Laurentian Bank of Canada

Q1 2026 total revenue was $251.6 million, up 1% year over year and up 3% quarter over quarter. Reported net loss was $20.5 million and reported diluted loss per share was $0.58, while adjusted diluted EPS was $0.65, down 17% year over year and 11% quarter over quarter. Adjusted net income was $24.2 million, down 13% year over year and flat sequentially. Net interest income rose $8.7 million, or 5% year over year, and net interest margin was 1.89%, up 4 bps year over year and 10 bps sequentially. Noninterest expenses were $192.9 million, up 4% year over year, and the adjusted efficiency ratio increased 240 bps year over year. ROE was 4.5%, down 80 bps year over year, and CET1 was 10.9%, down 40 bps sequentially. For Q2 2026, management expects about $40 million of additional post-tax transaction-related charges, including the syndicated loan portfolio sale loss, and about a $0.04 impact on adjusted EPS. Loans are expected to decline roughly 2% to 3% in Q2 because of that sale, with underlying loans otherwise relatively stable; NIM is expected to be slightly lower, efficiency ratio roughly in line with Q1, PCLs in the high teens, tax rate in the high teens, and capital and liquidity to remain strong.

Eric Provost framed the quarter as steady progress against the transformation plan, emphasizing 4% total loan growth and stronger commercial specialization. He highlighted the 98.8% shareholder approval of the acquisition transaction and the completed sale of the syndication portfolio as important milestones, while saying regulatory steps remain but the bank is progressing steadily. His tone was confident and constructive, with repeated comments that the team is executing well and customer reaction to the transaction has been supportive.

Yvan Deschamps focused on the cost and capital effects of transaction items, noting $54.7 million in after-tax adjusting items in Q1, or $1.23 per share, including $53.1 million tied to the announced transactions. He walked through the main financial drivers: revenue of $251.6 million, NIM of 1.89%, noninterest expenses of $192.9 million, PCLs of $16.5 million, and CET1 at 10.9%. He also said liquidity remains high, especially after the syndicated loan sale closed on February 17, and that capital and liquidity are expected to remain strong in Q2.

Analysts focused first on remaining regulatory approvals and timing for the transaction; management said the key approvals still needed are OSFI, the Competition Bureau, and then Minister approval, while still aiming for a late-2026 closing. Questions also centered on what is driving strong inventory finance growth; management pointed to onboarding success, including the newly won Arctic Cat program, plus prudent dealer restocking and an expected okay 2026 season. On customer reaction to the ownership change, Eric Provost said field feedback has been quite good and that clients understand the rationale and appear supportive.