Power Financial Corp today reported a drop in profit for the third quarter ended September 30, as a result of a one-time gain recorded a year ago.

The financial services holding company posted net income of $457 million, or 62¢ a share, for the three months ended Sept. 30. That was down 42% from earnings of $795 million, or $1.10 a share, in the same 2006 period.

A year earlier, the company recorded a gain of $356 million, or 50¢ a share, on the sale of a stake in German media company Bertelsmann AG.

Power Financial said operating income rose despite lower premium and investment income.

Operating earnings rose to $531 million, or 73¢ a share, the company said. That was up from $439 million, or 60¢ a share, in the 2006 third quarter.

Revenue in the quarter was $7.3 billion, up from $7.2 billion a year earlier, due to changes in the fair value of assets held for trading.

Expenses climbed to $6.5 billion, from $6.2 billion.

Power Financial controls Great-West Lifeco Inc. and IGM Financial Inc.

In the quarter, Great-West Lifeco took a charge for certain Canadian retirement plans. Power Financial said its share of the provision was $74 million, or 11¢ a share.