AGF Management Ltd. Wednesday reported an almost 50% drop in third quarter income as a result of declines in global markets and an increase in loan loss provisions at its trust company operations.

AGF said net income for the quarter ended August 31 was $22.8 million, down from $41.1 million in the same period in 2008.

Earnings per share for the quarter were 25¢ compared and 46¢ in the third quarter of last year.

Total consolidated revenue decreased to $146.9 million, or 20.5%, compared with $184.7 million in the third quarter of the prior year, the company said.

Total assets under management dropped 15.8% to $41 billion at Aug. 31, 2009 from $48.7 billion as at August 31, 2008. Over the same period, mutual fund assets declined by 16% primarily as a result of market depreciation combined with net redemptions. However, the level of net redemptions showed improvement on a year-over-year basis, AGF said.

Institutional and high-net-worth client assets declined 15.5% year-over-year primarily as a result of market depreciation.

Loan assets at AGF’s trust company declined 14.1% over Aug. 31, 2008 to $3.8 billion as at Aug. 31, 2009. The company said AGF Trust remained focused on credit and collections activities in the third quarter of 2009 to mitigate potential future loan losses.

“There were signs during the third quarter that the global economy is moving toward a recovery. Global markets continued to improve with higher indices contributing to increases in our AUM and profitability compared to the second quarter,” said Blake Goldring chairman and CEO.

“While encouraged by the steady growth in our AUM over the past quarter, we will continue to strengthen the business through expense discipline, improving our future operating capabilities and servicing our clients.”

IE