Financial Markets Meltdown

[Dean2]

Technically, a T-Bill is only Bonds of 1 year duration or less. After 1 year they are classed as either coupon bonds, which means they pay interest annually, or Strip Bonds, which means their purchase price is discounted to today's present value, and the Bond goes up in value as it gets closer to maturity. So if you bought a 10,000 bond with a 10% yield, a coupon bond would cost 10,000 and pay you $1,000 a year interest. Very similar to how a GIC works. If you bought a strip bond you would pay 5,000 today and get 10,000 5 years from now. That isn't the exact calculation but close enough for illustrating a point.

If you have a Royal Bank Direct Trading account, under the Trade and Transfer Heading go to place order, then choose Fixed Income. The search screen pops up.The purchase screen it has all of the inventory listed that you can search yourself. It lists T-Bills, Fed Gov Bonds, Provincial/Municipal Gov and Commercial Bonds etc. All bonds show the credit rating of the entity offering them.This is what the results look like. You can scroll down to whatever maturity you want.

These are all Coupon Type bonds but the coupons are not high enough to yield today's interest rates so they are also discounted like a strip bond to get to today's yield, so the price is what you pay per $100 today to get $100 at maturity, plus the coupon. It also shows you the calculated yield based on the coupon plus the discount to PV..



This is what pure strip bond pricing looks like with no coupon. As you will notice some of these have equal credit ratings to Fed Gov Bonds and some are Fed Gov long maturity. So forthe first bond listed you pay 52.02/100 to get 100 at maturity 15 years later.

.

[eric2381]

Thanks. I’ll talk to the people I deal with at RBC as well. But are long term, 20-30 year govt of Canada treasury bonds commonly available?

[Dean2]

Originally Posted by eric2381

Thanks. I’ll talk to the people I deal with at RBC as well. But are long term, 20-30 year govt of Canada treasury bonds commonly available?

Absolutely they are. Look at the screen shot, it tells you the dollar value of the inventory held. There is more than half a million in stock to buy on a number of gov of Canada strip bonds with maturity out past 30 years. The title shows them as coupon Can ( CPN CAN) but the coupons have been stripped off and sold separate so the face value is discounted to provide the required yield. As I said thia info is available direct online in your trading account.

[eric2381]

Thanks. Is it also easy to sell bonds through RBC if a guy wants to instead of letting it mature?

[Dean2]

Originally Posted by eric2381

Thanks. Is it also easy to sell bonds through RBC if a guy wants to instead of letting it mature?

You pay a lot higher commissions buying and selling bonds than you do on stocks. Especially on the sell side. I would phone them and ask them what your specific commission rates will be and write it down along with the name of the person providing the information, date and time. What they charge you depends on how much money you have invested and can vary greatly so don't be afraid to negotiate the commission rates. You also want to cross check the yields on the specific Bond you are looking to buy or sell, as in quoted price of purchase or sale, to ensure there isn't an additional shave on that end too.

https://www.bankofcanada.ca/rates/in...anadian-bonds/

https://www.bankofcanada.ca/rates/in...anadian-bonds/

[eric2381]

Thanks. I understand the commission is much different in the fixed income side. Bonds haven’t really been worth it for years and years now, but with rates continuing to climb, they’ll become more attractive.

Buying them is a simple order online, or a phone call in. Is selling them the same? Understanding there is higher commission.

Thanks.

[Dean2]

Originally Posted by eric2381

Thanks. I understand the commission is much different in the fixed income side. Bonds haven’t really been worth it for years and years now, but with rates continuing to climb, they’ll become more attractive.

Buying them is a simple order online, or a phone call in. Is selling them the same? Understanding there is higher commission.

Thanks.

You can sell them online easily, or you can phone in and see if you can negotiate the sales commission. They are highly liquid and easy to buy and sell. I rarely sell long strips prior to maturity, but if I was going to I would check the info, sale price, commission etc online then do it over the phone and see if I could negotiate a better overall deal.

[eric2381]

Sounds great. Thanks again. Much appreciated. ESP the part about negotiating.

Have a great day Dean. Thanks again.

