Laurentian Bank Of Canada · TSX:LB
Laurentian Bank Of Canada — Q4 2023 Earnings Presentation
26 slides from Laurentian Bank Of Canada's earnings presentation, Dec 7, 2023
Slide 1: Investor Presentation Fourth Quarter 2023
Investor Presentation Fourth Quarter 2023 December 7, 2023
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 forward-looking statements within the meaning of a
Slide 3: Introduction & Strategic Overview
Eric Provost President & Chief Executive Officer Introduction & Strategic Overview
Slide 4: Introduction | FY2023 Results Highlights
Introduction | FY2023 Results Adjusted Net Income(1) $208.3MM Reported Net Income Highlights $181.1MM Adjusted EPS(2) $4.52 Reported EPS $3.89 ✓ Higher interest income from Adjusted Efficiency Ratio(2) 69.9% commercial loan portfolio Reported Efficiency Ratio(3) 73.5% ✓ Solid liquidity position Adju
Slide 5: Introduction | Q4/23 Results Highlights
Introduction | Q4/23 Results Adjusted Net Income(1) $44.7MM Reported Net Income Highlights $30.6MM Adjusted EPS(2) $1.00 Reported EPS $0.67 ✓ Results impacted by September Adjusted Efficiency Ratio(2) 72.0% 2023 mainframe outage and Reported Efficiency Ratio(3) restructuring charges 79.7% Adjusted P
Slide 6: Renewed Senior Leadership Team
Introduction | Renewed Senior Leadership Team ÉRIC PROVOST SÉBASTIEN BÉLAIR BINDU CUDJOE EVP, Chief Operating Officer EVP, Chief Legal Officer, Chief President & CEO Equity & Diversity Officer, and Corporate Secretary YVAN DESCHAMPS KELSEY GUNDERSON THIERRY LANGEVIN WILLIAM MASON EVP, Chief Financia
Slide 7: Introduction | Moving Forward
Introduction | Moving Forward Moving forward, the Bank will be focused on three priorities: Customer Focus Simplification Technology Offer world-class service and sound Simplify our organizational structure Focus on run-the-bank investments financial advice while building an while streamlining produ
Slide 8: Financial Review
Yvan Deschamps Executive Vice President & Chief Financial Officer Financial Review
Slide 9: FY23 Financial Results
Financial Review | FY23 Financial Results Reported ($MM) 2023 Y/Y Y/Y Highlights Total revenue $ 1,025.5 −1% • Total revenue was relatively in line with last year Provision for credit losses (PCL) $ 61.6 +8% • Net interest income was up $13.0MM, mainly due to higher interest Non-interest expenses (N
Slide 10: Q4/23 Financial Results
Financial Review | Q4/23 Financial Results Y/Y Highlights Reported ($MM) Q4/23 Y/Y Q/Q • Total revenue decreased by $9.7MM, mostly due to other income, Total revenue $ 247.4 -4% -5% which was negatively impacted by unfavourable market conditions Provision for credit losses (PCL) $ 16.7 -7% +25% • Ad
Slide 11: 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) Q4/23 Y/Y Q/Q Liquid assets(1) $ 11.4 -3% -6% 1.77% 1.77% 1.80% 1.84% 1.76% Personal loans $ 2.6 -21% -6% Residential mortgage loans $ 16.7 +3% +2% $183.8 $187.1 $184.2 $192.1 $182.
