November 6, 2008 / 11:51 AM / 10 years ago

UPDATE 1-GMP Capital Q3 profit plunges

* Q3 profit C$0.11/unit vs estimate of C$0.16

* Revenue down 43 pct

* Says cut 37 positions

Nov 6 (Reuters) - Canadian investment bank GMP Capital Trust GMP_u.TO said quarterly profit slumped 82 percent as volatile stock and credit markets curtailed deal flow and advisory work.

GMP said net income was C$6.9 million ($5.89 million), or 11 Canadian cents a unit, in the three months ended Sept. 30.

That was down from C$39.3 million, or 61 Canadian cents a unit, a year earlier, when signs of the credit crisis were just beginning to emerge.

Analysts expected a profit of 16 Canadian cents a unit before items, according to Reuters Estimates.

The company also said it eliminated 37 positions and implemented a 10 percent fixed salary reduction to certain senior level positions.

GMP and its competitor Canaccord Capital Inc CCI.TO have been hit hard by tumbling stock markets since mid-year.

Both have announced layoffs and trimmed compensation, and GMP has slashed its distribution twice within three months.

GMP’s unit price is down 80 percent so far in 2008.

The company has capital markets, wealth management and private equity operations.

$1=1.171 Canadian Reporting by Krishna Chaithanya in Bangalore; Editing by Vinu Pilakkott

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