- Laurentian Bank of Canada (LB) has begun staging a tentative post-COVID recovery, after its long-serving CEO recently stepped down
- Earlier this year, François Desjardins, the bank’s long-standing CEO, stepped down from his role in the wake of a poor first quarter report
- However, in its latest financial report the bank’s quarter-on-quarter results have begun to show signs of improvement
- Notably, adjusted net income rose to C$47.1 million, compared with just $11.9 million in the preceding quarter
- Despite the improvement, the bank’s unadjusted net income is still markedly down on 2019’s same quarter, at 36.2 million and $47.8 million, respectively
- Laurentian Bank of Canada (LB) is up 5.94 per cent and is trading at $28.88 cents per share
Laurentian Bank of Canada (LB) has begun staging a tentative post-COVID recovery, after its long-serving CEO recently stepped down.
Earlier this year, the Quebec-based banking institution posted a troubling 20 per cent drop in net income, a trend that was further exacerbated by the onset of the pandemic and its subsequent economic impact.
In the wake of the poor results, the bank’s long-standing CEO, François Desjardins announced his resignation and stepped down at the end of the financial year.
Meanwhile, in its latest quarterly report, which stretches to July 31, the bank’s quarter-on-quarter results have begun to show signs of improvement.
Notably, adjusted net income rose to C$47.1 million, compared with just $11.9 million in the preceding quarter. However, the bank’s unadjusted net income is still markedly down on 2019’s same quarter, at 36.2 million and $47.8 million, respectively.
The lower unadjusted net income resulted in diluted earnings per share of 77 cents, compared to $1.05 in 2019’s same quarter, suggesting the bank’s short-term improvements are still well below its pre-pandemic levels.
Speaking in his new role as Interim President and CEO, Stéphane Therrien said the bank had taken measures to preserve its financial strength and stability.
“As we navigate through these challenging times, we have never lost sight of ensuring the health and safety of our customers and employees who are well protected through the many measures we have put in place and are providing our customers with the financial resources and advice they need,” he said.
Whether the bank’s upward quarterly trend continues remains to be seen, as its recent financial woes pre-date the pandemic and trace back to 2017.
With that in mind, Laurentian Bank’s share price performance has yet to stage a sustained uptick and is still trading more than 30 per cent lower than its pre-pandemic levels.
Despite the bank’s difficult recent performance, it remains committed to its ongoing seven-year strategic plan to get back on track. The plan was commenced in 2015 and aims to update the bank’s systems to better meet customer needs.
Laurentian Bank of Canada (LB) is up 5.94 per cent and is trading at $28.88 cents per share at 3:03pm EDT.
