% a year ago.
"Six months after presenting our strategic plan, I am pleased
with the progress we've made to strengthen our organization and
foundations", said Éric Provost, President & CEO. "Our solid
capital and liquidity levels position us well for future asset
growth. Looking ahead to 2025, our focus is on executing on our key
priorities. We will keep growing our specializations and making the
right decisions to improve our profitability, while always
maintaining a strong customer-centric approach at the core of
everything we do."
|
For the three months
ended
|
|
For the year
ended
|
|
In millions of dollars,
except per share and percentage amounts (Unaudited)
|
October 31,
2024
|
|
October 31,
2023
|
|
Variance
|
|
October 31,
2024
|
|
October 31,
2023
|
|
Variance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
basis
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
40.7
|
|
$
30.6
|
|
33 %
|
|
$
(5.5)
|
|
$ 181.1
|
|
(103) %
|
|
Diluted earnings
(loss) per share
|
$
0.88
|
|
$
0.67
|
|
31 %
|
|
$
(0.41)
|
|
$
3.89
|
|
(111) %
|
|
Return on common
shareholders' equity(2)(3)
|
6.2 %
|
|
4.5 %
|
|
|
|
(0.7) %
|
|
6.6 %
|
|
|
|
Efficiency
ratio(4)
|
77.5 %
|
|
79.7 %
|
|
|
|
96.1 %
|
|
73.5 %
|
|
|
|
Common Equity Tier 1
(CET1) capital ratio(5)
|
10.9 %
|
|
9.9 %
|
|
|
|
10.9 %
|
|
9.9 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
basis
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net
income(1)
|
$
40.9
|
|
$
44.7
|
|
(8) %
|
|
$
168.7
|
|
$ 208.3
|
|
(19) %
|
|
Adjusted diluted
earnings per share(2)
|
$
0.89
|
|
$
1.00
|
|
(11) %
|
|
$
3.57
|
|
$
4.52
|
|
(21) %
|
|
Adjusted return on
common shareholders' equity(2)(3)
|
6.2 %
|
|
6.6 %
|
|
|
|
6.1 %
|
|
7.7 %
|
|
|
|
Adjusted efficiency
ratio(2)
|
75.0 %
|
|
72.0 %
|
|
|
|
73.8 %
|
|
69.9 %
|
|
|
|
(1)
|
This is a non-GAAP
financial measure. For more information, refer to the Non-GAAP
Financial and Other Measures below and beginning on page 20 of the
2024 Annual Report, including the Management's Discussion &
Analysis (MD&A) for the year ended October 31, 2024, which
pages are incorporated by reference herein. The MD&A is
available on SEDAR+ at www.sedarplus.ca.
|
|
(2)
|
This is a non-GAAP
ratio. For more information, refer to the Non-GAAP Financial and
Other Measures section below and beginning on page 20 of the 2024
Annual Report, including the MD&A for the year ended October
31, 2024, which pages are incorporated by reference
herein.
|
|
(3)
|
Effective November 1,
2023, the Bank retrospectively adopted IFRS 17, Insurance
contracts, which required restatement of the Bank's 2023
comparative information and financial measures. Refer to
Note 2 in the Consolidated Financial Statements for further
information.
|
|
(4)
|
This is a supplementary
financial measure. For more information, refer to the Non-GAAP
Financial below and beginning on page 20 of the 2024 Annual Report,
including the MD&A for the year ended October 31, 2024, which
pages are incorporated by reference herein.
|
|
(5)
|
In accordance with the
Office of the Superintendent of Financial Institutions' (OSFI)
"Capital Adequacy Requirements" guideline.
|
Highlights
|
For the three months
ended
|
|
For the year
ended
|
|
In thousands of
dollars, except per share and percentage amounts
(Unaudited)
|
October 31
2024
|
|
July 31
2024
|
|
Variance
|
|
October 31
2023
|
|
Variance
|
|
October 31
2024
|
|
October 31
2023
|
|
Variance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
$
250,771
|
|
$
256,503
|
|
(2) %
|
|
$
247,445
|
|
1 %
|
|
$
1,018,209
|
|
$
1,025,510
|
|
(1) %
|
|
Net income
(loss)
|
$
40,661
|
|
$
34,104
|
|
19 %
|
|
$
30,623
|
|
33 %
|
|
$
(5,499)
|
|
$ 181,087
|
|
(103) %
|
|
Adjusted net
income(1)
|
$
40,945
|
|
$
43,052
|
|
(5) %
|
|
$
44,719
|
|
(8) %
|
|
$
168,662
|
|
$ 208,345
|
|
(19) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
performance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per share(2)
|
$
0.88
|
|
$ 0.67
|
|
31 %
|
|
$ 0.67
|
|
31 %
|
|
$
(0.41)
|
|
$ 3.89
|
|
(111) %
|
|
Adjusted diluted
earnings per share(2)(3)
|
$
0.89
|
|
$ 0.88
|
|
1 %
|
|
$ 1.00
|
|
(11) %
|
|
$
3.57
|
|
$ 4.52
|
|
(21) %
|
|
Return on common
shareholders' equity(3)(4)
|
6.2 %
|
|
4.7 %
|
|
|
|
4.5 %
|
|
|
|
(0.7) %
|
|
6.6 %
|
|
|
|
Adjusted return on
common shareholders' equity(3)(4)
|
6.2 %
|
|
6.2 %
|
|
|
|
6.6 %
|
|
|
|
6.1 %
|
|
7.7 %
|
|
|
|
Net interest
margin(5)
|
1.77 %
|
|
1.79 %
|
|
|
|
1.76 %
|
|
|
|
1.79 %
|
|
1.79 %
|
|
|
|
Efficiency
ratio(5)
|
77.5 %
|
|
78.1 %
|
|
|
|
79.7 %
|
|
|
|
96.1 %
|
|
73.5 %
|
|
|
|
Adjusted efficiency
ratio(3)
|
75.0 %
|
|
73.3 %
|
|
|
|
72.0 %
|
|
|
|
73.8 %
|
|
69.9 %
|
|
|
|
Operating
leverage(5)
|
0.7 %
|
|
49.7 %
|
|
|
|
(8.9) %
|
|
|
|
(30.6) %
|
|
(8.2) %
|
|
|
|
Adjusted operating
leverage(3)
|
(2.1) %
|
|
0.6 %
|
|
|
|
(4.8) %
|
|
|
|
(5.4) %
|
|
(5.1) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial
position ($ millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and
acceptances
|
$
35,259
|
|
$
35,065
|
|
1 %
|
|
$
37,074
|
|
(5) %
|
|
$
35,259
|
|
$
37,074
|
|
(5) %
|
|
Total
assets(4)
|
$
47,401
|
|
$
47,461
|
|
— %
|
|
$
49,893
|
|
(5) %
|
|
$
47,401
|
|
$
49,893
|
|
(5) %
|
|
Deposits
|
$
23,164
|
|
$
23,336
|
|
(1) %
|
|
$
26,027
|
|
(11) %
|
|
$
23,164
|
|
$
26,027
|
|
(11) %
|
|
Common shareholders'
equity(1)(4)
|
$
2,524
|
|
$
2,502
|
|
1 %
|
|
$
2,616
|
|
(4) %
|
|
$
2,524
|
|
$
2,616
|
|
(4) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basel III regulatory
capital ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Equity Tier 1
(CET1) capital ratio(6)
|
10.9 %
|
|
10.9 %
|
|
|
|
9.9 %
|
|
|
|
10.9 %
|
|
9.9 %
|
|
|
|
Total risk-weighted
assets ($ millions)(6)
|
$
20,862
|
|
$
20,682
|
|
|
|
$
22,575
|
|
|
|
$
20,862
|
|
$
22,575
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit
quality
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross impaired loans
as a % of loans and acceptances(5)
|
1.07 %
|
|
1.08 %
|
|
|
|
0.62 %
|
|
|
|
1.07 %
|
|
0.62 %
|
|
|
|
Net impaired loans as
a % of loans and acceptances(5)
|
0.88 %
|
|
0.84 %
|
|
|
|
0.46 %
|
|
|
|
0.88 %
|
|
0.46 %
|
|
|
|
Provision for credit
losses as a % of average loans and
acceptances(5)
|
0.12 %
|
|
0.18 %
|
|
|
|
0.18 %
|
|
|
|
0.17 %
|
|
0.17 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common share
information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Closing share
price(7)
|
$
26.08
|
|
$ 26.74
|
|
(2) %
|
|
$ 25.40
|
|
3 %
|
|
$ 26.08
|
|
$
25.40
|
|
3 %
|
|
Price / earnings ratio
(trailing four quarters)(5)
|
(63.6)
x
|
|
(42.4)
x
|
|
|
|
6.5 x
|
|
|
|
(63.6)
x
|
|
6.5 x
|
|
|
|
Book value per
share(3)(4)
|
$
57.36
|
|
$ 56.97
|
|
1 %
|
|
$ 59.96
|
|
(4) %
|
|
$ 57.36
|
|
$
59.96
|
|
(4) %
|
|
Dividends declared per
share
|
$
0.47
|
|
$ 0.47
|
|
— %
|
|
$ 0.47
|
|
— %
|
|
$
1.88
|
|
$ 1.86
|
|
1 %
|
|
Dividend
yield(5)
|
7.2 %
|
|
7.0 %
|
|
|
|
7.4 %
|
|
|
|
7.2 %
|
|
7.3 %
|
|
|
|
Dividend payout
ratio(5)
|
53.3 %
|
|
69.8 %
|
|
|
|
69.8 %
|
|
|
|
n.m.
