Power Financial posts Q1 earnings of $407 million

Power Financial Corporation today reported Q1 earnings results.

Operating earnings attributable to common shareholders, a non-IFRS financial measure, for the quarter ended March 31, 2013 were $407 million or $0.57 per share, compared with $371 million or $0.52 per share in the corresponding period in 2012, an increase of 9.5% on a per share basis.

Other items, not included in operating earnings, for the first quarter of 2013 resulted in a net charge of $13 million, compared with a contribution of $83 million in the corresponding quarter of 2012.

Net earnings attributable to common shareholders for the quarter ended March 31, 2013 were $394 million or $0.55 per share, compared with $454 million or $0.64 per share in the corresponding quarter of 2012.

Great-West Lifeco Inc.

For the quarter ended March 31, 2013, Great-West Lifeco Inc. (Lifeco) reported operating and net earnings attributable to common shareholders of $517 million or $0.544 per share, compared with $449 million or $0.474 per share in the corresponding period of 2012.

As at March 31, 2013, Power Financial and IGM Financial Inc. (IGM) held 68.1% and 4.0%, respectively, of Lifeco’s common shares. Lifeco’s contribution to Power Financial’s operating earnings was $353 million for the quarter ended March 31, 2013, compared with $306 million in the same period in 2012.

IGM Financial Inc.

For the quarter ended March 31, 2013, IGM reported operating and net earnings available to common shareholders of $181 million or $0.72 per share, compared with $199 million or $0.77 per share in the same period in 2012.

As at March 31, 2013, Power Financial and The Great-West Life Assurance Company, a subsidiary of Lifeco, held 58.7% and 3.7%, respectively, of IGM’s common shares. IGM contributed $107 million to Power Financial’s operating earnings for the quarter ended March 31, 2013, compared with $114 million for the corresponding period in 2012.

Pargesa Holding SA

For the quarter ended March 31, 2013, Pargesa Holding SA (Pargesa) reported an operating loss of SF17 million, compared with an operating loss of SF9 million in the corresponding period in 2012. Other items, not included in operating earnings, in the first quarter of 2013 resulted in a net charge of SF44 million, which consisted of Pargesa’s share of an impairment charge recorded by its subsidiary Groupe Bruxelles Lambert in connection with its investment in GDF Suez. In the first quarter of 2012, other items represented a contribution of SF271 million. Net loss for the first quarter of 2013 was SF61 million, compared with net earnings of SF262 million in the corresponding quarter of 2012.

Power Financial has a 50% interest in Parjointco N.V., which in turn held a 55.6% equity interest in Pargesa at March 31, 2013. Pargesa’s contribution to Power Financial’s operating earnings, expressed in Canadian dollars, was a charge of $5 million for the three-month period ended March 31, 2013, compared with a charge of $3 million in the corresponding period in 2012.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.