Category: Statistics

  • MIL-OSI China: China’s cultural sector saw sustained uptick in first three quarters

    Source: China State Council Information Office 3

    Major enterprises in China’s cultural sector and related business areas saw a stable increase in revenues and profits in the first three quarters this year, official data showed on Wednesday.

    The 78,000 surveyed enterprises raked in nearly 9.97 trillion yuan (about 1.4 trillion U.S. dollars) in combined revenue from January to September, up 5.9 percent year on year, according to the National Bureau of Statistics.

    The firms’ profits rose 3.9 percent year on year to 790.3 billion yuan in the nine months, driven mainly by the growth of internet information services and online culture and entertainment platforms.

    Companies featuring new business forms, such as providers of wearable smart cultural devices, online games and entertainment-purpose smart drones, pocketed over 4.16 trillion yuan in revenue, up 10 percent year on year.

    Of the total, the cultural manufacturing industry reported over 2.99 trillion yuan in revenue, up 3.9 percent year on year. The revenue of the cultural wholesale and retail industry reached nearly 1.67 trillion yuan, up 4.4 percent year on year. The revenue of the cultural services industry hit nearly 5.31 trillion yuan, up 7.6 percent year on year. 

    MIL OSI China News

  • MIL-OSI Global: Abortion and marijuana ballot measures may bring out Florida Democrats, but the GOP has 1M more active voters in the Sunshine State

    Source: The Conversation – USA – By Daniel A. Smith, Professor of Political Science, University of Florida

    Could ballot initiatives bring more Democrats to the polls in Florida? Jeffrey Greenberg/Universal Images Group via Getty Images

    The number of voters registered as Democrats has tumbled in recent years in Florida, effectively removing the Sunshine State as a battleground and placing it firmly in the red column.

    At least that’s the dominant narrative found in many media outlets. And it is true that Republican Donald Trump won the state in both 2016 and 2020.

    Still, Nikki Fried, the Florida Democratic party chair, thinks Florida Democrats are making a “clear resurgence.”

    Buoyed by broad support for two statewide initiatives on the ballot – the legalization of recreational marijuana and the establishment of a constitutional right to abortion up to viability – Fried is predicting robust turnout of Democratic voters this November despite concerns hurricanes Helene and Milton may suppress turnout.

    Fried suggests that Democratic presidential nominee Vice President Kamala Harris and Democratic U.S. Senate nominee Debbie Mucarsel-Powell will benefit from the two hot issues on the ballot. A ban on most abortions after six weeks went into effect in Florida on May 1, 2024, with the state Supreme Court at the same time deciding to put the issue to voters.

    The marijuana ballot measure looks likely to pass, while support for the abortion access measure is more uncertain. But the point is that these are the types of issues that bring Democrats – and unaffiliated voters – out to the polls.

    I’ve written extensively on direct democracy and Florida politics. My research shows how ballot measures can have what I call “educative effects,” not only bolstering turnout but also priming voters to choose candidates who support the same initiatives they do.

    This goes a long way to explain Republican Gov. Ron DeSantis’ efforts to thwart both measures, going so far as to use taxpayers’ dollars to oppose the abortion amendment.

    Florida’s abortion amendment needs to pass with 60% of the vote, so turnout is key.
    Rebecca Blackwell/AP Photo

    Active voters

    But Fried and the Democrats face a major hurdle – a widening voter registration gap – as Florida Republicans are quick to point out. Over the past several years, the GOP steadily narrowed the Democratic Party’s lead in voter registrations in the Sunshine State, finally surpassing Democrats’ plurality of active registered voters in 2021.

    Fried thinks the widening gap between registered Republicans and Democrats is a mirage. She claims that the Republican advantage is an artifact of a shift in state law that more aggressively reclassifies voters as being “inactive” if they don’t vote in two general election cycles or keep their information on file with local supervisors of elections.

    There is no question that the law, which went into effect in 2022, has deflated Democratic registration numbers. Here are the stats.

    According to the Florida secretary of state’s website, updated on Oct. 7, 2024, there are more than 1 million more registered Republicans (5,455,480) than Democrats (4,400,561) in Florida, followed by no party affiliation (3,584,982) and those registered with minor parties (404,890). That is, Republicans appear to account for more than 39% of registered voters in the Sunshine State, while Democrats make up less than 32%.

    However, the numbers posted on Florida’s official website, which amount to nearly 13.7 million registered voters, are misleading: They tally only active voters in the state.

    There are more than 2.5 million inactive voters on the rolls as of Aug. 1, 2024, according to my calculation of publicly available raw voter files. This brings the total number of registered voters in Florida to more than 16 million people.

    Inactive and unaffiliated voters

    Inactive registered voters have every right to cast ballots just like active voters. The main difference between the two groups is that inactive voters didn’t vote in 2020 or 2022.

    There are hundreds of thousands more inactive Democrats and unaffiliated voters than Republicans on the rolls. This is likely the result of lackluster campaigns in the state for Democratic presidential candidate Joe Biden in 2020 and for Democratic gubernatorial candidate Charlie Crist in 2022. Uninspired Democrats and unaffiliated voters didn’t show up to the polls, particularly in 2022.

    Currently, according to the publicly available Florida voter rolls, there are over 900,000 inactive Democrats and over 921,000 inactive unaffiliated voters, compared with fewer than 643,000 inactive Republicans. So, while Republicans account for 39% of active voters, they account for only 25% of inactive voters.

    To sharpen the point: 1 in 10 Republicans are currently inactive, whereas nearly 2 in 5 of all registered Democrats and more than 1 in 5 unaffiliated voters in Florida are inactive. These inactive voters tend not to receive the same attention from parties and groups trying to mobilize registered voters to the polls.

    There’s no question that the fortunes of the Florida Democratic Party have tumbled over the past decade. Twelve years ago, just prior to the 2012 general election, Democrats accounted for 40% of all active registered voters. It’s been a sharp decline down to 32%.

    But the difference has not been made up by Republicans. From 2012 to 2024, the share of active voters registered as Republicans increased by only 3 percentage points, from 36% to 39%.

    The biggest increase in the share of active voters over the same period is with unaffiliated voters, whose share jumped 5 percentage points, from less than 21% in 2012 to 26% in 2024. These unaffiliated voters in Florida tend to be younger and Hispanic, many of whom likely have been turned off by the toxic political landscape in the state.

    But back to the November election and Fried’s prognostications.

    Will the two statewide ballot measures – Amendment 3 on recreational marijuana and Amendment 4 on reproductive rights – offset the rise in Republican voter registration in Florida? Is the sizable lead of Republican active voters a mirage, only to disappear as Election Day nears?

    It will come down to turnout and whether inactive Democratic and unaffiliated voters’ support for Amendment 3 and Amendment 4 primes them to back the Democratic ticket.

    Daniel A. Smith does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

    ref. Abortion and marijuana ballot measures may bring out Florida Democrats, but the GOP has 1M more active voters in the Sunshine State – https://theconversation.com/abortion-and-marijuana-ballot-measures-may-bring-out-florida-democrats-but-the-gop-has-1m-more-active-voters-in-the-sunshine-state-239538

    MIL OSI – Global Reports

  • MIL-OSI: Vail is not the most popular ski destination in the world but ranks 9th according to the Travel App, Visited

    Source: GlobeNewswire (MIL-OSI)

    TORONTO, Oct. 30, 2024 (GLOBE NEWSWIRE) — Arriving In High Heels Corporation, the company behind the popular travel tracking app, Visited, has published a list of top 25 most popular ski destinations in the world. Based on mountain ranges the most popular locations are the Alps, Dolomites and the Rockies. The top ski destinations around the world include:

    1. Dolomites
    2. Chamonix
    3. Innsbruck
    4. Zermatt
    5. Sudtirol

    Of the US ski destinations, only Vail makes it to the top 10 list at number 9. Park City is the 2nd most popular destination in the U.S. and ranks 18th in the world while Aspen is the 3rd most popular ski destination in the U.S. and is ranked 19th in the world.

    Canadian ski destinations have only 2 that made the list which include Whistler in BC in 17th place & Banff in 25th.

    The full ski destination list ranked by popularity is available in the travel map app, Visited which can be downloaded for free on iOS or Android. Users can select destinations as ‘been’ or ‘want’ which helps them see their personal travel stats and build their ultimate bucket-list. There are over 150 travel lists available in the app including: cruise ports, diving/snorkelling, film locations, opera houses and more. Other features of the app include the ability to generate a personalized travel map of countries, regions and cities visited as well as a travel itinerary to build the ultimate to visit list by country.

    To learn more about the Visited Map App, visit https://visitedapp.com.

    About Visited Travel App
    Popular travel map app, Visited, was designed to keep track of all countries, regions and cities that you have been to or want to visit in the future. A new feature of the app allows users to receive professionally printed posts of their travels. To help keep track of all the unique places and experiences users had, they can select destinations by travel categories. There are over 150 travel lists to choose from including ski destinations, golf destinations, national parks and more. For those that have a hard time choosing where to go next, Visited, displays countries based on the total places of interest and experiences they want to do in that country, taking away the guess work of where to next. It is the ultimate travel bucket list and travel tracking app.

    About Arriving In High Heels Corporation
    Arriving In High Heels Corporation is a mobile app company with apps including Pay Off Debt, X-Walk and Visited, their most popular app.

    Contact:
    Anna Kayfitz
    anna@arrivinginhighheels.com

    The MIL Network

  • MIL-OSI Russia: The Secret of Creativity: What is Needed for Industry Development

    Translation. Region: Russian Federation –

    Source: State University Higher School of Economics – State University Higher School of Economics –

    On the first day of the conference, four thematic sessions were held. The first was dedicated to creative cities. “This is a complex topic, and now in Russia it is very acute, very relevant, popular. In 2020, this was completely different, four years have changed everything. Our measurements show that creative industries are incredibly unevenly distributed across regions and cities and are concentrated in certain places. That is, they are very selective. This is very important knowledge, and of course, I want to understand what kind of cities and spaces are that attract the creative industry, and what their secret is,” shared the session moderator, Director Center “Russian Cluster Observatory” Evgeny Kutsenko, Institute for Statistical Studies and Economics of Knowledge, National Research University Higher School of Economics.

    Head of Department “Creative Industries Research Laboratory” Victoria Boos, Institute for Statistical Studies and Economics of Knowledge, National Research University Higher School of Economics, presented Rating of innovative attractiveness of world citieswith an analysis of the distribution of creative industries around the world.

    “The key feature of our rating is that it provides an information base for making management decisions in the field of urban management. Another feature is a truly unique system of indicators: we do not use municipal statistics, we do not use expert assessments, we use data from independent platforms that aggregate information about the best representatives of creative industries, that is, about the leaders of creative industries,” she said.

    The study included eight industries that together account for about 90% of the income of the entire creative sector in the world. These are cinema and animation, computer games, music, fashion, advertising and PR, architecture, industrial design and art, which includes literature, performing arts and contemporary art.

    The top 5 cities with the highest concentration of creative industry leaders include London, New York, Tokyo, Los Angeles and Paris. “If we look at this rating, we will see that in the top twenty there is parity between the East and the West, and in the top thirty there are more Western cities. Accordingly, we can say that the East is declaring itself as a full-fledged participant in the creative industries market,” Victoria Boos noted.

    At the same time, the study showed that the top five cities are distinguished by a very large gap from all other cities. “You shouldn’t think that mega-creative cities only do what they do, pull creative leaders away from other settlements. The fact is that these mega-creative cities develop themselves and create creative leaders themselves,” the speaker emphasized.

    The researchers also noted that over the past two years, the proportion between developed countries and the Global South in terms of the number of creative industry representatives has changed. Today, every tenth artist who has released the most downloaded music tracks is a representative of Latin America, while 150 of the most popular fashion brands, designers, and architectural firms are concentrated in the countries of North Africa and West Asia.

    Creative industries are also developing in small towns – they have their own special style of creativity. It turned out that in some industries, more than 5% of stars are concentrated in cities with a population of less than 250 thousand people.

    Over the past year, many cities have shown impressive dynamics, the speaker noted. For example, Dubai rose from 76th to 38th place, and Tokyo entered the top three. Victoria Boos emphasized that creative support measures are needed to develop creative industries. For example, a special economic zone for creative industries is being developed in Dubai. Similar zones have recently begun to appear and develop in China. In Australia, there are three professional associations in the field of architecture and sustainable construction. In Chile, localized music streaming services are developing. Korea subsidizes cable TV prices. India and Russia are creating film cities.

    Also speaking at the session were the Chairperson of the Board of Trustees of the Creative Initiatives and Cultural Heritage Foundation (Kazakhstan) Dina Abdrakhmet, the co-founder and Chairman of the Expert Council of the Agency for Strategic Development “CENTER” Sergey Georgievsky and the Chairman of RuGBC Guy Ims.

    The second session was devoted to the management of creative industries in Russia, the third to strategic planning of creative industries and best global practices, and the fourth to education and skills in this area.

    On the second day of the session, October 31, the IV International Forum of Young Researchers of the Creative Economy will take place. The authors of scientific papers that have passed the competitive selection will present their reports.

    Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

    MIL OSI Russia News

  • MIL-OSI Russia: Paraguay Subscribes to IMF’s Special Data Dissemination Standard

    Source: IMF – News in Russian

    October 29, 2024

    Washington, DC: On October 28, Paraguay subscribed to the IMF’s Special Data Dissemination Standard (SDDS), joining 48 other countries currently subscribed to the SDDS. Subscription to the SDDS is expected to improve the country’s capacity on data compilation and dissemination, facilitate the macro-economic policy making process, help build up market confidence on the country’s institutional capacity, and contribute to the economic and financial stability.

    Paraguay’s achievement builds on its strong performance in the IMF’s Enhanced General Data Dissemination System (e-GDDS) since 2017 and stands to set an example for its peers.

    Bert Kroese, Chief Statistician and Data Officer, and Director of the IMF’s Statistics Department, welcomed the key achievement in the country’s statistical development. “I congratulate the authorities on graduating from the e-GDDS and advancing to the SDDS. It reflects Paraguay’s strong commitment to transparency and is a significant step forward in complying to internationally accepted best practices in data dissemination.”

    “Subscription to the SDDS is also beneficial for the country.  Mr. Kroese added. “The milestone is also a testament to the Fund’s commitment to helping the member countries with capacity development.”

    The SDDS, established by the IMF in March 1996, is intended to guide members in the dissemination of economic and financial data to the public. Subscription to the SDDS enhances the availability of timely statistics according to an advance release calendar (ARC), thereby contributing to sound macroeconomic policies and the proper functioning of financial markets. Although voluntary, a subscribing member commits to observe the standard and to publish information (metadata) about its data dissemination practices.

    In concluding the Tenth Review of the IMF Data Standards Initiatives in February 2022, the IMF Executive Board underscored the important role that the Data Standards Initiatives have played since the mid-1990s in promoting data transparency as a global public good by encouraging countries to voluntarily publish key macroeconomic and financial data. The Tenth Review also stressed the importance of supporting the e-GDDS countries’ advancement toward the SDDS.

    The National Summary Data Page (NSDP) of Paraguay includes the SDDS data categories. Comprehensive documentation on the related statistical practices is published at the IMF’s Dissemination Standards Bulletin Board (DSBB) and information for Paraguay is available at IMF – SDDS Subscribing Countries (DSBB)]

    In addition to the SDDS and the e-GDDS, the Data Standards Initiatives include the SDDS Plus. Detailed information on the Data Standards Initiatives can be found at https://dsbb.imf.org.

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Julie Ziegler

    Phone: +1 202 623-7100Email: MEDIA@IMF.org

    @IMFSpokesperson

    https://www.imf.org/en/News/Articles/2024/10/29/pr-24399-paraguay-paraguay-subscribes-to-imfs-special-data-dissemination-standard

    MIL OSI

    MIL OSI Russia News

  • MIL-OSI: Provident Financial Services, Inc. Reports Third Quarter Earnings and Declares Quarterly Cash Dividend

    Source: GlobeNewswire (MIL-OSI)

    ISELIN, N.J., Oct. 29, 2024 (GLOBE NEWSWIRE) — Provident Financial Services, Inc. (NYSE:PFS) (the “Company”) reported net income of $46.4 million, or $0.36 per basic and diluted share for the three months ended September 30, 2024, compared to a net loss of $11.5 million, or $0.11 per basic and diluted share, for the three months ended June 30, 2024 and net income of $28.5 million, or $0.38 per basic and diluted share, for the three months ended September 30, 2023. For the nine months ended September 30, 2024, net income totaled $67.0 million, or $0.65 per basic and diluted share, compared to $101.1 million, or $1.35 per basic and diluted share, for the nine months ended September 30, 2023.

    The Company’s earnings for the three and nine months ended September 30, 2024 reflected the impact of the May 16, 2024 merger with Lakeland Bancorp, Inc. (“Lakeland”), which added $10.91 billion to total assets, $7.91 billion to loans, and $8.62 billion to deposits, net of purchase accounting adjustments.  The merger with Lakeland significantly impacted provisions for credit losses in the trailing quarter due to the initial CECL provisions recorded on acquired loans.  The results of operations for the three and nine months ended September 30, 2024 also included other transaction costs related to the merger with Lakeland, totaling $15.6 million and $36.7 million, respectively, compared with transaction costs totaling $2.3 million and $5.3 million for the respective 2023 periods. Additionally, the Company realized a $2.8 million loss related to the sale of subordinated debt issued by Lakeland from the Provident investment portfolio, during the nine months ended September 30, 2024.

    Anthony J. Labozzetta, President and Chief Executive Officer commented, “We achieved solid performance this quarter, and we are optimistic that our results will continue to improve as we further realize the synergies of the merger.  Provident generated strong earnings and core metrics, aided by robust performance in our fee-based businesses. We continue to expand our operations prudently and believe we are well-positioned for even greater success as market conditions improve.”

    Regarding the Company’s merger with Lakeland, Mr. Labozzetta added, “We are proud to announce that, with the conversion of our core system in early September, our merger is complete and we are a unified organization. Our cultures are combining well and we are already experiencing the benefits of cost savings and enhanced revenue opportunities. We are grateful to the many team members whose hard work allowed for a smooth conversion and the retention of almost all legacy Lakeland customers.”

    Performance Highlights for the Third Quarter of 2024

    • Net interest income increased $42.2 million to $183.7 million for the three months ended September 30, 2024, from $141.5 million for the trailing quarter primarily due to the full quarter impact of net assets acquired from Lakeland, including the accretion of purchase accounting adjustments and four basis points of core margin expansion.  
    • The net interest margin increased ten basis points to 3.31% for the quarter ended September 30, 2024, from 3.21% for the trailing quarter. The weighted average yield on interest-earning assets for the quarter ended September 30, 2024 increased 17 basis points to 5.84%, compared to the trailing quarter, while the weighted average cost of interest-bearing liabilities for the quarter ended September 30, 2024 increased ten basis points to 3.19%, compared to the trailing quarter. The increases in the yields and costs on interest-earning assets and interest-bearing liabilities were primarily due to a full quarter of accretion of purchase accounting adjustments related to the Lakeland merger, which contributed approximately 53 basis points to the net interest margin in the current quarter.
    • Non-interest income increased $4.6 million to $26.9 million for the three months ended September 30, 2024, from $22.3 million for the trailing quarter, while non-interest expense increased $20.6 million to $136.0 million for the three months ended September 30, 2024, compared to $115.4 million for the trailing quarter.   The increases in both non-interest income and non-interest expense were reflective of a full quarter of combined operations with Lakeland.
    • Wealth management and insurance agency income increased 9.0% and 12.6%, respectively, versus the same period in 2023. The increase in wealth management income was primarily due to an increase in the average market value of assets under management during the period, while the increase in insurance agency income was largely due to an increase in business activity.
    • Adjusting for transaction costs related to the merger with Lakeland, net of tax, the Company’s annualized adjusted returns on average assets, average equity and average tangible equity(1) were 0.95%, 8.62% and 14.53% for the quarter ended September 30, 2024, compared to 0.06%, 0.53% and 2.01% for the quarter ended June 30, 2024. A reconciliation between GAAP and the above non-GAAP ratios are shown on page 13 of the earnings release.
    • The Company’s annualized adjusted pre-tax, pre-provision returns on average assets, average equity and average tangible equity(2) were 1.48%, 13.48% and 19.77% for the quarter ended September 30, 2024, compared to 1.47%, 13.26% and 19.21% for the quarter ended June 30, 2024. A reconciliation between GAAP and the above non-GAAP ratios are shown on page 14 of the earnings release.
    • As of September 30, 2024, the Company’s loan pipeline, consisting of work-in-process and loans approved pending closing, totaled $1.98 billion, with a weighted average interest rate of 7.18%, compared to $1.67 billion, with a weighted average interest rate of 7.53%, as of June 30, 2024.
    • The Company recorded a $9.6 million provision for credit losses on loans for the quarter ended September 30, 2024, compared to a $66.1 million provision for the trailing quarter. The provision for credit losses on loans in the quarter was primarily attributable to specific reserves required on individually analyzed loans, combined with some economic forecast deterioration. The allowance for credit losses as a percentage of loans increased to 1.02% as of September 30, 2024, from 1.00% as of June 30, 2024.
    • As of September 30, 2024, CRE loans related to office properties totaled $921.1 million, compared to $953.5 million as of June 30, 2024. CRE loans secured by office properties constitutes only 4.9% of total loans and have an average loan size of $1.9 million, with just seven relationships greater than $10.0 million. There were four loans totaling $9.2 million on non-accrual as of September 30, 2024, however we do not expect to incur losses on any of these loans.
    • As of September 30, 2024, multi-family CRE loans secured by New York City properties totaled $226.6 million, compared to $227.7 million as of June 30, 2024. This portfolio constitutes only 1.2% of total loans and has an average loan size of $2.6 million. Loans that are collateralized by rent stabilized apartments comprise less than 0.80% of the total loan portfolio and are all performing.
    • Non-performing loans to total loans as of September 30, 2024 increased to 0.47%, compared to 0.36% as of June 30, 2024, while non-performing assets to total assets as of September 30, 2024 increased to 0.41%, compared to 0.33% as of June 30, 2024. The increase in non-performing loans, compared to the prior quarter was primarily attributable to one commercial real estate credit secured by an industrial property which has a loan-to-value ratio of approximately 39%. We anticipate a near-term resolution of this credit with no expected loss.   For the three months ended September 30, 2024, net charge-offs totaled $6.8 million, or an annualized 14 basis points of average loans. Of this total, $6.4 million was attributable to one previously identified commercial relationship that had a $4.4 million specific reserve as of June 30, 2024. This credit is expected to be fully resolved in the fourth quarter of 2024.

    Declaration of Quarterly Dividend

    The Company’s Board of Directors declared a quarterly cash dividend of $0.24 per common share payable on November 29, 2024 to stockholders of record as of the close of business on November 15, 2024.

    Results of Operations

    Three months ended September 30, 2024 compared to the three months ended June 30, 2024

    For the three months ended September 30, 2024, the Company reported net income of $46.4 million, or $0.36 per basic and diluted share, compared to a net loss of $11.5 million, or $0.11 per basic and diluted share, for the three months ended June 30, 2024. The Company’s earnings for the prior quarter were impacted by an initial CECL provision for credit losses on loans and commitments to extend credit of $65.2 million recorded as part of the Lakeland merger in accordance with GAAP requirements for accounting for business combinations. The results of operations for the three months ended September 30, 2024 included transaction costs related to the merger with Lakeland totaling $15.6 million, compared with transaction costs totaling $18.9 million in the trailing quarter. Additionally, the Company realized a $2.8 million loss in the trailing quarter related to the sale from the Provident investment portfolio of subordinated debt issued by Lakeland.

    Net Interest Income and Net Interest Margin

    Net interest income increased $42.2 million to $183.7 million for the three months ended September 30, 2024, from $141.5 million for the trailing quarter. Net interest income for the three months ended September 30, 2024 was favorably impacted by a full quarter of combined operations with Lakeland and accretion of purchase accounting adjustments, compared to a 45 days impact in the prior quarter.

    The Company’s net interest margin increased ten basis points to 3.31% for the quarter ended September 30, 2024, from 3.21% for the trailing quarter. Accretion of purchase accounting adjustments related to the Lakeland merger contributed 53 basis points to the net interest margin in the current quarter. The current net interest margin reflects a full quarter of the acquisition of Lakeland’s interest-bearing assets and liabilities, the prior quarter sale of $554.2 million of securities acquired from Lakeland and the repayment of overnight borrowings as well as the prior quarter issuance of subordinated debt.

    The weighted average yield on interest-earning assets for the quarter ended September 30, 2024 increased 17 basis points to 5.84%, compared to the trailing quarter. The weighted average cost of interest-bearing liabilities for the quarter ended September 30, 2024 increased ten basis points from the trailing quarter, to 3.19%. The average cost of interest-bearing deposits for the quarter ended September 30, 2024 increased 12 basis points to 2.96%, compared to 2.84% for the trailing quarter. The average cost of total deposits, including non-interest-bearing deposits, was 2.36% for the quarter ended September 30, 2024, compared to 2.27% for the trailing quarter. The average cost of borrowed funds for the quarter ended September 30, 2024 was 3.73%, compared to 3.83% for the quarter ended June 30, 2024. All yields and costs reflect a full quarter of combined operations with Lakeland.

    Provision for Credit Losses on Loans

    For the quarter ended September 30, 2024, the Company recorded a $9.6 million provision for credit losses on loans, compared with a provision for credit losses on loans of $66.1 million for the quarter ended June 30, 2024. The provision for credit losses on loans in the quarter was primarily attributable to specific reserves required on individually analyzed loans, combined with some economic forecast deterioration, while the provision for credit losses on loans in the prior quarter was primarily attributable to an initial CECL provision for credit losses of $60.1 million, recorded as part of the Lakeland merger in accordance with GAAP requirements for accounting for business combinations. For the three months ended September 30, 2024, net charge-offs totaled $6.8 million, or an annualized 14 basis points of average loans.

    Non-Interest Income and Expense

    For the three months ended September 30, 2024, non-interest income totaled $26.9 million, an increase of $4.6 million, compared to the trailing quarter. Net gain on securities transactions increased $3.0 million for the three months ended September 30, 2024, compared to the trailing quarter, primarily due to a $2.8 million loss realized on the sale from the Provident investment portfolio of subordinated debt issued by Lakeland in the prior quarter.   Fee income increased $1.1 million to $9.8 million for the three months ended September 30, 2024, compared to the trailing quarter, primarily due to increases in deposit and debit card related fee income. The increases in fee income are primarily attributable to the addition of the Lakeland customer base. BOLI income increased $1.0 million for the three months ended September 30, 2024, compared to the trailing quarter, primarily due to an increase in benefit claims recognized. Partially offsetting these increases in non-interest income, insurance agency income decreased $857,000 to $3.6 million for the three months ended September 30, 2024, compared to the trailing quarter, due to a seasonal decrease in business activity in the current quarter, while wealth management income decreased $149,000 to $7.6 million for the three months ended September 30, 2024, compared to the trailing quarter, mainly due to a seasonal decrease in tax preparation fees, partially offset by an increase in the average market value of assets under management during the period.

    Non-interest expense totaled $136.0 million for the three months ended September 30, 2024, an increase of $20.6 million, compared to $115.4 million for the trailing quarter. Compensation and benefits expense increased $8.6 million to $63.5 million for the three months ended September 30, 2024, compared to $54.9 million for the trailing quarter. The increase in compensation and benefits expense was primarily attributable to a full quarter of combined operations with Lakeland, compared to 45 days in the prior quarter.   Amortization of intangibles increased $5.7 million to $12.2 million for the three months ended September 30, 2024, compared to $6.5 million for the trailing quarter, largely due to a full quarter of core deposit intangible amortization related to Lakeland.   Other operating expenses increased $4.5 million to $15.8 million for the three months ended September 30, 2024, compared to $11.3 million for the trailing quarter, primarily due to increases in professional service expenses. Data processing expense increased $2.0 million to $10.5 million for the three months ended September 30, 2024, compared to $8.4 million for the trailing quarter, primarily due a full quarter of combined operations with Lakeland, while net occupancy expense increased $1.6 million to $12.8 million for the three months ended September 30, 2024, compared to $11.1 million for the trailing quarter, primarily due to increases in maintenance and depreciation expenses from the addition of Lakeland.   Additionally, FDIC insurance increased $1.1 million to $4.2 million for the three months ended September 30, 2024, primarily resulting from the impact of the Lakeland merger. Partially offsetting these increases, merger-related expenses decreased $3.3 million to $15.6 million for the three months ended September 30, 2024, compared to the trailing quarter.

    The Company’s annualized adjusted non-interest expense as a percentage of average assets(5) declined to 1.98% for the quarter ended September 30, 2024, compared to 2.02% for the trailing quarter. The efficiency ratio (adjusted non-interest expense divided by the sum of net interest income and non-interest income)(6) improved to 57.20% for the three months ended September 30, 2024, compared to 57.86% for the trailing quarter.

    Income Tax Expense/Benefit

    For the three months ended September 30, 2024, the Company’s income tax expense was $18.9 million, compared to an income tax benefit of $9.8 million for the trailing quarter. The increase in tax expense for the three months ended September 30, 2024 compared with the trailing quarter was largely due to an increase in taxable income in the current quarter as a result of the Lakeland merger and a $5.3 million tax benefit realized in the trailing quarter related to the revaluation of deferred tax assets to reflect the imposition by the State of New Jersey of a 2.5% Corporate Transit Fee, effective January 1, 2024.  

    Three months ended September 30, 2024 compared to the three months ended September 30, 2023

    For the three months ended September 30, 2024, the Company reported net income of $46.4 million, or $0.36 per basic and diluted share, compared to net income of $28.5 million, or $0.38 per basic and diluted share, for the three months ended September 30, 2023. The Company’s earnings for the quarter ended September 30, 2024 reflected the impact of the May 16, 2024 merger with Lakeland. The results of operations included transaction costs related to the merger with Lakeland totaling $15.6 million and $2.3 million for the three months ended September 30, 2024 and 2023, respectively.

    Net Interest Income and Net Interest Margin

    Net interest income increased $87.5 million to $183.7 million for the three months ended September 30, 2024, from $96.2 million for same period in 2023. Net interest income for the three months ended September 30, 2024 was favorably impacted by the net assets acquired from Lakeland, combined with favorable repricing of adjustable rate loans, higher market rates on new loan originations and the originations of higher-yielding loans, partially offset by unfavorable repricing of both deposits and borrowings.

    The Company’s net interest margin increased 35 basis points to 3.31% for the quarter ended September 30, 2024, from 2.96% for the same period last year. Accretion of purchase accounting adjustments related to the Lakeland merger contributed 53 basis points to the net interest margin in the current quarter.   The current quarter net interest margin reflects the acquisition of Lakeland’s interest bearing assets and liabilities, the prior quarter sale of $554.2 million of securities acquired from Lakeland and the repayment of overnight borrowings as well as the prior quarter issuance of subordinated debt.

    The weighted average yield on interest-earning assets for the quarter ended September 30, 2024 increased 95 basis points to 5.84%, compared to 4.89% for the quarter ended September 30, 2023. The weighted average cost of interest-bearing liabilities increased 69 basis points for the quarter ended September 30, 2024 to 3.19%, compared to 2.50% for the third quarter of 2023. The average cost of interest-bearing deposits for the quarter ended September 30, 2024 was 2.96%, compared to 2.22% for the same period last year. Average non-interest-bearing demand deposits increased $1.51 billion to $3.74 billion for the quarter ended September 30, 2024, compared to $2.23 billion for the quarter ended September 30, 2023. The average cost of total deposits, including non-interest-bearing deposits, was 2.36% for the quarter ended September 30, 2024, compared with 1.74% for the quarter ended September 30, 2023. The average cost of borrowed funds for the quarter ended September 30, 2024 was 3.73%, compared to 3.74% for the same period last year.

    Provision for Credit Losses on Loans

    For the quarter ended September 30, 2024, the Company recorded a $9.6 million provision for credit losses on loans, compared with an $11.0 million provision for credit losses on loans for the quarter ended September 30, 2023.   The provision for credit losses on loans in the current quarter was primarily attributable to specific reserves required on individually analyzed loans, combined with some economic forecast deterioration.   For the three months ended September 30, 2024, net charge-offs totaled $6.8 million, or an annualized 14 basis points of average loans.

    Non-Interest Income and Expense

    Non-interest income totaled $26.9 million for the quarter ended September 30, 2024, an increase of $7.5 million, compared to the same period in 2023. Fee income increased $3.7 million to $9.8 million for the three months ended September 30, 2024, compared to the prior year quarter, primarily due to increases in deposit fee income, debit card related fee income and loan related fee income, resulting from the Lakeland merger.   BOLI income increased $2.5 million to $4.3 million for the three months ended September 30, 2024, compared to the prior year quarter, primarily due to an increase in benefit claims recognized, combined with an increase in income related to the addition of Lakeland’s BOLI. Wealth management fees increased $628,000 to $7.6 million for the three months ended September 30, 2024, compared to the quarter ended September 30, 2023, mainly due to an increase in the average market value of assets under management during the period, while insurance agency income increased $407,000 to $3.6 million for the three months ended September 30, 2024, compared to the quarter ended September 30, 2023, largely due to an increase in business activity. Additionally, other income increased $339,000 to $1.5 million for the three months ended September 30, 2024, compared to the quarter ended September 30, 2023, primarily due to increases in gains on the sale of SBA and mortgage loans.

    For the three months ended September 30, 2024, non-interest expense totaled $136.0 million, an increase of $70.4 million, compared to the three months ended September 30, 2023. Compensation and benefits expense increased $27.8 million to $63.5 million for the three months ended September 30, 2024, compared to $35.7 million for the same period in 2023. The increase in compensation and benefits expense was primarily attributable to the addition of Lakeland. Additionally, merger-related expenses increased $13.3 million to $15.6 million for the three months ended September 30, 2024, compared to the same period in 2023. Amortization of intangibles increased $11.5 million to $12.2 million for the three months ended September 30, 2024, compared to $720,000 for the same period in 2023, largely due to core deposit intangible amortization related to Lakeland in the current quarter. Data processing expenses increased $5.2 million to $10.5 million for three months ended September 30, 2024, compared to $5.3 million for the same period in 2023, primarily due to additional software and hardware expenses needed for the addition of Lakeland. Net occupancy expense increased $4.7 million to $12.8 million for three months ended September 30, 2024, compared to $8.1 million for the same period in 2023, primarily due to an increase in depreciation and maintenance expenses due to the addition of Lakeland.   Other operating expenses increased $5.0 million to $15.8 million for the three months ended September 30, 2024, compared to $10.7 million for the same period in 2023, primarily due to increases in professional service expenses, while FDIC insurance increased $2.6 million to $4.2 million for the three months ended September 30, 2024, primarily due to the addition of Lakeland.

    The Company’s annualized adjusted non-interest expense as a percentage of average assets(5) was 1.98% for the quarter ended September 30, 2024, compared to 1.80% for the same period in 2023. The efficiency ratio (adjusted non-interest expense divided by the sum of net interest income and non-interest income)(6) was 57.20% for the three months ended September 30, 2024 compared to 54.81% for the same respective period in 2023.

