Laurentian Bank (TSE:LB)
TSX:LB
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Laurentian Bank
(TSX:LB)
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Rating:45Neutral
Price Target:
C$39.00
â–¼(-3.23% Downside)
Action:Reiterated
Date:05/31/26
The score is held back primarily by weakening financial performance—compressed profitability, high/increasing leverage, and negative TTM cash flows. Technicals are only mildly supportive and valuation is mixed (good yield but a relatively high P/E for current fundamentals). Earnings-call commentary adds balance, with strategic progress and asset-quality improvement offset by significant near-term transaction charges and earnings/expense pressure.
Positive Factors
Commercial loan growth and strategic mix
A sustained shift toward commercial lending and 4% loan growth indicate structural revenue diversification and higher-yielding assets. A 51% commercial mix improves long-term interest income potential and aligns with management's transformation, reducing reliance on lower-margin retail deposits.
Negative Factors
Compressed profitability
A sharp fall in net margin and declining revenue reflect persistent earnings pressure and lower capital productivity. If margins remain compressed, the bank may struggle to generate sustainable retained earnings, limiting reinvestment, dividend coverage, and capital rebuilding over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Commercial loan growth and strategic mix
A sustained shift toward commercial lending and 4% loan growth indicate structural revenue diversification and higher-yielding assets. A 51% commercial mix improves long-term interest income potential and aligns with management's transformation, reducing reliance on lower-margin retail deposits.
Read all positive factors
Laurentian Bank (LB) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$1.81B
Dividend Yield4.67%
Average Volume (3M)454.49K
Price to Earnings (P/E)64.9
Beta (1Y)0.45
Revenue Growth-9.03%
EPS Growth-89.64%
CountryCA
Employees2,800
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.31
Shares Outstanding44,793,140
10 Day Avg. Volume438,553
30 Day Avg. Volume454,487
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$48.34Price Target Upside19.96% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)2.53
Revenue Forecast (FY)C$970.84M
Laurentian Bank Business Overview & Revenue Model
Company Description
Laurentian Bank of Canada, alongside its associated entities, offers a comprehensive range of financial solutions to individuals, businesses, and institutional clients across both Canada and the U.S. market. The institution manages its operations ...
How the Company Makes Money
Laurentian Bank primarily earns revenue through net interest income and non-interest income. Net interest income is generated by taking deposits (and other funding) and using those funds to extend loans and credit (e.g., consumer and business lend...
Laurentian Bank Earnings Call Summary
Earnings Call Date:Feb 27, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 28, 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
44
Neutral
Balance Sheet
40
Negative
Cash Flow
28
Negative
| Breakdown | TTM | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.05B | 2.34B | 2.58B | 2.55B | 1.78B | 1.56B |
| Gross Profit | 667.17M | 921.76M | 942.70M | 963.90M | 977.36M | 952.96M |
| EBITDA | 69.62M | 218.85M | 35.48M | 270.39M | 328.18M | 134.11M |
| Net Income | 27.86M | 139.87M | -5.50M | 181.09M | 226.58M | 57.07M |
Balance Sheet | ||||||
| Total Assets | 49.44B | 50.15B | 47.40B | 49.89B | 50.72B | 45.08B |
| Cash, Cash Equivalents and Short-Term Investments | 61.73M | 1.63B | 1.68B | 1.46B | 2.25B | 1.11B |
| Total Debt | 19.59B | 19.50B | 19.26B | 18.35B | 17.97B | 16.80B |
| Total Liabilities | 46.80B | 47.27B | 44.57B | 47.03B | 47.94B | 42.44B |
| Stockholders Equity | 2.63B | 2.88B | 2.83B | 2.86B | 2.78B | 2.64B |
Cash Flow | ||||||
| Free Cash Flow | -72.00M | 341.84M | 161.76M | -616.62M | 840.93M | 65.56M |
| Operating Cash Flow | -37.40M | 381.73M | 198.78M | -577.92M | 903.98M | 93.66M |
| Investing Cash Flow | 508.23M | -286.72M | -61.45M | 665.23M | -759.03M | -16.61M |
| Financing Cash Flow | -469.46M | -94.24M | -114.48M | -97.08M | -147.80M | -73.76M |
Laurentian Bank Technical Analysis
Positive
40.30
Price Trends
40.31
Positive
40.02
Positive
37.31
Positive
Market Momentum
0.03
Positive
56.72
Neutral
41.03
Neutral
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 40.3 is below the 20-day moving average (MA) of 40.35, below the 50-day MA of 40.31, and above the 200-day MA of 37.31, indicating a bullish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 56.72 is Neutral, neither overbought nor oversold. The STOCH value of 41.03 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
81 Outperform | C$1.30B | 11.17 | 9.72% | 3.01% | 4.44% | 18.34% | |
75 Outperform | C$873.47M | 28.66 | 5.89% | 0.49% | 9.23% | -14.64% | |
71 Outperform | C$1.10B | 10.13 | 9.65% | 6.43% | -13.30% | -40.79% | |
70 Outperform | C$1.01B | 12.31 | 12.71% | 7.33% | 10.47% | 9.78% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
54 Neutral | C$4.56B | 22.53 | 6.16% | 2.09% | -7.70% | -48.41% | |
45 Neutral | C$1.81B | 64.90 | 1.01% | 4.67% | -9.03% | -89.64% |
* Financial Sector Average
TSE:LB
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40.40
11.53
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Laurentian Bank Corporate Events
Business Operations and StrategyShareholder Meetings
Laurentian Bank Shareholders Back Full Board Slate, Reject MEDAC Proposals
Positive
Apr 7, 2026
Laurentian Bank of Canada reported that all director candidates listed in its February 17, 2026 management proxy circular were elected to the board at its annual shareholders’ meeting held in Montréal on April 7, 2026. Each nominee, inc...
Business Operations and Strategy
Laurentian Bank Publishes 2025 ESG Report Amid Ongoing Transformation
Positive
Mar 13, 2026
Laurentian Bank has published its 2025 ESG Report, detailing key environmental, social, and governance data for the past year and highlighting progress in integrating sustainable practices. The report underscores efforts to strengthen governance a...
Regulatory Filings and ComplianceShareholder Meetings
Laurentian Bank Publishes Management Proxy Circular Ahead of Annual Meeting
Neutral
Mar 3, 2026
Laurentian Bank has released its notice of annual meeting of common shareholders and the accompanying management proxy circular, now available on its website. The materials outline the agenda for the upcoming annual meeting, including the election...
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.