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Cision Canada
27-05-2025
- Business
- Cision Canada
Scotiabank reports second quarter results Français
All amounts are in Canadian dollars and are based on our unaudited Interim Condensed Consolidated Financial Statements for the quarter ended April 30, 2025 and related notes prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB), unless otherwise noted. Our complete Second Quarter 2025 Report to Shareholders, including our unaudited interim financial statements for the period ended April 30, 2025, can also be found on the SEDAR+ website at and on the EDGAR section of the SEC's website at Supplementary Financial Information is also available, together with the Second Quarter 2025 Report to Shareholders on the Investor Relations page at TORONTO, May 27, 2025 /CNW/ - The Bank of Nova Scotia ("Scotiabank") (TSX: BNS) (NYSE: BNS) reported second quarter net income of $2,032 million compared to $2,092 million in the same period last year. Diluted earnings per share (EPS) were $1.48, compared to $1.57 in the same period a year ago. Adjusted net income (1) for the second quarter was $2,072 million and adjusted diluted EPS (1) were $1.52, down from $1.58 last year. Adjusted return on equity (1) was 10.4% compared to 11.3% a year ago. "We continued to invest in our key strategic priorities this quarter, including building deeper, more advice-driven client relationships," said Scott Thomson, President and CEO of Scotiabank. "Amidst the continuously-evolving economic outlook, we are focused on what we can control and are executing on our strategic plan while continuing to deliver positive operating leverage. This quarter we increased our performing allowances to reflect the impact of an uncertain macroeconomic outlook. With strong balance sheet metrics, we remain well positioned to support our clients through this period of uncertainty and to seize growth opportunities as they arise." Canadian Banking generated adjusted earnings (1) of $613 million, down 31% compared to the prior year, due primarily to a significant increase in performing credit loss allowances and a lower margin. The business had solid asset and deposit growth, as well as good underlying momentum in fee revenue. International Banking generated adjusted earnings (1) of $719 million, up 7% year-over-year, with solid revenue generation and lower provision for credit losses, reflecting improvements in the portfolio. Continued positive operating leverage reflects the impact of successful productivity initiatives in the region. Global Wealth Management adjusted earnings (1) were $407 million, up 17% year-over-year driven by solid revenue growth from higher mutual fund fees, brokerage revenues, and net interest income across the Canadian and International wealth businesses. Additionally, assets under management (2) of $380 billion grew 9% year-over-year. Global Banking and Markets reported earnings of $412 million, up 10% compared to the prior year. The results were supported by strong performance in our capital markets business, as well as higher fee revenue in our corporate and investment banking business. The Bank reported a Common Equity Tier 1 (CET1) capital ratio (3) of 13.2% and declared a dividend of $1.10, representing a 4% increase. Financial Highlights Business Segment Review Effective the first quarter of 2025, the Bank made voluntary changes to its allocation methodology impacting business segment presentation. The new methodology includes updates related to the Bank's funds transfer pricing (FTP), head office expense allocations, and allocations between business segments. Prior period results and ratios for each segment have been revised to conform with the current period's methodology. Further details on the changes are as follows: FTP methodology was updated, primarily related to the allocation of substantially all liquidity costs to the business lines from the Other segment, reflecting the Bank's strategic objective to maintain higher liquidity ratios. Periodically, the Bank updates its allocation methodologies. This includes a comprehensive update to the allocation of head office expenses across countries within International Banking, updates to the allocation of clients and associated revenue, expenses, and balances between International Banking, Global Banking and Markets, and Global Wealth Management to align with the strategy, as well as updates to the allocation of head office expenses and taxes from the Other segment to the business segments. To be consistent with the reporting of Scotiabank's recent minority investment in KeyCorp, the Bank has also made changes to the reporting of certain minority investments in International Banking (Bank of Xi'an Co. Ltd.) and Global Wealth Management (Bank of Beijing Scotia Asset Management) which will now be reported in the Other segment. Canadian Banking Q2 2025 vs Q2 2024 Net income attributable to equity holders was $613 million, compared to $893 million, a decrease of $280 million or 31%. The decrease was due primarily to higher provision for credit losses and non-interest expenses, partly offset by higher revenues. Q2 2025 vs Q1 2025 Net income attributable to equity holders decreased $300 million or 33%. The decline was due primarily to higher provision for credit losses on performing loans and lower revenues, partly offset by lower non-interest expenses. Year-to-date Q2 2025 vs Year-to-date Q2 2024 Net income attributable to equity holders was $1,526 million, compared to $1,866 million, a decrease of $340 million or 18%. Adjusted net income attributable to equity holders was $1,527 million, a decrease of $340 million or 18%. The decrease was due primarily to higher provision for credit losses and non-interest expenses, partly offset by higher revenues. International Banking Q2 2025 vs Q2 2024 Net income attributable to equity holders increased $37 million or 6% to $676 million. Adjusted net income attributable to equity holders increased $36 million or 6% to $681 million. The increase was driven by higher non-interest income, lower non-interest expenses, provision for credit losses, income taxes, and the positive impact of foreign currency translation. This was partly offset by lower net interest income. Q2 2025 vs Q1 2025 Net income attributable to equity holders increased $25 million or 4%. Adjusted net income attributable to equity holders increased $24 million or 4%. The increase was driven by lower provision for credit losses, non-interest expenses and income taxes, as well as higher net interest income and the positive impact of foreign currency translation. This was partly offset by lower non-interest income. Year-to-date Q2 2025 vs Year-to-date Q2 2024 Net income attributable to equity holders was $1,327 million, a decrease of 2% from $1,352 million. Adjusted net income attributable to equity holders was $1,338 million, a decrease of $26 million or 2%. The decrease was driven by lower net interest income, higher provision for credit losses and the negative impact of foreign currency translation. This was partly offset by higher non-interest income, lower non-interest expenses, and lower income taxes. Financial Performance on a Constant Dollar Basis The discussion below on the results of operations is on a constant dollar basis. Under the constant dollar basis, prior period amounts are recalculated using current period average foreign currency rates, which is a non-GAAP financial measure (refer to Non-GAAP Measures starting on page 6). The Bank believes that constant dollar is useful for readers in assessing ongoing business performance without the impact of foreign currency translation and is used by management to assess the performance of the business segment. Ratios are on a reported basis. Q2 2025 vs Q2 2024 Net income attributable to equity holders was $676 million, up $29 million or 5%. Adjusted net income attributable to equity holders was $681 million, up $28 million or 4%. The increase was driven by higher non-interest income, lower provision for credit losses and lower income taxes. This was partly offset by lower net interest income. Q2 2025 vs Q1 2025 Net income attributable to equity holders was $676 million, up $14 million or 2%. Adjusted net income attributable to equity holders was $681 million, up $13 million or 2%. The increase was driven by lower provision for credit losses, non-interest expenses and income taxes. This was partly offset by lower non-interest income and net interest income, due mainly to three fewer days in the quarter. Year-to-date Q2 2025 vs Year-to-date Q2 2024 Net income attributable to equity holders was $1,327 million, a decrease of 2% from $1,350 million. Adjusted net income attributable to equity holders was $1,338 million, a decrease of $23 million or 2%. The decrease was driven by lower net interest income and higher provision for credit losses and non-interest expenses. This was partly offset by higher non-interest income and lower income taxes. Global Wealth Management Q2 2025 vs Q2 2024 Net income attributable to equity holders was $399 million, an increase of $58 million or 17%. Adjusted net income attributable to equity holders was $405 million, up $57 million or 17%. The increase was due primarily to higher mutual fund fees, brokerage revenues, and net interest income across the Canadian and International wealth businesses. This was partly offset by higher volume-related non-interest expenses. Q2 2025 vs Q1 2025 Net income attributable to equity holders decreased $8 million or 2%. Adjusted net income attributable to equity holders decreased $9 million or 2%, due primarily to lower mutual fund fees and brokerage revenues, partly offset by lower non-interest expenses and higher net interest income. Year-to-date Q2 2025 vs Year-to-date Q2 2024 Net income attributable to equity holders was $806 million, an increase of $135 million or 20%. Adjusted net income attributable to equity holders was $819 million, up $135 million or 20%. The increase was due primarily to higher mutual fund fees, brokerage revenues, and net interest income across the Canadian and International wealth businesses. This was partly offset by higher non-interest expenses due largely to volume-related expenses. Global Banking and Markets Q2 2025 vs Q2 2024 Net income attributable to equity holders was $413 million compared to $375 million, an increase of $38 million or 10%. The increase was driven primarily by higher net interest income and non-interest income, partly offset by higher non-interest expenses, provision for credit losses and provision for income taxes. Q2 2025 vs Q1 2025 Net income attributable to equity holders was $413 million compared to $517 million, a decrease of $104 million or 20%. The decrease was primarily driven by lower non-interest income and higher provision for credit losses, partly offset by higher net interest income and lower provision for income taxes. Year-to-date Q2 2025 vs Year-to-date Q2 2024 Net income attributable to equity holders was $930 million compared to $763 million, an increase of $167 million or 22%. The increase was primarily driven by higher net interest income and non-interest income, partly offset by higher non-interest expenses, provision for credit losses and provision for income taxes. Other Q2 2025 vs Q2 2024 Net loss attributable to equity holders was $125 million, compared to a net loss of $182 million in the prior year. The adjusted net loss attributable to equity holders was $80 million compared to an adjusted net loss of $182 million in the prior year. The lower loss of $102 million was due to higher revenues, partly offset by higher expenses. The higher revenues were driven mainly by higher net interest income related to lower funding costs from lower interest rates, and higher revenue from the KeyCorp investment. The increase in expenses was driven primarily by higher technology costs. Q2 2025 vs Q1 2025 Net loss attributable to equity holders improved $1,216 million from the prior quarter, which included an impairment loss of $1,164 million related to the announced sale of the banking operations in Colombia, Costa Rica and Panama in the prior quarter. The adjusted net loss attributable to equity holders improved $97 million from the prior quarter. The lower loss was due to higher revenues, which were partly offset by higher expenses. The higher revenues were due primarily to higher net interest income