Power Financial reports drop in Q1 net profit despite higher revenue

WINNIPEG – Power Financial Corp. (TSX:PWF) has reported a 9.5 per cent increase in operating earnings in the first quarter, but net profit fell some 13 per cent as a result of one-time items that produced a $96-million swing on its balance sheet.

The international management and holding company and parent of Great-West Lifeco. (TSX:GWO) and IGM Financial (TSX:IGM), two of Canada’s largest non-bank financial services companies, said net earnings attributable to shareholders in the three months ended March 31 were $394 million or 55 cents per share.

That was down from $454 million or 64 cents in the same 2012 period.

Revenue was $455 million, up from 417 million.

Power Financial said it booked a $13-million impairment charge in the most recent period, while the comparable period enjoyed an $83-million gain on disposal of assets and other charges and income.

On an operating basis, the company reported net earnings of $407 million or 57 cents per share compared with $371 million or 52 cents in the prior-year period.

In addition to its holdings in Great-West and IGM, Power Financial also has a 50 per cent increase in Parjointco N.V., which in turn has about a 55.6 per cent equity interest in Pargesa Holding SA