Laurentian Bank Of Canada · TSX:LB
Laurentian Bank Of Canada — Q2 2025 Earnings Presentation
24 slides from Laurentian Bank Of Canada's earnings presentation, May 30, 2025
Slide 1: Investor Presentation Second Quarter 2025
Investor Presentation Second Quarter 2025 May 30, 2025
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
Éric Provost President & Chief Executive Officer Introduction
Slide 4: Introduction | Q2/25 Results Highlights
Introduction | Q2/25 Results Net Income EPS Highlights Adjusted(1) $34.0MM Adjusted(2) $0.73 Reported $32.3MM Reported $0.69 ROE Efficiency Ratio • Stable net interest margin Adjusted(2) 5.2% Adjusted(2) 75.2% • Maintained solid liquidity levels Reported(2) 4.9% Reported(3) 76.1% • Strong CET1 capit
Slide 5: One year into our Strategic Plan
Introduction | One year into our Strategic Plan ✓ Commercial banking specializations: Concentration increased to 49% ✓ Technology transformation: Continued commitment and investments driving progress ✓ Disciplined approach to credit: Maintaining strong portfolio performance and resilience ✓ Customer
Slide 6: Financial Review
Yvan Deschamps Executive Vice President & Chief Financial Officer Financial Review
Slide 7: Q2/25 Financial Results
Financial Review | Q2/25 Financial Results Reported ($MM) Q2/25 Y/Y Q/Q Y/Y Highlights Total revenue $ 242.5 -4% -3% • Total revenue declined by $10.1MM mainly from lower other income Provision for credit losses (PCL) $ 16.7 -7% +10% from the sale of the retail investment broker divisions and lower
Slide 8: 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) Q2/25 Y/Y Q/Q Liquid assets(1) $ 12.6 +14% +4% 1.80% 1.79% 1.77% 1.85% 1.85% Personal loans $ 2.0 -12% -% Residential mortgage loans $ 16.1 -4% -1% Commercial loans $ 17.5 +2% +1% 1
Slide 9: Optimizing Funding Structure and Costs
Financial Review | Optimizing Funding Structure and Costs Funding ($B)(1) Y/Y Highlights Total funding increased by $0.1B 40.9 • Deposits down $0.7B mainly from partnership deposits as 40.8 40.6 customers continued to allocate funds back into market activity 2.7 2.9 2.9 Shareholders' equity • Offset
Slide 10: Other Income
Financial Review | Other Income Other Income ($MM)(1) Q2/25 Y/Y Q/Q Y/Y Highlights • Other income decreased by $12.6MM mainly from the sale of the Income from financial instruments $ 15.9 +3% -2% retail investment broker divisions and lower lending fees from Income from mutual funds $ 10.4 +3% -2% t
Slide 11: Non-Interest Expenses (NIE)
Financial Review | Non-Interest Expenses (NIE) NIE ($MM) Q2/25 Y/Y Q/Q Y/Y Highlights • Reported NIE decreased by $201.8MM, mainly from impairment and Salaries and employee benefits $ 92.4 -7% -5% restructuring charges recorded in the prior fiscal year Premises and technology $ 51.8 +3% +2% • Adjust
Slide 12: Strong Capital Position
Financial Review | Strong Capital Position Common Equity Tier 1 Capital Ratio (CET1)(1) Risk-Weighted Assets (RWA) ($B)(1) 11.0% 10.9% 10.9% 10.9% 10.4% 21.6 20.7 20.9 21.2 20.9 Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 Evolution of the CET1 Ratio (%)(2) Y/Y Highlights • CET1 ratio
Slide 13: Strong and Diversified Commercial Loan Portfolio
Financial Review | Strong and Diversified Commercial Loan Portfolio Commercial Loan Portfolio ($B)(1) Pan-Canadian Portfolio and U.S. Presence (as at April 30, 2025) 17.2 17.2 17.5 Commercial Lending Quebec Inventory financing 26% Ontario 4.3 4.3 4.5 Equipment financing Alberta & Prairies 1.7 41% 2.
