The Red Deer & District Chamber of Commerce shares the business community’s disappointment with the Government of Alberta’s decision to revert back to phase 1 and fundamentally shift the goal posts, parameters and trigger points of the relaunch strategy.
When first introduced, the phased plan was a welcome addition for the certainty it provided and businesses ability to plan based on public data relating to hospitalizations and ICU capacity. Unfortunately, when phase 2 was modified despite hospitalizations being well below the target, business owners felt misled, betrayed and lacking confidence in government plans. These feelings were exemplified with the postponement of phase 3 along with the April 6 announcement that represented a structural change in the plan.
Chamber CEO Rick More commented on the latest announcement: “Businesses do not turn on and off like a light switch. Operators and owners must have adequate staffing, inventory and so on. For the government to ‘switch-off’ a big portion of our hospitality industry is a devastating blow to weakened industries that made significant investments and adaptations to operate in a safe manner.”
Working with local businesses and the Alberta Hospitality Association, the Chamber sent a letter to the Premier and members of the Emergency Cabinet Committee advocating for the government to create a plan that enables a sustainable business-led recovery with better communication and a focus on risk-mitigation and safe-as-possible operation – not additional restrictions. A full copy of the letter can be found here.
More continued, “this step backwards is clearly a huge blow to business confidence and hope for a sooner than later economic recovery. Neither government nor effected businesses retain the fiscal capacity to survive these types of restrictions. Additional and ongoing supports are required from the provincial and federal governments to assist in the survival of businesses effected by restrictions. On a local level we are continuing discussions with the City of Red Deer and pressing the urgency of measures they can take on a local level to alleviate the financial stress and help our local businesses.”
The Red Deer & District Chamber of Commerce is a non-partisan, collaborative leader in building a vibrant community and fosters an environment where businesses can lead, be innovative, sustainable, and grow.
WestJet announces new flights to Tokyo, Barcelona, and Edinburgh
Calgary – WestJet plans to offer flights to Japan starting this spring, marking the airline’s first non-stop flights to Asia from Calgary.
The Calgary-based airline said Monday that it will fly to Tokyo’s Narita International Airport from Calgary this spring.
The non-stop flights will operate three times weekly beginning April 30.
The airline also announced new routes from Calgary to Barcelona and Edinburgh and increased frequency to Dublin, London, Paris and Rome, also starting in the spring.
WestJet chief executive Alexis von Hoensbroech says the new flights are part of the airline’s plan to expand capacity from Calgary by more than 25 per cent by next year, beginning with intercontinental routes.
WestJet also says it is preparing for broader expansion within Canada and North America over the coming months.
This report by The Canadian Press was first published Dec. 5, 2022.
RBC reports $3.9B Q4 profit as it prepares for a more turbulent year ahead
By Ian Bickis in Toronto
Royal Bank of Canada is taking measures to prepare for a more uncertain year ahead, but results from the past quarter still show gains in key areas like loans and new client additions.
The bank, which on Tuesday announced it had reached a deal to buy HSBC Bank Canada for $13.5 billion, said Wednesday it was raising its dividend for the last time until the deal is closed, while also announcing a two per cent discount on dividend reinvestments to help boost its balance sheet.
Given the potential slowdown ahead, the bank also set aside $381 million for potentially bad loans, compared with a reversal of $227 million last year, which offset gains elsewhere in the quarter to leave earnings of $3.88 billion just $10 million shy from a year earlier.
The actions on loan provisions and dividend discounts come as elevated housing and energy prices, geopolitical instability, and rising interest rates put pressure on growth, affect asset valuations and adds to market volatility, said RBC chief executive Dave McKay.
“We maintain our cautious stance on the outlook for economic growth,” he said on an analyst call.
“Although higher interest rates are needed to preserve long term economic stability, the lagging impact of monetary policy, combined with strong employment and significant liquidity in the system, has likely delayed what may end up being a brief and moderate recession.”
While rising rates put pressure on the economy, RBC is especially well positioned to benefit from them as the net interest margins on its sizable deposit base grows.
The bank said it saw net income in personal and commercial banking grow five per cent from a year ago to $2.14 billion, mostly due to those higher margins along with average volume growth of 10 per cent in loans, and wealth management also got a boost from higher net interest income and loan volume growth.
The boost from rising interest margins come as a benefit of RBC’s scale, which it continues to push to increase, both through the HSBC Canada acquisition, and more organic growth.
HSBC Canada gives the potential for RBC to add some 800,000 clients if it goes through as expected in late 2023, while this year the bank added 400,000 clients, and expects its client referral deal with the Canadian division of India’s ICICI Bank to direct some 50,000 more customers as immigration levels reach record highs.
The bank is well-positioned to add more clients, and deposits, next year to provide lower-cost funding for its loans, said McKay.
“We believe our largely deposit-funded balance sheet will be a key driver of profitability in a rising rate environment,” he said.
The bank’s capital markets business shows the clearest indications of volatility, with net income of $617 million down 33 per cent from a year earlier, but up 29 per cent from the third quarter.
Revenue totalled $12.57 billion, up from $12.38 billion a year earlier.
The quarter showed strong loan growth and no signs of a credit spike for RBC, said Scotiabank analyst Meny Grauman in a note, but he wondered about what the bank’s move on the discounted dividend reinvestment plan (DRIP) shows for the bank’s capital outlook, given the expected tougher economic conditions next year.
“In that context a defensive move on the DRIP raises questions about downside risks,” said Grauman.
He said the bank’s better-than-expected earnings, which came in at an adjusted $2.78 per diluted share for the quarter compared with a consensus of $2.68, according to Refinitiv, was from higher revenues and smaller loan provisions than expected.
Bank expenses however, which were up 9.5 per cent for the quarter compared with last year on higher staffing costs and some acquisition-related increase, came in higher than expected.
RBC said it will now pay a quarterly dividend of $1.32 per share, an increase of four cents.
For its full financial year, RBC said it earned $15.81 billion or $11.06 per diluted share on $48.99 billion in revenue compared with a record profit of $16.05 billion or $11.06 per diluted share on $49.69 billion in revenue in the same period last year.
This report by The Canadian Press was first published Nov. 30, 2022.
Companies in this story: (TSX:RY)
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