Here are five things you need to know this morning
TD tops estimates as domestic business strong: Toronto-Dominion Bank reported record Canadian banking revenue on Thursday as well as a beat on profit. Canadian banking has been a key point of focus for the bank after a U.S. anti-money-laundering settlement imposed a cap on its American retail operations, putting extra pressure to perform in Canadian markets. Previously, investors had been disappointed in TD’s domestic performance and the bank was under pressure to improve its domestic unit. Provisions for loan losses came in well below analysts’ expectations.
CIBC profit beat streak continues: Meanwhile, CIBC also topped estimates on strong performance in its domestic retail-banking business, continuing a two-year run of earnings beats. The results were driven by strong performance in its domestic retail-banking business, with revenue and profit growth across all its business units. Analysts say CIBC has outperformed its peers with strong net interest margin performance and cost control.
Desjardins buying Guardian for $1.67B: We also have a significant deal in Canada’s financial industry. Desjardins is buying Guardian Capital for about $1.67 billion. The planned take-private transaction follows a 2023 deal that saw Desjardins buy Guardian’s life-insurance, mutual-fund and investment-distribution networks. The deal combination will create an organization with about $280 billion in assets under management and advisement, and Desjardins says it will position its business as a key player in the Canadian market and support a global expansion. The move builds on Desjardins’ efforts to grow from its base in Quebec. Guardian’s major shareholders have agreed to support the deal. BNN Bloomberg will be speaking with the Presidents of Desjardins Global Asset Management and Guardian Capital today at 11:30 a.m. ET.
Nvidia beats but growth slowing: Markets are reacting today to the closely watched earnings report from Nvidia. The microchip giant reported better-than-expected revenue and profit and said sales growth this quarter will remain above 50 per cent. However, its shares came under pressure in the pre-market, as some investors focused on signs of decelerating growth after a two-year boom in artificial intelligence spending. The outlook adds to concerns that the current pace of AI spending is unsustainable. Nvidia’s leadership is rejecting the idea that investment is flagging, with CEO Jenson Huang saying the opportunity ahead for Nvidia is “immense.”
Activist investor targets Calian: Activist investor Plantro is urging Ottawa-based tech company Calian Group to consider a sale of all or part of its business. In a letter seen by Bloomberg News, Jersey-based Plantro said it has spoken with what it believes to be a majority of Calian’s shareholders who want “meaningful, near-term changes to unlock value.” Plantro owns more than five per cent of Calian’s shares, the letter said. Calian’s client base includes Canadian government agencies, along with large private sector customers such as Lockheed Martin.