from lower funding costs from lower interest rates, and higher revenue from the KeyCorp investment. The increase in expenses was driven primarily by higher technology costs. Year-to-date Q2 2025 vs Year-to-date Q2 2024 Net income attributable to equity holders was a net loss of $1,466 million which included an impairment loss of $1,164 million related to the announced sale of the banking operations in Colombia, Costa Rica and Panama, an increase in the net loss of $1,054 million compared to the prior year. Adjusted net income attributable to equity holders was a net loss of $257 million compared to a net loss of $412 million in the prior year. The lower loss was due to higher revenues, which were partially offset by higher expenses. The higher revenues were due primarily to higher net interest income from lower funding costs from lower interest rates, and higher revenue from the KeyCorp investment. The increase in expenses was driven primarily by higher technology costs. Credit risk Provision for credit losses Q2 2025 vs Q2 2024 The provision for credit losses was $1,398 million, compared to $1,007 million, an increase of $391 million. The provision for credit losses ratio increased by 21 basis points to 75 basis points. The provision for credit losses on performing loans was $346 million, compared to $32 million. The Bank substantially increased its provision for credit losses on performing loans this quarter to reflect the impact of a significant deterioration in the macroeconomic outlook indicators, in the U.S., Canada and Mexico. The increase also reflects the continued uncertainty related to U.S. tariffs, mainly impacting the Canadian retail and commercial portfolios. The provision for credit losses on impaired loans was $1,052 million compared to $975 million, an increase of $77 million. The provision for credit losses ratio on impaired loans was 57 basis points, an increase of five basis points. The increase in provision this quarter was due primarily to higher impairment in Canadian retail across most products, as well as higher Canadian commercial provisions and one corporate account. Q2 2025 vs Q1 2025 The provision for credit losses was $1,398 million, compared to $1,162 million. The provision for credit losses ratio increased by 15 basis points to 75 basis points. Provision for credit losses on performing loans was $346 million, compared to $98 million. The substantial increase in provision this quarter reflects the impact of a significant deterioration in the macroeconomic outlook indicators, in the U.S., Canada and Mexico, and the continued uncertainty related to U.S. tariffs. This led to an increase in provisions, impacting mainly the Canadian retail and commercial portfolios. The provision for credit losses on impaired loans was $1,052 million compared to $1,064 million, a decrease of $12 million. The provision for credit losses ratio on impaired loans was 57 basis points, an increase of two basis points. The decrease this quarter is due primarily to lower provisions in International retail in most markets and Canadian commercial portfolios. This was partly offset by provisions for one corporate account. Year-to-date Q2 2025 vs Year-to-date Q2 2024 The provision for credit losses was $2,560 million, compared to $1,969 million. The provision for credit losses ratio increased by 16 basis points to 68 basis points. Provision for credit losses on performing loans was $444 million, compared to $52 million. The higher provision this year was due primarily to the impact of significant deterioration in the macroeconomic outlook indicators, in the U.S., Canada and Mexico. The increase also reflects the continued uncertainty related to U.S. tariffs, mainly impacting the Canadian retail and commercial portfolios. The provision for credit losses on impaired loans was $2,116 million compared to $1,917 million, an increase of $199 million. The provision for credit losses ratio on impaired loans was 56 basis points, an increase of five basis points. The increase in provision this year was due primarily to higher impairment in Canadian retail across most products, as well as higher Canadian commercial provisions and one corporate account. Allowance for credit losses The total allowance for credit losses as at April 30, 2025, was $7,276 million compared to $7,080 million in the prior quarter. The allowance for credit losses ratio was 95 basis points, an increase of four basis points. The allowance for credit losses on loans was $7,084 million, an increase of $227 million compared to last quarter. The increase was driven by higher allowance for credit losses on performing loans in Canadian Banking due to the impact of a significant deterioration in the macroeconomic outlook indicators in the U.S., Canada and Mexico. In addition, the overall continued uncertainty related to U.S. tariffs increased performing provisions, mainly impacting the Canadian retail and commercial portfolios. Allowances on impaired loans were higher due primarily to higher provisions in Canadian Banking. This was partly offset by the impact of foreign currency translation of $121 million. The allowance for credit losses on performing loans was higher at $4,883 million compared to $4,667 million last quarter. The allowance for performing loans ratio was 66 basis points. The increase was due primarily to the continued unfavourable macroeconomic outlook and continued uncertainty related to U.S. tariffs, which mainly impacted Canadian Banking. This was partly offset by the impact of foreign currency translation of $77 million. The allowance on impaired loans increased by $11 million to $2,201 million from $2,190 million last quarter. The allowance for impaired loans ratio was 29 basis points, an increase of one basis point. The increase was due primarily to higher provisions in Canadian Banking, partly offset by the impact of foreign currency translation of $44 million. Impaired loans Gross impaired loans decreased to $6,849 million as at April 30, 2025, from $7,064 million last quarter. The decrease was due primarily to lower formations across most portfolios, as well as the impact of foreign currency translation. The gross impaired loan ratio was 90 basis points, a decrease of one basis point from last quarter. Net impaired loans in Canadian Banking were $1,498 million, a decrease of $90 million from last quarter, due primarily to lower retail formations. Net impaired loans in International Banking were $3,006 million, a decrease of $95 million from last quarter, due to the impact of foreign currency translation and lower formations. Net impaired loans in Global Banking and Markets were $84 million, a decrease of $52 million from last quarter due mainly to the write-off of one corporate account. Net impaired loans in Global Wealth Management were $60 million, an increase of $11 million from last quarter. Net impaired loans as a percentage of loans and acceptances were 0.61%, a decrease of two basis points from last quarter. Capital Ratios The Bank's CET1 capital ratio (1) was 13.2% as at April 30, 2025, an increase of approximately 30 basis points from the prior quarter, due primarily to internal capital generation, a lower shortfall in provisions to expected losses, reduced risk-weighted assets, and the Bank's completion of the sale of CrediScotia. The Bank's Tier 1 capital (1) and Total capital ratios (1) were 15.4% and 17.1%, respectively, as at April 30, 2025, representing increases of approximately 30 basis points from the prior quarter, due mainly to the above noted impacts to the CET1 capital ratio. The Leverage ratio (2) was 4.5% as at April 30, 2025, an increase of approximately 10 basis points from the prior quarter, from higher Tier 1 capital and lower leverage exposures. The TLAC ratio (3) was 30.3% as at April 30, 2025, an increase of approximately 150 basis points from the prior quarter, mainly from higher available TLAC. The TLAC Leverage ratio (3) was 8.9% as at April 30, 2025, an increase of approximately 40 basis points from the prior quarter, due primarily to higher available TLAC. As at April 30, 2025, the CET1, Tier 1, Total capital, Leverage, TLAC and TLAC Leverage ratios were well above OSFI's minimum capital ratios. Non-GAAP Measures The Bank uses a number of financial measures and ratios to assess its performance, as well as the performance of its operating segments. Some of these financial measures and ratios are presented on a non-GAAP basis and are not calculated in accordance with Generally Accepted Accounting Principles (GAAP), which are based on International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB), are not defined by GAAP and do not have standardized meanings and therefore might not be comparable to similar financial measures and ratios disclosed by other issuers. The Bank believes that non-GAAP measures and ratios are useful as they provide readers with a better understanding of how management assesses performance. These non-GAAP measures and ratios are used throughout this report and defined below. Adjusted results and diluted earnings per share The following tables present a reconciliation of GAAP reported financial results to non-GAAP adjusted financial results. Management considers both reported and adjusted results and measures useful in assessing underlying ongoing business performance. Adjusted results and measures remove certain specified items from revenue, non-interest expenses, income taxes and non-controlling interests. Presenting results on both a reported basis and adjusted basis allows readers to assess the impact of certain items on results for the periods presented, and to better assess results and trends excluding those items that may not be reflective of ongoing business performance. Reconciliation of reported and adjusted results and diluted earnings per share For the three months ended For the six months ended April 30 January 31 April 30 April 30 April 30 ($ millions) 2025 2025 2024 2025 2024 Reported Results Net interest income $ 5,270 $ 5,173 $ 4,694 $ 10,443 $ 9,467 Non-interest income 3,810 4,199 3,653 8,009 7,313 Total revenue 9,080 9,372 8,347 18,452 16,780 Provision for credit losses 1,398 1,162 1,007 2,560 1,969 Non-interest expenses 5,110 6,491 4,711 11,601 9,450 Income before taxes 2,572 1,719 2,629 4,291 5,361 Income tax expense 540 726 537 1,266 1,070 Net income $ 2,032 $ 993 $ 2,092 $ 3,025 $ 4,291 Net income attributable to non-controlling interests in subsidiaries (NCI) 56 (154) 26 (98) 51 Net income attributable to equity holders 1,976 1,147 2,066 3,123 4,240 Net income attributable to preferred shareholders and other equity instrument holders 135 122 123 257 231 Net income attributable to common shareholders $ 1,841 $ 1,025 $ 1,943 $ 2,866 $ 4,009 Diluted earnings per share (in dollars) $ 1.48 $ 0.66 $ 1.57 $ 2.15 $ 3.25 Weighted average number of diluted common shares outstanding (millions) 1,246 1,250 1,228 1,250 1,225 Adjustments Adjusting items impacting non-interest income and total revenue (Pre-tax) (a) Divestitures and wind-down of operations $ 9 $ – $ – $ 9 $ – (b) Amortization of acquisition-related intangible assets 9 – – 9 – Total non-interest income and total revenue adjusting items (Pre-tax) 18 – – 18 – Adjusting items impacting non-interest expenses (Pre-tax) (a) Divestitures and wind-down of operations 26 1,362 – 1,388 – (b) Amortization of acquisition-related intangible assets 17 18 18 35 36 Total non-interest expense adjusting items (Pre-tax) 43 1,380 18 1,423 36 Total impact of adjusting items on net income before taxes 61 1,380 18 1,441 36 Impact of adjusting items on income tax expense Divestitures and wind-down of operations (15) (7) – (22) – Amortization of acquisition-related intangible assets (6) (4) (5) (10) (10) Total impact of adjusting items on income tax expense (21) (11) (5) (32) (10) Total impact of adjusting items on net income $ 40 $ 1,369 $ 13 $ 1,409 $ 26 Impact of adjusting items on NCI 16 (191) – (175) – Total impact of adjusting items on net income attributable to equity holders $ 56 $ 1,178 $ 13 $ 1,234 $ 26 Adjusted Results Net interest income $ 5,270 $ 5,173 $ 4,694 $ 10,443 $ 9,467 Non-interest income 3,828 4,199 3,653 8,027 7,313 Total revenue 9,098 9,372 8,347 18,470 16,780 Provision for credit losses 1,398 1,162 1,007 2,560 1,969 Non-interest expenses 5,067 5,111 4,693 10,178 9,414 Income before taxes 2,633 3,099 2,647 5,732 5,397 Income tax expense 561 737 542 