MONTREAL - Power Financial Corp., whose subsidiaries include Great-West Lifeco Inc. (TSX:GWO) and IGM Financial Inc. (TSX:IGM), reported a big improvement in fourth-quarter earnings Thursday despite an overall decline in revenue.
The Montreal-based holding company (TSX:PWF) said net profits were $340 million or 45 cents a share for the three months ended Dec. 31. That compared with a net loss of $773 million or $1.12 per share for the same 2008 period.
Revenues for the quarter were $6.5 billion, including some $4.3 billion in premium income, 1.4 billion in investment income and $800 million in fee income.
That compared with $7.1 billion in revenue in the 2008 quarter, when premium income was $4.8 billion, investment income $1.5 billion and fee income $1.1 billion.
Operating earnings for the quarter were $384 million or 51 cents a share, compared with $434 million or 59 cents last year 2008.
"Other items in the fourth quarter of 2009 were a charge of $44 million or six cents a share, compared with a charge of $1,207 million or $1.71 per share in the same period in 2008," the company said in a news release.
Power Financial, a subsidiary of Power Corp. of Canada (TSX:POW), a conglomerate controlled by Quebec’s Demarais family, said net income for the full year was $1.4 billion or $1.91 a basic and diluted share, up from $1.3 billion or $1.78 in 2008.
Operating earnings for the year were $1,533 million or $2.05 per share, compared with $1,974 million or $2.69 per share in 2008.
"The decrease in operating earnings reflects primarily the decrease in the contribution from the corporation’s subsidiaries and Parjointco," it said in a statement.
Power Financial holds a 50 per cent interest in Parjointco N.V., which in turn has a 54.1 per cent interest in Pargesa Holding SA.
In breaking down fourth-quarter earnings, Power Financial said:
-Winnipeg-based Great West contributed net income of $443 million, down from $525 million for the same period in 2008.
-IGM Financial Group, which owns Investors Group and Mackenzie Financial, contributed net income of $177 million, compared with $140 million in 2008.
-The contribution from Pargesa was $1 million, compared with $2 million in the fourth quarter of 2008.
The company’s board of directors declared a quarterly common share dividend of 35 cents payable April 30 to shareholders of record March 31.
Power Financial shares were up nine cents at $32.33 in midday trading Thursday on the Toronto Stock Exchange.
