Page 1

LAURENTIAN BANK FINANCIAL GROUP Press Release FOR IMMEDIATE RELEASE The financial information reported herein is based on the condensed interim consolidated ( unaudited ) information for the three - month period ended July 31 , 2021 , and has been prepared in accordance with International Financial Reporting standards ( IFRS ) , as issued by the International Accounting Standards Board ( IASB ) . All amounts are denominated in Canadian dollars . The Laurentian Bank of Canada and its entities are collectively referred to as Laurentian Bank Financial Group ( the " Group " or the " Bank ” ) and provide deposit , investment , loan , securities , trust and other products or services . Laurentian Bank Financial Group reports third quarter 2021 results • Highlights of third quarter 2021 ( compared with third quarter 2020 ) Reported net income of $ 62.1 million , compared with $ 36.2 million . Adjusted net income ( 1 ) of $ 59.0 million , compared with $ 47.1 million . • Diluted earnings per share of $ 1.32 , compared with $ 0.77 . • Adjusted diluted earnings per share ( 1 ) of $ 1.25 , compared with $ 1.02 . Montreal , September 1 , 2021 — Laurentian Bank Financial Group reported net income of $ 62.1 million and diluted earnings per share of $ 1.32 for the third quarter of 2021 , compared with $ 36.2 million and $ 0.77 for the third quarter of 2020. Return on common shareholders ' equity was 9.4 % for the third quarter of 2021 , compared with 5.8 % for the third quarter of 2020. Results for the quarter take into account a net gain on the settlement of pension plans resulting from annuity purchases ( or buy - out ) , as well as lower provisions for credit losses , as detailed below . On an adjusted basis ( 1 ) , net income was $ 59.0 million and diluted earnings per share were $ 1.25 for the third quarter of 2021 , up from $ 47.1 million and $ 1.02 for the third quarter of 2020. Adjusted return on common shareholders ' equity was 8.9 % for the third quarter of 2021 , compared with 7.7 % a year ago . For the nine months ended July 31 , 2021 , reported net income was $ 159.9 million and diluted earnings per share were $ 3.43 , compared with $ 77.3 million and $ 1.58 for the nine months ended July 31 , 2020. Return on common shareholders ' equity was 8.4 % for the nine months ended July 31 , 2021 , compared with 3.9 % for the nine months ended July 31 , 2020. On an adjusted basis ( 1 ) , net income was $ 163.3 million and diluted earnings per share were $ 3.51 for the nine months ended July 31 , 2021 , up from $ 95.9 million and $ 2.01 for the nine months ended July 31 , 2020. Adjusted return on common shareholders ' equity was 8.6 % for the nine months ended July 31 , 2021 , compared with 5.0 % for the same period a year ago . " The momentum that we have been building over the first half of the year continued into the third quarter with strong performance in Real Estate Financing , another solid quarter from Capital Markets , lower provision for credit losses and our continued focus on cost discipline . Going forward , we remain focused on enhancing the customer experience while continuing to identify structural cost opportunities . Overall , I am pleased with our progress , and I am excited about the journey ahead as we fully realize the results of our actions . " said Rania Llewellyn , President and Chief Executive Officer . In millions of Canadian dollars , except per share and percentage amounts ( Unaudited ) For the three months ended July 31 , July 31 , 2021 2020 Variance For the nine months ended July 31 , July 31 , 2021 2020 Variance Reported basis Net income $ 62.1 $ 36.2 Diluted earnings per share $ 1.32 $ 0.77 71 % $ 71 % $ 159.9 $ 77.3 107 % 3.43 $ 1.58 117 % Return on common shareholders ' equity 9.4 % 5.8 % 8.4 % 3.9 % Efficiency ratio 66.8 % Common Equity Tier 1 capital ratio 10.3 % 73.9 % 9.4 % 69.7 % 76.5 % Adjusted basis ( 1 ) Adjusted net income $ 59.0 Adjusted diluted earnings per share $ 1.25 $ $ 47.1 Adjusted return on common shareholders ' equity Adjusted efficiency ratio 8.9 % 68.4 % 1.02 7.7 % 68.1 % 25 % $ 163.3 23 % $ $ 3.51 $ 8.6 % 95.9 2.01 70 % 75 % 5.0 % 69.1 % 73.1 % ( 1 ) Certain measures presented throughout this document exclude amounts designated as adjusting items and are Non - GAAP measures . Refer to the Non - GAAP measures section for further details