Bank of Nova Scotia raises its dividend as lower loan losses help drive profit beat
It’s a clean sweep for Canada’s Big Five banks. Scotia joined its peers by rolling past profit expectations this morning. Profit reached $1.96 billion in the third quarter amid growth in all of the bank’s divisions. It was also helped by a sharp drop in provisions for loan losses as CEO Brian Porter reiterates his view that energy losses peaked in Q2. All told, Scotia sees fit to reward shareholders by raising the quarterly payout by two cents to 74 cents per share.
A quick summary of the big banks’ third-quarter provisions for credit losses:
BMO: $257M vs $201M in Q2
RBC: $318M vs $460M in Q2
CIBC: $243M vs $324M in Q2
TD: $556M vs $584M in Q2
BNS: $571M vs $752M in Q2
BNN's Greg Bonnell will speak with Scotia CEO Brian Porter later today. Don’t miss that interview on The Close at 4:00 p.m. ET.
NEB extends Energy East hearing suspension
After a protestor sprinted toward the National Energy Board’s panelists yesterday and appeared set to leap onto a table before being intercepted by security, the regulator has decided continuing the session today in Montreal isn’t worth the risk. The scheduled resumption of the proceeding has been postponed. The NEB, however, says it’s “fully committed” to giving residents an opportunity to air their views on TransCanada’s proposed pipeline. We’re expecting to find out later today how the NEB plans to achieve that objective after yesterday’s pandemonium.
Iconic Calgary retailer closing after 115 years in business
It survived the Great Depression and the global financial crisis, but Calgary western gear purveyor Riley & McCormick isn’t able to withstand the economic downdraft triggered by the collapse in crude oil prices. Combined with crummy weather that helped wash out sales during this year’s Stampede and new wage rules implemented by Rachel Notley’s NDP government, the 115-year-old store is being driven out of business. We have a field interview today with Riley’s owner, Brian Guichon.
EU cracks down on Apple's Irish tax deal
The European Commission has ordered Ireland to recoup 13-billion euros in illegal tax benefits granted to Apple, alleging the arrangement allowed the tech giant to “avoid taxation on almost all profits generated by sales of Apple products in the entire EU Single Market.” EC Commissioner Margrethe Vestager said Apple paid an effective corporate tax rate of 0.005 per cent in 2014. Apple’s stock is down more than 2 per cent in pre-market trading. You can find the full EC announcement here. The ruling is subject to appeal, and risks inflaming political tension with the U.S.
Sirius privatization vote
Shareholders get their say today on the proposed privatization of Sirius XM Canada Holdings Inc. Dissident shareholders, including many BNN regulars, are furious over the transaction; and the two leading proxy advisory firms are split over whether clients should support it or not. BNN's Paige Ellis will be on location for meeting. We expect to speak with one of the dissidents, Paul Gardner from Avenue Investment Management, around 10:20 a.m. ET.
Ritchie Bros. chases digital growth with US$740M takeover
Ritchie Bros. Auctioneers is buying online heavy-equipment auction platform IronPlanet for US$740 million in cash (deal value reaches US$758.5 million when everything is taken into account). In a statement, Ritchie Bros' CEO Ravi Saligram trumpeted the digital growth opportunity and said the acquisition is a "logical next step" that will help "accelerate" Ritchie Bros' earnings and revenue growth. Ritchie Bros. points out IronPlanet gives it access to "new, large customer segments, including government surplus and oil & gas." In a separate release, Ritchie Bros. announced a new strategic alliance with Caterpillar, which comes hand in hand with the takeover. Conference call is today at 8:30 a.m. ET.
Canada Post talks into double overtime
“Don’t panic,” CUPW President Mike Palecek said in a statement at 9:45 p.m. ET yesterday after the Canadian Union of Postal Workers warned it was prepared to launch job action this morning. One hour and 45 minutes later came the announcement that CUPW and Canada Post have agreed to another 24-hour extension in their labour negotiations. One can only imagine what the uncertainty and rhetoric is doing for mail volumes.
Trudeau in China
The official visit is underway. Scheduled events today include a roundtable session organized by the China Entrepreneur Club. Throughout the PM’s visit to the world’s second-largest economy, we’ll have analysis of the stakes for Canada. Today, we get insight from Business Council of Canada CEO John Manley (12:30 p.m. ET) and ex-Defense Minister Peter MacKay (2:30 p.m. ET).
Releases/events:
-Notable data: S&P/Case-Shiller U.S. home price index (9:00 a.m. ET)
-Notable earnings: Alimentation Couche-Tard
-10:00 a.m.: Sirius XM Canada special shareholders’ meeting
-2:30 p.m. ET: Natural Resources Minister Jim Carr delivers speech in Calgary
-National Energy Board expected to resume Energy East panel session in Montreal
-Justin Trudeau’s official visit to China continues
Every morning Commodities host Andrew Bell writes a ‘chase note’ to BNN's editorial staff listing the stories and events that will be in the spotlight that day. Today's note was written by BNN's Managing Editor Noah Zivitz. Have it delivered to your inbox before the trading day begins by heading to www.bnn.ca/subscribe.
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