Laurentian Bank Of Canada · TSX:LB
Laurentian Bank Of Canada — Q1 2024 Earnings Presentation
24 slides from Laurentian Bank Of Canada's earnings presentation, Feb 29, 2024
Slide 1: Investor Presentation First Quarter 2024
Investor Presentation First Quarter 2024 February 29, 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 forward-looking statements within the meaning of a
Slide 3: Introduction & Strategic Overview
Éric Provost President & Chief Executive Officer Introduction & Strategic Overview
Slide 4: Introduction | Q1/24 Results Highlights
Introduction | Q1/24 Results Adjusted Net Income(1) $44.2MM Reported Net Income Highlights $37.3MM Adjusted EPS(2) $0.91 Reported EPS $0.75 Sequential Net Interest Margin Adjusted Efficiency Ratio(2) 73.0% (NIM) expansion Reported Efficiency Ratio(3) 76.6% Maintained solid liquidity Adjusted PTP
Slide 5: Introduction | Renewed Senior Leadership Team
Introduction | Renewed Senior Leadership Team Newest members of Laurentian Bank’s Senior Leadership Team ÉRIC PROVOST SÉBASTIEN BÉLAIR BINDU CUDJOE YVAN DESCHAMPS KELSEY GUNDERSON President & CEO EVP, Chief Operating Officer EVP, Chief Legal Officer, Chief EVP, Chief Financial Officer EVP, Capital M
Slide 6: Introduction | Moving Forward
Introduction | Moving Forward Moving forward, the Bank will be focused on three priorities: Customer Focus Simplification Technology Offer world-class service and sound Simplify our organizational structure Focus on run-the-bank investments financial advice while building an while streamlining produ
Slide 7: Financial Review
Yvan Deschamps Executive Vice President & Chief Financial Officer Financial Review
Slide 8: Q1/24 Financial Results
Financial Review | Q1/24 Financial Results Y/Y Highlights Reported ($MM) Q1/24 Y/Y Q/Q • Total revenue decreased by $1.7MM, mostly due to lower interest Total revenue $ 258.3 -1% +4% income from lower loan volumes Provision for credit losses (PCL) $ 16.9 +9% +1% • Adjusted NIE increased by $8.1MM, m
Slide 9: Net Interest Income and Net Interest Margin
Financial Review | Net Interest Income and Net Interest Margin Net Interest Income and Margin ($MM, %) Key Assets ($B) Q1/24 Y/Y Q/Q Liquid assets(1) $ 10.1 -11% -11% 1.77% 1.80% 1.84% 1.76% 1.80% Personal loans $ 2.4 -21% -6% Residential mortgage loans $ 17.0 +5% +2% $187.1 $184.2 $192.1 $182.9 $18
Slide 10: Optimizing Funding Structure and Costs
Financial Review | Optimizing Funding Structure and Costs Funding(1) ($B) Y/Y Highlights Total funding decreased by $1.7B • Deposits were down $2.5B 42.8 42.1 41.1 • This was offset by a $0.7B increase of cost-efficient long-term 2.8 debt related to securitization activities and the $1.0B reduction
Slide 11: Other Income
Financial Review | Other Income Other Income ($MM) Q1/24 Y/Y Q/Q Y/Y Highlights Lending fees • Other income was relatively unchanged $ 14.1 -13% -16% • Higher income from financial instruments was mostly offset Income from mutual funds $ 10.0 -10% -3% by lower lending fees due to tempered commercial
Slide 12: Non-Interest Expenses (NIE)
Financial Review | Non-Interest Expenses (NIE) NIE ($MM) Q1/24 Y/Y Q/Q Y/Y Highlights Salaries and employee benefits $ 102.5 -1% +16% • Reported NIE increased by $14.2MM and include $6.1MM of restructuring charges Premises and technology $ 52.1 +11% +1% • Adjusted NIE increased by $8.1MM, mainly due
Slide 13: Strong Capital Position
