Laurentian reports loss as it works to complete split sale

Laurentian Bank of Canada reported a loss of $20.6 million in its latest quarter as it worked to complete its deal to be split in two and sold in a pivot to become a specialty commercial bank.

The bank said Friday the loss amounted to 50 cents per diluted share for the quarter ended April 30 compared with a profit of $32.3 million or 69 cents per share a year earlier.

On an adjusted basis, Laurentian says it earned 46 cents per share in its latest quarter compared with an adjusted profit of 73 cents per share in the same quarter last year.

Revenue totalled $213.7 million, down from $242.5 million a year ago, while its provision for credit losses amounted to $26.9 million for the quarter compared with $16.7 million in the same quarter last year.

Laurentian announced in December last year a deal that will see Fairstone Bank acquire the 180-year-old Quebec institution for $1.9 billion, but maintain the brand with a focus on financial services for corporations.

Under the terms, Laurentian’s retail and small-and-medium-sized banking portfolios will be acquired by National Bank.

Laurentian Bank chief executive Éric Provost said the bank remains confident it will be able to close the transactions by late 2026.

“This quarter marked meaningful progress in preparing for our transactions with Fairstone Bank and National Bank,” Provost said in a statement.

“As we continue to execute and position the bank for a sustainable, commercial specialty-focused future, our core businesses are delivering high-quality growth.”

The Canadian Press

The Canadian Press is a national news agency headquartered in Toronto and founded in 1917.