Laurentian Bank Of Canada · TSX:LB
Laurentian Bank Of Canada — Q4 2024 Earnings Presentation
25 slides from Laurentian Bank Of Canada's earnings presentation, Dec 6, 2024
Slide 1: Investor Presentation Fourth Quarter 2024
Investor Presentation Fourth Quarter 2024 December 6, 2024
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
Forward-Looking Statements and Non-GAAP Financial Measures 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 Any forward-looking statements contained herein or
Slide 3: Introduction & Strategic Overview
Éric Provost President & Chief Executive Officer Introduction & Strategic Overview
Slide 4: Introduction | FY24 Results Highlights
Introduction | FY24 Results Adjusted Net Income(1) $168.7MM Reported Net Income -$5.5MM Highlights Adjusted EPS(2) $3.57 Reported EPS -$0.41 • Reported results included $228.4MM Adjusted Efficiency Ratio(2) 73.8% of impairment & restructuring charges and a $14.0MM profit on Reported Efficiency Ratio
Slide 5: Introduction | Q4/24 Results Highlights
Introduction | Q4/24 Results Adjusted Net Income(1) $40.9MM Reported Net Income $40.7MM Highlights Adjusted EPS(2) $0.89 Reported EPS $0.88 • Reported results included $16.5MM Adjusted Efficiency Ratio(2) 75.0% of impairment & restructuring charges and a $14.0MM profit on Reported Efficiency Ratio(3
Slide 6: Renewed Senior Leadership Team
Introduction | Renewed Senior Leadership Team ÉRIC PROVOST BENOIT BERTRAND MARIE-CHRISTINE CUSTEAU President & CEO EVP, Chief Information Officer Chief Strategy & Transformation Officer CHRISTIAN DE BROUX YVAN DESCHAMPS THIERRY LANGEVIN MACHA POHU EVP, Chief Risk Officer EVP, Chief Financial Officer
Slide 7: Financial Review
Yvan Deschamps Executive Vice President & Chief Financial Officer Financial Review
Slide 8: FY24 Financial Results
Financial Review | FY24 Financial Results Reported ($MM) FY24 Y/Y Y/Y Highlights Total revenue $ 1,018.2 -1% • Adjusted total revenue declined by $21.3MM due to reduced net interest Provision for credit losses (PCL) $ 61.6 -% income of $26.8MM from lower volume, partly offset by $5.6MM higher adjust
Slide 9: Q4/24 Financial Results
Financial Review | Q4/24 Financial Results Reported ($MM) Q4/24 Y/Y Q/Q Y/Y Highlights Total revenue $ 250.8 +1% -2% • Adjusted total revenue declined by $10.6MM due to reduced net interest Provision for credit losses (PCL) $ 10.4 -37% -36% income of $9.0MM from lower volumes and $1.6MM lower adjust
Slide 10: Net Interest Income and Net Interest Margin
Financial Review | Net Interest Income and Net Interest Margin Net Interest Income and Margin ($MM, %) Key Assets ($B) Q4/24 Y/Y Q/Q Liquid assets(1) $ 11.1 -3% -2% 1.76% 1.80% 1.80% 1.79% 1.77% Personal loans $ 2.1 -18% -4% Residential mortgage loans $ 16.5 -1% +1% Commercial loans(2) $ 16.6 -7% +1
Slide 11: Optimizing Funding Structure and Costs
Financial Review | Optimizing Funding Structure and Costs Funding ($B)(1)(2) Y/Y Highlights Total funding decreased by $2.3B • Funding reduction was managed in line with Loans reduction of $1.8B 42.1 • Deposits down $2.9B mainly from Partnership Deposits and 39.8 39.8 2.9 Advisors & Brokers 0.3 Shar
Slide 12: Other Income
Financial Review | Other Income Other Income ($MM)(1) Q4/24 Y/Y Q/Q Y/Y Highlights • Reported Other income increased by $12.3MM, including a profit Income from financial instruments $ 14.4 +192% -25% the on sale of the retail full-service investment broker division of Profit on sale of assets under
Slide 13: Non-Interest Expenses (NIE)
Financial Review | Non-Interest Expenses (NIE) NIE ($MM) Q4/24 Y/Y Q/Q Y/Y Highlights • Reported NIE decreased by $2.8MM, mainly from professional fees Salaries and employee benefits $ 87.2 -1% -13% and other expenses related to the mainframe outage that occurred in Premises and technology $ 52.1 +1
