Laurentian Bank of Canada (LB) investor relations material

Executive summary

• Net income for Q3 2026 was $1.5M, with a diluted loss per share of $0.08, down from $37.5M and $0.73 EPS in Q3 2025, mainly due to $36M in adjusting items related to strategic transactions.

• Adjusted net income for Q3 2026 was $28.0M and adjusted EPS was $0.51, both lower year-over-year.

• For the nine months ended July 31, 2026, a net loss of $39.5M was reported, compared to net income of $108.4M in the prior year, with significant restructuring and transaction costs.

• The bank is transitioning to a specialty commercial banking model, exiting retail and SME banking, and progressing with major transactions involving Fairstone Bank and National Bank.

• Adjusted net income for the nine months was $84.9M, down from $113.0M year-over-year.

Financial highlights

• Q3 2026 total revenue was $241.7M, down $5.1M year-over-year, with net interest income up 2% to $189.5M and other income down $8.7M.

• Provision for credit losses rose to $25.6M (0.28% of average loans), up from $11.1M (0.12%) in Q3 2025.

• Non-interest expenses increased to $219.9M, mainly due to $27.5M in impairment/restructuring and $8.4M in transaction costs.

• Efficiency ratio rose to 91.0% (reported) and 76.1% (adjusted) in Q3 2026.

• Adjusted non-interest expenses decreased by $2.9M to $183.9M.

Outlook and guidance

• Management expects the transformation to a specialty commercial bank to continue, with completion of the Fairstone and National Bank transactions anticipated by late 2026.

• Economic outlook remains uncertain, with resilience in AI-driven sectors offsetting global risks; Canadian economic momentum is improving but regional disparities persist.

• Management is focused on supporting stakeholders through the transition.