LAURENTIAN BANK OF CANADA
Symbol	LB
Shares Issued	44,553,372
Close 2025-12-04	C$ 39.90
Market Cap	C$ 1,777,679,543
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ORIGINAL: Laurentian Bank of Canada reports 2025 results

2025-12-05 06:25 ET - News Release

Laurentian Bank of Canada reports 2025 results

Canada NewsWire

MONTREAL, Dec. 5, 2025

The financial information reported herein is based on the condensed interim consolidated (unaudited) information for the three-month period ended October 31, 2025 and on the Audited Consolidated Financial Statements for the year ended October 31, 2025, and has been prepared in accordance with IFRS Accounting Standards, as issued by the International Accounting Standards Board (IASB). All amounts are denominated in Canadian dollars. The Laurentian Bank of Canada and its entities are collectively referred to as "Laurentian Bank" or the "Bank" and provide deposit, investment, loan, securities, trust and other products or services.

The Bank's 2025 Annual Report (which includes the Audited Consolidated Financial Statements and accompanying Management's Discussion & Analysis) will be available today on the Bank's website at www.laurentianbank.ca and on SEDAR+ at www.sedarplus.ca.

MONTREAL, Dec. 5, 2025 /CNW/ - Laurentian Bank of Canada reported net income of $139.9 million and diluted earnings per share of $2.84 for the year ended October 31, 2025, compared with a net loss of $5.5 million and a diluted loss per share of $0.41 for the year ended October 31, 2024. Return on common shareholders' equity⁽¹⁾ was 4.9% for the year ended October 31, 2025, compared with negative 0.7% for the year ended October 31, 2024. Adjusted net income⁽²⁾ was $147.2 million and adjusted diluted earnings per share⁽¹⁾ were $3.00 for the year ended October 31, 2025, compared with $168.7 million and $3.57 respectively for the year ended October 31, 2024. Adjusted return on common shareholders' equity⁽¹⁾ was 5.2% for the year ended October 31, 2025, compared with 6.1% for the same period one year ago.

For the fourth quarter of 2025, reported net income was $31.5 million and diluted earnings per share were $0.66, compared with net income of $40.7 million and diluted earnings per share of $0.88 for the fourth quarter of 2024. Return on common shareholders' equity was 4.6% for the fourth quarter of 2025, compared with 6.2% for the fourth quarter of 2024. Adjusted net income was $34.2 million and adjusted diluted earnings per share were $0.73 for the fourth quarter of 2025, compared with $40.9 million and $0.89 for the fourth quarter of 2024. Adjusted return on common shareholders' equity was 5.0% for the fourth quarter of 2025, compared with 6.2% for the same period one year ago.

"As announced earlier this week, we are significantly accelerating our transition to a specialty commercial bank," said Éric Provost, President and Chief Executive Officer of Laurentian Bank. "Our growth engines—Commercial Real Estate, Equipment and Inventory Financing—continue to deliver solid results, achieving double-digit year-over-year growth. This performance reflects the effectiveness of our strategy and the trust our clients place in us. In addition, our strong capital and liquidity positions provide both resilience and the flexibility to reinvest for future opportunities."

	For the three months ended			For the year ended
In millions of dollars, except per share and percentage amounts (Unaudited)	October 31, 2025	October 31, 2024	Variance	October 31, 2025	October 31, 2024	Variance

Reported basis
Net income (loss)	$ 31.5	$ 40.7	(23) %	$ 139.9	$ (5.5)	n.m.
Diluted earnings (loss) per share	$ 0.66	$ 0.88	(25) %	$ 2.84	$ (0.41)	n.m.
Return on common shareholders' equity⁽¹⁾	4.6 %	6.2 %		4.9 %	(0.7) %
Efficiency ratio⁽³⁾	77.2 %	77.5 %		76.3 %	96.1 %
Common Equity Tier 1 (CET1) capital ratio⁽⁴⁾	11.3 %	10.9 %		11.3 %	10.9 %

Adjusted basis
Adjusted net income⁽²⁾	$ 34.2	$ 40.9	(16) %	$ 147.2	$ 168.7	(13) %
Adjusted diluted earnings per share⁽¹⁾	$ 0.73	$ 0.89	(18) %	$ 3.00	$ 3.57	(16) %
Adjusted return on common shareholders' equity⁽¹⁾	5.0 %	6.2 %		5.2 %	6.1 %
Adjusted efficiency ratio⁽¹⁾	75.6 %	75.0 %		75.2 %	73.8 %

(1)	This is a non-GAAP ratio. For additional information, refer to the Non-GAAP Financial and Other Measures below and beginning on page 20 of the 2025 Annual Report, including the Management's Discussion & Analysis (MD&A) for the year ended October 31, 2025. These pages are incorporated herein by reference. The MD&A is available on SEDAR+ at www.sedarplus.ca.
(2)	This is a non-GAAP financial measure. For additional information, refer to the Non-GAAP Financial and Other Measures section below and beginning on page 20 of the 2025 Annual Report, including the MD&A for the year ended October 31, 2025. These pages are incorporated herein by reference.
(3)	This is a supplementary financial measure. For additional information, refer to the Non-GAAP Financial below and beginning on page 20 of the 2025 Annual Report, including the MD&A for the year ended October 31, 2025. These pages are incorporated herein by reference.
(4)	In accordance with the Office of the Superintendent of Financial Institutions' (OSFI) "Capital Adequacy Requirements" guideline.

