GMP Capital Inc. reported net income of $2.9 million for the third quarter after a net loss of $2.8 million over the same period last year.
The company reported earnings per share of 3 cents compared with a loss of 6 cents per share in Q3 2017.
The firm’s revenue was $59.2 million for the third quarter, up 72% from the same period in 2017.
“Leading the way was our strong Canadian capital markets business, which continues to be the main driver of profitability, growing revenue by 186% across multiple sectors,” said Harris Fricker, president and CEO at GMP Capital, in a release.
Increases in investment banking revenue, underwriting revenue, advisory fees and principal transactions drove the rise in capital markets revenue.
GMP Capital reinstated a quarterly dividend of $0.025 per common share and will pay a special cash dividend of $0.075 per common share.
GMP Capital’s wealth management segment reported income before income taxes of $1 million, compared with $5.7 million a year earlier. The decrease reflects $5.6 million in dividends received in Q3 2017 related to the firm’s preferred share investments in Richardson GMP, compared to $0.6 million in such dividends in the most recent quarter.
The firm’s share of net income for Richardson GMP, for which it holds a non-controlling 33% interest, was $0.5 million, a rise from $0.1 million last year.
Richardson GMP’s net income was $2.6 million, an increase of 17% from $2.2 million last year.
Its revenue rose 7% from the third quarter last year to $70.9 million because of higher investment management fees on higher assets under administration, as well as higher interest income. The firm’s adjusted EBITDA was $10.4 million, a rise of 22% from last year.
Richardson’s assets under administration increased by 3% from the third quarter 2017 to $30.2 billion at the end of September.