Quarterly profit dropped at Power Financial Corp. as its subsidiaries suffered from stock losses and credit charges, the Montreal-based financial services holding company said Tuesday.

Power Financial, a unit of Power Corp of Canada said it had net earnings, including special items, of $195 million, or 24¢ a share, for the three months ended March 31. That is down from a profit of $586 million, or 8¢a share, in the year-earlier period.

Power Financial said it took charges of $57 million, or 8¢ a share, in the first quarter, compared with gains of $95 million in the same period in 2008.

The company said it had operating earnings of $252 million, or 32¢ a share, down from $491 million, or 67¢ a share, a year ago.

The decrease in operating earnings reflects primarily the decrease in the contribution from it subsidiaries, Power Financial said.

Power Financial controls life insurance company Great-West Lifeco and mutual fund manager IGM Financial.

Great-West Lifeco reported net income attributable to common shareholders of $326 million for the three months ended March 31, compared with $654 million in the year-earlier period.

IGM Financial reported net income for the three-month period ended March 31 of $134 million, compared with net income of $211 million a year ago.

IE