Laurentian Bank of Canada ended its strategic review without finding a buyer and plans to carry on as an independent firm with a slimmer management team. The company’s shares plunged.
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.
Instead, it will try to ramp up its current strategy, which includes growth in commercial lending and technology upgrades.
“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.
As part of her plan, Llewellyn is shaking up the management team around her. She promoted commercial-banking head Eric Provost to an expanded role that also includes personal banking, replacing Karine Abgrall-Teslyk. Sebastien Belair becomes chief administrative officer, taking on responsibilities held by departing operations head Yves Denomme.
Montreal-based Laurentian will focus on “efficiency and simplification” with a “relentless focus” on customers and allocating capital to its most profitable businesses lines, according to the statement.