- Expands the Bank's Business Services activities
- Strengthens the Bank's position as a national player in the
equipment financing sector
- Launch of LBC Capital Inc. subsidiary operations
MONTREAL, Oct. 3, 2016 /CNW Telbec/ - Laurentian Bank
of Canada (TSX : LB)
("Laurentian Bank" or the "Bank") announced today the
completion of the acquisition of CIT Group Inc. Canadian
equipment financing and corporate financing activities ("CIT
Canada") , a portfolio valued at approximately C$1 billion. This acquisition was first announced
on June 29, 2016. As stated at that
time, the equipment financing activities would be regrouped under a
new national subsidiary called LBC Capital Inc., which is
being launched today.
"We are pleased to welcome the CIT Canada employees whose
expertise and well-established business relationships are
complementary to our internal expertise. This will allow us to
accelerate the development of our service offering to Canadian
businesses" said Stéphane Therrien, Executive Vice-President,
Personal and Commercial Banking, at Laurentian Bank. "I am also
pleased to announce the appointment of Eric
Provost, Senior Vice-President, Commercial Banking as
President of LBC Capital Inc. During the course of his career, Eric
has demonstrated strong leadership skills and we are convinced that
he will successfully propel LBC Capital's development while
continuing to deliver strong profitable growth for our Commercial
banking sectors" added Mr. Therrien.
This acquisition is in line with the Laurentian Bank
transformation plan to increase the percentage of loans to business
customers and expand its presence across Canada. With regard to the integration
strategy, Laurentian Bank is planning a smooth and seamless process
for customers, employees, distributors and local dealers.
As a result of the closing of the acquisition, the Bank's
3,247,600 subscription receipts were, in accordance with their
terms, automatically settled on a one-for-one basis for common
shares of the Bank. The Bank expects that the subscription receipts
will be immediately halted from the Toronto Stock Exchange and
de-listed after markets close today.
About Laurentian Bank
Laurentian Bank of Canada is a
banking institution whose activities extend across Canada. Founded in 1846, its mission is to
help customers improve their financial health and is guided by
values of proximity, simplicity and honesty.
The Bank serves one and a half million clients throughout the
country and employs more than 3,600 individuals whose talent and
dedication have made it a major player in numerous market segments.
The Bank caters to the needs of retail clients via its branch
network based in Quebec and
Ottawa. The Bank has also earned a
solid reputation among small and medium-sized enterprises and real
estate developers thanks to its specialized teams across
Canada, namely in Ontario, Quebec, Alberta, British
Columbia, Nova Scotia and
Newfoundland. Its subsidiary B2B
Bank is, for its part, a Canadian leader in providing banking and
investment products and services through financial advisors and
brokers, while Laurentian Bank Securities offers integrated
brokerage services to a clientele of institutional and retail
investors.
The Bank has more than $40 billion
in balance sheet assets and $43
billion in assets under administration.
Caution Regarding Forward-looking Statements
In this document and in other documents filed with Canadian
regulatory authorities or in other communications, Laurentian Bank
of Canada may from time to time
make written or oral forward-looking statements within the meaning
of applicable securities legislation. Forward-looking statements
include, but are not limited to, statements regarding the Bank's
business plan and financial objectives. The forward-looking
statements contained in this document are used to assist the Bank's
security holders and financial analysts in obtaining a better
understanding of the Bank's financial position and the results of
operations as at and for the periods ended on the dates presented
and may not be appropriate for other purposes. Forward-looking
statements typically use the conditional, as well as words such as
prospects, believe, estimate, forecast, project, expect,
anticipate, plan, may, should, could and would, or the negative of
these terms, variations thereof or similar terminology.
By their very nature, forward-looking statements are based on
assumptions and involve inherent risks and uncertainties, both
general and specific in nature. It is therefore possible that the
forecasts, projections and other forward-looking statements will
not be achieved or will prove to be inaccurate. Although the Bank
believes that the expectations reflected in these forward-looking
statements are reasonable, it can give no assurance that these
expectations will prove to have been correct.
The Bank cautions readers not to place undue reliance on these
statements as a number of important factors could cause actual
results to differ materially from the expectations expressed in
such forward-looking statements. These factors include, but are not
limited to, the possibility that the anticipated benefits of the
transaction are not realized when expected or at all, including as
a result of the strength of the economy and competitive factors in
the areas where Laurentian Bank of Canada and CIT Canada do business; the impact
of changes in the laws and regulations regulating financial
services and enforcement thereof; the effects of competition in the
markets in which Laurentian Bank of Canada and CIT Canada operate; judicial or
regulatory judgments and legal proceedings; Laurentian Bank of
Canada's ability to complete the
integration of CIT Canada successfully; and other factors that may
affect future results of Laurentian Bank of Canada and CIT Canada, including timely
development and introduction of new products and services,
Laurentian Bank of Canada's
ability to cross-sell more products to customers and technological
changes. The Bank further cautions that the foregoing list of
factors is not exhaustive. For more information on the risks,
uncertainties and assumptions that would cause the Bank's actual
results to differ from current expectations, please also refer to
the Management's Discussion and Analysis under the title "Risk
Appetite and Risk Management Framework" in the Bank's Annual
Report, as well as to other public filings available at
www.sedar.com.
The Bank does not undertake to update any forward-looking
statements, whether oral or written, made by itself or on its
behalf, except to the extent required by securities
regulations.
SOURCE Laurentian Bank of Canada