|
|
47.7 %
|
|
|
|
Adjusted dividend
payout ratio(3)
|
52.9 %
|
|
53.6 %
|
|
|
|
47.1 %
|
|
|
|
52.7 %
|
|
41.1 %
|
|
|
|
(1)
|
This is a non-GAAP
financial measure. For more information, refer to the Non-GAAP
Financial and Other Measures section below and beginning on page 20
of the 2024 Annual Report, including the MD&A for the year
ended October 31, 2024, which pages are incorporated by reference
therein.
|
|
(2)
|
The sum of the
quarterly earnings per share may not equal to the cumulative
earnings per share due to rounding.
|
|
(3)
|
This is a non-GAAP
ratio. For more information, refer to the Non-GAAP Financial and
Other Measures section below and beginning on page 20 of the 2024
Annual Report, including the MD&A for the year ended October
31, 2024, which pages are is incorporated by reference
therein.
|
|
(4)
|
Effective November 1,
2023, the Bank retrospectively adopted IFRS 17, Insurance
contracts, which required restatement of the Bank's 2023
comparative information and financial measures. Refer to
Note 2 in the Consolidated Financial Statements for further
information.
|
|
(5)
|
This is a supplementary
financial measure. For more information, refer to the Non-GAAP
Financial and Other Measures section below and beginning on page 20
of the 2024 Annual Report, including the MD&A for the year
ended October 31, 2024, which pages are incorporated by reference
therein.
|
|
(6)
|
In accordance
with OSFI's "Capital Adequacy Requirements" guideline. Refer
to the Capital Management section beginning on page 35 of the 2024
Annual Report for more information.
|
|
(7)
|
Toronto Stock Exchange
(TSX) closing market price.
|
Non-GAAP Financial and Other Measures
In addition to financial measures based on generally accepted
accounting principles (GAAP), management uses non-GAAP financial
measures to assess the Bank's underlying ongoing business
performance. Non-GAAP financial measures presented throughout this
document are referred to as "adjusted" measures and exclude amounts
designated as adjusting items. Adjusting items include the
amortization of acquisition-related intangible assets, and certain
items of significance that arise from time to time which management
believes are not reflective of underlying business performance.
Non-GAAP financial measures are not standardized financial measures
under the financial reporting framework used to prepare the
financial statements of the Bank and might not be comparable to
similar financial measures disclosed by other issuers. The Bank
believes non-GAAP financial measures are useful to readers in
obtaining a better understanding of how management assesses the
Bank's performance and in analyzing trends.
The following tables show a reconciliation of the non-GAAP
financial measures to their most directly comparable financial
measure that is disclosed in the primary financial statements of
the Bank.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
— CONSOLIDATED STATEMENT OF INCOME
|
For the three months
ended
|
|
For the year
ended
|
|
In thousands of dollars
(Unaudited)
|
October 31
2024
|
|
July 31
2024
|
|
October 31
2023
|
|
October 31
2024
|
|
October 31
2023
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
$
250,771
|
|
$ 256,503
|
|
$ 247,445
|
|
$
1,018,209
|
|
$
1,025,510
|
|
|
|
|
|
|
|
|
|
|
|
Less: Adjusting items,
before income taxes
|
|
|
|
|
|
|
|
|
|
|
Profit on sale of
assets under administration(1)
|
13,959
|
|
—
|
|
—
|
|
13,959
|
|
—
|
|
Adjusted total
revenue
|
$
236,812
|
|
$ 256,503
|
|
$ 247,445
|
|
$
1,004,250
|
|
$
1,025,510
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
expenses
|
$
194,458
|
|
$ 200,239
|
|
$ 197,281
|
|
$
978,872
|
|
$ 753,490
|
|
|
|
|
|
|
|
|
|
|
|
Less: Adjusting items,
before income taxes
|
|
|
|
|
|
|
|
|
|
|
P&C Banking segment
impairment charges(2)
|
—
|
|
—
|
|
—
|
|
155,933
|
|
—
|
|
Restructuring and other
impairment charges(3)
|
16,463
|
|
9,112
|
|
12,544
|
|
72,483
|
|
18,170
|
|
Strategic
review-related charges(4)
|
—
|
|
—
|
|
3,362
|
|
—
|
|
5,929
|
|
Amortization of
acquisition-related intangible assets(5)
|
333
|
|
3,007
|
|
3,230
|
|
9,786
|
|
12,839
|
|
16,796
|
|
12,119
|
|
19,136
|
|
238,202
|
|
36,938
|
|
Adjusted
non-interest expenses
|
$
177,662
|
|
$ 188,120
|
|
$ 178,145
|
|
$
740,670
|
|
$ 716,552
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
$
45,873
|
|
$
39,981
|
|
$
33,495
|
|
$
(22,215)
|
|
$ 210,413
|
|
|
|
|
|
|
|
|
|
|
|
Adjusting items, before
income taxes (detailed above)
|
2,837
|
|
12,119
|
|
19,136
|
|
224,243
|
|
36,938
|
|
Adjusted income
before income taxes
|
$
48,710
|
|
$
52,100
|
|
$
52,631
|
|
$
202,028
|
|
$ 247,351
|
|
|
|
|
|
|
|
|
|
|
|
Reported net income
(loss)
|
$
40,661
|
|
$
34,104
|
|
$
30,623
|
|
$
(5,499)
|
|
$ 181,087
|
|
|
|
|
|
|
|
|
|
|
|
Adjusting items, net of
income taxes
|
|
|
|
|
|
|
|
|
|
|
Profit on sale of
assets under administration(1)
|
(12,110)
|
|
—
|
|
—
|
|
(12,110)
|
|
—
|
|
P&C Banking segment
impairment charges(2)
|
—
|
|
—
|
|
—
|
|
125,629
|
|
—
|
|
Restructuring and other
impairment charges(3)
|
12,145
|
|
6,700
|
|
9,223
|
|
53,333
|
|
13,358
|
|
Strategic
review-related charges(4)
|
—
|
|
—
|
|
2,472
|
|
—
|
|
4,359
|
|
Amortization of
acquisition-related intangible assets(5)
|
249
|
|
2,248
|
|
2,401
|
|
7,309
|
|
9,541
|
|
284
|
|
8,948
|
|
14,096
|
|
174,161
|
|
27,258
|
|
Adjusted net
income
|
$
40,945
|
|
$
43,052
|
|
$
44,719
|
|
$
168,662
|
|
$ 208,345
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
available to common shareholders
|
$
38,725
|
|
$
29,503
|
|
$
29,334
|
|
$
(17,925)
|
|
$ 169,308
|
|
|
|
|
|
|
|
|
|
|
|
Adjusting items, net of
income taxes (detailed above)
|
284
|
|
8,948
|
|
14,096
|
|
174,161
|
|
27,258
|
|
Adjusted net income
available to common shareholders
|
$
39,009
|
|
$
38,451
|
|
$
43,430
|
|
$
156,236
|
|
$ 196,566
|
|
(1)
|
The profit on sale of
assets under administration resulted from the sale of assets under
administration of Laurentian Bank Securities' (LBS) retail
full-service investment broker division to iA Private Wealth
Inc. is included in the Other income line item. For more
information, refer to the Business Highlights section beginning on
page 22 of the 2024 Annual Report including the MD&A for the
year ended October 31, 2024, which pages are incorporated by
reference herein.
