The improved performance of Canada’s capital markets helped GMP Capital Corp. post a 53% jump in earnings, while revenues increased 58% in the first quarter of fiscal 2004.
The Toronto-based investment dealers, which until last year operated under the name Griffiths McBurney & Partners, said that for the three months ended April 30 net income was $9.8 million vs $6.4 million a year ago, while revenue increased to $41.4 million from $26.2 million.
Earnings per share jumped to 35¢ from 23¢ on a pro forma basis for the same period last year.
Year-ago figures aren’t strictly comparable, as the bank began trading on the Toronto Stock Exchange in December. The pro-forma figures include adjustments that allow for some comparison from the previous year, when GMP Capital was a limited partnership.
“GMP achieved solid results, with excellent performance in both our investment banking and sales and trading activities in the quarter,” said CEO Kevin Sullivan in a release.
“During the quarter, we expanded our core business by entering the healthcare sector. Our new healthcare team helped deliver very solid results in both investment banking and sales and trading, complementing the consistently strong performance of our six established sector teams,” said Sullivan.
The company said investment banking revenue rose 44.7% to $25.9 million vs last year, thanks to increased market share by total volume in both equity financing and merger and acquisition activity.
In March, the company introduced its new GMP Private Client, a full-service investment firm serving affluent investors, headed by James Werry.
GMP also declared a dividend of 10¢ per common share, payable June 24 to shareholders of record on June 18.
The company said the outlook for the industry in the coming months is positive. “Confidence is returning to the capital markets and, as a result, we are seeing an increase in investment banking and M&A activity. Our business performance is closely related to the performance of the capital markets, which are cyclical by nature and affected by both political and economic conditions in Canada and in the rest of the world.”