Power Financial Corp. is reporting reduced earnings for the first quarter ended March 31.

The financial services holding company says net earnings were $198 million or 55¢ per share in the first quarter of 2001, compared with $237 million or 65¢ per share for the same period of 2002.

Net earnings in the first quarter of 2001 also included goodwill amortization of $16 million, and other income of $21 million which represented the company’s share of non-operating income recorded within the Pargesa group. Under revised accounting standards, which took effect on January 1, 2002, goodwill is no longer amortized.

The company says operating earnings were $237 million or 65¢ per share, compared with $193 million or 54¢ per share for the same period in 2001.

On a per share basis, operating earnings increased 20.4% over 2001, primarily reflecting strong growth in earnings at Great-West Lifeco Inc. and Investors Group Inc.

Net income attributable to common shareholders of Great-West Lifeco Inc. for the first quarter of 2002 was $222 million or 60.2¢ per share, compared with $166 million or 44.6¢ per share for the same period in 2001.

Net income attributable to common shareholders of Investors Group Inc. for the first quarter of 2002 was $116 million or 44¢ per share, compared with $64 million or 30.4¢ per share for the same period in 2001.