DBRS Morningstar published a commentary discussing the differences between the limited recourse capital notes (LRCNs) issued by Canadian banks and insurance companies and the AT1 notes issued by Credit Suisse. The commentary explains why Canadian LRCNs will not function in the same manner as the Credit Suisse AT1s in a default scenario and what the implications are for investors. Key highlights include the following: -- LRCNs issued by Canadian financial institutions differ from the AT1s issue...
Laurentian Bank of Canada reported Q4 2022 net income of $55.7 million, representing a marginal decline of 0.4% quarter over quarter. Modestly lower revenue and higher provisions for credit losses were largely offset by reduced noninterest expenses from the previous quarter.
Laurentian Bank of Canada (LBC) reported Q3 2022 net income of $55.9 million, representing a 6% decrease quarter over quarter (QOQ), driven by increased provision for credit losses and noninterest expenses as revenue marginally increased from the previous quarter. Additionally, the semiannual interest payment on the limited-recourse capital notes contributed to the QOQ decline. Accordingly, the efficiency ratio deteriorated by approximately 200 basis points (bps) to 68.3%. On an adjusted basis, ...
DBRS Morningstar expects that Canadian banks will benefit from increases in interest rates by the Bank of Canada, the U.S. Federal Reserve, as well as central banks in emerging markets. The Bank of Canada and the Federal Reserve could raise rates five or six times in 2022. Indeed, the Bank of Canada and the Federal Reserve started this process with their March rate hikes of 25 basis points (bps). Overall, higher interest rates will be earnings-positive for the banks and their asset-sensitive bal...
Laurentian Bank of Canada reported a Q1 2022 net income of $55.5 million, compared with a net loss of $102.9 million for the last quarter of 2021. Of note, the reported results for Q4 2021 included impairment and restructuring charges of $189.4 million. On an adjusted basis, net income increased 24% quarter over quarter to $59.5 million, largely driven by lower provision for credit losses, as well as some increase in operating revenues. The adjusted efficiency ratio deteriorated marginally to 67...
Laurentian Bank of Canada (LBC or the Bank) reported robust Q3 2021 net income of $62.1 million, an increase of 17% quarter-over-quarter, which was largely attributed to a $7.1 million gain as the Bank de-risked its pension plans.
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
Please refer to PDF document for more detail about our research: DBRS Morningstar Finalizes Its Provisional Rating on Laurentian Bank of Canada’s NVCC Additional Tier 1 (AT1) Limited Recourse Capital Notes at BB (high) with a Stable Trend
Laurentian Bank of Canada (LBC or the Bank) reported Q1 2021 net income of $44.8 million, a strong quarter-over-quarter (QOQ) increase of 22%, driven by growth in revenue, lower provisions for credit losses (PCL), and slightly lower operating expenses. Notably, the Bank's adjusted efficiency ratio improved by a further 100 basis points (bps) QOQ to 68.9% during Q1 2021 as the Bank continues to implement tighter cost controls.
Laurentian Bank of Canada (LBC or the Bank) reported Q4 2020 net income of $36.8 million, a 2% increase quarter over quarter, as a decline in restructuring charges and income tax expense more than offset lower contribution from the capital markets business, reduced inventory financing levels, and higher provision for credit losses (PCL). For F2020, the Bank reported earnings of $114 million, a year-over-year decline of 34%, mostly due to higher PCL relating to the impact of the Coronavirus Disea...
Laurentian Bank of Canada (LBC or the Bank) reported Q3 2020 net income of $36.2 million, a fourfold increase quarter over quarter reflecting a strong contribution from the capital markets business and lower provisions for credit losses (PCL) that were somewhat tempered by a $11.0 million restructuring charge as the Bank continues to rationalize its branch network. On an adjusted basis, LBC reported net income of $47.1 million. DBRS Limited (DBRS Morningstar) remains cognizant that the economic ...
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