[ab_hunter]

Dean, do you prefer an index fund that matches the S&P 500 or one that matches the Nasdaq 100? Comparing HXS vs ZNQ specifically. I know you have recommended HXS but ZNQ seems to be the better performer, thoughts?

[Dean2]

Originally Posted by ab_hunter

Dean, do you prefer an index fund that matches the S&P 500 or one that matches the Nasdaq 100? Comparing HXS vs ZNQ specifically. I know you have recommended HXS but ZNQ seems to be the better performer, thoughts?

I don't give that kind of advice. Since I have no idea what people who are reading this have for an overall portfolio, what their risk tolerances are, age, net worth, investment mix, and what their overall situation is. What I post is what I do personally. I own HXS, I do not own ZNQ. That does not mean it isn't the correct choice for someone else. It has performed very well since it was setup about 5 years ago and return is tracking above HXS. For the right person, some of each might make sense, or some on one or the other, depending on what is in the rest of their portfolio. For someone who currently holds no tech, ZNQ might be a good way to get some exposure without having to figure out winners and losers.

For example, I would never own a Banking ETF as it includes the dogs like CIBC, BNS and Laurentitan along with the premium performers like RBC and TD. However, for someone who does not know the banking business, owning an ETF is way better than buying Laurentian, BNS and Manulife as their financial stocks as all three are dogs. The ETF will domuch better as it holds the whole range of great to poor performers. It is the beauty of ETFs, sector or Index.

I hope this at least gives you a way to think about it that is useful to you.

[ab_hunter]

Thanks Dean, as always appreciate your insights.

[Dean2]

For those of you that are interested in Dividend paying stocks you may want to have a look at the pipeline companies. TRP, PPL are both way off their previous highs. At their current prices, TRP is paying 7.7% and PPL 6.4%. Please make sure you do your full due diligence and talk to your investment advisor.These may or may not fit your portfolio but thought I would provide a heads up.

[Map Maker]

Originally Posted by Dean2

For those of you that are interested in Dividend paying stocks you may want to have a look at the pipeline companies. TRP, PPL are both way off their previous highs. At their current prices, TRP is paying 7.7% and PPL 6.4%. Please make sure you do your full due diligence and talk to your investment advisor.These may or may not fit your portfolio but thought I would provide a heads up.

TRP is in all my portfolios and is a cornerstone for all.
They generate a lot of cash and have 10 year contracts in place.
The main issue is all the poor expansion they have been doing and cost overruns on that construction.

I look at pipeline as underground railroads that will always have a use.

The p\e is still higher than I’d like to see it and earnings are out tomorrow.
I do think it can still drop 10% but long term 2 years, I can see it back up to $65/ share while collecting dividend.

NTR and akt.a have both went back up to realistic share price which trp will eventually do.

[ab_hunter]

TRP dropped 6.5% today, might be a good time to buy. Sounds like they are focusing more on moving natural gas.

[Dean2]

Big Changes at TRP. This is exactly why I say, make sure to do your full Due Diligence.

CIBC comments
Our Conclusion The planned tax-free spinoff of the Liquids Pipelines business and Q2/23 results are neutral to our outlook. Benefits of the spinoff may include a potentially higher multiple for the remaining TC Energy business focused on natural gas and low-emissions power. Risks include the ultimate value of the Liquids business in light of its smaller size, lower growth, and currency risk.

CIBC's take. Might want to read the others too.

We maintain our Neutral rating and our $60 DCF-based price target.

Key Points Spinning Off The Liquids Business: The company announced the intention to spinoff the Liquids Pipelines business into a separate company. The decision is a result of a two-year strategic review and is expected to be completed on a tax-free basis in H2/24. We are neutral to this development as we see some short-term risk to the Liquids Pipeline Company, but see some long-term potential value creation if the multiple on the remaining business expands due to its slightly higher growth rate and focus on natural gas infrastructure, and low-carbon power and energy solutions.

Q2 Results Mostly In Line: Comparable EBITDA at $2.474B was a slight beat to our estimate of $2.382B (+3.9%) and was in line with consensus of $2.478B. Comparable EPS of $0.96 were also a bit lower than our estimate of $0.98 and consensus of $0.95. Comparable Funds From Operations were within 1.3% of our estimate. Mexico Gas Pipelines and the Liquids Pipelines businesses were big outperformers, while Power and Storage and U.S. Gas Pipeline missed slightly. Utilization and availability remain strong in all business units.

