Laurentian Bank Of Canada · TSX:LB
Laurentian Bank Of Canada — Investor Day (May 2024)
17 slides from Laurentian Bank Of Canada's investor day presentation, May 31, 2024
Slide 1: Investor Day 2024
1 Investor Day 2024 May 31, 2024
Slide 2: Forward-looking statements
INVESTOR DAY 2024 2 Forward-looking statements From time to time, Laurentian Bank of Canada and, as applicable its subsidiaries (collectively referred to as the Bank) various other significant risks, as described in the relevant pages of the 2023 Annual Report, including the MD&A, will make written
Slide 3: Our Financial Path
3 Our Financial Path Yvan Deschamps Executive Vice President & Chief Financial Officer
Slide 4: Financial highlights
OUR FINANCIAL PATH Financial highlights Our financial performance demonstrates continued resilience and persistence as we drive towards our target state Diluted EPS1 Adjusted Diluted EPS1,2 ($0.27) $4.02 $1B+ 1.80% % Revenue1 Q2/24 Net Interest Net Income1 Adjusted Net Income1,2 Margin2 ($0MM) $187M
Slide 5: Capital standing
OUR FINANCIAL PATH 5 Capital standing We have employed a prudent capital management strategy with a strong base to weather economic turmoil Laurentian Bank Capital Ratios1 Canadian Banking CET1 Capital Ratios %, Q2/24 %, Q2/24 for Laurentian Bank, Q1/24 for other banks3 Regulatory Minimum Actual Rat
Slide 6: Diversified funding strategy
OUR FINANCIAL PATH 6 Diversified funding strategy Our funding base is resilient and enables us to drive growth for the organization Liquidity Coverage Ratio (LCR) Trend1 Built strong LCR buffer Funding stability with strong %, FY21-Q2/24 to weather economic liquidity base turmoil and fund loan Compl
Slide 7: Credit and risk management
OUR FINANCIAL PATH 7 Credit and risk management We have sustained a robust credit risk management approach with our highly secured loan portfolio Prudent risk management with strong Provision for Credit Losses Basis Points, FY08-Q2/24 underwriting practices ✓ Historical losses at about half the indu
Slide 8: Recent performance
OUR FINANCIAL PATH 8 Recent performance Despite making progress on loan and deposit growth, the Bank’s overall financial performance has been lacking progress through FY23 FY22 target FY22 status Previous mid-term targets FY23 status Loan Growth Mid single digit Mid single digit Deposit Growth Mid s
Slide 9: Performance versus the industry
OUR FINANCIAL PATH 9 Performance versus the industry Our focus on short-term expense management led to a deferral of crucial long-term investments – and considering recent revenue impact due to the economic environment, no sustainable efficiency gains could be generated Revenue Growth Lower YoY Grow
Slide 10: Our performance drivers
OUR FINANCIAL PATH 10 Our performance drivers To derive sustainable efficiency gains, not only do we need to pursue our efficient Commercial Banking growth as the economic uncertainty vanishes, we also recognize the imperative to improve operations in Personal Banking Adjusted Efficiency Ratio1 FY21
Slide 11: Our path to achieve our ambition
OUR FINANCIAL PATH 11 Our path to achieve our ambition Double-digit Adjusted ROE1 There are a handful of key levers that could advance us towards our Adjusted ROE target Our ambition Expense improvement Revenue growth Our starting point • Driven by focused execution of our strategy, competing • Impr
Slide 12: Financial roadmap
OUR FINANCIAL PATH 12 Financial roadmap We have laid out directional business segments objectives to help achieve our medium-term objectives Key Enablers Personal & Commercial Banking Segment Capital Markets Segment COMMERCIAL BANKING PERSONAL BANKING CAPITAL MARKETS Objective Objective Objective Gr
Slide 13: Financial targets
OUR FINANCIAL PATH 13 Financial targets We have established medium-term financial targets Growth drivers Financial targets Metrics Mid-term targets Metrics Mid-term targets Adjusted diluted Loan growth Mid single digit Double-digit EPS1 growth Deposit Adjusted Return on Mid single digit Double-digit
Slide 14: Appendices
Appendices ——O———e
Slide 15: Adjusting items
APPENDICIES 15 Adjusting items Trailing last twelve months: Q2/23-Q2/24 Pre-tax After-tax Impact impact ($MM) impact ($MM) ($ / share) P&C Banking impairment charges $155.9 $125.6 $2.87 Restructuring and other impairment charges 65.1 47.8 1.10 Strategic review-related charges 5.9 4.4 0.10 Amortizati
Slide 16: Non-GAAP financial measures
APPENDICIES 16 Non-GAAP financial measures Trailing last twelve months: In $MM Q2/23-Q2/24 Non-interest expenses $971.5 Less: Pre-tax impact of adjusting items(1) 239.8 Adjusted non-interest expenses $731.7 Income (loss) before income taxes -$17.1 Pre-tax impact of adjusting items(1) 239.8 Adjusted
Slide 17: Investor relations contact
Investor relations contact Raphael Ambeault Head, Investor Relations (514) 601-0944 raphael.ambeault@laurentianbank.ca www.lbcfg.ca/investors-centre