Canaccord Financial Inc. posted a loss in the last quarter, the second major Canadian brokerage firm to get hit by rough markets.
Canaccord said that revenue fell 20 per cent to $119.5-million in the firm's fiscal second quarter, resulting in a net loss of $5.3-million compared to net income of $10.3-million in the year-ago quarter.
That follows results last week from GMP Capital, which said revenue plunged 55 per cent in its most recent quarter.
Revenue slid 28 per cent in Canaccord's investment banking business and securities business.
The firm has operations in Canada, the U.S., the U.K., China and now Australia, and it said that activity fell in every region.
The firm said conditions in the U.K. were "very challenging," and the business in the U.S. faced "headwinds."
To compensate, Canaccord cut expenses by 6 per cent from the year-earlier quarter.
"Our management composition is flatter, we've made selective decisions to reduce staffing throughout the organization, particularly in geographies facing the most headwinds," Canaccord said.
The firm expressed optimism that if markets stabilize, "we will begin to see some robust activity once again."
Commission revenue fell almost 14 per cent.