Outlook Tweaked: The 2023 EBITDA guidance was maintained at 5%-7% growth vs. 2022, while the comparable EPS expectation changed from modestly higher to consistent with 2022 due to higher non-controlling interests. Total capital expenditures for 2023 are still expected to be $11.5B- $12B. The DRIP was discontinued as expected.

Other Updates: The CGL project is approximately 91% complete with no changes to the $14.5B total project cost. On Keystone, the company revised the environmental remediation cost estimate from $650MM to $794MM to meet the required restoration endpoints. The majority of the estimated costs will be eligible for insurance recovery.

A Further $3B Of Asset Sales Expected: In line with our estimates, the company expects to complete another $3B of asset sales through a number of transactions, albeit with a timeline extending through 2024 compared to our 2023 estimate.

Price Target (Base Case): C$60.00 DCF model with a WACC of 6.81% and a terminal multiple of 10.4x EBITDA

Upside Scenario: C$70.00 Assumes a 17x P/E multiple on 2024 EPS

Downside Scenario: C$42.00 Assumes a 10.0x 2024 EV / EBITDA multiple driven by negative market sentiment towards energy.

[Dean2]

Some more analysis by various analysts on the split.

Scotia comments on valuation
Attractively Valued – Buy the Dip

OUR TAKE: Mixed. We believe the market is overreacting to the news of the spin-out of the Liquids pipeline business, and at current levels, we see the shares as an attractive opportunity. The spin-out does not change our outlook for the company, but longer-term, it makes sense to us. In the near term, the spin-out does not alter our funding / leverage outlook for the company, which are the key drivers of the shares. Management is confident that it can achieve the spin-out, realignment of its business units, and construction of two large projects concurrently. We believe investors should look past the spin-out and focus on the base business, which continues to perform well. The Coastal GasLink (CGL) project progress and recent asset sales add additional clarity to the funding outlook, which is a positive as well. We view the existing dividend as sustainable and it should provide some downside support to the shares. We see the valuation at multi-year lows at 10.4x 2024E P/E, 12.3% 2024E free cash flow yield, and a 10.7x EV / EBITDA, presenting an attractive entry point.

KEY POINTS

Valuation, valuation, valuation. Our outperform thesis rests on: 1) an overly discounted valuation, 2) Coastal GasLink (CGL) entering service on time and on budget, and 3) additional asset sales improving the funding outlook. We believe the recent selloff in the share price is overdone, though note that sentiment on the name is quite negative as well as feedback on the proposed liquids spin-out. That said, we believe that progress on CGL and funding would be supportive of valuation expansion. Looking at recent valuation, on a 2024 EV / EBITDA basis, we see TC Energy trading at 10.7x, a 0.7x discount to Enbridge. We would argue TC Energy’s more gas and nuclear-centric business mix deserves a multiple at least in-line, if not better, than Enbridge longer-term. The recent discount seems too punitive to us. Looking at our target valuation, we have adjusted our multiples to what we view as quite conservative levels, which yields our target price of $55 (down from $64). A key variable is our natural gas pipeline multiple of 11x on our 2025 EBITDA estimate. This would be above the recent Columbia sale at 10.5x, but in-line with what our colleague Tristan Richardson uses for U.S. natural gas pipelines. We also note that 2025 only has a partial year contribution of the Southeast Gateway Pipeline (SGP) project, and if we look out to 2026, this multiple comes down to 10.25x. The liquids business at 10x seems fair to us given the contracted nature of the assets and high likelihood of asset re-contracting longer-term based on our view of supply and demand dynamics. There are few valuation markers for contracted long-haul oil pipelines recently. Our valuation for Keystone would be well below the 11x-12x multiple Enbridge monetized a portion of its regional pipeline system last year. A point we believe is important to highlight is that $0.6b of our EBITDA estimate in 2025 (5%) is the equity income from Bruce Power which warrants a much higher multiple (16x) due to the fact that it is income as well as the strong growth from the asset. We outline our sum of the parts in Exhibit 1 with sensitivities on each valuation metric.Good updates lost in the Liquids spin noise. Looking through the spin out, we believe the market is missing two key points: 1) the cost and schedule risk for CGL has been materially reduced given progress this summer, and 2) the reiteration of the sustainability of the dividend (~8.4% yield) as well as dividend growth moving forward. We have updated our model to include $3b of partial asset sales in 2023/2024 which brings our leverage to ~5x. Once SGP enters service, we see this dropping to ~4.7x (consolidated). Our per share estimates come down slightly to reflect $3b of asset sales versus our prior assumption of $2.5b.


