Laurentian Bank Ends Review Without a Sale, Will Go It Alone

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(Bloomberg) — Laurentian Bank of Canada said it has ended its strategic review without finding a buyer and will carry on as an independent firm with a simplified structure. 

The Canadian bank announced in July it was examining its options. It hired JPMorgan Chase & Co. to run the process and considered a number of possibilities, including a sale of the whole bank or parts of it. But it will instead try to ramp up its current strategy, which includes growth in commercial banking and upgrading its technology.  

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“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,” Chief Executive Officer Rania Llewellyn said in a statement Thursday. 

The Montreal-based lender will focus on “efficiency and simplification” with a “relentless focus” on customers and allocating capital to its most profitable businesses lines, the statement said.

The bank’s shares, which jumped on news of the strategic review, have fallen in recent weeks after Llewellyn declined to answer analysts’ questions about the process on Aug. 31. Some analysts had speculated that Laurentian would divest of Northpoint Commercial Finance, a fast-growing US division that specializes in lending for recreational products such as boats and ATVs. 

Laurentian closed at C$35.87 in Toronto on Wednesday, 7% higher than when the review was announced. 

(Updates with additional information beginning in the second paragraph)

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