Financial Review | Strong Capital Position Common Equity Tier 1 Capital Ratio (CET1)(1) Risk-Weighted Assets (RWA) ($B)(1) 10.2% 9.9% 9.8% 9.3% 9.1% 23.9 23.8 22.7 22.6 21.9 Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 Evolution of the CET1 Ratio (%) Y/Y Highlights • CET1 ratio up 110
Slide 14: Strong and Diversified Commercial Loan Portfolio
Financial Review | Strong and Diversified Commercial Loan Portfolio Commercial Loan Portfolio ($B)(1) A Pan-Canadian Portfolio and a U.S. 18.3 17.3 Presence (as at January 31, 2024) 17.8 Commercial Lending ($B) 3% 6% British Columbia & Territories 4.5 4.1 4.2 Inventory financing 23% Alberta & Prairi
Slide 15: Diversified Inventory Financing Portfolio
Financial Review | Diversified Inventory Financing Portfolio Inventory Finance Main Product Lines Inventory Finance Overview (as at January 31, 2024) 5,800+ dealers in the U.S. and Canada Marine 17% Recreational Vehicle $700,000 average dealer line utilization 8% 44% Trailer 11% Manufactured Hou
Slide 16: Strong Commercial Real Estate Portfolio
Financial Review | Strong Commercial Real Estate Portfolio Commercial Real Estate Portfolio Portfolio Overview (as at January 31, 2024) • >65% of our portfolio is residential: 55% Multi- Insured Term Loans - Multi-Residential Residential and 12% Condos LTV on uninsured multi-residential 9% Convent
Slide 17: High Quality Residential Mortgage Loan Portfolio
Financial Review | High Quality Residential Mortgage Loan Portfolio More than 80% of our residential mortgage portfolio is fixed rate of which ~80% will mature in 2025 or later Insured vs Uninsured A Pan-Canadian Portfolio (as at January 31, 2024) 5% 10% 31% 29% 29% British Columbia Conventional Alb
Slide 18: Allowances for Credit Losses
Financial Review | Allowances for Credit Losses Allowances for Credit Losses (ACL) ($MM) Y/Y Highlights 211.6 217.1 214.8 218.5 • ACL increased by $15.0MM, mostly as a result of higher allowances on 203.5 commercial loans 50.4 54.5 60.7 58.7 55.1 Q/Q Highlights • ACL increased by $3.7MM mainly as a
Slide 19: Provision for Credit Losses
Financial Review | Provision for Credit Losses Provision for Credit Losses (PCL) ($MM) Y/Y Highlights • PCL increased by $1.5MM mainly as a result of higher provisions on performing loans 16.2 16.7 16.9 15.4 • PCL as a % of average loans and acceptances increased by 2 bps 13.3 9.5 9.2 12.1 13.4 17.6
Slide 20: Impaired Loans
Financial Review | Impaired Loans 52 Gross Impaired Loans ($MM, bps) Net Impaired Loans ($MM, bps) 46 67 62 38 55 189.4 49 34 32 169.3 45 244.5 228.0 202.1 141.4 184.1 129.6 170.6 120.1 117.7 141.9 167.2 190.0 90.6 141.5 65.7 79.2 109.5 126.4 44.0 35.4 40.4 41.9 41.8 33.7 38.4 39.8 37.2 39.1 17.1 22
Slide 21: Appendices
si Appendices
Slide 22: Appendices | Adjusting Items
Appendices | Adjusting Items Q1/24 Q4/23 Q1/23 Pre-Tax After-Tax Impact Pre-Tax After-Tax Impact Pre-Tax After-Tax Impact Impact Impact ($MM) ($ / Impact ($MM) Impact ($ / Impact ($MM) Impact ($ / ($MM) Share) ($MM) Share) ($MM) Share) Amortization of acquisition-related $3.2 $2.4 $0.06 $3.2 $2.4 $0
Slide 23: Appendices | Non-GAAP Financial Measures
Appendices | Non-GAAP Financial Measures In $MM Q1/24 Q4/23 Q1/23 Income before income taxes $43.6 $33.5 $61.0 Provision for credit losses 16.9 16.7 15.4 Pre-tax pre-provision (PTPP) income(1) 60.5 50.2 76.4 Pre-tax impact of adjusting items(1) 9.3 19.1 3.2 Adjusted PTPP income $69.8 $69.3 $79.6 Net
Slide 24: 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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