From RBC

July 30, 2023
TC Energy Corporation
How low can it go?
Our view: Despite solid Q2/23 results, an update on Coastal GasLink (CGL)
that confirmed budget and timing, and the reiteration of EBITDA guidance
(i.e., operating segment performance is in line with management's
expectations), the shares still underperformed. We attribute the stock price
weakness to the market's reaction to the proposed spin-off of the liquids
pipelines business. Looking past the near-term volatility, we view the stock
as inexpensive as it is trading at its lowest level in almost 20 years.
Key points:
Hard to ignore the value; we believe some investors will gravitate to
what is close to becoming a single digit P/E. While we recognize the
shift in investor sentiment given the lacklustre valuation received for the
company's 40% stake in Columbia, an asset that many viewed as a premium
business, as well as uncertainty with respect to the proposed spin-off of the
liquids pipelines assets, we point to the shares trading at roughly 10.5x our
2024E EPS. This level represents a new low since 2005 (please see Exhibit
1 on page 3).
Solid results and reiteration of EBITDA guidance. In Q2/23, comparable
EBITDA was $2.474 billion versus our estimate of $2.469 billion with EPS
coming in at $0.96 versus our estimate of $0.93. TC Energy reiterated its
2023 financial outlook, which includes EBITDA being 5-7% higher than 2022
(i.e., roughly $10.4-10.6 billion). For 2023 EPS, the company now expects
comparable EPS to be "consistent" with 2022 (previously "modestly higher"
than the $4.30/share booked in 2022) due to higher non-controlling
interest associated with the monetization of the 40% stake in Columbia,
which it expects to close during Q4/23.
Coastal GasLink continues to track to management's plan. Coastal GasLink
is now 91% complete and the company continues to expect mechanical
completion by the end of the year at a total capital cost of $14.5 billion. We
believe an update in the fall of 2023 will be important given the timing of
various critical path portions of the project's construction.
Modestly reducing our estimates to primarily reflect the Columbia sale.
Our new 2023 and 2024 EPS estimates are $4.30 and $4.28, respectively
(down from $4.34 and $4.35, respectively), with the change primarily
reflecting the sale of a 40% stake in Columbia at a valuation slightly below
our prior assumption.
Lowering our price target to $54.00 (down from $65.00). We believe the
stock setting new P/E valuation lows is unwarranted, and that it is not
unreasonable for the stock to recover to the P/E valuation low of 12.5x that
was reached several times over the past five years. Our new price target is
primarily driven by a reduction in our target P/E to 12.5x (down from 15x)
applied to our revised 2024 EPS estimate.

[trailraat]

Dean - RBC has dropped substantially recently in your opinion is this a reset in value or is this a time to buy the dip.

[ab_hunter]

Originally Posted by trailraat

Dean - RBC has dropped substantially recently in your opinion is this a reset in value or is this a time to buy the dip.

I am curious myself, as it sure hasn't been able to gain any traction for the last few years.

[Dean2]

Every Quarter I add to my RBC holdings, I always buy on the exact day they announce their earnings. As far as the comment that this stock hasn't had traction or done anything the last few years, I don't agree with that. Sept 2017, 6 years ago, it was $94, it went on sale during the pandemic down to the mid $70s, from $105 just before the pandemic hit, and now trades at $121. At today's price it yields 4.45%.. I have been accumulating RBC since 1981, my average cost on RBC is ballpark $20, so my dividend yield on cost is 26.9%. If I had not bought in until 10 years ago, my yield would still be 16.2% and the share price has more than doubled since Aug 2013. I expect it will come off another 5 the day it announces earnings, whether the results are good bad or indifferent. I don't expect to make money fast, but over 5 to 10 years, and in my case even longer, this has been a great performer for me.

