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.



Advertisements

Latest Economic News

  • B.C. unveils housing plan that raises foreign buyers levy and taxes speculators

    Economic CTV News
    VICTORIA -- British Columbia is raising its foreign buyers tax and expanding it to areas outside of Vancouver, while bringing in a new levy on speculators, as part of a sweeping plan to improve affordability in the province's overheated housing market. Source
  • B.C. government introduces new speculation tax and raises foreign buyers tax

    Economic CBC News
    The B.C. government delivered on a wide variety of promises from its election platform and throne speech in its first budget, forecasting a $219 million surplus for the upcoming fiscal year on the strength of a strong economy. Source
  • Canadian bank earnings forecast bright but housing, NAFTA cloud outlook

    Economic CBC News
    The forecast for Canada's biggest banks is bright thanks to U.S. tax reform and higher interest rates, but as they report first-quarter results this week, domestic mortgage demand and the North American Free Trade Agreement could cloud the long-term outlook, analysts say. Source
  • Competition Bureau reaches settlement with Leon's and the Brick

    Economic CTV News
    OTTAWA - The Competition Bureau says it has reached an agreement with Leon's Furniture Ltd. and the Brick Ltd. regarding allegations of deceptive marketing practices. As part of the settlement, Leon's and the Brick have agreed to each donate $750,000 worth of home furnishings over two years to charities to be approved by the regulator. Source
  • Competition Bureau settles with Leon's, The Brick over marketing practices

    Economic CBC News
    The Competition Bureau says it has reached an agreement with Leon's Furniture Ltd. and the Brick Ltd. regarding allegations of deceptive marketing practices. As part of the settlement, Leon's and The Brick have agreed to each donate $750,000 worth of home furnishings over two years to charities to be approved by the regulator. Source
  • Pipeline backlogs to cost Canadian economy $10.7B this year: Scotiabank

    Economic CTV News
    CALGARY -- Delayed oil pipeline construction is causing a steep discount for Canadian crude prices that is costing the economy roughly $15.6 billion a year or about 0.75 per cent of GDP, according to Scotiabank. Source
  • Pipeline backlogs could cost Canadian economy $15.6B a year: Scotiabank

    Economic CTV News
    CALGARY -- Delayed oil pipeline construction is causing a steep discount for Canadian crude prices that is costing the economy roughly $15.6 billion a year, according to Scotiabank. "Pipeline approval delays have imposed clear, demonstrable and substantial economic costs on the Canadian economy," said bank chief economist Jean-Francois Perrault in a report Tuesday. Source
  • Don't fall for the staging: Real estate expert on how to avoid rookie buyer mistakes

    Economic CTV News
    Being a first-time home buyer without guidance from qualified professionals is like using the internet to diagnose a serious illness -- it’s not going to end well. That’s the advice Toronto real estate agent and industry expert Karyn Filiatrault gives to millennials looking to enter the housing market. Source
  • Trump government expected to defend tariffs on Canadian solar modules in court

    Economic CBC News
    President Donald Trump's decision to hit imports of Canadian solar energy modules with staggering tariffs, starting this month, has sparked another court battle over the extent of his powers to push through his America First agenda. Source
  • Trump administration expected to defend tariffs on Canadian solar modules in U.S. trade court

    Economic CTV News
    TORONTO -- U.S. President Donald Trump's decision to hit imports of Canadian solar energy modules with staggering tariffs, starting this month, has sparked another court battle over the extent of his powers to push through his America First agenda. Source