Canada’s ninth-largest bank by assets, Laurentian Bank,  is to review its strategic options, including a possible sale. Over the past two and a half years, the bank’s leadership team has been focused on building up Laurentian Bank for sustained growth and profitability. But now, ahead of completing its three-year turnaround plan, the bank may be for sale.

Specifically, the bank is executing a three-year strategic plan that it launched at its December 2021 Investor Day. Since the launch of the plan, the bank says that it has exceeded its financial targets. It has also been delivering on key milestones as set out in its plan. This includes closing its customers’ top five pain points with the launch of its mobile app and digital account opening solution.

The fact that Laurentian launched its first app as recently as 2021 is just one example of its need to play catch-up with its bigger rivals.

Canadian banking is dominated by the big five of RBC, TD, Scotiabank, Bank of Montreal and CIBC. In the second tier, National Bank, the mutual Desjardins, HSBC and ATB are larger than Laurentian. Subject to regulatory approval, the country’s eighth-largest bank by assets, HSBC Canada, will be acquired by RBC. Laurentian slots in in ninth-place, ahead of Canadian Western Bank.

Since kicking off its three-year plan Laurentian Bank has grown its commercial banking offering with a focus on its areas of specialisation. Laurentian Bank has a strong capital and liquidity position, reflected in its most recent quarterly results. Its funding and deposit base are strong, stable and diversified. While the review is underway, the management remains committed to executing on the bank’s strategy.

Laurentian Bank fiscal 2023 priorities

Its fiscal 2023 priorities include delivering excellent customer service, a focus on deposits and optimising its funding structure, and driving efficiencies through simplification, with the full support and confidence of the Board. The bank said it will not disclose further developments until the review is concluded. Founded in Montréal in 1846, Laurentian Bank is focussed on the Quebec province with a branch network of around 60 outlets and about 3,000 employees.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Laurentian Bank reported net income of C$49.3m for the second quarter, down 17% y-o-y.

For the six months to end April 2023, it reported net income of C$101.2m, down by 12% y-o-y. Total revenue of C$257.2m for the second quarter of 2023 decreased by 1% y-o-y. The bank’s cost-income ratio for the six months to end April rose by 3.1 percentage points y-o-y to 70.8%. The bank has set a cost-income ratio target of 68%.