1,298 1,080 Net income $ 2,072 $ 2,362 $ 2,105 $ 4,434 $ 4,317 Net income attributable to NCI 40 37 26 77 51 Net income attributable to equity holders 2,032 2,325 2,079 4,357 4,266 Net income attributable to preferred shareholders and other equity instrument holders 135 122 123 257 231 Net income attributable to common shareholders $ 1,897 $ 2,203 $ 1,956 $ 4,100 $ 4,035 Diluted earnings per share (in dollars) $ 1.52 $ 1.76 $ 1.58 $ 3.28 $ 3.27 Impact of adjustments on diluted earnings per share (in dollars) $ 0.04 $ 1.10 $ 0.01 $ 1.13 $ 0.02 Weighted average number of diluted common shares outstanding (millions) 1,250 1,250 1,228 1,250 1,225 The Bank's quarterly financial results were adjusted for the following items. These amounts were recorded in the Other operating segment, unless otherwise noted. a) Divestitures and wind-down of operations On February 28, 2025, the Bank completed the sale of CrediScotia Financiera S.A. (CrediScotia), a wholly-owned consumer finance subsidiary in Peru, to Banco Santander S.A. (Espana). The Bank recognized an additional loss of $9 million in non-interest income – other upon closing. For further details, please refer to Note 20 of the Q2 2025 Quarterly Report to Shareholders. In Q2 2025, the Bank recognized an additional impairment loss of $26 million ($8 million after-tax) on the agreement to sell banking operations in Colombia, Costa Rica and Panama for an approximately 20% ownership stake in the newly combined entity of Davivienda. This additional loss represents the change in the carrying value of the assets being sold, as well as changes in foreign currency. In Q1 2025, the Bank recognized an impairment loss of $1,362 million ($1,355 million after-tax) as the banking operations that are part of the transaction were classified as held-for-sale. These amounts were recorded in non-interest expenses - other. For further details, please refer to Note 20 of the Q2 2025 Quarterly Report to Shareholders. b) Amortization of acquisition-related intangible assets These costs relate to the amortization of intangible assets recognized upon the acquisition of businesses, excluding software. These costs are recorded in non-interest expenses - depreciation and amortization for the Canadian Banking, International Banking and Global Wealth Management operating segments and non-interest income - net income from investments in associated corporations for the Other operating segment. For the three months ended April 30, 2025 (1) Global Global Canadian International Wealth Banking and ($ millions) Banking Banking Management Markets Other Total Reported net income (loss) $ 613 $ 714 $ 401 $ 412 $ (108) $ 2,032 Net income attributable to non-controlling interests in subsidiaries (NCI) – 38 2 (1) 17 56 Reported net income attributable to equity holders 613 676 399 413 (125) 1,976 Reported net income attributable to preferred shareholders and other equity instrument holders – – – – 135 135 Reported net income attributable to common shareholders $ 613 $ 676 $ 399 $ 413 $ (260) $ 1,841 Adjustments: Adjusting items impacting non-interest income and total revenue (Pre-tax) Divestitures and wind-down of operations – – – – 9 9 Amortization of acquisition-related intangible assets – – – – 9 9 Total non-interest income adjustments (Pre-tax) – – – – 18 18 Adjusting items impacting non-interest expenses (Pre-tax) Divestitures and wind-down of operations – – – – 26 26 Amortization of acquisition-related intangible assets 1 7 9 – – 17 Total non-interest expenses adjustments (Pre-tax) 1 7 9 – 26 43 Total impact of adjusting items on net income before taxes 1 7 9 – 44 61 Total impact of adjusting items on income tax expense (1) (2) (3) – (15) (21) Total impact of adjusting items on net income – 5 6 – 29 40 Impact of adjusting items on NCI – – – – 16 16 Total impact of adjusting items on net income attributable to equity holders – 5 6 – 45 56 Adjusted net income (loss) $ 613 $ 719 $ 407 $ 412 $ (79) $ 2,072 Adjusted net income attributable to equity holders $ 613 $ 681 $ 405 $ 413 $ (80) $ 2,032 Adjusted net income attributable to common shareholders $ 613 $ 681 $ 405 $ 413 $ (215) $ 1,897 (1) Refer to Business Segment Review section of the Bank's Q2 2025 Quarterly Report to Shareholders. For the three months ended January 31, 2025 (1) Global Global Canadian International Wealth Banking and ($ millions) Banking Banking Management Markets Other Total Reported net income (loss) $ 913 $ 686 $ 409 $ 517 $ (1,532) $ 993 Net income attributable to non-controlling interests in subsidiaries (NCI) – 35 2 – (191) (154) Reported net income attributable to equity holders 913 651 407 517 (1,341) 1,147 Reported net income attributable to preferred shareholders and other equity instrument holders – – – – 122 122 Reported net income attributable to common shareholders $ 913 $ 651 $ 407 $ 517 $ (1,463) $ 1,025 Adjustments: Adjusting items impacting non-interest expenses (Pre-tax) Divestitures and wind-down of operations – – – – 1,362 1,362 Amortization of acquisition-related intangible assets 1 8 9 – – 18 Total non-interest expenses adjustments (Pre-tax) 1 8 9 – 1,362 1,380 Total impact of adjusting items on net income before taxes 1 8 9 – 1,362 1,380 Total impact of adjusting items on income tax expense – (2) (2) – (7) (11) Total impact of adjusting items on net income 1 6 7 – 1,355 1,369 Impact of adjusting items on NCI – – – – (191) (191) Total impact of adjusting items on net income attributable to equity holders 1 6 7 – 1,164 1,178 Adjusted net income (loss) $ 914 $ 692 $ 416 $ 517 $ (177) $ 2,362 Adjusted net income attributable to equity holders $ 914 $ 657 $ 414 $ 517 $ (177) $ 2,325 Adjusted net income attributable to common shareholders $ 914 $ 657 $ 414 $ 517 $ (299) $ 2,203 (1) Refer to Business Segment Review section of the Bank's Q2 2025 Quarterly Report to Shareholders. (1) Refer to Business Segment Review section of the Bank's Q2 2025 Quarterly Report to Shareholders. (2) Effective Q1 2025, changes were made to the methodology used to allocate certain income, expenses and balance sheet items between business segments. Prior period results for each segment have been reclassified to conform with the current period's methodology. Refer to page 2 for further details. For the six months ended April 30, 2025 (1) Global Global Canadian International Wealth Banking and ($ millions) Banking Banking Management Markets Other Total Reported net income (loss) $ 1,526 $ 1,400 $ 810 $ 929 $ (1,640) $ 3,025 Net income attributable to non-controlling interests in subsidiaries (NCI) – 73 4 (1) (174) (98) Reported net income attributable to equity holders 1,526 1,327 806 930 (1,466) 3,123 Reported net income attributable to preferred shareholders and other equity instrument holders – – – – 257 257 Reported net income attributable to common shareholders $ 1,526 $ 1,327 $ 806 $ 930 $ (1,723) $ 2,866 Adjustments: Adjusting items impacting non-interest income and total revenue (Pre-tax) Divestitures and wind-down of operations – – – – 9 9 Amortization of acquisition-related intangible assets – – – – 9 9 Total non-interest income adjustments (Pre-tax) – – – – 18 18 Adjusting items impacting non-interest expenses (Pre-tax) Divestitures and wind-down of operations – – – – 1,388 1,388 Amortization of acquisition-related intangible assets 2 15 18 – – 35 Total non-interest expenses adjustments (Pre-tax) 2 15 18 – 1,388 1,423 Total impact of adjusting items on net income before taxes 2 15 18 – 1,406 1,441 Impact of adjusting items on income tax expense (1) (4) (5) – (22) (32) Total impact of adjusting items on net income 1 11 13 – 1,384 1,409 Impact of adjusting items on NCI – – – – (175) (175) Total impact of adjusting items on net income attributable to equity holders 1 11 13 – 1,209 1,234 Adjusted net income (loss) $ 1,527 $ 1,411 $ 823 $ 929 $ (256) $ 4,434 Adjusted net income attributable to equity holders $ 1,527 $ 1,338 $ 819 $ 930 $ (257) $ 4,357 Adjusted net income attributable to common shareholders $ 1,527 $ 1,338 $ 819 $ 930 $ (514) $ 4,100 (1) Refer to Business Segment Review section of the Bank's Q2 2025 Quarterly Report to Shareholders. For the six months ended April 30, 2024 (1) Global Global Canadian International Wealth Banking and ($ millions) Banking (2) Banking (2) Management (2) Markets (2) Other (2) Total Reported net income (loss) $ 1,866 $ 1,398 $ 676 $ 763 $ (412) $ 4,291 Net income attributable to non-controlling interests in subsidiaries (NCI) – 46 5 – – 51 Reported net income attributable to equity holders 1,866 1,352 671 763 (412) 4,240 Reported net income attributable to preferred shareholders and other equity instrument holders 1 1 1 1 227 231 Reported net income attributable to common shareholders $ 1,865 $ 1,351 $ 670 $ 762 $ (639) $ 4,009 Adjustments: Adjusting items impacting non-interest expenses (Pre-tax) Amortization of acquisition-related intangible assets 2 16 18 – – 36 Total non-interest expenses adjustments (Pre-tax) 2 16 18 – – 36 Total impact of adjusting items on net income before taxes 2 16 18 – – 36 Impact of adjusting items on income tax expense (1) (4) (5) – – (10) Total impact of adjusting items on net income 1 12 13 – – 26 Total impact of adjusting items on net income attributable to equity holders 1 12 13 – – 26 Adjusted net income (loss) $ 1,867 $ 1,410 $ 689 $ 763 $ (412) $ 4,317 Adjusted net income attributable to equity holders $ 1,867 $ 1,364 $ 684 $ 763 $ (412) $ 4,266 Adjusted net income attributable to common shareholders $ 1,866 $ 1,363 $ 683 $ 762 $ (639) $ 4,035 (1) Refer to Business Segment Review section of the Bank's Q2 2025 Quarterly Report to Shareholders. (2) Effective Q1 2025, changes were made to the methodology used to allocate certain income, expenses and balance sheet items between business segments. Prior period results for each segment have been reclassified to conform with the current period's methodology. Refer to page 2 for further details. Reconciliation of International Banking's reported, adjusted and constant dollar results International Banking business segment results are analyzed on a constant dollar basis which is a non-GAAP measure. Under the constant dollar basis, prior period amounts are recalculated using current period average foreign currency rates. The following table presents the reconciliation between reported, adjusted and constant dollar results for International Banking for prior periods. The Bank believes that constant dollar is useful for readers to understand business performance without the impact of foreign currency translation and is used by management to assess the performance of the business segment. Reported Results For the three months ended For the six months ended ($ millions) January 31, 2025 April 30, 2024 (1) April 30, 2024 (1) Foreign Constant Foreign Constant Foreign Constant (Taxable equivalent basis) Reported exchange dollar Reported exchange dollar Reported exchange dollar Net interest income $ 2,169 $ (34) $ 2,203 $ 2,254 $ (6) $ 2,260 $ 4,494 $ 51 $ 4,443 Non-interest income 861 (15) 876 706 12 694 1,540 29 1,511 Total revenue 3,030 (49) 3,079 2,960 6 2,954 6,034 80 5,954 Provision for credit losses 602 (14) 616 566 (8) 574 1,140 8 1,132 Non-interest expenses 1,553 (22) 1,575 1,547 23 1,524 3,129 70 3,059 Income before taxes 875 (13) 888 847 (9) 856 1,765 2 1,763 Income tax expense 189 (2) 191 184 1 183 367 4 363 Net income $ 686 $ (11) $ 697 $ 663 $ (10) $ 673 $ 1,398 $ (2) $ 1,400 Net income attributable to non-controlling interests in subsidiaries (NCI) $ 35 $ – $ 35 $ 24 $ (2) $ 26 $ 46 $ (4) $ 50 Net income attributable to equity holders of the Bank $ 651 $ (11) $ 662 $ 639 $ (8) $ 647 $ 1,352 $ 2 $ 1,350 Other measures Average assets ($ billions) $ 229 $ (3) $ 232 $ 234 $ (2) $ 236 $ 235 $ 1 $ 234 Average liabilities ($ billions) $ 174 $ (3) $ 177 $ 182 $ – $ 182 $ 182 $ 2 $ 180 (1) Effective Q1 2025, changes were made to the methodology used to allocate certain income, expenses and balance sheet items between business segments. Prior period results for each segment have been reclassified to conform with the current period's methodology. Refer to page 2 for further details. Adjusted Results For the three months ended For the six months ended ($ millions) January 31, 2025 April 30, 2024 (1) April 30, 2024 (1) Constant Constant Constant Foreign dollar Foreign dollar Foreign dollar (Taxable equivalent basis) Adjusted exchange adjusted Adjusted exchange adjusted Adjusted