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.