Highlights

	For the three months ended					For the year ended
In thousands of dollars, except when noted (Unaudited)	October 31 2025	July 31 2025	Variance	October 31 2024	Variance	October 31 2025	October 31 2024	Variance

Operating results
Total revenue	$ 244,710	$ 246,809	(1) %	$ 250,771	(2) %	$ 983,672	$ 1,018,209	(3) %
Net income (loss)	$ 31,481	$ 37,463	(16) %	$ 40,661	(23) %	$ 139,874	$ (5,499)	n.m.
Adjusted net income⁽¹⁾	$ 34,232	$ 39,604	(14) %	$ 40,945	(16) %	$ 147,246	$ 168,662	(13) %

Operating performance
Diluted earnings (loss) per share⁽²⁾	$ 0.66	$ 0.73	(10) %	$ 0.88	(25) %	$ 2.84	$ (0.41)	n.m.
Adjusted diluted earnings per share⁽²⁾⁽³⁾	$ 0.73	$ 0.78	(6) %	$ 0.89	(18) %	$ 3.00	$ 3.57	(16) %
Return on common shareholders' equity⁽³⁾	4.6 %	5.0 %		6.2 %		4.9 %	(0.7) %
Adjusted return on common shareholders' equity⁽³⁾	5.0 %	5.4 %		6.2 %		5.2 %	6.1 %
Net interest margin⁽⁴⁾	1.79 %	1.82 %		1.77 %		1.83 %	1.79 %
Efficiency ratio⁽⁴⁾	77.2 %	76.9 %		77.5 %		76.3 %	96.1 %
Adjusted efficiency ratio⁽³⁾	75.6 %	75.7 %		75.0 %		75.2 %	73.8 %
Operating leverage⁽⁴⁾	(0.4) %	(1.1) %		0.7 %		20.0 %	(30.6) %
Adjusted operating leverage⁽³⁾	0.1 %	(0.7) %		(2.1) %		(1.9) %	(5.4) %

Financial position ($ millions)
Loans	$ 36,014	$ 35,779	1 %	$ 35,259	2 %	$ 36,014	$ 35,259	2 %
Total assets	$ 50,148	$ 49,931	— %	$ 47,401	6 %	$ 50,148	$ 47,401	6 %
Deposits	$ 23,999	$ 24,325	(1) %	$ 23,164	4 %	$ 23,999	$ 23,164	4 %
Common shareholders' equity⁽¹⁾	$ 2,571	$ 2,557	1 %	$ 2,524	2 %	$ 2,571	$ 2,524	2 %

Basel III regulatory capital ratios
CET1 capital ratio⁽⁵⁾	11.3 %	11.3 %		10.9 %		11.3 %	10.9 %
Total risk-weighted assets ($ millions)⁽⁵⁾	$ 20,700	$ 20,451		$ 20,862		$ 20,692	$ 20,862

Credit quality
Gross impaired loans as a % of loans⁽⁴⁾	1.18 %	1.17 %		1.07 %		1.18 %	1.07 %
Net impaired loans as a % of loans⁽⁴⁾	0.97 %	0.98 %		0.88 %		0.97 %	0.88 %
Provision for credit losses as a % of average loans⁽⁴⁾	0.20 %	0.12 %		0.12 %		0.17 %	0.17 %

Common share information
Closing share price⁽⁶⁾	$ 33.30	$ 30.81	8 %	$ 26.08	28 %	$ 33.30	$ 26.08	28 %
Price / earnings ratio⁽⁴⁾	11.7 x	10.1 x		(63.6) x		11.7 x	(63.6) x
Book value per share⁽³⁾	$ 57.67	$ 57.70	— %	$ 57.36	1 %	$ 57.67	$ 57.36	1 %
Dividends declared per share	$ 0.47	$ 0.47	— %	$ 0.47	— %	$ 1.88	$ 1.88	— %
Dividend yield⁽⁴⁾	5.6 %	6.1 %		7.2 %		5.6 %	7.2 %
Dividend payout ratio⁽⁴⁾	70.9 %	64.5 %		53.3 %		66.3 %	n.m.
Adjusted dividend payout ratio⁽³⁾	64.8 %	60.5 %		52.9 %		62.6 %	52.7 %

(1)	This is a non-GAAP financial measure. For additional information, refer to the Non-GAAP Financial and Other Measures section below and beginning on page 20 of the 2025 Annual Report, including the MD&A for the year ended October 31, 2025.These pages are incorporated herein by reference.
(2)	The sum of the quarterly earnings per share may not be equal to the cumulative earnings per share due to rounding.
(3)	This is a non-GAAP ratio. For additional information, refer to the Non-GAAP Financial and Other Measures section below and beginning on page 20 of the 2025 Annual Report, including the MD&A for the year ended October 31, 2025. These pages are incorporated herein by reference.
(4)	This is a supplementary financial measure. For additional information, refer to the Non-GAAP Financial and Other Measures section below and beginning on page 20 of the 2025 Annual Report, including the MD&A for the year ended October 31, 2025. These pages are incorporated herein by reference.
(5)	In accordance with OSFI's "Capital Adequacy Requirements" guideline. Refer to the Capital Management section beginning on page 36 of the 2025 Annual Report for additional information.
(6)	Toronto Stock Exchange (TSX) closing market price.

Non-GAAP Financial and Other Measures

In addition to financial measures prepared based on generally accepted accounting principles (GAAP), management utilizes non-GAAP financial measures to evaluate the Bank's underlying and ongoing business performance. These non-GAAP financial measures, referred to throughout this document as adjusted measures, exclude items identified as adjusting items. Adjusting items consist of certain items of significance that arise from time to time which management believes are not indicative of underlying business performance, as well as the amortization of acquisition-related intangible assets.

Non-GAAP financial measures are not standardized financial measures under the financial reporting framework used to prepare the Bank's financial statements and may not be comparable to similar measures disclosed by other issuers. The Bank believes these non-GAAP financial measures are useful to readers in obtaining a better understanding of how management assesses the Bank's performance and in analyzing trends.