    Income Tax Expense

    For the three months ended September 30, 2024, the Company’s income tax expense was $18.9 million with an effective tax rate of 28.9%, compared with an income tax expense of $8.8 million with an effective tax rate of 23.7% for the three months ended September 30, 2023. The increase in tax expense for the three months ended September 30, 2024, compared with the same period last year was largely due to an increase in taxable income in the quarter, as a result of the Lakeland merger and the imposition by the State of New Jersey of a 2.5% Corporate Transit Fee in the prior quarter.

    Nine months ended September 30, 2024 compared to the nine months ended September 30, 2023

    For the nine months ended September 30, 2024, net income totaled $67.0 million, or $0.65 per basic and diluted share, compared to net income of $101.1 million, or $1.35 per basic and diluted share, for the nine months ended September 30, 2023. The Company’s earnings for the nine months ended September 30, 2024 were impacted by an initial CECL provision for credit losses on loans and commitments to extend credit of $60.1 million recorded as part of the Lakeland merger in accordance with GAAP requirements for accounting for business combinations. Transaction costs related to our merger with Lakeland totaled $36.7 million and $5.3 million for the nine months ended September 30, 2024 and 2023, respectively. Additionally, the Company realized a $2.8 million loss related to the sale from the Provident investment portfolio of subordinated debt issued by Lakeland, during the nine months ended September 30, 2024.

    Net Interest Income and Net Interest Margin

    Net interest income increased $115.2 million to $418.9 million for the nine months ended September 30, 2024, from $303.7 million for same period in 2023. Net interest income for the nine months ended September 30, 2024 was favorably impacted by the net assets acquired from Lakeland, combined with the favorable repricing of adjustable rate loans, higher market rates on new loan originations and the originations of higher-yielding loans, partially offset by the unfavorable repricing of both deposits and borrowings.

    For the nine months ended September 30, 2024, our net interest margin decreased one basis point to 3.18%, compared to 3.19% for the nine months ended September 30, 2023. The weighted average yield on interest earning assets increased 85 basis points to 5.61% for the nine months ended September 30, 2024, compared to 4.76% for the nine months ended September 30, 2023, while the weighted average cost of interest-bearing liabilities increased 99 basis points to 3.06% for the nine months ended September 30, 2024, compared to 2.07% for the same period last year. The average cost of interest-bearing deposits increased 102 basis points to 2.84% for the nine months ended September 30, 2024, compared to 1.82% for the same period last year. Average non-interest-bearing demand deposits increased $514.3 million to $2.90 billion for the nine months ended September 30, 2024, compared with $2.38 billion for the nine months ended September 30, 2023. The average cost of total deposits, including non-interest-bearing deposits, was 2.27% for the nine months ended September 30, 2024, compared with 1.40% for the nine months ended September 30, 2023. The average cost of borrowings for the nine months ended September 30, 2024 was 3.73%, compared to 3.29% for the same period last year.

    Provision for Credit Losses on Loans

    For the nine months ended September 30, 2024, the Company recorded a $75.9 million provision for credit losses on loans, compared with a provision for credit losses on loans of $27.4 million for the nine months ended September 30, 2023. The increased provision for credit losses on loans for the nine months ended September 30, 2024 was primarily attributable to an initial CECL provision for credit losses on loans of $60.1 million recorded as part of the Lakeland merger in accordance with GAAP requirements for accounting for business combinations, partially offset by an improved economic forecast for the current nine-month period within our CECL model, compared to the same period last year. For the nine months ended September 30, 2024, net charge-offs totaled $9.1 million or an annualized eight basis points of average loans.

    Non-Interest Income and Expense

    For the nine months ended September 30, 2024, non-interest income totaled $69.9 million, an increase of $9.1 million compared to the same period in 2023. Fee income increased $6.1 million to $24.4 million for the nine months ended September 30, 2024, compared to the same period in 2023, primarily due to increases in deposit fee income, debit and credit card related fee income and loan related fee income resulting from the Lakeland merger. BOLI income increased $4.6 million to $9.4 million for the nine months ended September 30, 2024, compared to the same period in 2023, primarily due to an increase in benefit claims recognized, combined with an increase in income related to the addition of Lakeland’s BOLI, while wealth management income increased $2.1 million to $22.9 million for the nine months ended September 30, 2024, compared to the same period in 2023, mainly due to an increase in the average market value of assets under management during the period. Additionally, insurance agency income increased $1.7 million to $12.9 million for the nine months ended September 30, 2024, compared to $11.2 million for the same period in 2023, largely due to increases in contingent commissions, retention revenue and new business activity. Partially offsetting these increases in non-interest income, net gains on securities transactions decreased $3.0 million for the nine months ended September 30, 2024, primarily due to a $2.8 million loss related to the sale from the Provident investment portfolio of subordinated debt issued by Lakeland. Other income decreased $2.4 million to $3.2 million for the nine months ended September 30, 2024, compared to $5.7 million for the same period in 2023, primarily due to a $2.0 million gain from the sale of a foreclosed commercial property recorded in the prior year, combined with a decrease in gains on sales of SBA loans.

    Non-interest expense totaled $323.2 million for the nine months ended September 30, 2024, an increase of $123.7 million, compared to $199.5 million for the nine months ended September 30, 2023. Compensation and benefits expense increased $48.7 million to $158.4 million for the nine months ended September 30, 2024, compared to $109.7 million for the nine months ended September 30, 2023. The increase in compensation and benefits expense was primarily attributable to the addition of Lakeland.   Merger-related expenses increased $31.3 million to $36.7 million for the nine months ended September 30, 2024, compared to $5.3 million for the nine months ended September 30, 2023. Amortization of intangibles increased $17.2 million to $19.4 million for the nine months ended September 30, 2024, compared to $2.2 million for the nine months ended September 30, 2023, largely due to core deposit intangible amortization related to Lakeland. Data processing expense increased $9.2 million to $25.7 million for the nine months ended September 30, 2024, compared to $16.5 million for the nine months ended September 30, 2023, primarily due to additional software and hardware expenses needed for the addition of Lakeland, while net occupancy expense increased $8.0 million to $32.5 million for the nine months ended September 30, 2024, compared to the same period in 2023, primarily due to increases in depreciation and maintenance expense related to the addition of Lakeland. Other operating expenses increased $5.6 million to $37.4 million for the three months ended September 30, 2024, compared to $31.8 million for the same period in 2023, primarily due to increases in professional service expenses, while FDIC insurance increased $3.9 million to $9.6 million for the three months ended September 30, 2024, primarily due to the addition of Lakeland.

    Income Tax Expense
    For the nine months ended September 30, 2024, the Company’s income tax expense was $19.9 million with an effective tax rate of 22.9%, compared with $34.9 million with an effective tax rate of 25.7% for the nine months ended September 30, 2023. The decrease in tax expense for the nine months ended September 30, 2024 compared with the same period last year was largely due to a $5.8 million tax benefit related to the revaluation of deferred tax assets to reflect the imposition by the State of New Jersey of a 2.5% Corporate Transit Fee, effective January 1, 2024, combined with a decrease in taxable income as a result of the initial CECL provision for credit losses on loans of $60.1 million recorded in accordance with GAAP requirements for accounting for business combinations and additional expenses from the Lakeland merger.

    Asset Quality

    The Company’s total non-performing loans as of September 30, 2024 were $89.9 million, or 0.47% of total loans, compared to $67.9 million, or 0.36% of total loans as of June 30, 2024 and $49.6 million, or 0.46% of total loans as of December 31, 2023. The $22.1 million increase in non-performing loans as of September 30, 2024, compared to the trailing quarter, consisted of a $10.4 million increase in non-performing commercial mortgage loans, an $8.9 million increase in non-performing commercial loans, a $1.5 million increase in non-performing construction loans, a $764,000 increase in non-performing residential mortgage loans, a $302,000 increase in non-performing multi-family loans and a $289,000 increase in non-performing consumer loans. As of September 30, 2024, impaired loans totaled $74.0 million with related specific reserves of $7.2 million, compared with impaired loans totaling $54.6 million with related specific reserves of $7.7 million as of June 30, 2024. As of December 31, 2023, impaired loans totaled $42.8 million with related specific reserves of $2.4 million.

    As of September 30, 2024, the Company’s allowance for credit losses related to the loan portfolio was 1.02% of total loans, compared to 1.00% and 0.99% as of June 30, 2024 and December 31, 2023, respectively. The allowance for credit losses increased $84.0 million to $191.2 million as of September 30, 2024, from $107.2 million as of December 31, 2023. The increase in the allowance for credit losses on loans as of September 30, 2024 compared to December 31, 2023 was due to a $75.9 million provision for credit losses, which included an initial CECL provision of $60.1 million on loans acquired from Lakeland, and a $17.2 million allowance recorded through goodwill related to Purchased Credit Deteriorated loans acquired from Lakeland, partially offset by net charge-offs of $9.1 million.

    The following table sets forth accruing past due loans and non-accrual loans on the dates indicated, as well as delinquency statistics and certain asset quality ratios.

        September 30, 2024   June 30, 2024   December 31, 2023
        Number
    of
    Loans
      Principal
    Balance
    of Loans
      Number
    of
    Loans
      Principal
    Balance
    of Loans
      Number
    of
    Loans
      Principal
    Balance
    of Loans
        (Dollars in thousands)
    Accruing past due loans:                        
    30 to 59 days past due:                        
    Commercial mortgage loans   2   $ 430     3   $ 1,707     1   $ 825  
    Multi-family mortgage loans                   1     3,815  
    Construction loans                        
    Residential mortgage loans   23     5,020     9     1,714     13     3,429  
    Total mortgage loans   25     5,450     12     3,421     15     8,069  
    Commercial loans   14     1,952     20     3,444     6     998  
    Consumer loans   53     4,073     38     2,891     31     875  
    Total 30 to 59 days past due   92   $ 11,475     70   $ 9,756     52   $ 9,942  
                             
    60 to 89 days past due:                        
    Commercial mortgage loans   1   $ 641     3   $ 1,231       $  
    Multi-family mortgage loans                   1     1,635  
    Construction loans                        
    Residential mortgage loans   11     1,991     10     2,193     8     1,208  
    Total mortgage loans   12     2,632     13     3,424     9     2,843  
    Commercial loans   9     1,240     6     1,146     3     198  
    Consumer loans   10     606     9     648     5     275  
    Total 60 to 89 days past due   31     4,478     28     5,218     17     3,316  
    Total accruing past due loans   123   $ 15,953     98   $ 14,974     69   $ 13,258  
                             
    Non-accrual:                        
    Commercial mortgage loans   17   $ 13,969     10   $ 3,588     7   $ 5,151  
    Multi-family mortgage loans   6     7,578     5     7,276     1     744  
    Construction loans   2     13,151     1     11,698     1     771  
    Residential mortgage loans   24     5,211     20     4,447     7     853  
    Total mortgage loans   49     39,909     36     27,009     16     7,519  
    Commercial loans   69     48,592     58     39,715     26     41,487  
    Consumer loans   32     1,433     24     1,144     10     633  
    Total non-accrual loans   150   $ 89,934     118   $ 67,868     52   $ 49,639  
                             
    Non-performing loans to total loans         0.47 %         0.36 %         0.46 %
    Allowance for loan losses to total non-performing loans         217.09 %         277.50 %         215.96 %
    Allowance for loan losses to total loans         1.02 %         1.00 %         0.99 %
                                         

    As of September 30, 2024 and December 31, 2023, the Company held foreclosed assets of $9.8 million and $11.7 million, respectively. During the nine months ended September 30, 2024, there were three properties sold with an aggregate carrying value of $532,000 and one write-down of a foreclosed commercial property of $1.3 million. Foreclosed assets as of September 30, 2024 consisted primarily of commercial real estate. Total non-performing assets as of September 30, 2024 increased $36.6 million to $97.9 million, or 0.41% of total assets, from $61.3 million, or 0.43% of total assets as of December 31, 2023.

    Balance Sheet Summary

    Total assets as of September 30, 2024 were $24.04 billion, a $9.83 billion increase from December 31, 2023. The increase in total assets was primarily due to the addition of Lakeland.

    The Company’s loans held for investment portfolio totaled $18.79 billion as of September 30, 2024 and $10.87 billion as of December 31, 2023. The loan portfolio consisted of the following:

      September 30, 2024   June 30, 2024   December 31, 2023
      (Dollars in thousands)
    Mortgage loans:          
    Commercial $ 7,342,456     $ 7,337,742     $ 4,512,411  
    Multi-family   3,226,918       3,189,808       1,812,500  
    Construction   873,509       970,244       653,246  
    Residential   2,032,671       2,024,027       1,164,956  
    Total mortgage loans   13,475,554       13,521,821       8,143,113  
    Commercial loans   4,710,601       4,617,232       2,440,621  
    Consumer loans   623,709       626,016       299,164  
    Total gross loans   18,809,864       18,765,069       10,882,898  
    Premiums on purchased loans   1,362       1,410       1,474  
    Net deferred fees and unearned discounts   (16,617 )     (7,149 )     (12,456 )
    Total loans $ 18,794,609     $ 18,759,330     $ 10,871,916  
                           

    As part of the merger with Lakeland, we acquired $7.91 billion in loans, net of purchase accounting adjustments.   Compared to the prior quarter, during the three months ended September 30, 2024, the loan portfolio had net increases of $93.4 million of commercial loans, $37.1 million of multi-family loans, $8.6 million of residential mortgage loans, and $4.7 million of commercial mortgage loans, partially offset by net decreases of $96.7 million of construction loans and $2.3 million of consumer loans.   Commercial loans, consisting of commercial real estate, multi-family, commercial and construction loans, represented 85.9% of the loan portfolio as of September 30, 2024, compared to 86.5% as of December 31, 2023.

    For the nine months ended September 30, 2024, loan funding, including advances on lines of credit, totaled $2.78 billion, compared with $2.53 billion for the same period in 2023.

    As of September 30, 2024, the Company’s unfunded loan commitments totaled $2.97 billion, including commitments of $1.84 billion in commercial loans, $231.0 million in construction loans and $225.7 million in commercial mortgage loans. Unfunded loan commitments as of December 31, 2023 and September 30, 2023 were $2.09 billion and $2.18 billion, respectively.

    The loan pipeline, consisting of work-in-process and loans approved pending closing, totaled $1.98 billion as of September 30, 2024, compared to $1.09 billion and $1.70 billion as of December 31, 2023 and September 30, 2023, respectively.

    Total investment securities were $3.17 billion as of September 30, 2024, a $1.04 billion increase from December 31, 2023. This increase was primarily due to the addition of Lakeland.

    Total deposits increased $8.08 billion during the nine months ended September 30, 2024, to $18.38 billion, due primarily to the addition of Lakeland. Total savings and demand deposit accounts increased $6.02 billion to $15.22 billion as of September 30, 2024, while total time deposits increased $2.06 billion to $3.16 billion as of September 30, 2024. The increase in savings and demand deposits was largely attributable to a $2.92 billion increase in interest bearing demand deposits, a $1.58 billion increase in non-interest bearing demand deposits, a $1.03 billion increase in money market deposits and a $495.5 million increase in savings deposits. The increase in time deposits consisted of a $2.01 billion increase in retail time deposits and a $46.5 million increase in brokered time deposits.

    Borrowed funds increased $244.5 million during the nine months ended September 30, 2024, to $2.21 billion. The increase in deposits and borrowings was largely due to the addition of Lakeland. Borrowed funds represented 9.2% of total assets as of September 30, 2024, a decrease from 13.9% as of December 31, 2023.

    Stockholders’ equity increased $930.5 million during the nine months ended September 30, 2024, to $2.62 billion, primarily due to common stock issued for the purchase of Lakeland, net income earned for the period and an improvement in unrealized losses on available for sale debt securities, partially offset by cash dividends paid to stockholders. For the three and nine months ended September 30, 2024, common stock repurchases totaled 1,969 shares at an average cost of $16.36 per share and 88,821 shares at an average cost of $14.87 per share, respectively, all of which were made in connection with withholding to cover income taxes on the vesting of stock-based compensation. As of September 30, 2024, approximately 1.0 million shares remained eligible for repurchase under the current stock repurchase authorization. Book value per share and tangible book value per share(1) as of September 30, 2024 were $20.09 and $13.66, respectively, compared with $22.38 and $16.32, respectively, as of December 31, 2023.

    About the Company

    Provident Financial Services, Inc. is the holding company for Provident Bank, a community-oriented bank offering “commitment you can count on” since 1839. Provident Bank provides a comprehensive array of financial products and services through its network of branches throughout New Jersey, Bucks, Lehigh and Northampton counties in Pennsylvania, as well as Orange, Queens and Nassau Counties in New York. Provident Bank also provides fiduciary and wealth management services through its wholly owned subsidiary, Beacon Trust Company and insurance services through its wholly owned subsidiary, Provident Protection Plus, Inc.

    Post Earnings Conference Call

    Representatives of the Company will hold a conference call for investors on Wednesday, October 30, 2024 at 10:00 a.m. Eastern Time to discuss the Company’s financial results for the quarter ended September 30, 2024. The call may be accessed by dialing 1-888-412-4131 (United States Toll Free) and 1-646-960-0134 (United States Local). Speakers will need to enter conference ID code (3610756) before being met by a live operator. Internet access to the call is also available (listen only) at provident.bank by going to Investor Relations and clicking on “Webcast.”

    Forward Looking Statements

    Certain statements contained herein are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements may be identified by reference to a future period or periods, or by the use of forward-looking terminology, such as “may,” “will,” “believe,” “expect,” “estimate,” “project,” “intend,” “anticipate,” “continue,” or similar terms or variations on those terms, or the negative of those terms. Forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to, those set forth in Item 1A of the Company’s Annual Report on Form 10-K, as supplemented by its Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, and those related to the economic environment, particularly in the market areas in which the Company operates, inflation and unemployment, competitive products and pricing, real estate values, fiscal and monetary policies of the U.S. Government, the effects of any turmoil or negative news in the banking industry, changes in accounting policies and practices that may be adopted by the regulatory agencies and the accounting standards setters, changes in government regulations affecting financial institutions, including regulatory fees and capital requirements, changes in prevailing interest rates, potential goodwill impairment, acquisitions and the integration of acquired businesses, credit risk management, asset-liability management, the financial and securities markets, the availability of and costs associated with sources of liquidity, any failure to realize the anticipated benefits of the merger transaction when expected or at all; the possibility that the transaction may be more expensive to complete than anticipated, including as a result of unexpected conditions, factors or events, potential adverse reactions or changes to business, employee, customer and/or counterparty relationships, including those resulting from the completion of the merger and integration of the companies; and the impact of a potential shutdown of the federal government.

    The Company cautions readers not to place undue reliance on any such forward-looking statements which speak only as of the date they are made. The Company advises readers that the factors listed above could affect the Company’s financial performance and could cause the Company’s actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements. The Company does not assume any duty, and does not undertake, to update any forward-looking statements to reflect events or circumstances after the date of this statement.

    Footnotes

    (1) Annualized adjusted return on average assets, average equity and average tangible equity, annualized adjusted pre-tax pre-provision return on average assets, average equity and average tangible equity, tangible book value per share, annualized adjusted non-interest expense as a percentage of average assets and the efficiency ratio are non-GAAP financial measures. Please refer to the Notes following the Consolidated Financial Highlights which contain the reconciliation of GAAP to non-GAAP financial measures and the associated calculations.

                       
    PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
    Consolidated Financial Highlights
    (Dollars in Thousands, except share data) (Unaudited)
           
      At or for the
    Three Months Ended
      At or for the
    Nine Months Ended
      September 30,   June 30,   September 30,   September 30,   September 30,
        2024       2024       2023       2024       2023  
    Statement of Income                  
    Net interest income $ 183,701     $ 141,506     $ 96,236     $ 418,877     $ 303,666  
    Provision for credit losses   9,299       69,705       12,541       78,684       29,031  
    Non-interest income   26,855       22,275       19,320       69,937       60,861  
    Non-interest expense   136,002       115,394       65,625       323,224       199,485  
    Income (loss) before income tax expense   65,255       (21,318 )     37,390       86,906       136,011  
    Net income (loss)   46,405       (11,485 )     28,547       67,001       101,086  
    Diluted earnings per share $ 0.36     $ (0.11 )   $ 0.38     $ 0.65     $ 1.35  
    Interest rate spread   2.65 %     2.58 %     2.39 %     2.55 %     2.69 %
    Net interest margin   3.31 %     3.21 %     2.96 %     3.18 %     3.19 %
                       
    Profitability                  
    Annualized return on average assets   0.76 %   (0.24 )%     0.81 %     0.47 %     0.98 %
    Annualized adjusted return on average assets (1)   0.95 %   0.06 %     0.86 %     0.66 %     1.02 %
    Annualized return on average equity   6.94 %   (2.17 )%     6.84 %     4.14 %     8.22 %
    Annualized adjusted return on average equity (1)   8.62 %   0.53 %     7.30 %     5.83 %     8.59 %
    Annualized return on average tangible equity (4)   12.06 %   (3.15 )%     9.47 %     7.13 %     11.40 %
    Annualized adjusted return on average tangible equity (1)   14.53 %     2.01 %     10.24 %     9.56 %     12.07 %
    Annualized adjusted non-interest expense to average assets (4)   1.98 %     2.02 %     1.80 %     1.99 %     1.87 %
    Efficiency ratio (6)   57.20 %     57.86 %     54.81 %     58.27 %     53.26 %
                       
    Asset Quality                  
    Non-accrual loans     $ 67,868         $ 89,934     $ 39,529  
    90+ and still accruing                        
    Non-performing loans       67,868           88,061       39,529  
    Foreclosed assets       11,119           9,801       16,487  
    Non-performing assets       78,987           97,862       56,016  
    Non-performing loans to total loans       0.36 %         0.47 %     0.37 %
    Non-performing assets to total assets       0.33 %         0.41 %     0.40 %
    Allowance for loan losses     $ 188,331         $ 191,175     $ 107,563  
    Allowance for loan losses to total non-performing loans       277.50 %         217.09 %     272.11 %
    Allowance for loan losses to total loans       1.00 %         1.02 %     1.01 %
    Net loan charge-offs $ 6,756     $ 1,340     $ 5,510     $ 9,067     $ 7,266  
    Annualized net loan charge-offs to average total loans   0.14 %     0.04 %     0.21 %     0.08 %     0.09 %
                       
    Average Balance Sheet Data                  
    Assets $ 24,248,038     $ 19,197,041     $ 13,976,610     $ 19,198,113     $ 13,848,351  
    Loans, net   18,531,939       14,649,413       10,470,843       14,631,071       10,269,022  
    Earning assets   21,809,226       17,385,819       12,735,938       17,305,446       12,574,437  
    Core deposits   15,394,715       12,257,244       9,212,202       12,271,839       9,408,156  
    Borrowings   2,125,149       2,158,193       1,780,655       2,074,958       1,556,619  
    Interest-bearing liabilities   17,304,569       13,856,039       9,826,064       13,757,895       9,554,204  
    Stockholders’ equity   2,660,470       2,127,469       1,654,920       2,163,856       1,645,093  
    Average yield on interest-earning assets   5.84 %     5.67 %     4.89 %     5.61 %     4.76 %
    Average cost of interest-bearing liabilities   3.19 %     3.09 %     2.50 %     3.06 %     2.07 %
                       

    Notes and Reconciliation of GAAP and Non-GAAP Financial Measures
    (Dollars in Thousands, except share data)

    The Company has presented the following non-GAAP (U.S. Generally Accepted Accounting Principles) financial measures because it believes that these measures provide useful and comparative information to assess trends in the Company’s results of operations and financial condition. Presentation of these non-GAAP financial measures is consistent with how the Company evaluates its performance internally and these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the Company’s industry. Investors should recognize that the Company’s presentation of these non-GAAP financial measures might not be comparable to similarly-titled measures of other companies. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures and the Company strongly encourages a review of its condensed consolidated financial statements in their entirety.

                         
    (1) Annualized Adjusted Return on Average Assets, Equity and Tangible Equity                    
        Three Months Ended   Nine Months Ended
        September 30,   June 30,   September 30,   September 30,   September 30,
          2024       2024       2023       2024       2023  
    Net Income   $ 46,405     $ (11,485 )   $ 28,547     $ 67,001     $ 101,086  
    Merger-related transaction costs     15,567       18,915       2,289       36,684       5,349  
    Less: income tax expense     (4,306 )     (4,625 )     (486 )     (9,274 )     (1,015 )
    Annualized adjusted net income   $ 57,666     $ 2,805     $ 30,350     $ 94,411     $ 105,420  
    Less: Amortization of Intangibles (net of tax)   $ 8,551     $ 4,532     $ 503     $ 13,577     $ 1,560  
    Annualized adjusted net income for annualized adjusted return on average tangible equity   $ 66,217     $ 7,337     $ 30,853     $ 107,988     $ 106,980  
                         
    Annualized Adjusted Return on Average Assets     0.95 %     0.06 %     0.86 %     0.66 %     1.02 %
    Annualized Adjusted Return on Average Equity     8.62 %     0.53 %     7.30 %     5.83 %     8.59 %
    Annualized Adjusted Return on Average Tangible Equity     14.53 %     2.01 %     10.24 %     9.56 %     12.07 %
                         
    (2) Annualized adjusted pre-tax, pre-provision (“PTPP”) returns on average assets, average equity and average tangible equity                    
        Three Months Ended   Nine Months Ended
        September 30,   June 30,   September 30,   September 30,   September 30,
          2024       2024       2023       2024       2023  
    Net income (loss)   $ 46,405     $ (11,485 )   $ 28,547     $ 67,001     $ 101,086  
    Adjustments to net income (loss):                    
    Provision for credit losses     9,299       69,705       12,541       78,684       29,031  
    Net loss on Lakeland bond sale           2,839                    
    Merger-related transaction costs     15,567       18,915       2,289       36,684       5,349  
    Income tax expense (benefit)     18,850       (9,833 )     8,843       19,905       34,925  
    PTPP income   $ 90,121     $ 70,141     $ 52,220     $ 202,274     $ 170,391  
                         
    Annualized PTPP income   $ 358,525     $ 282,106     $ 207,177     $ 270,191     $ 227,812  
    Average assets   $ 24,248,038     $ 19,197,041     $ 13,976,610     $ 19,198,113     $ 13,848,351  
    Average equity   $ 2,660,470     $ 2,127,469     $ 1,654,920     $ 2,163,856     $ 1,645,093  
    Average tangible equity   $ 1,813,327     $ 1,468,630     $ 1,195,787     $ 1,508,594     $ 1,185,222  
                         
    Annualized PTPP return on average assets     1.48 %     1.47 %     1.48 %     1.41 %     1.65 %
    Annualized PTPP return on average equity     13.48 %     13.26 %     12.52 %     12.49 %     13.85 %
    Annualized PTPP return on average tangible equity     19.77 %     19.21 %     17.33 %     17.91 %     19.22 %
                         
    (3) Book and Tangible Book Value per Share        
                September 30,   June 30,   December 31,
                  2024       2024       2023  
    Total stockholders’ equity           $ 2,621,058     $ 2,555,646     $ 1,690,596  
    Less: total intangible assets             839,223       851,507       457,942  
    Total tangible stockholders’ equity           $ 1,781,835     $ 1,704,139     $ 1,232,654  
                         
    Shares outstanding             130,448,599       130,380,393       75,537,186  
                         
    Book value per share (total stockholders’ equity/shares outstanding)           $ 20.09     $ 19.60     $ 22.38  
    Tangible book value per share (total tangible stockholders’ equity/shares outstanding)           $ 13.66     $ 13.07     $ 16.32  
                         
    (4) Annualized Return on Average Tangible Equity                    
        Three Months Ended   Nine Months Ended
        September 30,   June 30,   September 30,   September 30,   September 30,
          2024       2024       2023       2024       2023  
    Total average stockholders’ equity   $ 2,660,470     $ 2,127,469     $ 1,654,920     $ 2,163,856     $ 1,645,093  
    Less: total average intangible assets     847,143       658,839       459,133       655,262       459,871  
    Total average tangible stockholders’ equity   $ 1,813,327     $ 1,468,630     $ 1,195,787     $ 1,508,594     $ 1,185,222  
                         
    Net income (loss)   $ 46,405     $ (11,485 )   $ 28,547     $ 67,001     $ 101,086  
    Less: Amortization of Intangibles, net of tax     8,551       4,532       503       13,577       1,560  
    Total net income (loss)   $ 54,956     $ (6,953 )   $ 29,050     $ 80,578     $ 102,646  
                         
    Annualized return on average tangible equity (net income/total average tangible stockholders’ equity)     12.06 %   (1.90)        %     9.64 %     7.13 %     11.58 %
                         
    (5) Annualized Adjusted Non-Interest Expense to Average Assets                    
        Three Months Ended   Nine Months Ended
        September 30,   June 30,   September 30,   September 30,   September 30,
          2024       2024       2023       2024       2023  
    Reported non-interest expense   $ 136,002     $ 115,394     $ 65,625     $ 323,224     $ 199,485  
    Adjustments to non-interest expense:                    
    Merger-related transaction costs     15,567       18,915       2,289       36,684       5,349  
    Adjusted non-interest expense   $ 120,435     $ 96,479     $ 63,336     $ 286,540     $ 194,136  
                         
    Annualized adjusted non-interest expense   $ 479,122     $ 388,036     $ 251,279     $ 382,751     $ 259,559  
                         
    Average assets   $ 24,248,038     $ 19,197,041     $ 13,976,610     $ 19,198,113     $ 13,848,351  
                         
    Annualized adjusted non-interest expense/average assets     1.98 %     2.02 %     1.80 %     1.99 %     1.87 %
                         
    (6) Efficiency Ratio Calculation                    
        Three Months Ended   Nine Months Ended
        September 30,   June 30,   September 30,   September 30,   September 30,
          2024       2024       2023       2024       2023  
    Net interest income   $ 183,701     $ 141,506     $ 96,236     $ 418,877     $ 303,666  
    Reported non-interest income     26,855       22,275       19,320       69,937       60,861  
    Adjustments to non-interest income:                    
    Net (gain) loss on securities transactions     (2 )     2,973       13       2,972       (37 )
    Adjusted non-interest income     26,853       25,248       19,333       72,909       60,824  
    Total income   $ 210,554     $ 166,754     $ 115,569     $ 491,786     $ 364,490  
                         
    Adjusted non-interest expense   $ 120,435     $ 96,479     $ 63,336     $ 286,540     $ 194,136  
                         
    Efficiency ratio (adjusted non-interest expense/income)     57.20 %     57.86 %     54.80 %     58.27 %     53.26 %
                         
    PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
    Consolidated Statements of Financial Condition
    September 30, 2024 (Unaudited) and December 31, 2023
    (Dollars in Thousands)
           
    Assets September 30, 2024   December 31, 2023
    Cash and due from banks $ 244,064     $ 180,241  
    Short-term investments   25       14  
    Total cash and cash equivalents   244,089       180,255  
    Available for sale debt securities, at fair value   2,725,110       1,690,112  
    Held to maturity debt securities, net of allowance (fair value of $322,427 as of September 30, 2024 (unaudited) and $352,601 as of December 31, 2023)   332,021       363,080  
    Equity securities, at fair value   20,044       1,270  
    Federal Home Loan Bank stock   96,219       79,217  
    Loans held for sale   5,757       1,785  
    Loans held for investment   18,794,609       10,871,916  
    Less allowance for credit losses   191,175       107,200  
    Net loans   18,609,191       10,766,501  
    Foreclosed assets, net   9,801       11,651  
    Banking premises and equipment, net   124,955       70,998  
    Accrued interest receivable   89,866       58,966  
    Intangible assets   839,223       457,942  
    Bank-owned life insurance   403,648       243,050  
    Other assets   548,348       287,768  
    Total assets $ 24,042,515     $ 14,210,810  
           
    Liabilities and Stockholders’ Equity      
    Deposits:      
    Demand deposits $ 13,548,480     $ 8,020,889  
    Savings deposits   1,671,209       1,175,683  
    Certificates of deposit of $250,000 or more   800,005       218,549  
    Other time deposits   2,356,491       877,393  
    Total deposits   18,376,185       10,292,514  
    Mortgage escrow deposits   48,007       36,838  
    Borrowed funds   2,214,512       1,970,033  
    Subordinated debentures   414,184       10,695  
    Other liabilities   368,569       210,134  
    Total liabilities   21,421,457       12,520,214  
           
    Stockholders’ equity:      
    Preferred stock, $0.01 par value, 50,000,000 shares authorized, none issued          
    Common stock, $0.01 par value, 200,000,000 shares authorized, 137,565,966 shares issued and 130,448,599 shares outstanding as of September 30, 2024 and 75,537,186 outstanding as of December 31, 2023.   1,376       832  
    Additional paid-in capital   1,871,343       989,058  
    Retained earnings   972,997       974,542  
    Accumulated other comprehensive loss   (93,049 )     (141,115 )
    Treasury stock   (129,148 )     (127,825 )
    Unallocated common stock held by the Employee Stock Ownership Plan   (2,461 )     (4,896 )
    Common Stock acquired by the Directors’ Deferred Fee Plan   (2,247 )     (2,694 )
    Deferred Compensation – Directors’ Deferred Fee Plan   2,247       2,694  
    Total stockholders’ equity   2,621,058       1,690,596  
    Total liabilities and stockholders’ equity $ 24,042,515     $ 14,210,810  
                   
    PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
    Consolidated Statements of Income
    Three months ended September 30, 2024, June 30, 2024 and September 30, 2023, and nine months ended September 30, 2024 and 2023 (Unaudited)
    (Dollars in Thousands, except per share data)
                       
      Three Months Ended   Nine Months Ended
      September 30,   June 30,   September 30,   September 30,   September 30,
        2024     2024       2023     2024       2023
    Interest and dividend income:                  
    Real estate secured loans $ 197,857   $ 156,318     $ 104,540   $ 461,632     $ 299,830
    Commercial loans   81,183     58,532       33,806     175,815       93,915
    Consumer loans   12,947     8,351       4,746     25,820       13,419
    Available for sale debt securities, equity securities and Federal Home Loan Bank stock   25,974     20,394       11,886     58,698       34,748
    Held to maturity debt securities   2,136     2,357       2,334     6,761       7,059
    Deposits, federal funds sold and other short-term investments   2,425     1,859       885     5,466       2,678
    Total interest income   322,522     247,811       158,197     734,192       451,649
                       
    Interest expense:                  
    Deposits   110,009     81,058       44,923     243,602       108,880
    Borrowed funds   19,923     20,566       16,765     57,871       38,329
    Subordinated debt   8,889     4,681       273     13,842       774
    Total interest expense   138,821     106,305       61,961     315,315       147,983
    Net interest income   183,701     141,506       96,236     418,877       303,666
    Provision charge for credit losses   9,299     69,705       12,541     78,684       29,031
    Net interest income after provision for credit losses   174,402     71,801       83,695     340,193       274,635
                       
