The Globe and Mail reports in its Tuesday edition that Laurentian Bank of Canada's U.S. commercial financing business, Northpoint Commercial Finance, has been its fastest-growing division. The Globe's quadruple bylined item reports that Northpoint contributes about a quarter of Laurentian's revenue.
Five unnamed sources say Northpoint could be the cornerstone of a possible deal, but if suitors are interested only in this division, Laurentian will have some figuring to do. There are few candidates among the Big Six banks that are likely to chase a deal to buy Laurentian. RBC's excess capital is earmarked for its pending acquisition of HSBC Canada. CIBC has said it is focused on building its existing business and in building its capital reserves under a tighter regulatory environment. National Bank of Canada is focused on expanding outside of its stronghold in Quebec. Scotiabank has signalled an interest in Quebec, but has also been tasked with improving funding issues like those of Laurentian. While BMO has been expanding its commercial unit, it may be tied up with integrating its purchase of Bank of the West.
TD, however, has the means to buy Laurentian. TD is sitting on $18-billion in excess capital.
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