GMP Capital's profit falls on weak capital markets

Wed Mar 14, 2012 6:49am EDT
 
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(Reuters) - GMP Capital Inc's GMP.TO fourth-quarter profit fell, hurt by continuing weakness in the Canadian independent investment dealer's core capital markets segment.

Net income was C$2.4 million ($2.42 million), or 2 Canadian cents a share, compared with C$46 million, or 50 Canadian cents a share, a year ago.

Adjusted net income was C$4.3 million for its latest quarter, compared with C$46.5 million last year.

GMP, which was founded in 1995 and quickly became one of Canada's most successful independent investment dealers, had posted a loss in the third quarter reversing from a profit a year ago.

In the second quarter, its profit fell 79 percent.

Fourth-quarter revenue fell 53 percent to C$72.7 million, as capital markets revenue nearly halved to C$67.1 million.

"Trading and underwriting activity in capital markets remained relatively muted this quarter," Chief Executive Harris Fricker said in a statement.

Shares of the company, which have nearly halved in value in the last one year, closed at C$7.82 on Tuesday on the Toronto Stock Exchange.

($1 = 0.9906 Canadian dollars)

(Reporting by Aftab Ahmed in Bangalore; Editing by Sriraj Kalluvila)