Laurentian Bank Of Canada · TSX:LB
Laurentian Bank Of Canada — Q1 2025 Earnings Presentation
23 slides from Laurentian Bank Of Canada's earnings presentation, Feb 28, 2025
Slide 1: Investor Presentation First Quarter 2025
Investor Presentation First Quarter 2025 February 28, 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 & CEO
Éric Provost President & Chief Executive Officer Introduction
Slide 4: Q1/25 Results Highlights
Introduction | Q1/25 Results Net Income EPS Highlights Adjusted(1) $39.4MM Adjusted(2) $0.78 Reported $38.6MM Reported $0.76 ROE Efficiency Ratio • Sequential net interest margin expansion Adjusted(2) 5.3% Adjusted(2) 74.3% Reported(2) 5.2% Reported(3) 74.9% • Maintained solid liquidity levels PTPP
Slide 5: Financial Review: Yvan Deschamps, CFO
Yvan Deschamps Executive Vice President & Chief Financial Officer Financial Review
Slide 6: Q1/25 Financial Results
Financial Review | Q1/25 Financial Results Reported ($MM) Q1/25 Y/Y Q/Q Y/Y Highlights Total revenue $ 249.6 -3% -% • Adjusted total revenue declined by $9.6MM mainly from lower other Provision for credit losses (PCL) $ 15.2 -10% +45% income from the sale of the retail investment broker divisions an
Slide 7: 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) Q1/25 Y/Y Q/Q Liquid assets(1) $ 12.1 +19% +9% 1.80% 1.80% 1.79% 1.77% 1.85% Personal loans $ 2.0 -16% -4% Residential mortgage loans $ 16.3 -4% -1% Commercial loans $ 17.2 -% +4% 1
Slide 8: Optimizing Funding Structure and Costs
Financial Review | Optimizing Funding Structure and Costs Funding ($B)(1) Y/Y Highlights Total funding decreased by $0.5B 41.1 • Deposits down $1.3B mainly from partnership deposits as 39.8 40.6 customers continued to allocate funds back into market activity 2.9 0.3 2.8 2.9 Shareholders' equity • Pa
Slide 9: Other Income
Financial Review | Other Income Other Income ($MM)(1) Q1/25 Y/Y Q/Q Y/Y Highlights • Reported Other income decreased by $9.7MM, including a profit on Income from financial instruments $ 16.3 +34% +13% the sale of the discount brokerage division of $0.9MM Income from mutual funds $ 10.6 +6% +2% • Adj
Slide 10: Non-Interest Expenses (NIE)
Financial Review | Non-Interest Expenses (NIE) NIE ($MM) Q1/25 Y/Y Q/Q Y/Y Highlights Salaries and employee benefits $ 96.9 -5% +11% • Reported NIE decreased by $10.9MM, mainly from lower headcount and lower restructuring charges Premises and technology $ 50.9 -2% -2% • Adjusted NIE decreased by $3.
Slide 11: Strong Capital Position
Financial Review | Strong Capital Position Common Equity Tier 1 Capital Ratio (CET1)(1) Risk-Weighted Assets (RWA) ($B)(1) 10.9% 10.9% 10.9% 10.4% 10.2% 21.9 21.6 20.7 20.9 21.2 Q1/24 Q2/24 Q3/24 Q4/24 Q1/25 Q1/24 Q2/24 Q3/24 Q4/24 Q1/25 Evolution of the CET1 Ratio (%)(2) Y/Y Highlights • CET1 ratio
Slide 12: 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 January 31, 2025) 17.3 16.6 17.2 Commercial Lending Quebec Inventory financing Ontario 4.2 3.8 4.3 27% Equipment financing 38% Alberta & Prairies 1.6
Slide 13: Diversified Inventory Financing Portfolio
Financial Review | Diversified Inventory Financing Portfolio Inventory Finance Overview Inventory Finance Main Product Lines (as at January 31, 2025) • 6,300+ dealers in the U.S. and Canada 11% Marine 6% Recreational Vehicle • $900,000 average dealer line utilization(1) 10% 43% Power Sports Trailer
Slide 14: Strong Commercial Real Estate Portfolio
Financial Review | Strong Commercial Real Estate Portfolio Commercial Real Estate Portfolio (as at January 31, 2025) Portfolio Overview • >67% of our portfolio is residential: 54% Multi-Residential Insured Term Loans - Multi- and 13% Condos Residential 9% Conventional Term Loans - Multi- • Loan to V
Slide 15: High Quality Residential Mortgage Loan Portfolio
Financial Review | High Quality Residential Mortgage Loan Portfolio Insured vs Uninsured Pan-Canadian Portfolio (as at January 31, 2025) 5% 13% 13% 13% 10% Quebec 29% 27% 27% Alt-A 31% Ontario Conventional 16% Alberta & Prairies British Columbia 58% 60% 60% Prime insured Atlantic Provinces 38% Q1/24
Slide 16: Allowances for Credit Losses
Financial Review | Allowances for Credit Losses Allowances for Credit Losses (ACL) ($MM) Y/Y Highlights • ACL decreased by $11.6MM, mostly as a result of lower allowances on 218.5 225.2 224.2 203.8 206.9 performing loans 55.1 71.4 82.2 69.6 78.5 Q/Q Highlights • ACL increased by $3.1MM, mostly as a
Slide 17: Allowances for Credit Losses Evolution
Financial Review | Allowances for Credit Losses Evolution Allowances for Credit Losses (bps)(1) Allowances for Credit Losses Highlights From Q1/19 to Q1/25 • During the Covid-19 period, the ACL level was materially increased 81 • Since then, the ACL level has been maintained, contrary to the 61 aver
Slide 18: Provision for Credit Losses
Financial Review | Provision for Credit Losses Provision for Credit Losses (PCL) ($MM) Y/Y Highlights 17.9 16.3 • PCL decreased by $1.7MM as a result of releases of provisions on 15.2 performing loans, partly offset by higher provisions on impaired loans 10.4 16.9 • PCL as a % of average loans and a
Slide 19: Impaired Loans
Financial Review | Impaired Loans Gross Impaired Loans ($MM, bps) Net Impaired Loans ($MM, bps) 108 112 90 107 88 84 84 399.8 321.3 377.6 378.8 64 309.2 7.3 295.4 5.1 67 12.0 9.8 53.0 52 6.6 49.9 47.2 50.6 7.5 47.4 303.6 232.2 44.2 13.6 189.4 9.0 244.5 42.0 39.9 15.4 10.3 39.1 37.2 318.4 318.4 339.5
Slide 20: Appendices
sit Appendices
Slide 21: Adjusting Items
Appendices | Adjusting Items Q1/25 Q4/24 Q1/24 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) Profit on sale of assets under -$0.9 -$0.6 -$0.01 -$14.0 -$12.1 -$0.28 — — — administratio
Slide 22: Non-GAAP Financial Measures
Appendices | Non-GAAP Financial Measures In $MM(1) Q1/25 Q4/24 Q1/24 Other income $63.4 $76.9 $73.1 Profit on sale of assets under administration(2) -0.9 -14.0 — Adjusted other income $62.6 $62.9 $73.1 Income before income taxes $47.5 $45.9 $43.6 Provision for credit losses 15.2 10.4 16.9 Pre-tax pr
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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