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Corporate Presentation

Second Quarter 2020

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Caution Regarding Forward-Looking StatementsIn this document and in other documents filed with Canadian regulatory authorities or in other communications, we may, from time to time, make written or oral forward-looking statements within the meaning

of applicable securities legislation. Forward-looking statements may include, but are not limited to, statements regarding our business plan and financial objectives including statements contained in our 2019

Annual Report under the heading “Outlook”. The forward-looking statements contained in this document are used to assist readers in obtaining a better understanding of our financial position and the results of

operations as at and for the periods ended on the dates presented and may not be appropriate for other purposes. Forward-looking statements typically are identified with words or phrases such as believe,

estimate, forecast, project, expect, anticipate, plan, goal, target, may, should, could, would, will, intend or the negative of these terms, variations thereof or similar terminology.

By their very nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties, both general and specific in nature. There is significant risk that the

predictions, forecasts, projections or conclusions will prove to be inaccurate, that our assumptions may not be correct, and that actual results may differ materially from such predictions, forecasts, projections

or conclusions.

We caution readers against placing undue reliance on forward-looking statements, as a number of factors, many of which are beyond our control and the effects of which can be difficult to predict, could cause

our actual results to differ materially from the targets, plans, objectives, expectations, forecasts, estimates and intentions expressed in such forward-looking statements.

The future outcomes that relate to forward-looking statements may be influenced by many factors, including but not limited to: general economic and market conditions; changes in government monetary,

fiscal or economic policies; changes in currency and interest rates; legislative and regulatory developments, including tax legislation and interpretation; critical accounting estimates and the effect of changes to

accounting standards, rules and interpretations on these estimates; changes in competition; modifications to credit ratings; scarcity of human resources; developments with respect to labour relations;

information technology and cyber security; developments in the technological environment; environmental risk including changes to global environmental policy and the effects of climate change; the possible

effects of global conflicts and terrorism, natural disasters, public health emergencies, including the direct and indirect impacts of the novel coronavirus (COVID-19) pandemic, disruptions to public infrastructure

and other catastrophic events; our ability to execute our strategic plans including the reorganization of our retail branches, the modernization of our core banking system and the implementation of the

Advanced Internal Ratings-Based (AIRB) Approach to credit risk; as well as our ability to anticipate and effectively manage risks arising from the foregoing.

Since December 31, 2019, the outbreak of COVID-19 has resulted in governments worldwide enacting emergency measures to contain the spread of the virus. These measures, which include the

implementation of travel bans, temporary business and school closures, self-imposed quarantine periods and physical distancing, have caused considerable financial and social disruption resulting in economic

weakness and market volatility. Governments and central banks have reacted with monetary and fiscal interventions and proposed measures and subsidies designed to stabilize economic conditions. The

magnitude, duration and outcome of the outbreak, including its impact on customers, team members and third-party providers; the efficacy of government and central bank interventions; and the related

financial and social impacts are uncertain, and could have a material and adverse effect on our business. Such adverse effect could be rapid and unexpected. It is not possible to reliably estimate the length

and severity of these developments and the impact on the financial results and condition of the Bank.

We further caution that the foregoing list of factors is not exhaustive. Other factors and risks could adversely affect our results. For more information on the risks, uncertainties and assumptions that would

cause our actual results to differ from current expectations, please see the more detailed description of the risks associated with COVID-19 pandemic and related impacts in the Risk Management section

below, the “Risk Appetite and Risk Management Framework” section of our 2019 Annual Report, as well as our other public filings available at www.sedar.com.

We do not undertake to update any forward-looking statements, whether oral or written, made by us or on our behalf, except to the extent required by securities regulations.

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Who We Are

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Laurentian Bank Financial Group (LBCFG)

(1) The Canadian equipment financing and corporate financing activities of CIT Canada

Founded as Montreal

City and District

Savings Bank

1846

1965

Allowed to offer

services outside the

city of Montreal

Allowed to offer

services outside of

Quebec

1981

LBS created

1993

2000

B2B Trust

created

B2B Trust became

federally chartered and

was renamed B2B

Bank. MRS Group of

Companies acquired

2011

2012

AGF

Trust

acquired

CIT Canada(1)

acquired.

LBC Capital

created

2016

2017

NCF acquired.

LBCFG formed

1987

Became a chartered

Bank, renamed

Laurentian Bank of

Canada, allowed to

offer commercial loans

2015

Implemented

Strategic

Plan

175 Years Strong

Total Revenue

reached $1B.

Established the

first Advice-Only

Branch

2018

2019

Implemented

Phase 1 Core

Banking

System.

Converted to

100% Advice.