    Non-interest income:                  
    Fees   9,816     8,699       6,132     24,426       18,294
    Wealth management income   7,620     7,769       6,992     22,878       20,826
    Insurance agency income   3,631     4,488       3,224     12,912       11,175
    Bank-owned life insurance   4,308     3,323       1,820     9,448       4,838
    Net gain (loss) on securities transactions   2     (2,973 )     13     (2,972 )     37
    Other income   1,478     969       1,139     3,245       5,691
    Total non-interest income   26,855     22,275       19,320     69,937       60,861
                       
    Non-interest expense:                  
    Compensation and employee benefits   63,468     54,888       35,702     158,404       109,724
    Net occupancy expense   12,790     11,142       8,113     32,452       24,474
    Data processing expense   10,481     8,433       5,312     25,698       16,536
    FDIC Insurance   4,180     3,100       1,628     9,553       5,688
    Amortization of intangibles   12,231     6,483       720     19,420       2,231
    Advertising and promotion expense   1,524     1,171       1,133     3,661       3,722
    Merger-related expenses   15,567     18,915       2,289     36,684       5,349
    Other operating expenses   15,761     11,262       10,728     37,352       31,761
    Total non-interest expense   136,002     115,394       65,625     323,224       199,485
    Income (loss) before income tax expense   65,255     (21,318 )     37,390     86,906       136,011
    Income tax expense (benefit)   18,850     (9,833 )     8,843     19,905       34,925
    Net income (loss) $ 46,405   $ (11,485 )   $ 28,547   $ 67,001     $ 101,086
                       
    Basic earnings per share $ 0.36   $ (0.11 )   $ 0.38   $ 0.65     $ 1.35
    Average basic shares outstanding   129,941,845     102,957,521       74,909,083     102,819,042       74,793,530
                       
    Diluted earnings per share $ 0.36   $ (0.11 )   $ 0.38   $ 0.65     $ 1.35
    Average diluted shares outstanding   130,004,870     102,957,521       74,914,205     102,845,261       74,816,606
                                     
    PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
    Net Interest Margin Analysis
    Quarterly Average Balances
    (Dollars in Thousands) (Unaudited)
      September 30, 2024   June 30, 2024   September 30, 2023
      Average Balance   Interest   Average
    Yield/Cost
      Average Balance   Interest   Average
    Yield/Cost
      Average Balance   Interest   Average
    Yield/Cost
    Interest-Earning Assets:                                  
    Deposits $ 179,313   $ 2,425   5.38 %   $ 40,228   $ 1,859   5.38 %   $ 74,183   $ 884   4.73 %
    Federal funds sold and other short-term investments         %     0       %     57     1   4.00 %
    Available for sale debt securities   2,644,262     24,884   3.72 %     2,244,725     17,647   3.14 %     1,724,833     10,127   2.35 %
    Held to maturity debt securities, net (1)   342,217     2,136   2.50 %     352,216     2,357   2.68 %     373,681     2,334   2.50 %
    Equity securities, at fair value   19,654       %     10,373       %     1,068       %
    Federal Home Loan Bank stock   91,841     1,090   4.75 %     88,864     2,747   12.36 %     91,273     1,759   7.71 %
    Net loans: (2)                                  
    Total mortgage loans   13,363,265     197,857   5.83 %     10,674,109     156,318   5.81 %     7,881,193     104,540   5.21 %
    Total commercial loans   4,546,088     81,183   7.05 %     3,514,602     58,532   6.62 %     2,289,267     33,806   5.81 %
    Total consumer loans   622,586     12,947   8.27 %     460,702     8,351   7.29 %     300,383     4,746   6.27 %
    Total net loans   18,531,939     291,987   6.21 %     14,649,413     223,201   6.05 %     10,470,843     143,092   5.37 %
    Total interest-earning assets $ 21,809,226   $ 322,522   5.84 %   $ 17,385,819   $ 247,811   5.67 %   $ 12,735,938   $ 158,197   4.89 %
                                       
    Non-Interest Earning Assets:                                  
    Cash and due from banks   341,505             37,621             82,522        
    Other assets   2,097,307             1,773,601             1,158,150        
    Total assets $ 24,248,038           $ 19,197,041           $ 13,976,610        
                                       
    Interest-Bearing Liabilities:                                  
    Demand deposits $ 9,942,053   $ 74,864   3.00 %   $ 7,935,543   $ 58,179   2.95 %   $ 5,741,052   $ 35,290   2.44 %
    Savings deposits   1,711,502     1,006   0.23 %     1,454,784     832   0.23 %     1,240,951     592   0.19 %
    Time deposits   3,112,598     34,139   4.36 %     2,086,433     22,047   4.25 %     1,052,793     9,041   3.41 %
    Total deposits   14,766,153     110,009   2.96 %     11,476,760     81,058   2.84 %     8,034,796     44,923   2.22 %
                                       
    Borrowed funds   2,125,149     19,923   3.73 %     2,158,193     20,566   3.83 %     1,780,655     16,765   3.74 %
    Subordinated debentures   413,267     8,889   8.56 %     221,086     4,681   8.52 %     10,613     273   10.24 %
    Total interest-bearing liabilities   17,304,569     138,821   3.19 %     13,856,039     106,305   3.09 %     9,826,064     61,961   2.50 %
                                       
    Non-Interest Bearing Liabilities:                                  
    Non-interest bearing deposits   3,741,160             2,866,917             2,230,199        
    Other non-interest bearing liabilities   541,839             346,616             265,427        
    Total non-interest bearing liabilities   4,282,999             3,213,533             2,495,626        
    Total liabilities   21,587,568             17,069,572             12,321,690        
    Stockholders’ equity   2,660,470             2,127,469             1,654,920        
    Total liabilities and stockholders’ equity $ 24,248,038           $ 19,197,041           $ 13,976,610        
                                       
    Net interest income     $ 183,701           $ 141,506           $ 96,236    
                                       
    Net interest rate spread         2.65 %           2.58 %           2.39 %
    Net interest-earning assets $ 4,504,657           $ 3,529,780           $ 2,909,874        
                                       
    Net interest margin (3)         3.31 %           3.21 %           2.96 %
                                       
    Ratio of interest-earning assets to total interest-bearing liabilities 1.26x           1.25x           1.30x        
       
    (1 ) Average outstanding balance amounts shown are amortized cost, net of allowance for credit losses.
    (2 ) Average outstanding balances are net of the allowance for loan losses, deferred loan fees and expenses, loan premiums and discounts and include non-accrual loans.
    (3 ) Annualized net interest income divided by average interest-earning assets.
         
    The following table summarizes the quarterly net interest margin for the previous five quarters.      
      9/30/24   6/30/24   3/31/24   12/31/23   9/30/23
      3rd Qtr.   2nd Qtr.   1st Qtr.   4th Qtr.   3rd Qtr.
    Interest-Earning Assets:                  
    Securities 3.69 %   3.40 %   2.87 %   2.79 %   2.67 %
    Net loans 6.21 %   6.05 %   5.51 %   5.50 %   5.37 %
    Total interest-earning assets 5.84 %   5.67 %   5.06 %   5.04 %   4.89 %
                       
    Interest-Bearing Liabilities:                  
    Total deposits 2.96 %   2.84 %   2.60 %   2.47 %   2.22 %
    Total borrowings 3.73 %   3.83 %   3.60 %   3.71 %   3.74 %
    Total interest-bearing liabilities 3.19 %   3.09 %   2.80 %   2.71 %   2.50 %
                       
    Interest rate spread 2.65 %   2.58 %   2.26 %   2.33 %   2.39 %
    Net interest margin 3.31 %   3.21 %   2.87 %   2.92 %   2.96 %
                       
    Ratio of interest-earning assets to interest-bearing liabilities 1.26x   1.25x   1.28x   1.28x   1.30x
                       
    PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
    Net Interest Margin Analysis
    Average Year to Date Balances
    (Dollars in Thousands) (Unaudited)
                           
      September 30, 2024   September 30, 2023
      Average       Average   Average       Average
      Balance   Interest   Yield/Cost   Balance   Interest   Yield/Cost
    Interest-Earning Assets:                      
    Deposits $ 39,280   $ 5,466   5.38 %   $ 69,696   $ 2,676   5.13 %
    Federal funds sold and other short term investments         %     58     2   5.34 %
    Available for sale debt securities   2,189,671     52,553   3.19 %     1,777,861     30,819   2.31 %
    Held to maturity debt securities, net (1)   350,529     6,761   2.57 %     379,144     7,059   2.48 %
    Equity securities, at fair value   10,050       %     1,022       %
    Federal Home Loan Bank stock   84,845     6,145   9.66 %     77,634     3,929   6.75 %
    Net loans: (2)                      
    Total mortgage loans   10,682,974     461,632   5.70 %     7,740,591     299,830   5.12 %
    Total commercial loans   3,487,600     175,815   6.69 %     2,225,725     93,915   5.60 %
    Total consumer loans   460,497     25,820   7.49 %     302,706     13,419   5.93 %
    Total net loans   14,631,071     663,267   5.99 %     10,269,022     407,164   5.25 %
    Total interest-earning assets $ 17,305,446   $ 734,192   5.61 %   $ 12,574,437   $ 451,649   4.76 %
                           
    Non-Interest Earning Assets:                      
    Cash and due from banks   229,336             121,801        
    Other assets   1,663,331             1,152,113        
    Total assets $ 19,198,113           $ 13,848,351        
                           
    Interest-Bearing Liabilities:                      
    Demand deposits $ 7,931,251   $ 174,609   2.94 %   $ 5,710,855   $ 85,822   2.01 %
    Savings deposits   1,444,135     2,476   0.23 %     1,315,157     1,582   0.16 %
    Time deposits   2,091,806     66,517   4.25 %     961,010     21,476   2.99 %
    Total deposits   11,467,192     243,602   2.84 %     7,987,022     108,880   1.82 %
    Borrowed funds   2,074,958     57,871   3.73 %     1,556,619     38,329   3.29 %
    Subordinated debentures   215,745     13,842   8.57 %     10,563     774   9.80 %
    Total interest-bearing liabilities $ 13,757,895   $ 315,315   3.06 %   $ 9,554,204   $ 147,983   2.07 %
                           
    Non-Interest Bearing Liabilities:                      
    Non-interest bearing deposits   2,896,453             2,382,144        
    Other non-interest bearing liabilities   379,909             266,910        
    Total non-interest bearing liabilities   3,276,362             2,649,054        
    Total liabilities   17,034,257             12,203,258        
    Stockholders’ equity   2,163,856             1,645,093        
    Total liabilities and stockholders’ equity $ 19,198,113           $ 13,848,351        
                           
    Net interest income     $ 418,877           $ 303,666    
                           
    Net interest rate spread         2.55 %           2.69 %
    Net interest-earning assets $ 3,547,551           $ 3,020,233        
                           
    Net interest margin (3)         3.18 %           3.19 %
                           
    Ratio of interest-earning assets to total interest-bearing liabilities 1.26x           1.32x        
                           
                           
    (1) Average outstanding balance amounts shown are amortized cost, net of allowance for credit losses.
    (2) Average outstanding balance are net of the allowance for loan losses, deferred loan fees and expenses, loan premium and discounts and include non-accrual loans.
    (3) Annualized net interest income divided by average interest-earning assets.
     
    The following table summarizes the year-to-date net interest margin for the previous three years.
                 
      Nine Months Ended  
      September 30, 2024   September 30, 2023   September 23, 2022  
    Interest-Earning Assets:            
    Securities 3.33 %   2.57 %   1.72 %  
    Net loans 5.99 %   5.25 %   4.01 %  
    Total interest-earning assets 5.61 %   4.76 %   3.51 %  
                 
    Interest-Bearing Liabilities:            
    Total deposits 2.84 %   1.82 %   0.33 %  
    Total borrowings 3.73 %   3.29 %   0.97 %  
    Total interest-bearing liabilities 3.06 %   2.07 %   0.38 %  
                 
    Interest rate spread 2.55 %   2.69 %   3.13 %  
    Net interest margin 3.18 %   3.19 %   3.24 %  
                 
    Ratio of interest-earning assets to interest-bearing liabilities 1.26x   1.32x   1.38x  

    SOURCE: Provident Financial Services, Inc.

    CONTACT: Investor Relations, 1-732-590-9300 Web Site: http://www.Provident.Bank

    The MIL Network

  • MIL-OSI: Precision Drilling Announces 2024 Third Quarter Unaudited Financial Results

    Source: GlobeNewswire (MIL-OSI)

    CALGARY, Alberta, Oct. 29, 2024 (GLOBE NEWSWIRE) — This news release contains “forward-looking information and statements” within the meaning of applicable securities laws. For a full disclosure of the forward-looking information and statements and the risks to which they are subject, see the “Cautionary Statement Regarding Forward-Looking Information and Statements” later in this news release. This news release contains references to certain Financial Measures and Ratios, including Adjusted EBITDA (earnings before income taxes, loss (gain) on investments and other assets, gain on repurchase of unsecured senior notes, finance charges, foreign exchange, gain on asset disposals and depreciation and amortization), Funds Provided by (Used in) Operations, Net Capital Spending, Working Capital and Total Long-term Financial Liabilities. These terms do not have standardized meanings prescribed under International Financial Reporting Standards (IFRS) Accounting Standards and may not be comparable to similar measures used by other companies. See “Financial Measures and Ratios” later in this news release.

    Precision Drilling Corporation (“Precision” or the “Company”) (TSX:PD; NYSE:PDS) delivered strong third quarter financial results, demonstrating the resilience of the business and its robust cash flow potential. Year to date, Precision has already achieved the low end of its debt reduction target range and is well on track to allocate 25% to 35% of its free cash flow to share buybacks in 2024.

    Financial Highlights

    • Revenue was $477 million and exceeded the $447 million realized in the third quarter of 2023 as activity increased in Canada and internationally, which more than offset lower activity in the U.S.
    • Adjusted EBITDA(1) was $142 million, including a share-based compensation recovery of $0.2 million. In 2023, third quarter Adjusted EBITDA was $115 million and included share-based compensation charges of $31 million.
    • Net earnings was $39 million or $2.77 per share, nearly doubling the $20 million or $1.45 per share in 2023.
    • Completion and Production Services revenue increased 27% over the same period last year to $73 million, while Adjusted EBITDA rose 40% to $20 million, reflecting the successful integration of the CWC Energy Services (CWC) acquisition in late 2023.
    • Internationally, revenue increased 21% over the third quarter of last year as the Company realized US$35 million of contract drilling revenue versus US$29 million in 2023. Revenue for the third quarter of 2024 was negatively impacted by fewer rig moves and planned rig recertifications that accounted for 44 non-billable utilization days.
    • Debt reduction during the quarter was $49 million and total $152 million year to date. Share repurchases during the quarter were $17 million and total $50 million year to date.
    • Increased our 2024 planned capital expenditures from $195 million to $210 million to fund multiple contracted rig upgrades and the strategic purchase of drill pipe for use in 2025.

    Operational Highlights

    • Canada’s activity increased 25%, averaging 72 active drilling rigs versus 57 in the third quarter of 2023. Our Super Triple and Super Single rigs are in high demand and approaching full utilization.
    • Canadian revenue per utilization day was $32,325 and comparable to the $32,224 in the same period last year.
    • U.S. activity averaged 35 drilling rigs compared to 41 for the third quarter of 2023.
    • U.S. revenue per utilization day was US$32,949 versus US$35,135 in the same quarter last year.
    • International activity increased 33% compared to the third quarter of 2023, with eight drilling rigs fully contracted this year following rig reactivations in 2023. International revenue per utilization day was US$47,223 compared to US$51,570 in the third quarter of 2023 due to fewer rig moves and planned rig recertifications completed in 2024.
    • Service rig operating hours increased 34% over the same quarter last year totaling 62,835 hours driven by the CWC acquisition.
    • Formed a strategic Joint Partnership (Partnership) with Indigenous partners to provide well servicing operations in northeast British Columbia.

    (1) See “FINANCIAL MEASURES AND RATIOS.”

    MANAGEMENT COMMENTARY

    “Precision’s international and Canadian businesses led our third quarter results, with revenue, Adjusted EBITDA, and net income all improving over the same period last year, demonstrating the resilience of our High Performance, High Value strategy and geographic exposure. Our cash flow conversion this quarter enabled us to repay debt, buy back shares, and continue to invest in our Super Series fleet. We have already achieved the low end of our debt repayment target range for this year and expect to be less than a year away from meeting our long-term target of a Net Debt to Adjusted EBITDA ratio(1) of less than one time.

    “Canadian fundamentals for heavy oil, condensate, and LNG remain strong due to the additional takeaway capacity. The Trans Mountain oil pipeline expansion is driving higher and stable returns for producers, who are accelerating heavy oil and condensate targeted drilling plans, while Canada’s first LNG project is expected to stabilize natural gas pricing and further stimulate activity in the Montney in 2025. As the leading provider of high-quality and reliable services in Canada, demand for our Super Series fleet remains high. Today, we have 75 rigs operating, with our Super Triple and Super Single rigs nearly fully utilized. We expect strong customer demand and utilization to continue well beyond 2025.

    “In the U.S., our rig count has been range-bound for the last several months, with 35 rigs operating today. Volatile commodity prices, customer consolidation, and budget exhaustion are all headwinds that we expect will continue to suppress activity for the remainder of the year. We are encouraged by recent momentum in our contract book with seven new contracts secured for oil and natural gas drilling projects that are expected to begin late this year for 2025 drilling programs. Looking ahead, we anticipate that the next wave of additional Gulf Coast LNG export facilities, coal plant retirements, and a build-out of AI data centers should drive further natural gas drilling and support sustained natural gas demand.

    “Precision’s international operations provide a stable foundation for earnings and cash flow as our rigs are under long-term contracts that extend into 2028. Our well servicing business further complements our stability as we remain the premier well service provider in Canada where demand continues to outpace manned service rigs. In 2023, we repositioned these businesses with rig reactivations and our CWC acquisition and as a result, each business is on track to increase its 2024 Adjusted EBITDA by approximately 50% over the prior year.

    “I am proud of the discipline Precision continues to show throughout the organization and we remain focused on our strategic priorities, which include generating free cash flow, improving capital returns to shareholders, and delivering operational excellence. With robust Canadian market fundamentals, an improving long-term outlook for the U.S., and a focused strategy, I am confident we will continue to drive higher total shareholder returns. I would like to thank our team for executing at the highest operating levels and generating strong financial performance and value for our customers,” stated Kevin Neveu, Precision’s President and CEO.

    (1) See “FINANCIAL MEASURES AND RATIOS.”

    SELECT FINANCIAL AND OPERATING INFORMATION

    Financial Highlights

      For the three months ended September 30,     For the nine months ended September 30,  
    (Stated in thousands of Canadian dollars, except per share amounts)   2024       2023     % Change       2024       2023     % Change  
    Revenue   477,155       446,754       6.8       1,434,157       1,430,983       0.2  
    Adjusted EBITDA(1)   142,425       114,575       24.3       400,695       459,887       (12.9 )
    Net earnings   39,183       19,792       98.0       96,400       142,522       (32.4 )
    Cash provided by operations   79,674       88,500       (10.0 )     319,292       330,316       (3.3 )
    Funds provided by operations(1)   113,322       91,608       23.7       342,837       388,220       (11.7 )
                                       
    Cash used in investing activities   38,852       34,278       13.3       141,032       157,157       (10.3 )
    Capital spending by spend category(1)                                  
    Expansion and upgrade   7,709       13,479       (42.8 )     30,501       39,439       (22.7 )
    Maintenance and infrastructure   56,139       38,914       44.3       127,297       108,463       17.4  
    Proceeds on sale   (5,647 )     (6,698 )     (15.7 )     (21,825 )     (20,724 )     5.3  
    Net capital spending(1)   58,201       45,695       27.4       135,973       127,178       6.9  
                                       
    Net earnings per share:                                  
    Basic   2.77       1.45       91.0       6.74       10.45       (35.5 )
    Diluted   2.31       1.45       59.3       6.73       9.84       (31.6 )
    Weighted average shares outstanding:                                  
    Basic   14,142       13,607       3.9       14,312       13,643       4.9  
    Diluted   14,890       13,610       9.4       14,317       14,858       (3.6 )

    (1) See “FINANCIAL MEASURES AND RATIOS.”

    Operating Highlights

      For the three months ended September 30,     For the nine months ended September 30,  
      2024     2023     % Change     2024     2023     % Change  
    Contract drilling rig fleet   214       224       (4.5 )     214       224       (4.5 )
    Drilling rig utilization days:                                  
    U.S.   3,196       3,815       (16.2 )     9,885       13,823       (28.5 )
    Canada   6,586       5,284       24.6       17,667       15,247       15.9  
    International   736       554       32.9       2,192       1,439       52.3  
    Revenue per utilization day:                                  
    U.S. (US$)   32,949       35,135       (6.2 )     33,011       35,216       (6.3 )
    Canada (Cdn$)   32,325       32,224       0.3       34,497       32,583       5.9  
    International (US$)   47,223       51,570       (8.4 )     51,761       51,306       0.9  
    Operating costs per utilization day:                                  
    U.S. (US$)   22,207       21,655       2.5       22,113       20,217       9.4  
    Canada (Cdn$)   19,448       18,311       6.2       20,196       19,239       5.0  
                                       
    Service rig fleet   165       121       36.4       165       121       36.4  
    Service rig operating hours   62,835       46,894       34.0       194,390       144,944       34.1  


    Drilling Activity

      Average for the quarter ended 2023   Average for the quarter ended 2024  
      Mar. 31     June 30     Sept. 30     Dec. 31     Mar. 31     June 30     Sept. 30  
    Average Precision active rig count(1):                                        
    U.S.   60       51       41       45       38       36       35  
    Canada   69       42       57       64       73       49       72  
    International   5       5       6       8       8       8       8  
    Total   134       98       104       117       119       93       115  

    (1) Average number of drilling rigs working or moving.

    Financial Position

    (Stated in thousands of Canadian dollars, except ratios) September 30, 2024     December 31, 2023(2)  
    Working capital(1)   166,473       136,872  
    Cash   24,304       54,182  
    Long-term debt   787,008       914,830  
    Total long-term financial liabilities(1)   858,765       995,849  
    Total assets   2,887,996       3,019,035  
    Long-term debt to long-term debt plus equity ratio (1)   0.32       0.37  

    (1) See “FINANCIAL MEASURES AND RATIOS.”
    (2) Comparative period figures were restated due to a change in accounting policy. See “CHANGE IN ACCOUNTING POLICY.”

    Summary for the three months ended September 30, 2024:

    • Revenue increased to $477 million compared with $447 million in the third quarter of 2023 as a result of higher Canadian and international activity, partially offset by lower U.S. activity, day rates and lower idle but contract rig revenue.
    • Adjusted EBITDA was $142 million as compared with $115 million in 2023, primarily due to increased Canadian and international results and lower share-based compensation. Please refer to “Other Items” later in this news release for additional information on share-based compensation.
    • Adjusted EBITDA as a percentage of revenue was 30% as compared with 26% in 2023.
    • Generated cash from operations of $80 million, reduced debt by $49 million, repurchased $17 million of shares, and ended the quarter with $24 million of cash and more than $500 million of available liquidity.
    • Revenue per utilization day, excluding the impact of idle but contracted rigs was US$32,949 compared with US$33,543 in 2023, a decrease of 2%. Sequentially, revenue per utilization day, excluding idle but contracted rigs, was largely consistent with the second quarter of 2024. U.S. revenue per utilization day was US$32,949 compared with US$35,135 in 2023. The decrease was primarily the result of lower fleet average day rates and idle but contracted rig revenue, partially offset by higher recoverable costs. We did not recognize revenue from idle but contracted rigs in the quarter as compared with US$6 million in 2023.
    • U.S. operating costs per utilization day increased to US$22,207 compared with US$21,655 in 2023. The increase is mainly due to higher recoverable costs and fixed costs being spread over fewer activity days, partially offset by lower repairs and maintenance. Sequentially, operating costs per utilization day were largely consistent with the second quarter of 2024.
    • Canadian revenue per utilization day was $32,325, largely consistent with the $32,224 realized in 2023. Sequentially, revenue per utilization day decreased $3,750 due to our rig mix, partially offset by higher fleet-wide average day rates.
    • Canadian operating costs per utilization day increased to $19,448, compared with $18,311 in 2023, resulting from higher repairs and maintenance and rig reactivation costs. Sequentially, daily operating costs decreased $2,204 due to lower labour expenses due to rig mix, recoverable expenses and repairs and maintenance.
    • Internationally, third quarter revenue increased 21% over 2023 as we realized revenue of US$35 million versus US$29 million in the prior year. Our higher revenue was primarily the result of a 33% increase in activity, partially offset by lower average revenue per utilization day. International revenue per utilization day was US$47,223 compared with US$51,570 in 2023 due to fewer rig moves and planned rig recertifications that accounted for 44 non-billable utilization days.
    • Completion and Production Services revenue was $73 million, an increase of $16 million from 2023, as our third quarter service rig operating hours increased 34%.
    • General and administrative expenses were $23 million as compared with $44 million in 2023 primarily due to lower share-based compensation charges.
    • Net finance charges were $17 million, a decrease of $3 million compared with 2023 as a result of lower interest expense on our outstanding debt balance.
    • Capital expenditures were $64 million compared with $52 million in 2023 and by spend category included $8 million for expansion and upgrades and $56 million for the maintenance of existing assets, infrastructure, and intangible assets.
    • Increased expected capital spending in 2024 to $210 million, an increase of $15 million, due to the strategic purchase of drill pipe before new import tariffs take effect and additional customer-backed upgrades.
    • Income tax expense for the quarter was $14 million as compared with $8 million in 2023. During the third quarter, we continue to not recognize deferred tax assets on certain international operating losses.
    • Reduced debt by $49 million from the redemption of US$33 million of 2026 unsecured senior notes and US$3 million repayment of our U.S. Real Estate Credit Facility.
    • Renewed our Normal Course Issuer Bid (NCIB) and repurchased $17 million of common shares during the third quarter.

    Summary for the nine months ended September 30, 2024:

    • Revenue for the first nine months of 2024 was $1,434 million, consistent 2023.
    • Adjusted EBITDA for the period was $401 million as compared with $460 million in 2023. Our lower Adjusted EBITDA was primarily attributed to decreased U.S. drilling results and higher share-based compensation, partially offset by the strengthening of Canadian and international results.
    • Cash provided by operations was $319 million as compared with $330 million in 2023. Funds provided by operations were $343 million, a decrease of $45 million from the comparative period.
    • General and administrative costs were $97 million, an increase of $14 million from 2023 primarily due to higher share-based compensation charges.
    • Net finance charges were $53 million, $10 million lower than 2023 due to our lower interest expense on our outstanding debt balance.
    • Capital expenditures were $158 million in 2024, an increase of $10 million from 2023. Capital spending by spend category included $31 million for expansion and upgrades and $127 million for the maintenance of existing assets, infrastructure, and intangible assets.
    • Reduced debt by $152 million from the redemption of US$89 million of 2026 unsecured senior notes and $31 million repayment of our Canadian and U.S. Real Estate Credit Facilities.
    • Repurchased $50 million of common shares under our NCIB.

    STRATEGY

    Precision’s vision is to be globally recognized as the High Performance, High Value provider of land drilling services. Our strategic priorities for 2024 are focused on increasing our capital returns to shareholders by delivering best-in-class service and generating free cash flow.

    Precision’s 2024 strategic priorities and the progress made during the third quarter are as follows:

    1. Concentrate organizational efforts on leveraging our scale and generating free cash flow.
      • Generated cash from operations of $80 million, bringing our year to date total to $319 million.
      • Increased utilization of our Super Single and Double rigs in the third quarter, driving Canadian drilling activity up 25% year over year.
      • Increased our third quarter Completion and Production Services operating hours and Adjusted EBITDA 34% and 40%, respectively, year over year. Achieved our $20 million annual synergies target from the CWC acquisition, which closed in November 2023.
      • Internationally, we realized US$35 million of contract drilling revenue versus US$29 million in 2023. Revenue for the third quarter of 2024 was negatively impacted by fewer rig moves and planned rig recertifications that accounted for 44 non-billable utilization days.
    2. Reduce debt by between $150 million and $200 million and allocate 25% to 35% of free cash flow before debt repayments for share repurchases.
      • Reduced debt by redeeming US$33 million of our 2026 unsecured senior notes and repaying US$3 million of our U.S. Real Estate Credit Facility. For the first nine months of the year, we have reduced debt by $152 million and already achieved the low end of our debt repayment target range.
      • Returned $17 million of capital to shareholders through share repurchases. Year to date we allocated $50 million of our free cash flow to share buybacks, which represents over 25% of free cash flow for the first nine months of the year and within our annual target range of 25% to 35%.
      • Remain firmly committed to our long-term debt reduction target of $600 million between 2022 and 2026 ($410 million achieved as of September 30, 2024), while moving direct shareholder capital returns towards 50% of free cash flow.
    3. Continue to deliver operational excellence in drilling and service rig operations to strengthen our competitive position and extend market penetration of our Alpha™ and EverGreen™ products.
      • Increased our Canadian drilling rig utilization days and well servicing rig operating hours over the third quarter of 2023, maintaining our position as the leading provider of high-quality and reliable services in Canada.
      • Nearly doubled our EverGreen™ revenue from the third quarter of 2023.
      • Continued to expand our EverGreen™ product offering on our Super Single rigs with hydrogen injection systems. EverGreenHydrogen™ reduces diesel consumption resulting in lower operating costs and greenhouse gas emissions for our customers.

    OUTLOOK

    The long-term outlook for global energy demand remains positive with rising demand for all types of energy including oil and natural gas driven by economic growth, increasing demand from third-world regions, and emerging energy sources of power demand. Oil prices are constructive, and producers remain disciplined with their production plans while geopolitical issues continue to threaten supply. In Canada, the recent commissioning of the Trans Mountain pipeline expansion and the startup of LNG Canada projected in 2025 are expected to provide significant tidewater access for Canadian crude oil and natural gas, supporting additional Canadian drilling activity. In the U.S., the next wave of LNG projects is expected to add approximately 11 bcf/d of export capacity from 2025 to 2028, supporting additional U.S. natural gas drilling activity. Coal retirements and a build-out of AI data centers could provide further support for natural gas drilling.

    In Canada, we currently have 75 rigs operating and expect this activity level to continue until spring breakup, except for the traditional slowdown over Christmas. Our Canadian drilling activity continues to outpace 2023 due to increased heavy oil drilling activity and strong Montney activity driven by robust condensate demand and pricing. Since the startup of the Trans Mountain pipeline expansion in May, customer activity in heavy oil targeted areas has exceeded expectations, resulting in near full utilization of our Super Single fleet. Customers are benefiting from improved commodity pricing and a weak Canadian dollar. Our Super Triple fleet, the preferred rig for Montney drilling, is also nearly fully utilized and with the expected startup of LNG Canada in mid-2025, demand could exceed supply.

    In recent years, the Canadian market has witnessed stronger second quarter drilling activity due to the higher percentage of wells drilled on pads in both the Montney and in heavy oil developments. Once a pad-equipped drilling rig is mobilized to site, it can walk from well to well and avoid spring break up road restrictions. We expect this higher activity trend to continue in the second quarter of 2025.

    In the U.S., we currently have 35 rigs operating as drilling activity remains constrained by volatile commodity prices, customer consolidation and budget exhaustion. We view these headwinds as short-term in nature, which will continue to suppress activity for the remainder of the year and into 2025. However, looking further ahead, we expect that a new budget cycle, the next wave of Gulf Coast LNG export facilities, and new sources of domestic power demand should begin to stimulate drilling.

    Internationally, we expect to have eight rigs running for the remainder of 2024, representing an approximate 40% increase in activity compared to 2023. All eight rigs are contracted through 2025 as well. We continue to bid our remaining idle rigs within the region and remain optimistic about our ability to secure additional rig activations.

    As the premier well service provider in Canada, the outlook for this business remains positive. We expect the Trans Mountain pipeline expansion and LNG Canada to drive more service-related activity, while increased regulatory spending requirements are expected to result in more abandonment work. Customer demand should remain strong, and with continued labor constraints, we expect firm pricing into the foreseeable future.

    We believe cost inflation is largely behind us and will continue to look for opportunities to lower costs.

    Contracts

    The following chart outlines the average number of drilling rigs under term contract by quarter as at October 29, 2024. For those quarters ending after September 30, 2024, this chart represents the minimum number of term contracts from which we will earn revenue. We expect the actual number of contracted rigs to vary in future periods as we sign additional term contracts.

    As at October 29, 2024   Average for the quarter ended 2023     Average     Average for the quarter ended 2024     Average  
        Mar. 31     June 30     Sept. 30     Dec. 31     2023     Mar. 31     June 30     Sept. 30     Dec. 31     2024  
    Average rigs under term contract:                                                            
    U.S.     40       37       32       28       34       20       17       17       16       18  
    Canada     19       23       23       23       22       24       22       23       24       23  
    International     4       5       7       7       6       8       8       8       8       8  
    Total     63       65       62       58       62       52       47       48       48       49  


    SEGMENTED FINANCIAL RESULTS

    Precision’s operations are reported in two segments: Contract Drilling Services, which includes our drilling rig, oilfield supply and manufacturing divisions; and Completion and Production Services, which includes our service rig, rental and camp and catering divisions.

      For the three months ended September 30,     For the nine months ended September 30,  
    (Stated in thousands of Canadian dollars)   2024     2023     % Change       2024     2023     % Change  
    Revenue:                                  
    Contract Drilling Services   406,155       390,728       3.9       1,215,125       1,257,762       (3.4 )
    Completion and Production Services   73,074       57,573       26.9       225,987       178,257       26.8  
    Inter-segment eliminations   (2,074 )     (1,547 )     34.1       (6,955 )     (5,036 )     38.1  
        477,155       446,754       6.8       1,434,157       1,430,983       0.2  
    Adjusted EBITDA:(1)                                  
    Contract Drilling Services   133,235       131,701       1.2       406,662       468,302       (13.2 )
    Completion and Production Services   19,741       14,118       39.8       50,786       39,031       30.1  
    Corporate and Other   (10,551 )     (31,244 )     (66.2 )     (56,753 )     (47,446 )     19.6  
        142,425       114,575       24.3       400,695       459,887       (12.9 )

    (1) See “FINANCIAL MEASURES AND RATIOS.”

    SEGMENT REVIEW OF CONTRACT DRILLING SERVICES

      For the three months ended September 30,     For the nine months ended September 30,  
    (Stated in thousands of Canadian dollars, except where noted)   2024       2023     % Change       2024       2023     % Change  
    Revenue   406,155       390,728       3.9       1,215,125       1,257,762       (3.4 )
    Expenses:                                  
    Operating   262,933       247,937       6.0       776,210       759,750       2.2  
    General and administrative   9,987       11,090       (9.9 )     32,253       29,710       8.6  
    Adjusted EBITDA(1)   133,235       131,701       1.2       406,662       468,302       (13.2 )
    Adjusted EBITDA as a percentage of revenue(1)   32.8 %     33.7 %           33.5 %     37.2 %      

    (1) See “FINANCIAL MEASURES AND RATIOS.”

    United States onshore drilling statistics:(1) 2024     2023  
      Precision     Industry(2)     Precision     Industry(2)  
    Average number of active land rigs for quarters ended:                      
    March 31   38       602       60       744  
    June 30   36       583       51       700  
    September 30   35       565       41       631  
    Year to date average   36       583       51       692  

    (1) United States lower 48 operations only.
    (2) Baker Hughes rig counts.

