Canaccord says weak markets dented earnings
CANACCORD Financial said yesterday its third-quarter profit plunged 94 per cent on a weak market and one-time charges, but the core result topped analysts’ estimates, prompting investors to push the Canadian brokerage’s shares higher.
Canaccord, which agreed to buy London stockbroker Collins Stewart in December, said it earned C$2.5m (£1.59m) in the final quarter of 2011.
Revenue in the quarter dropped 42 per cent annualised to C$147.9m, as slumping market activity hurt investment banking and trading activity. The figure was a 24 per cent improvement on the previous quarter, however.
Advisory revenue from subsidiary Canaccord Genuity rose 53 per cent to C$38.5m, however, due to robust cross-border merger activity, the company said.
The firm booked costs of C$2.7m related to its purchase of Collins Stewart, which it expects to be finalised on 22 March.