|
|
(2)
|
The Personal and
Commercial (P&C) Banking segment impairment charges related to
the impairment of the P&C Banking segment as part of the
goodwill impairment test performed as at April 30, 2024. Impairment
charges related to the goodwill impairment test are included in the
Impairment and restructuring charges line item. For more
information, refer to the Business Highlights section beginning on
page 22 of the 2024 Annual Report including the MD&A for the
year ended October 31, 2024, which pages are incorporated by
reference herein.
|
|
(3)
|
Restructuring and other
impairment charges mainly resulted from the Bank's decision to
suspend the Advanced Internal-Ratings Based (AIRB) approach to
credit risk project and to reduce its leased corporate office
premises in Toronto, as well as from the simplification of the
Bank's technology infrastructure, organizational structure and
headcount reduction. Restructuring and other impairment charges
mainly comprised of impairment charges, severance charges and
professional fees and are included in the Impairment and
restructuring charges line item. For more information, refer to the
Business of the Business Highlights section beginning on page 22 of
the 2024 Annual Report, including the MD&A for the year ended
October 31, 2024, which pages are incorporated by reference
herein.
|
|
(4)
|
In 2023, strategic
review-related charges resulted from the Bank's review of strategic
options to maximize shareholder and stakeholder value and mainly
included professional fees. Strategic review-related charges were
included in the Impairment and restructuring charges line
item.
|
|
(5)
|
Amortization of
acquisition-related intangible assets results from business
acquisitions and is included in the Other non-interest expenses
line item.
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
— CONSOLIDATED BALANCE SHEET
|
For the three months
ended
|
|
For the year
ended
|
|
In thousands of dollars
(Unaudited)
|
October 31
2024
|
|
July 31
2024
|
|
October 31
2023
|
|
October 31
2024
|
|
October 31
2023
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity(1)
|
$
2,828,484
|
|
$
2,793,805
|
|
$
2,858,105
|
|
$
2,828,484
|
|
$
2,858,105
|
|
|
|
|
|
|
|
|
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
Preferred
shares
|
(122,071)
|
|
(122,071)
|
|
(122,071)
|
|
(122,071)
|
|
(122,071)
|
|
Limited recourse
capital notes
|
(123,483)
|
|
(122,732)
|
|
(123,487)
|
|
(123,483)
|
|
(123,487)
|
|
Cash flow hedge
reserve(2)
|
(58,750)
|
|
(46,555)
|
|
3,680
|
|
(58,750)
|
|
3,680
|
|
Common shareholders'
equity(1)
|
$
2,524,180
|
|
$
2,502,447
|
|
$
2,616,227
|
|
$
2,524,180
|
|
$
2,616,227
|
|
|
|
|
|
|
|
|
|
|
|
Impact of averaging
month-end balances(3)
|
(20,089)
|
|
(19,340)
|
|
(21,997)
|
|
22,861
|
|
(60,518)
|
|
Average common
shareholders' equity(1)
|
$
2,504,091
|
|
$
2,483,107
|
|
$
2,594,230
|
|
$
2,547,041
|
|
$
2,556,424
|
|
(1)
|
Effective November 1,
2023, the Bank retrospectively adopted IFRS 17, Insurance
contracts, which required restatement of the Bank's 2023
comparative information and financial measures. Refer to
Note 2 in the Consolidated Financial Statements for further
information.
|
|
(2)
|
The cash flow hedge
reserve is presented in the Accumulated other comprehensive income
line item.
|
|
(3)
|
Based on the month-end
balances for the year.
|
Business Highlights
Brand Merger of LBC Capital and Northpoint Commercial
Finance
On October 29, 2024, the Bank
announced that its LBC Capital and Northpoint Commercial Finance
subsidiaries are uniting under one brand, Northpoint Commercial
Finance (Northpoint), as of November 1,
2024. The merging of these two brands will allow for
streamlined efficiencies and offerings for its customers throughout
North America.
Sale of Assets Under Administration of Laurentian Bank
Securities (LBS)
The two transactions described below underscore the Bank's
strategic focus on simplification, in line with its strategic plan
to concentrate on areas of business where it can win and be more
competitive.
Sale of assets under administration of LBS' retail
full-service investment broker division to iA Private Wealth Inc
(iAPW)
On August 2, 2024, after close of
markets, the Bank completed the sale of assets under administration
of LBS' retail full-service investment broker division to iAPW, a
wholly owned subsidiary of Industrial Alliance Insurance and
Financial Services Inc. ("iA Financial Group"), as initially
announced on April 4, 2024.
This transaction includes the transfer of more than $2 billion in assets under administration from
LBS to iAPW. The Bank recorded a profit from the transaction of
$14.0 million ($12.1 million after income taxes) in fiscal
2024.
Sale of assets under administration of LBS' discount
brokerage division to CI Investment Services Inc (CIIS)
On November 29, 2024, after close
of markets, the Bank completed the sale of assets under
administration of LBS' discount brokerage division to CIIS, a
wholly owned subsidiary of CI Financial Corp, as initially
announced on August 12, 2024.
The transaction includes the transfer of approximately
$250 million in assets under
administration from LBS to CI Direct Trading, an online investment
platform for self-directed investors and a division of CIIS. The
net proceeds from this transaction are not anticipated to have a
material impact on the Bank's financial results and position.
Impairment and restructuring charges
In 2024, the Bank recorded impairment and restructuring charges
of $228.4 million ($179.0 million after income taxes), or
$4.09 diluted per share. This
included an impairment charge on the value of the Bank's P&C
Banking segment of $155.9 million recorded in the second
quarter of 2024, as well as other impairment and restructuring
charges amounting to $72.5 million. Refer to the Business
Highlights section to the 2024 Annual Report including the MD&A
for further details.
Fourth quarter 2024 update
In line with the Bank's priorities of becoming a simpler and
more customer-centric organization, the Bank continued the
simplification of its organizational structure. As a result, the
Bank recorded severance charges of $7.8 million in the fourth quarter of 2024
on the Impairment and restructuring charges line item.
Over the course of the year, the Bank built a roadmap to
modernize its Information Technology (IT) ecosystem, on which it is
already delivering. As part of its strategy to simplify its
technology infrastructure and improve resiliency, the Bank reviewed
the utilization of its software and other intangible assets and
recorded $5.7 million of
impairment charges on the Impairment and restructuring charges line
item, related to software and licences being decommissioned in the
fourth quarter of 2024.
