'The sick puppy': Why Laurentian has struggled in a golden age for Canadian banks
Laurentian’s underperformance is hard to ignore. The bank’s share price has risen around 165 per cent since January of 1995, an order of magnitude below the 1,800 per cent rise enjoyed by, the country’s largest bank, in the same period. National Bank of Canada, which is also based in Montreal, has seen similar gains, with its shares up more than 2,000 per cent since 1995. Its market capitalization of $34.4 billion in July dwarfed Laurentian’s of just $1.72 billion.
While other regional players branched out, Laurentian held off on expanding initially beyond a stronghold in Quebec’s biggest city. It was known as The Montreal City and District Savings Bank until 1987 and it wasn’t until 2018 that the bank struck an agreement with other financial institutions to give customers fee-free access to more than 3,000 automated teller machines across the country.“Unlike the other banks, Laurentian never left its home turf of Montreal until 1975,” the analyst said.
“With the launch of our new purpose and core values, we believe we have the right plan and the right team in place to achieve long-term, sustainable growth,” she said at the time. National Bank bulked up over the years, in part, through transformational transactions, including a 1979 merger with the Provincial Bank of Canada that set the stage for a major expansion outside Quebec. Then, in 2016, the bank embarked on an international expansion. More recently,
Scotiabank’s Grauman told clients in a July 12 note that the Montreal-based bank comes with “political and retention risks,” which may make Laurentian a tougher sell than other domestic franchises such as the Canadian arm of HSBC, which was sold to the Royal Bank of Canada for $13.5 billion in a deal expected to close in early 2024.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
The Struggle of Laurentian Bank to Break FreeA Toronto-based analyst suggests that Laurentian Bank's struggle to establish itself as a major player in the financial scene can be traced back to decisions made decades ago. Unlike other banks, Laurentian remained focused on its stronghold in Montreal until 1975, while competitors expanded and grew through mergers. This consolidation in the sector led to the dominance of a few large banks in Canada's financial services industry.
Read more »
Top Picks: Bank of America, TD Bank, and Johnson & JohnsonPaul Harris, partner and portfolio manager at Harris Douglas Asset Management, discusses his top picks: Bank of America, TD Bank, and Johnson & Johnson. Bank of America is one of the largest banks in the United States with a strong capital base and diversified business. TD Bank is Canada's second-largest bank with a strong franchise in the U.S. Johnson & Johnson is the world's largest healthcare company with the opportunity for acquisitions in pharma and medical devices.
Read more »
Laurentian appoints new faculty members to tenure-track‘This is an investment in advancing Laurentian’s academic mission and our bilingual and tricultural mandates,’ said Interim Provost Dr. Brenda Brouwer
Read more »
Oliver Kylington Opens Up About Mental Health Struggles and ComebackCalgary Flames defenseman Oliver Kylington discusses his battle with mental illness and the journey to prioritize his well-being before returning to hockey.
Read more »
Flames' Oliver Kylington opens up on mental health struggles: 'I almost hit a wall'Oliver Kylington did not play for the Flames in 2022-23 as he focused on his mental health.
Read more »