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Power Financial profit climbs 20 per cent

Power Financial Corporation president and CEO Jeffery Orr takes the podium prior to the company's annual meeting in 2007.

Paul Chiasson/The Canadian Press/Paul Chiasson/The Canadian Press

Power Financial Corp.'s quarterly profit rose 20 per cent due to stronger results at its insurance and mutual fund subsidiaries, the company said Friday.

The Winnipeg-based holding company, a unit of Power Corp. of Canada , earned a net $507-million (Canadian), or $0.72 a share, in the second quarter, up from $422-million, or $0.60 a share, in the year-before period.

Analysts had expected, on average, a profit of $0.62 a share, according to Thomson Reuters I/B/E/S.

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Power Financial, part of the Montreal-based Desmarais family empire, owns majority stakes in insurer Great-West Lifeco Inc. and mutual fund company IGM Financial Inc.

Great-West's second-quarter profit rose by 16 per cent to $526-million, while IGM's net income climbed 22 per cent to $217-million. Both companies topped analysts' estimates.

Power Financial's shares were down 1.2 per cent at $26.88 on the Toronto Stock Exchange Friday morning, moving in line with other Toronto-listed financial stocks.

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