streetwise

Scotiabank’s fourth-quarter profit slips on higher costs, increased loan-loss provisions

by
Scotiabank’s fourth-quarter profit slips on higher costs, increased loan-loss provisions

Bank of Nova Scotia BNS-T reported lower fourth-quarter profit as increased expenses and the bank set aside more money to cover loans that could default, putting pressure on earnings from retail and investment banking. Scotiabank earned $2.1-billion, or $1.63 per share, in the quarter that ended Oct. 31. That compared with $2.6-billion, or $1.97 per … Read more

RBC to buy HSBC’s Canadian unit for $13.5-billion in biggest domestic banking deal on record

by
RBC to buy HSBC’s Canadian unit for .5-billion in biggest domestic banking deal on record

Royal Bank of Canada RY-T is buying HSBC Bank Canada for $13.5-billion in cash in the largest deal ever reached between two domestic banks in the country. The transaction, which is subject to regulatory and government approvals, would see RBC consolidate its position as Canada’s largest bank. The purchase price represents a multiple of 9.4 … Read more

Toronto and Vancouver’s office vacancies on the rise as companies try to get rid of space

by
Toronto and Vancouver’s office vacancies on the rise as companies try to get rid of space

Office vacancy rates in downtown Toronto and Vancouver are climbing quickly, as well-known businesses such as Plenty of Fish, Air Miles and PricewaterhouseCoopers LLP try to get rid of unneeded space amid the shift to remote work and economic uncertainty. Toronto’s vacancy rate reached 15 per cent at the end of September, according to new … Read more

Rental housing investor Starlight halts distributions on two funds, citing variable-rate mortgage woes

by
Rental housing investor Starlight halts distributions on two funds, citing variable-rate mortgage woes

Starlight Investments, one of Canada’s largest owners of apartment buildings and multifamily properties, is halting monthly payouts on two of its funds, another sign that higher interest rates are causing trouble across the real estate sector – even for the most sophisticated managers and investors. Starlight, which owns $25-billion worth of properties and real estate … Read more

Interest rates need to keep rising to fight inflation, Tiff Macklem tells MPs

by
Interest rates need to keep rising to fight inflation, Tiff Macklem tells MPs

Bank of Canada Governor Tiff Macklem waits to appear before the House of Commons finance committee in Ottawa on Nov. 23.Adrian Wyld/The Canadian Press Parliamentarians questioned Bank of Canada Governor Tiff Macklem about inflation and historic financial losses at the central bank on Wednesday, with top opposition politicians looking to frame the bank’s continuing dilemmas … Read more

Alternative mortgage lender Home Capital to be bought by Smith Financial for $1.7-billion

by
Alternative mortgage lender Home Capital to be bought by Smith Financial for .7-billion

A company controlled by billionaire financier Stephen Smith has reached a deal to acquire alternative mortgage lender Home Capital Group Inc. HCG-T for $44 per share in cash, for a purchase price of nearly $1.7-billion. The offer from a subsidiary of Smith Financial Corp., which already owns 9.1 per cent of Home Capital, represents a … Read more

Ottawa is moving to reduce credit-card fees. What it means for businesses, banks and your loyalty points

by
Ottawa is moving to reduce credit-card fees. What it means for businesses, banks and your loyalty points

Gordon Dean hands groceries to a customer (Will and his dog Sammi) in his store in Chesterville, Ont., on Nov. 10.Christinne Muschi/The Globe and Mail At Gordon Dean’s small-town grocery stores in Ontario and Quebec, the rattle of coins in the checkout tills is a more infrequent sound than it used to be. The five … Read more

BMO to take billion-dollar charge after losing Ponzi lawsuit in US

by
BMO to take billion-dollar charge after losing Ponzi lawsuit in US

People cross the street in front of the Bank of Montreal building in Toronto on Tuesday Aug. 29, 2017. Bank of Montreal is cutting jobs in its capital markets division.THE CANADIAN PRESS/Doug IvesDoug Ives/The Canadian Press A jury in a Minnesota bankruptcy court has found the US arm of Bank of Montreal BMO-T liable for … Read more

Canada’s Summit Industrial REIT, a major warehouse owner, sold to Singapore’s sovereign wealth fund for $4.5-billion

by
Canada’s Summit Industrial REIT, a major warehouse owner, sold to Singapore’s sovereign wealth fund for .5-billion

GIC, Singapore’s giant sovereign wealth fund, is swooping into Canada to acquire Summit Industrial Income REIT SMU-UN-T for $4.5-billion, more proof that warehouse properties in major urban centers such as Toronto and Montreal are some of the hottest real estate to own anywhere in the world. GIC’s acquisition, announced Monday, is structured as a joint … Read more

How one of Canada’s fastest-growing companies became its fastest shrinking – but learned to thrive

by
How one of Canada’s fastest-growing companies became its fastest shrinking – but learned to thrive

Lesley Gouldie, CEO and president of Thornhill Research Inc., with the device MOVES SLC, a portable ventilator, in Toronto, on Oct. 19.Tijana Martin/The Globe and Mail Thornhill Research Inc. was one of Canada’s fastest-growing companies during the pandemic. Now it is one of the fastest shrinking. Revenue for the Toronto company, which makes innovative portable … Read more