Launched

Digital

Mission Help customers improve their financial health

Values Proximity Simplicity Honesty

Launched pan-

Canadian digital

offering

2020

5

7th Largest Canadian Bank(1) / Top 40 North American Bank

Total Assets: $45.4 B

19.622.1

27.129.0

34.9 33.936.5

39.743.0

46.7 45.9* 44.4 45.4

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Q2/20

Total Assets (2)

($ Billions)

(1) Based on total assets among publicly listed banks on the TSX (2) The value of total assets for the years prior to 2012 has been calculated in accordance with previous Canadian GAAP.

* Reflects $0.8B of non-strategic commercial loan portfolio sales

+132%

Assets Under Administration: $27.1 B

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Pan-Canadian Bank with Targeted U.S. Presence

Digital Offer

B2B Bank, Business Services, LBS

Financial Clinics

Business Services through NCF

Our Clients

• Personal

• Business

• Institutional

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Strategic Plan

8

A Proactive Approach to Support Our Customers

Early activation of

Business Continuity Plan

Offering customers

support & advice including

Relief programs for those

in need

Helping customers improve their financial health

in good times and bad

80% of our Team

members working safely

from home

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A Solid Foundation

Strong capital

position

Conservative credit

portfolioHigh level of

liquidity

Providing the Bank with operational flexibility

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Completing What We Started

Working to complete

core banking

Timely digital offering

as consumer adoption

accelerates

Expanding the Advisor

team as 100% Advice

model gains

momentum

Setting a strong foundation, working on profitable growth

and enhancing performance

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Loan Portfolio Evolution – Strategic Diversification

60%

40%

Q2-2020 Total Loans $33.7B

Personal

Commercial

43%

32%

8%

7%

2% 8%

Quebec

Ontario

British Columbia

Alberta & Prairies

Atlantic Provinces

US

58%

30%

12%

Quebec

Ontario

Rest of Canada

77%

23%

Q4-2015 Total Loans $30.0B

Personal

Commercial

Evolving business mix

Diversified geographies

Loan growth

Note: Personal includes Personal Loans and Residential Mortgage Loans

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Solid Capital Position

(1) CET1 Ratio and Basel III Leverage Ratio excluding transitional arrangements given by OSFI in Q2-2020 for expected credit losses provisioning, in response to the

COVID-19 pandemic, are 8.7% and 4.5% respectively.

CET1 Ratio 7.6% 8.8% (1)

Q4-2015

AIRB will improve the capital efficiency of the balance

sheet and performance

Q2-2020

Basel III

Leverage Ratio3.5% 4.6% (1)

Beyond 2022 :+ 120 bps

+ 110 bps

Above regulatory requirements (under the Standardized approach for credit risk)

CET1 Capital Ratio Tier 1 Capital Ratio Total Capital

Ratio

Basel III Leverage

Ratio

As at April 30, 2020 8.8% (1) 10.0% 12.0% 4.6%

Regulatory Minimum 7.0% 8.5% 10.5% 3.0%

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Credit

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Loan Portfolio at a Glance (as at April 30, 2020)

Total Loans* $33.7B

Residential Mortgages (RM) $15.9B

Commercial Loans (Comm.) $13.5B

Personal Loans $4.3B

✓ 98% of the loan portfolio is collateralized

✓ No sub-prime mortgage lending

4%

9%

8%

18%

13%

24%

21%

3%

Diversified Across Sectors

Comm. - equipment financing ($1.5B)

Comm. - commercial ($3.2B)

Comm. - inventory financing ($2.6B)

Comm. - real estate ($6.2B)

Personal Loans ($4.3B)

RM - insured ($8.0B)

RM - uninsured prime ($6.8B)

RM - uninsured Alt-A ($1.1B)

Comm.

(40%)

Personal

(13%)

RM

(47%)

* Gross balance

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3.7 3.3

4.2 6.20.1

1.5

2.6

Q4/15 Q2/20

Loan Portfolio (In $ Billions)

Inventory financing

Equipment financing

Commercial real estate

Commercial

8.0

13.5

27%

40%

Q4/15 Q2/20

Commercial Loans(As a % of total loans)

A pan-Canadian

and a U.S. Presence(As a % of commercial loan portfolio)

(As at April 30, 2020)

Across the United States

4%

4%

24%48%

19%

10.0

12.2 12.013.0 13.5

0.06% 0.08%0.16% 0.18%

0.68%

2016 2017 2018 2019 Q2/20

Commercial loans and acceptances (in $ Billions)

PCL (as a % of commercial loans and acceptances)

Credit Quality

Commercial Loan Portfolio: Strong, Diversified and Growing

1%

16

0.81.4

2.7 2.7

0.3

0.50.3

3.13.8

0.1

$ 1.3$ 1.8

$ 5.8

$ 6.5

$ 0.4

8%

11%

3%

BritishColumbia &territories

Alberta &prairies

Ontario Quebec Atlanticprovinces

Insured

Uninsured (including Alt A)