I only talk about what I do, up to you guys to decide if this is a fit for your investing needs. Hope the perspective is helpful.

[Jim Blake]

RBC at under 120 bucks in my opinion is a very good buy. Picked up some more today.

Warren Buffet was interviewed and asked why didn't the majority of investors follow his line of investments? He replied, because the majority of investors don't want to get rich slowly.

[Sundog57]

If I had had any brains when I was younger RBC with DRIP would have been the perfect RRSP investment... every year. It would have been boring as hell but i would have been in a significantly better position financially.

[Dean2]

Originally Posted by Sundog57

If I had had any brains when I was younger RBC with DRIP would have been the perfect RRSP investment... every year. It would have been boring as hell but i would have been in a significantly better position financially.

You are dead right about my investment portfolio being boring as hell. I find my excitement elsewhere and in many places, but investing isn't it. When I was quite young I did a lot of travelling and had been to Vegas, Reno, Morroco, Caines and many other gambling hot spots. I had often won and didnt find it all that satisfying or entertaining. However, the times I lost money really peed me off. A little later in life I vividly remembered that when I started investing. Looking for the ten bagger over a couple of years isn't investing in my view of the world.

[Dean2]

For those interested, RBC posts their results tomorrow at 6:00 a.m. Easten time, the conference call is at 8:00 a.m.. If it follows its historic pattern it will take a drop on the 24th. Recover some the next day and the days after. The past number of years, it has not mattered whether the results were good or bad, the drop happened the day of the announcement. TD, BNS, CIBC and BMO show this same pattern.

[Dean2]

One more FYI, TD also reports earnings tomorrow.

[Dean2]

So earnings were announced and RBC did NOT follow the long held pattern of dropping on that day, it is actually up $2.25, or about 2%. Jim Blake, you made out great buying when you did a couple of days ago because RBC went up about 75 cents yesterday as well.

RBC did announce very strong results compared to TD, and they also announced aggressive cuts to their Non-Interest Expenses, which were up 23% over the previous quarter. RBC shares have dropped from 132 to 120 recently but I am still surprised it broke out of the pattern. They did however significantly beat on gross rev, net rev, ROE and Loan Loss provisions as well as strong growth in Capital markets and Canadian as well as U.S. markets, both retail and commercial. I think the main contributor however, was the commitment to strong NIE reduction.

TD however took a drop of $1.75, about 2.3%, this morning on their earnings announcement. So unlike most quarters when I buy equal amounts of TD and RY, this time I allocated it to TD. I still think RY is a great buy at $122, but I get more bang for my buck this quarter buying TD at $81.70. Sometimes a guy has to be a little flexible.

This is quoted from BNN that was just posted 2 minutes ago.

Royal Bank beats, but…: Royal Bank handily beat profit expectations but the results were driven by lower taxes and lower-than-expected credit loss provisions. The good in the quarter: strong loan growth in Canada, capital markets roared back to life, surging 57 per cent, and regulatory capital levels grew from the previous quarter. The bad in the quarter: expenses surged again, climbing 23 per cent more than expected. The company says they are not satisfied with that and expect to reduce full time staff by as much as two per cent in the next quarter. On the conference call, they were pushed about whether headcount reduction was enough, given the reduced growth outlook for the rest of the year. CEO Dave McKay responded by saying it’s just one part of a larger cos cutting program they have yet to reveal. Gross impaired loans jumped from the last quarter and are up nearly 60 per cent from last year, mostly due to weakness in commercial real estate.

TD Bank misses, but…: TD missed expectations as expenses and provisions for credit losses jumped in the quarter, but the company announced it would be tripling its buyback. It now intends to buy nearly five per cent of shares outstanding. That might help avert investor attention away from margin compression in the U.S. banking business and an increase in gross impaired loans. TD also benefited from a surge in capital markets, up nearly 40 per cent. Considering the common refrain portfolio managers on TD is that they “like it because of its U.S. exposure,” the margin pressure in the U.S. may weigh on shares today.

