Earnings of Laurentian Bank of Canada (LRCDF) declined this year as the bank's business slowed while it transitioned to a new model. Reduction in loan portfolio and challenging capital market conditions were responsible for the earnings decline. Going forward, we expect earnings to recover due to cost reduction efforts, normalization of loan growth, and expansion in net interest margin.
Administrative Expenses to Decline Following Transition to A New Business Model
LRCDF has recently completed its transition from a traditional banking model to a 100% advisory model. The management stated in its 3QFY19 investor conference call