Here are five things you need to know this morning
Royal Bank tops expectations: The earnings parade for Canadian banks continues today, but unlike Tuesday, we have mixed results. Royal Bank topped profit expectations in its latest quarter. Capital markets income rose 13 per cent from a year ago driven by higher revenue in global markets and investment banking. RBC’s provisions for credit losses rose 34 per cent since the same time last year but came in lower than forecasts. On a conference call this morning, RBC CEO Dave McKay said while capital markets have seen a pickup in activity, it has been tempered by trade risks. He also said the overall resale housing market will continue to be dampened by lower sales in the Toronto market.
National Bank misses: National Bank’s adjusted earnings per share and capital markets business came in just shy of analyst estimates in its latest quarter. This comes after the bank reported record capital markets profits in the second quarter because of supercharged trading revenue following “liberation day” in early April. On the positive side, loan-loss provisions came in lower than expected.
Scotiabank CEO on BNN Bloomberg today: Bank of Nova Scotia beat quarterly profit estimates on Tuesday, driven by a strong performance in its Canadian banking unit. That improvement addresses what some analysts have identified as an underperformance compared to its peers. We’ll find out more about the bank’s strategy when we speak with Scotiabank CEO Scott Thomson on BNN Bloomberg today at 11 a.m. ET.
Canada Goose could go private: Shares of Canada Goose have jumped in the pre-market on a report the company’s controlling shareholder, Bain Capital, received bids aimed at taking the parka-maker private. The report from CNBC says the bids value the company at about US$1.35 billion and interested buyers include private equity firms Boyu Capital and Advent International.
Australia acquisition boosts Dollarama: Dollarama beat on sales in the second quarter and reaffirmed its revenue forecast for the full year. Sales were up 10 per cent since last year, driven by strong performance in Canada and Latin America as well as its new market in Australia. In July, Dollarama acquired Australian variety store chain The Reject Shop, which contributed $25.7 million in sales, boosting the overall results.
