Laurentian Bank of Canada · TSX:LB.PR.H

Laurentian Bank of Canada — Q1 2010 Earnings Presentation

25 slides from Laurentian Bank of Canada's earnings presentation, Mar 3, 2010

  1. Slide 1: 1st Quarter 2010 Conference Call

    1st quarter 2010 CONFERENCE CALL Réjean Robitaille, President & CEO Michel C. Lauzon, CFO March 3, 2010 @ 2:00 p.m. 1-866-226-1792

  2. Slide 2: Forward-Looking Statements

    FORWARD-LOOKING STATEMENTS In this document and in other documents filed with Canadian regulatory authorities or in other communications, Laurentian Bank of Canada (the “Bank”) may from time to time make written or oral forward-looking statements within the meaning of applicable securities legislati

  3. Slide 3: Overview of 1st Quarter 2010

    OVERVIEW OF 1st QUARTER 2010 Q1-2010 Q1-2009 Variance Q1-10 vs Q1-09 Net income $32.0 M $25.0 M 28% Diluted EPS $1.21 $0.91 33% ROE 12.3% 10.0% 230 bps. Q1-2010 HIGHLIGHTS ƒ Strong revenue growth ƒ Strong loan growth ƒ Positive operating leverage ƒ Lower securitization revenue ƒ Significantly improv

  4. Slide 4: Tracking of 2010 Objectives

    TRACKING OF 2010 OBJECTIVES 2010 Q1-2010 OBJECTIVES RESULTS Return on common shareholders’ equity 10.0% to 12.0% 12.3% Diluted net income per share $4.00 to $4.70 $1.21 Revenue growth 5% to 10% 15% Efficiency ratio 70% to 67% 66.7% Tier 1 capital ratio Minimum of 9.5% 11.0% Symbol: LB, TSX Page 4

  5. Slide 5: Financial Highlights Q1-2010 vs Q1-2009

    FINANCIAL HIGHLIGHTS Q1-2010 vs Q1-2009 Q1-2010 Q1-2009 Variance In millions of dollars, except per share amounts Q1-2010 vs Q1-2009 Net interest income 120.7 98.7 22% Other income 59.7 57.8 3% Total revenue 180.4 156.5 15% Provision for credit losses 16.0 12.0 33% Non-interest expenses 120.4 110.7

  6. Slide 6: Net Interest Margin

    NET INTEREST MARGIN 2.50% 2.15% 2.19% 2.13% 2.00% 2.00% 1.92% 1.50% 1.00% 0.50% 0.00% Q1-2009 Q2-2009 Q3-2009 Q4-2009 Q1-2010 Symbol: LB, TSX Page 6

  7. Slide 7: Provision for Loan Losses

    PROVISION FOR LOAN LOSSES FOR THE THREE MONTHS ENDED In thousands of $ January 31, October 31, January 31, 2010 2009 2009 Personal loans and Visa cards 8,658 9,746 9,173 Residential mortgages 263 523 670 Commercial mortgages 794 362 19 Commercial loans and other 6,285 5,369 2,138 General Provision 0

  8. Slide 8: Credit Quality

    CREDIT QUALITY Evolution of gross and net impaired loans 180 157 160 137 140 131 121 120 104 In millions of $ 102 100 80 60 36 40 23 20 5 0 -20 -9 -11 -11 2005 2006 2007 2008 2009 Q1/10 Gross impaired loans Net impaired loans Symbol: LB, TSX Page 8

  9. Slide 9: Efficiency Ratio

    EFFICIENCY RATIO 79.6% 76.4% 76.1% 73.2% 70.7% 70.8% 66.7% 667 630 584 540 510 In millions of $ 473 472 427 446 411 377 390 180 120 2004 2005 2006 2007 2008 2009 Q1/10 Total revenue Non-interest expenses Efficiency ratio Symbol: LB, TSX Page 9

  10. Slide 10: Main Portfolio Growth

    MAIN PORTFOLIO GROWTH Last 12 months as at January 31, 2010 (consolidated) 3000 Excluding securitization + 18% 2500 + $2,853 + 13% + $2,193 2000 + 19% + $1,611 In millions of $ + 15% 1500 + $2,140 + 25% 1000 + $1,558 500 + 24% + $619 - 1% - $38 0 Total loans and Residential Personal loans Commercial

  11. Slide 11: Business Segments Performance

    BUSINESS SEGMENTS PERFORMANCE Q1-2010 Retail & Real Estate & B2B Trust LBS & SME Quebec Commercial Capital Other TOTAL (1)(3) Markets (3) Total revenue $112.5 M $27.6 M $29.8 M $14.5M - $4.0 M $180.4M (growth Q1-2010 + 7% + 38% + 27% + 18% + 1.1% + 15% versus Q1-2009) Net income $12.6 M $12.7 M $11.

