Page 3 - Newcom

January 2021
NEWS
declines were Accord Financial Corp., Element Fleet Management and Firm Capital Mortgage Investment Corp. The reasons were largely Covid-related. For example, Accord buys other com- panies’ debts at a discount and collects the money owed, which was difficult during Covid. Firm Capital is involved in short-term real estate loans and other debts related to real estate.
■■ life insurers. All five lifecos reported higher earnings. E-L Financial Corp. and Manulife Financial Corp. had the biggest increases of 113.7% and 190.9%, respectively. E-L benefited from both an increase in the fair value of assets and lower net claims and benefits. Manulife bene- fited from investment-related factors. Both Manulife and Sun Life Financial Services Inc. saw sales rise strongly in Asia.
■■ property and casualty insurers. Fairfax Financial Holdings Ltd., the biggest com- pany in this sector, reported a 43.8% drop in net income, mainly due to taxes payable of US$37.7 million this quarter ver- sus a rebate in 3Q 2019.
Tiny Echelon Holdings Inc. remained in the red to the tune of $2.8 million versus $637,000 a year earlier.
The other three insurers had strong increases in net income. Co-operators General Insurance Co. reported a profit gain of 1,125% due to $77.9 million in underwriting profits versus a loss a year earlier. Intact Financial Corp. and Genworth MI Canada Inc. also saw improved under- writing profits.
■■ mutual fund and investment management companies. BAM’s big earn- ings drop was mainly because of lower equity-accounted income and a US$31-million drop in the fair value of assets versus a gain of US$394 million a year earlier.
Of the other nine companies, CI’s net income declined 6.2% and GMP Capital Inc. remained in the red. GMP sold its capital markets business and is focused on Richardson GMP Ltd., for which it acquired all common shares. In November, GMP was renamed RF Capital Group Inc. and Richardson GMP was renamed Richardson Wealth Ltd. (See story on page 1.)
Five of the other seven com- panies in the sector reported increased earnings. Dundee Corp. and Fiera Capital Corp. posted positive net income ver- sus a loss in 3Q 2019.
AGF Management Ltd. and CI Financial Corp. had net redemp- tions of $22 million and $2 bil- lion, respectively. IGM reported net sales of $408 million.
■■ brokerages. Large increases in investment banking revenue drove strong profits in the quarter. ■■ exchanges. TMX had a solid 15.7% earnings gain.
■■ holding companies. Desjardins Group’s net income increased 27.9% as all divisions saw higher earnings. Power Financial’s net income was down even though their two main sub- sidiaries, GWL and IGM, both reported increased earnings. Subsidiary Paragesa Holdings SA had a loss of $15 million ver- sus earnings of $40 million the year before; there were also cor- porate-level losses. IE
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INVESTMENT EXECUTIVE
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Announcement
Manulife Bank’s new sales structure now in place. Serving you better in 2021 and beyond.
By helping clients choose the right Manulife
Bank products and services to fit their needs, advisors and mortgage brokers are a key part of our success.
We’ve taken bold steps to realign our sales organization into an advisor channel team and a mortgage broker team. Our new focus provides specialized support relevant to your various needs and priorities.
We are pleased to announce a new leadership structure to support your growing business.
from businesses turning to capital markets to raise cash. Strong equi- ties performance increased TMX Group Ltd.’s earnings.
Here’s a look at the sectors in more detail:
■■ banks. The sector has been impacted by both the need for higher loan-loss provisions and low interest rates, which decrease loan profitability.
Four of the 12 deposit-taking institutions had higher earn- ings. Housing-focused banks saw big gains: earnings for Equitable Group Inc. and Home Capital Group Inc. were up 34.6% and 49.9% from a year earlier, respectively.
Bank of Montreal and Royal Bank of Canada also had higher net income, but gained less than 3%. Both had lower net income in personal and commercial banking, and profits fell in RBC’s wealth management operations.
CIBC and Bank of Nova Scotia saw double-digit income drops:
14% and 19%, respectively. Scotia’s operations in South America and the Caribbean were hit hard by Covid-19. Similarly, CIBC booked a $220-million impairment charge related to its Caribbean operations.
The 12 firms had a combined $11.7 billion in loan-loss provi- sions as Covid hit and $7 billion the following quarter. Only $3.3 billion was needed in the latest quarter — not much higher than the $2.9 billion of a year earlier. ■■ finance companies. Of the four companies with increased earnings, only ECN Capital and First National raised their divi- dends. The other two with gains were MCAN Mortgage Corp. and Timbercreek Financial Corp.
First National, MCAN and Timbercreek are residential mortgage providers and bene- fited from a strong housing mar- ket. ECN supports U.S.-based financial services companies.
The firms with earnings
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Lysa Fitzgerald
Vice President Sales Manulife Bank
A member of Manulife Bank’s Leadership Team, Lysa is responsible for the creation and delivery of a sales strategy that fuels the successful execution of the business goals. Lysa has more than 25 years of private and business banking experience in the financial services industry, focused on high net worth clients. She works collaboratively with other Bank leaders and her Sales Leadership Team to drive retail and business sales growth through our advisor, broker and direct channels, and cultivates a high performing sales team where people build their careers and realize their potential.
Mario Cloutier
National Head of Broker Sales (New role)
Mario is a seasoned veteran of the financial services industry with more than 20 years of experience in the mortgage
broker channel. He’ll play an instrumental role in leading our dedicated Mortgage Broker sales across Canada. He will lead a team whose goal is to help you maximize your mortgage sales and deliver a holistic suite of banking solutions to your clients.
Tim Gillrie
National Head of Advisor Sales (New role)
Tim is a retail banking expert with more than 18 years of secured lending and advisor business experience. In his new role, he will lead Advisor sales across Canada. His leadership will do more than help financial advisors maximize their mortgage, specialized insurance lending, business banking and deposit opportunities. By redefining our service model, he will help you grow your business through banking and mortgage solutions tailored to your clients’ unique needs.
For more information on Manulife Bank’s new sales structure, advisors and brokers can contact their dedicated Business Development Manager or call us to arrange a meeting.
Advisor Support: 1-855-518-7546; banksales@manulife.ca Broker Support: 1-844-239-4677; brokersales@manulife.ca
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