exchange adjusted Net interest income $ 2,169 $ (34) $ 2,203 $ 2,254 $ (6) $ 2,260 $ 4,494 $ 51 $ 4,443 Non-interest income 861 (15) 876 706 12 694 1,540 29 1,511 Total revenue 3,030 (49) 3,079 2,960 6 2,954 6,034 80 5,954 Provision for credit losses 602 (14) 616 566 (8) 574 1,140 8 1,132 Non-interest expenses 1,545 (22) 1,567 1,539 23 1,516 3,113 70 3,043 Income before taxes 883 (13) 896 855 (9) 864 1,781 2 1,779 Income tax expense 191 (2) 193 186 1 185 371 3 368 Net income $ 692 $ (11) $ 703 $ 669 $ (10) $ 679 $ 1,410 $ (1) $ 1,411 Net income attributable to non-controlling interests in subsidiaries (NCI) $ 35 $ – $ 35 $ 24 $ (2) $ 26 $ 46 $ (4) $ 50 Net income attributable to equity holders of the Bank $ 657 $ (11) $ 668 $ 645 $ (8) $ 653 $ 1,364 $ 3 $ 1,361 (1) Effective Q1 2025, changes were made to the methodology used to allocate certain income, expenses and balance sheet items between business segments. Prior period results for each segment have been reclassified to conform with the current period's methodology. Refer to page 2 for further details. Return on equity Return on equity is a profitability measure that presents the net income attributable to common shareholders (annualized) as a percentage of average common shareholders' equity. Adjusted return on equity is a non-GAAP ratio which represents adjusted net income attributable to common shareholders (annualized) as a percentage of average common shareholders' equity. Forward-looking statements From time to time, our public communications include oral or written forward-looking statements. Statements of this type are included in this document, and may be included in other filings with Canadian securities regulators or the U.S. Securities and Exchange Commission (SEC), or in other communications. In addition, representatives of the Bank may include forward-looking statements orally to analysts, investors, the media and others. All such statements are made pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995 and any applicable Canadian securities legislation. Forward-looking statements may include, but are not limited to, statements made in this document, the Management's Discussion and Analysis in the Bank's 2024 Annual Report under the headings "Outlook" and in other statements regarding the Bank's objectives, strategies to achieve those objectives, the regulatory environment in which the Bank operates, anticipated financial results, and the outlook for the Bank's businesses and for the Canadian, U.S. and global economies. Such statements are typically identified by words or phrases such as "believe," "expect," "aim," "achieve," "foresee," "forecast," "anticipate," "intend," "estimate," "outlook," "seek," "schedule," "plan," "goal," "strive," "target," "project," "commit," "objective," and similar expressions of future or conditional verbs, such as "will," "may," "should," "would," "might," "can" and "could" and positive and negative variations thereof. By their very nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties, which give rise to the possibility that our predictions, forecasts, projections, expectations or conclusions will not prove to be accurate, that our assumptions may not be correct and that our financial performance objectives, vision and strategic goals will not be achieved. We caution readers not to place undue reliance on these statements as a number of risk factors, many of which are beyond our control and effects of which can be difficult to predict, could cause our actual results to differ materially from the expectations, targets, estimates or intentions expressed in such forward-looking statements. The future outcomes that relate to forward-looking statements may be influenced by many factors, including but not limited to: general economic and market conditions in the countries in which we operate and globally; changes in currency and interest rates; increased funding costs and market volatility due to market illiquidity and competition for funding; the failure of third parties to comply with their obligations to the Bank and its affiliates, including relating to the care and control of information, and other risks arising from the Bank's use of third parties; changes in monetary, fiscal, or economic policy and tax legislation and interpretation; changes in laws and regulations or in supervisory expectations or requirements, including capital, interest rate and liquidity requirements and guidance, and the effect of such changes on funding costs; geopolitical risk (including the potential impact of new or elevated tariffs); changes to our credit ratings; the possible effects on our business and the global economy of war, conflicts or terrorist actions and unforeseen consequences arising from such actions; technological changes, including the use of data and artificial intelligence in our business, and technology resiliency; operational and infrastructure risks; reputational risks; the accuracy and completeness of information the Bank receives on customers and counterparties; the timely development and introduction of new products and services, and the extent to which products or services previously sold by the Bank require the Bank to incur liabilities or absorb losses not contemplated at their origination; our ability to execute our strategic plans, including the successful completion of acquisitions and dispositions, including obtaining regulatory approvals; critical accounting estimates and the effect of changes to accounting standards, rules and interpretations on these estimates; global capital markets activity; the Bank's ability to attract, develop and retain key executives; the evolution of various types of fraud or other criminal behaviour to which the Bank is exposed; anti-money laundering; disruptions or attacks (including cyberattacks) on the Bank's information technology, internet connectivity, network accessibility, or other voice or data communications systems or services, which may result in data breaches, unauthorized access to sensitive information, denial of service and potential incidents of identity theft; increased competition in the geographic and in business areas in which we operate, including through internet and mobile banking and non-traditional competitors; exposure related to significant litigation and regulatory matters; environmental, social and governance risks, including climate change, our ability to implement various sustainability-related initiatives (both internally and with our clients and other stakeholders) under expected time frames, and our ability to scale our sustainable-finance products and services; the occurrence of natural and unnatural catastrophic events and claims resulting from such events, including disruptions to public infrastructure, such as transportation, communications, power or water supply; inflationary pressures; global supply-chain disruptions; Canadian housing and household indebtedness; the emergence or continuation of widespread health emergencies or pandemics, including their impact on the global economy, financial market conditions and the Bank's business, results of operations, financial condition and prospects; and the Bank's anticipation of and success in managing the risks implied by the foregoing. A substantial amount of the Bank's business involves making loans or otherwise committing resources to specific companies, industries or countries. Unforeseen events affecting such borrowers, industries or countries could have a material adverse effect on the Bank's financial results, businesses, financial condition or liquidity. These and other factors may cause the Bank's actual performance to differ materially from that contemplated by forward-looking statements. The Bank cautions that the preceding list is not exhaustive of all possible risk factors and other factors could also adversely affect the Bank's results, for more information, please see the "Risk Management" section of the Bank's 2024 Annual Report, as may be updated by quarterly reports. Material economic assumptions underlying the forward-looking statements contained in this document are set out in the 2024 Annual Report under the headings "Outlook", as updated by quarterly reports. The "Outlook" and "2025 Priorities" sections are based on the Bank's views and the actual outcome is uncertain. Readers should consider the above-noted factors when reviewing these sections. When relying on forward-looking statements to make decisions with respect to the Bank and its securities, investors and others should carefully consider the preceding factors, other uncertainties and potential events. Any forward-looking statements contained in this document represent the views of management only as of the date hereof and are presented for the purpose of assisting the Bank's shareholders and analysts in understanding the Bank's financial position, objectives and priorities, and anticipated financial performance as at and for the periods ended on the dates presented, and may not be appropriate for other purposes. Except as required by law, the Bank does not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time by or on its behalf. Additional information relating to the Bank, including the Bank's Annual Information Form, can be located on the SEDAR+ website at and on the EDGAR section of the SEC's website at Shareholders Information Dividend and Share Purchase Plan Scotiabank's Shareholder Dividend and Share Purchase Plan allows common and preferred shareholders to purchase additional common shares by reinvesting their cash dividend without incurring brokerage or administrative fees. As well, eligible shareholders may invest up to $20,000 each fiscal year to purchase additional common shares of the Bank. All administrative costs of the plan are paid by the Bank. For more information on participation in the plan, please contact the transfer agent. Website The quarterly results conference call will take place on May 27, 2025, at 8:00 am ET and is expected to last approximately one hour. Interested parties are invited to access the call live, in listen-only mode, by telephone at 416-340-2217, or toll-free at 1-800-806-5484 using ID 5132667# (please call shortly before 8:00 am ET). In addition, an audio webcast, with accompanying slide presentation, may be accessed via the Investor Relations page at Following discussion of the results by Scotiabank executives, there will be a question and answer session. A telephone replay of the conference call will be available from May 27, 2025, to June 27, 2025, by calling 905-694-9451 or 1-800-408-3053 (North America toll-free) and entering the access code 1341186#. Additional Information Investors: Financial Analysts, Portfolio Managers and other Institutional Investors requiring financial information, please contact Investor Relations: Scotiabank 40 Temperance Street, Toronto, Ontario Canada M5H 0B4 Telephone: (416) 775-0798 E-mail: [email protected] Global Communications: Scotiabank 40 Temperance Street, Toronto, Ontario Canada M5H 0B4 E-mail: [email protected] Shareholders: For enquiries related to changes in share registration or address, dividend information, lost share certificates, estate transfers, or to advise of duplicate mailings, please contact the Bank's transfer agent: Computershare Trust Company of Canada 100 University Avenue, 8th Floor Toronto, Ontario, Canada M5J 2Y1 Telephone: 1-877-982-8767 E-mail: [email protected] Co-Transfer Agent (USA) Computershare Trust Company, N.A. Telephone: 1-781-575-2000 E-mail: [email protected] Street Courier/Address: C/O: Shareholder Services 150 Royall Street Canton, MA, USA 02021 Mailing Address: PO Box 43078, Providence, RI, USA 02940-3078 For other shareholder enquiries, please contact the Corporate Secretary's Department: Scotiabank 40 Temperance Street Toronto, Ontario, Canada M5H 0B4 Telephone: (416) 866-3672 E-mail: [email protected] Rapport trimestriel disponible en français Le rapport trimestriel et les états financiers de la Banque sont publiés en français et en anglais et distribués aux actionnaires dans la version de leur choix. Si vous préférez que la documentation vous concernant vous soit adressée en français, veuillez en informer Relations avec les investisseurs, La Banque de Nouvelle-Écosse, 40, rue Temperance, Toronto (Ontario), Canada M5H 0B4, en joignant, si possible, l'étiquette d'adresse, afin que nous puissions prendre note du changement.
