Today reported a net loss its second quarter ended Sept. 30, 2006, as brokerage activity slowed.

The net loss for the quarter was $1,687,996, or 18¢ a share, compared with a net profit of $191,861, or 2¢, per share in the prior year. Traditional brokerage activities were slower in the quarter and overall results were negatively impacted by a decline in market values of investments held in the merchant banking portfolio.

Consolidated revenue for the quarter was $2,391,859, compared with $5,013,732 in the second quarter of fiscal 2006. Underwriting and advisory revenue was $1,331,403, down from $3,076,368 the previous year. Weaker commodity prices reduced the number of underwritings, especially in the mining and oil and gas sectors. Commission revenue, at $1,759,879 for the quarter, was up from $1,346,867 in the previous year. Trading revenue decreased from $326,650 to $187,458 due to difficult market conditions.

Merchant banking activities resulted in a net loss of $1,206,340 for the quarter. In the prior year Northern did not have any merchant banking revenue. In the fourth quarter of fiscal 2006, a decision was made by management to dispose of certain long-term investments. As a result of this decision, the investments were reported as current assets and carried at market value resulting in merchant banking revenue of $6,439,787 being reported. In the current quarter, due largely to the recent market downturn, several of these investments have suffered a decline in their market value, resulting in the reported loss.

As at Sept. 30, 2006, Northern had cash, deposits, securities and long-term investments of $11,522,244 compared with $14,485,987 as at September 30, 2005.

Northern wholly owns Northern Securities, a full service investment dealer that provides financial advisory services to retail and institutional clients and investment banking services to small capitalization companies.