CI Financial reported a loss of $12.4 million in the third quarter, as well as lower revenues compared to the previous quarter.
The Q3 loss compared to $14.9 million in net income a year earlier and $51.0 million in net income in the previous quarter. CI said Thursday that excluding non-operating items would result in adjusted net income of $132.8 million for Q3 this year, down 2.4% from the previous quarter.
Revenues also fell in the third quarter, dropping by 20.6% to $616.5 million compared to $776.1 milllion in the second quarter, but up by 20.0% from a year earlier. CI said that excluding non-operating items would result in adjusted total net revenues of $669.6 million, and attributed that figure to its acquisition of a U.S. registered investment advisor (RIA) in the quarter, as well as higher average assets in the Canadian wealth management segment.
Client assets in the Canadian wealth management segment totalled $81.5 billion at the end of the third quarter, down slightly from $82.6 billion at the end of the previous quarter and up from $73.9 billion at the end of the same quarter last year.
CI saw net outflows of $465 million across its entire asset management segment in the quarter, with asset management AUM at $119 billion as of Sept. 30. That’s up from $114 billion as of the same time last year.
Asset management segment revenues also declined, driven by lower interest income.
CI reported a 10.2% quarter-over-quarter decrease in expenses, though expenses rose by 1.3% when excluding non-operating items.
In October, CI acquired Windsor Wealth Management Inc., an Indianapolis-based RIA with approximately $1.9 billion in assets under management.
As mentioned on its second-quarter earnings call, CI converted client assets at Aligned Capital Partners to the CI Investment Services custody and clearing platform during the third quarter. As of Sept. 30, $23.4 billion in assets are on the platform, up from from $9.1 billion as of June 30.
CI declared a quarterly dividend of 20 cents per share.