Yahoo
14-05-2025
- Business
- Yahoo
AFRICA OIL ANNOUNCES FIRST QUARTER 2025 RESULTS AND DECLARES SECOND QUARTERLY DIVIDEND
VANCOUVER, BC, May 14, 2025 /CNW/ - (TSX: AOI) (Nasdaq-Stockholm: AOI) – Africa Oil Corp. ("Africa Oil", "AOC" or the "Company") today published its financial and operating results for the three months ended March 31, 2025, and is pleased to declare its second quarterly distribution of $25 million under its enlarged base dividend policy. View PDF version Africa Oil President and CEO, Roger Tucker commented: "During the first quarter, Africa Oil significantly transformed its scale and structure by completing the Prime amalgamation. This strategic move has doubled our reserves and high-quality, high-netback production and underpins our new enlarged shareholder returns policy. We are now poised for the Company's next phase of value creation by monetizing our world-class assets and delivering compelling shareholder returns, as we continue to grow into a leading independent E&P." Highlights* Closed the amalgamation transaction to take full control of Prime, doubling AOC's reserves and production, and implemented a new policy to effectively triple dividend per share. During Q1 2025 (presented as if the amalgamation had closed on January 1, 2025): During Q1 2025 with the amalgamation closing on March 19, 2025, recorded net income of $50.9 million ($0.11 per share5). Post end of Q1 2025: * All dollar amounts in this press release are U.S. Dollars unless otherwise indicated. 2025 First Quarter Results Highlights The Company completed the Prime amalgamation on March 19, 2025. The following table presents the highlights for Q1 2025. Three months ended Years ended AOC highlights(i,ii) Unit March 31, 2025 March 31, 2024 December 31, 2024Net income/ (loss) $'m 50.9 3.5 (279.1) Net income/ (loss) per share – basic $/ share 0.11(5) 0.01 (0.62)Net debt position(iii) $'m 191.6 285.9 289.1WI production(iii) boepd 33,400 34,200 34,000 Entitlement production(iii) boepd 37,700 40,200 38,800EBITDAX(iv) $'m 141.6 n/a n/aCash flow from operations(3 iv) $'m 99.8 n/a n/aFree Cash Flow(iv) $'m 121.6 n/a n/a i. This table includes non-GAAP measures (net debt, EBITDAX, cash flow from operations and free cash flow). Definitions and reconciliations to these non-GAAP measures are provided on pages 14-16 of the Report to Shareholders for the period ended March 31, 2025. ii. WI and entitlement production, EBITDAX, cash flow from operations and free cash flow from operations are presented for Q1 2025 as if the amalgamation had closed on January 1, 2025. iii. Net debt position and production numbers as presented for the comparative periods includes 100% of Prime to be comparable with March 31, 2025. iv. EBITDAX, cash flow from operations and free cash flow are reported for the year 2025 only as if the amalgamation had closed on January 1, 2025. Constructed Prime information for purposes of explaining performance Constructed Prime information to explain performance is included in the following tables to present on a consolidated basis net income for Q1 2025, and cash flow statement for Q1 2025 as if the amalgamation had closed on January 1, 2025, whereby the Africa Oil interim condensed consolidated statement of net income and comprehensive income and the Africa Oil interim condensed consolidated statement of cash flows for Q1 2025 are combined with the Prime statement of net income and comprehensive income and the Prime statement of cash flows for the period until March 19, 2025. Adjustments are included to conform Prime financial information with Africa Oil accounting policies and for any transactions between Africa Oil and Prime prior to amalgamation for the purpose of presenting constructed Prime information to explain performance. Interim condensed consolidated statement of net income For the three months endedAOC Q1 2025 per Financial Statements Prime for period from January 1, 2025, to March 19, 2025 Adjustments (i) March 31, 2025 Revenue76.4 323.5 - 399.9 Cost of Sales Production costs(51.2) (187.4) 2.0 (236.6)Depletion and decommissioning costs(12.1) (71.3) - (83.4)(63.3) (258.7) 2.0 (320.0) Gross profit13.1 64.8 2.0 79.9General and administrative expenses(13.5) (6.2) - (19.7) Operating (loss) / profit(0.4) 58.6 2.0 60.2Finance income1.1 2.4 - 3.5Finance expense(2.8) (21.3) - (24.1) Net financial items(1.7) (18.9) - (20.6)Share of profit from investment in joint venture15.9 - (15.9) -Share of loss from investments in associates(2.0) - - (2.0)Reversal of impairment of investment in joint venture42.9 - (42.9) - Profit before tax54.7 39.7 (56.8) 37.6 Income tax(3.8) (7.9) - (11.7) Net income attributable to common shareholders 50.9 31.8 (56.8) 25.9i. Adjustments to remove items related to Prime as fully consolidated above. Interim condensed consolidated statement of cash flows For the three months endedAOC Q1 2025 per Financial Statements Prime for period from January 1, 2025, to March 19, 2025 Adjustments (i)March 31, 2025OperationsProfit before tax54.7 39.7 (56.8)37.6Adjustments as per financial statements(55.6) 59.0 58.862.2 Net cash (used) / generated in operating activities before working capital(0.9) 98.7 2.099.8Changes in working capital37.3 (25.7) -11.6 Net cash generated in operating activities36.4 73.0 2.0111.4 InvestingExpenditures on oil and gas properties(3.6) (22.6) (2.0)(28.2)Distribution received from joint venture60.0 - (60.0)-Distribution received from associates31.6 - -31.6Loan repaid by associated company4.5 - -4.5Interest income received0.9 2.2 -3.1Cash acquired from Prime consolidation (ii)380.4 - (381.3)(0.9) Net cash generated/ (used) in investing activities473.8 (20.4) (443.3)10.1FinancingRepayment RBL Facility(130.0) - -(130.0)Repayment of principal portion of lease commitments(0.1) - -(0.1)Dividends paid to shareholders- (120.0) 120.0-Repurchase of share capital(8.3) - -(8.3)Interest expense paid(4.9) (10.8) -(15.7) Net cash used in financing activities(143.3) (130.8) 120.0(154.1) Foreign exchange variation on cash and cash equivalents 0.1 - -0.1 Total cash flow 367.0 (78.2) (321.3)(32.5) Cash and cash equivalents, beginning of the period 61.4 399.5 -460.9 Cash and cash equivalents, end of the period 428.4 321.3 (321.3)428.4 i. Adjustments to remove items related to Prime as Prime fully consolidated above ii. Reflects impact of net cash movement on the level of BTG Pactual Holding S.à.r.l. Outlook Shareholder Returns The Company is pleased to announce that its Board has declared the distribution of the Company's second 2025 quarterly cash dividend of approximately $25.0 million or $0.0371 per share. This dividend will be payable on June 11, 2025, to shareholders of record at the close of business on May 26, 2025. This dividend qualifies as an 'eligible dividend' for Canadian income tax purposes. Dividends for shares traded on the Toronto Stock Exchange ("TSX") will be paid in Canadian dollars on June 11, 2025; however, all US and foreign shareholders will receive USD funds. Dividends for shares traded on Nasdaq Stockholm will be paid in Swedish Krona in accordance with Euroclear principles on June 16, 2025. To execute the payment of the dividend, a temporary administrative cross border transfer closure will be applied by Euroclear from May 22, 2025, up to and including May 26, 2025, during which period shares of the Company cannot be transferred between the TSX and Nasdaq Stockholm. Payment to shareholders who are not residents of Canada will be net of any Canadian withholding taxes that may be applicable. For further details, please visit: Future dividend declarations are subject to customary Board approval and consents. Nigeria The Company remains focused on working with its JV partners to sustain and enhance production through targeted drilling and optimisation initiatives on its three producing fields in deepwater Nigeria. At Egina, two producers were drilled in Q1 2025 with both expected to come onstream in Q2 2025. On Akpo, a well intervention and the drilling of one development well are planned for Q2 2025. A planned break to the rig campaign is planned from Q4 2025 to allow for interpretation of the available 4D seismic data and drilled well results to enable maturation of future infill drilling candidates. The Company's Nigerian portfolio includes infrastructure-led exploration assets that in case of commercial discovery success, could potentially present attractive short cycle, high return investment opportunities that would benefit from the existing facilities. One such opportunity, which is being progressed towards drilling is the Akpo Far East prospect with an unrisked, best estimate, gross field prospective resource volume of 143.6 MMboe. The targeted hydrocarbons are predicted to be light, high gas-oil ratio ("GOR") oil equivalent to those found in the Akpo field. If successful, initial production could be achieved from existing production manifolds with the potential to materially increase reserves on the Akpo Field. At Agbami, further planned maintenance including a full field shutdown in Q4 2025, is expected to support long-term performance with 4D seismic interpretation continuing in support of the upcoming drilling campaign. Rig and well long lead items contracting is underway, alongside the placement of orders for subsea trees, in preparation for the commencement of the infill drilling campaign in 2027. For Preowei, studies of the fast-track seismic data are continuing to further derisk the identified upside opportunities to enhance recoverable volumes. In parallel, the reengagement of the front-end engineering and design ("FEED") contractor is planned in order to carry out additional evaluation aimed at optimizing the Preowei engineering, procurement, construction and installation ("EPCI") phase costs. Namibia Orange Basin Appraisal and Exploration Campaign The Venus Field is expected to be the first development area in Block 2913B. The Venus development plan is for up to 40 subsea wells tied back to a floating production, storage and offloading ("FPSO") platform that can handle peak output of 160,000 barrels per day of oil. Key near-term project preparation and decision-making processes are: o Front-End Engineering Designs ("FEED"): Q2 – Q4 2025 o ESIA submission to authorities: Q4 2025 o Final Investment Decision ("FID") could be made during H1 2026 The latest exploration drilling campaign was completed on April 25, 2025, with the drilling rig demobilized. The Company expects the next drilling campaign to commence during Q4 2025 and notes that TotalEnergies has publicly identified Olympe-1X, on Block 2912, as a possible target for this campaign. South Africa Orange Basin, Block 3B/4B Following the granting of an Environmental Authorization for exploration activities (drilling of up to 5 exploration wells) by the Department of Mineral Resources and Energy for the Republic of South Africa on September 16, 2024, the legislative notification and appeals process continues to progress with the relevant regulatory agencies. The operator has stated that with the approval process progressing the current plan is to drill the first exploration well on Block 3B/4B in 2026 and has identified Nayla, a prospect that lies in the northwest of the license area as the potential drilling target. Equatorial Guinea, EG-18 and EG-31 The Company is in active dialogue with industry parties to attract farm in parties on both blocks, with the aspiration of completing the exercise by the end of Q3 2025. If the Company is successful in attracting farminee partner(s) for these blocks, subject to customary consents and approvals including governmental and regulatory permissions, the Company anticipates that newly formed JVs could plan for exploration drilling in late 2026 or during 2027. However, there is no guarantee the Company can secure farminee partners on acceptable terms and it does not intend to undertake exploration drilling on a sole risk basis if it is unsuccessful in its farm down campaign. Summary of 2025 Management Guidance and Actuals The Company's full-year 2025 Management Guidance is unchanged and is repeated here for completeness. These estimates are based on a 2025 average Brent price of $75.0 per barrel. At an average Brent price of $85.0 per barrel the mid-point of the cash flow from operations guidance range is estimated to increase by approximately 19%, and at an average of $65.0 per barrel the mid-point is estimated to decrease by approximately 12%.2025 Guidance Q1 2025 actuals WI production (boepd) (1) 28,000 – 33,000 33,400 Entitlement production (boepd) (2) 32,000 – 37,000 37,700 EBITDAX ($ million) (4) 500 - 600 141.6 Cash flow from operations ($ million) (3,4) 320 - 370 99.8 Capital investment ($ million) 150 - 190 28.2 Notes Aggregate oil equivalent production data comprised of light and medium crude oil and conventional natural gas production net to Prime's W.I. in Agbami, Akpo and Egina fields. These production rates only include sold gas volumes and not those volumes used for fuel, reinjected or flared. Entitlement production is calculated using the economic interest methodology and includes cost recovery oil, tax oil, royalty oil and profit oil and is different from working interest production that is calculated based on project volumes multiplied by Prime's effective working interest in each license. Cash flow from operations before working capital and interest payments. Non-GAAP measures. Definitions and reconciliations to these non-GAAP measures are provided on pages 14-16 of the Report to Shareholders for the period ended March 31, ,2025. Based on the Q1 2025 weighted average number of shares outstanding of 449,431,803. Management Conference Call Senior management will hold a conference call to discuss the results on Friday, May 16, 2025, at 09:00 (EST) / 14:00 (GMT) / 15:00 (CET). The conference call may be accessed by dial in or via webcast. Participants should use the