MONTREAL, Sept. 28, 2016 /CNW Telbec/ - François Desjardins, President and CEO of Laurentian Bank of Canada (TSX: LB), provided today an update to employees on the Bank's transformation and growth plan.
"Today, we announced that we will merge fifty branches over the next eighteen months, while ensuring we continue to provide the level of service that meets our customers' needs", stated Mr. Desjardins.
The challenge for Laurentian Bank, as well as for other Canadian financial institutions, is to develop a winning formula in an environment in which technology and demographics are rapidly evolving and in which economic and regulatory frameworks remain challenging. Continued progress on the transformation plan means that the Bank must evolve to meet customers' needs particularly as their transactional habits are changing. These customer behavior changes, among other things, have led to a reduction in the number of branch visits, a reality seen across the industry.
The traditional Bank operating model is becoming obsolete. "We necessarily have to adapt our retail services in light of this reality to optimize our operating efficiency, while meeting the changing demands of our customers", he added.
These mergers will lead to a reduction of about three hundred positions, mainly through natural attrition.
To support our transformation plan, we have chosen to focus our value proposition on selected attributes through which we wish to distinguish ourselves. "We want to be recognized for the expertise of our advisors and our account managers, for the ease of doing business with us as well as having a simplified product range complemented by automated transaction services", stated Mr. Desjardins.
Since the implementation of the Bank's transformation and growth plan earlier this year, Laurentian Bank has reported significant progress in the creation of a simpler and more efficient organization. Among other things, Laurentian has announced that it will modernize its core banking system to enhance the customer experience and offer new mobile solutions. It was also announced in August that all Montreal corporate offices will locate at one site to achieve substantial savings. Furthermore, it recently advanced its market specialization strategy by agreeing to acquire the Canadian equipment financing and corporate financing activities of CIT Canada, thus increasing the proportion of revenue generated by the Business services sector's activities.
"We are confident in achieving our ambitious financial and growth targets while creating a more efficient and profitable bank for the benefit of our employees, customers and shareholders", concluded Mr. Desjardins.
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.
SOURCE Laurentian Bank of Canada
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