- Laurentian Bank of Canada reported an adjusted earnings per share (EPS) of C$0.89 for the fourth quarter, surpassing the estimate of C$0.87, but lower compared to C$1 from the previous year.
- Net interest income was C$173.9 million, which represents a 4.9% decrease year-over-year, and missed the estimate of C$180.8 million.
- The provision for credit losses was C$10.4 million, showing a significant 37% reduction compared to the same period last year and was better than the expected C$17.9 million.
- Total revenue increased by 1.3% year-over-year to reach C$250.8 million, exceeding the estimate of C$249 million.
- The adjusted net income was C$40.9 million, down 8.5% compared to the previous year, but above the estimated C$38.8 million.
- Net interest margin slightly improved to 1.77% from 1.76% the previous year but was below the expected 1.79%.
- The Common Equity Tier 1 ratio increased to 10.9% from 9.9% year-over-year, although it did not meet the estimate of 11.1%.
- Return on equity rose to 6.2% from 4.5% year-over-year, indicating improved profitability.
- The efficiency ratio improved, decreasing to 77.5% from 79.7% the previous year.
- Book value per share was C$57.36, down from C$59.96 the previous year, and slightly below the estimate of C$57.77.
- Analyst recommendations include 0 buys, 6 holds, and 3 sells.
A look at Laurentian Bank Of Canada Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 5 | |
| Dividend | 5 | |
| Growth | 2 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Laurentian Bank of Canada’s long-term outlook appears promising based on the Smartkarma Smart Scores, which assess different aspects of the company. With top scores in Value and Dividend, the bank is considered strong in terms of its financial health and ability to pay dividends consistently. However, its Growth and Resilience scores are comparatively lower, indicating potential areas for improvement in expanding its operations and navigating economic challenges. The Momentum score of 4 suggests the bank is experiencing positive performance trends recently, which could bode well for its future prospects.
As a company that provides banking services to individuals, small and medium-sized enterprises, as well as independent advisors across Canada, Laurentian Bank of Canada operates as a full-service brokerage firm. Its strong Value and Dividend scores highlight its stability and commitment to shareholders, while the lower Growth and Resilience scores indicate areas that may require strategic attention for long-term sustainability. Despite this, the Momentum score of 4 indicates a positive trajectory, which could indicate improving prospects for the bank in the future.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