following link to register for the live webcast: Participants can also join via telephone with the instructions available on the following link: Click on the call link and complete the online registration form. Upon registering you will receive the dial-in info and a unique PIN to join the call as well as an email confirmation with the details. About Africa Oil Africa Oil is a full-cycle Independent upstream oil and gas company with interests offshore Nigeria, Namibia, South Africa and Equatorial Guinea. Its main assets are producing and development assets in deepwater Nigeria operated by Majors. The Company holds a leading position in the Orange Basin including its effective interest in the Venus light oil project, offshore Namibia, and its direct interest in Block 3B/4B, offshore South Africa. The Company is listed on the Toronto Stock Exchange and on Nasdaq Stockholm under the symbol "AOI". Additional Information This information is information that Africa Oil is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 5:00 p.m. EST on May 14, 2024. Advisory Regarding Oil and Gas Information The terms boe (barrel of oil equivalent) is used throughout this press release. Such terms may be misleading, particularly if used in isolation. Production data are based on a conversion ratio of six thousand cubic feet per barrel (6 Mcf: 1bbl). This conversion ratio is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value. Petroleum references in this press release are to light and medium gravity crude oil and conventional natural gas in accordance with NI 51-101 and the COGE Handbook. Estimates of reserves in this press release were prepared using guidelines outlined in the Canadian Oil and Gas Evaluation Handbook and in accordance with National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities. The reserves estimates disclosed in this press release are estimates only and there is no guarantee that the estimated reserves will be recovered. Forward-Looking Information Certain statements and information contained herein constitute "forward-looking information" (within the meaning of applicable Canadian securities legislation), including statements related to: the enlarged base dividend distribution; the declaration of the $25 million quarterly dividend; schedules and costs of drilling activity including those offshore Namibia and Nigeria; the outcome and timing of exploration, appraisal and development activities including those offshore Namibia and Nigeria; the development of the Venus discovery; the ability of Africa Oil to secure farminee partners on acceptable terms in Equatorial Guinea; the ability of Africa Oil to deliver further growth or increased shareholder returns including by monetizing its assets; the ability of Africa Oil to grow into a leading independent E&P the continuing benefits from funded, high value growth opportunities, including the Venus oil project in the Orange Basin; expectations regarding free-cash flow; the ability of Africa Oil to influence its JV partners to sustain and enhance production in Nigeria; and statements regarding access to business opportunities in Africa Oil's regions of focus and unlocking new sources of growth capital. Such statements and information (together, "forward-looking statements") relate to future events or the Company's future performance, business prospects or opportunities. All statements other than statements of historical fact may be forward-looking statements. Statements concerning proven and probable reserves and resource estimates may also be deemed to constitute forward-looking statements and reflect conclusions that are based on certain assumptions that the reserves and resources can be economically exploited. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "seek", "anticipate", "plan", "continue", "estimate", "expect, "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar expressions) are not statements of historical fact and may be "forward-looking statements". Forward-looking statements involve known and unknown risks, ongoing uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements, including statements pertaining to performance of commodity hedges, uninsured risks, regulatory and fiscal changes, availability of materials and equipment, unanticipated environmental impacts on operations, duration of the drilling program, availability of third party service providers and defects in title, the sustainability of Africa Oil across oil and gas price cycles, the enhanced visibility and certainty over the use of capital, and statements regarding capital priorities. Forward-looking statements are based on a number of assumptions, including but not limited to, the ability of Africa Oil to delivery further growth, the ability to have a Board comprised at all times of a majority of independent non-executive directors, high value growth opportunities will continue to be funded, and the ability to access business opportunities in Africa Oil's regions of focus. No assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. The Company does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by applicable laws. These forward-looking statements involve risks and uncertainties relating to, among other things, changes in macro-economic conditions and their impact on operations, changes in oil prices, reservoir and production facility performance, contractual performance, results of exploration and development activities, cost overruns, uninsured risks, regulatory and fiscal changes including defects in title, claims and legal proceedings, availability of materials and equipment, availability of skilled personnel, the need to obtain required approvals from regulatory authorities, timeliness of government or other regulatory approvals, actual performance of facilities, joint venture partner underperformance, availability of financing on reasonable terms, availability of third party service providers, equipment and processes relative to specifications and expectations and unanticipated environmental, health and safety impacts on operations, satisfaction of the conditions to consummate the Proposed Reorganization; failure to complete the Proposed Reorganization; the amount of costs, fees, expenses and charges related to the Proposed Reorganization; and the failure to realize the anticipated benefits of the Proposed Reorganization. Actual results may differ materially from those expressed or implied by such forward-looking statements. SOURCE Africa Oil Corp. View original content to download multimedia: Sign in to access your portfolio
Yahoo
05-02-2025
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Great-West Lifeco reports record fourth quarter and full year 2024 base earnings; announces dividend increase of 10% and plans for further NCIB share purchases
Great-West Lifeco Inc.'s Quarterly Report to Shareholders for the fourth quarter of 2024, including its Management's Discussion and Analysis (MD&A) and annual consolidated financial statements for the three and twelve months ended December 31, 2024, are available at and Readers are referred to the Basis of presentation, Cautionary note regarding Forward-Looking Information and Cautionary note regarding Non-GAAP Financial Measures and Ratios sections at the end of this release for additional information on figures are expressed in millions of Canadian dollars, unless otherwise noted. Base earnings of $1.1 billion, or $1.20 per share, up 15% from Q4 2023; full year base earnings of $4.2 billion, or $4.50 per share, up 14% from 2023 Net earnings from continuing operations of $1.1 billion, or $1.20 per share, up 50% from Q4 2023; full year net earnings from continuing operations of $4.0 billion, or $4.30 per share, up 40% from 2023 Base ROE of 17.5% and ROE from continuing operations of 16.7% LICAT ratio increased two points in 2024 to 130% Book value per share of $27.17, up 12% year over year Quarterly dividend increase of 10% to $0.61 per common share Intention to purchase additional $500 million of common shares under existing Normal Course Issuer Bid1 WINNIPEG, MB, Feb. 5, 2025 /CNW/ - Great-West Lifeco Inc. (Lifeco or the Company) today announced its fourth quarter 2024 results. "Great-West Lifeco delivered record results in 2024, with strong momentum across segments, positioning the Company for continued growth in 2025 and beyond. The strength of the Company's earnings momentum and the value created for shareholders is reflected in the 10% increase in the Company's dividend and our intention to repurchase additional common shares," said Paul Mahon, President and CEO, Great-West Lifeco. "These results reflect our unrelenting focus to deliver on our growth strategies which has enabled us to exceed our medium-term financial objectives2. We have diversified businesses in several countries and a record of managing through volatility. We are well positioned to weather adverse economic impacts that may result from operating in a world experiencing heightened uncertainty. Our disciplined approach to managing the business continues to bolster our capital strength and provides us with significant financial flexibility to continue to drive value creation while managing risk." Key Financial Highlights In-Quarter Full Year Earnings Q4 2024 Q3 2024 Q4 2023 2024 2023 Base earnings3 $1,115 $1,061 $971$4,192 $3,667 Net earnings from continuing operations $1,116 $859 $743$4,011 $2,862 Net earnings $1,116 $859 $740$3,940 $2,738 Earnings per share Base EPS4 $1.20 $1.14 $1.04$4.50 $3.94 Net EPS from continuing operations $1.20 $0.92 $0.80$4.30 $3.07 Net EPS $1.20 $0.92 $0.79$4.23 $2.94 Return on Equity Base ROE4,5 17.5 % 17.3 % 16.6 % ROE – continuing operations5 16.7 % 15.6 % 12.9 % 1 This is in addition to the purchases we make to offset dilution under our share compensation plans. This is subject to market conditions, our ability to effect the purchases on a prudent basis, and other strategic opportunities emerging. 2 Medium Term Objectives are defined in the Company's 2024 Annual Management's Discussion and Analysis (MD&A). 3 This is a non-GAAP financial measure. Refer to the "Non-GAAP Financial Measures and Ratios" section of this document for additional details. 4 Base EPS and base return on equity are non-GAAP ratios. Refer to the "Non-GAAP Financial Measures and Ratios" section of this document for additional details. 5 Base return on equity and return on equity – continuing operations are calculated using the trailing four quarters of applicable earnings and common shareholders' equity. Record base earnings3 of $1,115 million or $1.20 per common share in the fourth quarter, up 15% from $971 million a year ago. The fourth quarter of 2024 was the third consecutive quarter that Lifeco reported record base earnings over $1 billion. The fourth quarter results mainly reflect higher net fee and spread income from all segments from growth in the business and higher equity markets, partially offset by the impact of the Global Minimum Tax (GMT) in the Capital and Risk Solutions and Europe segments. Additionally, base earnings growth was driven by organic growth in Workplace Solutions in the Canada segment and higher contractual service margin (CSM) recognized in the Europe segment. These items were partially offset by lower individual insurance experience and lower earnings on surplus in the Canada segment and favourable property catastrophe impacts in 2023 that did not repeat in the Capital and Risk Solutions segment. Net earnings from continuing operations of $1,116 million or $1.20 per common share in the fourth quarter, compared to $743 million a year ago reflects higher base earnings, favourable market experience relative to expectations, and net favourable impacts of risk-free rate movements. Highlights Record base earnings for the sixth consecutive quarter: Focused strategy to reposition portfolio with increased emphasis on meeting the wealth and retirement needs of customers continues to drive growth across the business. U.S. segment the largest segment by base earnings, driven by record results and strong value-creating performance at Empower: Disciplined approach to managing business remains a core attribute contributing to the strength and stability of the Company's long-term performance: 6 This is a non-GAAP financial measure. Refer to the "Non-GAAP Financial Measures and Ratios" section of this document for additional details. 7 Includes Investment Planning Counsel (IPC) and Value Partners acquisitions. 8 An indicator of the Company's ability to attract and retain business and includes cash flows related to segregated funds and proprietary and non-proprietary mutual funds. 