In the fourth quarter of 2024, the Bank also reviewed the
utilization of its premises and equipment and recorded $1.4 million of additional impairment
charges. The Bank also incurred $1.5 million of charges related to leases
and other.
Consolidated Results
Three months ended October 31,
2024 financial performance
Net income was $40.7 million and
diluted earnings per share were $0.88
for the fourth quarter of 2024, compared with net income of
$30.6 million and diluted
earnings per share of $0.67 for
the fourth quarter of 2023. Adjusted net income was $40.9 million and adjusted diluted earnings
per share were $0.89 for the fourth
quarter of 2024, compared with $44.7 million and $1.00 for the fourth quarter of 2023. Refer to
the Non-GAAP Financial and Other Measure section for a
reconciliation of non-GAAP financial measures.
Total revenue
Total revenue increased by $3.3 million to $250.8 million for the fourth quarter of 2024,
compared with $247.4 million for the
fourth quarter of 2023.
Net interest income decreased by $9.0 million to $173.9
million for the fourth quarter of 2024, compared with
$182.9 million for the fourth
quarter of 2023. The decrease was mainly due to lower net interest
income from lower commercial loan volumes. The net interest margin
was 1.77% for the fourth quarter of 2024 an increase of 1 basis
point compared with the fourth quarter of 2023 as the Bank has been
gradually reducing excess liquidity, partly offset by less
favourable business mix.
Other income increased by $12.3
million or 19% to $76.9
million for the fourth quarter of 2024, compared with
$64.5 million for the fourth quarter
of 2023. Of note, reported other income for the fourth quarter of
2024 included a $14.0 million gross
profit related to the sale of assets under administration of LBS's
retail full-service investment broker division. Income from
financial instruments also increased by $9.5
million compared with the fourth quarter of 2023 due to more
favourable market conditions. Furthermore, service charges
increased by $1.8 million due to the
$2.3 million service fees that were
waived following the mainframe outage that occurred in September 2023. This was partly offset by a
decrease of $4.7 million in fees and
securities brokerage commissions mainly as a result of the
aforementioned sale of assets under administration. Lending fees
also decreased by $6.1 million
due to tempered commercial real estate activity.
Provision for credit losses
The provision for credit losses was $10.4
million for the fourth quarter of 2024, compared with
$16.7 million for the fourth quarter
of 2023, an improvement of $6.2 million mainly as a result of higher
releases of provisions on performing loans. The provision for
credit losses as a percentage of average loans and acceptances was
12 basis points for the quarter, compared with 18 basis
points for the same quarter a year ago. Refer to the
"Credit risk management" section on pages 42 to 48 of the Bank's
MD&A for the year ended October 31,
2024 and to Note 6 to the Consolidated Financial Statements
for more information on provision for credit losses and allowances
for credit losses.
Non-interest expenses
Non-interest expenses amounted to $194.5
million for the fourth quarter of 2024, a decrease of
$2.8 million compared with the fourth
quarter of 2023. Adjusted non-interest expenses remained stable for
the fourth quarter of 2024, compared with the fourth quarter of
2023.
Salaries and employee benefits amounted to
$87.2 million for the fourth quarter
of 2024, mostly aligned compared with $88.3 million for the fourth quarter of
2023.
Premises and technology costs were $52.1 million for the fourth quarter of 2024, an
increase of $0.3 million compared
with the fourth quarter of 2023. The increase year-over-year is
mainly due to higher technology costs as the Bank is investing in
its infrastructure and strategic priorities, partly offset by lower
amortization charges and rent expenses resulting from the
impairment effected in 2024.
Other non-interest expenses were $38.7 million for the fourth quarter of 2024, a
decrease of $2.6 million compared
with the fourth quarter of 2023 mainly resulting from the
$2.5 million professional fees and
other expenses that were related to the mainframe outage that had
occurred in September 2023.
Impairment and restructuring charges were
$16.5 million for the fourth quarter
of 2024, compared with $15.9 million
for the fourth quarter of 2023. In the fourth quarter of 2024,
impairment and restructuring charges were related to the
simplification of the Bank's technology infrastructure,
organizational structure and headcount reduction. In the fourth
quarter of 2023, this line-item included restructuring charges of
$12.5 million resulting from changes
in the Bank's management structure, as well as strategic
review-related charges of $3.4 million resulting from the Bank's
review of strategic options aimed at maximizing shareholder and
stakeholder value. Refer to the Non-GAAP Financial and Other
Measures and Business Highlights sections for further details.
Efficiency ratio
The efficiency ratio on a reported basis decreased to 77.5% for
the fourth quarter of 2024, compared with 79.7% for the fourth
quarter of 2023, as a result of higher revenues and lower
non-interest expenses as described above. The adjusted efficiency
ratio increased to 75.0% for the fourth quarter of 2024, compared
to 72.0% for the fourth quarter of 2023, mainly as a result of
lower adjusted total revenue.
Income taxes
For the fourth quarter of 2024, the income tax expense was
$5.2 million, and the effective
income tax rate was 11.4%. The lower effective tax rate, compared
to the statutory rate, is attributed to a lower taxation level of
income from foreign operations, as well as from the favourable
effect of the non-taxable portion of capital gains. For the fourth
quarter of 2023, the income tax expense was $2.9 million, and the effective income tax
rate was 8.6%.The lower effective tax rate in the quarter
ended October 31, 2023, compared to
the statutory rate, was essentially attributed to a lower taxation
level of income from foreign operations. Quarter-over-quarter, the
higher effective tax rate mainly resulted from the lower proportion
of income from foreign operations.
Three months ended October 31,
2024 compared with three months ended July 31, 2024
Net income was $40.7 million and
diluted earnings per share were $0.88
for the fourth quarter of 2024, compared with a net income of
$34.1 million and a diluted
earnings per share of $0.67 for
the third quarter of 2024. Adjusted net income was $40.9 million and adjusted diluted earnings
per share were $0.89 for the
fourth quarter of 2024, compared with $43.1 million and $0.88 for the third quarter of 2024. Refer to the
Non-GAAP Financial and Other Measure section for a reconciliation
of non-GAAP financial measures. Net income available to common
shareholders included the quarterly dividend declared on the
Preferred Shares Series 13 in the fourth quarter of 2024,
whereas the third quarter of 2024 included the interest paid
semi-annually on the limited recourse capital notes and the
quarterly dividend declared on the Preferred Shares Series 13.
Total revenue decreased by $5.7
million to $250.8 million for
the fourth quarter of 2024 compared with $256.5 million for the previous quarter.
Net interest income decreased by $6.9 million to $173.9 million, which mainly reflected lower
commercial loan volumes. Net interest margin was 1.77% for the
fourth quarter of 2024, a decrease of 2 basis points compared
with 1.79% for the third quarter of 2024, mainly for the same
reason.
Other income amounted to $76.9
million for the fourth quarter of 2024, an increase of
$1.2 million or 2% compared with
$75.7 million for the previous
quarter. Of note, reported other income for the fourth quarter of
2024 included a $14.0 million gross
profit related to the sale of assets under administration of LBS's
retail full-service investment broker division. This was partly
offset by a decrease of $4.7 million
in fees and securities brokerage commissions mainly as a result of
the aforementioned sale of assets under administration, lower
income from financial instruments and lower lending fees a due to
tempered commercial real estate activity.
The provision for credit losses was $10.4
million for the fourth quarter of 2024, a decrease of
$5.8 million compared with
$16.3 million for the third
quarter of 2024, reflecting lower provisions on impaired loans,
partly offset by lower releases of provisions of performing
loans.
Non-interest expenses decreased by $5.8
million to $194.5 million for
the fourth quarter of 2024 from $200.2
million in the third quarter of 2024. In the fourth quarter
of 2024, non-interest expenses included impairment and
restructuring charges of $16.5 million, compared with $9.1 million in the third quarter of 2024.
