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Power Financial Reports First Quarter Financial Results

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Power Financial Reports First Quarter Financial Results

Canada NewsWire


Readers are referred to the sections "Non-IFRS Financial Measures and Presentation" and "Forward-Looking Statements" at the end of this release.

MONTRÉAL, May 10, 2018 /CNW Telbec/ - Power Financial Corporation (TSX:PWF) today reported earnings results for the three months ended March 31, 2018.

Consolidated Results of Power Financial
For the period ended March 31

  • Adjusted net earnings increased $85 million from the corresponding quarter of 2017, an increase of 17%.

First Quarter
Net earnings attributable to common shareholders and adjusted net earnings attributable to common shareholders (a non-IFRS financial measure) were $586 million or $0.82 per share, compared with net earnings of $484 million, or $0.68 per share, and adjusted net earnings of $501 million, or $0.70 per share, in 2017.

Contributions to Power Financial's adjusted net earnings were:

 

(in millions of dollars)

2018

2017

• Great-West Lifeco Inc. (Lifeco)

495

419

• IGM Financial Inc. (IGM)

107

104

• Pargesa Holding SA (Pargesa)

44

43

• Power Financial Corporate and Other

(60)

(65)


586

501

 

Results of Great-West Lifeco, IGM Financial and Pargesa Holding
For the period ended March 31

GREAT-WEST LIFECO INC.

  • Sales for the first quarter of 2018 were $34.6 billion, up 7% from the first quarter of 2017, with strong sales in each of the segments.
  • Fee and other income was $1.4 billion, up 6% from the first quarter of 2017, driven by market performance, particularly in the U.S., and business growth in all the segments.

First Quarter
Net earnings and adjusted net earnings attributable to common shareholders were $731 million or $0.740 per share, compared with net earnings of $591 million, or $0.598 per share, and adjusted net earnings of $619 million, or $0.627 per share, in 2017.

On May 3, 2018, Lifeco declared a quarterly dividend of $0.3890 per common share, unchanged from the previous quarter.

IGM FINANCIAL INC.

  • Net sales in the first quarter were $1.4 billion, the best first quarter result in IGM's history, and reflects good contribution from each of the operating companies.
  • Assets under management of $155.8 billion were down slightly from the quarter‐end record high assets under management of $156.5 billion at December 31, 2017.

First Quarter
Net earnings and adjusted net earnings available to common shareholders were $186 million or $0.77 per share, compared with $177 million or $0.74 per share in 2017.

On May 4, 2018, IGM declared a quarterly dividend of $0.5625 per common share, unchanged from the previous quarter.

PARGESA HOLDING

  • Net asset value increased 1.6% in the quarter.

First Quarter
Pargesa reported net earnings of SF61 million, compared with SF125 million in 2017. The 2018 results exclude Pargesa's share of gains realized on private equity investments totalling SF57 million which, effective January 1, 2018, have been reclassified as fair value through profit and loss in accordance with IFRS 9 [1].

On May 3, 2018, Pargesa declared a dividend of SF2.50 per bearer share, an increase of 2.5% over the previous year.

 

[1]

On January 1, 2018, Pargesa adopted IFRS 9 which resulted in the reclassification of the majority of its investments (excluding private equity funds) from available for sale (AFS) to fair value through other comprehensive income (FVOCI). All changes in fair value of equity investments designated as FVOCI are recognized permanently in other comprehensive income.




Investments in private equity funds were reclassified from AFS to fair value through profit or loss (FVPL) and unrealized gains accumulated to December 31, 2017 were transferred to retained earnings. Power Financial continues to apply IAS 39 and its share of these gains realized on private equity investments of $21 million has been included in the contribution from Pargesa.

 

Dividends on Power Financial Common Shares

The Board of Directors today declared a quarterly dividend of 43.30 cents on the Corporation's common shares, payable August 1, 2018 to shareholders of record June 29, 2018.

Dividends on Power Financial Preferred Shares

The Board of Directors also declared quarterly dividends on the Corporation's preferred shares.

Dividends payable August 15, 2018 to shareholders of record July 25, 2018:



Series – Stock Symbol

Amount

Series A – PWF.PR.A

Floating rate [2]



[2]

Equal to one quarter of 70% of the average prime rate of two major Canadian chartered banks for the period April 1 to June 30, 2018.

 

Dividends payable July 31, 2018 to shareholders of record July 10, 2018:







Series

Stock Symbol

Amount

Series

Stock Symbol

Amount

Series D

PWF.PR.E

34.375¢

Series O

PWF.PR.O

36.25¢

Series E

PWF.PR.F

32.8125¢

Series P

PWF.PR.P

14.4125¢

Series F

PWF.PR.G

36.875¢

Series Q

PWF.PR.Q

16.9507¢

Series H

PWF.PR.H

35.9375¢

Series R

PWF.PR.R

34.375¢

Series I

PWF.PR.I

37.50¢

Series S

PWF.PR.S

30¢

Series K

PWF.PR.K

30.9375¢

Series T

PWF.PR.T

26.25¢

Series L

PWF.PR.L

31.875¢

Series V

PWF.PR.Z

32.1875¢

 

About Power Financial

Power Financial Corporation is a diversified international management and holding company that holds interests substantially in the financial services sector in Canada, the United States and Europe. It also has significant holdings in global industrial and services companies based in Europe. Power Financial Corporation is a member of the Power Corporation Group of Companies. To learn more, visit www.PowerFinancial.com.

At March 31, 2018, Power Financial held the following economic interests:

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• 67.7% – Great-West Lifeco (TSX:GWO)

www.greatwestlifeco.com

• 61.4% – IGM Financial (TSX:IGM)

www.igmfinancial.com

• 27.8% – Pargesa Holding (SIX: PARG)

www.pargesa.ch

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