Richardson GMP’s revenue increased 7.5% in Q3 2013 compared with the same quarter in 2012.
This was primarily due to the higher investment management and fee income from increased average assets under administration. Q3 2013 revenue was $38.4 million.
This information was released along with GMP Capital’s quarterly results because the firm owns a 32.3% non-controlling interest in Richardson GMP.
Read: Richardson GMP buys Macquarie Private Wealth
The release also notes that on Nov. 1, 2013, Richardson GMP successfully acquired Macquarie Private Wealth Inc. The firm will also offer $10 million of convertible debentures to its investment advisors.
RGMP’s earned adjusted net income rose $1.5 million to $4.2 million from Q3 2012 to 2013. Its AUA closed at $15.2 billion, up $0.7 billion or 5.1% compared with Q3 2012. It boasts 114 investment advisory teams, up from 110 teams at the end of Q3 2012.
Read: IIROC approves RGMP-Macquarie deal
As for GMP Capital, it earned $42.6 million in revenue in Q3 2013, down 26.6% compared with the same period a year ago. Much of that loss was in its capital markets division, where the company says there was a “notable decline” in client activity in mining, and lower returns.
Its capital markets division saw revenue drop 25% compared to Q3 2012. Specifically, investment banking revenue decreased 35.1% compared with Q3 2012 largely due to lower advisory and debt underwriting revenue, partly offset by a 77.7% increase in equity underwriting revenue.
The division managed to reduce its expenses 25% since slower deal flow meant lower compensation for its brokers.
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