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Power Financial Reports Second Quarter Financial Results

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Power Financial Reports Second 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.

TORONTO, Aug. 3, 2018 /CNW Telbec/ - Power Financial Corporation (TSX:PWF) today reported earnings results for the three and six months ended June 30, 2018.

Consolidated Results of Power Financial
For the period ended June 30

Highlights

  • Power Financial reported second quarter net earnings and adjusted net earnings (a non-IFRS financial measure) of $658 million. Adjusted net earnings were the highest in its history.
  • Great-West Lifeco Inc. (Lifeco) reported second quarter net and adjusted net earnings of $831 million, compared with net earnings of $585 million and adjusted net earnings of $712 million in the second quarter of 2017.
  • Putnam Investments, LLC's net asset inflows for the three months ended June 30, 2018 were US$1.6 billion, which were the highest since the second quarter of 2011.
  • IGM Financial Inc. (IGM) reported second quarter net and adjusted net earnings of $203.7 million, up from net earnings of $200.8 million and adjusted net earnings of $185.9 million in the second quarter of 2017.
  • Record high assets under management at IGM at June 30, 2018 were $159.1 billion, an increase of 2.2% in the quarter and 7.1% from the prior year driven by favourable investment returns.
  • IGM's investment fund net sales in the second quarter were $171 million, the second-best second quarter results in a decade.

Second Quarter
Net earnings and adjusted net earnings attributable to common shareholders were $658 million, or $0.92 per share, compared with 2017's net earnings of $545 million, or $0.76 per share, and adjusted net earnings of $622 million, or $0.87 per share.

Contributions to Power Financial's net earnings and adjusted net earnings were:

 

(in millions of dollars)

2018

2017


Net Earnings

and

Adjusted Net Earnings

Net Earnings

Adjusted Net
Earnings

• Lifeco

562

397

481

• IGM

121

124

116

• Pargesa Holding SA (Pargesa)

36

48

49

• Power Financial Corporate and Other

(61)

(24)

(24)


658

545

622

 


Six Months
Net earnings and adjusted net earnings attributable to common shareholders were $1,244 million, or $1.74 per share, compared with 2017's net earnings of $1,029 million, or $1.44 per share, and adjusted net earnings of $1,123 million, or $1.57 per share.

Contributions to Power Financial's net earnings and adjusted net earnings were:

 

(in millions of dollars)

2018

2017


Net Earnings

and

Adjusted Net Earnings

Net Earnings

Adjusted Net
Earnings

• Lifeco

1,057

796

900

• IGM

228

228

220

• Pargesa

80

94

92

• Power Financial Corporate and Other

(121)

(89)

(89)


1,244

1,029

1,123

 

Results of Great-West Lifeco, IGM Financial and Pargesa Holding
For the period ended June 30

GREAT-WEST LIFECO INC.

Second Quarter
Net earnings and adjusted net earnings attributable to common shareholders were $831 million, or $0.839 per share, compared with 2017's net earnings of $585 million, or $0.591 per share, and adjusted net earnings of $712 million, or $0.719 per share.

Six Months
Net earnings and adjusted net earnings attributable to common shareholders were $1,562 million, or $1.579 per share, compared with 2017's net earnings of $1,176 million, or $1.189 per share, and adjusted net earnings of $1,331 million, or $1.345 per share.

IGM FINANCIAL INC.

Second Quarter
Net earnings and adjusted net earnings available to common shareholders were $203 million, or $0.85 per share, compared with 2017's net earnings of $201 million, or $0.83 per share, and adjusted net earnings of $186 million, or $0.77 per share.

Six Months
Net earnings and adjusted net earnings available to common shareholders were $389 million, or $1.61 per share, compared with 2017's net earnings of $378 million, or $1.57 per share, and adjusted net earnings of $363 million, or $1.51 per share.

PARGESA HOLDING SA

Second Quarter
Pargesa reported net earnings of SF152 million, compared with SF128 million in 2017.

These results exclude Pargesa's share of a gain realized on the disposal of its investment in Burberry Group plc (Burberry) of SF40 million, offset by an impairment charge of SF87 million on its investment in Ontex N.V. (Ontex). Effective January 1, 2018, these investments were reclassified by Pargesa as fair value through other comprehensive income in accordance with IFRS 9 [1].

Six Months
Pargesa reported net earnings of SF213 million, compared with SF253 million in 2017.

These results exclude Pargesa's share of a gain realized on the sale of Burberry and an impairment charge, as described above. The first quarter results of Pargesa exclude 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 [2].

 

[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. Power Financial continues to apply IAS 39 and its share of the gain realized in the sale of Burberry of $18 million, offset by its share of the impairment charge of $34 million on Ontex, has been included in the contribution from Pargesa.     

[2]

Investments in private equity funds were reclassified from AFS to fair value through profit and 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 November 1, 2018 to shareholders of record September 28, 2018.

Dividends on Power Financial Preferred Shares

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

Dividends payable November 15, 2018 to shareholders of record October 25, 2018:

 

Series – Stock Symbol

Amount

Series A – PWF.PR.A

Floating rate [1]



[1]

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

 

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

 







Series

Stock Symbol

Amount

Series

Stock Symbol

Amount

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