    Canadian onshore drilling statistics:(1) 2024     2023  
      Precision     Industry(2)     Precision     Industry(2)  
    Average number of active land rigs for quarters ended:                      
    March 31   73       208       69       221  
    June 30   49       134       42       117  
    September 30   72       207       57       188  
    Year to date average   65       183       56       175  

    (1) Canadian operations only.
    (2) Baker Hughes rig counts.

    SEGMENT REVIEW OF COMPLETION AND PRODUCTION SERVICES

      For the three months ended September 30,     For the nine months ended September 30,  
    (Stated in thousands of Canadian dollars, except where noted)   2024       2023     % Change       2024       2023        
    Revenue   73,074       57,573       26.9       225,987       178,257       26.8  
    Expenses:                                  
    Operating   50,608       41,612       21.6       167,128       133,325       25.4  
    General and administrative   2,725       1,843       47.9       8,073       5,901       36.8  
    Adjusted EBITDA(1)   19,741       14,118       39.8       50,786       39,031       30.1  
    Adjusted EBITDA as a percentage of revenue(1)   27.0 %     24.5 %           22.5 %     21.9 %      
    Well servicing statistics:                                  
    Number of service rigs (end of period)   165       121       36.4       165       121       36.4  
    Service rig operating hours   62,835       46,894       34.0       194,390       144,944       34.1  
    Service rig operating hour utilization   41 %     42 %           43 %     44 %      

    (1) See “FINANCIAL MEASURES AND RATIOS.”

    OTHER ITEMS

    Share-based Incentive Compensation Plans

    We have several cash and equity-settled share-based incentive plans for non-management directors, officers, and other eligible employees. Our accounting policies for each share-based incentive plan can be found in our 2023 Annual Report.

    A summary of expense amounts under these plans during the reporting periods are as follows:

      For the three months ended September 30,     For the nine months ended September 30,  
    (Stated in thousands of Canadian dollars) 2024     2023     2024     2023  
    Cash settled share-based incentive plans   (1,626 )     30,105       28,810       20,091  
    Equity settled share-based incentive plans   1,440       701       3,517       1,834  
    Total share-based incentive compensation plan expense   (186 )     30,806       32,327       21,925  
                           
    Allocated:                      
    Operating   221       7,692       8,159       6,732  
    General and Administrative   (407 )     23,114       24,168       15,193  
        (186 )     30,806       32,327       21,925  


    CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES

    Because of the nature of our business, we are required to make judgements and estimates in preparing our Condensed Consolidated Interim Financial Statements that could materially affect the amounts recognized. Our judgements and estimates are based on our past experiences and assumptions we believe are reasonable in the circumstances. The critical judgements and estimates used in preparing the Condensed Consolidated Interim Financial Statements are described in our 2023 Annual Report.

    EVALUATION OF CONTROLS AND PROCEDURES

    Based on their evaluation as at September 30, 2024, Precision’s Chief Executive Officer and Chief Financial Officer concluded that the Corporation’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the United States Securities Exchange Act of 1934, as amended (the Exchange Act)), are effective to ensure that information required to be disclosed by the Corporation in reports that are filed or submitted to Canadian and U.S. securities authorities is recorded, processed, summarized and reported within the time periods specified in Canadian and U.S. securities laws. In addition, as at September 30, 2024, there were no changes in the internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) that occurred during the three months ended September 30, 2024 that have materially affected, or are reasonably likely to materially affect, the Corporation’s internal control over financial reporting. Management will continue to periodically evaluate the Corporation’s disclosure controls and procedures and internal control over financial reporting and will make any modifications from time to time as deemed necessary.

    Based on their inherent limitations, disclosure controls and procedures and internal control over financial reporting may not prevent or detect misstatements, and even those controls determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation.

    FINANCIAL MEASURES AND RATIOS

    Non-GAAP Financial Measures
    We reference certain additional Non-Generally Accepted Accounting Principles (Non-GAAP) measures that are not defined terms under IFRS Accounting Standards to assess performance because we believe they provide useful supplemental information to investors.
    Adjusted EBITDA We believe Adjusted EBITDA (earnings before income taxes, loss (gain) on investments and other assets, gain on repurchase of unsecured senior notes, finance charges, foreign exchange, gain on asset disposals and depreciation and amortization), as reported in our Condensed Interim Consolidated Statements of Net Earnings and our reportable operating segment disclosures, is a useful measure because it gives an indication of the results from our principal business activities prior to consideration of how our activities are financed and the impact of foreign exchange, taxation and depreciation and amortization charges.

    The most directly comparable financial measure is net earnings.

      For the three months ended September 30,     For the nine months ended September 30,  
    (Stated in thousands of Canadian dollars)   2024       2023       2024       2023  
    Adjusted EBITDA by segment:                      
    Contract Drilling Services   133,235       131,701       406,662       468,302  
    Completion and Production Services   19,741       14,118       50,786       39,031  
    Corporate and Other   (10,551 )     (31,244 )     (56,753 )     (47,446 )
    Adjusted EBITDA   142,425       114,575       400,695       459,887  
    Depreciation and amortization   75,073       73,192       227,104       218,823  
    Gain on asset disposals   (3,323 )     (2,438 )     (14,235 )     (15,586 )
    Foreign exchange   849       363       772       (894 )
    Finance charges   16,914       19,618       53,472       63,946  
    Gain on repurchase of unsecured notes         (37 )           (137 )
    Loss (gain) on investments and other assets   (150 )     (3,813 )     (330 )     6,075  
    Incomes taxes   13,879       7,898       37,512       45,138  
    Net earnings   39,183       19,792       96,400       142,522  
    Funds Provided by (Used in) Operations We believe funds provided by (used in) operations, as reported in our Condensed Interim Consolidated Statements of Cash Flows, is a useful measure because it provides an indication of the funds our principal business activities generate prior to consideration of working capital changes, which is primarily made up of highly liquid balances.

    The most directly comparable financial measure is cash provided by (used in) operations.

    Net Capital Spending We believe net capital spending is a useful measure as it provides an indication of our primary investment activities.

    The most directly comparable financial measure is cash provided by (used in) investing activities.

    Net capital spending is calculated as follows:

        For the three months ended September 30,     For the nine months ended September 30,  
    (Stated in thousands of Canadian dollars)     2024       2023       2024       2023  
    Capital spending by spend category                        
    Expansion and upgrade     7,709       13,479       30,501       39,439  
    Maintenance, infrastructure and intangibles     56,139       38,914       127,297       108,463  
          63,848       52,393       157,798       147,902  
    Proceeds on sale of property, plant and equipment     (5,647 )     (6,698 )     (21,825 )     (20,724 )
    Net capital spending     58,201       45,695       135,973       127,178  
    Business acquisitions                       28,000  
    Proceeds from sale of investments and other assets           (10,013 )     (3,623 )     (10,013 )
    Purchase of investments and other assets     7       3,211       7       5,282  
    Receipt of finance lease payments     (207 )     (64 )     (591 )     (64 )
    Changes in non-cash working capital balances     (19,149 )     (4,551 )     9,266       6,774  
    Cash used in investing activities     38,852       34,278       141,032       157,157  
    Working Capital We define working capital as current assets less current liabilities, as reported in our Condensed Interim Consolidated Statements of Financial Position.

    Working capital is calculated as follows:

      September 30,     December 31,  
    (Stated in thousands of Canadian dollars)   2024       2023  
    Current assets   472,557       510,881  
    Current liabilities   306,084       374,009  
    Working capital   166,473       136,872  
    Total Long-term Financial Liabilities We define total long-term financial liabilities as total non-current liabilities less deferred tax liabilities, as reported in our Condensed Interim Consolidated Statements of Financial Position.

    Total long-term financial liabilities is calculated as follows:

      September 30,     December 31,  
    (Stated in thousands of Canadian dollars)   2024       2023  
    Total non-current liabilities   920,812       1,069,364  
    Deferred tax liabilities   62,047       73,515  
    Total long-term financial liabilities   858,765       995,849  
    Non-GAAP Ratios
    We reference certain additional Non-GAAP ratios that are not defined terms under IFRS to assess performance because we believe they provide useful supplemental information to investors.
    Adjusted EBITDA % of Revenue We believe Adjusted EBITDA as a percentage of consolidated revenue, as reported in our Condensed Interim Consolidated Statements of Net Earnings, provides an indication of our profitability from our principal business activities prior to consideration of how our activities are financed and the impact of foreign exchange, taxation and depreciation and amortization charges.
    Long-term debt to long-term debt plus equity We believe that long-term debt (as reported in our Condensed Interim Consolidated Statements of Financial Position) to long-term debt plus equity (total shareholders’ equity as reported in our Condensed Interim Consolidated Statements of Financial Position) provides an indication of our debt leverage.
    Net Debt to Adjusted EBITDA We believe that the Net Debt (long-term debt less cash, as reported in our Condensed Interim Consolidated Statements of Financial Position) to Adjusted EBITDA ratio provides an indication of the number of years it would take for us to repay our debt obligations.
    Supplementary Financial Measures
    We reference certain supplementary financial measures that are not defined terms under IFRS to assess performance because we believe they provide useful supplemental information to investors.
    Capital Spending by Spend Category We provide additional disclosure to better depict the nature of our capital spending. Our capital spending is categorized as expansion and upgrade, maintenance and infrastructure, or intangibles.


    CHANGE IN ACCOUNTING POLICY

    Precision adopted Classification of Liabilities as Current or Non-current and Non-current Liabilities with Covenants – Amendments to IAS 1, as issued in 2020 and 2022. These amendments apply retrospectively for annual reporting periods beginning on or after January 1, 2024 and clarify requirements for determining whether a liability should be classified as current or non-current. Due to this change in accounting policy, there was a retrospective impact on the comparative Statement of Financial Position pertaining to the Corporation’s Deferred Share Unit (DSU) plan for non-management directors which are redeemable in cash or for an equal number of common shares upon the director’s retirement. In the case of a director retiring, the director’s respective DSU liability would become payable and the Corporation would not have the right to defer settlement of the liability for at least twelve months. As such, the liability is impacted by the revised policy. The following changes were made to the Statement of Financial Position:

    • As at January 1, 2023, accounts payable and accrued liabilities increased by $12 million and non-current share-based compensation liability decreased by $12 million.
    • As at December 31, 2023, accounts payable and accrued liabilities increased by $8 million and non-current share-based compensation liability decreased by $8 million.

    The Corporation’s other liabilities were not impacted by the amendments. The change in accounting policy will also be reflected in the Corporation’s consolidated financial statements as at and for the year ending December 31, 2024.

    JOINT PARTNERSHIP

    On September 26, 2024, Precision formed a strategic Partnership with two Indigenous partners to provide well servicing operations in northeast British Columbia. Precision contributed $4 million in assets to the Partnership. Precision holds a controlling interest in the Partnership and the portions of the net earnings and equity not attributable to Precision’s controlling interest are shown separately as Non-Controlling Interests (NCI) in the consolidated statements of net earnings and consolidated statements of financial position.

    CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION AND STATEMENTS

    Certain statements contained in this release, including statements that contain words such as “could”, “should”, “can”, “anticipate”, “estimate”, “intend”, “plan”, “expect”, “believe”, “will”, “may”, “continue”, “project”, “potential” and similar expressions and statements relating to matters that are not historical facts constitute “forward-looking information” within the meaning of applicable Canadian securities legislation and “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995 (collectively, “forward-looking information and statements”).

    In particular, forward-looking information and statements include, but are not limited to, the following:

    • our strategic priorities for 2024;
    • our capital expenditures, free cash flow allocation and debt reduction plans for 2024 through to 2026;
    • anticipated activity levels, demand for our drilling rigs, day rates and daily operating margins in 2024;
    • the average number of term contracts in place for 2024;
    • customer adoption of Alpha™ technologies and EverGreen™ suite of environmental solutions;
    • timing and amount of synergies realized from acquired drilling and well servicing assets;
    • potential commercial opportunities and rig contract renewals; and
    • our future debt reduction plans.

    These forward-looking information and statements are based on certain assumptions and analysis made by Precision in light of our experience and our perception of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances. These include, among other things:

    • our ability to react to customer spending plans as a result of changes in oil and natural gas prices;
    • the status of current negotiations with our customers and vendors;
    • customer focus on safety performance;
    • existing term contracts are neither renewed nor terminated prematurely;
    • our ability to deliver rigs to customers on a timely basis;
    • the impact of an increase/decrease in capital spending; and
    • the general stability of the economic and political environments in the jurisdictions where we operate.

    Undue reliance should not be placed on forward-looking information and statements. Whether actual results, performance or achievements will conform to our expectations and predictions is subject to a number of known and unknown risks and uncertainties which could cause actual results to differ materially from our expectations. Such risks and uncertainties include, but are not limited to:

    • volatility in the price and demand for oil and natural gas;
    • fluctuations in the level of oil and natural gas exploration and development activities;
    • fluctuations in the demand for contract drilling, well servicing and ancillary oilfield services;
    • our customers’ inability to obtain adequate credit or financing to support their drilling and production activity;
    • changes in drilling and well servicing technology, which could reduce demand for certain rigs or put us at a competitive advantage;
    • shortages, delays and interruptions in the delivery of equipment supplies and other key inputs;
    • liquidity of the capital markets to fund customer drilling programs;
    • availability of cash flow, debt and equity sources to fund our capital and operating requirements, as needed;
    • the impact of weather and seasonal conditions on operations and facilities;
    • competitive operating risks inherent in contract drilling, well servicing and ancillary oilfield services;
    • ability to improve our rig technology to improve drilling efficiency;
    • general economic, market or business conditions;
    • the availability of qualified personnel and management;
    • a decline in our safety performance which could result in lower demand for our services;
    • changes in laws or regulations, including changes in environmental laws and regulations such as increased regulation of hydraulic fracturing or restrictions on the burning of fossil fuels and greenhouse gas emissions, which could have an adverse impact on the demand for oil and natural gas;
    • terrorism, social, civil and political unrest in the foreign jurisdictions where we operate;
    • fluctuations in foreign exchange, interest rates and tax rates; and
    • other unforeseen conditions which could impact the use of services supplied by Precision and Precision’s ability to respond to such conditions.

    Readers are cautioned that the forgoing list of risk factors is not exhaustive. Additional information on these and other factors that could affect our business, operations or financial results are included in reports on file with applicable securities regulatory authorities, including but not limited to Precision’s Annual Information Form for the year ended December 31, 2023, which may be accessed on Precision’s SEDAR+ profile at www.sedarplus.ca or under Precision’s EDGAR profile at www.sec.gov. The forward-looking information and statements contained in this release are made as of the date hereof and Precision undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, except as required by law.

    CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)

    (Stated in thousands of Canadian dollars)   September 30,
    2024
        December 31,
    2023(1)
        January 1,
    2023(1)
     
    ASSETS            
    Current assets:                  
    Cash   $ 24,304     $ 54,182     $ 21,587  
    Accounts receivable     401,652       421,427       413,925  
    Inventory     41,398       35,272       35,158  
    Assets held for sale     5,203              
    Total current assets     472,557       510,881       470,670  
    Non-current assets:                  
    Income tax recoverable     696       682       1,602  
    Deferred tax assets     27,767       73,662       455  
    Property, plant and equipment     2,296,079       2,338,088       2,303,338  
    Intangibles     15,566       17,310       19,575  
    Right-of-use assets     63,708       63,438       60,032  
    Finance lease receivables     4,938       5,003        
    Investments and other assets     6,685       9,971       20,451  
    Total non-current assets     2,415,439       2,508,154       2,405,453  
    Total assets   $ 2,887,996     $ 3,019,035     $ 2,876,123  
                       
    LIABILITIES AND EQUITY                  
    Current liabilities:                  
    Accounts payable and accrued liabilities   $ 282,810     $ 350,749     $ 404,350  
    Income taxes payable     3,059       3,026       2,991  
    Current portion of lease obligations     19,263       17,386       12,698  
    Current portion of long-term debt     952       2,848       2,287  
    Total current liabilities     306,084       374,009       422,326  
                       
    Non-current liabilities:                  
    Share-based compensation     10,339       16,755       47,836  
    Provisions and other     7,408       7,140       7,538  
    Lease obligations     54,010       57,124       52,978  
    Long-term debt     787,008       914,830       1,085,970  
    Deferred tax liabilities     62,047       73,515       28,946  
    Total non-current liabilities     920,812       1,069,364       1,223,268  
    Equity:                  
    Shareholders’ capital     2,337,079       2,365,129       2,299,533  
    Contributed surplus     76,656       75,086       72,555  
    Deficit     (915,629 )     (1,012,029 )     (1,301,273 )
    Accumulated other comprehensive income     158,602       147,476       159,714  
    Total equity attributable to shareholders     1,656,708       1,575,662       1,230,529  
    Non-controlling interest     4,392              
    Total equity     1,661,100       1,575,662       1,230,529  
    Total liabilities and equity   $ 2,887,996     $ 3,019,035     $ 2,876,123  

    (1) Comparative period figures were restated due to a change in accounting policy. See “CHANGE IN ACCOUNTING POLICY.”

    (2) See “JOINT PARTNERSHIP” for additional information.

    CONDENSED
    INTERIM CONSOLIDATED STATEMENTS OF NET EARNINGS (LOSS) (UNAUDITED)

        Three Months Ended September 30,     Nine Months Ended September 30,  
    (Stated in thousands of Canadian dollars, except per share amounts)   2024     2023     2024     2023  
                             
                             
    Revenue   $ 477,155     $ 446,754     $ 1,434,157     $ 1,430,983  
    Expenses:                        
    Operating     311,467       288,002       936,383       888,039  
    General and administrative     23,263       44,177       97,079       83,057  
    Earnings before income taxes, loss (gain) on investments and other assets, gain on repurchase of unsecured senior notes, finance charges, foreign exchange, gain on asset disposals, and depreciation and amortization     142,425       114,575       400,695       459,887  
    Depreciation and amortization     75,073       73,192       227,104       218,823  
    Gain on asset disposals     (3,323 )     (2,438 )     (14,235 )     (15,586 )
    Foreign exchange     849       363       772       (894 )
    Finance charges     16,914       19,618       53,472       63,946  
    Gain on repurchase of unsecured senior notes           (37 )           (137 )
    Loss (gain) on investments and other assets     (150 )     (3,813 )     (330 )     6,075  
    Earnings before income taxes     53,062       27,690       133,912       187,660  
    Income taxes:                        
    Current     2,297       2,047       4,659       4,008  
    Deferred     11,582       5,851       32,853       41,130  
          13,879       7,898       37,512       45,138  
    Net earnings   $ 39,183     $ 19,792     $ 96,400     $ 142,522  
    Net earnings per share attributable to shareholders:                        
    Basic   $ 2.77     $ 1.45     $ 6.74     $ 10.45  
    Diluted   $ 2.31     $ 1.45     $ 6.73     $ 9.84  


    CONDENSED
    INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED)

        Three Months Ended September 30,     Nine Months Ended September 30,  
    (Stated in thousands of Canadian dollars)   2024     2023     2024     2023  
    Net earnings   $ 39,183     $ 19,792     $ 96,400     $ 142,522  
    Unrealized gain (loss) on translation of assets and liabilities of operations denominated in foreign currency     (16,104 )     39,180       30,409       3,322  
    Foreign exchange gain (loss) on net investment hedge with U.S. denominated debt     9,536       (24,616 )     (19,283 )     (1,484 )
    Comprehensive income   $ 32,615     $ 34,356     $ 107,526     $ 144,360  


    CONDENSED
    INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

        Three Months Ended September 30,     Nine Months Ended September 30,  
    (Stated in thousands of Canadian dollars)   2024     2023     2024     2023  
    Cash provided by (used in):                        
    Operations:                        
    Net earnings   $ 39,183     $ 19,792     $ 96,400     $ 142,522  
    Adjustments for:                        
    Long-term compensation plans     2,620       11,577       14,490       9,200  
    Depreciation and amortization     75,073       73,192       227,104       218,823  
    Gain on asset disposals     (3,323 )     (2,438 )     (14,235 )     (15,586 )
    Foreign exchange     815       1,275       965       (13 )
    Finance charges     16,914       19,618       53,472       63,946  
    Income taxes     13,879       7,898       37,512       45,138  
    Other     27             120       (220 )
    Loss (gain) on investments and other assets     (150 )     (3,813 )     (330 )     6,075  
    Gain on repurchase of unsecured senior notes           (37 )           (137 )
    Income taxes paid     (508 )     (187 )     (4,842 )     (2,395 )
    Income taxes recovered     58       4       58       7  
    Interest paid     (31,692 )     (35,500 )     (69,435 )     (79,702 )
    Interest received     426       227       1,558       562  
    Funds provided by operations     113,322       91,608       342,837       388,220  
    Changes in non-cash working capital balances     (33,648 )     (3,108 )     (23,545 )     (57,904 )
    Cash provided by operations     79,674       88,500       319,292       330,316  
                             
    Investments:                        
    Purchase of property, plant and equipment     (63,797 )     (51,546 )     (157,747 )     (146,378 )
    Purchase of intangibles     (51 )     (847 )     (51 )     (1,524 )
    Proceeds on sale of property, plant and equipment     5,647       6,698       21,825       20,724  
    Proceeds from sale of investments and other assets           10,013       3,623       10,013  
    Business acquisitions                       (28,000 )
    Purchase of investments and other assets     (7 )     (3,211 )     (7 )     (5,282 )
    Receipt of finance lease payments     207       64       591       64  
    Changes in non-cash working capital balances     19,149       4,551       (9,266 )     (6,774 )
    Cash used in investing activities     (38,852 )     (34,278 )     (141,032 )     (157,157 )
                             
    Financing:                        
    Issuance of long-term debt     10,900       23,600       10,900       162,649  
    Repayments of long-term debt     (59,658 )     (49,517 )     (162,506 )     (288,538 )
    Repurchase of share capital     (16,891 )           (50,465 )     (12,951 )
    Issuance of common shares from the exercise of options     495             686        
    Debt amendment fees                 (1,317 )      
    Lease payments     (3,586 )     (2,410 )     (10,005 )     (6,413 )
    Funding from non-controlling interest     4,392             4,392        
    Cash used in financing activities     (64,348 )     (28,327 )     (208,315 )     (145,253 )
    Effect of exchange rate changes on cash     (403 )     251       177       (428 )
    Increase (decrease) in cash     (23,929 )     26,146       (29,878 )     27,478  
    Cash, beginning of period     48,233       22,919       54,182       21,587  
    Cash, end of period   $ 24,304     $ 49,065     $ 24,304     $ 49,065  


    CONDENSED
    INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED)

        Attributable to shareholders of the Corporation            
    (Stated in thousands of Canadian dollars)   Shareholders’
    Capital
        Contributed
    Surplus
        Accumulated
    Other
    Comprehensive
    Income
        Deficit     Total     Non-
    controlling interest
        Total
    Equity
     
    Balance at January 1, 2024   $ 2,365,129     $ 75,086     $ 147,476     $ (1,012,029 )   $ 1,575,662     $     $ 1,575,662  
    Net earnings for the period                       96,400       96,400             96,400  
    Other comprehensive income for the period                 11,126             11,126             11,126  
    Share options exercised     978       (292 )                 686             686  
    Settlement of Executive Performance and Restricted Share Units     21,846       (1,479 )                 20,367             20,367  
    Share repurchases     (51,050 )                       (51,050 )           (51,050 )
    Redemption of non-management directors share units     176       (176 )                              
    Share-based compensation expense           3,517                   3,517             3,517  
    Funding from non-controlling interest                                   4,392       4,392  
    Balance at September 30, 2024   $ 2,337,079     $ 76,656     $ 158,602     $ (915,629 )   $ 1,656,708     $ 4,392     $ 1,661,100  
        Attributable to shareholders of the Corporation            
    (Stated in thousands of Canadian dollars)   Shareholders’
    Capital
        Contributed
    Surplus
        Accumulated
    Other
    Comprehensive
    Income
        Deficit     Total     Non-
    controlling interest
        Total
    Equity
     
    Balance at January 1, 2023   $ 2,299,533     $ 72,555     $ 159,714     $ (1,301,273 )   $ 1,230,529     $     $ 1,230,529  
    Net earnings for the period                       142,522       142,522             142,522  
    Other comprehensive income for the period                 1,838             1,838             1,838  
    Settlement of Executive Performance and Restricted Share Units     19,206                         19,206             19,206  
    Share repurchases     (12,951 )                       (12,951 )           (12,951 )
    Redemption of non-management directors share units     757                         757             757  
    Share-based compensation expense           1,834                   1,834             1,834  
    Balance at September 30, 2023   $ 2,306,545     $ 74,389     $ 161,552     $ (1,158,751 )   $ 1,383,735     $     $ 1,383,735  


    2024 THIRD QUARTER RESULTS CONFERENCE CALL AND WEBCAST

    Precision Drilling Corporation has scheduled a conference call and webcast to begin promptly at 11:00 a.m. MT (1:00 p.m. ET) on Wednesday, October 30, 2024.

    To participate in the conference call please register at the URL link below. Once registered, you will receive a dial-in number and a unique PIN, which will allow you to ask questions.

    https://register.vevent.com/register/BI4cb3a3db88084e66ad528ebb2bdb81e4

    The call will also be webcast and can be accessed through the link below. A replay of the webcast call will be available on Precision’s website for 12 months.

    https://edge.media-server.com/mmc/p/mov2xb4k

    About Precision

    Precision is a leading provider of safe and environmentally responsible High Performance, High Value services to the energy industry, offering customers access to an extensive fleet of Super Series drilling rigs. Precision has commercialized an industry-leading digital technology portfolio known as Alpha™ that utilizes advanced automation software and analytics to generate efficient, predictable, and repeatable results for energy customers. Our drilling services are enhanced by our EverGreen™ suite of environmental solutions, which bolsters our commitment to reducing the environmental impact of our operations. Additionally, Precision offers well service rigs, camps and rental equipment all backed by a comprehensive mix of technical support services and skilled, experienced personnel.

    Precision is headquartered in Calgary, Alberta, Canada and is listed on the Toronto Stock Exchange under the trading symbol “PD” and on the New York Stock Exchange under the trading symbol “PDS”.

    Additional Information

    For further information, please contact:

    Lavonne Zdunich, CPA, CA
    Vice President, Investor Relations
    403.716.4500

    800, 525 – 8th Avenue S.W.
    Calgary, Alberta, Canada T2P 1G1
    Website: www.precisiondrilling.com

    The MIL Network

  • MIL-OSI China: Equipment makers, high-tech lift power

    Source: China State Council Information Office 3

    Driven by the rapid development of the high-tech and equipment manufacturing sectors, China saw its electricity consumption, a key barometer of economic activity, rise 7.9 percent year-on-year in the first three quarters, said the China Electricity Council.

    Electricity consumption in the two key sectors grew 11.4 percent year-on-year during the period, a 1.3 percentage point increase from the same period last year, said Jiang Debin, deputy director of the council’s statistics and data center.

    Soaring electricity consumption in these advanced sectors and the production of specialized equipment and machinery reflect an ongoing trend of transformation and upgrade within manufacturing, Jiang said.

    High-tech and equipment manufacturing sectors include areas involved in electronics, aerospace, robotics, precision machinery and other high-value tech-intensive manufacturing activities. These sectors typically require advanced engineering, specialized manufacturing techniques, and often high levels of automation to meet the demands for quality and precision.

    Within these key sectors, electrical machinery and equipment manufacturing led with a robust 19.1 percent increase, while computers, communications and electronics equipment manufacturing saw a 14.4 percent uptick. Instrumentation manufacturing followed closely behind, posting an 11.6 percent rise, and the auto industry grew by 11.1 percent, said the council.

    In a sign of the growing emphasis on renewable energy, electricity consumption for photovoltaic equipment and component manufacturing surged 36.2 percent compared to last year. Additionally, wind power equipment production in the general equipment sector climbed 19.6 percent, underscoring China’s commitment to supporting green technology development as part of its broader industrial upgrade, it said.

    Jiang said that driven by mobile internet, big data and cloud computing sectors, electricity consumption for internet data services also increased 24.4 percent year-on-year during the first nine months.

    The rapid growth of electric vehicles, meanwhile, led to a 56.7 percent year-on-year increase in electricity consumption for charging and battery swapping services, he said.

    Analysts say that given the country’s ambitious targets of peaking carbon emissions before 2030 and achieving carbon neutrality before 2060, the power sector is likely to keep investing in the development of new energy sources.

    The energy sector is poised to accelerate investment in new energy sources, driven by the strong policy support for renewable energy as solar and wind power remain central to reducing emissions across the grid, said Wang Lining, director of the oil market department of the Economics and Technology Research Institute under China National Petroleum Corp.

    As these technologies mature, we’re likely to see power consumption being increasingly driven by the expansion of these sectors and the transition will fuel substantial infrastructure investment, Wang said.

    Lin Boqiang, head of the China Institute for Studies in Energy Policy at Xiamen University, said solar and wind are expected to be major growth engines in the next decade with continuous investment in the power sector.

    “As these investments intensify, the energy sector will need to develop robust power storage solutions and grid modernization efforts to support an influx of intermittent renewable sources, paving the way for a more resilient and greener energy landscape, Lin said.

    The council said earlier that total electricity consumption is expected to grow by approximately 6.5 percent year-on-year in 2024.

    According to the council, power investment continues to grow rapidly, with new wind and solar power installations reaching a combined 200 gigawatts, accounting for over 80 percent of total newly installed capacity.

    MIL OSI China News

  • MIL-OSI United Nations: UNECE Expert Meeting on Dissemination and Communication of Statistics 2023

    Source: United Nations Economic Commission for Europe

    About the meeting

    In today’s rapidly changing world, statistical organisations are facing increasingly complex challenges in effectively disseminating and communicating data. With the continuous emergence of new technologies and platforms, the growing need to provide the right data product to the right people in a timelier manner as well as the rising competition from private data providers, statistical organisations must adapt quickly to continue serving their critical role as providers of official statistics that are fundamental to informed decision-making in society.

    MIL OSI United Nations News

  • MIL-Evening Report: Inflation is sinking ever lower. Now that it’s official what’s the RBA going to do?

    Source: The Conversation (Au and NZ) – By John Hawkins, Senior Lecturer, Canberra School of Politics, Economics and Society, University of Canberra

    Lower petrol prices and an electricity rebate have contributed to a further fall in the quarterly measure of inflation, the Consumer Price Index.

    The rate in the September quarter dropped to 2.8%, putting it for the first time within the Reserve Bank’s target range of two-point-something since the March quarter of 2020.

    The fall was broadly in keeping with market expectations, and keeps low the likelihood of an interest rate cut this year. The next Reserve Bank meeting is scheduled for Tuesday.

    The bank pays more attention to the long-running quarterly measure of the CPI than the more volatile monthly version which already dropped into its target range in August.

    The monthly measure dropped further, to 2.1%, in September.



    The quarterly CPI is also more important because it is included in all sorts of workplace and other contracts and indexation formulas.

    The main reason for the fall in inflation was the electricity rebates announced in the federal budget and by some states.

    Also helping were the falls in petrol prices, mainly reflecting declines in global oil prices. Cheaper or free public transport in Brisbane, Canberra, Hobart and Darwin also contributed.



    Preventing a larger fall were the continuing strong growth in insurance costs and rent. The rise in insurance costs reflects a series of extreme weather events such as bushfires and floods. It is a way in which climate change is exacerbating inflation.

    Contrary to what many people think, the increase in rents is not due to landlords passing on higher interest rates. Landlords may want to do this but they are only able if vacancy rates are low, otherwise tenants just move elsewhere.

    History shows it is low vacancy rates that drive up rent regardless of the level of interest rates. The inability of landlords to pass on interest rate increases has been confirmed by a study just published by the Reserve Bank using tax return data.

    It showed that only three cents of every dollar in extra interest costs is passed on.

    The fall in inflation to a rate significantly below the 4% at which wages are increasing means that the cost of living crisis is abating, although not yet over.

    The dramatically lower inflation rate puts Australia in a comparable position to the United States, whose inflation rate is 2.4%, the United Kingdom, whose inflation rate is 1.7% and New Zealand where it is 2.2%.

    The US, UK and New Zealand all have inflation targets (or midpoints) of 2%, so inflation is now only slightly above the target in the US and New Zealand. It is actually below it in the UK. In response all three have cut their key policy interest rates.

    Yet it is unlikely that the Reserve Bank will follow their lead until next year, despite growing pressure.

    One reason is that, even after their cuts, interest rates in our three peers are still higher than in Australia, at around 4.75% to 5%.

    But more importantly, the Bank has stressed recently that it pays more attention to the “underlying” rate of inflation, which looks through temporary measures such as the electricity subsidies. The Bank will only cut interest rates when they are “confident that inflation was moving sustainably towards the target range”.

    The bank’s preferred measure of underlying inflation, the so-called trimmed mean, has also fallen.

    But at 3.5%, it is still above the target. A positive aspect is that it has reached 3.5% ahead of the Bank’s most recent forecast which had 3.5% only being reached by the end of 2024.



    Monetary policy, however, has in Milton Friedman’s famous words “long and variable lags”.

    As the then future governor Glenn Stevens remarked back in 1999,
    “the long lags associated with the full impact of monetary policy changes mean that policy changes today must be made with a view not just to what is happening now, but what is likely to be happening in a year’s time and even beyond then”.

    In other words we want to drive by looking ahead rather than just at the rear view mirror. The Bank is like a footballer who needs to head to where the ball will be rather than where it is now.

    There is therefore a risk that if the Reserve Bank keeps interest rates high until inflation reaches the middle of the target, it will be too late to prevent the economy slowing too much and inflation will undershoot the target. This would likely be associated with unnecessarily high unemployment.

    That is why the Reserve Bank board faces a difficult balancing act in taking its decisions.

    John Hawkins was formerly a senior economist and forecaster in the Reserve Bank and the Australian Treasury.

    ref. Inflation is sinking ever lower. Now that it’s official what’s the RBA going to do? – https://theconversation.com/inflation-is-sinking-ever-lower-now-that-its-official-whats-the-rba-going-to-do-240336

    MIL OSI AnalysisEveningReport.nz

  • MIL-OSI China: Typhoon Kong-rey expected to make landfall in Zhejiang, Fujian on Thursday

    Source: People’s Republic of China – State Council News

    Typhoon Kong-rey, the 21st typhoon of this year, is expected to make landfall along the eastern coast of Taiwan between noon and evening on Thursday and will gradually shift northeast towards the coastal areas of Zhejiang and Fujian provinces, where it may weaken but still pose a risk of grazing the coast, the China Meteorological Administration said on Tuesday.

    Dai Kan, deputy director of the National Meteorological Center, said Typhoon Kong-rey formed in the Northwest Pacific on Friday. By Tuesday afternoon, its center was located approximately 780 kilometers southeast of Taidong, Taiwan with maximum winds of 13 levels near the center.