Refer to the Non-GAAP Financial and Other Measures and Business
Highlights sections for further details. Adjusted non-interest
expenses amounted to $177.7 million in the fourth quarter of
2024, a decrease of $10.5 million due to efficiency gains driven
by the reduced headcount, lower seasonal payroll taxes, as well as
lower performance-based compensation.
Financial Condition
As at October 31, 2024, total assets amounted to
$47.4 billion, a 5% decrease compared
with $49.9 billion as at
October 31, 2023 mostly due to the lower level of loans.
Liquid assets
As at October 31, 2024, liquid assets as presented on the
balance sheet amounted to $11.1
billion, a decrease of $0.3
billion compared with $11.4
billion as at October 31, 2023. The Bank continues
to prudently manage its level of liquid assets. The Bank's funding
sources remain well diversified and sufficient to meet all
liquidity requirements. Liquid assets represented 23% of total
assets as at October 31, 2024, in line with October 31,
2023.
Loans
Loans and bankers' acceptances, net of allowances, stood at
$35.1 billion as at
October 31, 2024, a decrease of $1.8 billion since October 31, 2023.
Commercial loans and acceptances amounted to $16.6 billion as at October 31, 2024, a
decrease of $1.2 billion or 7%
since October 31, 2023 mainly resulting from lower real estate
and inventory financing commercial loans. Personal loans of
$2.1 billion as at
October 31, 2024 decreased by $0.5 billion from October 31, 2023,
mainly as a result of a decline in the investment loan portfolio
driven by volatile market conditions and higher interest rates.
Residential mortgage loans of $16.5 billion as at October 31, 2024
decreased by $0.2 billion or 1%
from October 31, 2023.
Deposits
Deposits decreased by $2.9 billion to $23.2
billion as at October 31, 2024 compared with
$26.0 billion as at October 31,
2023. Considering the loan volume reductions and an increase during
the year of $0.6 billion of
cost-effective long-term debt related to securitization activities,
the Bank gradually reduced its deposit basis and liquidity
position. Personal deposits stood at $19.7 billion as at October 31, 2024, a
decrease of $2.6 billion compared
with $22.3 billion as at
October 31, 2023. Of note, personal notice and demand deposits
from partnerships decreased by $1.4 billion since October 31, 2023,
and deposits from advisors and brokers decreased by $0.9 billion. Personal deposits represented
85% of total deposits as at October 31, 2024, in line with
October 31, 2023, and contributed to the Bank's sound
liquidity position. Business and other deposits decreased by
$0.3 billion over the same
period to $3.5 billion as at
October 31, 2024, due to the maturity of wholesale
deposits.
Debt related to securitization activities
Debt related to securitization activities increased by
$0.6 billion or 5% compared with
October 31, 2023 and stood at $13.5 billion as at October 31, 2024.
During the year, new issuances of cost-effective long-term debt
related to securitization activities more than offset maturities of
liabilities, as well as normal repayments.
Shareholders' equity and regulatory capital
Shareholders' equity stood at $2.8
billion as at October 31, 2024 and decreased by
$29.6 million compared with
October 31, 2023. Retained earnings decreased by $98.1 million compared to October 31, 2023,
mainly as a result of the sum of the cumulative net loss of
$5.5 million and of dividends
and other distributions amounting to $94.7
million. Accumulated other comprehensive income increased by
$58.4 million compared to
October 31, 2023. For additional information, please refer to
the Capital Management section of the Bank's MD&A and to the
Consolidated Statement of Changes in Shareholders' Equity in the
Consolidated Financial Statements for the period ended
October 31, 2024.
The Bank's book value per common share was $57.36 as at October 31, 2024 compared to
$59.96 as at October 31,
2023.
The CET1 capital ratio was 10.9% as at October 31, 2024, in
excess of the minimum regulatory requirement and the Bank's target
management levels. The CET1 capital ratio increased by 100 basis
points compared with October 31, 2023, mainly due to the
risk-weighted assets reduction. The Bank met OSFI's capital and
leverage requirements throughout the year.
On December 5, 2024, the Board of Directors declared a
quarterly dividend of $0.47 per
common share, payable on February 1, 2025, to shareholders of
record on January 3, 2025. This quarterly dividend is equal to
the dividend declared in the previous quarter and to the dividend
declared in the fourth quarter of 2023. The Board also determined
that shares attributed under the Bank's Shareholder Dividend
Reinvestment and Share Purchase Plan will be made in common shares
issued from Corporate Treasury with a 2% discount.
Condensed Interim Consolidated Financial Statements
(unaudited)
Consolidated Balance Sheet
|
In thousands of dollars
(Unaudited)
|
As at October
31
2024
|
|
As at October 31
2023
|
|
|
|
|
|
Assets
|
|
|
|
|
Cash and
non-interest bearing deposits with banks
|
$
73,554
|
|
$
69,438
|
|
Interest-bearing
deposits with banks
|
1,364,114
|
|
1,250,827
|
|
Securities
|
|
|
|
|
At amortized
cost
|
2,790,453
|
|
2,995,177
|
|
At fair value through
profit or loss
|
3,142,035
|
|
2,970,860
|
|
At fair value through
other comprehensive income
|
167,146
|
|
50,390
|
|
6,099,634
|
|
6,016,427
|
|
Securities purchased
under reverse repurchase agreements
|
3,568,490
|
|
4,086,170
|
|
Loans
|
|
|
|
|
Personal
|
2,106,426
|
|
2,571,747
|
|
Residential
mortgage
|
16,537,917
|
|
16,708,809
|
|
Commercial
|
16,614,187
|
|
17,778,794
|
|
Customers' liabilities
under acceptances
|
—
|
|
15,000
|
|
35,258,530
|
|
37,074,350
|
|
Allowances for loan
losses
|
(189,377)
|
|
(205,957)
|
|
35,069,153
|
|
36,868,393
|
|
Other
|
|
|
|
|
Derivatives
|
243,087
|
|
325,219
|
|
Premises and
equipment
|
82,588
|
|
113,340
|
|
Goodwill
|
—
|
|
84,755
|
|
Software and other
intangible assets
|
181,277
|
|
282,831
|
|
Deferred tax
assets
|
157,844
|
|
119,085
|
|
Other
assets
|
561,549
|
|
676,253
|
|
1,226,345
|
|
1,601,483
|
|
$
47,401,290
|
|
$
49,892,738
|
|
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
Deposits
|
|
|
|
|
Personal
|
$
19,713,877
|
|
$
22,294,040
|
|
Business, banks and
other
|
3,450,077
|
|
3,732,838
|
|
23,163,954
|
|
26,026,878
|
|
Other
|
|
|
|
|
Obligations related to
securities sold short
|
2,260,941
|
|
2,584,071
|
|
Obligations related to
securities sold under repurchase agreements
|
3,661,575
|
|
3,118,708
|
|
Acceptances
|
—
|
|
15,000
|
|
Derivatives
|
333,655
|
|
738,041