9 This estimated maximum loss is based on our contract terms and current public reports regarding the fires. The actual impact will be dependent on a number of factors, many of which are still to be determined, including total insured losses and whether the wildfires are considered more than a single loss event. The Company will continue to assess the impact as more information is available and any provision will be determined as part of the Company's 2025 financial results. SEGMENTED OPERATING RESULTS For reporting purposes, Lifeco's consolidated operating results are grouped into five reportable segments – Canada, United States, Europe, Capital and Risk Solutions and Lifeco Corporate – reflecting the management and corporate structure of the Company. For more information, refer to the Company's 2024 Annual Management's Discussion and Analysis (MD&A).In-Quarter Full YearQ4 2024 Q3 2024 Q4 2023 2024 2023 Segment base earnings10Canada $321 $317 $301 $1,262 $1,158 United States 367 359 261 1,336 1,006 Europe 231 195 213 829 777 Capital and Risk Solutions 223 210 236 818 794 Lifeco Corporate (27) (20) (40) (53) (68) Total base earnings10 $1,115 $1,061 $971 $4,192 $3,667 Segment net earnings from continuing operationsCanada $336 $460 $166 $1,484 $961 United States 304 307 194 1,118 769 Europe 310 115 217 813 384 Capital and Risk Solutions 194 9 215 618 833 Lifeco Corporate (28) (32) (49) (22) (85) Total net earnings from continuing operations $1,116 $859 $743 $4,011 $2,862 Net earnings (loss) from discontinued operations - - (3) (115) (124) Net gain on disposal of discontinued operations - - - 44 - Total net earnings $1,116 $859 $740 $3,940 $2,738 10 This is a non-GAAP financial measure. Refer to the "Non-GAAP Financial Measures and Ratios" section of this document for additional details. CANADA Q4 Canada segment base earnings of $321 million and net earnings of $336 million – Base earnings of $321 million increased by $20 million, or 7%, compared to the same quarter last year, primarily due to higher net fee and spread income from the addition of IPC and Value Partners and favourable market impacts, organic growth of in-force block earnings in Workplace Solutions, and strong Workplace Solutions health experience driven by pricing actions. These items were partially offset by lower individual insurance health experience and lower earnings on surplus. UNITED STATES Q4 United States segment base earnings of US$262 million ($367 million) and net earnings from continuing operations of US$216 million ($304 million) – Base earnings of US$262 million increased by US$69 million, or 36%, compared to the fourth quarter of 2023, primarily due to a significant increase in fee income driven by growth in the business and higher equity markets, as well as lower credit impacts on commercial mortgage loans. This increase was partially offset by higher crediting rates and higher growth related operating expenses in the current year. EUROPE Q4 Europe segment base earnings of $231 million and net earnings of $310 million – Base earnings of $231 million increased by $18 million, or 8%, compared to the same quarter last year, primarily due to fee income growth in Ireland driven by strong flows and markets, higher CSM recognized and higher trading gains in the U.K. These items were partially offset by less favourable group protection experience in the U.K., and less favourable health experience in Ireland. CAPITAL AND RISK SOLUTIONS Q4 Capital and Risk Solutions segment base earnings of $223 million and net earnings of $194 million – Base earnings of $223 million decreased by $13 million, or 6%, compared to the same quarter last year, as business growth, favourable claims experience in the U.S. life business and higher earnings on surplus were offset by the impact of the GMT and favourable property catastrophe claims experience in 2023 which did not recur. QUARTERLY DIVIDENDS The Board of Directors approved a quarterly dividend of $0.61 per share on the common shares of Lifeco, an increase of $0.055 per share, payable March 31, 2025, to shareholders of record at the close of business March 3, 2025. In addition, the Directors approved quarterly dividends on Lifeco's preferred shares, as follows: First Preferred Shares Amount, per share Series G $0.3250 Series H $0.30313 Series I $0.28125 Series L $0.353125 Series M $0.3625 Series N $0.109313 Series P $0.3375 Series Q $0.321875 Series R $0.3000 Series S $0.328125 Series T $0.321875 Series Y $0.28125 For purposes of the Income Tax Act (Canada), and any similar provincial legislation, the dividends referred to above are eligible dividends. NCIB Share Purchases The Company intends to purchase $500 million under our current NCIB, in addition to the purchases made to offset dilution under its share compensation plans. This is subject to market conditions, the Company's ability to effect the purchases on a prudent basis, and other strategic opportunities emerging. Fourth Quarter Conference Call Lifeco's fourth quarter conference call and audio webcast will be held on Thursday, February 6, 2025 at 8 a.m. ET. The live webcast of the call will be available at 4th Quarter 2024 – Conference Call and Webcast or by calling 1-844-763-8274 (toll-free) or 1-647-484-8814 for International participants. A replay of the call will be available following the event on our website or by calling 1-855-669-9658 (Canada toll-free) or 1-412-317-0022 (U.S. toll-free) and using the access code 5558187. Selected financial information is attached. GREAT-WEST LIFECO Lifeco is a financial services holding company focused on building stronger, more inclusive and financially secure futures. We operate in Canada, the United States and Europe under the brands Canada Life, Empower and Irish Life. Together we provide wealth, retirement, workplace benefits and insurance and risk solutions to our over 40 million customer relationships. As of December 31, 2024, Great-West Lifeco's assets under administration exceeded $3.2 trillion. Great-West Lifeco trades on the Toronto Stock Exchange (TSX) under the ticker symbol GWO and is a member of the Power Corporation group of companies. To learn more, visit Basis of presentation The annual consolidated financial statements for the periods ended December 31, 2024 of Lifeco, have been prepared in accordance with International Financial Reporting Standards (IFRS) unless otherwise noted and are the basis for the figures presented in this release, unless otherwise noted. Cautionary note regarding Forward-Looking Information This release contains forward-looking information. Forward-looking information includes statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as "will", "may", "expects", "anticipates", "intends", "plans", "believes", "estimates", "objective", "target", "potential" and other similar expressions or negative versions thereof. Forward-looking information includes, without limitation, statements about the Company and its operations, business (including business mix), financial condition, expected financial performance (including revenues, earnings or growth rates, medium-term financial objectives and base earnings objectives for the Empower business), expected earnings contribution of the Company's U.S. segment, strategies and prospects, expected costs and benefits of acquisitions and divestitures (including timing of integration activities and timing and extent of revenue and expense synergies), expected expenditures or investments (including but not limited to investment in technology infrastructure and digital capabilities and solutions and investments in strategic partnerships), value creation and realization of growth opportunities, product and service innovation, expected dividend levels, expected cost reductions and savings, expected capital management activities and use of capital, market position, estimates of risk sensitivities affecting capital adequacy ratios, anticipated global economic conditions, potential impacts of catastrophe events, potential impacts of geopolitical events and conflicts, and the impact of regulatory developments on the Company's business strategy, growth objectives, and capital. Forward-looking statements are based on expectations, forecasts, estimates, predictions, projections and conclusions about future events that were current at the time of the statements and are inherently subject to, among other things, risks, uncertainties and assumptions about the Company, economic factors and the financial services industry generally, including the insurance, mutual fund and retirement solutions industries. They are not guarantees of future performance, and the reader is cautioned that actual events and results could differ materially from those expressed or implied by forward-looking statements. Many of these assumptions are based on factors and events that are not within the control of the Company and there is no assurance that they will prove to be correct. In arriving at our assessment of the Company's potential exposure to Global Minimum Tax and our expectation regarding the impact on our effective income tax rate and base earnings, management has relied on its interpretation of the relevant legislation. It has also assumed a starting point of its current mix of business and base earnings growth consistent with management's base earnings objectives disclosed in the Company's 2024 Annual MD&A. With respect to possible share repurchases, the amount and timing of actual repurchases will depend on the earnings, cash requirements and financial condition of the Company, market conditions, our ability to effect the repurchases on a prudent basis, capital requirements, applicable law and regulations (including applicable securities laws), and other factors deemed relevant by the Company, and may be subject to regulatory approval or conditions. In all cases, whether or not actual results differ from forward-looking information may depend on numerous factors, developments and assumptions, including, without limitation, the ability to integrate and leverage acquisitions and achieve anticipated benefits and synergies, the achievement of expense synergies and client retention targets from the acquisition of the Prudential retirement business, the Company's ability to execute strategic plans and adapt or recalibrate these plans as needed, the Company's reputation, business competition, assumptions around sales, pricing, fee rates, customer behaviour (including contributions, redemptions, withdrawals and lapse rates), mortality and morbidity experience, expense levels, reinsurance arrangements, global equity and capital markets (including continued access to equity and debt markets and credit instruments on economically feasible terms), geopolitical tensions and related economic impacts, interest and foreign exchange rates, inflation levels, liquidity requirements, investment values and asset breakdowns, hedging activities, financial condition of industry sectors and individual issuers that comprise part of the Company's investment portfolio, credit ratings, taxes, impairments of goodwill and other intangible assets, technological changes, breaches or failure of information systems and security (including cyber attacks), assumptions around third-party suppliers, changes in local and international laws and regulations, changes in accounting policies and the effect of applying future accounting policy changes, changes in actuarial standards, unexpected judicial or regulatory proceedings, catastrophic events, continuity and availability of personnel and third party service providers, unplanned changes to the Company's facilities, customer and employee relations, levels of administrative and operational efficiencies, and other general economic, political and market factors in North America and internationally. The reader is cautioned that the foregoing list of assumptions and factors is not exhaustive, and there may be other factors listed in other filings with securities regulators, including factors set out in the Company's 2024 Annual MD&A under "Risk Management and Control Practices" and "Summary of Critical Accounting Estimates" and in the Company's annual information form dated February 5, 2025 under "Risk Factors", which, along with other filings, is available for review at The reader is also cautioned to consider these and other factors, uncertainties and potential events carefully and not to place undue reliance on forward-looking information. Other than as specifically required by applicable law, the Company does not intend to update any forward-looking information whether as a result of new information, future events or otherwise. Cautionary note regarding Non-GAAP Financial Measures and Ratios This release contains some non-Generally Accepted Accounting Principles (GAAP) financial measures and non-GAAP ratios as defined in National Instrument 52-112 "Non-GAAP and Other Financial Measures Disclosure". Terms by which non-GAAP financial measures are identified include, but are not limited to, "base earnings (loss)", "base earnings (loss) (US$)", "base earnings: insurance service result", "base earnings: net investment result", "assets under management" and "assets under administration". Terms by which non-GAAP ratios are identified include, but are not limited to, "base earnings per common share (EPS)", "base return on equity (ROE)", "base dividend payout ratio" and "effective income tax rate – base earnings – common shareholders". Non-GAAP financial measures and ratios are used to provide management and investors with additional measures of performance to help assess results where no comparable GAAP (IFRS) measure exists. However, non-GAAP financial measures and ratios do not have standard meanings prescribed by GAAP (IFRS) and are not directly comparable to similar measures used by other companies. Refer to the "Non-GAAP Financial Measures and Ratios" section in this release for the appropriate reconciliations of these non-GAAP financial measures to measures prescribed by GAAP as well as additional details on each measure and ratio. FINANCIAL HIGHLIGHTS (unaudited)(in Canadian $ millions, except per share amounts) Selected consolidated financial informationAs at or for the three months endedFor the twelve months ended Dec. 312024 Sept. 30 2024 Dec. 31 2023 Dec. 312024 Dec. 31 2023 Base earnings1 $ 1,115 $ 1,061 $ 971$ 4,192 $ 3,667Net earnings from continuing operations2 1,116 859 7434,011 2,862Net earnings - common shareholders 1,116 859 7403,940 2,738Per common share Basic: Base earnings3 1.20 1.14 1.044.50 3.94 Net earnings from continuing operations 1.20 0.92 0.804.30 3.07 Net earnings 1.20 0.92 0.794.23 2.94 Dividends paid 0.555 0.555 0.5202.220 2.080Base dividend payout ratio3 46.3 % 48.7 % 50.0 %49.3 % 52.8 %Dividend payout ratio2 46.3 % 60.3 % 65.6 %52.5 % 70.7 %Book value per common share2 27.17 25.78 24.26 Base return on equity3 17.5 % 17.3 % 16.6 % Return on equity - continuing operations2,4 16.7 % 15.6 % 12.9 % Financial leverage ratio5 29 % 29 % 30 % Total assets per financial statements $ 802,163 $ 779,741 $ 713,230 Total assets under management1 1,039,405 1,004,183 1,095,374 Total assets under administration1 3,266,298 3,110,284 2,852,540 Total contractual service margin (net of reinsurance contracts held) $ 13,368 $ 13,517 $ 12,635 Total equity $ 32,654 $ 31,311 $ 29,851 Canada Life Assurance Company consolidated LICAT Ratio6 130 % 134 % 128 % 1 This metric is a non-GAAP financial measure. Refer to the "Non-GAAP Financial Measures and Ratios" section of this document for additional details. 