    Influenced by cold air, areas near the typhoon’s center could see wind speeds of 13 to 17 levels in the following days, with gusts exceeding 17 levels. From Wednesday to Friday, heavy to torrential rain is anticipated in Taiwan, eastern and northern Fujian, Zhejiang, Shanghai and southern Jiangsu province, the administration said.

    CMA statistics show that no typhoons have made landfall or grazed the coasts of Fujian and Zhejiang after Oct 25 since 1949.

    “Residents in these areas should closely monitor the typhoon’s trajectory and take precautions against wind and rain,” Dai said.

    In addition, Typhoon Trami, along with cold air, have brought strong winds and heavy rain in the coastal areas of Zhejiang, Guangdong, and Hainan provinces starting Monday, the administration said.

    This month, temperatures in most areas in China have remained close to or above average, with significant fluctuations between warm and cold conditions, said Jia Xiaolong, deputy director of the National Climate Center.

    “There have been two major rainfalls, alleviating drought conditions in the Sichuan province and Chongqing, as well as areas along the Yangtze River,” Jia said.

    The national average temperature was 11.8 C in October, 0.9 C higher than that in a normal year, while five cold air events affected the country, he added.

    From Sep 29 to Oct 3, a cold wave brought temperature drops of 8 to 14 C in central and eastern areas, causing frost and snow damage in parts of Inner Mongolia autonomous region and northern Gansu province.

    The average national rainfall reached 35 millimeters, a 6.3 percent above the usual level for the same period of the year. “Some weather stations reported daily rainfall that broke historical records for October,” Jia said.

    In the coming 10 days, China is expected to experience wind and rain from Typhoon Kong-rey and another round of strong cold air. From Nov 3 to 5, strong cold air will move from the north to the south, bringing winds and cooling temperatures, he added.

    MIL OSI China News

  • MIL-OSI Asia-Pac: LCQ9: Promoting digital nomadism

    Source: Hong Kong Government special administrative region

    LCQ9: Promoting digital nomadism
    LCQ9: Promoting digital nomadism
    ********************************

         Following is a question by Dr the Hon Johnny Ng and a written reply by the Secretary for Labour and Welfare, Mr Chris Sun, in the Legislative Council today (October 30): Question:      It has been reported that digital nomadism (i.e. working remotely online while living abroad) has become a lifestyle with growing popularity in recent years. Some studies have estimated that the population of digital nomads worldwide would increase to 1 billion by 2035. There are views that hiring digital nomads is conducive to business operation by reducing employers’ costs and expenses, while the presence of digital nomads in the host communities will also contribute to local economic growth. In this connection, will the Government inform this Council: (1) whether the Government will or has estimate(d) and assess(ed) the economic benefits that can be brought to Hong Kong by implementing digital nomad policies to attract talents to work and live in Hong Kong; (2) as there are views pointing out that digital nomads can help expand the talent pool to a worldwide scale, and it is learnt that at present, about 60 countries and places across the globe have already introduced digital nomad visas (e.g. the digital nomad visa launched by Thailand this year has a validity of five years, permitting a stay of up to 180 days per visit, while the digital nomad visa introduced by Japan this year allows holders to bring along with them their family members), whether the Government will, by drawing reference from the relevant practices, issue digital nomad visas to overseas and Mainland talents, or even roll out related preferential policies (including temporary resident visas, accommodation allowance, family-friendly measures and tax incentives, etc) in order to attract specific types of digital nomads (e.g. talents related to Web 3.0, quantum computation and artificial intelligence), thereby attracting more talents to come to Hong Kong; if so, of the details of the plan and the timetable; if not, the reasons for that; and (3) whether the Government will, in the long run, consider launching an e-Residency programme to offer digital citizenship to foreigners, so as to attract more talents and enterprises from abroad to settle in Hong Kong? Reply: President,      In consultation with the Financial Secretary’s Office (including the Office of the Government Economist and the Office for Attracting Strategic Enterprises), the Commerce and Economic Development Bureau and the Innovation, Technology and Industry Bureau, I give the reply on behalf of the Government as follows:           “Digital nomads” are essentially similar to visitors, who can live in one place but at the same time work remotely under an employment outside such place. “Digital nomads” will return to their places of origin or move to other places after a certain period of time.      In the case of Hong Kong, the Government has implemented a series of enhanced talent admission measures since the end of 2022 to entice global talents of diverse backgrounds and professions to settle and pursue development in Hong Kong. Talents will alleviate the post-pandemic manpower shortage in Hong Kong, fill local job vacancies and enrich the local talent pool for promoting economic development. As the objective of the Government’s talents policy is to alleviate manpower shortage, we hope that admitted talents can make Hong Kong their home, inject impetus and contribute to the development of Hong Kong. “Digital nomads” are mobile. Although they will spend on various aspects in daily living during their stay in Hong Kong, they are no different from ordinary visitors. They do not fit well under the Government’s talent attraction policy. The Government has no plan to introduce “digital nomad” visa arrangement under the talent admission regime.      At present, “digital nomad” visa arrangement is implemented in a small number of regions only. With limited statistics on relevant economic activities available, the Government is not able to estimate the potential economic benefits brought by adopting similar practice in Hong Kong. The “e-Residency programme” allows freelance workers to obtain some of the rights or facilitation granted to the citizens of the issuing place, or they may live and work in the issuing place. Such an arrangement involves complex issues such as taxation, civil rights and obligations, etc. It is currently implemented in a small number of regions only. The Government has difficulty in assessing its benefit and has no plan to implement such arrangement neither at present.

     
    Ends/Wednesday, October 30, 2024Issued at HKT 11:05

    NNNN

    MIL OSI Asia Pacific News

  • MIL-OSI Asia-Pac: LCQ19: Domestic violence

    Source: Hong Kong Government special administrative region

    LCQ19: Domestic violence
    LCQ19: Domestic violence
    ************************

         Following is a question by the Hon Lilian Kwok and a written reply by the Secretary for Labour and Welfare, Mr Chris Sun, in the Legislative Council today (October 30): Question:      There are views pointing out that domestic violence is of grave concern in the community. In this connection, will the Government inform this Council: (1) of the respective numbers of requests for assistance and reported cases in relation to domestic violence received by the Government in each month of the past five years, as well as the number of persons convicted; (2) as it is learnt that when handling domestic conflict reports, the Hong Kong Police Force (HKPF) will refer cases in need to the Social Welfare Department for follow-up actions once consent is sought from the parties concerned, and for persons who refuse to accept the referral service, HKPF will provide them with a “Family Support Service Information Card” so that they can seek assistance on their own, whether the Government has continuously followed up and provided support for those persons who refused the referral service; if so, of the details; if not, the reasons for that; (3) of the waiting time for and the average number of sessions of psychological counselling and emotional support services provided by the Government to victims in domestic violence cases; (4) given that the Police currently classify domestic conflict reports into “Domestic Violence (Crime)”, “Domestic Violence (Miscellaneous)” and “Domestic Incidents” based on their degree of seriousness, whether the Government will regularly review and update the relevant classification criteria and guidelines; if so, of the details; if not, the reasons for that; and (5) of the Government’s education and publicity efforts on the prevention of domestic violence in the past three years (set out by item); whether it has assessed the effectiveness of such work? Reply: President,      The reply to the Member’s question, in consultation with Security Bureau, is as follows: (1) In the past five years, the numbers of cases involving spouse/cohabitant battering and child protection received and handled by the Social Welfare Department (SWD) are tabulated below: 

    Case type
    Year

    2019
    2020
    2021
    2022
    2023

    Number of spouse/cohabitant battering cases
    2 920
    2 601
    2 715
    2 077
    1 938

    Number of child protection cases
    1 006
    940
    1 367
    1 439
    1 457

          The SWD does not have information on the monthly number of such cases.      As at September 2024, the respective numbers of cases of domestic violence (including Domestic Violence (Crime) and Domestic Violence (Miscellaneous)) and Domestic Incidents handled by the Police are set out at Annex. As domestic violence cases involve various criminal offences and different ordinances, the Police do not maintain statistics on the relevant number of convictions. (2) When handling domestic conflict reports, once consent is sought from the parties concerned, the Police will refer cases in need to the SWD for follow-up actions, including arranging for the persons in need for admission to refuge centres or immediate intervention by outreaching social workers, etc by the SWD. Depending on the circumstances, the Police refers the victims and/or assailants to other appropriate follow-up services, such as joining hands with the SWD to assist them in contacting relevant social welfare organisations for counseling and other supports, with a view to strengthening protection for victims and preventing recurrence of domestic violence. For persons who refuse to accept referral services, the Police provides a “Family Support Service Information Card” jointly produced with the SWD, to facilitate the persons concerned to contact service agencies direct for assistance. If a case is assessed as high-risk, the Police will take the initiative to refer the case to the SWD to ensure that the case receives timely follow-up. Upon receiving the Police’s referral, the SWD will make crisis intervention and provide necessary support having regard to the circumstances and welfare needs of the case. (3) The SWD provides a wide range of preventive, supportive and specialised services to victims of domestic violence and families in need through different service units. These services include Integrated Family Service Centres/Integrated Services Centres, Family and Child Protective Services Units, Clinical Psychology Units, Family Support Networking Teams, Refuge Centres for Women, Family Crisis Support Centre, Multi-purpose Crisis Intervention and Support Centre, Victim Support Programme for Victims of Family Violence, residential child care services and child care centres. The emergency support services provided by these service units to the victims of domestic violence cases do not require waiting. The SWD does not have the information on the average times of service for each case. (4) The Police have clear professional guidelines for the classification and handling of cases. Irrespective of the classification of a case, police officers will handle and investigate cases with empathy, understanding, professionalism, fairness, and impartiality.      The Police attach great importance to the problem of domestic violence. Through an inter-departmental and multi-disciplinary approach, the Police handle domestic violence cases with joint efforts, with a view to achieving the dual objectives of protecting the personal safety of the victims and their families as well as bringing the offenders to justice. The Police have formulated a set of policies and procedures for effective handling of domestic violence cases, ensuring that officers respond to all reports promptly and take appropriate enforcement actions, and ensure the immediate safety of victim and his/her children to prevent further harm. (5) The SWD has been launching the publicity campaign on “Strengthening Families and Combating Violence”, which include promotion through television, radio, various public transport network, online platforms and social media, to raise public awareness on the understanding of the problems of domestic violence and the prevention of domestic violence. The SWD also organises various mass events and diversified district-based public education programmes with a view to encouraging the persons in need to seek early assistance, preventing resorting to violence against family members and promoting the message of family harmony.      In addition, the Police have also effectively utilised various channels, including seminars, workshops and online platforms to provide training to different sectors such as social welfare and education, in order to raise public awareness and prevent domestic violence cases.      The Government would regularly review the effectiveness of the work and refine the promotion strategies at appropriate time.

     
    Ends/Wednesday, October 30, 2024Issued at HKT 11:08

    NNNN

    MIL OSI Asia Pacific News

  • MIL-OSI Asia-Pac: SFST’s speech at Green Tech Summit 2024 (English only) (with photo)

    Source: Hong Kong Government special administrative region

    SFST’s speech at Green Tech Summit 2024 (English only) (with photo)
    SFST’s speech at Green Tech Summit 2024 (English only) (with photo)
    *******************************************************************

         Following is the speech by the Secretary for Financial Services and the Treasury, Mr Christopher Hui, at the Green Tech Summit 2024 today (October 30): Dr Hua Jindong (Vice-chairperson of the International Sustainability Standards Board), distinguished guests, ladies and gentlemen,      It is a profound honour to join you at the Green Tech Summit 2024. I extend my sincere gratitude to the Hong Kong University of Science and Technology and GoImpact for hosting this important event. Today, we gather to explore how green finance, technology, and innovation converge to create a sustainable future. A call to action for our planet      Our planet is currently facing unprecedented challenges due to climate change. These challenges encompass environmental, economic, and social dimensions, demanding our immediate attention. The statistics deserve attention: Global climate finance flows reached approximately US$1.3 trillion in 2021 and 2022. However, to meet our climate goals, we must significantly increase annual investments to around US$9 trillion by 2030 and US$10 trillion by 2050. This gap signals an immense demand for green finance and innovation – one that we must address with urgency and creativity.      At this Summit, we aim to showcase Hong Kong’s leadership in the green transition through five key strategies, and they altogether will significantly promote green transformation: the growth of green capital, recognition of sustainability standards, empowerment in carbon trading, encouragement of green financing, and nurturing green technology. Each of these strategies plays a critical role in shaping a sustainable future for our city and beyond. Growth of green capital      Hong Kong is uniquely positioned to lead the green transition. As Asia’s premier international financial centre, we have the infrastructure, expertise, and regulatory framework to channel international capital toward sustainable initiatives. As of June, over 230 ESG (environmental, social and governance) funds have been authorised by the Securities and Futures Commission, with assets under management exceeding HK$1.3 trillion. This represents a year-on-year increase of 19 per cent in the number of ESG funds and an 8 per cent increase in assets under management.      The Hong Kong SAR Government has been proactive in issuing government green bonds totalling HK$220 billion since 2019. These bonds have funded numerous local green projects and set benchmarks for potential issuers. In 2023 alone, the total green and sustainable debt issued in Hong Kong surpassed US$50 billion, with approximately US$30 billion being green and sustainable bonds – 37 per cent of the total market. This year, we expanded our Government Green Bond Programme to include sustainable projects and hence the programme is, renamed Government Sustainable Bond Programme, reinforcing our commitment to a greener future. Recognition of sustainability standards      Sustainability reporting is vital to our green finance ecosystem. In March, we published a vision statement outlining our approach to developing a comprehensive ecosystem for sustainability disclosure in Hong Kong. In the Chief Executive’s Policy Address, it was announced that our roadmap for adopting the International Financial Reporting Standards – Sustainability Disclosure Standards (ISSB Standards) will be published within this year. Our aim is to position Hong Kong among the first jurisdictions to adopt the global standard, enhancing our credibility as a green finance hub.      To support our green transition, the Hong Kong Monetary Authority (HKMA) published the Hong Kong Taxonomy for Sustainable Finance in May. This taxonomy raises awareness about green finance and promotes a common understanding of green activities. It aligns with the taxonomies of the Mainland and the European Union, currently encompassing 12 economic activities across four sectors. The HKMA is advancing to the next phase of developing the Hong Kong Taxonomy, which will broaden its scope to include more sectors and activities crucial for our sustainable future. Empowerment in carbon trading      We advocate for innovative approaches to enable decarbonisation and allocate green funding. A noteworthy initiative is the Core Climate platform, launched by the Hong Kong Exchanges and Clearing Limited in October 2022. This international carbon marketplace facilitates effective and transparent trading of carbon credits and supports transition towards net zero.      Core Climate is currently the only carbon marketplace that offers settlement in both Hong Kong dollar and Renminbi for international voluntary carbon credits. This platform enables participants to source, hold, trade, and retire voluntary carbon credits, ensuring robust and credible quality verified against international standards. Since its launch, the number of registered participants has tripled, reaching approximately 80 by the end of last year. Encouragement to green financing      To encourage even more green financing activities, we launched the Green and Sustainable Finance Grant Scheme back in 2021. This initiative provides funding support for eligible bond issuers and loan borrowers, covering expenses related to bond issuance and external review services. We have extended this scheme by three years, running until 2027, and expanded its scope to include transition bonds and loans.      As of early October, we have granted approximately HK$280 million to support 470 green and sustainable debt instruments issued in Hong Kong, involving a total underlying debt issuance of over HK$1 trillion. This financial backing is crucial in incentivising industries to utilise Hong Kong’s transition financing platform for decarbonisation. Nurturing green technology      A key focus of our green transition is our commitment to promoting green fintech. Integrating fintech with green finance is essential for accelerating our transformation. We are actively working to expand the green fintech ecosystem in Hong Kong, positioning our city as a green fintech hub.      In June, we launched the Green and Sustainable Fintech Proof-of-Concept Funding Support Scheme. This initiative provides early-stage funding to technology companies and research institutes engaged in green fintech activities. Collaborating with local enterprises allows these innovators to co-develop projects that address challenges for the industry.      This scheme is not solely about financial support. It facilitates the completion of commercialisation and the proof-of-concept stages, paving the way for wider adoption of green and sustainable fintech solutions. Innovative fintech solutions will enhance our ability to mobilise capital for green projects and increase transparency in fund flows.      Against the backdrop of digitisation and global warming, fintech plays a crucial role in driving innovation in the financial industry and catalysing the low-carbon transformation of economic activities. The application of new technology can also help mitigate climate risk by forecasting environmental changes, improving supply chain efficiency, and identifying opportunities for innovation in low-carbon solutions.      This year, we launched the Prototype Hong Kong Green Fintech Map. Developed with various stakeholders, this tool provides a comprehensive overview of green fintech companies in Hong Kong and the services they offer. This map symbolises the integration of green finance and fintech, fostering the development of a robust green fintech ecosystem and accelerating the transition toward a green economy.      Finally, I want to emphasise the importance of nurturing talent for sustainable development. The future of green finance relies on the skills and knowledge of our workforce. To support the development of a green finance talent pool, we launched a three-year Pilot Green and Sustainable Finance Capacity Building Support Scheme. This initiative encourages practitioners, professionals, and students to participate in relevant training programmes.      As of mid-September, we have approved over 4 100 reimbursement applications, amounting to approximately HK$23.3 million. This investment in human capital is essential for equipping our workforce with the skills needed to navigate and thrive in the evolving landscape of green finance. Closing remarks      In conclusion, the path to a sustainable future is not just a challenge; it is an opportunity for innovation and growth. Green fintech will play a pivotal role in this transition, enabling us to mobilise capital, enhance transparency, and support the development of sustainable solutions.      As we approach COP29 (29th Conference of the Parties to the United Nations Framework Convention on Climate Change) next month, let us intensify our efforts to forge a new chapter in sustainability. By collaborating across sectors and embracing innovative solutions, we can pave the way for impactful changes that resonate with green finance and technology. Together, we can turn our commitments into actionable strategies, ensuring a resilient and sustainable world for generations to come.      Thank you for your attention, and I look forward to seeing you in the next Summit here. 

     
    Ends/Wednesday, October 30, 2024Issued at HKT 11:29

    NNNN

    MIL OSI Asia Pacific News

  • MIL-OSI: Savi Financial Corporation Earns $205,000 in the Third Quarter of 2024; Results Highlighted by NIM Expansion

    Source: GlobeNewswire (MIL-OSI)

    MOUNT VERNON, Wash., Oct. 29, 2024 (GLOBE NEWSWIRE) — Savi Financial Corporation, Inc. (OTC Pink: SVVB), the bank holding company for SaviBank, today reported net income of $205,000, or $0.05 per diluted share, for the third quarter of 2024. This compared to a net loss of $5,000, or a loss of $0.00 per diluted share, in the second quarter of 2024, and net income of $558,000, or $0.13 per diluted share, in the third quarter of 2023. In the first nine months of 2024, the Company reported a net loss of $216,000, or a loss of $0.05 per diluted share, compared to net income of $1.59 million, or $0.36 per diluted share, in the first nine months of 2023. All results are unaudited.

    “We reported improved third quarter 2024 operating results, compared to the preceding quarter, driven by increases in net interest income, lower non-interest expense and net interest margin expansion,” said Michal D. Cann, Chairman and President of Savi Financial Corporation. “Overall, loan growth was muted during the quarter, in part due to a slowdown in the local economy and uncertainties surrounding the election and future economic growth. However, we are seeing improvements in our loan pipeline, particularly with SBA loan originations. Further, we experienced good growth in core deposits during the quarter, with an increase in core deposits from local municipalities, which will allow us to reduce our reliance on brokered deposits to fund future growth.”

    “Loan growth was relatively flat compared to the preceding quarter and up 5% compared to a year ago. However, we did see good growth in the loan pipelines,” said Andrew Hunter, President and CEO of SaviBank. “We continue to seek out lending opportunities from our customers and anticipate slower than historic loan growth for the remainder of the year.”

    “The increase in loan yields during the quarter contributed to net interest margin (NIM) expansion of four basis points during the current quarter,” said Rob Woods, Chief Financial Officer of SaviBank. “We anticipate funding costs are near their peak and will continue to stabilize and should improve over the next few quarters if interest rates continue to decrease.” The Company’s NIM was 3.52% in the third quarter of 2024, compared to 3.48% in the preceding quarter, and 3.66% in the third quarter a year ago. The NIM remains higher than the peer average of 3.21% posted by the 171 banks that comprised the Dow Jones U.S. Microcap Bank Index as of June 30, 2024. The cost of funds increased to 244 basis points during the third quarter of 2024, compared to 238 basis points in the preceding quarter.

    Merger

    On March 22, 2024, the Company announced that it had signed a Purchase and Assumption agreement whereby Lakewood, WA. based Harborstone Credit Union will acquire SaviBank in an all-cash transaction. The transaction is structured as a purchase agreement with Harborstone Credit Union purchasing substantially all assets and assuming substantially all liabilities of SaviBank. The transaction is anticipated to be completed in the spring of 2025, subject to receiving all regulatory approvals. Shareholders of Savi Financial have approved the acquisition.

    “We look forward to working with Harborstone Credit Union to continue our tradition of having a positive impact in our local communities,” said Cann. “We are deeply focused on providing resources and services for our customers to succeed, and believe that the additional services, products and locations Harborstone Credit Union provides will help us continue to meet the financial needs of our customers. Through the unique structure of this acquisition by Harborstone Credit Union, we believe we are maximizing value to our shareholders who have supported us over the years.”

    Third Quarter 2024 Highlights:

    • The Company reported net income of $205,000 for the third quarter of 2024, compared to net loss of $5,000 for the second quarter of 2024, and net income of $558,000 for the third quarter of 2023.
    • Earnings per diluted share were $0.05 in the third quarter of 2024, compared to losses per diluted share of $0.00 in the preceding quarter, and earnings per diluted share of $0.13 in the third quarter of 2023.
    • Net interest income was $5.06 million in the third quarter of 2024, compared to $4.86 million in the second quarter of 2024, and $5.03 million in the third quarter of 2023.
    • Total revenue, consisting of net interest income and non-interest income, was $5.88 million in the third quarter of 2024, compared to $6.04 million in the preceding quarter and $5.89 million in the third quarter a year ago.
    • Non-interest expense was $5.57 million in the third quarter of 2024, compared to $5.82 million in the preceding quarter, and $5.56 million in the third quarter a year ago. The decrease in non-interest expense during the third quarter of 2024 was largely due to lower salary and employee benefits compared to the prior quarter.
    • Average third quarter 2024 total loans increased 2% to $512.8 million, compared to $503.8 million in the second quarter of 2024, and increased 8% from $473.6 million in the third quarter of 2023. Total loans at September 30, 2024, decreased to $509.5 million from $512.1 million at June 30, 2024, and increased 5% compared to $487.2 million at September 30, 2023.
    • SBA and USDA loan production for the twelve months ended September 30, 2024, totaled 22 loans for $14.5 million, compared to production of 18 loans for $14.8 million in the year-ago period.
    • Average third quarter 2024 total deposits grew 2% to $502.5 million, from $490.8 million in the preceding quarter, and increased 6% from $474.1 million in the third quarter a year ago. Total deposits increased 4% to $512.9 million, at September 30, 2024, compared to $492.1 million at June 30, 2024, and increased 7% compared to $481.5 million at September 30, 2023.
    • The Company recorded an $86,000 provision for credit losses in the third quarter of 2024, compared to a $255,000 provision in the second quarter of 2024, and a $350,000 credit to the provision in the third quarter of 2023.
    • Allowance for loan losses, as a percentage of total loans, was 1.18% at September 30, 2024, compared to 1.19% at June 30, 2024, and 1.16% at September 30, 2023.
    • Nonperforming loans, as a percentage of total loans, was 0.26% at September 30, 2024, compared to 0.24% at June 30, 2024, and 0.09% at September 30, 2023.
    • Nonperforming assets, as a percentage of total assets, was 0.21% at September 30, 2024, compared to 0.20% at June 30, 2024, and 0.19% a year ago.
    • Net charge-offs were $214,000 in the third quarter of 2024, compared to $35,000 in the second quarter of 2024, and $77,000 in the third quarter a year ago.
    • SaviBank capital levels remained above the threshold for well-capitalized institutions with a tier-1 leverage ratio of 8.19% at September 30, 2024.

    About Northwest Washington

    SaviBank currently operates six branches in Skagit County, two branches in Island County, one branch in Whatcom County and one branch in San Juan County. The Skagit, Whatcom, Island and San Juan counties region stretches north from the greater Seattle/Everett/Bellevue metropolis to the Canadian border.

    The housing market in Skagit, Island, Whatcom and San Juan counties remains stable, although it has fallen off the record high levels from the past few years. According to the Northwest Multiple Listing Service, the average home in Skagit County sold for $560,000, up 1.91% in September 30, 2024, compared to a year ago, and there was a 2.37 month supply of homes on the market. For Island County, the average house sold for $605,000, down 0.82% from a year ago and supply totaled 3.18 months. For Whatcom County, the average home sold for $611,000, up 10.38% from a year ago and supply totaled 2.61 months. For San Juan County, the average home sold for $829,000, down from 13.65% a year ago and supply totaled 9.05 months.

    Skagit’s population is projected to grow 3.84% from 2024 through 2029, and median household income is projected to increase by 11.41% during the same time frame. Whatcom County’s population is projected to grow 4.97% from 2024 through 2029, and median household income is projected to increase by 10.99%. Island County’s population is projected to grow 2.24% from 2024 through 2029, and median household income is projected to increase by 12.83%. San Juan County’s population is projected to grow 6.78% from 2024 through 2029, and median household income is projected to increase by 10.88%.

    Sources:
    https://www.nwmls.com/real-estate-news/monthly-market-snapshot/

    https://www.capitaliq.spglobal.com/ 

    About Savi Financial Corporation Inc. and SaviBank

    Savi Financial Corporation is the bank holding company which owns SaviBank. The Bank began operations April 11, 2005, and has 10 branch locations in Anacortes, Burlington, Bellingham, Concrete, Mount Vernon (2), Oak Harbor, Freeland, Sedro-Woolley, and Friday Harbor, Washington. The Bank provides loan and deposit services to customers who are predominantly small and middle-market businesses and individuals in and around Skagit, Island, Whatcom and San Juan counties. As a locally-owned community bank, we believe that when everyone becomes Savi about their finances, our entire community benefits.
    For additional information about SaviBank, visit: www.SaviBank.com.

    About Harborstone Credit Union

    Harborstone Credit Union is a Washington-chartered and federally insured credit union headquartered in Lakewood, Washington. Founded in 1955 as McChord Federal Credit Union, serving airmen on McChord Air Force Base (now Joint Base Lewis McChord), Harborstone Credit Union has grown to become one of the largest credit unions in Washington State with over 91,000 members and approximately $2.1 billion in total assets. Harborstone Credit Union has sixteen branches located throughout King, Pierce, and Thurston counties and offers members a full range of products and services with the aim to assist members in achieving financial well-being through innovative financial solutions that foster thriving communities and economic vitality. For more information, please visit www.harborstone.com.

    Forward Looking Statements

    Certain statements in this news release contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to future plans and expectations, and are thus prospective. Such forward-looking statements are subject to risks, uncertainties, and other factors, such as the businesses of Harborstone Credit Union and SaviBank may not be integrated successfully or such integration may take longer to accomplish than expected, the expected cost savings and any revenue synergies from the acquisition may not be fully realized within the expected timeframes, disruption from the acquisition may make it more difficult to maintain relationships with customers, associates, or suppliers, the required governmental approvals of the acquisition may not be obtained on the proposed terms and schedule, or Savi Financial shareholders may not approve the acquisition, any of which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Although we believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove to be inaccurate. Therefore, we can give no assurance that the results contemplated in the forward-looking statements will be realized. The inclusion of this forward-looking information should not be construed as a representation by the companies or any person that the future events, plans, or expectations contemplated by the companies will be achieved. All subsequent written and oral forward-looking statements concerning the companies or any person acting on their behalf is expressly qualified in its entirety by the cautionary statements above. None of Harborstone Credit Union, Savi Financial or SaviBank undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, to reflect circumstances or events that occur after the date the forward-looking statements are made.

     
    SELECTED FINANCIAL DATA                           
    (In thousands of dollars, except for ratios and per share amounts)                      
    Unaudited                              
      Three Months Ended   Nine Months Ended
      September 30,
    2024
      September 30,
    2023
      Var %   June 30,
    2024
      Var %   September 30,
    2024
      September 30,
    2023
      Var %
    SUMMARY OF OPERATIONS                              
    Interest income $ 8,756     $ 7,573     16 %   $ 8,371     5 %   $ 24,962     $ 21,092     18 %
    Interest expense   (3,698 )     (2,539 )   46       (3,509 )   5       (10,411 )     (6,092 )   71  
    Net interest income   5,058       5,034     0       4,862     4       14,551       15,000     (3 )
    Provision for loan losses   (86 )     350     (125 )     (255 )   (66 )     (578 )     539     (207 )
                                                             
    NII after loss provision   4,972       5,384     (8 )     4,607     8       13,973       15,539     (10 )
    Non-interest income   825       852     (3 )     1,181     (30 )     2,587       2,796     (7 )
    Non-interest expense   (5,566 )     (5,559 )   0       (5,823 )   (4 )     (16,920 )     (16,415 )   3  
    Income before tax   231       677     (66 )     (35 )   (760 )     (360 )     1,920     (119 )
    Federal income tax expense   26       119     (78 )     (30 )   (187 )     (144 )     333     (143 )
    Net income $ 205     $ 558     (63 )%   $ (5 )   (4,200 )%   $ (216 )   $ 1,587     (114 )%
                                   
    PER COMMON SHARE DATA                              
    Number of shares outstanding (000s)   3,465       3,460     0 %     3,465     %     3,465       3,460     0.14 %
    Earnings per share, basic $ 0.06     $ 0.16     (63 )   $ (0.00 )   (4,200 )   $ (0.06 )   $ 0.46     (114 )
    Earnings per share, diluted $ 0.05     $ 0.13     (63 )   $ (0.00 )   (4,201 )   $ (0.05 )   $ 0.36     (114 )
    Market value   14.50       6.86     111       14.79     (2 )     14.50       6.86     111  
    Book value   10.93       10.95     (0 )     10.61     3       10.93       10.95     (0 )
    Market value to book value   132.63 %     62.65 %   112       139.40 %   (5 )     132.63 %     62.65 %   112  
                                   
    BALANCE SHEET DATA                              
    Assets $ 623,637     $ 591,370     5 %   $ 621,191     0 %   $ 623,637     $ 591,370     5 %
    Investments securities   36,629       35,140     4       34,698     6       36,629       35,140     4  
    Total loans   509,535       487,184     5       512,080     (0 )     509,535       487,184     5  
    Total deposits   512,912       481,476     7       492,140     4       512,912       481,476     7  
    Borrowings   52,500       52,500           72,000     (27 )     52,500       52,500      
    Sub Debt – Savi Financial Only   17,000       17,000           17,000           17,000       17,000      
    Shareholders’ equity   37,881       37,887     (0 )     36,777     3       37,881       37,887     (0 )
                                   
    AVERAGE BALANCE SHEET DATA                              
    Average assets $ 622,414     $ 583,931     7 %   $ 612,262     2 %   $ 608,559     $ 557,460     9 %
    Average total loans   512,751       473,590     8       503,793     2       502,860       459,765     9  
    Average total deposits   502,526       474,076     6       490,753     2       498,373       456,093     9  
    Average shareholders’ equity   37,329       37,812     (1 )     36,678     2       37,534       37,082     1  
                                   
    ASSET QUALITY RATIOS                              
    Net (charge-offs) recoveries $ (214 )   $ (77 )   N/M     $ (35 )   N/M     $ (422 )   $ (266 )   N/M  
    Net (charge-offs) recoveries to average loans   (0.17 )%     (0.07 )%   N/M       (0.03 )%   N/M       (0.11 )%     (0.08 )%   N/M  
    Non-performing loans as a % of loans   0.26       0.09     183       0.24     6       0.26       0.09     183  
    Non-performing assets as a % of assets   0.21       0.19     10       0.20     4       0.21       0.19     10  
    Allowance for loan losses as a % of total loans   1.18       1.16     2       1.19     (1 )     1.18       1.16     2  
    Allowance for loan losses as a % of non-performing loans   462.69       1,223.59     (62 )     492.30     (6 )     462.69       1,223.59     (62 )
                                   
    FINANCIAL RATIOSSTATISTICS                              
    Return on average equity   2.20 %     5.90 %   (63 )%     -0.05 %   (4,128 )%     -0.77 %     5.71 %   (113 )%
    Return on average assets   0.13       0.38     (66 )     (0.00 )   (4,133 )     (0.05 )     0.38     (112 )
    Net interest margin   3.52       3.66     (4 )     3.48     1       3.47       3.77     (8 )
    Efficiency ratio   81.59       92.23     (12 )     83.37     (2 )     85.53       92.24     (7 )
    Average number of employees (FTE)   136       145     (6 )     140     (3 )     142       146     (3 )
                                   
    CAPITAL RATIOS                              
                                   
    Tier 1 leverage ratio — Bank   8.19       8.24     (1 )%     8.27     (1 )%     8.19       8.24     (1 )%
    Common equity tier 1 ratio — Bank   9.59       9.08     6       9.36     2       9.59       9.08     6  
    Tier 1 risk-based capital ratio — Bank   9.59       9.08     6       9.36     2       9.59       9.08     6  
    Total risk-based capital ratio –Bank   10.78       10.22     5       10.56     2       10.78       10.22     5  
                                   

    Contact:
    Michal D. Cann
    Chairman & President
    Savi Financial Corporation
    (360) 399-7001

    The MIL Network

  • MIL-OSI Global: Scotland’s approach to special needs education is more inclusive than the rest of the UK – but it doesn’t always work in practice

    Source: The Conversation – UK – By Joan Mowat, Reader in the School of Education, University of Strathclyde

    nimito/Shutterstock

    Across the UK, how children are identified with special educational needs, and how they are then supported, differs according to where they live. There are broad similarities in the approaches in Wales, England and Northern Ireland. But in Scotland things are done differently.

    Northern Ireland, Wales and England define children with learning needs as those who have significantly greater difficulty in learning than their peers.

    Scotland takes a more distinctive approach, using the term “Additional Support Needs” (ASN). A child or young person has ASN if they are unable, without the provision of additional support, to benefit from the school education provided.

    This much broader definition means that there is a wide range of reasons a learner could have ASN. These could be permanent or temporary in nature: they could be, for instance, experiencing family bereavement or bullying. Unsurprisingly, Scotland’s broader definition has meant that it has a significant proportion of learners identified with ASN – 37% in 2023.

    Across a wide range of policy documentation, inclusive education in Scotland is understood broadly to encompass an extensive range of issues, such as addressing discrimination more widely – not just related to disability.

    This is underpinned by a presumption of mainstreaming in Scottish law. This is the assumption that, with the exception of specific circumstances, children identified with additional support needs will be educated in mainstream schools.

    Making inclusivity work

    There is a broad consensus from parents, children, teachers, politicians and others that the Scottish approach to inclusive education is the correct way forward. However, there is significant divergence between policy intent and practice.

    An independent 2020 review investigated how provision for additional support needs worked in practice – and found many failures.