[gulo]

The macro picture is we've managed about fifty years of propping-up a model that hit its "best before date" in 1970 by extending easier and easier credit(debt) and by increasingly divorcing the financial markets from real assets and productivity, by manipulating numbers. Now we're on the downslope, the party is over for this civilization, as it always is sooner or later, now it's the hangover, and this hangover is gonna be worse every morning for a generation at the end of which Canada will no longer be recognizable for the wealthy country it once was. The ride is gonna get bumpier by the decade if not the year. Which if you examine the past twenty years is exactly what's going on.

[Jim Blake]

Many thanks to Dean for his advice and insight into the Financial World!!!! The bank stocks are rocking again!!! Now if we can just get rid of the Liberals LOL!!!

[Dean2]

The Laurentian Bank's strategic review results in no buyer interest, as I expected. Their share price has dropped back to 31 bucks, trading where it was prior to the speculative bump to the low $40s in Mid June this year when the review was announced. Laurentian Bank is the worst run bank in Canada and has been for over 50 years. They were the only Bank to reduce their divided payout, which they did again in 2020, and is not getting any better. Typical Quebec based company like Bombardier, SNC Lavalin and the like.

Markets continue to trade sideways for the most part. With rising oil prices, there is upward movement on oil and gas stocks but they don't fully reflect the price increase due to fear of China demand and the still strong potential for recessions in Canada and the States. The service stocks like Precision and Ensign are moving up, as they usually do going into the busy winter season. For those sitting on some of these, might be worth watching for an opportunity to lock in some gains.

Savings accounts like RBF 2010, 2014 and TD 8155 are paying north of 4.5% for your surplus funds that are instantly accessible. Rates on 2-5 year bonds, GICs etc have risen to the point of being an attractive add to a number of portfolios, especially in tax deferred accounts. In annually taxed accounts, dividends still provide a better after tax return for most folks.

I know I have said these last parts quite a few times, and while not wanting to sound like a broken record, it really bears repeating given what is happening in the economy. The energy transition is happening, right wrong or indifferent. Wokeism is real. Rampant, uncontrolled and unqualified and mostly illegal migrants are inundating this country and most of the G20. On top of the illegals, Trudeau is bringing in a million a year, far more than our housing, health system of any other systems can handle. Diversity is being pushed to extremes. This is affecting people's financial security in a very negative way.

For those with mortgages, hopefully you are already locked in. Interest rates are showing signs of peaking for the time being, but there is not going to be any reduction in rates for the next couple of years at least. Even after the Liberals are punted, it is going to take a couple of years for the Conservatives to right the fiscal ship. Focus on paying down debt, starting with the highest interest rates, as the cost of living continues to rise, most wages aren't and the interest on consumer and household debt is not tax deductible.

If you can afford to buy a rental property that will carry itself without being subsidised, do so. Good investment for you, and likely the only way your kids will be able to afford to get into a house 20 years from now. Final piece of advice, get your kids started on TFSAs as soon as they have any income. Add in RRSPS as soon as their income crosses the 60,000 a year threshold. Jobs with pensions are few and far between. They will need to rely on their own resources when they retire 40-50 years from now.

Details on Laurentian

Laurentian Bank Concludes Review of Strategic Options
T.LB | 3 hours ago

MONTRÉAL, Sept. 14, 2023 /CNW/ - Laurentian Bank (TSX: LB) (the "Bank") announced today that it has completed its review of strategic options aimed at maximizing shareholder and stakeholder value with the support of independent financial and legal advisors. Based on the review, the Board, with the support of the Executive Management Team, has unanimously concluded that the best path forward to drive shareholder value is to embark on an accelerated evolution of its current strategic plan with an increased focus on efficiency and simplification.

Laurentian Bank is a much stronger organization today than it was three years ago. Building on the momentum of its turnaround, and its strong track record of delivering against its plan, the Bank will be simplifying its organizational structure and focusing on where it can win by allocating capital and resources to its highest grossing businesses and specialized products while maintaining a relentless focus on the customer.

Track Record of Execution

Two years ago, Laurentian Bank launched a new three-year strategic plan to reboot itself for the future. Since then, the Bank has delivered on key milestones, including exceeding all its financial targets, closing its customers' top five digital pain points, and growing Commercial Banking with a focus on its areas of specialization. It maintains a strong capital and liquidity position, and its funding and deposit base are strong, stable, and diversified.

