Source: The Canadian Press

GMP Capital Inc. (TSX:GMP), a Toronto-based investment dealer, broker and wealth manager, reports its net profit nearly tripled in the latest quarter on strong performance in its capital markets division.

GMP said Friday its net earnings rose 177% to $22.5 million or 32 cents a share for the second quarter ended June 30. That was up from earnings of $8.1 million or 12 cents a year earlier.

Revenue increased 11% to $111.6 million from $100.8 million. The company’s capital markets unit, which helps companies arrange stock financings, performed well, GMP said.

“Although market conditions became increasingly more challenging in the latter half of this quarter, the resiliency of the GMP franchise and our strong client relationships provided us the opportunity to lead or co-lead several of the largest equity underwriting transactions completed in Canada during the second quarter,” Kevin Sullivan, GMP’s CEO, said in a release before stock markets opened.

“We are also encouraged by the positive momentum generated by GMP Europe as they continue to deliver services to a wider European institutional client base.”

Looking ahead, Sullivan expressed a cautious outlook and said future growth depends on how companies perceive the strength of the economic recovery that is taking hold around the world.

“While we are encouraged by our results this quarter, led by strong performances in investment banking, we are mindful that the timing of the global economic recovery remains less certain and investor confidence is expected to remain tentative over the near term, which could result in downward pressure on client and business activity.

“However, we will remain focused on appropriately and profitably managing all of our businesses and supporting our clients through these volatile market conditions.”