Canaccord cuts dividend as investment banking revenues slide
TORONTO Aug 8 (Reuters) - Canaccord Financial Inc reported a quarterly loss and slashed its dividend payout on Wednesday, as unfavorable market conditions led to a sharp fall in revenues from its investment banking arm and wealth management unit in North America.
The Toronto-based financial services company halved its quarterly dividend payout to 5 Canadian cents a share from 10 Canadian cents, it said in a statement.
The firm reported a fiscal first-quarter net loss of C$20.6 million, or 24 Canadian cents a share. That compared with a year-ago profit of C$13.2 million, or 16 Canadian cents a share, a year earlier.
Excluding one-time amortization costs and other items, the company reported a loss of C$16.3 million, or 20 Canadian cents a share.
Canaccord, which earlier this year bought British broker and advisory group Collins Stewart Hawkpoint for 250 million pounds ($392 million), said it was working on lowering the cost base of the combined business, merging common operations and business units.
Canaccord Chief Executive Paul Reynolds added that the company is planning to cut jobs and leasehold expenses in Canada to save about C$5.5 million a year.