The following tables present a reconciliation of the non-GAAP financial measures to their most directly comparable financial measure that is disclosed in the primary financial statements of the Bank.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES — CONSOLIDATED STATEMENT OF INCOME

	For the three months ended			For the year ended
In thousands of dollars (Unaudited)	October 31 2025	July 31 2025	October 31 2024	October 31 2025	October 31 2024

Total revenue	$ 244,710	$ 246,809	$ 250,771	$ 983,672	$ 1,018,209

Less: Adjusting items, before income taxes
Profit on sale of assets under administration⁽¹⁾	—	—	(13,959)	(875)	(13,959)
Adjusted total revenue	$ 244,710	$ 246,809	$ 236,812	$ 982,797	$ 1,004,250

Non-interest expenses	$ 188,840	$ 189,759	$ 194,458	$ 750,090	$ 978,872

Less: Adjusting items, before income taxes
Restructuring and other impairment charges⁽²⁾	3,741	2,909	16,463	10,899	72,483
P&C Banking segment impairment charges⁽³⁾	—	—	—	—	155,933
Amortization of acquisition-related intangible assets⁽⁴⁾	—	—	333	—	9,786
	3,741	2,909	16,796	10,899	238,202
Adjusted non-interest expenses	$ 185,099	$ 186,850	$ 177,662	$ 739,191	$ 740,670

Income (loss) before income taxes	$ 37,831	$ 45,922	$ 45,873	$ 172,547	$ (22,215)

Adjusting items, before income taxes (detailed above)	3,741	2,909	2,837	10,024	224,243
Adjusted income before income taxes	$ 41,572	$ 48,831	$ 48,710	$ 182,571	$ 202,028

Reported net income (loss)	$ 31,481	$ 37,463	$ 40,661	$ 139,874	$ (5,499)

Adjusting items, net of income taxes
Profit on sale of assets under administration⁽¹⁾	—	—	(12,110)	(643)	(12,110)
Restructuring and other impairment charges⁽²⁾	2,751	2,141	12,145	8,015	53,333
P&C Banking segment impairment charges⁽³⁾	—	—	—	—	125,629
Amortization of acquisition-related intangible assets⁽⁴⁾	—	—	249	—	7,309
	2,751	2,141	284	7,372	174,161
Adjusted net income	$ 34,232	$ 39,604	$ 40,945	$ 147,246	$ 168,662

Net income (loss) available to common shareholders	$ 29,545	$ 32,214	$ 38,725	$ 125,504	$ (17,925)

Adjusting items, net of income taxes (detailed above)	2,751	2,141	284	7,372	174,161
Adjusted net income available to common shareholders	$ 32,296	$ 34,355	$ 39,009	$ 132,876	$ 156,236

(1)	The profit on sale of assets under administration resulted from the sale of assets under administration of Laurentian Bank Securities' (LBS) retail full-service investment broker division in the fourth quarter of 2024 and of LBS' discount brokerage division in the first quarter of 2025. The profit on sale of assets under administration is included in the Other income line item. For additional information, refer to the Business Highlights section beginning on page 22 of the 2025 Annual Report including the MD&A for the year ended October 31, 2025. These pages are incorporated herein by reference.
(2)	In 2025, restructuring and other impairment charges primarily stemmed from the Bank's ongoing efforts to streamline its technology infrastructure and organizational structure, as well as from revised estimates related to lease contracts for corporate office premises. In 2024, restructuring and other impairment charges mainly resulted from the Bank's decision to suspend the Advanced Internal-Ratings Based (AIRB) approach to credit risk project and to reduce its leased corporate office premises in Toronto, as well as from the simplification of the Bank's technology infrastructure, organizational structure and headcount reduction. Restructuring and other impairment charges mainly comprised of impairment charges, severance charges, professional fees and charges related to leases and other, and are included in the Impairment and restructuring charges line item.
(3)	The Personal and Commercial (P&C) Banking segment impairment charges related to the impairment of the P&C Banking segment as part of the goodwill impairment test performed as at April 30, 2024. Impairment charges were included in the Impairment and restructuring charges line item.
(4)	Amortization of acquisition-related intangible assets resulted from business acquisitions and was included in the Other non-interest expenses line item.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES — CONSOLIDATED BALANCE SHEET

	For the three months ended			For the year ended
In thousands of dollars (Unaudited)	October 31 2025	July 31 2025	October 31 2024	October 31 2025	October 31 2024

Shareholders' equity	$ 2,881,820	$ 2,855,470	$ 2,828,484	$ 2,881,820	$ 2,828,484

Plus (less):
Preferred shares and other equity instruments	(245,682)	(245,682)	(245,554)	(245,682)	(245,554)
Cash flow hedge reserve⁽¹⁾	(64,763)	(53,197)	(58,750)	(64,763)	(58,750)
Common shareholders' equity	$ 2,571,375	$ 2,556,591	$ 2,524,180	$ 2,571,375	$ 2,524,180

Impact of averaging month-end balances⁽²⁾	(14,666)	(19,615)	(20,089)	(28,754)	22,861
Average common shareholders' equity	$ 2,556,709	$ 2,536,976	$ 2,504,091	$ 2,542,621	$ 2,547,041

(1)	The cash flow hedge reserve is presented in the Accumulated other comprehensive income line item.
(2)	Based on the month-end balances for the year.

Business Highlights

Transactions Announced On December 2, 2025

On December 2, 2025, Laurentian Bank and National Bank of Canada (directly or through one or more affiliates) ("National Bank") have entered into a definitive agreement to acquire Laurentian Bank's retail and SME banking portfolios (the "Retail/SME Transaction"). Laurentian Bank and National Bank have also entered into a definitive agreement in respect of the sale to National Bank of Laurentian Bank's syndicated loan portfolio (the "Syndicated Loan Transaction" and, collectively with the Retail/SME Transaction, the "National Bank Transactions").

In parallel, Fairstone Bank of Canada has entered into a definitive agreement (the "Acquisition Transaction Agreement") to acquire all issued and outstanding common shares of Laurentian Bank (the "Laurentian Bank Shares") (the "Acquisition Transaction" and, collectively with the Retail/SME Transaction, the "Transactions").

The National Bank Transactions will be fully settled in cash and cash equivalents, with the final consideration based on outstanding balances at closing. The final consideration for the Syndicated Loan Transaction will be the outstanding balance of the purchased loans at closing, minus $50 million. If the purchase price was calculated as at July 31, 2025, the aggregate purchase price of the Retail/SME Transaction (including related premium) and the Syndicated Loan Transaction (including related discount) would approximate net book value.

Refer to the Press Release issued on December 2, 2025 and to the Business Highlights section in the Bank's 2025 Annual Report, including the MD&A for the year ended October 31, 2025, for additional information about the Transactions and the Syndicated Loan Transaction.

Our Strategic Plan In Action

The "Our Path Forward" strategic plan, presented in the prior fiscal year, sets out the Bank's approach to the financial services industry and outlines its specialized approach.

