Toronto-based GMP Capital Inc. suffered a loss in the fourth quarter (Q4) of 2014, ended Dec. 31, amid a drop in investment-banking business in the latter part of the year — although the firm did see improvements in both revenue and net income for the full year 2014.

GMP Capital reported a net loss of $6.9 million in Q4, equivalent to 12¢ a share, compared with net income of $5.8 million, or 6¢ in earnings per share, for Q3 2013. The loss stemmed from a 22% year-over-year drop in revenue, to $52.8 million vs $67.8 million.

“The relatively favourable operating environment we experienced in the first several months of 2014 deteriorated abruptly late in the third quarter, resulting in a sharp contraction in business activity for the remainder of the year,” said Harris Fricker, GMP Capital’s CEOP. “Our revenue decreased by 22% in Q4 2014, primarily reflecting a 43% decrease in investment-banking fees compared with Q4 2013.”

In particular, investment-banking revenue plunged in Q4, driven by lower underwriting fees. Yet, commission revenue increased by 18% on higher client trading activity and principal transactions generated a net gain of $4.3 million. GMP Capital’s wealth-management segment, which includes a 31% stake in Richardson GMP Ltd., reported a pre-tax loss of $1 million compared with $2 million loss in Q4 2013.