    The review showed that the needs of children and young people for additional support were not being met adequately. There were disconnects between the system’s intentions and what children and young people were actually experiencing.

    The report established that not all children, young people and those who support them flourish or are equally valued within the education system. Their voices are not being heard by those who have the power to make a difference. Service providers and senior leaders in schools experience significant challenges in being able to meet needs, but this is not recognised sufficiently at a higher level.

    A subsequent inquiry, concluded in 2024, found many reasons for this divergence between policy and practice. These included a lack of resources, the need for ongoing professional training for school staff and issues with school culture.

    The inquiry heard that resourcing for Additional Support for Learning had decreased over time. It found that many recently built schools had not been designed to be accessible to all. It heard about the need for school leaders to have training which has equity, inclusion and social justice at its heart to effect the necessary cultural change.

    Learning from practice

    Across the UK and in Ireland, an issue of concern is the lack of a clear definition of what inclusive education means and entails and how it should be implemented in practice. This is reflected in the current crisis in the growing demand for specialist provision.




    Read more:
    There’s a crisis in special educational needs provision: here’s the situation across the UK and Ireland


    A recent review of special educational needs education in England by the National Audit Office has pointed out that mainstream schooling needs to be much more inclusive, that schools are not incentivised to prioritise it, and that the Department of Education should “develop a vision and long-term plan for inclusivity across mainstream education”.

    In Scotland, in contrast to the other nations, greater attention has been devoted to coming to a shared understanding of what an inclusive education system constitutes. This is reflected within the National Framework for Inclusion, the third edition of which was published in 2022. This framework underpins the professional standards for teachers and informs policy more generally.

    The Framework, produced under the auspices of the Scottish Universities Inclusion Group and influenced by the work of inclusive education expert Lani Florian and colleagues on inclusive pedagogy, offers a series of reflective questions to promote inclusive practice. This is indicative of a more consensual and collaborative approach towards educational policy making in general. But it is clear that more work needs to be done to make this understanding of inclusivity a widespread reality in schools.

    The differences in policy approaches to additional support and learning needs mean that the profile of a child identified with special educational needs will vary depending on which country they live in. Furthermore, the variations in the education systems themselves will affect the child’s placement and the support they may receive.

    Collaborative cross-nation work is essential to gain a stronger understanding of the strengths and weaknesses of different approaches to meeting the additional learning needs of children and young people.

    Carmel Conn has received funding from Welsh Government.

    Brahm Norwich and Joan Mowat do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.

    ref. Scotland’s approach to special needs education is more inclusive than the rest of the UK – but it doesn’t always work in practice – https://theconversation.com/scotlands-approach-to-special-needs-education-is-more-inclusive-than-the-rest-of-the-uk-but-it-doesnt-always-work-in-practice-240257

    MIL OSI – Global Reports

  • MIL-OSI USA: From Policy to Action: Anna-Michelle McSorley Focuses on Health Equity for Latinos

    Source: US State of Connecticut

    Anna-Michelle McSorley, assistant professor of allied health sciences, joined the faculty of the College of Agriculture, Health and Natural Resources (CAHNR) this fall. Her work focuses on addressing health inequities related to policies and data collection for Latinos, particularly Puerto Ricans.

    “I’m well-situated at UConn to engage with the very population that is migrating from that territorial context into the state of Connecticut,” McSorley says.

    According to the most recent U.S. Census data, 18.6% of Connecticut’s population is Hispanic or Latino, equating to more than 670,000 people. Puerto Ricans constitute the largest Latino group within this population, representing roughly 45%. Nearly six million Puerto Ricans live outside of Puerto Rico in the States in total.

    McSorley is based at UConn Waterbury. Waterbury has a large Latino population, including more than 110,000 Puerto Ricans. This positions McSorley well to engage directly with the communities her research stands to impact.

    “It’s the rigor of research translated into policy action to benefit the people we are trying to serve,” McSorley says.

    Much of McSorley’s work focuses on Puerto Rico, which is neither an independent nation nor a state, but a territory of the United States.

    McSorley, who identifies as a “Nuyorican” raised between New York and Puerto Rico, understood this unique status from a young age. She realized there was something about how she was able to travel between the U.S. and Puerto Rico that was distinct from other Latino communities and countries.

    “I started thinking about that very early in my life,” McSorley says. “Then, through my education, I was able to pinpoint this difference, identify policies and structures that affect it, and have the vocabulary to highlight it as part of my research.”

    In her research, McSorley takes an expansive view of the federal and local policies, systems, and agencies that affect our health.

    “I think of traditional health policies,” McSorley says. “But I also think of others in our social sphere, like economic policies, that also ultimately shape health outcomes.”

    McSorley recently contributed three papers to a historical special edition of the American Journal of Public Health – the first to exclusively focus on Latino health issues – in which Puerto Rico is prominently featured.

    McSorley was the first author on one of these papers focusing on three key policy areas contributing to health and health care inequities in Puerto Rico: FEMA, Medicaid, and political representation in the island area.

    McSorley and her collaborators assess the ways in which the distribution of FEMA aid and Medicaid funds to the territory perpetuate health disparities.

    McSorley’s paper also highlights the role of political representation, or the lack thereof, in the differential application of federal policies in the territory of Puerto Rico.

    “Yes, these are matters of health policy,” says McSorley. “However, it’s also a question of political processes, potential political biases, and power dynamics.”

    As a territory, Puerto Rico is not a self-governing state. Puerto Ricans in Puerto Rico are U.S. citizens but cannot vote in presidential elections. They are governed by policies enacted by the U.S. Congress, thousands of miles away.

    In a major election year, Puerto Rico’s unresolved status as a territory could become a mobilizing issue across the Latino community, McSorley says.

    Anna-Michelle McSorley from the Department of Allied Health Sciences at UConn Waterbury. (Jason Sheldon/UConn photo)

    “After all, what is being observed in Puerto Rico also serves as a sort of ‘canary in the coal mine’ for communities across the States,” says McSorley. “For instance, the Medicaid block grant structure employed in Puerto Rico has been proposed as an alternative Medicaid funding structure in the States. If applied, this could lead to the same types of cuts to benefits we see in Puerto Rico.”

    The other papers to which McSorley contributed in this edition focus on improving data collected on Latino groups. Data often treats Latino populations as a monolith. However, this group includes dozens of unique populations.

    One paper calls for better empirical methods for data collection and health statistics that more accurately represent the population. The second paper focuses on Latino reproductive health inequities.

    “I want to address data gaps,” McSorley says. “How we collect data on Latinos, and Puerto Ricans specifically in the U.S. or the territory matters in terms of honoring different needs of populations.”

    This work relates to CAHNR’s Strategic Vision area focused on Promoting Diversity, Equity, Inclusion, and Justice and Enhancing Health and Well-Being Locally, Nationally, and Globally.

    Follow UConn CAHNR on social media

    MIL OSI USA News

  • MIL-OSI Economics: Risk reduction redefined: How compromise assessment helps strengthen cyberdefenses

    Source: Securelist – Kaspersky

    Headline: Risk reduction redefined: How compromise assessment helps strengthen cyberdefenses

    Introduction

    Organizations often rely on a layered defense strategy, yet breaches still occur, slipping past multiple levels of protection unnoticed. This is where compromise assessment enters the game. The primary objective of these services is risk reduction. They help discover active cyberattacks as well as unnoticed sophisticated attacks that occurred in the past by doing the following:

    • Tool-assisted scanning of all endpoints;
    • Host and network equipment log analysis;
    • Threat intelligence analysis, including darknet search;
    • Initial incident response to contain discovered threats.

    In this article, we delve into the root causes of real-world cases from our practice, where despite having numerous security controls in place, the organizations still found themselves compromised. In all the cases in question, compromise assessment was the last line of defense that successfully detected incidents.

    Patch management issues

    The vulnerability patching process typically takes time for a variety of reasons: from actual patch release all the way to identifying vulnerable assets and “properly” patching them, considering any pre-existing asset inventory and whether the accountable personnel will learn about the vulnerability in time. There are multiple factors that may delay this process, including formality in business continuity requirements, e.g. inability to reboot the server without a downtime window.

    That’s why insufficient patch management processes on the customer side are one of the most common root causes of incidents we observe in compromise assessment projects. Moreover, exploitation of a public-facing application was the root cause in 42.37% of cases investigated by the Kaspersky Global Emergency Response Team (GERT) in 2023.

    During the investigation of one case, we identified that the web server was patched a month after the attacker infiltrated the network: this delay was a treasure trove for the threat actor, since the organization was left unprotected and the attack went unnoticed.

    • Immediately after compromising the server, the attacker deployed a SILENTTRINITY C2 stager.
    • They attempted to dump credentials via a custom packed version of Mimikatz on the first day, and by dumping the LSASS process memory to disk on the fourth day.
    • During that month, they conducted internal reconnaissance of SMB shares until they obtained the credentials of the domain administrator.

    Policy violations by employees

    Most organizations focus on external threats; however, policy violations pose a major risk, with 51% of SMB incidents and 43% of enterprise incidents involving IT security policy violations caused by employees. An “employee” here is any person who has a regular employee’s level of access to the organization’s systems.

    In one of our compromise assessments, we identified an incident whose root cause was traced to a contracted cybersecurity consultant. During an interim report meeting, we presented a list of compromised accounts (a result of darknet search playbook execution) to the customer’s board of directors along with statistics on the accounts on the list. Of all the compromised accounts, 71% belonged to the customer’s employees, with 63% of these being employees’ accounts in the services accessible from outside the company.

    Statistics on the organization’s compromised accounts. Source: Kaspersky Digital Footprint Intelligence

    The list contained a C-level officer’s account, among others. Since this was a critical situation, with everyone suspecting that officer’s laptop had been compromised, we ran a quick investigation during the meeting and figured out that credentials had been leaked from a third-party consultant’s machine. The chairman created an account in an external system with his own corporate email and shared the credentials with the consultant. Since it was clear that consultant’s laptop might contain other confidential data, we developed the following tactical response plan.

    1. Collect a forensic triage package from the consultant’s laptop.
      • Analyze the package to identify all leaked credentials.
      • Check the consultant’s laptop for malware.
      • Run a keyword-based search to identify potential leaked documents.
    2. Review email/VPN/other logs of likely affected services available from outside the organization to detect any abnormal activity by compromised accounts.
    3. Double-check if multi-factor authentication was enabled for the compromised accounts at the time of compromise.
    4. Update the incident response plan based on the findings. Reset the password and install a new OS image on the laptop at a minimum.

    This incident could have been prevented by ensuring that employees and any third party with access to the network followed the policies. This is easy to say but it sometimes gets tricky and requires time, effort and deep technical knowledge in practice.

    MSP/MSSP issues

    Usually, MSSPs are more focused on continuous monitoring and alerting, ignoring detection gaps identification and visibility enhancements: a periodic review of the customer’s event audit policy, enabling a disabled log source or highlighting a poorly configured log source. For example, the X-Forwarded-For HTTP header is often not enabled on web servers. As a result, the SOC can’t see the original IP of the connection and determine the attack source, which complicates incident investigation.

    In our compromise assessment practice, we frequently identify incidents that external SOCs have missed. During one project, we reviewed third-party antivirus logs and identified multiple webshell detections on the same server for several days.

    Day from first exploit attempt File path Verdict Message
    Day 1 C:Windows[redacte
    d for privacy].aspx
    Backdoor.ASP.WEBS
    HELL.SM
    Malicious software deleted
    successfully
    Day 2 C:Windows[redacte
    d for privacy].aspx
    Backdoor.ASP.WEBS
    HELL.SM
    Malicious software deleted
    successfully
    Day 3 C:Windows[redacte
    d for privacy].aspx
    Backdoor.ASP.WEBS
    HELL.SM
    Malicious software deleted
    successfully
    Day 4 C:Windows[redacte
    d for privacy].aspx
    Backdoor.ASP.WEBS
    HELL.SM
    Malicious software deleted
    successfully
    Day 7 C:Program FilesCommon
    Filesmicrosoft sharedWeb
    Server
    Extensions16TEMPLATELA
    YOUTS[redacted for
    privacy].aspx
    Backdoor.ASP.WEBS
    HELL.SM
    Malicious software
    deleted successfully
    Day 9 C:Windows[redacte
    d for privacy].aspx
    Backdoor.ASP.WEBS
    HELL.SM
    Malicious software deleted
    successfully

    The MSSP SOC analysts had failed to raise an alert, because the malware was deleted by the antivirus each time. This is a textbook example of a junior’s mistake. If a motivated adversary has access to the server via a vulnerability, they would try a range of techniques and tactics to try to bypass security. This is where the human analyst’s attention is needed to add an additional layer of protection and prevent this from happening.

    This was exactly our case: the Kaspersky experts initiated deep forensic analysis and found out that the attacker tried different webshells over a few weeks. They finally found one that was not detectable by the AV vendor at the time, so they were able to get into the network. Further investigation revealed that the entire domain remained compromised for several months.

    Monitoring and verifying the quality of service from your MSP or MSSP is often challenging. Contractual agreements typically prevent clients from accessing the provider’s internal systems for a thorough review. Additionally, customers may lack the technical expertise or time required to oversee every action taken by their subcontractors.

    MSPs and subcontractors might not have enough cybersecurity awareness, which poses a challenge, where they might inadvertently expose the network to a cybersecurity risk by misconfiguring some security control or not following the best practice.

    Incomplete incident response

    Post-breach eradication of a threat actor requires planning of multiple actions to ensure complete removal of the attacker from the network or systems:

    • Removal of malware, scripts, tools, and backdoors installed by the attacker.
    • Changing the passwords for the compromised accounts and deleting any unauthorized service accounts that attackers might have created
    • Rolling back system configurations that might increase the attack surface or introduce new vulnerabilities

    Even after the malware is deleted, certain forensic artifacts remain in the system. Therefore, it is common to identify past attacks during compromise assessment. Intentional misconfiguration introduced by an attacker is a rarer case, but we occasionally find that enterprise incident response teams fail to eradicate these procedures.

    As part of the Active Directory configuration review playbook, Kaspersky analysts identified a Group Policy with several suspicious properties.

    1. A modification to the AllowReversiblePasswordEncryption property of each AD account, which made domain controllers store passwords in decryptable form (without using the one-way hash function). This configuration would enable the attacker to dump credentials in plaintext via attacks like DCSync.
    2. Disabling the audit of operations related to Kerberos Tickets. This configuration would hide attacker logons on all endpoints managed via Active Directory.

    False sense of security

    It’s crucial to remember that the effectiveness of even top-tier products is at its highest when these are properly installed, configured, and integrated. Without proper configuration, organizations cannot fully harness the potential of their cybersecurity solutions, which hinders their ability to create a robust defense.

    In our compromise assessment practice, we have witnessed several cases, listed below, which were detected because specialized scanners were deployed alongside an existing AV/EDR solution, providing a second layer of detection capabilities.

    • Absence of detection rules. The customer’s antivirus was unable to detect a pivotnacci webshell because the vendor did not have a defined detection rule.
    • Outdated malware signatures. The client antivirus was unable to detect malware because the network port listening to the central update server was blocked by a firewall, preventing the antivirus from receiving the latest updates.
    • Shadow IT. The customer’s antivirus was not deployed on certain servers because those servers were not part of Active Directory, which left them unprotected.

    Conclusion

    Compromise assessment has proven to be an indispensable component in the broader cybersecurity strategy of these organizations. The cases discussed above underscore that no security measure, no matter how advanced, is entirely foolproof. From internal policy violations to patch management failures and overlooked misconfigurations by third-party service providers, the risks are manifold and often hidden in plain sight. These examples highlight that a false sense of security can be more dangerous than no security at all, as it leaves organizations vulnerable to threats that might have otherwise been detected with thorough, periodic assessments.

    By integrating compromise assessment into the security framework, organizations can uncover these hidden threats, address vulnerabilities that slip through the cracks, and ultimately strengthen their overall security posture. In a world where cyberthreats are constantly evolving, the proactive identification and mitigation of potential compromises is not just advisable but also necessary. This approach ensures that organizations are not only reacting to breaches but are continuously verifying the effectiveness of their defenses, thereby reducing the risk of undetected compromises and safeguarding their assets more effectively.

    MIL OSI Economics

  • MIL-OSI Economics: Trade finance resilience and low credit risk persist amid global challenges, confirms ICC 

    Source: International Chamber of Commerce

    Headline: Trade finance resilience and low credit risk persist amid global challenges, confirms ICC 

    The International Chamber of Commerce (ICC), along with partners Global Credit Data (GCD) and Boston Consulting Group (BCG), has released its 2024 Trade Register Report, reaffirming the resilience of trade finance instruments and the continued low credit risk across products despite ongoing geopolitical and economic challenges . 

    The 2024 report confirms that trade, supply chain and export finance continue to exhibit low risk, with default rates remaining low across all regions and asset classes overall. When defaults do occur, they are generally idiosyncratic, stemming from well-known commercial, geopolitical or macroeconomic factors. As global trade faces ongoing geopolitical and economic pressures, these financial products continue to serve as vital tools for mitigating risk and maintaining liquidity, supporting the stability of trade flows. 

    The ICC Trade Register remains the leading, authoritative global source on credit risk and broader market dynamics in trade and supply chain finance. Its data set represents nearly a quarter of all global trade finance transactions. This 2024 edition includes extended market insights and data on global trade and trade finance. New features include insights from ICC and BCG’s practitioner survey on key trends and opportunities in trade and supply chain finance as well as a comprehensive data pack with analysis on credit risk in trade finance, available for member banks or for separate purchase through ICC.  

    This year, ICC and GCD demonstrated the value of high-quality, representative data in shaping trade finance regulations through their contributions to emerging regulation on Basel III capital treatment. Krishan Ramadurai, outgoing Chair of the ICC Trade Register Project, encourages more banks to participate in the project and says that more data will only reinforce the point that trade finance is a low default asset class.  

    The ICC Trade Register continues to look beyond credit risk, with detailed analysis on market trends and competitive dynamics across the trade and supply chain finance market.  

    Ravi Hanspal, Partner at BCG, said: 

    “Despite ongoing headwinds, we are seeing the trade and supply chain finance market continue to evolve rapidly. Banks are observing that customers are now prioritising leading service and digital capabilities more than ever, driving a step-change in investment by banks in technology to accelerate seamless trade.” 

    Marilyn Blattner-Hoyle, Global Head of Trade Finance and Working Capital Solutions at Swiss Reinsurance Company, said:  

    “ICC’s Trade Register and its deep data over many cycles is perhaps the most critical publication in the trade industry. The Register’s role in sharing quantitative and qualitative statistics underpins the power of trade as well as the stability of trade-related credit risks. It helps us to get comfortable insuring more trade with our bank clients, thus making trade and the world more resilient together. We use the Register in our actuarial assessments as well as our internal/external advocacy. We are proud to be the first insurance sponsor of the publication, affirming the important role of insurance in the global trade ecosystem.” 

    Christian Hausherr, Product Manager for SCF at Deutsche Bank and member of ICC Trade Register Steering Committee, said:  

    “In its thirteenth year after being established, the ICC Trade Register proves its relevance and importance to the trade finance community. Since then, the data approach as well as the scope of the Trade Register have been materially enhanced by the team managing the publication process on an annual basis. As of today, the Trade Register offers unique insights not only into trade finance risk, but also provides valuable macro-economic insights to its readers.” 

    ICC Policy Manager Tomasch Kubiak thanks member banks for their ongoing contributions.

    “ICC is very appreciative of all the efforts member banks are putting in yet again for an enhanced version of the ICC Trade Register. This year’s project provides a full insight into meaningful trends in global trade finance as well as complete data collected from our members, which is now available on demand,”  

    he said.

    Read or purchase the full ICC Trade Register Report. 

    MIL OSI Economics

  • MIL-OSI USA: National Press Club

    Source: US Department of Veterans Affairs

    Good morning. Emily Wilkins, thanks for that kind introduction, and for leading this important organization. Let me recognize the Press Club’s American Legion Post and its commander, Tom Young, and all the Veterans Service Organizations represented here. Veterans Service Organizations are critical to helping us serve Vets, their family members, caregivers, and survivors.

    I want to thank all the journalists who served our country in uniform. Journalists like Thomas Gibbons-Neff, a Marine combat Vet and the son of a combat Vet, who writes powerfully now about the ongoing conflict in Ukraine. I’ve been particularly struck by his writing on the end of America’s deployments to and withdrawal from Afghanistan.

    While I want to be careful here as a non-Veteran myself, it struck me that his writing brought to life the painful experiences that thousands of his fellow Afghanistan Vets wrestle with to this day. Navy Veteran Zack Baddorf, founder of the group Military Veterans in Journalism, is helping ensure more Vets go into journalism, a vocation that is so important to our democracy that Vets have sacrificed everything to protect it.

    Zach’s getting more Vets into newsrooms around the country—improving coverage of Veterans issues and increasing trust in the media. To Thomas and Zack, to all Veteran journalists, and to all journalists—thank you.

    Veterans Day is around the corner, so now’s a good time to begin preparing our hearts and minds for that celebration—remembering, recognizing, and thanking all those men and women who have fought our nation’s wars and defended us during periods of restless peace. But our profound gratitude to Veterans goes beyond Veterans Day, because Vets continue serving this country long after they take off their uniforms.

    They’ve dedicated themselves to building an America that is stronger, freer, fairer for each new generation, that more perfect Union we all seek. Anchored by their commitment to service over self, they continue serving this country, always looking out for one another, with their enduring sense of duty, valor, and love of country. Veterans set the highest example of what it means to be an American citizen. So, at VA, we strive to serve Vets every bit as well as they served—and continue to serve—all of us. Veterans Day is a time to renew that commitment, renew what President Biden calls our country’s one truly sacred obligation—to prepare those we send into harm’s way, and to care for them and their families when they come home.

    Now, when I first spoke to the Press Club four years ago, the country was in a historic public health emergency, and VA’s employees were risking their lives to save the lives of Veterans. Despite those challenges, I told you that VA public servants were breaking all-time records, providing more care and more benefits to more Vets than ever before. And each year, I’ve come back here with a similar report. This year is no different. By nearly every metric, VA’s smashing records we set last year. That’s even more care, more benefits, to more Vets. And it’s not just more care. It’s better, world-class care, and it’s better health outcomes for Veterans than in the private sector. It’s not just more benefits, it’s faster, more accessible benefits we’re delivering by meeting Vets where they are rather than expecting them to come to us. And it’s not just more Vets, its more Vets trusting VA at rates higher than ever before. President Biden, a military family member and the surviving father of combat Veteran Major Beau Biden, has been unrelenting—and forcefully demanding—in his advocacy for Veterans and their families. He has spent his entire career fighting like hell for Vets, just as he charged me and my VA teammates to do four years ago. Under President Biden’s leadership, VA has been made into something different—something new.

    Nowhere has that been more evident than with President Biden’s toxic exposure law—the PACT Act. Because of that law, more than 5.8 million Vets have been screened for toxic exposures. More than 740,000 have enrolled in VA care. And more than 1.1 million Veterans and 11,000 survivors are receiving benefits. The toxic exposure legislation called for a phased-in approach, getting Vets access to care and benefits as late, in some cases, as 2032. But President Biden made it clear that timeline wasn’t fast enough for one simple reason—for too long, too many Vets were exposed to harmful substances and waited decades for help. So, he directed us to accelerate implementation so all eligible Vets and their survivors got the care and benefits they deserve—as quickly as possible.  

    And that has been life-changing for so many families.

    We can measure President Biden’s record-breaking work on behalf of Veterans—on ending Veteran homelessness, on removing barriers to mental health care, on getting Vets in crisis the support they need when they need it, and more. In fact, you probably saw the press release we put out this morning detailing all of VA’s record-breaking accomplishments over the course of the past year. But we can never put a value on the countless miracles that have improved and made Veterans lives better. Numbers and statistics can’t adequately describe the impact. Dollars and data can’t ever really begin to capture and communicate the values, the personalities, the humanity of the Veterans we have the honor of serving. So, as I prepared for today’s speech, I thought, maybe those are the very things we need to talk about. Let me tell you three stories that demonstrate the impact and importance of the work we do, together.

    I’ll start with Angela Bell. I met Angela in Hampton, Virginia last month. Angela is one of the most generous and courageous people I’ve ever met. She lost her son, Sean, and has turned her grief into action. Let me tell you a little bit about Sean. Sean knew he wanted to join the military since he was a kid. He was so determined to enlist after graduating high school that at 17 years old he got his dad to sign the parental consent paperwork. And Sean served all over America—Georgia, North Carolina, California—served all over the world, Korea, Afghanistan, Iraq. He married and had a son, Giovanni.

    He earned his Bachelor’s degree. He earned a Master’s. He earned a second Master’s and was working on his Ph.D.—he liked to tease his mom, telling her she’d have to start calling him Dr. Bell. Sean was the kind of guy who’d invite other Soldiers over to Angela’s house for Thanksgiving because they had nowhere else to go. He’d ask his mom to send him extra care packages while he was on deployment, not for himself, but to share with his brothers- and sisters-in-arms who didn’t get anything from back home. He’s an example of the selfless Vet I was talking about a few minutes ago.

    Well, after Sean came back from his second deployment to Central Command, Angela started noticing some changes. Every time firecrackers went off, he’d jump. Being in traffic was overwhelming, anxious about other vehicles around him. He was enduring some personal problems, family health issues and more. When Angela tried to get Sean help, he refused, worried about losing his clearance. Sean had served in the Army for 20 years. And just a few weeks before his retirement in 2021, he died by suicide.

    Now, I’ve spoken at many events focused on VA’s and our partners’ work to end Veteran suicide. I’ve explained that ending Veteran suicide is our number one clinical priority at VA. I’ve talked about resourcing and about people and organizations singularly devoted to end Veteran suicide. I’ve talked about data and processes and what we’re doing to try to make a real, substantial difference—promising initiatives. And I’ve shared story after story about Veterans not just surviving, but getting the mental health care they need and thriving. Yet, none of that will bring Sean back or heal his family’s heartbreak. None of that gets to the enormous tragedy of Veteran suicide or gets to the powerful, painful emotions.

    So, here’s why I’m telling Sean’s story, Angela’s story. Angela’s doing everything she can do so other families don’t suffer the same devastation when she lost Sean, when this country lost Sean. “I try to be the face of [those] who [were] left behind,” Angela says. “I’m so passionate about telling his story because if it helps one person, whether I know it or not, then I’m doing what I’m supposed to do.” She said, “People tell me I’m so strong. I’m not. I’m a mom, advocating and fighting for my kid.” Angela’s the President of the Hampton Roads Chapter of American Gold Star Mothers, and she often speaks on our work to end Veteran suicide. Thanksgiving was Sean and Angela’s favorite holiday.  And in his memory, Angela hosts an annual Thanksgiving meal and invites servicemembers, Veterans, and their families to join her. The gathering quickly outgrew her dinner table, and then got too big for her home. This year, Angela’s renting a dining hall to host dozens of families from the military community to share a warm Thanksgiving meal together. The community she’s built has helped Angela heal. And she heals by helping others, so they’re not alone, and so they know there is always, always hope. Those are the kind of people we have the incredible privilege and honor to serve at VA.

    But we have so much work to do to keep our promise to Vets. That leads me to my next story. It was almost exactly 23 years ago—October 5th, 2001—when the first US forces arrived at the Karshi-Khanabad air base in Uzbekistan, a former Soviet base known as “K2.” K2 Veterans were among the first to deploy after the September 11th terrorist attacks, bravely conducting and supporting combat missions against al-Qaeda and the Taliban in Afghanistan. They went to a place at K2 that Veterans often describe as a “toxic soup” of exposures, a place unlike other operating bases occupied by American forces. A place that jeopardized their immediate and long-term health. Colonel Gordon Peters vividly describes what he says was a “chemical odor so intense that it seemed as if someone could light a match and the entire area would ignite.” Some K2 Vets returned home and developed disabling illnesses and conditions. Their service is heroic.

    Mindful of the passage of time since their heroic service, we’ve moved aggressively to care for K2 Vets since the PACT Act was passed in 2022.

    • First, we eliminated the PACT Act phase-in period for presumptive benefits—making all K2 Vets immediately eligible for more than 300 presumptive conditions.
    • Second, earlier this year, we made all K2 Veterans eligible for VA health care, whether or not they’ve filed a benefits claim with VA.
    • Third, after consulting with K2 Vets this summer, we’ve begun rulemaking to make chronic multi-symptom illness—also known as Gulf War Illness—a presumptive condition for K2 Veterans, fixing a gap in the PACT Act.
    • Fourth, for every K2 claim, we’ve made sure the unique toxic exposures at K2—that toxic soup—is taken into account, and each new K2 claim gets reviewed a second time before VA reaches a final decision.
    • And fifth, we’ve reached out to every known living K2 Veteran to encourage them to come to us for the care and benefits they deserve.

    All of that work has been driven by Veteran and survivor advocates, reporters like you, and a tireless VA team working on toxic exposures, some of the best toxic exposure researchers, scientists, and epidemiologists in the world. Because of that hard work,

    13,000 of the 16,000 K2 Vets are enrolled in VA healthcare, nearly 12,000 are service-connected for at least one condition, receiving an average of $30,000 a year in earned benefits. All told, K2 Vets now have higher claim and approval rates than any other cohort of Veterans.

    But we have more work to do to get this right. Some K2 Vets still understandably feel overlooked, because they’ve waited for 23 long years to see their uniquely dangerous service recognized. We still have to do better and be better, for those K2 Vets. That’s why, today, I’m proud to announce that VA will begin rulemaking to add bladder, ureter, and other genitourinary—or GU cancers—as new presumptive conditions for K2 Vets and all eligible toxic-exposed Vets. And we aren’t stopping there.

    Next week, we will complete the scientific review of multiple myeloma and leukemias. The preliminary findings are promising and suggest that VA will be able to make those conditions presumptive for K2 Veterans and all eligible Veterans. And once the final results are in, VA will look to extend that presumption to all biologically linked blood cancers. This may include polycethemia vera—or P. Vera—a condition identified by K2 Vets. We will do so based on biological science and on the results of a PACT Act presumptive process, without requiring Vets to wait for VA to complete additional studies. And moving forward, I am committed to establishing service connection for any rare condition found in K2 Vets which has a plausible biological link to the toxic soup we know and acknowledge was present at K2.

    Because we are a new VA. One that works with Veterans for Veterans. And one that delivers outcomes for Veterans. We will no longer take decades to consider new presumptive conditions, but will instead use the tools provided by the PACT Act as quickly as possible to proactively establish service connections whenever the evidence supports it. We put that promise into action in 2021 when the President directed us to work on a Central Command burn pit presumption, nearly two years before passage of the PACT Act. We put it into action in 2022 when we established service connection for asthma, sinusitis, rhinitis, and rare respiratory cancers—again today with GU cancers and soon for multiple myeloma and blood cancers. We’ll continue proving that we’re a new VA by using the expedited PACT Act process to look further into that toxic soup at K2. The President considers this unfinished business—and expects VA to establish a presumption of service connection for every condition associated with deployment to K2 – and we’re committed to doing so.

    We have to keep listening to K2 Vets and all Vets. We have to keep fighting like hell for them. So, thank you to the Vets, advocates, and journalists who have been instrumental in highlighting the heroes who served at K2. You make us better by holding us accountable. We are proud of our accomplishments, these outcomes for Veterans. But we are candid when we come up short—candid with ourselves, with you, with Vets, with Congress, and with the American people. America’s Vets deserve our very best, and we’ll never settle for anything less. Hold us to it.

    Third and finally—let me talk about VA’s people—your public servants—who are keeping our country’s sacred obligation to Vets. They are the best, most compassionate, highest-performing, and most dedicated workforce in the federal government—in the entire country—folks who want to make real differences in the lives of Veterans. I’m proud and I’m privileged to be on their team.

    I’m reminded of that every single day, but it was driven home most profoundly when I was surveying Hurricane Helene’s destruction in Asheville, North Carolina. For over a month now, the Asheville VA, the VISN 6 leadership team, and their incident command team have been working around the clock, tirelessly, to support Vets and staff impacted by the storm. Asheville VA’s food service employees and the Veterans Canteen Service disaster response team loaded up two tons of food and served 17,000 meals in the first week of recovery efforts, a source of great comfort in the aftermath of the crisis.

    Their Volunteer Services have collected thousands of donations from fellow VA employees. And our chaplains have been holding candlelight vigils, a space for Veterans and VA staff to be together … supporting and comforting one another during this tragedy.

    In the hardest hit areas across Western North Carolina, we identified over 2,600 at-risk Vets, Vets undergoing chemotherapy, with spinal cord injuries, requiring oxygen, and other support. We couldn’t call many of them because phones were out—cell phones and landlines—so right after the hurricane, VA teams went out to check on unaccounted Vets in-person. They achieved 100% accountability for all at-risk Vets in their care. Given the devastation in those communities, that is an amazing accomplishment. And they continue reaching out to Veterans in the area to make sure they have everything they need.

    For VA nurses Melissa Mehaffey and Lisa Sellers, taking care of Vets in this crisis is their duty and it’s also about holding tight to hope. Lisa and Melissa have been a pair since starting at VA on the same day ten years ago. They’re Haywood County natives and came to work at VA because they have family members who are Vets. “Here,” Melissa says, “it’s all about the Veteran. The heart of our system is with our patients.”

    “When we got a name, we knew—those are our people,” Melissa said. “We’re going to find them, figure out what they need, and help them. We’re going to make sure they are ok.” She says, “Going out there and taking care of our people … this was our tiny piece of hope.” One of the Vets they checked on had been without power, and no one could reach him by phone. He wrote us a letter. “No one but VA,” he said, “No one but VA would do something like that … in that moment there was a human connection that no other healthcare system would have even thought of.”

    Army Veteran and VA employee Corey Anderson feels the same way. Corey was deployed to Kuwait and Iraq from 2005 to 2007, and the devastation he saw in Asheville reminded him of war zones. Corey went to check on one rural Veteran, drove until the road was gone, washed away. So what did Corey do? He parked his car in the middle of the road and hiked the rest of the way. He climbed up the mountainside with a pack full of supplies for the Veterans’ upcoming medical procedure. Corey says, “Doing this work means the world to me. I’m a Veteran. My dad, mom, sister, and so much of my family is made up of Veterans. It just means the world to me to do my part.” Veterans helping Veterans, there is nothing better. VA’s employees across the Southeast and Appalachia—people like Melissa, like Lisa and Corey—worked long hours through two devastating hurricanes, some working multiple shifts or staying overnight at the hospital. They risked their own lives to serve Veterans. Because whether we’re in times of calm or chaos, VA’s public servants always mobilize around one core mission—saving and improving Veterans’ lives. And right now there are Veterans at home, with their families—happy, safe, and healthy—because of them. I am incredibly grateful to each and every one of them.

    Now, our mission at VA is far from over. There are huge challenges ahead. And as we look to the future, we’re going to continue to do better for Vets. We’re going to continue to be better for Vets. This future at VA isn’t because of me. In fact, I had asked that this new VA be represented here today at the Press Club by the best face of this new VA: our Deputy Secretary, a combat Veteran, the daughter and granddaughter of combat Veterans, someone who gets her care at VA, and someone who is part of the fastest growing cadre of Veterans at VA: women. The VA is new and more effective because of the Veterans, their families, caregivers, and survivors we are so blessed to serve—and because of Veterans like Tanya Bradsher who serve their fellow Veterans.

