GMP Capital Inc., Canada’s second-biggest non-bank brokerage, returned to profit in the second quarter after selling part of its wealth-management business.
Net income was C$4.78 million ($4.6 million) compared with a loss of C$376,000 a year earlier, the Toronto-based firm said today in a statement. Revenue fell 3.8 percent to C$60.3 million.
GMP said it lost 2 cents a share in the quarter after excluding some items, missing the break-even average estimate of four analysts surveyed by Bloomberg.
“Market conditions remained challenging for the quarter, driven by very low levels of activity in the resource sectors,” Chief Executive Officer Harris Fricker said in the statement.
The firm agreed in January to sell funds including GMP Diversified Alpha Fund and the Canadian ABCP Fund to Fiera Capital Corp. for C$10.8 million. The transaction was completed on May 1.
(GMP will hold a conference call to discuss quarterly results at 10 a.m. Toronto time at +1-416-644-3414 or 1-800-814-4859 or at http://www.gmpcapital.com/investor)