Toronto-based GMP Capital Inc. (TSX: GMP) Friday reported net income of $6.1 million in third quarter ended Sept. 30, compared with a net loss of $0.5 million in the third quarter of 2013.
Earnings per share (EPS) for the third quarter were $0.06, compared with a loss per share of $0.01 in the year earlier period.
Revenue was $67.5 million in third quarter, up 58%, compared with $42.6 million in the same period a year ago.
Return on common equity (ROE) was 5.6%, compared with negative 1.2% in third quarter of 2013.
Harris Fricker, CEO, GMP, commened. “Early momentum this quarter gave way to intensifying geo-political and macroeconomic uncertainty late in the quarter and into October 2014. Amid the volatility, our businesses performed reasonably well, powered by a 159% increase in investment banking fees and higher contributions from our U.S. and international operations. Our partners at Richardson GMP have completed integration efforts and delivered a solid quarterly performance.”
Capital markets revenue increased 61% to $61.8 million compared with third quarter 2013, bolstered by a 159% increase in investment banking fees.
Capital markets expenses of $53.6 million increased 42% compared with the third quarter 2013 primarily reflecting higher variable compensation commensurate with the increased revenue generation as well as incremental costs associated with the expansion of the firm’s energy business into Houston.
Wealth management operations, which consists of GMP’s non-controlling ownership interest in Richardson GMP and the financial results of CQI Capital Management L.P., reported income before income taxes of $2.1 million in third quarter of 2014, compared with $1.1 million in third quarter of 2013.
Third quarter 2014 results included a dilution gain of $2.0 million in connection with the dilution of GMP’s equity ownership interest in Richardson GMP following the issuance of convertible debentures by Richardson GMP to its employees.