Since announcing its strategic plan, the Bank has remained focused on delivering the goals it set to transform the organization and achieve its medium-term financial targets. While work is still ongoing, concrete steps have been taken to build a stronger, more sustainable, and more profitable Laurentian Bank.

In 2025, the Bank advanced its strategic transformation by sharpening its focus, reinforcing its operational foundation, and investing in future-ready capabilities. These initiatives reflect our commitment to sustainable performance, guided by the principles of specialization, simplification, and efficiency.

A key area of progress was the Bank's enhanced commercial specialization, which strengthens our ability to serve targeted markets with deep sector expertise. This strategic focus positions Laurentian Bank to deliver differentiated value and drive long-term growth.

Our roadmap for 2025 was ambitious. We are proud to report that we delivered against our plan, achieving several transformational milestones. Notably, the deployment of cloud-based systems has significantly improved our operational efficiency, resilience, and customer experience. These investments are foundational to building a bank that is agile, secure, and well-positioned for the future. Operational resiliency and redundancy were also meaningfully enhanced, enabling the Bank to respond swiftly to change, maintain stability, and ensure consistent service delivery to our clients.

Employee engagement remained strong throughout the year, with participation rates reaching 87% and engagement levels at 82%. These results are particularly noteworthy given the scale of transformation underway, and they underscore the dedication and adaptability of our workforce.

Medium-term Financial Targets

As a result of the strategic developments announced on December 2, 2025, further detailed above, the Bank is withdrawing its previously disclosed medium-term financial targets introduced in May 2024. The Bank will continue to focus on executing its commercial banking strategy and delivering value through disciplined capital management, operational efficiency, and enhanced customer solutions.

Consolidated Results

Three months ended October 31, 2025 financial performance

Net income was $31.5 million and diluted earnings per share were $0.66 for the fourth quarter of 2025, compared with net income of $40.7 million and diluted earnings per share of $0.88 for the fourth quarter of 2024. Adjusted net income was $34.2 million and adjusted diluted earnings per share were $0.73 for the fourth quarter of 2025, compared with $40.9 million and $0.89 for the fourth quarter of 2024. Refer to the Non-GAAP Financial and Other Measures section for a reconciliation of non-GAAP financial measures.

Total revenue

Total revenue decreased by $6.1 million to $244.7 million for the fourth quarter of 2025, compared with $250.8 million for the fourth quarter of 2024, mainly attributable to a decrease in other income, as detailed below.

Net interest income increased by $8.8 million or 5% to $182.7 million for the fourth quarter of 2025, compared with $173.9 million for the fourth quarter of 2024. This growth was primarily driven by favourable shifts in the Bank's business mix and growth of average earning assets. The net interest margin was 1.79% for the fourth quarter of 2025, an increase of 2 basis points compared with the fourth quarter of 2024, primarily for the same underlying reasons.

Other income decreased by $14.8 million to $62.1 million for the fourth quarter of 2025, compared with $76.9 million for the fourth quarter of 2024. The decrease was mainly due to a $14.0 million gross profit related to the sale of assets under administration of LBS' retail full-service investment broker division recorded in the fourth quarter of 2024. Other income categories remained relatively stable year-over-year for the fourth quarter.

Provision for credit losses

The provision for credit losses was $18.0 million for the fourth quarter of 2025, compared with $10.4 million for the fourth quarter of 2024, representing an increase of $7.6 million. This increase primarily reflects higher provisions on impaired loans partly offset by higher releases on performing loans. The provision for credit losses as a percentage of average loans was 20 basis points for the quarter, compared with 12 basis points for the same quarter one year ago. Refer to the "Credit risk management" section on pages 43 to 50 of the Bank's MD&A for the year ended October 31, 2025 and to Note 6 to the Consolidated Financial Statements for additional information on provision for credit losses and allowances for credit losses.

Non-interest expenses

Non-interest expenses amounted to $188.8 million for the fourth quarter of 2025, a decrease of $5.6 million compared with the fourth quarter of 2024. Adjusted non-interest expenses increased by $7.4 million or 4% to $185.1 million for the fourth quarter of 2025, compared with $177.7 million for the fourth quarter of 2024.

Salaries and employee benefits amounted to $94.5 million for the fourth quarter of 2025, an increase of $7.3 million compared with the fourth quarter of 2024, reflecting higher performance-based compensation and staffing investments in support of ongoing progress towards the Bank's strategic objectives.

Premises and technology costs were $54.5 million for the fourth quarter of 2025, an increase of $2.3 million compared with the fourth quarter of 2024. The increase year-over-year is mainly due to higher technology costs as the Bank pursues investments in its infrastructure and strategic priorities, as well as increased depreciation charges resulting from recently completed projects.

Other non-interest expenses were $36.1 million for the fourth quarter of 2025, a decrease of $2.5 million compared with the fourth quarter of 2024, mainly resulting from lower general operational costs, partially offset by higher professional and advisory service fees to support the Bank's strategic priorities.

Impairment and restructuring charges were $3.7 million for the fourth quarter of 2025, compared with $16.5 million for the fourth quarter of 2024. In the fourth quarter of 2025, impairment and restructuring charges were driven by initiatives to streamline the Bank's organizational structure, as well as from revised estimates related to lease contracts for corporate office premises. In the fourth quarter of 2024, restructuring charges of $16.5 million related to the simplification of the Bank's organizational structure and headcount reduction.

Efficiency ratio

The efficiency ratio on a reported basis decreased to 77.2% for the fourth quarter of 2025, compared with 77.5% for the fourth quarter of 2024. The decrease compared to the prior year is primarily due to lower impairment and restructuring charges related to organizational simplification and headcount reduction undertaken in 2024. The adjusted efficiency ratio increased to 75.6% for the fourth quarter of 2025, compared with 75.0% for the fourth quarter of 2024, for reasons highlighted in the analysis above.

Income taxes

For the fourth quarter of 2025, the income tax expense was $6.4 million, and the effective income tax rate was 16.8%. For the fourth quarter of 2024, the income tax expense was $5.2 million, and the effective income tax rate was 11.4%. For both quarters, the lower effective income tax rate, compared to the statutory income tax rate, is attributed to a lower taxation level on income from foreign operations.

