The Canadian securities industry generated third quarter operating profits of $1.1 billion, the Investment Dealers Association of Canada reports.
In its quarterly performance report, subtitled “Let the good times roll,” the Investment Dealers Association of Canada said the industry’s profits rose 74% year-over-year. The gains were broad-based, it said.
A strong stock market drove equity-related revenues, and flourishing merger and acquisition activity helped boost earnings. Commissions, trading and investment banking all gained.
“Based on preliminary fourth quarter issuance data, firm commodity prices, and robust trading, it looks like the industry is on track to enjoy another record-breaking year in profits in 2005,” the report said.
Highlights for the period between July and September include:
- retail brokerage companies’ operating profits of $96 million;
- operating profits of $794 million at the integrated brokerage companies, which include retail, underwriting and investment banking operations;
- institutional operating profit was $217 million;
- commission revenue was $1.4 billion;
- Investment banking revenue reached $889 million;
- new equity financings totalled $606 million;
- equity trading was $207 million.
The IDA also said that employment in the industry rose 2% from the second quarter, despite a 1% in the number of brokerage firms.