National Bank of Canada has agreed to acquire approximately C$4.1 billion in loans from Laurentian Bank, together with the associated deposits that fund those assets, in a transaction that further cements the Montreal-headquartered lender's position as one of Canada's most acquisitive financial institutions. The deal arrives as Laurentian Bank presses ahead with a strategic review prompted by years of underperformance relative to its larger domestic peers.
The transaction adds materially to National Bank's commercial banking portfolio at a moment when the bank is still absorbing its most recent major purchase. In February 2025 National Bank concluded the acquisition of Canadian Western Bank, a deal that broadened its reach well beyond its traditional base in Quebec into western Canada's commercial and mid-market segments, establishing a significant new presence in Alberta, British Columbia, and Saskatchewan.
LAURENTIAN'S STRATEGIC REVIEW CREATES OPENING
Laurentian Bank has been under pressure from investors and analysts for several years over sluggish earnings growth, a narrow business mix, and a comparatively thin digital offering. The strategic review process, which the bank launched to examine all options for its future, has opened the door for National Bank and other prospective acquirers to cherry-pick assets at prices that reflect those structural challenges.
Laurentian's remaining business continues to operate independently for the time being. The bank has not announced a definitive resolution to its strategic review, leaving open the possibility of further targeted asset disposals, a broader corporate transaction, or a recapitalisation that could involve new shareholders. Each of those paths carries different implications for the remaining Laurentian franchise and its roughly 2,800 employees.
Laurentian's remaining business continues to operate independently for the time being. The bank has not announced a definitive resolution to its strategic review, leaving open the possibility of further asset sales or a broader transaction involving its remaining operations.
NATIONAL BANK RESHAPES ITS NATIONAL FOOTPRINT
The two acquisitions — Canadian Western Bank in February and the Laurentian loan book announced this year — represent a significant strategic pivot for National Bank. The bank has historically derived the large majority of its revenues from Quebec, where it holds a strong retail and commercial franchise. The Canadian Western deal gave it a meaningful platform in Alberta, British Columbia, and Saskatchewan. The Laurentian assets, which carry exposure to segments including commercial real estate and business lending, broaden that diversification further.
National Bank said the acquisition furthers its ambition to expand its commercial banking portfolio on a national basis. The bank has not disclosed the precise financial terms of the Laurentian transaction, including the premium — if any — paid over book value for the acquired loans, nor has it indicated an expected completion date. Formal regulatory approval will be required before the assets transfer, and the bank said it anticipated the process to proceed in an orderly manner.
National Bank said the acquisition furthers its ambition to expand its commercial banking portfolio on a national basis. The bank has not disclosed the precise financial terms of the Laurentian transaction, including the premium — if any — paid over book value for the acquired loans.