Having completed two years of the plan, coupled with a changing macroeconomic environment and evolving customer expectations, the Bank's Board of Directors and Executive Management Team felt it was prudent to embark on a thorough review of strategic options to determine the best path forward to maximize shareholder and stakeholder value.

Throughout that process it considered a variety of options, including an acquisition of the whole bank, divestments of certain businesses, as well as accelerating its already proven strategic plan.

The Path Forward

As part of the accelerated path forward, with an increased focus on efficiency and simplification, the Bank is providing larger mandates to two proven executive leaders:

Éric Provost, currently head of Commercial Banking, assumes the leadership of Personal Banking as Group Head of Personal & Commercial Banking. Under Mr. Provost's leadership of Commercial Banking, its team and businesses have become centres of operational and customer service excellence. Under Mr. Provost's expanded mandate, he will drive additional synergies and the sharing of best practices to further improve the customer experience for all of the Bank's customers.
The Bank would like to sincerely thank Karine Abgrall-Teslyk for her leadership of Personal Banking over the past two years. Under her leadership, the retail bank has been repositioned for growth having now closed key foundational gaps including the launch of the Bank's new mobile app and its digital account opening solution.
Sébastien Bélair becomes the Bank's Chief Administrative Officer, assuming responsibility for the Bank's Operations in addition to his current role as Chief Human Resources Officer, as the Bank brings together two key corporate functions under one leader. Under Mr. Bélair's leadership, the Bank's culture has been renewed, guided by a new purpose and core values, and employee engagement has increased by 6 points to 80%. Under his expanded mandate, Mr. Bélair will focus on identifying additional opportunities to streamline processes and drive down the Bank's efficiency ratio while improving both the customer and employee experience. Prior to joining Laurentian Bank, Mr. Bélair had almost 20 years experience running operations functions at two of the big six financial institutions in Canada
The Bank would like to sincerely thank Yves Denommé for his leadership of the Bank's Operations function and team over the past two and a half years. Under his leadership, many layers of complexity have been removed and processes improved organization-wide, resulting in meaningful savings.

2024 Investor Day Announced

The Bank will be sharing more information at its Q4 earnings call on December 7, 2023 and will be unveiling a renewed strategic plan at an Investor Day early in 2024.

The Executive Management Team remains committed to executing on the Bank's fiscal 2023 priorities of delivering excellent customer service, a focus on deposits and optimizing its funding structure, and driving efficiencies through simplification, with the full support and confidence of the Board.

"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," said Rania Llewellyn, President and Chief Executive Officer. "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. I'd like to thank all our team members for their commitment to the organization and their continued focus on providing the best experience for our customers."

"On behalf of the Board of Directors, I would like to thank all members of the Laurentian Bank team for their resiliency and focus on the customer throughout the strategic review process," said Mike Mueller, Chair of the Board of Directors. "The Bank is a much stronger organization today than it was three years ago due to the leadership of the Executive Management Team and thanks to the efforts of our talented employees. As a Board, we have completed our review and we are unanimous in our decision that embarking on an accelerated evolution of the Bank's current strategic plan with an increased focus on efficiency and simplification will drive the most value for our shareholders and stakeholders."

About Laurentian Bank

At Laurentian Bank, we believe we can change banking for the better. By seeing beyond numbers.

Founded in Montréal in 1846, Laurentian Bank helps families, businesses and communities thrive. Today, we have approximately 3,000 employees working together as one team, to provide a broad range of financial services and advice-based solutions for customers across Canada and the United States. We protect, manage and grow $50.7 billion in balance sheet assets and $27.7 billion in assets under administration.

We drive results by placing our customers first, making the better choice, acting courageously, and believing everyone belongs.

SOURCE Laurentian Bank of Canada
.

[Dean2]

One more comment that I missed in the post above, those of you that bought TRP when it dipped to the $42, range will be happy, it is back over $50 bucks today. PPL has been rising a bit too, but it didn't take the same big drop TRP did when they announced the big changes to corporate structure.

[flydude]

Anyone looking at ARM's IPO today? Up 20% right now ($51.00 Expected opening price to $61.23) Actually opened at $56.10