Three months ended October 31, 2025 compared with three months ended July 31, 2025

Net income was $31.5 million and diluted earnings per share were $0.66 for the fourth quarter of 2025, compared with net income of $37.5 million and diluted earnings per share of $0.73 for the third quarter of 2025. Adjusted net income was $34.2 million and adjusted diluted earnings per share were $0.73 for the fourth quarter of 2025, compared with $39.6 million and $0.78 for the third quarter of 2025. Refer to the Non-GAAP Financial and Other Measure section for a reconciliation of non-GAAP financial measures. Net income available to common shareholders in the fourth quarter of 2025 included only the quarterly dividend declared on the Preferred Shares Series 13. In contrast, the figure in the third quarter of 2025 included the semi-annual interest payment on Limited Recourse Capital Notes in addition to the quarterly dividend declared on the Preferred Shares Series 13.

Total revenue decreased by $2.1 million to $244.7 million for the fourth quarter of 2025 compared with $246.8 million for the third quarter of 2025.

Net interest income decreased by $3.2 million to $182.7 million, primarily driven by lower interest income, reflecting a decline in average inventory financing loan volumes compared to the prior quarter. Net interest margin was 1.79% for the fourth quarter of 2025, a decrease of 3 basis points compared with 1.82% the third quarter of 2025, mainly for the same reasons.

Other income amounted to $62.1 million for the fourth quarter of 2025, an increase of $1.1 million compared with $60.9 million for the previous quarter. This increase was primarily driven by higher lending fees, reflecting stronger momentum in commercial real estate toward the end of the fourth quarter.

The provision for credit losses was $18.0 million for the fourth quarter of 2025, an increase of $6.9 million compared with $11.1 million for the third quarter of 2025. This increase primarily reflects higher provisions on impaired commercial loans.

Non-interest expenses decreased by $0.9 million to $188.8 million for the fourth quarter of 2025 from $189.8 million in the third quarter of 2025. In the fourth quarter of 2025, non-interest expenses included impairment and restructuring charges of $3.7 million, compared with $2.9 million in the third quarter of 2025. Adjusted non-interest expenses amounted to $185.1 million in the fourth quarter of 2025, a decrease of $1.8 million, primarily due to seasonally lower employee benefits.

Financial Condition

As at October 31, 2025, total assets amounted to $50.1 billion, a 6% increase compared with $47.4 billion as at October 31, 2024 mostly due to the higher level of liquid assets, notably securities, and higher loans.

Liquid assets

As at October 31, 2025, liquid assets as presented on the balance sheet amounted to $13.1 billion, an increase of $1.9 billion compared with $11.2 billion as at October 31, 2024. The Bank continues to prudently manage its level of liquid assets. The Bank's funding sources remain well diversified and sufficient to meet all liquidity requirements. Liquid assets represented 26% of total assets as at October 31, 2025, compared with 24% as at October 31, 2024.

Loans

Loans, net of allowances, stood at $35.8 billion as at October 31, 2025, an increase of $0.8 billion since October 31, 2024. Commercial loans amounted to $17.9 billion as at October 31, 2025, an increase of $1.3 billion or 8% since October 31, 2024 from our growth engines, namely commercial real estate, inventory financing and equipment financing. Personal loans, which amounted to $2.0 billion as at October 31, 2025 decreased by $0.1 billion from October 31, 2024, mainly as a result of a decline in the investment loan portfolio, reflecting the impact of continued market volatility and high interest rates. Residential mortgage loans of $16.1 billion as at October 31, 2025 decreased by $0.4 billion or 2% from October 31, 2024, mainly due to slower housing market activity.

Deposits

Deposits increased by $0.8 billion to $24.0 billion as at October 31, 2025, compared with $23.2 billion as at October 31, 2024. Personal deposits stood at $21.2 billion as at October 31, 2025, an increase of $1.5 billion compared with $19.7 billion as at October 31, 2024. Of note, deposits from advisors and brokers increased by $2.6 billion and personal notice and demand deposits from partnerships decreased by $0.9 billion from October 31, 2024. Personal deposits represented 88% of total deposits as at October 31, 2025, compared with 85% as at October 31, 2024, and contributed to the Bank's sound liquidity position. Business and other deposits decreased by $0.7 billion over the same period to $2.8 billion as at October 31, 2025.

Debt related to securitization activities

Debt related to securitization activities increased by $0.6 billion or 4% compared with October 31, 2024 and stood at $14.1 billion as at October 31, 2025. During the year, new issuances of cost-effective long-term debt related to securitization activities more than offset maturities of liabilities, as well as normal repayments.

Shareholders' equity and regulatory capital

Shareholders' equity stood at $2.9 billion as at October 31, 2025 and increased by $53.3 million compared with October 31, 2024. Retained earnings increased by $44.5 million compared to October 31, 2024, mainly as a result of the sum of the annual net income contribution of $139.9 million, partly offset by dividends and other distributions. Accumulated other comprehensive income decreased by $9.1 million compared to October 31, 2024. For additional information, please refer to the Capital Management section of the Bank's MD&A and to the Consolidated Statement of Changes in Shareholders' Equity for the year ended October 31, 2025.

The Bank's book value per common share was $57.67 as at October 31, 2025 compared to $57.36 as at October 31, 2024.

The CET1 capital ratio was 11.3% as at October 31, 2025, in excess of the minimum regulatory requirement and the Bank's target management levels. The CET1 capital ratio increased by 40 basis points compared with 10.9% as at October 31, 2024, mainly due to internal capital generation, as well as from a reduction in risk-weighted assets. The Bank met OSFI's capital and leverage requirements throughout the year.

On November 12, 2025, the Board of Directors declared a dividend of $0.38725 per Preferred Share Series 13, payable on December 15, 2025 (the "Payment Date"), that will be paid out on December 16, 2025, the first business day following the Payment Date, to shareholders of record on December 8, 2025. On December 4, 2025, the Board of Directors declared a quarterly dividend of $0.47 per common share, payable on February 1, 2026 (the "Payment Date"), that will be paid out on February 2, 2026, the first business day following the Payment Date, to shareholders of record on January 5, 2026. This quarterly dividend is equal to the dividend declared in the previous quarter and to the dividend declared in the previous year. On December 4, 2025, the Board also determined that shares attributed under the Bank's Shareholder Dividend Reinvestment and Share Purchase Plan will be made in common shares issued from Corporate Treasury at no discount.