Slide 12: Optimizing Funding Structure and Costs
Financial Review | Optimizing Funding Structure and Costs Funding(1) ($B) Y/Y Highlights Total funding decreased by $0.3B • Deposits were down $1.1B 42.4 42.1 42.1 • This was offset by a $0.7B increase of cost-efficient long-term 2.8 2.8 2.9 debt related to securitization activities and the reductio
Slide 13: Other Income Impacted by Market Volatility
Financial Review | Other Income Impacted by Market Volatility Other Income ($MM) Q4/23 Y/Y Q/Q Y/Y Highlights Lending fees • Other income decreased by $8.8MM mainly due to $ 16.8 -3% -% unfavourable market conditions as well as a $2.3MM reduction in service charges related to the outage Income from
Slide 14: Non-Interest Expenses (NIE)
Financial Review | Non-Interest Expenses (NIE) NIE ($MM) Q4/23 Y/Y Q/Q Y/Y Highlights Salaries and employee benefits $ 88.3 -1% -10% • Reported NIE increased by $23.1MM and include $15.9MM of restructuring and strategic-review related charges as well as charges of Premises and technology $ 51.8 +10%
Slide 15: Strong Capital Position
Financial Review | Strong Capital Position Common Equity Tier 1 Capital Ratio (CET1)(1) Risk-Weighted Assets (RWA) ($B)(1) 9.9% 9.8% 9.3% 9.1% 9.1% 23.9 23.9 23.8 22.6 22.7 Q4/22 Q1/23 Q2/23 Q3/23 Q4/23 Q4/22 Q1/23 Q2/23 Q3/23 Q4/23 Evolution of the CET1 Ratio (%) Y/Y Highlights • CET1 ratio up 80 b
Slide 16: Strong and Diversified Commercial Loan Portfolio
Financial Review | Strong and Diversified Commercial Loan Portfolio Commercial Loan Portfolio ($B)(1) A Pan-Canadian Portfolio and a U.S. 18.2 17.8 Presence (as at October 31, 2023) 17.8 Commercial Lending ($B) 4% British Columbia & Territories 4.3 4.0 4.1 5% Inventory financing 22% Alberta & Prairi
Slide 17: Diversified Inventory Financing Portfolio
Financial Review | Diversified Inventory Financing Portfolio Inventory Finance Main Product Lines Inventory Finance Overview (as at October 31, 2023) ➢ 5,600+ dealers in the U.S. and Canada Marine 19% Recreational Vehicle ➢ $700,000 average dealer line utilization 9% 40% Trailer Manufactured Housing
Slide 18: Strong Commercial Real Estate Portfolio
Financial Review | Strong Commercial Real Estate Portfolio Commercial Real Estate Portfolio Portfolio Overview (as at October 31, 2023) • 65% of our portfolio is residential: 55% Multi- Insured Term Loans - Multi-Residential Residential and 10% Condos ➢ LTV on uninsured multi-residential 9% Conventi
Slide 19: High Quality Residential Mortgage Loan Portfolio
Financial Review | High Quality Residential Mortgage Loan Portfolio More than 80% of our residential mortgage portfolio is fixed rate of which ~80% will mature in 2025 or later Insured vs Uninsured A Pan-Canadian Portfolio(2) (as at October 31, 2023) 5% 10% 33% 30% 29% British Columbia Conventional
Slide 20: Allowances for Credit Losses
Financial Review | Allowances for Credit Losses Allowances for Credit Losses (ACL) ($MM) Y/Y Highlights 211.6 217.1 214.8 • ACL increased by $13.6MM, mostly as a result of higher allowances on 201.2 203.5 commercial loans due to credit migration 52.3 50.4 54.5 60.7 58.7 Q/Q Highlights • ACL decrease
Slide 21: Provision for Credit Losses
Financial Review | Provision for Credit Losses Provision for Credit Losses (PCL) ($MM) Y/Y Highlights • PCL decreased by $1.2MM, mostly reflecting lower provisions on performing loans due to volume reduction and credit migration, partly 17.8 15.4 16.7 offset by higher provisions on impaired loans 16
Slide 22: Impaired Loans
Financial Review | Impaired Loans Gross Impaired Loans ($MM, bps) Net Impaired Loans ($MM, bps) 46 62 38 55 49 34 32 169.3 45 28 42 228.0 202.1 141.4 184.1 129.6 170.6 120.1 157.7 105.4 117.7 141.5 167.2 79.2 90.6 126.4 65.7 97.3 109.5 51.1 44.0 35.4 40.4 41.9 45.0 41.8 33.7 38.4 39.8 47.6 12.8 17.1
Slide 23: Appendices
si Appendices
Slide 24: Appendices | Adjusting Items
Appendices | Adjusting Items Q4/23 Q3/23 Q4/22 2023 2022 Pre-Tax After- Impact Pre-Tax After- Impact Pre-Tax After- Impact Pre-Tax After-Tax Impact Pre-Tax After-Tax Impact Impact Tax ($ / Impact Tax ($ / Impact Tax ($ / Impact Impact ($ / Impact Impact ($ / ($MM) Impact Share) ($MM) Impact Share) (
Slide 25: Appendices | Non-GAAP Financial Measures
Appendices | Non-GAAP Financial Measures In $MM Q4/23 Q3/23 Q4/22 2023 2022 Income before income taxes $33.5 $57.4 $65.1 $210.4 $275.7 Provision for credit losses 16.7 13.3 17.8 61.6 56.9 Pre-tax pre-provision (PTPP) income(1) 50.2 70.8 83.0 272.0 332.6 Pre-tax impact of adjusting items(1) 19.1 11.4
Slide 26: Investor Relations Contact
Investor Relations Contact Andrew Chornenky Vice President, Investor Relations (416) 846-4845 Andrew.Chornenky@lbcfg.ca www.lbcfg.ca/investors-centre
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