Laurentian stock tumbles after bank ends strategic review without buyer
Laurentian Bank of Canada has wrapped up its review of strategic options, including a potential sale of the company or divestiture of assets, without finding a buyer, the company has announced.
In a release on Sept. 14, chief executive Rania Llewellyn said the bank would instead focus on accelerating its three-year strategic plan to streamline its operations.
“Having now completed this review of our strategic options, we are more confident than ever in Laurentian Bank’s strong positioning in the market and unique offering for our customers,” she said.
“As we continue to evolve our bank, our executive management team and all employees will build on our proven track record of executing against our plan and delivering meaningful results for our customers, shareholders and stakeholders.”
The company initially said it was undertaking a strategic review on July 11, confirming a report from The Globe and Mail.
In conjunction with the conclusion of the strategic review, Laurentian also announced it was shuffling its executive ranks, with Éric Provost assuming the role of group head of personal and commercial banking and Sébastien Bélair becoming the chief administrative officer.
The company said it would provide further updates on its fourth-quarter earnings call in early December and provide a new strategic plan in early 2024.
Investors punished the stock after the announcement, with shares falling as much as 12 per cent, its biggest drop in three years. Overall, shares of Laurentian have been a significant laggard, down about one per cent over the last five years, compared to a 33 per cent increase in the S&P/TSX Composite banks index over that time.
While investors soured on Laurentian Thursday, Scotiabank analyst Meny
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