Condensed Interim Consolidated Financial Statements (unaudited)

Consolidated Balance Sheet⁽¹⁾

In thousands of dollars (Unaudited)	As at October 31 2025	As at October 31 2024

Assets
Cash and non-interest bearing deposits with banks	$ 57,769	$ 53,319
Interest-bearing deposits with banks	1,257,750	1,444,272
Securities
At amortized cost	3,119,046	2,790,453
At fair value through profit or loss	4,384,240	3,142,035
At fair value through other comprehensive income	276,660	167,146
	7,779,946	6,099,634
Securities purchased under reverse repurchase agreements	4,007,686	3,568,490
Loans
Personal	1,975,613	2,106,426
Residential mortgage	16,131,795	16,537,917
Commercial	17,906,832	16,614,187
	36,014,240	35,258,530
Allowances for loan losses	(176,330)	(189,377)
	35,837,910	35,069,153
Other
Derivatives	285,446	243,087
Premises and equipment	83,597	82,588
Software and other intangible assets	182,055	181,277
Deferred tax assets	149,656	157,844
Other assets	505,881	501,626
	1,206,635	1,166,422
	$ 50,147,696	$ 47,401,290

Liabilities and shareholders' equity
Deposits
Personal	$ 21,206,691	$ 19,713,877
Business, banks and other	2,791,903	3,450,077
	23,998,594	23,163,954
Other
Obligations related to securities sold short	3,296,412	2,260,941
Obligations related to securities sold under repurchase agreements	3,869,657	3,661,575
Derivatives	282,184	333,655
Deferred tax liabilities	66,946	61,461
Other liabilities	1,368,480	1,267,970
	8,883,679	7,585,602
Debt related to securitization activities	14,052,700	13,496,457
Subordinated debt	330,903	326,793
Shareholders' equity
Preferred shares and other equity instruments	245,682	245,554
Common shares	1,205,807	1,187,107
Retained earnings	1,352,215	1,307,747
Accumulated other comprehensive income	72,185	81,235
Share-based compensation reserve	5,931	6,841
	2,881,820	2,828,484
	$ 50,147,696	$ 47,401,290

(1)	Certain comparative figures have been reclassified to conform to the current year presentation.

Consolidated Statement of Income⁽¹⁾

	For the three months ended			For the year ended
In thousands of dollars, except per share amounts (Unaudited)	October 31 2025	July 31 2025	October 31 2024	October 31 2025	October 31 2024

Interest and dividend income
Loans	$ 479,345	$ 484,400	$ 506,111	$ 1,936,160	$ 2,113,277
Securities	29,844	31,067	27,552	113,555	111,119
Deposits with banks	9,477	8,914	12,797	42,924	62,432
Other	2,215	1,095	643	4,446	12,022
	520,881	525,476	547,103	2,097,085	2,298,850

Interest expense
Deposits	212,759	223,388	242,229	891,059	1,023,768
Debt related to securitization activities	104,582	100,796	97,047	401,897	375,793
Subordinated debt	4,590	4,589	4,578	18,204	18,220
Other, including derivatives	16,293	10,824	29,371	49,001	161,562
	338,224	339,597	373,225	1,360,161	1,579,343

Net interest income	182,657	185,879	173,878	736,924	719,507

Other income
Income from financial instruments	14,127	15,854	14,406	62,218	61,292
Income from mutual funds	11,147	10,543	10,432	42,658	40,691
Lending fees	10,606	9,452	10,730	40,433	50,019
Service charges	6,088	6,122	6,589	24,931	27,166
Card service revenues	5,718	5,663	5,879	23,512	27,958
Fees and securities brokerage commissions	4,958	4,855	4,923	17,654	35,915
Fees on investment accounts	2,535	2,556	2,644	10,293	11,394
Insurance income, net	1,548	1,347	1,328	5,055	6,477
Profit on sale of assets under administration	—	—	13,959	875	13,959
Other	5,326	4,538	6,003	19,119	23,831
	62,053	60,930	76,893	246,748	298,702

Total revenue	244,710	246,809	250,771	983,672	1,018,209

Provision for credit losses	18,039	11,128	10,440	61,035	61,552

Non-interest expenses
Salaries and employee benefits	94,541	96,693	87,225	380,589	388,882
Premises and technology	54,454	53,908	52,118	211,097	205,584
Other	36,104	36,249	38,652	147,505	155,990
Impairment and restructuring charges	3,741	2,909	16,463	10,899	228,416
	188,840	189,759	194,458	750,090	978,872

Income (loss) before income taxes	37,831	45,922	45,873	172,547	(22,215)
Income taxes (recovery)	6,350	8,459	5,212	32,673	(16,716)
Net income (loss)	$ 31,481	$ 37,463	$ 40,661	$ 139,874	$ (5,499)

Dividends on preferred shares and distributions on other equity instruments	1,936	5,249	1,936	14,370	12,426

Net income (loss) available to common shareholders	$ 29,545	$ 32,214	$ 38,725	$ 125,504	$ (17,925)


Earnings (loss) per share
Basic	$ 0.66	$ 0.73	$ 0.88	$ 2.84	$ (0.41)
Diluted	$ 0.66	$ 0.73	$ 0.88	$ 2.84	$ (0.41)

Dividends per common share	$ 0.47	$ 0.47	$ 0.47	$ 1.88	$ 1.88

(1)	Certain comparative figures have been reclassified to conform to the current year presentation.

