Here are the top reads on deals and financial services over the last 24 hours:
Is it time to worry about bank stocks? It’s becoming clear why Canadian bank stocks are trading at low valuations: With the fiscal second-quarter earnings season nearly over, investors have seen uneven profit growth and rising loan losses. Are bank stocks going nowhere this year? Story (David Berman, for subscribers)
National Bank hikes dividend as profit climbs 2 per cent: National Bank of Canada reported a 2-per-cent rise in second-quarter profit and raised its dividend Thursday, as strong growth in its domestic retail banking business offset weak results from financial markets. For the three months ended April 30, National Bank reported profit of $558-million, or $1.51 per share, compared with $547-million, or $1.44 per share, a year ago. Story (James Bradshaw, for subscribers)
Fiera Capital says it’s safe from takeover: Canada’s third-largest independent asset manager says suitors have the company in their sights but that buying Fiera is complicated by several things including its relationship with two Quebec-based financial institutions and the risk of a blowback by those institutions to the prospect of an out-of-province buyer. Story (Nicolas Van Praet, for subscribers)
Financial regulator fines BMO $200,000 for HELOC disclosure issues: The Financial Consumer Agency of Canada (FCAC), which regulates financial institutions, said the bank failed to disclose certain information that was required to be disclosed under the cost of borrowing regulations. The bank also failed to meet requirements about the format in which the information was to be disclosed, such as the font style and size. Story (Alexandra Posadzki, for subscribers)
BMO shuffles executive ranks in U.S. division: Erminia Johannson, who has worked at the bank since 2012, was appointed group head of North American personal banking and U.S. business banking, a new role that gives her a cross-border focus. Story (Stefanie Marotta, for subscribers)
Don’t sell to Air Canada, says Transat’s biggest shareholder: Transat A.T. Inc.’s largest shareholder says Air Canada’s takeover offer of $13 a share is not enough for the Montreal-based airline and travel company and that it should not consider any offer until it restores its profitability by raising air travel and vacation prices. “We don’t think this is an opportune time to be selling the company,” said Peter Letko of Montreal-based investment manager Letko Brosseau & Associates Inc. The investment company owns about 20 per cent of Transat. Story (Eric Atkins, for subscribers)
Former Wattpad executive Eva Lau announces first venture fund: One of Toronto’s most prominent angel investors, former Wattpad Corp. executive Eva Lau, has launched her first venture fund, becoming one of the few women in Canada to lead an early-stage investment firm. Ms. Lau is announcing Thursday her Two Small Fish Ventures has raised $9-million of her $15-million goal for her first seed-stage fund. Story (Sean Silcoff, for subscribers)
Paving the path forward for Canadian open banking: The concept of open banking is rapidly gaining traction around the world and is poised to reshape the financial landscape in Canada. Open banking refers to the use of application programming interfaces (APIs), which are available from a bank for third-party software providers to securely access features and data from that particular bank on behalf of their joint customer with the customer’s consent. Opinion (Will Buckley)
While it targets Alberta’s oil industry, HSBC gets back in business with Saudi Arabia: Walk down just about any runway ramp to your airplane at Calgary International Airport and HSBC advertisements are plastered everywhere. In some tunnels to the tarmac, posters that trumpet the Hongkong and Shanghai Banking Corp.’s worldwide reach are the only ads on display. Opinion (Mark Milke)
MORE FINANCIAL SERVICES NEWS
Canada’s securities regulator and money-laundering watchdog agree to share more information: Canada’s securities regulator says it will share more information with the country’s financial intelligence unit to better protect against money laundering and terrorist financing. Story (Canadian Press, for subscribers)
MORE DEALS NEWS
CPPIB pressured by Commons committee to divest from Chinese firms allegedly involved in surveillance of Uyghurs: The Canada Pension Plan Investment Board is facing pressure to divest from companies allegedly tied to human rights abuses in China. “I have constituents of mine who’ve come to see me over the past few weeks because they have family members who have been interned,” said Conservative MP Tom Kmiec at the House of Commons finance committee Thursday. Story (Canadian Press, for subscribers)
Gannett reportedly holds merger talks with Gatehouse Media: USA Today owner Gannett Co. Inc. has recently discussed the possibility of a merger with Gatehouse Media Inc., the Wall Street Journal reported on Thursday, citing sources familiar with the matter. Story (Reuters)
CBS board reportedly plans merger talks with Viacom: CBS Corp.’s board is preparing for merger talks with media company Viacom Inc., CNBC reported on Thursday, citing sources. Story (Reuters)
Activist investor Carl Icahn sues Occidental Petroleum over ‘misguided’ Anadarko deal: Occidental Petroleum Corp.’s activist investor Carl Icahn has filed a lawsuit against the company over what it called its “misguided” pact to buy Anadarko Petroleum Corp., and may seek a special meeting to remove and replace board members. Story (Reuters, for subscribers)
FirstGroup reaches end of the line of Greyhound bus ride: Dallas-based Greyhound was put up for sale by Britain’s FirstGroup on Thursday as the North American bus line battles to compete with growing pressure from low cost airlines. Story (Reuters)
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