Grey Horse Corp. reported lower net income for the first quarter ended March 31, the financial services company said Tuesday.

Net income declined 22% to $210,000 from $270,000 in the year earlier period.

Basic earnings per share decreased to 3¢ a share from 4¢ a share a year ago.

Toronto-based Grey Horse serves the corporate and institutional market.

Quarterly revenue increased 10% to $4 million from $3.6 million a year ago, aided by the strong performance of the foreign exchange segment, which contributed $1.1 million.

Grey Horse said the acquisition of Toro FX Inc. in the third quarter of 2008, “appears increasingly to be a successful transaction as the foreign exchange segment drove revenue growth during the quarter. But revenues from the transfer agent and trust segment were nevertheless lower than in the corresponding quarter, reflecting weak capital market activity.”

Annualized return on equity decreased to 4% from 6% during the quarter; however, over the last 12 month period ROE has been 16%, the company said.

“Led by the strong performance of its foreign exchange segment, Grey Horse grew its revenues during the quarter and acquired 31 net new transfer agent clients, including the largest client group in its history, all within what remain difficult markets. Management is confident about the corporation’s capabilities and future, and believes that, overall, this quarter’s results justify that confidence,” said Paul Smith, Grey Horse president and CEO, in a release.

Through its wholly owned subsidiaries, Grey Horse provides transfer agent, corporate trust, corporate secretary, foreign exchange and limited market dealer services to corporations in North American capital markets.

IE