Consolidated Statement of Comprehensive Income

	For the three months ended			For the year ended
In thousands of dollars (Unaudited)	October 31 2025	July 31 2025	October 31 2024	October 31 2025	October 31 2024
Net income (loss)	$ 31,481	$ 37,463	$ 40,661	$ 139,874	$ (5,499)

Other comprehensive income (loss), net of income taxes
Items that may subsequently be reclassified to the Statement of Income
Net change in debt securities at fair value through other comprehensive income
Unrealized net gains (losses) on debt securities at fair value through other comprehensive income	1,237	(497)	92	1,724	817
Reclassification of net (gains) losses on debt securities at fair value through other comprehensive income to net income	(52)	(185)	18	(540)	(28)
	1,185	(682)	110	1,184	789
Net change in value of derivatives designated as cash flow hedges	11,566	(19,598)	12,195	6,013	62,430
Net foreign currency translation adjustments
Net unrealized foreign currency translation gains on investments in foreign operations	16,407	6,778	10,747	9,436	5,169
Net losses on hedges of investments in foreign operations	(18,007)	(5,348)	(9,390)	(25,683)	(10,021)
	(1,600)	1,430	1,357	(16,247)	(4,852)
	11,151	(18,850)	13,662	(9,050)	58,367

Items that may not subsequently be reclassified to the Statement of Income
Remeasurement gains (losses) on employee benefit plans	(1,894)	2,410	(430)	819	2,246
Net gains (losses) on equity securities designated at fair value through other comprehensive income	(330)	606	168	1,281	(167)
	(2,224)	3,016	(262)	2,100	2,079
Total other comprehensive income (loss), net of income taxes	8,927	(15,834)	13,400	(6,950)	60,446
Comprehensive income	$ 40,408	$ 21,629	$ 54,061	$ 132,924	$ 54,947

Income Taxes — Other Comprehensive Income

The following table shows income tax expense (recovery) for each component of other comprehensive income.

	For the three months ended			For the year ended
In thousands of dollars (Unaudited)	October 31 2025	July 31 2025	October 31 2024	October 31 2025	October 31 2024

Net change in debt securities at fair value through other comprehensive income
Unrealized net gains (losses) on debt securities at fair value through other comprehensive income	$ 446	$ (179)	$ 34	$ 621	$ 295
Reclassification of net (gains) losses on debt securities at fair value through other comprehensive income to net income	(19)	(67)	6	(195)	(10)
	427	(246)	40	426	285

Net change in value of derivatives designated as cash flow hedges	4,166	(7,059)	4,391	2,165	22,478
Net foreign currency translation adjustments
Net losses on hedges of investments in foreign operations	5,227	—	202	14,294	—
Remeasurement gains (losses) on employee benefit plans	(682)	868	(156)	295	808
Net gains (losses) on equity securities designated at fair value through other comprehensive income	(119)	218	61	461	(60)
	$ 9,019	$ (6,219)	$ 4,538	$ 17,641	$ 23,511

Consolidated Statement of Changes in Shareholders' Equity⁽¹⁾

In thousands of dollars (Unaudited)	As at October 31 2025	As at October 31 2024

Preferred shares and other equity instruments at beginning of year	$ 245,554	$ 245,558
Net sale (purchase) of other treasury equity instruments	128	(4)
Preferred shares and other equity instruments at end of year	245,682	245,554
Common shares at beginning of year	1,187,107	1,177,827
Issuance of common shares	18,700	9,280
Common shares at end of year	1,205,807	1,187,107
Retained earnings at beginning of year	1,307,747	1,405,800
Net income (loss)	139,874	(5,499)
Dividends on preferred shares and distributions on other equity instruments	(14,370)	(12,426)
Dividends on common shares	(83,150)	(82,314)
Remeasurement gains on employee benefit plans	819	2,246
Net gains (losses) on equity securities designated at fair value through other comprehensive income	1,281	(167)
Net sale (purchase) of other treasury equity instruments	14	107
Retained earnings at end of year	1,352,215	1,307,747
Accumulated other comprehensive income at beginning of year	81,235	22,868
Net unrealized foreign currency translation gains on investments in foreign operations	9,436	5,169
Net losses on hedges of investments in foreign operations	(25,683)	(10,021)
Net change in value of derivatives designated as cash flow hedges	6,013	62,430
Unrealized net gains on debt securities at fair value through other comprehensive income	1,724	817
Reclassification of net gains on debt securities at fair value through other comprehensive income to net income	(540)	(28)
Accumulated other comprehensive income at end of year	72,185	81,235
Share-based compensation reserve at beginning of year	6,841	6,052
Net change in share-based compensation	(910)	789
Share-based compensation reserve at end of year	5,931	6,841
Total shareholders' equity	$ 2,881,820	$ 2,828,484

Accumulated Other Comprehensive Income

In thousands of dollars (Unaudited)	As at October 31 2025	As at October 31 2024

Cash flow hedges	$ 64,763	$ 58,750
Translation of foreign operations	5,714	21,961
Debt securities at fair value through other comprehensive income	1,708	524
	$ 72,185	$ 81,235

(1)	Certain comparative figures have been reclassified to conform to the current year presentation.

Caution Regarding Forward-Looking Statements

From time to time, Laurentian Bank of Canada and, as applicable its subsidiaries (collectively referred to as the Bank) will make written or oral forward-looking statements within the meaning of applicable Canadian and United States (U.S.) securities legislation, including, forward-looking statements contained in this document (and in the documents incorporated by reference herein), as well as in other documents filed with Canadian and U.S. regulatory authorities, in reports to shareholders, and in other written or oral communications. These forward-looking statements are made in accordance with the "safe harbor" provisions of, and are intended to be forward-looking statements in accordance with, applicable Canadian and U.S. securities legislation. They include, but are not limited to; statements regarding the Bank's vision, strategic goals, business plans and strategies, priorities and financial performance objectives; the economic, market, and regulatory review and outlook for Canadian, U.S. and global economies; the regulatory environment in which the Bank operates; the risk environment, including, credit risk, liquidity, and funding risks, and legal and regulatory risk; statements under the heading "Risk Appetite and Risk Management Framework" contained in the 2025 Annual Report, including, the MD&A for the fiscal year ended October 31, 2025; and other statements that are not historical facts.

Forward-looking statements typically are identified with words or phrases such as "believe", "assume", "estimate", "forecast", "outlook", "project", "vision", "expect", "foresee", "anticipate", "intend", "plan", "goal", "aim", "target", and expressions of future or conditional verbs such as "may", "should", "could", "would", "will", "intend" or the negative of any of these terms, variations thereof or similar terminology.

