Laurentian Bank of Canada reports third quarter 2025 results

Executive Summary

• Laurentian Bank of Canada reported third quarter 2025 net income of $37.5 million ($0.73 diluted EPS), an increase from $34.1 million ($0.67 diluted EPS) in the same period of 2024.
• For the nine-month period ended July 31, 2025, the Bank returned to profitability with a net income of $108.4 million ($2.17 diluted EPS), compared to a net loss of $46.2 million ($1.29 diluted loss per share) in the prior year period.
• Total revenue for Q3 2025 decreased by $9.7 million to $246.8 million, driven by lower other income, while net interest income rose 3% to $185.9 million.

Key Details

• Q3 2025 Financial Performance:
  • Net Income: $37.5 million (vs. $34.1 million in Q3 2024).
  • Diluted EPS: $0.73 (vs. $0.67 in Q3 2024).
  • Adjusted Net Income: $39.6 million (vs. $43.1 million in Q3 2024).
  • Adjusted Diluted EPS: $0.78 (vs. $0.88 in Q3 2024).
  • Return on Common Shareholders' Equity: 5.0% (vs. 4.7% in Q3 2024).
  • Adjusted Return on Common Shareholders' Equity: 5.4% (vs. 6.2% in Q3 2024).
• Nine-Month Performance (Ended July 31, 2025):
  • Net Income: $108.4 million (vs. Net Loss of $46.2 million in prior year).
  • Diluted EPS: $2.17 (vs. Diluted Loss of $1.29 in prior year).
  • Adjusted Net Income: $113.0 million (vs. $127.7 million in prior year).
  • Adjusted Diluted EPS: $2.28 (vs. $2.68 in prior year).
• Revenue Breakdown (Q3 2025):
  • Total Revenue: $246.8 million (down $9.7 million or ~3.7% from Q3 2024).
  • Net Interest Income: $185.9 million (up $5.1 million or 3% from Q3 2024); Net Interest Margin was 1.82%.
  • Other Income: $60.9 million (down $14.8 million from Q3 2024), primarily due to lower fees and brokerage commissions following the sale of LBS' retail full-service investment broker division.
• Expenses and Provisions:
  • Provision for Credit Losses: $11.1 million (down from $16.3 million in Q3 2024).
  • Non-Interest Expenses: $189.8 million (down $10.5 million from Q3 2024).
  • Adjusted Non-Interest Expenses: $186.9 million (down $1.3 million from Q3 2024).
  • Salaries and Employee Benefits: $96.7 million (down $3.0 million from Q3 2024).
  • Premises and Technology Costs: $53.9 million (up $2.7 million from Q3 2024).
  • Impairment and Restructuring Charges: $2.9 million (down from $9.1 million in Q3 2024).
• Balance Sheet Highlights (as of July 31, 2025):
  • Total Assets: $49.9 billion (up 5% from Oct 31, 2024).
  • Liquid Assets: $13.2 billion (up $2.0 billion from Oct 31, 2024).
  • Loans (net of allowances): $35.6 billion (up $0.5 billion from Oct 31, 2024).
    • Commercial Loans: $17.6 billion (up $0.9 billion or 6%).
    • Residential Mortgage Loans: $16.2 billion (down $0.3 billion or 2%).
    • Personal Loans: $2.0 billion (down $0.1 billion).
  • Deposits: $24.3 billion (up $1.2 billion from Oct 31, 2024).
    • Personal Deposits: $21.2 billion (up $1.5 billion).
    • Business and Other Deposits: $3.2 billion (down $0.3 billion).
  • Shareholders' Equity: $2.9 billion (up $27.0 million from Oct 31, 2024).
  • CET1 Capital Ratio: 11.3% (up from 10.9% at Oct 31, 2024).
  • Book Value per Common Share: $57.70.
• Dividends Declared:
  • Preferred Share Series 13: $0.38725 per share, payable Sept 15, 2025.
  • Common Share: $0.47 per share, payable Nov 1, 2025.

Notable Quotes

• "Our results this quarter reaffirm our strong market positioning and the value of our commercial specializations," said Éric Provost, President and Chief Executive Officer of Laurentian Bank. "Our disciplined approach to risk management continues to serve us well through an uncertain economic environment, supported by a strong foundation of liquidity and capital."