  12. Slide 12: Retail & SME Quebec

    RETAIL & SME QUEBEC 78% 77% Q1-2010 versus Q1-2009 ƒ Total revenue: + 7% (+ $7.7 M) ƒ Net income: + 23% (+ $2.4 M) In millions of $ 104.8 112.5 Main drivers ƒ Average loans: + 9% (+ $969 M to $11,464 M) ƒ Average deposits: + 10% (+ $758 M to $8,440 M) ƒ Relatively stable loan losses ($9.8 M versus $

  13. Slide 13: Real Estate & Commercial

    REAL ESTATE & COMMERCIAL 33% Q1-2010 versus Q1-2009 ƒ Total revenue: + 38% (+ $7.6 M) ƒ Net income: + 58% (+ $4.6 M) In millions of $ Main drivers 15% ƒ Average loans: + 21% (+ $439 M to $2,539 M) ƒ Average deposits: + 163% (+ $303 M to $489 M) 27.6 20.0 ƒ Higher net interest income due to loan grow

  14. Slide 14: B2B Trust

    B2B TRUST Q1-2010 versus Q1-2009 46% 42% ƒ Total revenue: + 27% (+ $6.3 M) ƒ Net income: + 36% (+ $2.9 M) In millions of $ Main drivers ƒ Average loans: + 14% (+ $567 M to $4,695 M) 29.8 23.5 ƒ Average deposits: + 41% (+ $2,628 M to $9,032 M) ƒ Higher net interest income due to volume growth 8.1 11.

  15. Slide 15: Laurentian Bank Securities & Capital Markets

    LAURENTIAN BANK SECURITIES & CAPITAL MARKETS Q1-2010 versus Q1-2009 81% ƒ Total revenue: + 18% (+ $2.2 M) 71% ƒ Net income: - 27% (- $0.7 M) In millions of $ Main drivers ƒ Continued strong performance of the Institutional 12.3 14.5 Fixed Income division and improvements in the Retail and Institutio

  16. Slide 16: Other

    OTHER Q1-2010 versus Q1-2009 ƒ Total revenue: - $4.0 M ƒ Net income: - $6.1 M 13 9 Main drivers In millions of $ 5 1 ƒ Net interest income improved as Q1-2009 was -3 particularly affected by higher funding costs -7 -4.0 -3.8 -4.0 ƒ High level of low yielding liquid assets continued to -6.1 -11 exert

  17. Slide 17: Conclusion

    CONCLUSION We continue to build on our solid foundations by: ƒ Diversifying our revenues ƒ Increasing the share of wallet of each client ƒ Utilizing the perfect combination of strength and agility to pursue profitable growth Symbol: LB, TSX Page 17

  18. Slide 18: Q1-2010 Conference Call Attendance

    Q1-2010 CONFERENCE CALL ATTENDANCE ƒ Réjean Robitaille, President and Chief Executive Officer ƒ Michel C. Lauzon, Executive Vice-President and Chief Financial Officer ƒ Luc Bernard, Executive Vice-President, Retail Financial Services and SME ƒ François Desjardins, Executive Vice-President of the Ban

  19. Slide 19: Appendices

    LAURENTIAN BANK APPENDICES

  20. Slide 20: Laurentian Bank Overview

    LAURENTIAN BANK OVERVIEW ƒ 3rd largest financial institution in Québec in terms of branches and 7th largest Canadian Schedule I chartered bank based on assets ƒ More than 200 points of service across Canada, including 156 retail branches and 406 ABMs ƒ $23 Billion of assets on balance sheet as of Ja

  21. Slide 21: Business Segments

    4 BUSINESS SEGMENTS LBC Real Estate & Laurentian Bank Retail & SME Quebec B2B Trust Commercial Securities & Capital Markets ƒ Personal Banking: ƒ Real estate financing throughout ƒ Financial products and services Complete range of brokerage Transactional, financing and Canada offered through a netwo

  22. Slide 22: Key Strengths

    KEY STRENGTHS 1. Solid financial situation ƒ Strong balance sheet and capital ratios ƒ High level of liquidity 2. Low risk profile ƒ Predominantly retail loan book and deposit base ƒ High proportion of insured mortgages ƒ Diversified activities across Canada 3. Efficient management approach ƒ Strong

  23. Slide 23: Loan Portfolios and Funding

    LOAN PORTFOLIOS AND FUNDING Loan portfolios (January 31, 2010) Commercial mortgages, commercial loans and BAs Funding sources to support 19% Residential lending activities mortgages (January 31, 2010) 47% Sub. Share. equity debentures 5% Personal 1% Securitization Bus., banks Pers. term 12% and othe

  24. Slide 24: Management Committee

    MANAGEMENT COMMITTEE Réjean Robitaille Luc Bernard President and Chief Executive Officer Executive Vice-President President of Laurentian Bank since 2006 Retail Financial Services and SME With Laurentian Bank since 1988 With Laurentian Bank since 2001 Michel C. Lauzon François Desjardins Executive V

  25. Slide 25: Board Members

    BOARD MEMBERS L. Denis Desautels O.C., FCA (2001) Isabelle Courville (2007) Marie-France Poulin (2009) Chairman of the Board President Vice-President Laurentian Bank of Canada Hydro-Québec TransÉnergie Camanda Group Chartered Accountant and Corporate Director Pierre Genest (2006) Réjean Robitaille (

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