Laurentian Bank of Canada says it’s making progress on its turnaround efforts as it marks a year of working through its strategic plan.
“We’ve taken meaningful steps to transform our organization and are making steady progress toward generating efficiency,” said chief executive Éric Provost on an earnings call Friday.
“While we’re still in the early stages, we are satisfied with the progress we have made.”
The bank has been working to boost its dealings in the specialized commercial sector while maintaining consumer deposits, as well as boosting technology investments for a bank that until recently didn’t offer a smartphone app.
Laurentian is also making a push to diversify its commercial inventory lending base from a concentration in the RV and boating business that could suffer in a recession, adding customers in agriculture, construction, IT and power sports.
“This is lending into new programs, and this is what I believe is positioning us better for future state,” said Provost, adding that he still has confidence in the legacy areas too.
“We feel good about that business. The risk profile is quite strong versus returns.”
His comments came as Laurentian reported a net income of $32.3 million in the second quarter compared with a net loss of $117.5 million in the same quarter last year.
The Montreal-based bank says earnings worked out to 69 cents per share for the quarter ending April 30, compared with a loss of $2.71 per share last year.
The bank says its adjusted net income came to $34 million, or 73 cents per share, down from $40.5 million, or 90 cents per share in the same quarter last year.
Analysts had expected earnings of 70 cents per share, according to LSEG Data & Analytics.
National Bank analyst Gabriel Dechaine said it was a solid quarter with the earnings beat on margins, expenses and credit, including a boost from the diversification of the bank’s high-margin inventory lending business.
However he noted that loan growth remains sluggish and heightened spending on technology is hampering near-term earnings growth.
Laurentian says total revenue for the quarter was $242.5 million, down from $252.6 million last year.
The bank’s provisions for credit losses totalled $16.7 million in the quarter, down from $17.9 million in the same quarter last year.
This report by The Canadian Press was first published May 30, 2025.
Companies in this story: (TSX:LB)