By their very nature, forward-looking statements require the Bank to make assumptions and are subject to inherent risks and uncertainties, both general and specific in nature, which give rise to the possibility that the Bank's predictions, forecasts, projections, expectations, or conclusions may prove to be inaccurate; that the Bank's assumptions may be incorrect (in whole or in part); and that the Bank's financial performance objectives, visions, and strategic goals may not be achieved. Forward-looking statements should not be read as guarantees of future performance or results, or indications of whether or not actual results will be achieved. Material economic assumptions underlying such forward-looking statements are set out in the 2025 Annual Report under the heading "Outlook", which assumptions are incorporated by reference herein.

Specifically, statements regarding the Acquisition Transaction and the National Bank Transactions (collectively, in this section only, the "Transactions") are all considered to be forward-looking statements.

The Bank cautions readers against placing undue reliance on forward-looking statements, as a number of factors, many of which are beyond the Bank's control and the effects of which can be difficult to predict or measure, could influence, individually or collectively, the accuracy of the forward-looking statements and cause the Bank's actual future results to differ significantly from the targets, expectations, estimates or intentions expressed in the forward-looking statements. These factors include, but are not limited to general and market economic conditions; inflationary pressures; the dynamic nature of the financial services industry in Canada, the United States, and globally; the risk that the Transactions will not be completed on the terms and conditions, or on the timing, currently contemplated; that the Transactions may not be completed at all, due to a failure to obtain or satisfy, in a timely manner or otherwise, required Laurentian Bank shareholder in respect of the Acquisition Transaction and regulatory approvals and other conditions to the closing of the Transactions or for other reasons; the risk that competing offers or acquisition proposals will be made; the negative impact that the failure to complete the Transactions, for any reason, could have on the price of the Laurentian Bank Shares or on the business of Laurentian Bank; the possibility of adverse reactions or changes in business relationships resulting from the announcement or completion of the Transactions; risks relating to Laurentian Bank's ability to retain and attract key personnel during and following the interim period; the possibility of litigation relating to the Transactions; credit, market, currency, operational, liquidity and funding risks generally and relating specifically to the Transactions, including changes in economic conditions, interest rates or tax rates; and those other risks discussed in greater detail under the "Other Risks That May Affect Future Results" section of Laurentian Bank's 2025 Annual Report; risks relating to credit, market, liquidity, funding, insurance, operational and regulatory compliance (which has resulted in, or which could lead to, the Bank being subject to various legal and regulatory proceedings, the potential outcome of which could include regulatory restrictions, and orders to pay damages, penalties, and fines); reputational risks; exposure to, and resolution of, significant litigation or regulatory matters, the appeal of favourable outcomes and our ability to successfully appeal adverse of such matters, and the timing, determination and recovery of amounts related to such matters; competitive and systemic risks; supply chain disruptions; geopolitical events and uncertainties; government sanctions and tariffs (both domestic and foreign); conflict, war, or terrorism; and various other significant risks discussed in the risk-related portions of the Bank's 2025 Annual Report, such as those related to: Canadian and global economic conditions; Canadian housing and household indebtedness; technology, information systems and cybersecurity; technological disruption, privacy, data and third party related risks; competition; the Bank's ability to execute on its strategic objectives; digital disruption and innovation (including, emerging fintech competitors); changes in government fiscal, monetary and other policies; tax risk and transparency; fraud and criminal activity; human capital; business continuity; emergence of widespread health emergencies or public health crises; environmental and social risks including, climate change; and various other significant risks, as described beginning on page 40 of the 2025 Annual Report, including the MD&A, which information is incorporated by reference herein. The Bank further cautions that the foregoing list of factors is not exhaustive. When relying on the Bank's forward-looking statements to make decisions involving the Bank, investors, financial analysts, and others should carefully consider the foregoing factors, uncertainties, and current and potential events.

Any forward-looking statements contained herein or incorporated by reference represent the views of management of the Bank only as at the date such statements were or are made, are presented for the purposes of assisting investors, financial analysts, and others in understanding certain key elements of the Bank's financial position, current objectives, strategic priorities, expectations and plans, and in obtaining a better understanding of the Bank's business and anticipated financial performance and operating environment and may not be appropriate for other purposes. The Bank does not undertake any obligation to update any forward-looking statements made by the Bank or on its behalf whether as a result of new information, future events or otherwise, except to the extent required by applicable securities legislation. Additional information relating to the Bank can be located on SEDAR+ at www.sedarplus.ca.

Access to Quarterly Results Materials

This press release can be found on the Bank's website at www.laurentianbank.ca, in the About us section under the News releases tab, and the Bank's Report to Shareholders, Investor Presentation and Supplementary Financial Information can be found in the About us section under the Investor relations tab, Quarterly results.

Conference Call

Laurentian Bank of Canada invites media representatives and the public to listen to the conference call to be held at 9:00 a.m. (EST) on December 5, 2025. The live, listen-only, toll-free, call-in number is 1-800-990-4777, and mention Laurentian Bank to the operator. A live webcast will also be available on the Bank's website at www.laurentianbank.ca in the Investor relations tab, Quarterly results.

The conference call playback will be available on a delayed basis from 12:00 p.m. (EST) on December 5, 2025, until 12:00 p.m. (EST) on January 5, 2026, on our website under the Investor relations tab, Quarterly results.

The presentation material referenced during the call will be available on our website under the Investor relations section, Quarterly results.

About Laurentian Bank of Canada

Founded in Montreal in 1846, Laurentian Bank is committed to serving its customers and fostering deep relationships with specialized groups. Laurentian Bank runs operations across Canada – primarily in Québec and Ontario – as well as in the United States and competes where it sees market opportunity and has an edge, while harnessing the power of partnerships and collaboration.

SOURCE Laurentian Bank of Canada

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Contact:

Contact Information: Investor Relations, Raphael Ambeault, Vice President, Finance & Investor Relations, Mobile: 514-601-0944, raphael.ambeault@laurentianbank.ca; Media: Frédérique Lavoie-Gamache, Lead Advisor, Media and Investor Relations, 438-364-1596, media@blcgf.ca