Here are four things you need to know this morning
Loblaw sells PC Financial: Lots of moving parts in financial services today. Loblaw is selling its PC Financial to lender EQB Inc. for “estimated total value of $1.3 billion” including a minimum of 17 per cent of EQB’s shares. Desjardins says this will give the giant grocer access to EQB’s 800,000 customers and simplify its reporting. Raymond James has a hold on EQB shares. It says shaky loans are a problem for the company and that in the latest quarter, “credit weakness was generally broad-based across the portfolio.”
Banks beat again: TD Bank Group raised its quarterly dividend to $1.08, up from $1.05. Fourth-quarter profit fell compared with a year ago, weighed down by one-time restructuring charges. On an adjusted basis, TD says it earned $2.18 per diluted share for its latest quarter, above estimates. Bank of Montreal also raised its dividend. It’s now $1.67, an increase of four cents per share. On an adjusted basis, BMO says it earned $3.28 per diluted share in the latest quarter, topping forecasts. And CIBC also posted profit that exceeded expectations and raised its dividend. The bank will now pay $1.07 quarterly, up from 97 cents per share.
Troubles in timber: There’s little joy in lumber right now. Raymond James says Canadian forest products shipments have been hitting multiyear lows, depressed by factors such as persistently high U.S. mortgage rates and elevated home prices. Canfor plans to acquire the remaining 45 per cent of Canfor Pulp currently held by minority shareholders at a premium of about 25 per cent premium to Tuesday’s trading price.
Better Goodwill: Finally, here’s a shopping option to save some dough this holiday season. The Wall St. Journal says Goodwill thrift shops are getting more glamorous, in a bid to shed an image of “dingy thrift stores with dark, crammed aisles and overflowing bins.” Some outlets use scents to neutralize musty odours. Shoppers spent more than US$5.5 billion in Goodwill retail stores across the U.S. and Canada last year.
