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Laurentian Bank
(TSX:LB)
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Rating:44Neutral
Price Target:
C$39.00
â–¼(-3.27% Downside)
Action:Reiterated
Date:08/29/26
The score is held down primarily by weak financial performance, driven by a TTM net loss, negative operating/free cash flow, and elevated leverage. Technical indicators are relatively stable and mildly supportive, but valuation is constrained by an extremely high P/E despite an attractive dividend yield.
Positive Factors
Diversified traditional banking model
Laurentian’s lending, deposit, and fee-based activities provide multiple recurring revenue streams. This established banking model can support earnings resilience over the medium term when credit quality and funding costs remain controlled.
Negative Factors
Deteriorating profitability
The move from healthy prior-year profitability to a TTM loss indicates weaker earnings resilience. Compressed margins and negative operating profit could limit capital formation and reduce the bank’s ability to absorb future operating or credit pressures.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified traditional banking model
Laurentian’s lending, deposit, and fee-based activities provide multiple recurring revenue streams. This established banking model can support earnings resilience over the medium term when credit quality and funding costs remain controlled.
Read all positive factors
Laurentian Bank (LB) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$1.82B
Dividend Yield4.63%
Average Volume (3M)173.86K
Price to Earnings (P/E)―
Beta (1Y)0.37
Revenue Growth-7.16%
EPS Growth-116.37%
CountryCA
Employees2,682
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)-0.50
Shares Outstanding44,793,140
10 Day Avg. Volume193,660
30 Day Avg. Volume173,862
Financial Highlights & Ratios
PEG Ratio-0.01
Price to Book (P/B)0.51
Price to Sales (P/S)0.63
P/FCF Ratio4.31
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$40.25Price Target Upside-0.17% Downside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)2.54
Revenue Forecast (FY)C$965.25M
Laurentian Bank Business Overview & Revenue Model
Company Description
Laurentian Bank of Canada, together with its subsidiaries, provides various financial services to personal, commercial, and institutional customers in Canada and the United States. It operates through Personal and Commercial Banking, and the Capit...
How the Company Makes Money
Laurentian Bank primarily earns revenue through a traditional banking model centered on (1) interest income and (2) non-interest income. Interest income is generated by lending activities (such as personal and commercial loans and other credit pro...
Laurentian Bank Earnings Call Summary
Earnings Call Date:Feb 27, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Dec 04, 2026
Earnings Call Sentiment Neutral
The call reflects a mix of operational progress and near-term headwinds. Positive fundamentals include solid loan growth (4%), strong commercial momentum (inventory financing +7% QoQ, commercial mix at 51%), improved asset quality (gross impaired loans down 19%), and modest revenue and NII growth (+1% and +5% YoY respectively). Offsetting these positives are large transaction-related charges ($54.7M after tax in Q1 and an expected ~$40M in Q2), a reported net loss and compressed adjusted EPS (down 17% YoY), higher expenses and a decline in CET1 to 10.9%. Given balanced and material positives and negatives, the overall tone is cautious but constructive as management executes its transformation and transaction activity.Positive Updates
Loan Growth and Commercial Momentum
Total loan growth of 4% in Q1 2026; total commercial loan portfolio grew by about $1.4 billion year-over-year and about $700 million sequentially. Commercial mix increased by 1 percentage point to 51% of total loans, consistent with the transformation plan.
Negative Updates
Significant Transaction-Related Charges in Q1
After-tax adjusting items of $54.7 million ($1.23 per share) recorded in Q1 tied to announced transactions. Charges stemming from the transaction totaled $53.1 million after tax and included impairment of premises & equipment ($15.8M), onerous contracts/leases ($10.8M), severance and employee benefits ($8.4M), accelerated amortization of software ($5.2M), impairment of software ($4.8M), and transaction & conversion costs ($8.1M).
Read all updates
Q1-2026 Updates
Positive
Negative
Loan Growth and Commercial Momentum
Total loan growth of 4% in Q1 2026; total commercial loan portfolio grew by about $1.4 billion year-over-year and about $700 million sequentially. Commercial mix increased by 1 percentage point to 51% of total loans, consistent with the transformation plan.