37%

41%

8.1 8.0

6.0 6.8

0.91.1

$ 15.0 $ 15.9

Q4/2015 Q2/2020

Portfolio mix (in $ Billions)

Uninsured - Alt A

Uninsured - Prime

Insured

Residential Mortgage (RM) Portfolio (as at April 30th, 2020)

LTV reflects current estimated value of collateral, including HELOCs. As at April 30th, 2020: HELOCs $0.7B (66% in Quebec, 18% Ontario, 16% rest of Canada)

From Q4/2015 – Q2/2020:

✓ Declining proportion of insured

mortgages and consistently low

loan losses reflect LBCFG’s

strong underwriting

As at Apr. 30, 2020:

LBCFG has

✓ 2 in-house origination channels

(Branches & B2B Bank. Alt-A

through B2B Bank only)

✓ 1 underwriting policy and

guideline

42% 51% 44% 53% 53%

✓ Consistently low LTV (avg. 51%) on Uninsured RM across Canada

✓ A sliding scale: higher the property value, lower the LTV

$ 15.0 $ 16.7 $ 18.5 $ 17.0 $ 16.0 $ 15.9

0.04% 0.02% 0.02% 0.02% 0.02% 0.04%

2015 2016 2017 2018 2019 2020

Residential mortgage loans (in $ Billions) PCL (as a % of average residential mortgage)

PCL(%) vs Loan balance ($B)

Portfolio by region (in $ Billions)

LTV of Uninsured RM by region (including Alt A)

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Uninsured RM Portfolio (as at April 30th, 2020)

* Uninsured include Prime and Alt A

** LTV – reflects current estimated value, including HELOCs | GMA- Greater Montreal Area. GTA- Greater Toronto Area. GVA- Greater Vancouver Area

27

9

82

2

1114

73

2

1014

74

3

1114

72

<600 600-649 650-679 >680

Current Beacon Score Distribution in selected regions (%)

Uninsured* - GMA

Uninsured* - GTA

Uninsured* - GVA

Uninsured Alt A -Canada

32

40

27

1

3234

23

11

44

36

15

5

68

32

0 0

<=50% 50-65% 65-75% >75%

Current LTV Distribution in selected regions (%)

Uninsured RM Prime Alt A

Region GMA GTA GVA CANADA

Loan balance $2.4 B $ 1.4 B $0.2 B $1.1 B

Average LTV (%) ** 51% 49% 48% 33%

Average Beacon Score 733 690 697 685

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Payment Deferrals

(1) Including BAs

As at April 30, 2020(Millions of Canadian dollars )

$ Deferred

payments$ Loan value

As a % of loan

portfolio

Personal loans 1 6 0.1%

Residential Mortgages 50 3,061 19.3%

Commercial loans(1) 58 1,374 10.5%

Total 109 4,441 13.3%

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Forward-looking Economic Scenarios

High weights were assigned to the base and downside scenarios, with a small residual weight to the upside scenario

Base Downside Upside

Relatively is short but steep recession

followed by a moderate rebound

Recession is more pronounced due to

prolonged shutdowns

Milder recession and the economic activity

resumes as the virus is brought under control

GDP at its pre-pandemic level in early 2021 GDP reaches pre-pandemic level in 2022

Structural economic damage is limited, as

businesses and individuals return to normal

activities

Home prices decline gradually and

temporarilyModerate correction in home prices Home prices remains relatively unaffected

Unemployment peaks at the early 1990’s

recession level and 2/3 of the shock reversed

by end of 2020

Unemployment reaches an all-time high post-

WWII

Most of the unemployment increase is reversed

early in 2021

Market risk appetite rebounds in Summer

2020 due to improving economic expectations

Weaker economic rebound reflects a slower

easing in restrictions and additional balance

sheet stress for individuals and companies

Market risk appetite rebounds in Summer 2020

due to improving economic expectations

Yield curve stays relatively flat and rates

remain at historical lows

Interest rates across the yield curve remain low

for a prolonged period

Interest rates rebound gradually starting in

2021

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Provision for Credit Losses (PCL)

PCL($ millions)

Q2/20 Q1/20 Q2/19

Personal Loans

Stage 1 and 2 $ 9.6 $ (2.9) $ (1.8)

Stage 3 7.8 6.9 6.1

17.4 4.0 4.3

Residential Mortgage Loans

Stage 1 and 2 0.8 0.4 (0.2)

