February 24, 2009 / 7:56 PM / 9 years ago

UPDATE 1-CI Financial reports lower quarterly profit

* Q4 earnings C$0.19/unit vs C$0.66/unit

* Shares down 31 Canadian cents at C$10.99

TORONTO, Feb 24 (Reuters) - Wealth management company CI Financial Corp (CIX.TO) reported a sharp drop in quarterly profit on Tuesday as revenue was hurt by falling stock markets and the economic downturn.

CI Financial, which converted to a corporation from an income trust on Jan. 1, said net profit was C$53.2 million ($42.90 million), or 19 Canadian cents a unit, in the fourth quarter ended Dec. 31.

That was down from a profit of C$187.7 million, or 66 Canadian cents a unit, in the same period of 2007.

For the quarter, total revenue was C$324.4 million, down from C$427.1 million.

In October, the company said it wanted to convert from an income trust to a corporation to give it better access to capital markets, as well as make it easier to pursue business deals.

Shares of Toronto-based CI Financial fell 31 Canadian cents, or 2.7 percent, to C$10.99 on Tuesday afternoon on the Toronto Stock Exchange.

$1=$1.24 Canadian Reporting by Jennifer Kwan; Editing by Peter Galloway

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