Slide 14: Diversified Inventory Financing Portfolio
Financial Review | Diversified Inventory Financing Portfolio Inventory Finance Overview Inventory Finance Main Product Lines (as at April 30, 2025) • 6,400+ dealers in the U.S. and Canada 11% Marine 6% Recreational Vehicle • $900,000 average dealer line utilization(1) 39% Trailer 11% Power Sports Ma
Slide 15: Strong Commercial Real Estate Portfolio
Financial Review | Strong Commercial Real Estate Portfolio Commercial Real Estate Portfolio (as at April 30, 2025) Portfolio Overview • >66% of our portfolio is residential: 55% Multi-Residential Insured Term Loans - Multi- and 11% Condos Residential 9% Conventional Term Loans - Multi- • Loan to Val
Slide 16: High Quality Residential Mortgage Loan Portfolio
Financial Review | High Quality Residential Mortgage Loan Portfolio Insured vs Uninsured Pan-Canadian Portfolio (as at April 30, 2025) 5% 13% 13% 13% 10% Quebec 28% 27% 26% Alt-A 31% Ontario Conventional 16% Alberta & Prairies British Columbia 59% 60% 61% Insured Atlantic Provinces 38% Q2/24 Q1/25 Q
Slide 17: Allowances for Credit Losses
Financial Review | Allowances for Credit Losses Allowances for Credit Losses (ACL) ($MM) Y/Y Highlights • ACL decreased by $20.9MM, mostly as a result of lower allowances on 225.2 224.2 performing loans 203.8 206.9 204.3 71.4 82.2 69.6 78.5 74.8 Q/Q Highlights • ACL decreased by $2.6MM, mostly as a
Slide 18: Allowances for Credit Losses Evolution
Financial Review | Allowances for Credit Losses Evolution Allowances for Credit Losses (bps)(1) Allowances for Credit Losses Highlights From Q1/19 to Q2/25 • During the Covid-19 period, the ACL level was materially increased 85 • Since then, the ACL level has been maintained 61 57 32 Q1/19 Q1/20 Q1/
Slide 19: Provision for Credit Losses
Financial Review | Provision for Credit Losses Provision for Credit Losses (PCL) ($MM) Y/Y Highlights 17.9 16.3 • PCL decreased by $1.2MM as a result of lower provisions on impaired 15.2 loans, partly offset by higher provisions on performing loans 10.4 16.7 • PCL as a % of average loans and accepta
Slide 20: Impaired Loans
Financial Review | Impaired Loans Gross Impaired Loans ($MM, bps) Net Impaired Loans ($MM, bps) 112 115 94 108 107 88 90 84 399.8 408.2 333.4 84 377.6 378.8 309.2 321.3 7.3 6.8 64 295.4 5.0 12.0 9.8 48.0 6.6 5.1 44.8 53.0 7.5 49.9 303.6 47.2 50.6 44.2 47.4 232.2 13.6 9.0 42.0 39.9 339.5 353.4 266.4
Slide 21: Appendices
sit Appendices
Slide 22: Appendices | Adjusting Items
Appendices | Adjusting Items Q2/25 Q1/25 Q2/24 In $MM(1) Pre-Tax After-Tax Impact Pre-Tax After-Tax Impact Pre-Tax After-Tax Impact Impact Impact ($ / Share) Impact Impact ($ / Share) Impact Impact ($ / Share) Restructuring and other impairment $2.2 $1.6 $0.04 $2.0 $1.5 $0.03 $40.8 $30.0 $0.69 charg
Slide 23: Appendices | Non-GAAP Financial Measures
Appendices | Non-GAAP Financial Measures In $MM(1) Q2/25 Q1/25 Q2/24 Other income $60.3 $63.4 $73.0 Profit on sale of assets under administration(2) — -0.9 — Adjusted other income $60.3 $62.6 $73.0 Income before income taxes $41.3 $47.5 -$151.7 Provision for credit losses 16.7 15.2 17.9 Pre-tax pre-
Slide 24: 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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