|
|
Deferred tax
liabilities
|
61,461
|
|
72,344
|
|
Other
liabilities
|
1,267,970
|
|
1,288,526
|
|
7,585,602
|
|
7,816,690
|
|
Debt related to
securitization activities
|
13,496,457
|
|
12,853,385
|
|
Subordinated
debt
|
326,793
|
|
337,680
|
|
Shareholders'
equity
|
|
|
|
|
Preferred
shares
|
122,071
|
|
122,071
|
|
Limited recourse
capital notes
|
123,483
|
|
123,487
|
|
Common
shares
|
1,187,107
|
|
1,177,827
|
|
Retained
earnings
|
1,307,747
|
|
1,405,800
|
|
Accumulated other
comprehensive income
|
81,235
|
|
22,868
|
|
Share-based
compensation reserve
|
6,841
|
|
6,052
|
|
2,828,484
|
|
2,858,105
|
|
$
47,401,290
|
|
$
49,892,738
|
Consolidated Statement of Income
|
For the three months
ended
|
|
For the year
ended
|
|
In thousands of
dollars, except per share amounts (Unaudited)
|
October 31
2024
|
|
July 31
2024
|
|
October 31
2023
|
|
October 31
2024
|
|
October 31
2023
|
|
|
|
|
|
|
|
|
|
|
|
Interest and
dividend income
|
|
|
|
|
|
|
|
|
|
|
Loans
|
$ 506,111
|
|
$ 532,919
|
|
$ 540,730
|
|
$
2,113,277
|
|
$
2,088,490
|
|
Securities
|
27,552
|
|
27,324
|
|
26,106
|
|
111,119
|
|
94,289
|
|
Deposits with
banks
|
12,607
|
|
18,018
|
|
19,124
|
|
61,593
|
|
67,784
|
|
Other, including
derivatives
|
833
|
|
944
|
|
7,399
|
|
12,861
|
|
22,590
|
|
547,103
|
|
579,205
|
|
593,359
|
|
2,298,850
|
|
2,273,153
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
242,229
|
|
258,360
|
|
264,952
|
|
1,023,768
|
|
969,382
|
|
Debt related to
securitization activities
|
97,047
|
|
97,253
|
|
87,079
|
|
375,793
|
|
318,760
|
|
Subordinated
debt
|
4,578
|
|
4,577
|
|
4,589
|
|
18,220
|
|
18,212
|
|
Other, including
derivatives
|
29,371
|
|
38,251
|
|
53,843
|
|
161,562
|
|
220,476
|
|
373,225
|
|
398,441
|
|
410,463
|
|
1,579,343
|
|
1,526,830
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
173,878
|
|
180,764
|
|
182,896
|
|
719,507
|
|
746,323
|
|
|
|
|
|
|
|
|
|
|
|
Other
income
|
|
|
|
|
|
|
|
|
|
|
Income from financial
instruments
|
14,406
|
|
19,218
|
|
4,935
|
|
61,292
|
|
27,961
|
|
Lending
fees
|
10,730
|
|
11,876
|
|
16,837
|
|
50,019
|
|
66,788
|
|
Income from mutual
funds
|
10,432
|
|
10,190
|
|
10,320
|
|
40,691
|
|
43,255
|
|
Fees and securities
brokerage commissions
|
4,923
|
|
9,570
|
|
9,586
|
|
35,915
|
|
40,529
|
|
Card service
revenues
|
5,879
|
|
6,446
|
|
6,923
|
|
27,958
|
|
29,722
|
|
Service
charges
|
6,589
|
|
6,752
|
|
4,818
|
|
27,166
|
|
25,963
|
|
Profit on sale of
assets under administration
|
13,959
|
|
—
|
|
—
|
|
13,959
|
|
—
|
|
Fees on investment
accounts
|
2,644
|
|
2,888
|
|
3,161
|
|
11,394
|
|
13,008
|
|
Insurance income,
net
|
1,328
|
|
1,725
|
|
1,834
|
|
6,477
|
|
7,940
|
|
Other
|
6,003
|
|
7,074
|
|
6,135
|
|
23,831
|
|
24,021
|
|
76,893
|
|
75,739
|
|
64,549
|
|
298,702
|
|
279,187
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
250,771
|
|
256,503
|
|
247,445
|
|
1,018,209
|
|
1,025,510
|
|
|
|
|
|
|
|
|
|
|
|
Provision for credit
losses
|
10,440
|
|
16,283
|
|
16,669
|
|
61,552
|
|
61,607
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
expenses
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
87,225
|
|
99,726
|
|
88,286
|
|
388,882
|
|
391,544
|
|
Premises and
technology
|
52,118
|
|
51,244
|
|
51,789
|
|
205,584
|
|
196,628
|
|
Other
|
38,652
|
|
40,157
|
|
41,300
|
|
155,990
|
|
141,219
|
|
Impairment and
restructuring charges
|
16,463
|
|
9,112
|
|
15,906
|
|
228,416
|
|
24,099
|
|
194,458
|
|
200,239
|
|
197,281
|
|
978,872
|
|
753,490
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
45,873
|
|
39,981
|
|
33,495
|
|
(22,215)
|
|
210,413
|
|
Income taxes
(recovery)
|
5,212
|
|
5,877
|
|
2,872
|
|
(16,716)
|
|
29,326
|
|
Net income
(loss)
|
$
40,661
|
|
$
34,104
|
|
$
30,623
|
|
$
(5,499)
|
|
$ 181,087
|
|
|
|
|
|
|
|
|
|
|
|
Preferred share
dividends and limited recourse capital note interest
|
1,936
|
|
4,601
|
|
1,289
|
|
12,426
|
|
11,779
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
available to common shareholders
|
$
38,725
|
|
$
29,503
|
|
$
29,334
|
|
$ (17,925)
|
|
$ 169,308
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
0.88
|
|
$
0.67
|
|
$
0.67
|
|
$
(0.41)
|
|
$
3.89
|
|
Diluted
|
$
0.88
|
|
$
0.67
|
|
$
0.67
|
|
$
(0.41)
|
|
$
3.89
|
|
|
|
|
|
|
|
|
|
|
|
Dividends per common
share
|
$
0.47
|
|
$
0.47
|
|
$
0.47
|
|
$
1.88
|
|
$
1.86
|
Consolidated Statement of Comprehensive Income
|
For the three months
ended
|
|
For the year
ended
|
|
In thousands of dollars
(Unaudited)
|
October 31
2024
|
|
July 31
2024
|
|
October 31
2023
|
|
October 31
2024
|
|
October 31
2023
|
|
Net income
(loss)
|
$
40,661
|
|
$
34,104
|
|
$
30,623
|
|
$ (5,499)
|
|
$
181,087
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income (loss), net of income taxes
|
|
|
|
|
|
|
|
|
|
|
Items that may
subsequently be reclassified to the Statement of Income
|
|
|
|
|
|
|
|
|
|
|
Net change in debt
securities at fair value through other comprehensive
income
|
|
|
|
|
|
|
|
|
|
|
Unrealized net gains
(losses) on debt securities at fair value through
other
comprehensive income
|
92
|
|
478
|
|
(12)
|
|
817
|
|
44
|
|
Reclassification of
net (gains) losses on debt securities at fair value
through
other comprehensive income to net income
|
18
|
|
(1)
|
|
40
|
|
(28)
|
|
313
|
|
110
|
|
477
|
|
28
|
|
789
|
|
357
|
|
Net change in value of
derivatives designated as cash flow hedges
|
12,195
|
|
37,415
|
|
3,648
|
|
62,430
|
|
(26,287)
|
|
Net foreign currency
translation adjustments
|
|
|
|
|
|
|
|
|
|
|
Net unrealized foreign
currency translation gains on
investments in foreign operations
|
10,747
|
|
3,749
|
|
61,026
|
|
5,169
|
|
23,589
|
|
Net losses on hedges
of investments in foreign operations
|
(9,390)
|
|
(5,042)
|
|
(37,980)
|
|
(10,021)
|
|
(16,836)
|
|
1,357
|
|
(1,293)
|
|
23,046
|
|
(4,852)
|
|
6,753
|
|
13,662
|
|
36,599
|
|
26,722
|
|
58,367
|
|
(19,177)
|
|
|
|
|
|
|
|
|
|
|
|
Items that may not
subsequently be reclassified to the Statement of
Income
|
|
|
|
|
|
|
|
|
|
|
Remeasurement gains
(losses) on employee benefit plans
|
(430)
|
|
2,127
|
|
(374)
|
|
2,246
|
|
(2,414)
|
|
Net gains (losses) on
equity securities designated at fair value through
other
comprehensive income
|
168
|
|
(488)
|
|
(24)
|
|
(167)
|
|
(1,833)
|
|
(262)
|
|
1,639
|
|
(398)
|
|
2,079
|
|
(4,247)
|
|
Total other
comprehensive income (loss), net of income taxes
|
13,400
|
|
38,238
|
|
26,324
|
|
60,446
|
|
(23,424)
|
|
Comprehensive
income
|
$
54,061
|
|
$
72,342
|
|
$
56,947
|
|
$
54,947
|
|
$
157,663
|
Income Taxes — Other Comprehensive Income
The following table shows income tax expense (recovery) for each
component of other comprehensive income.
