5th Feb 2015 09:03
LONDON (Alliance News) - Canaccord Genuity Group Inc Thursday said it swung to a third-quarter net loss due to double-digit declines in many of its revenue contributors, as it detailed changes to the executive structure of its global capital markets business.
In a statement, the financial services group said it made a CAD21.5 million net loss in the last three months of 2014, compared with CAD18.3 million net profit in the corresponding period last year, as it reported 28% decline in revenue to CAD166.5 million on double-digit falls in investment banking, advisory fees, principal trading and interest.
Expenses were down 7% to CAD192.0 million, mainly due to a 24% decrease in incentive compensation to CAD87.2 million.
"Continuing economic and political uncertainty in many of the regions where we operate contributed to a turbulent capital markets environment throughout much of our fiscal third quarter. The heightened volatility that began late in our second fiscal quarter prevailed through October and
November, which led to a postponement of transaction activity in our key markets," Paul Reynolds, president and chief executive, said in a statement.
The news came just days after Canaccord revealed plans to cut its workforce by 4% due to weak market conditions in its global capital markets business.
Canaccord also said Thursday that Dan Daviau has been appointed as the chief executive of North American Capital Markets, making him responsible for the management of its Canadian and US capital markets operations.
Canadian investment banking will be led by an executive team reporting to Dan Daviau comprised of Jens Mayer, who will continue as co-head of investment banking alongside Sanjiv Samant, who has been promoted to co-head of investment banking, Justin Bosa, who has been promoted to head of diversified investment banking, and Stewart Busbridge, who will become head of mergers and acquisitions.
"This new team will be charged with continuing to grow and improve our already leading investment bank franchise," the group said.
Canaccord shares were untraded on in London Thursday at 330.00 pence per share.
By Samuel Agini; [email protected]; @samuelagini
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