November 11, 2008 / 4:39 PM / 10 years ago

UPDATE 1-Power Financial posts flat profit and ups dividend

* Power Financial operating earnings fall 13.5 percent

(Adds details, background)

TORONTO, Nov 11 (Reuters) - Power Financial Corp (PWF.TO), 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), said net income was C$457 million ($377 million), or 62 Canadian cents a share, in the three months ended Sept. 30. That was identical to its profit in the year-before quarter.

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

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

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

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