2 Refer to the "Glossary" section of the Company's 2024 Annual MD&A for additional details on the composition of this measure. 3 This metric is a non-GAAP ratio. Refer to the "Non-GAAP Financial Measures and Ratios" section of this document for additional details. 4 Comparative result for the period ended December 31, 2023 has been restated to exclude amounts related to discontinued operations which were included in error in the Q4 2023 MD&A. 5 The calculation for financial leverage ratio includes the after-tax non-participating contractual service margin (CSM) balance in the denominator, excluding CSM associated with segregated fund guarantees. This reflects that the CSM represents future profit and is considered available capital under LICAT. These ratios are estimates based on available data. 6 The Life Insurance Capital Adequacy Test (LICAT) Ratio is based on the consolidated results of The Canada Life Assurance Company, Lifeco's major Canadian operating subsidiary. The LICAT Ratio is calculated in accordance with the Office of Superintendent of Financial Institutions' guideline - Life Insurance Capital Adequacy Test. Refer to the "Capital Management and Adequacy" section of the Company's 2024 Annual MD&A for additional details. BASE AND NET EARNINGS Consolidated base earnings and net earnings of Lifeco include the base earnings and net earnings of Canada Life (and its operating subsidiaries), Empower and PanAgora Asset Management, together with Lifeco's Corporate operating results. Net earnings also include the earnings from Putnam Investments reported as discontinued operations. For a further description of base earnings, refer to the "Non-GAAP Financial Measures and Ratios" section of this document and the Company's 2024 Annual Management's Discussion and Analysis. Base earnings1 and net earnings - common shareholders by segment For the three months endedFor the twelve months endedDec. 312024 Sept. 30 2024 Dec. 31 2023 Dec. 312024 Dec. 31 2023 Base earnings (loss)1 Canada $ 321 $ 317 $ 301$ 1,262 $ 1,158 United States 367 359 2611,336 1,006 Europe 231 195 213829 777 Capital and Risk Solutions 223 210 236818 794 Lifeco Corporate (27) (20) (40)(53) (68) Lifeco base earnings1 $ 1,115 $ 1,061 $ 971$ 4,192 $ 3,667Items excluded from base earnings Market experience relative to expectations2 $ 38 $ 41 $ (213)$ 214 $ (307) Realized OCI gains / (losses) from asset rebalancing — — —— (121) Assumption changes and management actions2 16 (203) 83(149) (20) Other non-market related impacts3 (53) (40) (98)(246) (357) Items excluded from Lifeco base earnings $ 1 $ (202) $ (228)$ (181) $ (805)Net earnings (loss) from continuing operations2 Canada $ 336 $ 460 $ 166$ 1,484 $ 961 United States 304 307 1941,118 769 Europe 310 115 217813 384 Capital and Risk Solutions 194 9 215618 833 Lifeco Corporate (28) (32) (49)(22) (85) Lifeco net earnings from continuing operations2 $ 1,116 $ 859 $ 743$ 4,011 $ 2,862 Net earnings (loss) from discontinued operations — — (3)(115) (124) Net gain from disposal of discontinued operations — — —44 — Lifeco net earnings - common shareholders $ 1,116 $ 859 $ 740$ 3,940 $ 2,738 1 This metric is a non-GAAP financial measure. Refer to the "Non-GAAP Financial Measures and Ratios" section of this document for additional details. 2 Refer to the "Glossary" section of the Company's 2024 Annual MD&A for additional details on the composition of this measure. 3 Included in other non-market related impacts are business transformation impacts (including restructuring and integration costs as well as acquisition and divestiture costs), amortization of acquisition-related intangible assets and tax legislative changes and other tax impacts. NON-GAAP FINANCIAL MEASURES AND RATIOS Non-GAAP Financial Measures The Company uses several non-GAAP financial measures to measure overall performance of the Company and to assess each of its business units. A financial measure is considered a non-GAAP measure for Canadian securities law purposes if it is presented other than in accordance with generally accepted accounting principles (GAAP) used for the Company's consolidated financial statements. The consolidated financial statements of the Company have been prepared in compliance with IFRS as issued by the IASB. Non-GAAP financial measures do not have a standardized meaning under GAAP and may not be comparable to similar financial measures presented by other issuers. Investors may find these financial measures useful in understanding how management views the underlying business performance of the Company. Base earnings (loss) Base earnings (loss) reflect management's view of the underlying business performance of the Company and provides an alternate measure to understand the underlying business performance compared to IFRS net earnings. Base earnings (loss) exclude the following items from IFRS reported net earnings: Market-related impacts, where actual market returns in the current period are different than longer-term expected returns; Assumption changes and management actions that impact the measurement of assets and liabilities; Business transformation impacts which include acquisition and divestiture costs and restructuring and integration costs; Material legal settlements, material impairment charges related to goodwill and intangible assets, impacts of income tax rate changes on the remeasurement of deferred tax assets and liabilities and other tax impairments, net gains, losses or costs related to the disposition or acquisition of a business; net earnings (loss) from discontinued operations; Realized gains (losses) on the sale of assets measured at fair value through other comprehensive income (FVOCI); The direct equity and interest rate impacts on the measurement of surplus assets and liabilities; Amortization of acquisition related finite life intangible assets; and Other items that, when removed, assist in explaining the Company's underlying business performance. Lifeco For the three months endedFor the twelve months ended Dec. 312024 Sept. 302024 Dec. 312023 Dec. 312024 Dec. 312023 Base earnings $ 1,115 $ 1,061 $ 971$ 4,192 $ 3,667Items excluded from Lifeco base earningsMarket experience relative to expectations (pre- tax) $ 59 $ 46 $ (351)$ 286 $ (461)Income tax (expense) benefit (21) (5) 138(72) 154Realized OCI gains / (losses) from asset rebalancing (pre-tax) — — —— (158)Income tax (expense) benefit — — —— 37Assumption changes and management actions (pre-tax) 21 (235) (28)(209) (149)Income tax (expense) benefit (5) 32 11160 129Business transformation impacts (pre-tax)1 (34) (7) (137)(144) (340)Income tax (expense) benefit1 4 3 7032 118Amortization of acquisition-related finite life intangibles (pre-tax)1 (51) (47) (42)(200) (182)Income tax (expense) benefit1 14 11 1152 47Tax legislative changes and other tax impacts (pre-tax)1 — — —— —Income tax (expense) benefit1 14 — —14 —Total pre-tax items excluded from base earnings $ (5) $ (243) $ (558)$ (267) $ (1,290)Impact of items excluded from base earnings on income taxes 6 41 33086 485Net earnings from continuing operations $ 1,116 $ 859 $ 743$ 4,011 $ 2,862Net earnings (loss) from discontinued operations (post-tax) — — (3)(115) (124)Net gain from disposal of discontinued operations (post-tax) — — —44 —Net earnings - common shareholders $ 1,116 $ 859 $ 740$ 3,940 $ 2,7381 Included in other non-market related impacts. Canada For the three months endedFor the twelve months ended Dec. 312024 Sept. 30 2024 Dec. 31 2023 Dec. 312024 Dec. 31 2023 Base earnings $ 321 $ 317 $ 301$ 1,262 $ 1,158Items excluded from base earningsMarket experience relative to expectations (pre- tax) $ 16 $ 58 $ (162)$ 202 $ (197)Income tax (expense) benefit (7) (15) 48(58) 58Assumption changes and management actions (pre-tax) — 147 (22)157 (52)Income tax (expense) benefit — (41) 5(44) 14Business transformation impacts (pre-tax)1 (5) (4) (5)(41) (9)Income tax (expense) benefit1 1 1 210 3Amortization of acquisition-related finite life intangibles (pre-tax)1 (6) (4) (2)(25) (20)Income tax (expense) benefit1 2 1 17 6Tax legislative changes and other tax impacts (pre-tax)1 — — —— —Income tax (expense) benefit1 14 — —14 —Net earnings - common shareholders $ 336 $ 460 $ 166$ 1,484 $ 9611 Included in other non-market related impacts. United States For the three months endedFor the twelve months ended Dec. 312024 Sept. 30 2024 Dec. 31 2023 Dec. 312024 Dec. 312023 Base earnings $ 367 $ 359 $ 261$ 1,336 $ 1,006Items excluded from base earningsMarket experience relative to expectations (pre- tax) $ 13 $ (1) $ (13)$ 19 $ 5Income tax (expense) benefit (4) — 4(5) (1)Assumption changes and management actions (pre-tax) — (29) —(29) —Income tax (expense) benefit — 6 —6 —Business transformation impacts (pre-tax)1 (52) (2) (52)(125) (191)Income tax (expense) benefit1 9 1 2027 54Amortization of acquisition-related finite life intangibles (pre-tax)1 (39) (36) (35)(151) (140)Income tax (expense) benefit1 10 9 940 36Net earnings from continuing operations $ 304 $ 307 $ 194$ 1,118 $ 769Net earnings (loss) from discontinued operations (post-tax) — — (3)(115) (124)Net gain from disposal of discontinued operations (post-tax) — — —44 —Net earnings - common shareholders $ 304 $ 307 $ 191$ 1,047 $ 6451 Included in other non-market related impacts. Europe For the three months endedFor the twelve months ended Dec. 312024 Sept. 30 2024 Dec. 31 2023 Dec. 312024 Dec. 31 2023 Base earnings $ 231 $ 195 $ 213$ 829 $ 777Items excluded from base earningsMarket experience relative to expectations (pre- tax) $ 55 $ (30) $ (114)$ 23 $ (321)Income tax (expense) benefit (9) 7 54(4) 78Realized OCI gains / (losses) from asset rebalancing (pre-tax) — — —— (158)Income tax (expense) benefit — — —— 37Assumption changes and management actions (pre-tax) 26 (69) (6)(45) (46)Income tax (expense) benefit (6) 18 10612 113Business transformation impacts (pre-tax)1 23 (1) (80)22 (140)Income tax (expense) benefit1 (6) 1 48(5) 61Amortization of acquisition-related finite life intangibles (pre-tax)1 (6) (7) (5)(24) (22)Income tax (expense) benefit1 2 1 15 5Net earnings - common shareholders $ 310 $ 115 $ 217$ 813 $ 3841 Included in other non-market related impacts. Capital and Risk Solutions For the three months endedFor the twelve months ended Dec. 312024 Sept. 30 2024 Dec. 31 2023 Dec. 312024 Dec. 31 2023 Base earnings $ 223 $ 210 $ 236$ 818 $ 794Items excluded from base earningsMarket experience relative to expectations (pre- tax) $ (23) $ 34 $ (50)$ 54 $ 75Income tax (expense) benefit (2) — 29(8) 13Assumption changes and management actions (pre-tax) (5) (284) —(296) (51)Income tax (expense) benefit 1 49 —50 2Net earnings - common shareholders $ 194 $ 9 $ 215$ 618 $ 833 Lifeco Corporate For the three months endedFor the twelve months ended Dec. 312024 Sept. 30 2024 Dec. 31 2023 Dec. 312024 Dec. 31 2023 Base earnings (loss) $ (27) $ (20) $ (40)$ (53) $ (68)Items excluded from base earnings (loss)Market experience relative to expectations (pre- tax) $ (2) $ (15) $ (12)$ (12) $ (23)Income tax (expense) benefit 1 3 33 6Assumption changes and management actions (pre-tax) — — —4 —Income tax (expense) benefit — — —36 —Net earnings (loss) - common shareholders $ (28) $ (32) $ (49)$ (22) $ (85)Assets under management (AUM) and assets under administration (AUA) Assets under management and assets under administration are non-GAAP measures that provide an indicator of the size and volume of the Company's overall business. Administrative services are an important aspect of the overall business of the Company and should be considered when comparing volumes, size and trends. Total assets under administration includes total assets per financial statements, proprietary mutual funds and institutional assets and other assets under administration. LifecoDec. 312024 Sept. 302024 Dec. 31 2023 Total assets per financial statements1 $ 802,163 $ 779,741 $ 713,230Continuing operations - other AUM 237,242 224,442 220,578Discontinued operations - other AUM — — 161,566Total AUM1 $ 1,039,405 $ 1,004,183 $ 1,095,374Other AUA 2,226,893 2,106,101 1,757,166Total AUA1 $ 3,266,298 $ 3,110,284 $ 2,852,5401 Comparative figures include assets held for sale and other AUM related to the discontinued operations of Putnam Investments. NON-GAAP RATIOS A non-GAAP ratio is a financial measure in the form of a ratio, fraction, percentage or similar representation that is not disclosed in the financial statements of the Company and has a non-GAAP financial measure as one or more of its components. These financial measures do not have a standardized definition under IFRS and might not be comparable to similar financial measures disclosed by other issuers. The non-GAAP ratios disclosed by the Company each use base earnings (loss) as the non-GAAP component. Base earnings (loss) reflect management's view of the underlying business performance of the Company and provides an alternate measure to understand the underlying business performance compared to IFRS net earnings. Base dividend payout ratio - Dividends paid to common shareholders are divided by base earnings (loss). Base earnings per share - Base earnings (loss) for the period is divided by the number of average common shares outstanding for the period. Base return on equity - Base earnings (loss) for the trailing four quarters are divided by the average common shareholders' equity over the trailing four quarters. This measure provides an indicator of business unit profitability. SOURCE Great-West Lifeco Inc. View original content to download multimedia:
