Explore key insights into Laurentian Bank (TSX: LB) stock. In this guide, we’ll discuss what to consider before buying this stock as well as key indicators for viability
updated May 1, 2026
Bank stocks are often seen as a safe and steady choice for long-term investors. In Canada, they are especially popular because the country’s banking system is known for being strong and reliable. These stocks can offer stable dividends and tend to hold up well even during economic ups and downs. That’s why many investors continue to include Canadian bank stocks – like Laurentian Bank’s – in their portfolios.
In this article, Wealth Professional will discuss what you need to know about Laurentian Bank of Canada stock. We’ll compare key financial indicators and explain the major transactions currently underway that are shaping how this stock is being valued.
Is Laurentian Bank stock (TSX: LB) a good buy?
The most important question is whether Laurentian Bank of Canada stock is worth your clients’ time and money. To answer that properly, advisors need to understand that Laurentian Bank is currently the subject of two major announced transactions. That context materially changes how the stock should be evaluated.
What is happening with Laurentian Bank?
In December 2025, Laurentian Bank announced that it had entered into two agreements:
- Fairstone Bank of Canada will acquire all issued and outstanding common shares of Laurentian Bank at $40.50 per share in cash, for total consideration of approximately $1.9 billion
- National Bank of Canada will acquire Laurentian Bank’s retail and SME banking portfolios prior to the Fairstone deal closing
On February 5, 2026, Laurentian Bank shareholders voted in favour of the Fairstone acquisition. A majority (98.77% of votes cast) supported the deal – well above the two-thirds threshold required.
Both transactions are expected to close by late 2026, subject to regulatory approvals from the Competition Bureau, the Office of the Superintendent of Financial Institutions (OSFI), and the Minister of Finance.
This is important context for any advisor evaluating this stock, because it affects how the equity is being priced in the market today.
Some shifts over the years
The bank has gone through significant shifts in recent years. In mid-2023, Toronto-Dominion Bank and Scotiabank were both considering buying Laurentian Bank, but both walked away after a strategic review created uncertainty around the sale.
After the failed sale, Laurentian Bank announced CEO Rania Llewellyn’s resignation. Laurentian has since hired three independent directors to focus on improving the bank’s performance and ultimately announced the Fairstone and National Bank transactions in late 2025.
Should your clients invest in Laurentian Bank stock?
Before buying Laurentian Bank stock (or any stock for that matter), it’s vital for your clients to consider these four indicators:
- market capitalization
- price to earnings (P/E) ratio
- earnings per share (EPS)
- dividend yield
Because Laurentian Bank is currently subject to a firm all-cash acquisition offer, these metrics should be read with that context in mind. The stock is not being priced purely on earnings power or dividend yield right now. The announced transaction terms are a significant part of the picture.
Let’s discuss each indicator below:
1. Market capitalization
This is the total value of a company’s shares. The market cap can inform investors of a company’s growth potential and provide a glimpse into the company’s standing in its respective industry, as well as how it fares against its rivals.
For Laurentian Bank stock, the market cap sits at about $1.80 billion as of April 2026, broadly consistent with the approximately $1.9 billion acquisition valuation.
2. Price to earnings (P/E) ratio
The price to earnings ratio helps investors see how much they are paying for each dollar of a company’s earnings. In other words, it compares the company’s stock price to its earnings per share. Laurentian Bank’s current P/E ratio is 14.5 based on its latest financial reports.
Given the pending acquisition and planned portfolio transfer to National Bank, this figure offers limited forward-looking utility for valuation comparisons.
3. Earnings per share (EPS)
Earnings per share tells investors how much profit a company generates for each share of stock. It is a simple way to connect the company’s overall earnings to the individual shares that investors hold.
Laurentian Bank’s current EPS is $2.78 on a trailing twelve-month (TTM) basis. When investors look at this bank stock, they can use EPS together with the P/E ratio. These figures reflect the bank’s current consolidated operations, including business lines that will be divested before the Fairstone deal closes.
4. Dividend yield
Dividend yield is the percentage of a company’s share price that it pays out in dividends each year. It helps income-focused investors estimate how much cash flow they can expect from holding the stock.
Laurentian Bank stock has a current dividend yield of 4.63 percent as of this writing. Over the last five years, its average dividend yield has been higher, hovering at 6.06 percent.
The announced acquisition price of $40.50 per share in cash is a key consideration alongside dividend yield when evaluating the stock’s return potential.
What to consider before investing in Laurentian Bank stock
Before buying Laurentian Bank stock or any other investment for that matter, here are a few things that your clients must keep in mind:
- think of the gains without ignoring the risks
- understand your investment
- always diversify investments
Let’s take a closer look at each:
Think of the gains without ignoring the risks
With a firm cash offer of $40.50 per share and near-unanimous shareholder approval, Laurentian Bank stock offers a relatively defined outcome for investors. However, some risks remain. Completion of the transactions is still subject to regulatory approvals, and any delays or complications could affect the timeline or outcome. Your clients should weigh the potential return against those ongoing risks before deciding whether to invest.
Understand your investment
The investment case for Laurentian Bank stock today is different from a typical bank stock. Rather than being driven by earnings growth or dividend sustainability, it is shaped primarily by the terms and expected closing of the Fairstone acquisition. Clients should understand that they are effectively investing in the outcome of that transaction, not in the bank’s standalone operating performance.
It’s best to stay up to date on regulatory developments and the expected closing timeline when advising clients on this stock.
Always diversify investments
Your clients shouldn’t limit their investments or portfolios to one bank stock or one type of stock alone. Tell them to mix it up with energy stocks and tech stocks. You can also advise them to diversify their investment portfolio with other asset classes like ETFs, mutual funds, REITs, etc.
This can protect against the effects of inflation and make up for any loss or underperforming investments. For more on diversification, watch this video:
A look back at Laurentian Bank’s history
Laurentian Bank of Canada was founded in 1846 by Monsignor Ignace Bourget, the second Bishop of Montréal, and at least 15 other prominent businessmen.
As the bank was established in French-speaking Québec, its original name was Banque d’Épargne de la Cité et du District de Montréal, or Montréal City and District Savings Bank.
Here are some milestones in Laurentian Bank’s history:
- 1846: achieved a customer base of 11,000 and $3 million in deposits within 25 years, transitioning to a share capital limited company with a federal charter. The headquarters were established at 262 Rue Saint-Jacques, Montréal
- 1921: celebrated its 75th anniversary, amassing assets of $49 million
- 1939: became the first to incorporate a trust company, establishing the Montréal City and District Trustees, later Laurentian Trust
- 1965: listed its shares of stock on the Montréal Stock Exchange
- 1974–1976: introduced the Bancaide ATM system and reached over $1 billion in assets
- 1983: debuted stock on the Toronto Stock Exchange
- 2000: expanded its services by acquiring Sun Life Trust Company, forming B2B Bank
- 2016: consolidated its Montréal offices to a new location at 1360 Rene Lévesque Boulevard West
- 2025: announced agreements with Fairstone Bank and National Bank of Canada
- 2026: shareholders voted 98.77% in favour of the Fairstone acquisition
Laurentian Bank’s history as one of Canada’s established banks is notable. However, these milestones should not be taken as the only signs that Laurentian Bank stock is a great investment. The indicators we’ve discussed – read in the context of the announced transactions – must be used for a thorough review.
Is Laurentian Bank safe to invest in?
Laurentian Bank has a strong history, from its founding in 1846 to its current position as one of Canada’s established banks. The announced acquisition by Fairstone Bank, approved by 98.77% of shareholders, provides a clearer path forward than the bank has had in recent years. However, completion of the transactions remains subject to regulatory approvals, and the timeline extends to late 2026.
Remind your clients that investing always comes with risks. Before buying Laurentian Bank stock, tell them to consider the full picture. Consider the nature of the pending acquisition and what it means for how this stock is valued. It might be smarter to consult the relevant disclosures and ensure that clients understand the transaction context before investing.
Visit our investor resources page for other bank stock choices.
