Power Financial Corp. posted a slight increase in operating earnings for the first quarter ended March 31.

The financial services holding company said Q1 operating earings were $491 million, or 67¢ a share, compared with $482 million, or 66¢ a share in the corresponding period in 2007. This represents a 1.8% increase on a per share basis.

The company said earnings were impacted by the increase in the foreign exchange value of the Canadian dollar compared with Great-West Lifeco’s major operating currencies. Based upon Lifeco’s growth in earnings on a constant currency basis, Power Financial’s operating earnings on a per share basis for the quarter would have increased by 9%.

Other income was $95 million, or 13¢ a share during the quarter and consisted of Power Financial’s share of non-operating earnings recorded by Great-West Lifeco, as well as by Pargesa.

Net earnings, including other income, for the quarter were $586 million, or 80¢ a share, compared with $482 million, or 66¢ a share in the first quarter of 2007.

Great-West Lifeco reported net income attributable to common shareholders of $654 million for the three months ended March 31, 2008, up 27%, compared with net income of $514 million reported a year ago.

IGM Financial reported net income for the three-month period ended March 31, 2008 of $211.2 million, compared with adjusted net income of $210.5 million in 2007.

Power Financial holds a 50% interest in Partjointco N.V., which in turn holds a 54.1% interest in Pargesa Holding SA. Pargesa reported operating earnings of 75 million Swiss francs in the three-month period ended March 31, 2008, compared with 78 million for the corresponding period in 2007.

The Board of Directors also declared a quarterly dividend of 33.5 cents per share on the Corporation’s common shares payable August 1, 2008 to shareholders of record June 30, 2008.

Power Financial also increased its quarterly dividend by 2.25¢, or 7.2%, over the previous quarterly dividend of 31.25¢.

At its annual meeting of shareholders held in Montréal today, Robert Gratton indicated that he was retiring as an executive of Power Financial and would not be standing for re-election as chairman of the board of directors.

Gratton was named president and CEO of Power Financial in 1990, having served as chairman, president and CEO of Power Financial’s subsidiary Montreal Trust, from 1982 to 1989. He became executive chairman of the board of Power Financial in May 2005. He remains a member of the board of directors.

At the meeting, Gratton told the shareholders of that they could count on his continuing interest in and support of the group companies and their management.

The board of directors approved the appointment of André Desmarais and Paul Desmarais, Jr. as co-chairmen.

Also today Raymond McFeetors was elected to the board of directors of Power Financial and was named vice chairman of the board. McFeetors will work closely with Jeffrey Orr, president and CEO, and will have ongoing responsibility for the corporation’s investment in the Great-West Lifeco group of companies.