Loblaw reversed charges of $125 million, excluding taxes, in the third quarter. In August, a Federal Court of Appeal ruling overturned an earlier decision, finding the company could not claim tax credits when its subsidiary, PC Bank, reimbursed it for credit card loyalty point redemptions at its stores. (The Logic)
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Loblaw reversed charges of $125 million, excluding taxes, in the third quarter. In August, a Federal Court of Appeal ruling overturned an earlier decision, finding the company could not claim tax credits when its subsidiary, PC Bank, reimbursed it for credit card loyalty point redemptions at its stores. (The Logic)
Talking point: The court decision in Loblaw’s favour is a boon to its financial services division, which includes PC Bank’s credit card and consumer banking programs. Financial services contributed $382 million to Loblaw’s $18.5- billion third-quarter revenue. Loblaw retreated from consumer banking in 2017, keeping its credit card and loyalty point offerings while cutting ties with banking partner CIBC. It then returned to the business on its own—without a banking partner—in 2020. Despite reporting third-quarter growth in sales and profits, Loblaw missed revenue expectations due to weaker demand for non-essential items, leading shares to drop 3.6 per cent on Wednesday afternoon.
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