GMP Capital Loss Narrows on Earnings From Wealth Management
GMP Capital Inc. (GMP), Canada’s second-largest non-bank brokerage, narrowed its third-quarter loss as profit improved in wealth management.
The net loss attributable to common shareholders shrank to C$695,000 ($664,000), or 1 cent a share, from C$1.91 million, or 3 cents, a year earlier, the Toronto-based firm said today in a statement. Revenue fell 27 percent to C$42.6 million.
GMP has increased its bet on wealth management amid a slowdown in Canadian capital markets. In September, GMP and partner James Richardson & Sons Ltd. agreed to buy Macquarie Private Wealth Canada for C$132 million.
“It would be an understatement to describe the past quarter as challenging,” GMP Chief Executive Officer Harris Fricker said in a conference call. “Both primary and secondary market activity hit unprecedented lows as uncertain and challenging macro conditions were exacerbated by shifting commentary regarding monetary policy by Canadian and U.S. central banks.”
The brokerage lost 2 cents a share in the quarter after excluding some items, missing the 1-cent loss average estimate of four analysts surveyed by Bloomberg.
Wealth-management profit was C$1.13 million, compared with a loss of C$274,000 a year earlier, as the company cut compensation expenses, according to the statement. Profit from capital markets before income taxes fell 11 percent to C$620,000 from a year earlier on lower investment-banking revenue.
To contact the reporter on this story: Doug Alexander in Toronto at email@example.com
To contact the editor responsible for this story: Peter Eichenbaum at firstname.lastname@example.org