Laurentian Bank of Canada (LB) investor relations material

Executive summary

• Reported a net loss of $20.5 million and diluted loss per share of $0.58 for Q1 2026, reflecting significant after-tax adjusting items of $54.7 million mainly from transactions announced in December.

• Adjusted net income was $34.2 million and adjusted diluted EPS was $0.65, both down year-over-year.

• Commercial loans grew 4% sequentially and 8% year-over-year, with CET1 capital ratio at 10.9%.

• Shareholders approved the acquisition transaction with 98.8% support; sale of syndication portfolio to National Bank completed.

• Strategic transformation underway, including exit from retail and SME banking and focus on specialty commercial banking.

Financial highlights

• Total revenue reached $251.6 million, up 1% year-over-year and 3% quarter-over-quarter, driven by higher net interest income.

• Net interest income rose 5% year-over-year to $194.9 million; NIM improved to 1.89%.

• Adjusted net income was $34.2 million, down 13% year-over-year and flat sequentially.

• Non-interest expenses increased to $267.4 million, up $80.4 million year-over-year, mainly due to restructuring and transaction costs.

• Provision for credit losses was $16.5 million, up 9% year-over-year but down 9% sequentially, representing 18 bps of average loans.

Outlook and guidance

• Q2 will include additional transaction-related charges of about $40 million post-tax.

• Loans expected to decline 2%-3% in Q2 due to syndicated loan portfolio sale; otherwise stable.

• NIM expected to be slightly lower in Q2; efficiency ratio and PCLs to remain in line with Q1.

• Transactions with National Bank and Fairstone Bank expected to close by late 2026, pending regulatory approvals.

• Strategic focus on specialty commercial banking expected to drive future growth.