Canaccord Capital Inc. has suspended its dividend after reporting a net loss for the second quarter ended Sept. 30.

The net loss for the quarter was $5.4 million, or 11¢ a share, down from year-ago earnings of $15.3 million, or 26¢ a share, the full service investment dealer reported Thursday.

Revenue was $110.8 million the quarter, down 30% from $158.9 million a year earlier.

Annualized return on equity for the quarter fell to 10.3% from 50% in the year earlier period.

Vancouver-based Canaccord disclosed a week ago that it is laying off 170 people, or 10% of its workforce, and is cutting senior executive base salaries by 10 to 20%.

“With the credit markets effectively shut down and volatility reaching unprecedented levels, most investors stayed on the sidelines, waiting for a more rational order to reassert itself,” Canaccord said in a release.

“It is likely that the challenges the financial services industry faces are far from resolved and may continue for another 12 to 24 months. Preserving Canaccord’s capital base during what could be a prolonged downturn must be our primary concern.”

IE