Third-quarter profit at investment company AGF Management Ltd. rose 7.6 per cent to $29.9-million as revenue jumped 17.4 per cent due to a higher contribution from its investment management business as the firm’s assets under management increased.
Toronto-based AGF said its net earnings amounted to 31 cents per share and compared with a profit of $27.8-million, also 31 cents per share in the same period a year earlier. Revenue rose to $174.5-million from $148.7-million as assets under management increased 13.6 per cent to $48.4-billion.
Stripping out one-time costs associated with its acquisition and integration of fund manager Acuity last year, AGF reported adjusted earnings per share of 32 cents.
“Market volatility as a global phenomenon has impacted the asset management industry,” chairman and chief executive officer Blake Goldring said in a statement.
“Against this backdrop, we believe we are well positioned to address this cycle of volatility and will continue to look for ways to deliver value to shareholders and remain focused on our strategy to improve sales and performance.”
AGF also noted that its provision for loan losses – the money a financial institution sets aside to cover loan defaults – dropped 38.3 per cent, while loan originations increased 154.3 per cent to $112.4-million.