Broker and investment dealer GMP Capital Inc. (TSX:GMP) says net income dropped 95% in the fourth quarter as troubled market conditions affected its trading operations.

The company posted income of $2.4 million in the three months, or five cents per share, compared to $46 million, or 51 cents, a year earlier.

Revenue declined 53% to $72.7 million from $153.4 million.

“Our financial results in fourth quarter 2011 were adversely affected by the continued challenging market conditions which dominated much of the year,” said chief executive Harris Fricker.

“Trading and underwriting activity in capital markets remained relatively muted this quarter although merger and acquisitions advisory revenues were 59% higher than fourth quarter 2010.”

In its capital markets division, revenue fell 49% to $67.1 million from $131.6 million.

The investment banking division saw revenues drop 37% to $43.9 million from $69.4 million.