    This future is because of the 450,000 VA employees in your communities and neighborhoods across the country who keep Vets at the heart of their care. And it’s because of partners like you, too.

    I’ll close with a final word to the Vets watching today. Your honorable service in uniform sets the example for the rest of the country. You’re the keepers of our national ethos—that deep and abiding sense of purpose you learned in serving, your camaraderie and your care for each other, your sense of teamwork that made you stronger, together—in combat and, now, in your communities. That’s exactly what we need, what this country needs. Your examples are something that all of us can learn from. So, again, to all Veterans—those of you here today and those watching, thank you for everything. And to the Press Club, my thanks for all that you do holding us accountable to Vets, and telling their stories in the powerful ways that you do. God bless you all. And God bless our nation’s servicemembers, our Veterans, their families, caregivers, and survivors. With that, Emily, let’s go to questions.

    MIL OSI USA News

  • MIL-OSI United Kingdom: The Army gives the lessons as STEM comes to Salisbury Plain

    Source: United Kingdom – Government Statements

    Hundreds of Army cadets will try their hand at solving military-base challenges with STEM during their October half term.

    • Nearly 290 cadets are competing in STEM based challenges supported by 10 different Army units throughout half-term week.
    • The exercise is inspired by real Army STEM-based scenarios including how to provide vital aid through airlift operations.

    Hundreds of Army cadets will try their hand at solving military-base challenges with STEM during their October half term.

    Organised by the Royal Signals, and supported by 10 other Army units, the cadets are set to complete a range of STEM-based challenges built on real-life experiences soldiers have faced, from helicopter design to preparing goods for airlifting.

    With a participation rate of 40%, this year’s camp is well represented by the involvement of 116 young girls, with recent statistics estimating that women make up only 29.4% of the STEM workforce

    The challenges will be spread throughout Salisbury plain, with organisers utilising a range of terrains and encampments to set up their challenges with hopes to inspire the next generation. Minister for Veterans and People, Alistair Carns was among the military VIPs in attendance at this year’s cadet STEM camp visitors’ day at Middle Wallop military base.

    As part of the day, the minister participated in an activity, which involved applying the laws of physics and maths to ensure the safety of an airlift by a helicopter over distance.

    Minister for Veterans and People, Alistair Carns OBE MC MP said:

    This week will demonstrate to cadets how STEM is at the heart of our Armed Forces and everything we do.

    Integrating STEM into the cadet curriculum will help prepare cadets for the technology-driven economy of today and ensure they will be well prepared for adult life.

    The cadets also had the opportunity to speak to local industry experts on what kind of careers STEM can offer them. Representatives from Waterman Aspin Engineering, Ulysses Trust and Horiba MIRA Propulsion Development Centre were in attendance.

    Updates to this page

    Published 29 October 2024

    MIL OSI United Kingdom

  • MIL-OSI Global: Chris Kaba’s criminal history shouldn’t change how we think about the Martyn Blake trial – but it could affect future cases

    Source: The Conversation – UK – By Tara Lai Quinlan, Associate Professor in Law and Criminal Justice, University of Birmingham

    Members of Chris Kaba’s family at a march on the anniversary of his death. Shutterstock

    Two years after fatally shooting 24-year-old Chris Kaba in the head, the London Met Police firearms officer Martyn Blake was acquitted of Kaba’s murder.

    As soon as the trial concluded, newspapers published information about Kaba that they were barred from reporting during the proceedings. Chief among the details was the news that Kaba had allegedly shot a man in both legs at a nightclub days before his own death, although he was never prosecuted for or convicted of the crime.

    The post-trial publication of details of Kaba’s alleged criminal history should not affect how we view Blake’s prosecution and acquittal. But it will have implications for future cases where black men are killed by police. It will also further damage already-strained relationships between black communities and police.

    Kaba was shot by Blake after police stopped the car he was driving in south London. Kaba was unarmed. Police did not know that Kaba was driving, but believed the car had been connected to a shooting the night before. Blake told the court he fired his weapon because he believed his colleagues’ lives were at risk.

    The jury was not told of Kaba’s prior convictions during the trial, nor should they have been. Kaba was not on trial – Martyn Blake was. So this information did not play a role in their decision to acquit. Because Kaba was killed by Blake, Kaba’s prior convictions were not relevant in Blake’s trial. We correctly shun victim-blaming when it comes to other victims: it should be no different in this case, in which Kaba was the victim.

    Had Kaba been alive and testified for the prosecution against Blake, the judge could have considered whether his prior criminal convictions were relevant to his testimony and credibility. But disclosure of a witness’s previous convictions is rightfully very narrowly construed by the courts, and would have to meet a specific legal standard.

    Racial stereotypes

    The research is clear that when a person of colour is killed by police and posthumous information about the victim is released to the public, it has an impact on public perceptions of blame, sympathy and empathy for the black victim and police shooter, and perpetuates racial stereotypes. And this seems to be what is occurring here.

    Studies have shown for decades that black people, men in particular, are first and foremost viewed as perpetrators by police and members of the public, not as crime victims. We have seen the impact of this in the many killings of unarmed black men by police in the US, from Michael Brown to Eric Garner to George Floyd.

    These stereotypes have also played a role in cases in the UK. Black men and boys are often treated by the criminal justice system and the media as somehow responsible for their own deaths. For instance, Stephen Lawrence, who was killed in 1993 by a group of white men while waiting at a London bus stop, was regarded by police for a long time as a suspect, not a victim.

    Or Dea-John Reid, a 14-year-old black boy who was chased and killed by a group of white teens and adults in Birmingham in 2021. After his death, police initially doubted racism played a role in the killing, and it was suggested at the trial that Reid was involved in instigating events leading to his killing. While multiple defendants were brought to trial, only a 15-year-old boy was convicted of manslaughter for Reid’s death. Two adults, aged 36 and 39, and two other teenagers were acquitted of his murder.

    Police chiefs are asking the government to make it harder for the Crown Prosecution Service to charge officers.
    Svet foto/Shutterstock

    For decades, scholars have tracked how black men are viewed through the lens of the myth of criminality. This view, rooted in slavery and colonialism, erroneously suggests black men have a propensity for criminality. It persists today in crime figures that show minority ethnic people disproportionately represented in every stage of the criminal justice process.

    Yet the reality from government offending surveys is that black and white people commit crimes at the same rates. The myth is reinforced through the criminal justice system, which focuses on some crimes (and alleged criminals) more than others through decisions around deployment of personnel and resources, and decisions to arrest, charge, prosecute and sentence in disproportionate ways.

    For example, police stop and search rates for decades have been disproportionately shown to target black men. Arrest rates show similar disproportionate outcomes. These disparities are not due to a propensity for criminal offending, but rather the implicit and explicit stereotypes of the justice system.




    Read more:
    Stop and search disproportionately affects black communities – yet police powers are being extended


    These stereotypes mean that people of colour, and black men in particular, are not seen as deserving victims when they are the victims of crime or police wrongdoing.

    Academic research, as well as government inquiries by Lord Macpherson and Baroness Casey, have observed how policing culture is embedded with these stereotypes.

    Future of policing

    Following the Blake verdict, police leaders have called for further protections for officers who use force while on duty (even if not deadly force). The government has said that officers charged in future cases will stay anonymous unless convicted.

    The UK legal system already has rigorous standards for investigating, charging and convicting individuals, including police officers, of wrongdoing. Moreover, is it important to bear in mind that misconduct prosecutions in court against police officers are already very rare.

    Blake was the first officer in England ever charged with murder for killing someone on duty, and therefore none have ever been convicted of murdering a member of the public while on duty. There are therefore already sufficiently robust due process protections in place for officers charged with a crime and they do not require further enhancing.

    At a time when police have lost the trust of many of the communities they are meant to protect, particularly ethnic minority Britons, this sends the wrong message to the public that police can act without accountability.

    “We went two steps forward in terms of building relationships and it just feels like we’ve taken a step back,” said Anthony King, who runs a youth crime reduction organisation in London, of the Blake verdict.

    The persistence of negative racial stereotypes of people of colour generally, and black men in particular, continues to put black communities in a position of being overpoliced and yet underprotected. Treating Chris Kaba as a suspected criminal ahead of seeing him as a victim will only further this inequality.

    Tara Lai Quinlan does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

    ref. Chris Kaba’s criminal history shouldn’t change how we think about the Martyn Blake trial – but it could affect future cases – https://theconversation.com/chris-kabas-criminal-history-shouldnt-change-how-we-think-about-the-martyn-blake-trial-but-it-could-affect-future-cases-242051

    MIL OSI – Global Reports

  • MIL-Evening Report: Gender is playing a crucial role in this US election – and it’s not just about Kamala Harris

    Source: The Conversation (Au and NZ) – By Carol Johnson, Emerita Professor, Department of Politics and International Relations, University of Adelaide

    Having a female presidential candidate has made gender obvious in this US presidential election, even to many who normally neglect its role. The specific contest between Kamala Harris and Donald Trump, along with the prominence of issues such as abortion, has resulted in a particularly large gender voting gap. Far more women have consistently indicated support for Harris and far more men for Trump.

    However, gender has always been crucial in US presidential elections, not just because of gender voting patterns but because competing performances of masculinity have always played a major role.

    Role of masculinity in 2020 election

    The last presidential election saw Joe Biden’s form of kind and caring protective masculinity being explicitly contrasted with Trump’s divisive, hyper-masculine one.

    Furthermore, strong male leaders are meant to protect the people from physical, social and economic harm. I have argued that one factor that contributed to Trump’s 2020 electoral defeat was a protective masculinity failure, especially in regard to COVID.

    For example, former President Barack Obama argued that, unlike Biden, Trump could not be counted on to protect Americans:

    Eight months into this pandemic, new cases are breaking records. Donald Trump isn’t going to suddenly protect all of us. He can’t even take the basic steps to protect himself […]. Joe understands […] that the first job of a president is to keep us safe from all threats: domestic, foreign, and microscopic.

    Trump’s re-energised protective masculinity

    However, since his 2020 electoral defeat, Trump has resurrected himself as a strong masculine protector. He claims that “our enemies” are trying to use legal charges to take away his freedom and silence him because he “will always stand” in the way of their attempt to silence the American people and take away their freedom.

    He will also be a vengeful protector, declaring:

    I am your warrior. I am your justice. And for those who have been wronged and betrayed: I am your retribution. I will totally obliterate the deep state.

    Trump has long appealed to men who feel that traditional masculinity, and its related entitlements, are under threat.

    He is currently courting white males, the youth manosphere, “techno bros”, “crypto bros”, conservative male unionists threatened by globalisation and offshoring, and conservative black and Latino men.

    He has been explicitly mobilising misogyny, including by making lewd references to Harris. JD Vance has assisted Trump’s efforts.

    Nonetheless, Trump claims that he will be a strong male protector of women, protecting them from illegal immigrants, crime, foreign threats and other anxieties:

    You will be protected and I will be your protector. Women will be happy, healthy, confident and free.

    Trump has even promised that, as a result, women “will no longer be thinking about abortion.” This is all despite his own alleged history of sexual assault.

    Harris, gender and the women’s vote

    By 2024, Biden’s apparent physical and cognitive decline meant that he was no longer a convincing masculine protector (or viable ongoing presidential candidate).

    The choice of Harris as his replacement candidate had advantages, but it was also a gamble given the combined roles of gender and race. After all, despite the long history of US racism, it still proved easier to elect a black man (Obama) to the presidency than a white woman (Hillary Clinton).

    However, the women’s vote is particularly important this election. As well as Harris’ appeal to younger and black women, Democrats have emphasised the importance of her appeal to white women, including some who previously voted Republican. Anti-Trump Republicans such as Liz Cheney are assisting Harris in appealing to the latter.

    Issues such as abortion are crucial. The overturning of Roe v Wade abortion rights, enabled by Trump stacking the Supreme Court, also puts IVF at risk by not clarifying when life begins (with implications for frozen embryos). Senate Republicans have twice blocked a vote on a Democrat-led bill designed to protect IVF. Harris has pledged to sign a law protecting abortion rights (if Congress passes it).

    Trump claims he supports IVF, won’t bring in a national ban on abortion and believes in abortion “exceptions for rape, incest, and life of the mother”.

    However, Trump Republicans are courting, and influenced by, the American religious right on abortion. There aren’t such exceptions in several Republican states, as Harris’s heartrending accounts of the impact on women and their health reveals. Furthermore, Missouri, Kansas and Idaho are also trying to drastically reduce legal access to the abortion drug mifepristone.

    Harris also emphasises other issues of particular significance for women, such as affordable childcare and better pay for care workers.

    Harris and “tonic” masculinity

    Given the role of competing masculinities in US presidential elections, Harris’ campaign has intentionally appealed to a very different form of protective masculinity from Trump’s.

    Vice presidential candidate, Tim Walz’s, “America’s dad” image (of being a warm, caring but sports loving coach, national guard serving, gun owning, hunter) is used to contrast his “tonic masculinity” with Trump’s “toxic” masculinity. Harris’s husband, Doug Emhoff, is depicted as a supportive “wife-guy” who has “reshaped the perception of masculinity” (while strongly denying allegations he once slapped a woman).

    Despite conservative claims of men being economically left behind, the Biden/Harris administration argues it has revitalised manufacturing and male jobs along with it and Harris will continue to do so. Meanwhile, Obama has urged black men to get behind Harris and the Harris campaign has highlighted its policies benefiting black men.

    Can Harris mobilise protective femininity?

    Given the major role of gender in US presidential elections, a key issue is whether Harris can successfully evoke a caring, motherly, protective femininity that promises security and economic benefits to voters and helps to counter Trump’s protective masculinity.

    Other women politicians have been able to (for example, Germany’s Angela Merkel). Women leaders particularly mobilised protective femininity during the COVID health crisis (for example, New Zealand’s Jacinda Ardern). However, it always seemed likely masculinist leadership stereotypes would re-emerge once the economy needed rebuilding after the pandemic.

    Harris has pledged she will “create an opportunity economy” and “protect our fundamental rights and freedoms, including the right of a woman to make decisions about her own body and not have her government tell her what to do”. She promises to be the kind of president “who cares about you and is not putting themselves first”. Whether such electoral pitches are successful remains to be seen.

    Why the outcome of this election is crucial for gender equality.

    A woman US president is long overdue after 46 male ones. A Trump victory would have major implications for abortion, IVF and women’s rights generally, including progress on the Biden/Harris National Strategy on Gender Equity and Equality. Immigrant and black women will be particularly vulnerable. A Trump victory would also have major implications for which models of masculinity are publicly endorsed.

    A Trump victory would embolden conservative so-called anti-gender ideology campaigns. The Trump campaign has recently spent US $21 million (A$31.9 million) on ads associating Harris with LGBTIQ+ equality, especially transgender rights.

    The Trump campaign asserts that “Kamala’s for they/them. President Trump is for you.” While Trump has also pledged that “we will get critical race theory and transgender insanity the hell out of our schools.”

    A Trump victory will influence the future US economy, including risking increasing gender inequality in an Elon Musk-style unregulated technopoly.

    Finally, academic commentators have drawn attention to the way in which socially conservative views on gender have been mobilised to support new forms of authoritarian regimes in Europe and elsewhere.

    In short, this presidential election is a crucial one for the American people generally, but for the female half of the population in particular.

    Carol Johnson does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

    ref. Gender is playing a crucial role in this US election – and it’s not just about Kamala Harris – https://theconversation.com/gender-is-playing-a-crucial-role-in-this-us-election-and-its-not-just-about-kamala-harris-242113

    MIL OSI AnalysisEveningReport.nz

  • MIL-OSI Australia: Address to the Australian Bureau of Agricultural and Resource Economics and Sciences

    Source: Australian Treasurer

    I acknowledge the Ngunnawal people, on whose traditional lands we meet, and pay respect to all First Nations people here today.

    Economist John Crawford started his public service career in the 1940s working under Nugget Coombs in the Department of Post‑War Reconstruction (Miller 2007, Uhr 2006).

    After taking a strong interest in agriculture, tariffs and trade in his academic studies, Crawford became the director of the Department’s rural and regional planning divisions (Powell & Macintyre 2015).

    Those planning divisions evolved into the Bureau of Agricultural Economics which would serve as the Commonwealth agency responsible for examining proposals for settling returned soldiers on productive farms.

    With Crawford as the inaugural director, the Bureau would assess ‘the suitability of climate and soil, the adequacy of the farm areas and likely economic viability of the farms’ (Powell & Macintyre 2015).

    It was a significant task because no one wanted to repeat the costly mistakes of the 1920s where nearly 12,000 soldier settlers abandoned their farms within a few years.

    But Crawford saw greater potential for the Bureau.

    He proposed broader functions such as studies on the outlook for primary industries, land use investigations and research to promote certain commodities (Powell & Macintyre 2015).

    The Bureau of Agricultural Economics, Crawford and its broader functions transferred to the Department of Commerce and Agriculture in 1946.

    Through various departmental leadership roles, Crawford went on to be one of the great public administrators of his generation.

    John Crawford is the only economist ever to be recognised as the Australian of the Year, winning the award in 1981 for his work as ‘one of the foremost architects of Australia’s post‑war growth’ (Australian of the Year n.d) (I can’t help noting in passing that we’re probably due for another economist to take the top gong).

    Meanwhile, the Bureau has broadened its economic knowledge base and has added names to its title over the years as it merged with other research agencies (ABARES n.d).

    Some 80 years and dozens of outlook conferences later, the Australian Bureau of Agricultural and Resource Economics and Sciences continues to uphold John Crawford’s best traditions.

    In his words, providing a ‘fact‑finding service’ and providing ‘the material and critical analyses of problems with which policy can be better made’ (Crawford 1952).

    Recognising the ongoing importance of your work, our government announced additional funding in last year’s Budget to help:

    • improve regional data sources
    • collect information on low‑emissions technology, and
    • examine the effect of emissions policies on agriculture and regions (DAFF 2023).

    Concentrating on competition in agriculture

    As a kid who attended an agricultural high school, I’ve always been fascinated by farming. But competition is my primary reason for being here today.

    Since at least the days of Adam Smith, economists have spruiked the virtues of competition (Leigh 2022).

    Industries with plenty of competitors tend to deliver better prices, more choices and stronger productivity growth.

    Uncompetitive markets tend to deliver higher prices, lower wages, less choice, and less innovation. A lack of competition leads to problems that can be difficult to undo.

    Today, I will talk about one problem that has only become worse in the recent decades: market concentration.

    When I took on the competition portfolio, a friend issued me a challenge: ‘How many Australian industries can you name that are not dominated by a few big firms?’ (Leigh 2024a).

    It’s a tough ask.

    Applying the rule of thumb that a market is concentrated if the largest 4 firms control one‑third or more, research by Adam Triggs and I found over half of the industries in the Australian economy are concentrated markets (Leigh & Triggs 2016).

    Indeed, many people asked to take on my friend’s challenge might well answer ‘farming’. And it turns out that for many commodities – though not all – farming is quite competitive.

    A straightforward source of market concentration data are the annual industry estimates produced by IBIS World. They estimate the market share of the top 4 firms for several hundred industries.

    A round‑up of IBIS World data on the market share of the largest 4 companies in parts of the agricultural supply chain shows farmers are often caught in the middle.

    Upstream, farmers deal with concentrated markets for their inputs.

    The largest 4 companies in fertiliser manufacturing in Australia have a combined market share of 62 per cent (IBIS World 2024a).

    The largest 4 in hardware and building supplies retailing control about 49 per cent of the market (IBIS World 2024b).

    And the market share for garden supplies retailing is about 33 per cent for the largest 4 firms (IBIS World 2024c).

    Downstream, farmers deal with concentrated markets for processing, freight and retailing.

    According to IBIS World industry reports, there is concentration in fruit and vegetable processing, with the largest 4 companies holding about 34 per cent of the market (IBIS World 2023).

    For meat processing, market share of the largest 4 companies is 44 per cent with JBS Australia, Thomas Food International and Teys Australia being the dominant players (IBIS World 2024d).

    For rail freight transport, the 4 largest including Aurizon and Pacific National have a combined 64 per cent market share (IBIS World 2024e).

    For shipping freight transport in Australia, the market share of 2 companies – ANL and Maersk – amounts to about 85 per cent (IBIS World 2024f).

    When it comes to supermarkets and grocery stores in Australia, it is well documented that Coles and Woolworths account for two‑thirds of the market (IBIS World 2024g).

    These figures show that the agricultural supply chain is highly concentrated at the national level.

    However, for many farmers, their options are even more limited than these figures suggest, as transport costs and risk of spoilage further limit the commercially viable options available to them.

    To further illustrate the point about farmers being caught in the middle, today I will draw on case studies from a series of reports where concerns have been raised about market concentration harming farmers.

    And I will finish by outlining our actions to improve competition laws, to revitalise competition policy in Australia and to make the economy more productive.

    Digging in

    First, we should never underestimate the importance and efficiency gains of farm equipment and machinery.

    Historian James Burke argues the entire modern world is the result of the plough (Harford 2017).

    Increasing farm productivity meant communities could build up a surplus of food, people could settle in one place and everyone’s job no longer had to be finding food (Leigh 2024b).

    Knowing where your next meal was coming from allowed craftspeople to specialise, it allowed trade to flourish, and it allowed people to think about improving the world around them.

    Any list of top Australian inventions typically includes Richard Bowyer Smith and his brother Clarence’s invention in 1876 of the stump‑jump plough (Dictionary of Biography n.d).

    These days, we are no longer talking about the humble plough.

    We are talking about a billion‑dollar farm machinery industry consisting of hi‑tech harvesters, tractors and seeding machinery (DAFF 2022).

    John Deere has more software development engineers than mechanical design engineers (Patel 2021).

    For farmers, machinery represents a significant capital investment involving upfront and ongoing costs (ACCC 2021).

    But many Australian farmers feel they have no genuine choice or ability to shop around.

    The Australian Competition and Consumer Commission’s 2021 market study found farm machinery markets are concentrated at the manufacturer and dealership levels (ACCC 2021).

    Compared to car manufacturers, agricultural machinery makers have greater ability to leverage their market share in new sales to reduce competition in the market for servicing, repairs and parts.

    Warranties restrict the purchaser to a single authorised dealer for servicing and repairs.

    And tech restrictions mean independent repairers or farmers can’t access the parts, manuals and diagnostic software they need to carry out repairs.

    In short, farmers have few choices when buying machinery but even less choice when servicing or repairing that equipment.

    The Productivity Commission further examined difficulties accessing repair data as part of the right to repair inquiry (PC 2021).

    It agreed restrictions harm farmers through higher repair prices, reduced access and choice, and greater financial risks from repair delays.

    The Productivity Commission recommended the government intervene by introducing a repair supplies obligation on agricultural machinery.

    This would require manufacturers to provide access to repair information and diagnostic software tools to machinery owners and independent repairers on fair and reasonable commercial terms.

    As you may know, I have advocated for the need for access to service and repair information over many years.

    In July 2022, I launched Australia’s first right to repair law, the Motor Vehicle Service and Repair Information Sharing Scheme.

    The government is currently monitoring how this scheme is operating for the benefit of independent repairers and consumers.

    Extending right to repair to other sectors, such as agriculture, is a good thing for the economy, businesses and consumers.

    I am pleased there have been negotiations between Australian farmers and the farm machinery industry to consider putting in place a voluntary right to repair arrangements for the sector.

    I encourage parties to continue those negotiations as voluntary arrangements are a great opportunity to foster collaboration and flexibility and can often lead to innovative and effective outcomes.

    Seeds of doubt

    Seeds are the next input I want to cover.

    The US Department of Agriculture’s Economic Research Service examined the seed sector as part of its paper on concentration and competition in agribusiness (MacDonald J et al. 2023).

    The 2023 paper found the seed sector ‘has become highly integrated with agricultural chemicals and more concentrated, with fewer and larger firms dominating supply’.

    Using 2021 annual report data, it said Bayer, ChemChina’s Syngenta Group, Corteva and BASF were the biggest players in global sales for seeds and agricultural chemicals.

    The Economic Research Service found seed prices rose significantly as markets became more concentrated but said the evidence was mixed on the influence of other factors.

    Between 1990 and 2020, the average seed price went up by 270 per cent and the average price for genetically modified varieties rose 463 per cent (MacDonald J et al. 2023).

    Despite the higher seed costs, the paper said it could be argued that genetically modified varieties resulted in ‘significant productivity gains to farmers’.

    It also said higher seed prices may have supported research and development with the number of patents for new crop varieties doubling compared to earlier decades.

    Still, there are not many other industries where the price of a key input has grown fivefold in thirty years.

    Mergers have changed the global seed and farm chemical industry in recent years, and questions remain about what it means for prices and innovation in the long term.

    Sour competition grapes

    Wine grapes arrived with the first fleet in 1788 as cuttings collected en route by Captain Arthur Phillip.

    They were planted at Sydney Cove but withered and died without producing any fruit.

    Which is why it’s called the Rum Rebellion, not the Chardonnay Coup.

    Nevertheless, a fledging wine industry struggled to its feet through booms and busts of the 1800s and by the turn of the century had taken root.

    In the most recent year for which statistics are available, Australia exported 621 million litres of wine (Wine Australia 2024). That figure exceeds domestic wine sales, estimated at 444 million litres.

    There are more than 2,000 wineries and approximately 6,000 grape growers across our 65 wine growing regions.

    They have over 160,000 full and part‑time employees.

    But while the terroir may be good, the vineyard not a level playing field.

    A wine grape market study completed by the Australian Competition and Consumer Commission in 2019 found a highly concentrated industry (ACCC 2019).

    Issues in the supply chain included a lack of competition, potential unfair contract terms, a lack of price transparency, and imbalanced risk allocation in favour of winemakers over grape growers.

    The largest 1 per cent of winemakers accounted for over 80 per cent of wine production.

    Four retailers account for over 80 per cent of sales by value in the domestic retail liquor market.

    The 5 largest winemakers account for an estimated 87 per cent of volume in the Australian wine export market.

    And the trend has been towards even greater consolidation of large winemakers in recent years.

    Change is never easy in agricultural industries subject to boom‑and slump cycles of over production in the good times and consolidation in the bad.

    In 2021 the ACCC found that commercial practices in the wine grape industry had improved since their 2019 report but warned that regulatory action may be necessary without further reforms in payment times and transparency.

    Industry is taking steps to improve transparency but there is still work to be done to ensure a fair and functioning wine, grape and retail market.

    In August, we appointed former competition minister Craig Emerson to lead an independent impact analysis of the wine and grape sector’s regulatory options (Collins 2024).

    Dr Emerson’s report will examine fair trading, competitive relationships, contracting practices and risk allocation.

    Competition beef

    Those problems are not unique to the grape and wine industry.

    In 2023, the National Farmers Federation released an issues paper criticising the lack of transparency and competition across Australia’s agricultural supply chains (NFF 2023).

    The National Farmers Federation said reduced competition meant farmers weren’t receiving the incomes they deserved with long‑term consequences for competitiveness, economic and environmental sustainability and profitability.

    Those concerns echoed the Australian Competition and Consumer Commission’s cattle and beef market study of 2017. That study found evidence that conflicts of interest regularly arise in saleyard transactions when buyers bid for livestock on behalf of multiple clients, and when agents represent both a cattle seller and a cattle buyer in the same transaction (ACCC 2017).

    The report pointed out that cattle auctions have characteristics that make it easier for cartels to develop, including repeated interactions with the same auctioneers, who are often linked by social networks that make it easier to ‘punish’ auctioneers who break away from agreed anti‑competitive bidding practices. Other problematic behaviours included the exclusion of rival agents, and a lack of transparency around saleyard weighing protocols.

    There is a cyclical element to many concerns about competitiveness in the market structure of the Australian cattle and beef industry.

    An ongoing concern is the impact on producers of market concentration and buyer power during tough times, such as droughts.

    Seasonal and cyclical fluctuations in supply can also affect the profitability of meat processors, dampening incentives for new entrants and reducing competition through mergers or acquisitions of incumbents.

    The 2017 report found that the top 5 Australian processors account for around 57 per cent of total cattle slaughter (ACCC 2017).

    A follow‑up report by the Australian Competition and Consumer Commission 2 years later found that the industry had taken some steps towards improving transparency in dealings between processors and farmers, but, again, there was still work to do (ACCC 2019).

    Super concentrated

    Another highly concentrated part of the agricultural supply chain in Australia are supermarkets.

    Coles and Woolworths account for about 67 per cent of national retail sales (Mulino 2024, ACCC 2024 p147).

    Only 2 OECD countries – New Zealand and Norway – have a greater market share of sales controlled by 2 supermarkets (ACCC 2024 p148).

    Earlier this year, the House of Representatives Standing Committee on Economics handed down an excellent report on the inquiry into promoting economic dynamism, competition and business formation.

    The Committee received evidence on the high market share in the supermarket sector, profit margins, and the power imbalance in the relationship between the major supermarkets and farm‑gate producers.

    The report said: ‘Many agricultural suppliers are at risk of that power imbalance being used to negotiate outcomes that affect profitability and, therefore, the capacity and willingness to invest.’

    At the same time as the Parliamentary inquiry, our government is taking action on several fronts.

    Food and Grocery Code of Conduct

    First, we are making sure the Food and Grocery Code of Conduct is working effectively and fairly.

    The voluntary Code was introduced in 2015 to improve behaviour in the way supermarkets deal with suppliers – including growers where they supply directly to supermarkets.

    Dr Craig Emerson’s independent review found the Code is ‘needed to address persistent bargaining power imbalances between supermarkets and their smaller suppliers’ (Emerson 2024).

    Dr Emerson made 11 recommendations for improving the Code and the government announced in June that it will adopt them all (Treasury 2024a).

    The Code will be made mandatory with Coles, Woolworths, Aldi and Metcash subject to million‑dollar penalties for serious breaches.

    There will be improvements to the dispute resolution mechanisms. There will be a pathway for anonymous complaints from suppliers and whistle‑blowers, and guards against retribution by supermarkets.

    We released exposure drafts for consultation in September and we aim to introduce legislation into the Parliament later this year.

    Supermarket inquiry

    Second, we understand more needs to be done to achieve a competitive and sustainable food and grocery sector.

    So, we directed the Australian Competition and Consumer Commission to undertake a 12‑month inquiry into supermarket pricing.

    It allows the watchdog to conduct a deep dive into competition and pricing practices in the supermarket sector for the first time in more than 15 years.

    The Australian Competition and Consumer Commission’s interim report released in September said, ‘Australia’s supermarket industry is changing’ but remains ‘highly concentrated’ (ACCC 2024).

    In the era of online shopping, loyalty programs and data technology, Coles and Woolworths have expanded their share of take‑home food and grocery sales by a combined 3.7 percentage points since 2006–07.

    Supermarkets have also expanded into broader ‘ecosystems’ beyond grocery retailing but in highly complementary areas such as advertising and data analytics, pet products, telco and insurance services (ACCC 2024 p161).

    As well as conducting consumer surveys as part of the inquiry, the Australian Competition and Consumer Commission held 7 roundtables to listen to farmers and fresh produce wholesalers.

    Although no conclusions have been made, the interim report highlighted concerns from fresh produce suppliers about information asymmetries, power imbalances and specific practices that have enabled supermarkets to transfer disproportionate risk and cost onto suppliers.

    In the next phase of the inquiry, the Australian Competition and Consumer Commission will undertake 14 case studies to examine supermarket profit margins and how profits are distributed in the supply chain.

    And it will hand a final report to the government in February 2025.

    CHOICE retail reports

    Third, we announced funding for consumer group CHOICE to produce quarterly reports on retail grocery prices.

    The CHOICE reports will compare grocery prices at different retailers, highlighting those charging the most and the least.

    We have already seen the first 2 ‘basket of goods’ quarterly reports using data from March and June to help consumers make informed decisions about what they’re buying and where they shop (Leigh 2024c).

    Other measures

    Earlier this month, the Australian Government announced around $30 million in additional funding to the ACCC to crack down on misleading and deceptive pricing practices and unconscionable conduct in the supermarket and retail sectors.

    This will strengthen the ACCC’s ability to proactively monitor behaviour and investigate concerns about supermarkets and retailers falsely justifying higher prices.

    In addition to this crackdown, the Treasurer will work closely with states and territories through the Council on Federal Financial Relations to reform planning and zoning regulations, which will help boost competition in the supermarket sector by opening up more sites for new stores (Albanese 2024).

    Strengthening protections against unfair contract terms

    Unfair contract term protections are another area where we have already made improvements.

    Unfair contract terms are terms that are clearly lopsided – for example by allowing the more powerful party to unilaterally change prices, or cancel the contract.

    Under the former government, such terms were unenforceable, but it was not an offence to include them in a contract.

    Fertiliser

    For example, last year the Australian Competition and Consumer Commission investigated complaints about fertiliser companies using contracts in a way that could disadvantage farmers (ACCC 2023).

    Contract terms allegedly gave larger suppliers the right to unilaterally vary the quantity delivered or to terminate the agreement and restricted buyers from raising issues about defects.

    Fertiliser suppliers co‑operated and changed the contract terms to address the Australian Competition and Consumer Commission’s concerns.

    Potatoes

    In another example, the Federal Court in 2019 declared Mitolo Group, Australia’s largest potato wholesaler, used unfair terms in contracts with growers (ACCC 2019).

    The court declared contract terms that allowed Mitolo to unilaterally determine or vary the price paid to growers as void.

    Terms preventing growers from selling potatoes to other purchasers and terms stopping farmers from selling their property unless the buyer entered into a contract with Mitolo were also declared void.

    Stronger laws

    More broadly, the problem is the laws weren’t stopping the use of unfair terms, which remain prevalent in standard form contracts.

    A court could declare a contract term to be unfair and therefore void and unenforceable, but until our government took office, the law didn’t allow penalties to be imposed.

    We have fixed that. In 2022, we delivered on our promise to strengthen unfair contract term laws (Leigh & Collins 2022).

    We introduced civil penalty provisions outlawing the use of, and reliance on, unfair terms in standard form contracts.

    And we extended the coverage of the protections.

    We lifted the eligibility cap from businesses with less than 20 employees to businesses with less than 100 employees, or annual turnover of less than $10 million.

    The most significant merger reforms in decades

    Merger regulation is one of the key pillars of competition law (Leigh 2024a).

    It acts as the ‘preventive medicine’ against the few mergers that substantially lessen competition.

    But feedback suggests our system isn’t as healthy as it could be.

    The Competition Taskforce found Australia’s ‘ad hoc’ merger process is unfit for a modern economy and said we lag best practice in other countries.

    In response, we have announced the most significant reforms to merger settings in almost 50 years.

    The proposed reforms will make Australia’s merger approval system faster, stronger, simpler, targeted and more transparent.

    Revitalising National Competition Policy

    The Albanese government is working with state and territories to revitalise National Competition Policy.

    There is consensus that pro‑competitive reforms are worth doing and we are aiming for agreement by the end of the year.

    The original National Competition Policy underpinned a generation of growth from the 1990s (Leigh 2024d).

