TORONTO Aug 8 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
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
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.