Canaccord Genuity cuts workforce, posts $346.4-million loss

TORONTO -- The weakness experienced in stock markets around the world has taken a toll on one of Canada's largest brokerage firms, Canaccord Genuity, which is cutting seven per cent of its workforce and writing down the value of its business assets.

See Full Article

As a result, Canaccord (TSX:CF) is recording a $346.4 million net loss for its fiscal third quarter, or $3.91 per share.

The company -- which has its principle offices in Vancouver and Toronto -- says the staff reduction affects 125 people in Canada, the United Kingdom and the United States. The company also closed an office in Barbados during the quarter.

The workforce cuts are part of $4.3 million in restructuring expenses during the third quarter that ended Dec. 31. An additional $14 million of restructuring costs will be recorded in Canaccord's fourth quarter, which ends March 31.

Canaccord also took a $4 million writedown of its investment in Canadian First Financial, which offers mortgage and other financial services to retail customers.

The biggest portion of Canaccord's third quarter loss is a $321 million writedown of the value of its capital markets division, which provides research, advisory, trading and corporate finance services to institutional and corporate clients.

"Due to the combined effect of weak equity market conditions globally and in each of our principal operating regions, these reporting units have experienced declines in business activity, revenue and profitability," Canaccord said.

Revenue for the three months ended Dec. 31 was $181.8 million, up nine per cent or $15.4 million from a year earlier.

But expenses grew even more, rising by $20.1 million to $204.2 million without the usual items. Including the significant special items, expenses grew by $340.5 million to $532.5 million.


Latest Economic News

  • Ont. electricity system operator reports $80M loss after accounting change

    Economic CTV News
    TORONTO -- Ontario's efforts to ease the upward pressure on electricity rates has been dealt a setback by a change in accounting practices. In the government's public accounts for 2015-16, the Independent Electricity System Operator reported a "previously unrecognized actuarial loss and past service costs" of just over $80 million. Source
  • Asian stocks mixed after manufacturing reports offset by weak South Korea data

    Economic CTV News
    SEOUL, South Korea -- Asian stocks were mixed on Tuesday as upbeat reports on manufacturing in the U.S. and Europe were followed by weak growth data from South Korea, Asia's fourth-largest economy. KEEPING SCORE: Japan's Nikkei 225 rose 0.7 per cent to 17,354.68 while South Korea's Kospi fell 0.5 per cent to 2,036.86. Source
  • Galaxy Note recall, Hyundai strike hurting South Korea's economy

    Economic CTV News
    SEOUL, South Korea -- South Korea's third-quarter economic growth has slipped to its lowest level in more than a year, with Samsung's Galaxy Note 7 recall having an impact. The country's central bank said Tuesday that Asia's fourth-largest economy expanded 2.7 percent during the July-September quarter over a year earlier, the slowest pace since the second quarter of 2015. Source
  • Toronto lawyer Galati files constitutional challenge against EU trade deal

    Economic CTV News
    OTTAWA -- The Toronto lawyer who successfully challenged the previous Conservative government over one of its Supreme Court judge nominees is setting his sights on a new target: Canada's free trade deal with the European Union. Source
  • Federal deficit likely to come in smaller than predicted in budget: PBO

    Economic CBC News
    The federal government is on track to post smaller deficits in the coming years than the Liberals are currently forecasting, Canada's non-partisan parliamentary budget watchdog said on Monday. The Parliamentary Budget Officer said in a report Monday it expects Ottawa to post a deficit of just over $22 billion this year. Source
  • Quebec carbon market not changing behaviours so far, but experts are hopeful

    Economic CTV News
    OTTAWA -- As politicians across the country worry about the consequences of a national carbon tax on family incomes, many experts say the much-touted carbon market in Quebec has so far had little effect on changing citizens' habits. Source
  • Jared Fogle's ex-wife sues Subway

    Economic CTV News
    NOBLESVILLE, Ind. -- The ex-wife of former Subway pitchman Jared Fogle is suing the restaurant chain for damages, saying the company received three reports indicating his sexual interest in children but failed to take proper action and continued promoting him as their spokesman. Source
  • Lexus, Toyota, Buick top Consumer Reports' reliability list

    Economic CBC News
    Lexus, Toyota and Buick are the most reliable brands in Consumer Reports' latest survey, a reward for their conservative approach to new technology. It's the fourth straight year that Lexus came in first and Toyota came in second. Source
  • Capital Power pushes back Genesee 4 and 5 power plant

    Economic CTV News
    CALGARY - Capital Power has once again delayed a final go-ahead on its new natural gas-fired power plant because of continued uncertainty about Alberta's coal phase-out and power market. The proposed $1.4-billion Genesee 4 and 5 power plant, half-owned by utility Enmax Corp. Source
  • Trump Hotels ditches Trump name for new brand

    Economic CBC News
    The Trump name is likely to be everywhere for the next 14 days, with one notable exception: it won't be associated with any new hotels owned by the Republican presidential candidate's eponymous company. Trump Hotels will use the brand name Scion for new projects targeted at young, urban travellers, the hotel chain said in a press release. Source