Laurentian Bank Of Canada · TSX:LB
Laurentian Bank Of Canada — Q3 2024 Earnings Presentation
23 slides from Laurentian Bank Of Canada's earnings presentation, Aug 30, 2024
Slide 1: Investor Presentation Third Quarter 2024
Investor Presentation Third Quarter 2024 August 30, 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 Any forward-looking statements contained herein or
Slide 3: Introduction & Strategic Overview
Éric Provost President & Chief Executive Officer Introduction & Strategic Overview
Slide 4: Introduction | Q3/24 Results Highlights
Introduction | Q3/24 Results Adjusted Net Income(1) $43.1MM Reported Net Income $34.1MM Highlights Adjusted EPS(2) $0.88 Reported EPS $0.67 • Reported results include $9.1MM of Adjusted Efficiency Ratio(2) 73.3% restructuring charges Reported Efficiency Ratio(3) 78.1% • Maintained solid liquidity le
Slide 5: Introduction | Our Path Forward
Introduction | Our Path Forward We will succeed by focusing on the execution of our strategy across the Bank Personal & Commercial Banking Segment Capital Markets Segment Key Focus Areas Compete where we have Efficiency and Drive accountability for Harness the power of an edge and market Simplificat
Slide 6: Financial Review
Yvan Deschamps Executive Vice President & Chief Financial Officer Financial Review
Slide 7: Q3/24 Financial Results
Financial Review | Q3/24 Financial Results Reported ($MM) Q3/24 Y/Y Q/Q Y/Y Highlights Total revenue $ 256.5 -2% +2% • Total revenue declined by $4.3MM, due to reduced net interest income Provision for credit losses (PCL) $ 16.3 +22% -9% from lower loan volumes Non-interest expenses (NIE) $ 200.2 +5
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) Q3/24 Y/Y Q/Q Liquid assets(1) $ 11.3 -7% +3% 1.84% 1.76% 1.80% 1.80% 1.79% Personal loans $ 2.2 -20% -5% Residential mortgage loans $ 16.4 -% -2% Commercial loans(2) $ 16.5 -7% -4%
Slide 9: Optimizing Funding Structure and Costs
Financial Review | Optimizing Funding Structure and Costs Funding ($B)(1)(2) Y/Y Highlights Total funding decreased by $2.3B • Offset by Loans down $1.9B and a $0.8B increase of cost- efficient long-term debt related to securitization activities 42.1 40.8 39.8 2.8 Q/Q Highlights 2.8 Shareholders' eq
Slide 10: Other Income
Financial Review | Other Income Other Income ($MM)(1) Q3/24 Y/Y Q/Q Y/Y Highlights • Other income increased by $7.0MM Lending fees $ 11.9 -30% -11% • Higher income from financial instruments was partly offset by lower Income from mutual funds $ 10.2 -6% +1% lending fees due to tempered commercial re
Slide 11: Non-Interest Expenses (NIE)
Financial Review | Non-Interest Expenses (NIE) NIE ($MM) Q3/24 Y/Y Q/Q Y/Y Highlights Salaries and employee benefits $ 99.7 +1% -% • Reported NIE increased by $10.2MM, mainly due higher regulatory expenses and other costs related to various compliance projects, as Premises and technology $ 51.2 +4%
Slide 12: Strong Capital Position
Financial Review | Strong Capital Position Common Equity Tier 1 Capital Ratio (CET1)(1) Risk-Weighted Assets (RWA) ($B)(1) 10.9% 10.4% 10.2% 9.9% 9.8% 22.7 22.6 21.9 21.6 20.7 Q3/23 Q4/23 Q1/24 Q2/24 Q3/24 Q3/23 Q4/23 Q1/24 Q2/24 Q3/24 Evolution of the CET1 Ratio (%)(2) Y/Y Highlights • CET1 ratio u
Slide 13: Strong and Diversified Commercial Loan Portfolio
Financial Review | Strong and Diversified Commercial Loan Portfolio Commercial Loan Portfolio ($B)(1)(2) Pan-Canadian Portfolio and U.S. Presence (as at July 31, 2024) 17.8 17.2 Quebec 16.5 Commercial Lending 4.0 Inventory financing 21% Ontario 4.3 3.8 1% 1.6 Equipment financing Alberta & Prairies 1
Slide 14: Diversified Inventory Financing Portfolio
Financial Review | Diversified Inventory Financing Portfolio Inventory Finance Overview Inventory Finance Main Product Lines (as at July 31, 2024) • 6,000+ dealers in the U.S. and Canada 13% Marine Recreational Vehicle 7% • $800,000 average dealer line utilization 39% Trailer (2) 11% Power Sports Ma
Slide 15: Strong Commercial Real Estate Portfolio
Financial Review | Strong Commercial Real Estate Portfolio Commercial Real Estate Portfolio (as at July 31, 2024) Portfolio Overview • >67% of our portfolio is residential: 54% Multi- Insured Term Loans - Multi- Residential and 13% Condos 8% Residential • LTV on uninsured multi-residential 4% Conven
Slide 16: High Quality Residential Mortgage Loan Portfolio
Financial Review | High Quality Residential Mortgage Loan Portfolio Insured vs Uninsured Pan-Canadian Portfolio (as at July 31, 2024) 12% 13% 5% 13% 10% Quebec 30% 28% 28% Alt-A 33% Ontario Conventional 15% Alberta & Prairies British Columbia 58% 59% 59% Prime insured Atlantic Provinces 37% Q3/23 Q2
Slide 17: Allowances for Credit Losses
Financial Review | Allowances for Credit Losses Allowances for Credit Losses (ACL) ($MM) Y/Y Highlights • ACL increased by $7.1MM, mostly as a result of higher allowances on 218.5 225.2 224.2 217.1 214.8 impaired commercial loans 60.7 58.7 55.1 71.4 82.2 Q/Q Highlights • ACL decreased by $1.0MM main
Slide 18: Provision for Credit Losses
Financial Review | Provision for Credit Losses Provision for Credit Losses (PCL) ($MM) Y/Y Highlights 17.9 16.3 • PCL increased by $3.0MM as a result of credit migration on commercial loans 16.7 13.3 16.9 • PCL as a % of average loans and acceptances increased by 4 bps 7.7 28.2 28.1 13.4 -0.1 17.6 -
Slide 19: Impaired Loans
Financial Review | Impaired Loans Gross Impaired Loans ($MM, bps) Net Impaired Loans ($MM, bps) 108 84 84 64 377.6 295.4 62 67 12.0 7.5 52 55 303.6 47.2 46 44.2 232.2 13.6 38 9.0 244.5 42.0 189.4 228.0 169.3 39.9 202.1 15.4 10.3 18.9 39.1 141.4 11.8 20.2 41.9 37.2 40.4 318.4 12.4 39.8 243.7 248.0 38
Slide 20: Appendices
sit Appendices
Slide 21: Appendices | Adjusting Items
Appendices | Adjusting Items Q3/24 Q2/24 Q3/23 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 $9.1 $6.7 $0.16 $40.8 $30.0 $0.69 $5.5 $4.0 $0.09 charg
Slide 22: Appendices | Non-GAAP Financial Measures
Appendices | Non-GAAP Financial Measures In $MM(1) Q3/24 Q2/24 Q3/23 Income (loss) before income taxes $40.0 -$151.7 $57.4 Provision for credit losses 16.3 17.9 13.3 Pre-tax pre-provision (PTPP) income 56.3 -133.7 70.8 (loss) Pre-tax impact of adjusting items(2) 12.1 200.0 11.4 Adjusted PTPP income
Slide 23: 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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