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Power Corp. beats expectations in fourth quarter as net profit surges to $623 million

Last Updated Mar 17, 2021 at 5:03 pm PDT

Power Corporation of Canada head office is shown in Montreal, Tuesday, February 11, 2020. THE CANADIAN PRESS/Graham Hughes

MONTREAL — Power Corp. beat expectations as its net profit attributable to shareholders surged in the final quarter of 2020 as its life insurance business benefited from acquisitions.

The Montreal-based holding company says it earned $623 million or 92 cents per share, up from $179 million or 42 cents per share a year earlier.

Adjusted profits for the three months ended Dec. 31 increased to $627 million or 93 cents per share, compared with $357 million or 84 cents per share in the fourth quarter of 2019.

Power was expected to report 82 cents per share in adjusted profits, according to financial data firm Refinitiv.

For the full-year, its net income reached $1.99 billion or $3.08 per share, up from $1.11 billion or $2.53 per share in 2019. Adjusted profits increased 2.7 per cent to $3 per share from $2.92 in the prior year.

Power holds full control of Power Financial and with that majority stakes in Great-West Lifeco, IGM Financial and Wealthsimple Financial Corp., as well as a minority stake in Pargesa Holding.

This report by The Canadian Press was first published March 17, 2021.

Companies in this story: (TSX:POW)

The Canadian Press