|
For the three months
ended
|
|
For the year
ended
|
|
In thousands of dollars
(Unaudited)
|
October 31
2024
|
|
July 31
2024
|
|
October 31
2023
|
|
October 31
2024
|
|
October 31
2023
|
|
|
|
|
|
|
|
|
|
|
|
Net change in debt
securities at fair value through other comprehensive
income
|
|
|
|
|
|
|
|
|
|
|
Unrealized net gains
(losses) on debt securities at fair value through other
comprehensive income
|
$
34
|
|
$
172
|
|
$
(4)
|
|
$
295
|
|
$
16
|
|
Reclassification of net
(gains) losses on debt securities at fair value through
other comprehensive income to net income
|
6
|
|
—
|
|
14
|
|
(10)
|
|
113
|
|
40
|
|
172
|
|
10
|
|
285
|
|
129
|
|
|
|
|
|
|
|
|
|
|
|
Net change in value of
derivatives designated as cash flow hedges
|
4,391
|
|
13,471
|
|
1,315
|
|
22,478
|
|
(9,464)
|
|
Net foreign currency
translation adjustments
|
|
|
|
|
|
|
|
|
|
|
Net gains (losses) on
hedges of investments in foreign operations
|
202
|
|
(104)
|
|
165
|
|
—
|
|
4
|
|
Remeasurement gains
(losses) on employee benefit plans
|
(156)
|
|
766
|
|
(134)
|
|
808
|
|
(869)
|
|
Net gains (losses) on
equity securities designated at fair value through other
comprehensive income
|
61
|
|
(176)
|
|
465
|
|
(60)
|
|
(187)
|
|
$
4,538
|
|
$
14,129
|
|
$ 1,821
|
|
$
23,511
|
|
$
(10,387)
|
Consolidated Statement of Changes in Shareholders'
Equity
|
For the year ended
October 31, 2024
|
|
|
|
|
|
Accumulated other
comprehensive income
|
Share-
based
compen-
sation
reserve
|
Total
shareholders'
equity
|
|
In thousands of dollars
(Unaudited)
|
Preferred
shares
|
Limited
Recourse
Capital
Notes
|
Common
shares
|
Retained
earnings
|
Debt
securities
at fair
value
through
other
compre-
hensive
income
|
Cash
flow
hedges
|
Translation
of foreign
operations
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as at October
31, 2023(1)
|
$
122,071
|
$
123,487
|
$
1,177,827
|
$
1,405,800
|
$
(265)
|
$
(3,680)
|
$
26,813
|
$
22,868
|
$
6,052
|
$ 2,858,105
|
|
Net income
(loss)
|
|
|
|
(5,499)
|
|
|
|
|
|
(5,499)
|
|
Other comprehensive
income (loss), net of
income taxes
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized net gains
on
debt securities at fair
value through other
comprehensive income
|
|
|
|
|
817
|
|
|
817
|
|
817
|
|
Reclassification of
net
gains on debt securities
at fair value through
other comprehensive
income to net income
|
|
|
|
|
(28)
|
|
|
(28)
|
|
(28)
|
|
Net change in value
of
derivatives designated
as cash flow hedges
|
|
|
|
|
|
62,430
|
|
62,430
|
|
62,430
|
|
Net unrealized
foreign
currency translation
gains on investments
in foreign operations
|
|
|
|
|
|
|
5,169
|
5,169
|
|
5,169
|
|
Net losses on hedges
of
investments in foreign
operations
|
|
|
|
|
|
|
(10,021)
|
(10,021)
|
|
(10,021)
|
|
Remeasurement gains
on
employee benefit plans
|
|
|
|
2,246
|
|
|
|
|
|
2,246
|
|
Net losses on
equity
securities designated at
fair value through other
comprehensive income
|
|
|
|
(167)
|
|
|
|
|
|
(167)
|
|
Comprehensive
income
|
|
|
|
(3,420)
|
789
|
62,430
|
(4,852)
|
58,367
|
|
54,947
|
|
Net purchase of
treasury
limited recourse capital
notes
|
|
(4)
|
|
107
|
|
|
|
|
|
103
|
|
Issuance of common
shares
|
|
|
9,280
|
|
|
|
|
|
|
9,280
|
|
Share-based
compensation
|
|
|
|
|
|
|
|
|
789
|
789
|
|
Dividends and
other
|
|
|
|
|
|
|
|
|
|
|
|
Preferred shares and
limited
recourse capital notes
|
|
|
|
(12,426)
|
|
|
|
|
|
(12,426)
|
|
Common
shares
|
|
|
|
(82,314)
|
|
|
|
|
|
(82,314)
|
|
Balance as at October
31, 2024
|
$
122,071
|
$
123,483
|
$
1,187,107
|
$
1,307,747
|
$
524
|
$
58,750
|
$
21,961
|
$
81,235
|
$
6,841
|
$ 2,828,484
|
|
(1)
|
Effective
November 1, 2023, the Bank retrospectively adopted IFRS 17,
Insurance contracts, which required restatement of the Bank's 2023
comparative information. Refer to Note 2 of the 2024 Annual Report
for further information.
|
|
For the year ended
October 31, 2023
|
|
|
|
|
|
Accumulated other
comprehensive income
|
Share-
based
compen-
sation
reserve
|
Total
shareholders'
equity
|
|
In thousands of dollars
(Unaudited)
|
Preferred
shares
|
Limited
recourse
capital
notes
|
Common
shares
|
Retained
earnings
|
Debt
securities
at fair
value
through
other
compre-
hensive
income
|
Cash
flow
hedges
|
Translation
of foreign
operations
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as at October
31, 2022
|
$
122,071
|
$
122,332
|
$ 1,167,549
|
$ 1,322,381
|
$
(622)
|
$
22,607
|
$ 20,060
|
$
42,045
|
$ 4,725
|
$ 2,781,103
|
|
Impact of adoption
of
IFRS
17(1)
|
|
|
|
(715)
|
|
|
|
|
|
(715)
|
|
Balance as at November
1, 2022
|
$
122,071
|
$
122,332
|
$ 1,167,549
|
$ 1,321,666
|
$
(622)
|
$
22,607
|
$ 20,060
|
$
42,045
|
$ 4,725
|
$ 2,780,388
|
|
Net income
|
|
|
|
181,087
|
|
|
|
|
|
181,087
|
|
Other
comprehensive
income (loss), net of
income taxes
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized net gains
on
debt securities at fair
value through other
comprehensive income
|
|
|
|
|
44
|
|
|
44
|
|
44
|
|
Reclassification of
net
losses on debt securities
at fair value through
other comprehensive
income to net income
|
|
|
|
|
313
|
|
|
313
|
|
313
|
|
Net change in value
of
derivatives designated
as cash flow hedges
|
|
|
|
|
|
(26,287)
|
|
(26,287)
|
|
(26,287)
|
|
Net unrealized
foreign
currency translation
gains on investments
in foreign operations
|
|
|
|
|
|
|
23,589
|
23,589
|
|
23,589
|
|
Net losses on hedges
of
investments in foreign
operations
|
|
|
|
|
|
|
(16,836)
|
(16,836)
|
|
(16,836)
|
|
Remeasurement
losses
on employee benefit
plans
|
|
|
|
(2,414)
|
|
|
|
|
|
(2,414)
|
|
Net losses on
equity
securities designated at
fair value through other
comprehensive income
|
|
|
|
(1,833)
|
|
|
|
|
|
(1,833)
|
|
Comprehensive
income
|
|
|
|
176,840
|
357
|
(26,287)
|
6,753
|
(19,177)
|
|
157,663
|
|
Net sale of
treasury
limited recourse capital
notes
|
|
1,155
|
|
(117)
|
|
|
|
|
|
1,038
|
|
Issuance of common
shares
|
|
|
10,278
|
|
|
|
|
|
|
10,278
|
|
Share-based
compensation
|
|
|
|
|
|
|
|
|
1,327
|
1,327
|
|
Dividends and
other
|
|
|
|
|
|
|
|
|
|
|
|
Preferred shares
and
limited recourse capital
notes
|
|
|
|
(11,779)
|
|
|
|
|
|
(11,779)
|
|
Common
shares
|
|
|
|
(80,810)
|
|
|
|
|
|
(80,810)
|
|
Balance as at October
31, 2023
|
$
122,071
|
$
123,487
|
$ 1,177,827
|
$ 1,405,800
|
$
(265)
|
$
(3,680)
|
$ 26,813
|
$
22,868
|
$ 6,052
|
$ 2,858,105
|
|
(1)
|
Effective November 1,
2023, the Bank retrospectively adopted IFRS 17, Insurance
contracts, which required restatement of the Bank's 2023
comparative information. Refer to Note 2 of the
2024 Annual Report for further
information.
