Sector Update: Financials; RBC Names New CEO, Gluskin Sheff Completes Blair Franklin Buy, Fairfax Reports Earnings, Home Capital Ups Dividend


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Financial stocks were mostly lower in afternoon trading, with the S&P/TSX Financials index down 1.3%.

Fairfax Financial (FFH.TO): +0.7%

Royal Bank of Canada (RY.TO): -1.5%

Gluskin Sheff + Associates (GS.TO): -1.0%

Home Capital Group (HCG.TO): +1.0%

Toronto-Dominion Bank (TD.TO): -1.2%

In corporate news, Royal Bank of Canada Friday named Dave McKay as President and Chief Executive Officer. McKay succeeds Gordon Nixon in the role. McKay was Group Head of the Personal & Commercial Banking segment of RBC. His 26-year career at RBC includes senior roles in retail banking, risk management and international experience in corporate banking.

On the other hand, Gluskin Sheff + Associates has closed its previously announced acquisition of all of the outstanding shares of Blair Franklin Asset Management Holdings Inc., the parent company of Blair Franklin Asset Management Inc. The transaction is expected to be accretive to the company's earnings per share in the first year, excluding amortization and any non-recurring items arising from the transaction, Gluskin Sheff said.

Also, Fairfax Financial Holdings Limited Thursday night announced net earnings of $363.7 million in the second quarter of 2014 ($16.15 per diluted share after payment of preferred share dividends) compared to a net loss of $157.8 million in the second quarter of 2013 ($8.55 net loss per diluted share after payment of preferred share dividends), reflecting net gains on its investment portfolio and improved underwriting results. Book value per basic share increased to $386.77 at June 30, 2014 from $339.00 at December 31, 2013 (an increase of 17.1% adjusted for the $10 per common share dividend paid in the first quarter of 2014).

Finally, Home Capital Group Thursday night said it approved an increase to the company's dividend payout target range from 13% - 17.5% to 14% to 21% of profits. The company's dividend payout target range is subject to the review by the board on a quarterly basis and modified in accordance with the performance of the company and then current market conditions.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing , Commodities

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