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Stocks of Laurentian Bank of Canada (TSX:LB) jumped as much as 5.6 per cent on Thursday, April 22, as it received Canada Mortgage and Housing Corporation’s (CMHC) nod to begin a C$ 2 billion legislative secured bond program.
Laurentian Bank president and CEO Rania Llewellyn stated in an exchange filing that CMHC has certified the creditor as a registered issuer under the Canadian Registered Covered Bond. She added that the program is expected to diversify the bank’s financing and curtail its expense of funding by delivering these competitive products.
On April 16, the lender announced that the S&P Global Ratings has upgraded its long-term rating forecast on the bank to ‘stable’. Its ratings were revised from a negative outlook to “BBB” for the long-term and “A-2” for the short-term. Meanwhile, DBRS Morningstar also revised issuer credit rating trends to ‘stable’ for the long-term, as per the bank’s exchange filing.
Let us delve into Laurentian’s stock performance and financials.
Laurentian Bank of Canada (TSX:LB)
Laurentian Bank holds a balance sheet worth C$ 45.2 billion and manages C$ 29.2 billion in assets. Its current stock price of C$ 42.77 (12.24AM EST) is up against its previous 52-week high of C$ 41.39 per share (March 30, 2021).
©Kalkine Group 2021
The bank stock swelled by over 36 per cent this year and has overtaken the S&P TSX Diversified Banks Index, which returned about 19 per cent year-to-date (YTD), according to EODHD/Others data.
The creditor’s share price has grown roughly 57 per cent in the last six months. Its market cap stands at C$ 1.85 billion, and its price-to-earnings ratio is 15.2, as per TMX.
Laurentian stock rose by 65 per cent against its 52-week low of C$ 25.74 per common share (October 29, 2020). At its previous close price, the stock was up 34 per cent against the 200-day simple moving average (SMA), representing a long-term bullish movement.
Laurentian Bank's One-Year Stock Performance Chart. (Source: EODHD/Others/Thomson Reuters)
Laurentian Bank of Canada posted a notable bottom line of C$ 44.8 million in the first fiscal quarter of 2021, registering an increase of 39 per cent year-over-year (YoY).
Its top line climbed by four per cent to C$ 247.4 million against a consolidated revenue of C$ 238.7 million in Q1 FY20, led by improved secured funding and higher prepayments of mortgage loans.
As of January 31, 2021, its stockholders’ equity valued at C$ 2,644.9 million, up against C$ 2,611.2 million as of October 31, 2020.
The above constitutes a preliminary view and any interest in stocks should be evaluated further from investment point of view.