Read all positive updates
Company Guidance
Management guided that Q2 will include additional transaction-related charges of about $40 million post‑tax (including the syndicated‑loan sale loss that will reduce adjusted EPS by roughly $0.04), expects total loans to fall roughly 2–3% (mainly from the syndicated portfolio sale; loans otherwise should be relatively stable), and anticipates a slightly lower NIM versus Q1 (Q1 NIM was 1.89%). They said the adjusted efficiency ratio should be roughly in line with Q1 (which rose 240 bps y/y and 110 bps q/q), PCLs should remain in the high‑teens (Q1 PCLs were 18 bps), the effective tax rate is expected in the high‑teens, and capital and liquidity (CET1 10.9%, LCR at the high end of the industry) will stay solid.Laurentian Bank Financial Statement Overview
Summary
Income Statement
37
Negative
Balance Sheet
46
Neutral
Cash Flow
28
Negative
| Breakdown | TTM | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.96B | 2.34B | 2.58B | 2.55B | 1.78B | 1.56B |
| Gross Profit | 575.72M | 921.76M | 942.70M | 963.90M | 977.36M | 952.96M |
| EBITDA | 8.50M | 218.85M | 35.48M | 270.39M | 328.18M | 134.11M |
| Net Income | -8.06M | 139.87M | -5.50M | 181.09M | 226.58M | 57.07M |
Balance Sheet | ||||||
| Total Assets | 49.86B | 50.15B | 47.40B | 49.89B | 50.72B | 45.08B |
| Cash, Cash Equivalents and Short-Term Investments | 73.25M | 1.63B | 1.68B | 1.46B | 2.25B | 1.11B |
| Total Debt | 19.74B | 19.50B | 19.26B | 18.35B | 17.97B | 16.80B |
| Total Liabilities | 47.24B | 47.27B | 44.57B | 47.03B | 47.94B | 42.44B |
| Stockholders Equity | 2.62B | 2.88B | 2.83B | 2.86B | 2.78B | 2.64B |
Cash Flow | ||||||
| Free Cash Flow | -635.28M | 341.84M | 161.76M | -616.62M | 840.93M | 65.56M |
| Operating Cash Flow | -611.40M | 381.73M | 198.78M | -577.92M | 903.98M | 93.66M |
| Investing Cash Flow | 565.02M | -286.72M | -61.45M | 665.23M | -759.03M | -16.61M |
| Financing Cash Flow | 41.88M | -94.24M | -114.48M | -97.08M | -147.80M | -73.76M |
Laurentian Bank Technical Analysis
Positive
40.32
Price Trends
40.28
Positive
40.06
Positive
39.23
Positive
Market Momentum
0.09
Negative
73.60
Negative
91.18
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:LB, the sentiment is Positive. The current price of 40.32 is below the 20-day moving average (MA) of 40.36, above the 50-day MA of 40.28, and above the 200-day MA of 39.23, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 73.60 is Negative, neither overbought nor oversold. The STOCH value of 91.18 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:LB.
Laurentian Bank Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | C$1.39B | 10.23 | 11.40% | 2.28% | 10.08% | 33.25% | |
73 Outperform | C$1.09B | 6.50 | 14.64% | 5.89% | -5.14% | 25.79% | |
70 Outperform | C$886.47M | 10.37 | 13.08% | 6.53% | 12.78% | 14.21% | |
69 Neutral | C$917.37M | 29.37 | 6.17% | 0.36% | 13.80% | 11.27% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
52 Neutral | C$5.70B | -632.95 | -0.07% | 1.68% | -3.80% | -102.38% | |
44 Neutral | C$1.82B | -80.82 | -0.30% | 4.67% | -7.16% | -116.37% |
* Financial Sector Average
TSE:LB
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40.62
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Laurentian Bank Corporate Events
Business Operations and StrategyDividends
Laurentian Bank Declares Quarterly Dividend and Ends DRIP Program
Neutral
Aug 28, 2026
Laurentian Bank of Canada has declared a regular quarterly dividend of $0.47 per common share, payable on October 30, 2026 to shareholders of record as of October 1, with the payout designated as an eligible dividend for Canadian tax purposes. The...
Business Operations and StrategyFinancial Disclosures
Laurentian Bank Profits Slide as Transformation and Deal Costs Hit Q3 Results
Negative
Aug 28, 2026
Laurentian Bank of Canada reported a sharp drop in profitability for the third quarter of 2026, posting net income of $1.5 million and a diluted loss per share of $0.08, compared with $37.5 million in net income and $0.73 in diluted earnings per s...
Business Operations and StrategyDividends
Laurentian Bank Declares Dividend and Highlights Reinvestment Options for Preferred Shareholders
Positive
Aug 12, 2026
Laurentian Bank of Canada has declared a dividend of $0.38725 on its preferred shares Series 13, payable on September 15, 2026, to shareholders of record as of September 7, 2026. The dividend is designated as an eligible dividend for Canadian tax ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.