    While it left us in a good position, the economy has changed, and the nation now faces new challenges that the original policy could not have anticipated.

    These include digitalisation, the growth in human services, the net zero transformation and supporting Australia’s most vulnerable (Treasury 2024b).

    Trade opportunities

    We are also looking to improve competitiveness overseas as well as at home.

    Our farmers are internationally competitive with Australia exporting around 72 per cent of the total value of agricultural, fisheries and forestry production (ABARES 2024).

    Historically, Australia’s farmers have been among the strongest advocates of trade liberalisation. The old ‘protection all round’ strategy meant that Australian farmers paid more for imported farm machinery, and faced tariffs from other countries to which they exported their produce.

    Reductions in Australia’s domestic tariffs under the Whitlam, Hawke and Keating governments made farm equipment more affordable. It also bought Australia international credibility – enabling us to spearhead reform through the creation in 1986 of the Cairns Group of Fair Trading Nations, to advocate for liberalisation of global trade in agricultural goods (cairnsgroup.org).

    Today, our government is building on that legacy. Invested: Australia’s Southeast Asia Economic Strategy said, ‘Australia is already a key partner in helping Southeast Asia meet its food security needs’, and notes that ‘there is strong potential to develop this trade relationship further towards 2040’ (DFAT 2023).

    So, trade forms a significant part of our broader economic agenda.

    And as Trade Minister Don Farrell observes, we are ‘delivering on our commitment to secure new trade and investment opportunities for Australian exporters, producers, farmers and businesses’ (Farrell 2024).

    Closing remarks

    Let me finish by saying, competitive markets matter in all parts of the Australian economy, but especially in the farm sector.

    As the Australian Competition and Consumer Commission’s Mick Keogh crisply puts it: ‘there are many farmers, but few processors or wholesalers, and even fewer major retailers’ (Keogh 2021).

    As my analysis of IBIS World data shows, small‑scale farmers are often the meat in a market concentration sandwich.

    Upstream, there is often no choice about dealing with large‑scale providers on inputs.

    Downstream, there is often no choice about negotiating with larger processors and retailers.

    And through various examples from many reports over several years, we can see that market concentration hurts farmers.

    Higher prices for inputs.

    Less choice for repairs.

    Power imbalances in negotiating contracts.

    A lack of transparency around prices.

    And potentially unfair contract terms.

    I’m pleased to say, as outlined today, the government is focused on practical solutions to improve our competition settings.

    And we appreciate the expertise and insights of the Australian Bureau of Agricultural and Resource Economics and Sciences.

    Thank you.

    Note: My thanks to officials in the Australian Treasury for invaluable drafting assistance.

    References

    Albanese, A; Chalmers, J. (2024) ‘Helping Australians get fairer supermarket prices through stronger protections and greater competition’, [media release] The Treasury, accessed 1 October 2024.

    Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) n.d About ABARES – Our History, online content.

    Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) (2024) Snapshot of Australian Agriculture 2024, ABARES Insights.

    Australian Competition and Consumer Commission (ACCC) (2024) Supermarkets inquiry interim report.

    Australian Competition and Consumer Commission (ACCC) (2017) Cattle and Beef Market Study – Final Report.

    Australian Competition and Consumer Commission (ACCC) (2019a), Transparency improving in cattle and beef industry, media release issued 20 August 2019.

    Australian Competition and Consumer Commission (ACCC) (2020) Perishable agricultural goods inquiry Final Report.

    Australian Competition and Consumer Commission (ACCC) (2021) Agricultural Machinery Market Study.

    Australian Competition and Consumer Commission (ACCC) (2023) Fertiliser suppliers amend unfair contract terms after ACCC investigation Accessed 21 August 2023.

    Australian Competition and Consumer Commission (ACCC) (2019b) Court penalises potato wholesaler for breaching the Horticulture Code and declares unfair contract terms void, Accessed 2 August 2019.

    Australian of the Year Awards (n.d) Sir John Crawford AC CBE – In Memoriam.

    Cairns Group, The. (n.d) About The Cairns Gro…~https://www.cairnsgroup.org/Pages/Introduction.aspx

    Collins (2024) Supporting Australia’s wine industry [media release] The Treasury, accessed 23 August 2024.

    Department of Agriculture, Fisheries and Forestry (2022) Snapshot – Australian agricultural machinery imports Accessed 4 November 2022.

    Department of Agriculture, Fisheries and Forestry (2023) Boosting capabilities to support a sustainable agriculture sector Budget 2023–2024 fact sheet, Australian Government.

    Department of Foreign Affairs and Trade (2023) Invested: Australia’s Southeast Asia Economic Strategy to 2040, a report for the Australian Government accessed September 2023.

    Dictionary of Biography, Australian. Richard Bowyer Smith entry, Biography – Richard …~https://adb.anu.edu.au/biography/smith‑richard‑bowyer‑13201

    Emerson C (2024) Independent Review of the Food and Grocery Code of Conduct Final Report, [final report] Treasury.

    Farrell D (2024) Press conference, Parliament House Accessed 17 September 2024.

    Harford T 27 November (2017) How the plough made the modern economy possible BBC World Service.

    IBIS World (2024a) ‘Agricultural machinery manufacturing in Australia’, Industry Report, February 2024.

    IBIS World (2024b) ‘Hardware and building supplies retailing in Australia’, Industry Report, February 2024.

    IBIS World (2024c) ‘Garden supplies retailing in Australia’, Industry Report, March 2024.

    IBIS World (2024d) ‘Meat processing in Australia’, Industry Report, June 2024.

    IBIS World (2024e) ‘Rail freight transport in Australia’, Industry Report, September 2024.

    IBIS World (2024f) ‘Water freight transport in Australia’, Industry Report, May 2024.

    IBIS World (2024g) ‘Supermarkets and grocery stores in Australia, Industry Report, August 2024.IBIS World 2023, ‘Fruit and vegetable processing in Australia’, Industry Report, August 2023.

    Keogh M (2021) Competition in Australian agriculture Speech to the National Farmers’ Federation accessed 11 June 2021.

    Leigh A 28 November (2022) Look overseas to see the virtues of more competition [opinion piece] The Australian.

    Leigh A 27 August (2024a) Why new rules in competition are sure to be game‑changing [opinion piece] The Canberra Times.

    Leigh A (2024b) The Shortest History of Economics, Black Inc.

    Leigh A (2024b) Supermarket price monitoring to help Australians make informed choices at the checkout [media release] Accessed 20 June 2024.

    Leigh A (2024c) Supermarket price monitoring to help Australians make informed choices at the checkout [media release] Accessed 20 June 2024.

    Leigh A (2024d) Competition reform will ensure flourishing future [opinion piece] The Australian.

    Leigh A and Collins J (2023) Labor delivering on promise to ban unfair contract terms [media release] Accessed 26 July 2022.

    Leigh A and Triggs A (2016), Markets, Monopolies and Moguls: The Relationship between Inequality and Competition. Australian Economic Review, 49: 389–412.

    MacDonald J, Dong X, and Fuglie K (2023) Concentration and Competition in U.S. Agribusiness United States Department of Agriculture Economic Research Service, Economic Information Bulletin No.256.

    Miller J (2007) Sir John Grenfell (Jack) Crawford (1910–1984) Australian Dictionary of Biography, Volume 17, 2007, ANU.

    Mulino D (2024) Better Competition, Better Prices Report on the inquiry into promoting economic dynamism, competition and business formation, House of Representatives, Standing Committee on Economics.

    National Farmers’ Federation (NFF) (2023), Issues Paper, Market Price Transparency, National Farmers’ Federation Issues Paper.

    Patel N 15 June (2021) John Deere turned tractors into computers – what’s next, The Verge.

    Powell G & Macintyre S (2015) Land of opportunity: Australia’s post‑war reconstruction, National Archives of Australia Research Guide.

    Productivity Commission (PC) (2021) Right to Repair Inquiry Report No.97, accessed 29 October 2021.

    Treasury (2024a) Government response to the Independent Review of the Food and Grocery Code of Conduct, Treasury.

    Treasury (2024b) National Competition Policy fact sheet Treasury.

    Uhr J (2006) The Crawford Doctrine: An informal sketch Australian National University, accessed 21 June 2006.

    Whitnall T and Pitts N (2020) Meat Consumption ABARES.

    Wine Australia (2024), Market insights, Australian wine sector at a glance, Wine Australia.

    MIL OSI News

  • MIL-OSI Asia-Pac: Speech by SCED at Hong Kong FinTech Week 2024 (English only)

    Source: Hong Kong Government special administrative region

    Speech by SCED at Hong Kong FinTech Week 2024 (English only)
    Speech by SCED at Hong Kong FinTech Week 2024 (English only)
    ************************************************************

         Following is the speech by the Secretary for Commerce and Economic Development, Mr Algernon Yau, at the second day of the Main Conference of Hong Kong FinTech Week 2024 today (October 29): Distinguished guests, ladies and gentlemen,      Good morning.      Welcome to day two of the Main Conference of Hong Kong FinTech Week 2024. It is my pleasure to join you all here this morning.        Hong Kong has all along attached great importance to developing fintech businesses, with a view to developing our city as an ideal destination for fintech firms from around the world. As a symbol of this goal, Invest Hong Kong (InvestHK) has been organising the flagship Hong Kong FinTech Week since 2016 to gather the global fintech stakeholders, including investors, professionals and practitioners, in Hong Kong to discuss the latest developments and explore new opportunities.       Being the premier annual international fintech event in Asia, this mega event has been receiving overwhelming support and serving as a great platform over time for Hong Kong’s expanding fintech business. With its theme “Illuminating New Pathways in Fintech”, Hong Kong FinTech Week this year is expected to attract more than 30 000 visitors, and over 800 speakers and 700 exhibitors from over 100 economies. In fact, such a scale can hardly be matched by other similar fintech events. I am glad that you are in the right place today, and I can assure you of an exciting series of events in the rest of Hong Kong FinTech Week.      Being a “super connector” and a “super value-adder”, Hong Kong acts as an important gateway between the Mainland and the overseas markets. Our city is a place where we advocate entrepreneurship and innovation, and also a perfect launch pad for fintech companies to be groomed locally and globally.        Under “one country, two systems”, Hong Kong continues to maintain our uniqueness as one of the most liberal and easiest places to do business in the world. In terms of foreign direct investment, Hong Kong remains the world’s fourth largest destination as revealed in the World Investment Report 2024; Hong Kong is once again ranked in 2024 as the freest economy by the Fraser Institute; and we are ranked the third globally, the first in the Asia-Pacific region as well as one of the top 10 fintech hubs around the globe according to the recent Global Financial Centres Index report.      These recognitions are attributed to our institutional advantages including a robust common law legal system, an independent judiciary, a simple and low tax system, world-class professional services, and many others, which are the very foundation of Hong Kong’s success as an ideal place for fintech companies to thrive.      Coupled with an array of new business-friendly initiatives announced in the 2024 Policy Address this month, all businesses in Hong Kong, including the fintech sector, could benefit from them. For example, the updated Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA) provides more flexibility and convenience for Hong Kong companies to invest and do business on the Mainland. All companies based in Hong Kong, regardless of their place of origin, can all benefit from the latest CEPA enhancements. My friends, I strongly recommend that you set up your fintech and related financial operations in Hong Kong in order to enjoy these advantages.        Apart from companies, we also have good news for individuals. For non-Chinese Hong Kong permanent residents, they are now eligible for the Mainland travel permit since July this year. This groundbreaking measure provides unprecedented convenience for visits to the Mainland for various purposes, including business, leisure or family trips, multiple times within a validity period of five years. Additionally, if you are a non-permanent Hong Kong resident who is also a foreign staff member of a Hong Kong-registered company, the validity period of your multiple-entry visa has now been extended to a maximum of five years to facilitate your Mainland trips. To experience the convenience brought by the two new measures, I would suggest that our overseas friends apply for the permit or multiple-entry visa, if eligible.       In fact, we note that Hong Kong’s competitiveness and business-friendly environment, which I have mentioned above, has already been highly recognised by many fintech companies. In 2024, we are home to over 1 100 fintech companies, representing a 14 per cent year-on-year increase according to InvestHK’s statistics. In the first nine months of this year, InvestHK has helped 470 overseas and Mainland enterprises to establish or expand their business in Hong Kong, and over 23 per cent of them are from the fintech, financial services and related sectors. The above encouraging results have explained Hong Kong’s attractiveness to the global fintech community.     As always, InvestHK, being the Government’s investment promotion agency and your best business partner in Hong Kong, will assist your companies to set up or expand business here. With InvestHK’s extensive and sophisticated global network, you will have no difficulty in receiving their valuable advice and unfailing support even if your companies are located outside Hong Kong. Taking the golden opportunity today, I would encourage you all approach InvestHK and see what advice they can offer you from the investment promotion perspective.      Finally, I would like to give my big thanks to our fintech friends here today for your participation in and strong support for FinTech Week and confidence in Hong Kong, especially those who have joined the event for years. I hope you enjoy today’s conference and explore more business opportunities. And don’t forget to take a walk through our city to enjoy the delicious food and beautiful scenery in Hong Kong.        Thank you.

     
    Ends/Tuesday, October 29, 2024Issued at HKT 12:15

    NNNN

    MIL OSI Asia Pacific News

  • MIL-OSI Asia-Pac: Speech by SJ at plenary session of 14th China-ASEAN Prosecutors-General Conference in Singapore (English only)

    Source: Hong Kong Government special administrative region

         Following is the speech by the Secretary for Justice, Mr Paul Lam, SC, at the plenary session of the 14th China-ASEAN Prosecutors-General Conference in Singapore today (October 29):Mr Chairman, Your Excellencies, distinguished guests, ladies and gentlemen,     To begin with, I would like to express my heartfelt gratitude to Your Excellency Mr Lucien Wong, SC, for organising this year’s conference.Urgent call for co-operation in the fight against financial crimes     The theme of this year’s conference is “Fostering Co-operation on Combating Financial Crimes”. The definition of financial crimes is very wide. In Hong Kong, they cover a broad range of money-related criminal activities including money laundering, terrorists financing, fraud, theft, market misconduct as well as corruption and irregularities in the financial market. There is, however, very often a common element: that is they involve transboundary elements.     In recent years, we have witnessed an alarming rise in financial crimes. The United Nations Office on Drugs and Crime (UNODC) estimated that money laundered globally in one year is 2-5 per cent of global gross domestic product, that is approximately US$800 billion to $2 trillion. Hong Kong, which ranks No. 1 in the 2024 Economic Freedom of the World Report compiled by the Fraser Institute, is not immune to these challenges. According to the latest statistics released by the Hong Kong Police Force, over 19 000 cases of deception were registered in the first half of 2024, accounting for around 44 per cent of the total number of crimes and resulting in the loss of HK$4.48 billion.     There is, therefore, no wonder why there is consensus that international co-operation to combat financial crimes is both essential and imminent. In May this year, the Heads of the Financial Action Task Force (FATF), the UNODC and the International Criminal Police Organization (Interpol) issued an unprecedented joint call for actions to be taken across sectors and at the global level to target the huge illicit profits generated by transnational organised crimes that facilitate conflicts, fund terrorism and negatively impact vulnerable populations.     Hong Kong is committed to engaging in international co-operation to combat financial crimes proactively. This is both required and made possible by the principle of “one country, two systems”. In the Basic Law of the Hong Kong Special Administrative Region, Article 109 gives Hong Kong the mandate to provide an appropriate economic and legal environment for the maintenance of the status of Hong Kong as an international financial centre. Under Articles 96 and 152 of the Basic Law respectively, Hong Kong may make appropriate arrangements with foreign states for reciprocal juridical assistance, and representatives of Hong Kong may participate in international organisations or conferences as members of delegations of the People’s Republic of China or in other appropriate capacity.     Hong Kong has been adopting a four-pronged approach in combating financial crimes with international elements: first, espousing international regulatory standards; second, establishing a collaborative network for effective prosecution and asset recovery; third, embracing technologies as our new tools; and, lastly, encouraging knowledge and experience sharing.Espousing international regulatory standards     Let me begin with espousing international regulatory standards. While different jurisdictions have diverse legal landscapes and different financial systems, it is essential to ensure that the local legal and regulatory frameworks would comply with international standards. I am proud to say that Hong Kong has so far successfully achieved this objective.     Owing to the fact that, in practice, it is very often difficult to identify, catch and bring participants of financial crimes to justice and that the loss and damage caused by such crimes are in many cases untraceable and irrecoverable, the Hong Kong law in this respect focus very much on effective prevention and early detection of suspicious transactions. Our Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615) (AMLO) sets out the requirements on financial institutions regarding customer due diligence and record keeping; and other legislations impose statutory obligations for reporting suspicious transactions. Earlier this year, the Hong Kong Court of Final Appeal in a landmark judgment known as Tam Sze Leung & Ors v Commissioner of Police (2024) 27 HKCFAR 288 upheld the validity of the “letters of no consent” scheme under the Organized and Serious Crimes Ordinance (Cap. 455), which aims at assisting financial institutions to consider how to deal with, or not to deal with, funds known or suspected to be proceeds of crime.     On the other hand, the Securities and Futures Commission of Hong Kong publishes alert list to provide early warnings to investors on suspicious investment products and virtual asset trading platforms. Very recently in August this year, the Hong Kong Monetary Authority (HKMA), in collaboration with the Hong Kong Police Force and the Hong Kong Association of Banks, extended the coverage of the Suspicious Account Alert to physical branches and Internet banking transactions.     Hong Kong has been a member of the FATF, an intergovernmental organisation which sets global standards for combating money laundering and terrorist financing, since 1991. In the fourth round of FATF mutual evaluation in 2018-19, Hong Kong’s anti-money laundering and counter-financing of terrorism (AML/CFT) system has been assessed to be compliant and effective overall, making it the first jurisdiction in the Asia-Pacific region to have achieved an overall compliant result. The FATF also adopted Hong Kong’s follow-up report and recognised Hong Kong’s efforts in strengthening its AML/CFT regulatory regimes last year.     That said, Hong Kong does not remain complacent. Hong Kong is also one of the founding members of the Asia/Pacific Group on Money Laundering (APG), an autonomous FATF-style regional anti-money laundering body, founded in 1997. The APG published annual reports to assist governments and other stakeholders to have a better understanding about the nature of existing and emerging threats. The 2023 report includes a chapter on threats and trends related to virtual assets and virtual asset service providers. Hong Kong took the initiative to introduce a licensing regime for virtual asset service providers under AMLO, which came into effect in June 2023. To further strengthen the virtual assets regulatory framework in Hong Kong, we consulted the public on a regulatory regime for stablecoins earlier this year and had received overall support.Establishing a collaborative network for effective prosecution and asset recovery     Let me turn to establishing a collaborative network across jurisdictions to enable effective prosecution of financial crimes and asset recovery.     Hong Kong has established a comprehensive co-operation regime for the mutual legal assistance and surrender of fugitives. The Department of Justice of Hong Kong published various practical step-by-step guidelines, such as “Guide to Asset Recovery in the Hong Kong Special Administrative Region” and “Guidelines for Making Applications under the Mutual Legal Assistance in Criminal Matters Ordinance (Cap. 525)”, with a view to assisting our foreign counterparts in understanding the procedures in relation to international legal co-operation in criminal matters in Hong Kong and the wide range of legal assistance that may be provided by Hong Kong, such as taking of oral evidence, obtaining materials under production orders, enforcement of external confiscation orders and restraining of dealing in property which may be subject to external confiscation orders, etc.     Over the years, the Department of Justice has been providing effective and timely assistance to various foreign jurisdictions, including our ASEAN and Asia-Pacific partners. Let me share with you some examples. Recently, pursuant to a request made by an East Asian country, we have successfully obtained from the High Court a restraint order freezing assets in the form of cryptocurrencies of a total value of more than US$20 million, which are suspected to be proceeds of a massive fraudulent scheme. In another case regarding a request received from Indonesia, we have restrained over US$8 million worth of assets, representing proceeds of offences of fraud and money laundering, with a view to repatriating the confiscated funds back to the victim of crimes in Indonesia eventually. Singapore is one of our most valued and top legal co-operation partners. Thanks to the tireless effort of the Attorney General’s Chambers of Singapore, a fugitive was successfully surrendered back to Hong Kong earlier this month to face justice in court for offences relating to a securities fraud. In another case involving offences of money laundering and corruption, Hong Kong is working very closely with Singapore in our collaboration to repatriate US$13 million of proceeds of crime back to the victim in Mainland China. In yet another example, with the joint effort of Interpol and following extensive information sharing and joint investigations by the police from Singapore and Hong Kong, a transnational syndicate allegedly involved in laundering ill-gotten gains derived from tech support scams, including around HK$33 million from the victims in Singapore, has recently been crippled in August this year, resulting in the arrest of eight persons in Singapore and Hong Kong.     Another significant development in 2024 is that, on June 26, 2024, Hong Kong has officially joined the South East Asia Justice Network (SEAJust), which was established in 2020 with the support of the UNODC. This enables Hong Kong to make use of this important platform to facilitate co-operation in criminal matters with other members, including all my friends here today.     I feel obliged to take this opportunity to register my disappointment that, due to geopolitical reasons, some Western countries have unilaterally suspended their mutual legal co-operation arrangements with Hong Kong, which is plainly against common interests. Geopolitical considerations should not be allowed to hinder international co-operation in fighting financial crimes.Embracing technologies as our new arsenal of tools     Let me move on to embracing technologies as our tools. In this digital age, technology is evolving at an unprecedented pace. It is unfortunate that it has been misused to enable financial crimes to transcend borders and get “bigger” in terms of quantity and complexity, and allow the culprits to hide their identities in the virtual world.     To counter such misuse, we should consider how to deploy technological advancements as our ally. In particular, we should proactively explore the possibilities of leveraging powerful artificial intelligence (AI) tools for detecting and disrupting financial crimes at an early stage. For example, AI-powered systems may facilitate real-time online transaction monitoring and individual behavioural analysis, and alert unusual transaction patterns with speed and accuracy that human beings cannot duplicate. AI-assisted automation may also play a pivotal role in enhancing the efficiency of investigations. AI technology is able to analyse vast amounts of data at lightning speed. Automating some repetitive but essential tasks throughout the investigation process enables investigation officers to dedicate their time and energy to developing strategies in higher-impact cases.     On September 9, 2024, with a view to accelerating the use of AI in monitoring money laundering and terrorist financing risks, the Hong Kong Monetary Authority published a circular on “Use of Artificial Intelligence for Monitoring Suspicious Activities”. The HKMA observed that AI-powered systems take into account a broad range of contextual information focusing not only on individual transactions, but also the active risk profile and past transaction patterns of customers in determining whether the activity of a customer should be flagged for further investigation. These enhanced systems have proved to be more effective and efficient than conventional rules-based transaction monitoring systems.Encouraging knowledge and experience sharing     Lastly, let me say a few words on encouraging knowledge and experience sharing.     Last month, a dedicated team of prosecutors who specialise in prosecuting sophisticated and syndicated high-tech crimes in the Prosecutions Division of the Department of Justice of Hong Kong paid a visit to Guangdong Provincial People’s Procuratorate, the High People’s Court of Guangdong Province and Guangzhou Internet Court. The sharing sessions with Mainland judges and procurators were greatly beneficial to deepening the mutual understanding of the latest trends of deception cases and the handling of cryptocurrency cases.     And, of course, international symposiums and conferences provide an excellent forum for free flow of ideas, which assist in gathering and accumulating a general pool of knowledge, and stimulating new and innovative ideas to combat financial crimes. This successful conference is, by itself, a perfect example.     In this aspect, I am very pleased to inform you that, next month between November 27 and 29, Hong Kong will organise the 11th Asia and Pacific Regional Conference of the International Association of Prosecutors (IAP) under the theme of “Effective Prosecution Service in the Technological Age”. I look forward to welcoming you to Hong Kong.     Lastly, I am also very pleased to inform you that the Department of Justice of Hong Kong will formally establish the Hong Kong International Legal Talents Training Academy very soon. The Academy will organise practical training courses, seminars, and international exchange programmes to promote exchanges among legal professionals coming from different jurisdictions. This may serve as an additional platform for capacity building and experience sharing in the area of international co-operation on combating financial crimes.Concluding remarks     To conclude, while the challenges we face in our fight against financial crimes are daunting and are likely to be ongoing, they are ones that we can and must overcome – together. In this war that we cannot afford losing, let us remain steadfast to our commitment to align with international regulatory standards, work closely via various collaborative networks, make better use of emerging technologies, and share knowledge and experience. In co-operation lies our strength, and in action lies the promise of a secure financial environment where trust and integrity flourish.     On this note, may I once again thank the Attorney-General’s Chambers of Singapore for giving me and other members of the Hong Kong delegation such a fruitful experience at this successful conference, and to all the distinguished speakers and friends from the Mainland and ASEAN countries for their sharing of valuable insights and experiences. Thank you very much.

    MIL OSI Asia Pacific News

  • MIL-OSI United Kingdom: Social landlords continue to build new homes, according to RSH statistics

    Source: United Kingdom – Executive Government & Departments

    Today (29 October 2024) the Regulator of Social Housing published statistics about the social housing sector.

    Today the Regulator of Social Housing published statistics about the social housing sector, including stock ownership and rents as of 31 March 2024. 

    Returns from all private and local authority registered providers show that the sector provides around 4.5 million homes across England, with a net increase of nearly 43,000 social homes since 2023. 

    This overall increase has been driven by approximately 24,800 more Affordable Rent homes and 17,300 more low cost home ownership homes. There was also a small increase of roughly 700 social rent homes. 

    Private registered providers had a net gain of around 5,200 social rent homes, although this was partially offset by a decrease of around 4,500 social rent homes for local authorities (likely to be driven by right to buy sales and other schemes). 

    Private registered providers built, purchased or acquired the majority of new homes in the sector, accounting for 85% of the total increase in Affordable Rent and 96% for low cost home ownership properties. 

    The statistics show that 82% of social homes in England are general needs (social rent and Affordable Rent), while supported housing makes up 11% and Low Cost Home Ownership 6%. 

    Private registered providers also reported that 71% of homes had an energy efficiency certificate rating of EPC-C or above, and a further 22% had a rating of EPC-D.   

    Just over 511,000 homes were surveyed by landlords during the year. Over the year, these surveys and other provider activity identified nearly 42,000 homes which did not meet the Decent Homes Standard; 37,500 properties were remediated to bring them up to the DHS and 1,800 were sold or demolished.  

    A further 5,200 buildings were excluded from having to meet DHS requirements due to circumstances which prevent or limit remediation works. 

    As expected, rents increased over the year. The average increase in general needs (social rent) average weekly net rents was 7.2% between 31 March 2023 and 31 March 2024 (in line with the limit set for 2023/24 ). The average weekly general needs rent in England was £105.22, though this varied across  the country. Average rents were lowest in the North East (£88.11) and highest in London (£129.83). 

    Rents for local authorities are lower on average than for housing associations.  

    Will Perry, Director of Strategy at RSH, said: 

    It is reassuring to see the sector continuing to build and acquire much-needed new social homes across the country, despite a challenging economic environment.  

    This data provides a rich source of insight into the sector as a whole, helping us understand the challenges facing both landlords and tenants.   

    Landlords should ensure they hold accurate, up-to-date data to inform strategic decisions, especially around rents and the condition of homes. 

    Notes to editors 

    1. Local authority social housing data was formerly collected through the Local Authority Housing Survey. Since 1 April 2020 it has been collected by RSH through the Local Authority Data Return, when RSH took on the responsibility for regulating local authority rents. Private registered provider data has been collected by RSH though the Statistical Data Return since 2012. 

    2. Both local authority and private registered provider stock and rents statistics are designated as Accredited Official Statistics by the UK Statistics Authority. 

    3. There were 1,592 providers on RSH’s register on 31 March 2024. Of these, 226 were local authorities and 1,366 were private registered providers. 

    4. Homes include self-contained units such as houses and flats and non-self-contained bed spaces, referred to collectively as units in the data. 

    5. Of the c. 4.5 million units of social housing stock owner by registered providers, private registered providers own 2.9m homes while local authority registered providers own 1.6m homes. 

    6. The limit on annual general needs rent increases between 2023 and 2024 was 7.0%. Additions to stock, units with exceptions and PRPs setting set rents in line with the prevailing formula rent rate when re-letting units can lead to the average year-on-year change being higher. 

    7. The Regulator of Social Housing promotes a viable, efficient and well-governed social housing sector able to deliver and maintain homes of appropriate quality that meet a range of needs. It does this by undertaking robust economic regulation focusing on governance, financial viability and value for money that maintains lender confidence and protects the taxpayer. It also sets consumer standards and may take action if these standards are breached and there is a significant risk of serious detriment to tenants or potential tenants.

    Updates to this page

    Published 29 October 2024

    MIL OSI United Kingdom

  • MIL-OSI United Kingdom: Short Term Lets Licensing Statistics, to 30 June 2024

    Source: Scottish Government

    An Official Statistics Publication for Scotland.

    • There were at least 30,299 applications for a short-term licence as of end June 2024. 82% (24,810) of these applications were validated. Not all authorities report applications still to be validated to the Scottish Government as they are not required to.
    • The majority (82%; 24,913) of these applications were received before the 1 October 2023 cut off for existing hosts and operators to apply for a provisional licence to continue operating whilst waiting for a full licence confirmation.
    • The majority (18,965 or 76%) of validated applications relate to secondary letting (i.e. where a non-primary residence is let out), with 2,575 (10%) being for home sharing, 1,937 (8%) for home letting, and 1,333 (5%) for a mixture of home sharing and letting.  Similar proportions are reported for licences granted.
    • 21,075 licences or exemptions were in operation as of 30 June 2024. Full licences accounted for over three quarters (76% or 16,052) of this number and 22% (4,560) were provisional licences pending a final decision. There were 461 temporary licences and exemptions.

    Background

    The full publication is available at Short Term Lets Licensing Statistics, Scotland, to 30 June 2024.

    This statistical publication reports on the operation of the short term lets licensing scheme under the Civic Government (Scotland) Act 1982 (Licensing of Short-term Lets) Order 2022.

    Official statistics are produced in accordance with the Code of Practice for Statistics.

    As advised in our May publication, there was likely to be a revision to the number of validated applications reported in the quarter before the October 2023 cut off for existing operators to apply and continue operation provisionally. As local authorities worked to validate large numbers of applications received. As expected, we report a large revision upwards (from 7,989 to 14,116) for July to September 2023, with smaller revisions in other quarters.

    MIL OSI United Kingdom

  • MIL-OSI United Kingdom: Housing Options (PREVENT1) statistics in Scotland, 2023-24

    Source: Scottish Government

    An Official Statistics in Development Publication for Scotland.

    An annual update on Housing Options (PREVENT1) Statistics covering 2023-24 has been released today.

    Findings for that period show:

    • There were 44,952 Housing Options approaches (from 42,161 unique households). This is an increase of 5% compared to 2022-23.
    • The number of open Housing Options cases has been increasing over time, although the latest figure of 29,900 as at 31 March 2024 is 1% lower compared to 2023 (30,075).
    • General housing options advice (20% of all approaches), asked to leave (17% of all approaches) and risk of losing accommodation (11% of all approaches) are the most common reasons for approach.
    • Over a fifth (21%) of approaches are from parental / family home or relatives; 18% are from a private rented tenancy.
    • The most common prevention activity is general housing advice (43%), informing clients of their rights under homelessness legislation (28%) and rent, repairs, referrals and negotiations with landlords (12%).
    • Just under half of Housing Options approaches resulted in a homelessness application (49%). This is less than 52% in 2022-23 and 57% in 2021-22. However, this is a numerical increase in the last year from 21,390 to 22,105 (3%).
    • Across Scotland it took an average of 180 days to close a Housing Options cases (that did not result in a homelessness application). This has increased from 137 days in 2022-23.

    Background

    The full statistical publication is available on our website.

    The Housing Options (PREVENT1) 2023-24 publication presents information on Housing Options Services in Scotland from 1 April 2023 to 31 March 2024. The statistics are based on administrative data collected by local authorities in the course of providing Housing Options services that are available when households seek assistance for housing-related issues.

    The bulletin includes information on the number of approaches made, details on the reasons for the approaches made, the activities undertaken, and the outcomes achieved.

    Official statistics are produced by professionally independent statistical staff – more information on the standards of official statistics in Scotland is on the Scottish Government website.

    MIL OSI United Kingdom

  • MIL-OSI Australia: Critical new research examines homicide of First Nations women

    Source: Australian Executive Government Ministers

    Indigenous women are up to seven times more likely to be homicide victims compared with the national average, with almost three quarters killed by their current or former intimate partner.

    The Australian Institute of Criminology (AIC) report Homicide of Aboriginal and Torres Strait Islander women has found that between 1 July 1989 and 30 June 2023, a total of 476 Indigenous women were victims of homicide with seventy-two percent killed by their current or former intimate partner.

    These statistics represent the terrible and tragic loss of mothers, sisters, daughters and other deeply loved relatives.

    It is not acceptable for losses of this scale to continue.

    Ending violence against women and children is a priority for the Albanese Government. We have already invested over $3.4 billion in initiatives to support the National Plan to End Violence Against Women and Children 2022-32.

    Last month the Albanese Government committed $4.4 billion in new funding to address the scourge of gender-based violence, provide support for legal service and respond to the Rapid Review into Prevention Approaches, including through investing in frontline services and initiatives to prevent violence.

    This includes $800 million in new funding over five years from 2025-26 to the legal assistance sector, with a focus on legal services responding to gender-based violence, including First Nations-specific services.

    In August the final report of the Senate Inquiry into missing and murdered First Nations women was published, highlighting the need for accurate data.

    The AIC’s report addresses key findings of the Inquiry’s final report. This includes publication of comprehensive and validated data drawn from police and coronial data on Indigenous women victims of homicide (murder and manslaughter). It builds on National Homicide Monitoring Program data provided to the Inquiry and published in the annual Homicide in Australia series.

    This data will also be used to track progress of the National Plan to End Violence against Women and Children 2022–32 to reduce the rate of all forms of family violence and abuse against Aboriginal and Torres Strait Islander women and children by at least 50% by 2031.

    The Albanese Government is giving serious consideration to the recommendations of the Senate Inquiry, including through the development of the standalone First Nations National Plan for Family Safety.

    The full report is available on the AIC website.

    If you or someone you know is experiencing, or at risk of experiencing, domestic, family or sexual violence, call 1800RESPECT on 1800 737 732, chat online via www.1800RESPECT.org.au, or text 0458 737 732.

    If you are concerned about your behaviour or use of violence, you can contact the Men’s Referral Service on 1300 766 491 or visit http://www.ntv.org.au

    Feeling worried or no good? No shame, no judgement, safe place to yarn. Speak to a 13YARN Crisis Supporter, call 13 92 76. This service is available 24 hours a day, 7 days a week.

    The Australian Institute of Criminology

    The AIC is Australia’s national research and knowledge centre on crime and justice. The AIC seeks to promote justice and reduce crime by undertaking and communicating evidence-based research to inform policy and practice.

    On 26 June 2024, the AIC released a new online dashboard to monitor intimate partner homicides involving female victims. The dashboard will be updated on a quarterly basis.

    MIL OSI News