|
Caution Regarding Forward-Looking Statements
From time to time, Laurentian Bank of Canada and, as applicable its subsidiaries
(collectively referred to as the Bank) will make written or
oral forward-looking statements within the meaning of applicable
Canadian and United States
(U.S.) securities legislation, including, forward-looking
statements contained in this document (and in the documents
incorporated by reference herein), as well as in other documents
filed with Canadian and U.S. regulatory authorities, in reports to
shareholders, and in other written or oral communications. These
forward-looking statements are made in accordance with the "safe
harbor" provisions of, and are intended to be forward-looking
statements in accordance with, applicable Canadian and U.S.
securities legislation. They include, but are not limited to,
statements regarding the Bank's vision, strategic goals, business
plans and strategies, priorities and financial performance
objectives; the economic, market, and regulatory review and outlook
for Canadian, U.S. and global economies; the regulatory environment
in which the Bank operates; the risk environment, including, credit
risk, liquidity, and funding risks; the statements under the
heading "Risk Appetite and Risk Management Framework" contained in
the 2024 Annual Report, including, the MD&A for the fiscal year
ended October 31, 2024, and other
statements that are not historical facts .
Forward-looking statements typically are identified with words
or phrases such as "believe", "assume", "estimate", "forecast",
"outlook", "project", "vision", "expect", "foresee", "anticipate",
"intend", "plan", "goal", "aim", "target", and expressions of
future or conditional verbs such as "may", "should", "could",
"would", "will", "intend" or the negative of any of these terms,
variations thereof or similar terminology.
By their very nature, forward-looking statements require the
Bank to make assumptions and are subject to inherent risks and
uncertainties, both general and specific in nature, which give rise
to the possibility that the Bank's predictions, forecasts,
projections, expectations, or conclusions may prove to be
inaccurate; that the Bank's assumptions may be incorrect (in whole
or in part); and that the Bank's financial performance objectives,
visions, and strategic goals may not be achieved. Forward-looking
statements should not be read as guarantees of future performance
or results, or indications of whether or not actual results will be
achieved. Material economic assumptions underlying such
forward-looking statements are set out in the 2024 Annual Report
under the heading "Outlook", which assumptions are incorporated by
reference herein.
The Bank cautions readers against placing undue reliance on
forward-looking statements, as a number of factors, many of which
are beyond the Bank's control and the effects of which can be
difficult to predict or measure, could influence, individually or
collectively, the accuracy of the forward-looking statements and
cause the Bank's actual future results to differ significantly from
the targets, expectations, estimates or intentions expressed in the
forward-looking statements. These factors include, but are not
limited to general and market economic conditions; inflationary
pressures; the dynamic nature of the financial services industry in
Canada, the U.S., and globally;
risks relating to credit, market, liquidity, funding, insurance,
operational and regulatory compliance (which could lead to the Bank
being subject to various legal and regulatory proceedings, the
potential outcome of which could include regulatory restrictions,
penalties, and fines); reputational risks; legal and regulatory
risks; competitive and systemic risks; supply chain disruptions;
geopolitical events and uncertainties; government sanctions;
conflict, war, or terrorism; and various other significant risks
discussed in the risk-related portions of the Bank's 2024 Annual
Report, such as those related to: Canadian and global economic
conditions; Canadian housing and household indebtedness;
technology, information systems and cybersecurity; technological
disruption, privacy, data and third party related risks;
competition; the Bank's ability to execute on its strategic
objectives; digital disruption and innovation (including, emerging
fintech competitors); changes in government fiscal, monetary and
other policies; tax risk and transparency; fraud and
criminal activity; human capital; business continuity; emergence of
widespread health emergencies or public health crises;
environmental and social risks including, climate change; and
various other significant risks, as described beginning on page 38
of the 2024 Annual Report, including the MD&A, which
information is incorporated by reference herein. The Bank further
cautions that the foregoing list of factors is not exhaustive. When
relying on the Bank's forward-looking statements to make decisions
involving the Bank, investors, financial analysts, and others
should carefully consider the foregoing factors, uncertainties, and
current and potential events.
Any forward-looking statements contained herein or incorporated
by reference represent the views of management of the Bank only as
at the date such statements were or are made, are presented for the
purposes of assisting investors, financial analysts, and others in
understanding certain key elements of the Bank's financial
position, current objectives, strategic priorities, expectations
and plans, and in obtaining a better understanding of the Bank's
business and anticipated financial performance and operating
environment and may not be appropriate for other purposes. The Bank
does not undertake any obligation to update any forward-looking
statements made by the Bank or on its behalf whether as a result of
new information, future events or otherwise, except to the extent
required by applicable securities legislation. Additional
information relating to the Bank can be located on SEDAR+ at
www.sedarplus.ca.
Access to Quarterly Results Materials
This press release can be found on the Bank's website at
www.laurentianbank.ca, in the About us section under the News
releases tab, and the Bank's Report to Shareholders, Investor
Presentation and Supplementary Financial Information can be found
in the About us section under the Investor relations tab, Quarterly
results.
Conference Call
Laurentian Bank of Canada
invites media representatives and the public to listen to the
conference call to be held at 9:00 a.m. (ET) on
December 6, 2024. The live, listen-only, toll-free, call-in
number is 1-800-990-4777, and mention Laurentian Bank to the
operator. A live webcast will also be available on the Bank's
website in the Investor relations tab, Quarterly results.
The conference call playback will be available on a delayed
basis from 12:00 p.m. (ET) on
December 6, 2024, until 12:00 p.m. (ET) on March 6, 2025, on our website under the Investor
Centre tab, Financial Results.
The presentation material referenced during the call will be
available on our website in the Investor relations section,
Quarterly results.
About Laurentian Bank of Canada
Founded in Montréal in 1846, Laurentian Bank wants to foster
prosperity for all customers through specialized commercial banking
and low-cost banking services to grow savings for middle-class
Canadians.
With a workforce of approximately 2,800 employees, the Bank
offers a wide range of financial services and advice-based
solutions to customers across Canada and the
United States. Laurentian Bank manages $47.4 billion in balance sheet assets and
$24.7 billion in assets under
administration.
SOURCE Laurentian Bank of Canada
