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Jun 30, 2024
LandBridge Company LLC Q2 2024 Earnings Report
Laurentian Bank of Canada reported a net loss in the second quarter of 2024, primarily due to significant impairment and restructuring charges.
Key Takeaways
Laurentian Bank of Canada reported a net loss of $117.5 million for the second quarter of 2024, a significant decline from a net income of $49.3 million in the same period last year. This loss was largely driven by $196.8 million in impairment and restructuring charges related to the restructuring of the Bank's operations and the impairment of the Personal and Commercial Banking segment. Adjusted net income, excluding these charges, was $40.5 million.
The Bank reported a net loss of $117.5 million and a diluted loss per share of $2.71 for Q2 2024, a substantial decrease from net income in Q2 2023.
Impairment and restructuring charges totaled $196.8 million, significantly impacting reported results.
Adjusted net income for Q2 2024 was $40.5 million, with an adjusted diluted EPS of $0.90.
Total revenue decreased slightly to $252.6 million, primarily due to lower net interest income from reduced loan volumes.
LandBridge Company LLC
LandBridge Company LLC
Forward Guidance
The Bank will unveil its revamped strategic plan on May 31, 2024, aiming to simplify operations, concentrate on core strengths, and position for future growth. The Bank maintains a strong liquidity position and remains well capitalized.
Positive Outlook
- Unveiling a revamped strategic plan to simplify operations and focus on core strengths.
- Maintaining a strong and prudent liquidity position.
- Remaining well capitalized despite macroeconomic headwinds.
- The sale of assets under administration of Laurentian Bank Securities' retail full-service investment broker division supports strategic focus on simplification.
- The Board declared a quarterly dividend of $0.47 per common share, 2% higher than the previous year.
Challenges Ahead
- Significant impairment and restructuring charges impacting current financial results.
- Suspension of the Advanced Internal-Ratings Based (AIRB) approach to credit risk project resulted in an impairment charge.
- Reduction of leased corporate office premises in Toronto led to impairment charges.
- Expects to record additional severance charges of approximately $7 million in Q3 2024.
- Lower net interest income due to lower loan volumes.