Slide 14: Strong Capital Position
Financial Review | Strong Capital Position Common Equity Tier 1 Capital Ratio (CET1)(1) Risk-Weighted Assets (RWA) ($B)(1) 10.9% 10.9% 10.4% 10.2% 9.9% 22.6 21.9 21.6 20.7 20.9 Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 Evolution of the CET1 Ratio (%)(2) Y/Y Highlights • CET1 ratio
Slide 15: Strong and Diversified Commercial Loan Portfolio
Financial Review | Strong and Diversified Commercial Loan Portfolio Commercial Loan Portfolio ($B)(1)(2) Pan-Canadian Portfolio and U.S. Presence (as at October 31, 2024) 17.8 Commercial Lending Quebec 16.5 16.6 4.1 Inventory financing 24% Ontario 3.8 3.8 Equipment financing 40% Alberta & Prairies 1
Slide 16: Diversified Inventory Financing Portfolio
Financial Review | Diversified Inventory Financing Portfolio Inventory Finance Overview Inventory Finance Main Product Lines (as at October 31, 2024) • 6,300+ dealers in the U.S. and Canada 12% Marine 7% Recreational Vehicle • $800,000 average dealer line utilization(1) 41% Trailer 11% Power Sports
Slide 17: Strong Commercial Real Estate Portfolio
Financial Review | Strong Commercial Real Estate Portfolio Commercial Real Estate Portfolio (as at October 31, 2024) Portfolio Overview • >67% of our portfolio is residential: 55% Multi- Insured Term Loans - Multi- Residential and 12% Condos Residential 9% Conventional Term Loans - Multi- • LTV on u
Slide 18: High Quality Residential Mortgage Loan Portfolio
Financial Review | High Quality Residential Mortgage Loan Portfolio Insured vs Uninsured Pan-Canadian Portfolio (as at October 31, 2024) 12% 13% 5% 13% 10% Quebec 29% 28% 27% Alt-A 32% Ontario Conventional 16% Alberta & Prairies British Columbia 59% 59% 60% Prime insured Atlantic Provinces 37% Q4/23
Slide 19: Allowances for Credit Losses
Financial Review | Allowances for Credit Losses Allowances for Credit Losses (ACL) ($MM) Y/Y Highlights • ACL decreased by $11.0MM, mostly as a result of lower allowances on 214.8 218.5 225.2 224.2 performing loans 203.8 58.7 55.1 71.4 82.2 69.6 Q/Q Highlights • ACL decreased by $20.4MM, mostly as a
Slide 20: Provision for Credit Losses
Financial Review | Provision for Credit Losses Provision for Credit Losses (PCL) ($MM) Y/Y Highlights 17.9 16.3 • PCL decreased by $6.2MM as a result of higher releases of provisions on performing loans 16.7 10.4 16.9 • PCL as a % of average loans and acceptances decreased by 6 bps 7.7 28.2 28.1 17.
Slide 21: Impaired Loans
Financial Review | Impaired Loans Gross Impaired Loans ($MM, bps) Net Impaired Loans ($MM, bps) 108 107 88 84 84 377.6 378.8 64 309.2 67 9.8 295.4 62 12.0 52 6.6 303.6 47.2 50.6 46 7.5 47.4 232.2 44.2 13.6 244.5 42.0 9.0 228.0 189.4 15.4 169.3 39.9 18.9 39.1 10.3 41.9 11.8 37.2 318.4 318.4 39.8 243.
Slide 22: Appendices
si Appendices
Slide 23: Appendices | Adjusting Items
Appendices | Adjusting Items Q4/24 Q3/24 Q4/23 2024 2023 Pre-Tax After- Impact Pre-Tax After- Impact Pre-Tax After- Impact Pre-Tax After- Impact Pre-Tax After- Impact In $MM(1) Impact Tax ($ / Impact Tax ($ / Impact Tax ($ / Impact Tax ($ / Impact Tax ($ / Impact Share) Impact Share) Impact Share) I
Slide 24: Appendices | Non-GAAP Financial Measures
Appendices | Non-GAAP Financial Measures In $MM(1) Q4/24 Q3/24 Q4/23 2024 2023 Other income $76.9 $75.7 $64.5 $298.7 $279.2 Profit on sale of assets under administration(2) -14.0 — — -14.0 — Adjusted other income $62.9 $75.7 $64.5 $284.7 $279.2 Income (loss) before income taxes $45.9 $40.0 $33.5 -$2
Slide 25: Investor Relations Contact
Investor Relations Contact Raphael Ambeault Head, Investor Relations (514) 601-0944 Raphael.Ambeault@laurentianbank.ca www.laurentianbank.ca/en/about-us/investor-relations
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