Stage 3 0.6 1.1 0.7

1.4 1.5 0.5

Commercial Loans

Stage 1 and 2 21.0 0.9 0.3

Stage 3 15.1 8.5 4.1

36.1 9.4 4.4

$ 54.9 $ 14.9 $ 9.2

Q2/20 Highlights

• PCL increased by $45.7M Y/Y and $40.0M

Q/Q mainly due to provisions in the

commercial and personal loan portfolio

• The increase is primarily driven by the outbreak of COVID-19 which led to

adverse shift in forward-looking economic

scenarios and respective probability weights

• 98% of our loan portfolio is collateralized

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0.42% 0.45%0.40% 0.42%

0.53%

Q2/19 Q3/19 Q4/19 Q1/20 Q2/20

Net Impaired Loans (NIL)(1)

(As a % of loans and acceptances)

0.55% 0.59%0.52% 0.56%

0.70%

Q2/19 Q3/19 Q4/19 Q1/20 Q2/20

Gross Impaired Loans(As a % of loans and acceptances)

• Net impaired loans of $175.5M increased by $33.2M Y/Y and $34.8M Q/Q

• Gross impaired loans of $235.2M, increased by $48.5M Q/Q and $48.3M Y/Y mainly due to an

increase in the commercial loan portfolio

• Allowances for loan losses against impaired

loans increased due to collective allowance which are impacted by the adverse shift in

forward-looking economic scenarios related to

COVID-19 and respective probability weights as well as by individual allowances

(1) Net impaired loans are calculated as gross impaired loans less allowances against impaired loans.

Impaired Loans

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Income stability outperformed peers- underlines solid

risk management and the robust risk appetite framework

(1) Before Q1/19, PCL ratio sourced from Bloomberg, since Q1/19, PCL ratio sourced from individual bank disclosure (as an average of net loans and acceptances).

(2) Reported Net Income, sourced from Bloomberg.

(3) Volatility = Standard Deviation of quarterly reported Net Income / Mean

Consistency and Stability

Credit outperformed the Big 6 - Driven by in-house

expertise in chosen niche markets, reinforced by secured lending,

disciplined underwriting and management strategies to mitigate risk

…

41

18

67

31

96

38

144

0

20

40

60

80

100

120

140

160

180

200

Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Apr-20

Quarterly PCL ratios (in bps)

LB Weighted Avg. Big 6

0.7

0.6

0.5 0.5 0.5

0.4 0.4 0.4 0.4 0.3 0.30.3

A B C D E F LB G H I J K

Quarterly Earnings Volatility Since 2008LBC vs TSX listed peers

(1)

(2)

(3)(2)

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Liquidity and

Funding

24

2.00

33.5

9.9

TotalAssets

LiquidAssets

Loans

OtherAssets

Balance Sheet Management (as at April 30, 2020)

Loans: Net loans and acceptances. Capital: Equity and Subordinated Debt

Balance Sheet ($45.4B)

• Prudent liquidity management guided by risk appetite

• Internal liquidity metric targets a 90-day survival horizon and is more

conservative than LCR

• ~90% of the liquidity portfolio is invested in high quality, liquid assets

• Maintain a comprehensive contingency funding plan

• Regular issuances to Canadian market while ensuring diversification

• Match funding: term liabilities to fund term assets

1.31.6

2.9

33.9

7.0

Liabilities &Capital

Demand &NoticeDeposits

TermDeposits &WholesaleFunding

Capital

OtherLiabilities

655348

9551,177

400125

Q3-2020 Q4-2020 2021 2022 2023 2024

Unsecured Wholesale Funding Maturities (in $ Millions)

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Well Diversified and Stable Sources of Funding

1.0 0.7

7.27.0 7.2

13.4 12.1 11.9

2.9 2.6 2.8

3.62.6 2.7

7.98.9 9.3

0.3 0.3 0.3

2.6 2.6 2.6

Q2/19 Q1/20 Q2/20

Funding($ billions)

Shareholders' equity

Subordinated debt

Debt related tosecuritization activities

Deposits - Institutional

Deposits - Business

Deposits - Personal -Advisors and Brokers

Deposits - Personal -Financial Clinics

Deposits - DigitalDirect to Customers

37.837.537.1

Total deposits decreased by 7% Y/Y, mainly as a result of lower asset levels, and remained stable Q/Q

− Demand deposits of LBC Digital stood at

$0.7B, in line with our expectations

Personal deposits represented 78% of total deposits

as at April 30, 2020 and contributed to our good liquidity position

Securitization funding up by $0.4B Q/Q and $1.4B

Y/Y:

• $1.1B of residential mortgage loans

• $0.1B of equipment finance loans

• $0.2B of investment loans

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Investor Relations ContactSusan Cohen

Director, Investor Relations

(514) 970-0564

susan.cohen@lbcfg.ca