Power Financial posts flat profit and ups dividend

TORONTO (Reuters) - Power Financial Corp (PWF.TO: Quote), which controls a number of insurance and mutual fund companies in Canada, said on Tuesday its third-quarter profit was unchanged and that it raised its quarterly dividend.

Power Financial, a unit of Power Corp of Canada (POW.TO: Quote), said net income was C$457 million ($377 million), or 62 Canadian cents a share, in the three months ended September 30. That was identical to its profit in the year-before quarter.

Montreal-based Power Financial controls Great-West Lifeco (GWO.TO: Quote), Canada's second-largest life insurance company, and IGM Financial (IGM.TO: Quote), the country's largest nonbank mutual fund manager. Both reported lower profits on October 31.

Power Financial also owns half of Parjointco NV, which controls Swiss company Pargesa Holding SA (PARG.S: Quote).

In the latest quarter, operating earnings fell 13.5 percent to C$459 million, or 73 Canadian cents a share, from C$531 million, or 73 Canadian cents a share, Power Financial said.

Analysts had expected earnings of 65 Canadian cents a share before one-time items, according to Reuters Estimates.

Revenues and fee income in the quarter totaled C$4.6 billion, down from C$6.9 billion a year earlier.

Power Financial also declared a quarterly dividend of 35 Canadian cents a share, up from its previous quarterly dividend of 33.50 Canadian cents.

($1=$1.21 Canadian)

(Reporting by Frank Pingue; Editing by Peter Galloway)