- Laurentian Bank of Canada’s adjusted earnings per share (EPS) for the fourth quarter were C$0.73, missing both the previous year’s performance of C$0.89 and the estimate of C$0.78.
- The bank’s net interest income rose by 5% year-over-year to C$182.7 million, although it fell short of the expected C$187.6 million.
- Provision for credit losses significantly increased by 73% year-over-year to C$18.0 million, exceeding the estimate of C$16.3 million.
- Total revenue was down by 2.4% year-over-year, totaling C$244.7 million, which was below the projected C$248.8 million.
- Adjusted net income declined by 16% year-over-year to C$34.2 million, narrowly missing the estimate of C$35.6 million.
- The bank’s net interest margin slightly increased to 1.79% compared to 1.77% from the previous year, although it did not meet the forecasted 1.83%.
- The Common Equity Tier 1 ratio improved to 11.3% from 10.9% year-over-year, aligning with market expectations.
- Return on equity dropped to 4.6% from 6.2% year-over-year.
- The efficiency ratio improved marginally to 77.2% from 77.5% year-over-year.
- Book value per share increased slightly to C$57.67 from C$57.36 year-over-year, but was below the estimate of C$58.76.
- The bank highlighted strong performance in its commercial real estate, equipment, and inventory financing sectors, achieving double-digit year-over-year growth.
- Analyst ratings for Laurentian Bank of Canada include 0 buys, 5 holds, and 2 sells.
A look at Laurentian Bank Of Canada Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 5 | |
| Dividend | 4 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 4.0 |
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
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According to the Smartkarma Smart Scores, Laurentian Bank Of Canada shows a promising long-term outlook. With a top score of 5 in Value, the bank is considered to have strong fundamentals relative to its current market price. Additionally, scoring a 4 in Dividend and Growth indicates that the bank offers attractive dividend yields and has potential for future expansion. The company’s Momentum score of 4 suggests positive market sentiment and potential upward price movement. However, its Resilience score of 3 indicates a moderate ability to weather economic downturns.
Laurentian Bank of Canada, along with its subsidiaries, caters to a diverse clientele by providing banking services to individuals, small and medium-sized enterprises, and independent advisors across Canada. Operating as a full-service brokerage firm, the bank is well-positioned to benefit from its high Value score, solid Dividend and Growth scores, and positive Momentum in the market. While the Resilience score is not as high, the overall outlook for Laurentian Bank Of Canada appears optimistic based on the Smartkarma Smart Scores.
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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.
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