Laurentian Bank launches strategic review that could lead to sale

Laurentian Bank has launched a strategic review to “maximize shareholder and stakeholder value” that could lead to a sale of the lender.

The bank said Tuesday after markets closed that its board of directors and management team are conducting the strategic review. It said it would not disclose further developments until the review is concluded.

The bank launched a three-year strategic plan in 2021 and said it’s been exceeding its financial targets since then.

“Laurentian Bank has a strong capital and liquidity position, as reflected in its most recent quarterly results, and its funding and deposit base are strong, stable and diversified,” the statement said.

The bank reported net income of $49.3 million in the second quarter, down from $59.5 million a year earlier. Total revenue of $257.2 million in the second quarter was down 1% from the same period in 2022.

As of April 30, Laurentian had approximately 3,000 employees and $27.7 billion in assets under administration.

While the strategic review takes place, Laurentian said its management team is committed to its 2023 strategy and fiscal priorities.

RBC announced a deal in November 2022 to buy HSBC Bank Canada for $13.5 billion. That deal is currently under review.

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