- Laurentian Bank of Canada (TSX:LB) posted its Q3 2025 results, reporting net income rising to C$37.5 million and diluted EPS to $0.73, up from C$34.1 million and $0.67 in Q3 2024
- Total revenue fell by C$9.7 million year-over-year, mainly due to lower other income and reduced brokerage commissions
- Provision for credit losses dropped to C$11.1 million, and non-interest expenses decreased by C$10.5 million, reflecting cost-cutting and restructuring efforts
- Laurentian Bank stock (TSX:LB) opened trading at C$30.75
Laurentian Bank (TSX:LB) reported its financial results for the third quarter ended July 31, 2025, showing modest growth in net income and earnings per share, while navigating a challenging revenue environment and continuing its transformation.
This content has been prepared as part of a partnership with Laurentian Bank of Canada and is intended for informational purposes only.
The bank posted net income of C$37.5 million and diluted earnings per share (EPS) of $0.73, up from C$34.1 million and $0.67 respectively in Q3 2024. Return on common shareholders’ equity rose slightly to 5.0 per cent, compared to 4.7 per cent a year earlier.
On an adjusted basis, however, net income declined to C$39.6 million and adjusted EPS fell to $0.78, down from C$43.1 million and $0.88 in Q3 2024. The adjusted return on equity also slipped to 5.4 per cent, from 6.2 per cent last year.
Nine-month performance
For the nine months ended July 31, 2025, Laurentian Bank reported net income of C$108.4 million and EPS of C$2.17, a significant turnaround from a net loss of C$46.2 million and loss per share of C$1.29 in the same period last year. Adjusted net income for the period was C$113.0 million, down from $127.7 million in 2024, with adjusted EPS of C$2.28, compared to C$2.68.
Revenue and expenses
Total revenue for Q3 2025 was C$246.8 million, a decrease of C$9.7 million year-over-year, primarily due to a C$14.8 million drop in other income. This decline was attributed to the sale of assets under administration from Laurentian Bank Securities’ retail investment broker division and subdued economic activity.
Net interest income rose by 3 per cent to C$185.9 million, driven by growth in average earning assets and favorable shifts in the bank’s business mix. The net interest margin improved to 1.82 per cent, up 3 basis points from Q3 2024.
Non-interest expenses fell to C$189.8 million, down $10.5 million year-over-year. Adjusted non-interest expenses were C$186.9 million, a 1 per cent decrease. The bank cited efficiency gains from reduced headcount and lower performance-based compensation.
Credit and capital
The provision for credit losses dropped to C$11.1 million, down from C$16.3 million in Q3 2024, reflecting lower provisions on impaired loans. The Common Equity Tier 1 (CET1) capital ratio improved to 11.3 per cent, up from 10.9 per cent a year ago.
Despite improvements in capital and credit loss provisions, the bank saw a rise in impaired loans, with gross impaired loans increasing by $41.9 million and net impaired loans up by $55.2 million year-over-year.
Strategic focus
Laurentian Bank continues to emphasize its commercial lending specialties, particularly in inventory financing, equipment financing, and commercial real estate. Commercial loans grew 6 per cent year-over-year to C$17.6 billion, while residential mortgage loans declined 2 per cent to C$16.2 billion.
“Our results this quarter reaffirm our strong market positioning and the value of our commercial specializations,” Éric Provost, Laurentian’s president and CEO said in a news release. “Our disciplined approach to risk management continues to serve us well through an uncertain economic environment, supported by a strong foundation of liquidity and capital. I’m proud of our teams’ strong engagement and unwavering commitment to executing our strategic plan.”
Outlook
While Laurentian Bank’s capital position remains strong, challenges persist in revenue generation and operational efficiency. The bank’s adjusted efficiency ratio rose to 75.7 per cent, up from 73.3 per cent last year, indicating pressure on cost management.
About Laurentian Bank of Canada
Founded in Montréal in 1846, Laurentian Bank is a provider of financial services to its personal, commercial and institutional customers. The bank operates in Canada and the United States. Its segments include personal banking, commercial banking and capital markets.
Laurentian Bank stock (TSX:LB) opened trading 3.35 per cent lower at C$30.75 but has risen 4.01 per cent since the year began.
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