Canada's Laurentian Bank Q2 adjusted EPS falls 37%, misses estimates

Laurentian Bank of Canada

29/05/2026 11:37

Overview
Canada banking group's Q2 adjusted EPS fell and missed analyst expectations
Company posted Q2 net loss due to restructuring and transaction costs tied to asset sales
Q2 revenue declined, mainly from lower other income and syndicated loan sale loss

Outlook
Laurentian Bank expects Fairstone Bank acquisition and National Bank transactions to close by late 2026
Laurentian Bank says teams remain committed to operational discipline during transition

Result Drivers
SYNDICATED LOAN SALE LOSS - Q2 results included a $22.5 mln net loss on the sale of the syndicated loan portfolio to National Bank, impacting other income
RESTRUCTURING AND TRANSACTION COSTS - Higher restructuring, impairment, and transaction costs tied to the bank's strategic shift and asset sales weighed on results
HIGHER CREDIT LOSSES - Provision for credit losses rose to $26.9 mln, mainly due to higher provisions on impaired commercial loans

Company press release: ID:nCNWMfV20a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Adjusted EPS
Miss
C$0.46
C$0.69 (5 Analysts)
Q2 EPS
 
-C$0.50
 
Q2 Adjusted Net Income
 
C$22.60 mln
 
Q2 Net Income
 
-C$20.60 mln
 
Q2 Net Interest Income
 
C$185 mln
 
Q2 CET1 Capital Ratio
 
11.00%
 

Analyst Coverage
The current average analyst rating on the shares is "sell" and the breakdown of recommendations is no "strong buy" or "buy", 3 "hold" and 3 "sell" or "strong sell"
The average consensus recommendation for the banks peer group is "hold."
Wall Street's median 12-month price target for Laurentian Bank of Canada is C$40.50, about 0.1% above its May 28 closing price of C$40.46
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 13 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)