Independent Canadian investment bank GMP Capital (TSE:GMP) Friday posted a net loss for the third quarter as volatile markets hit its bottom line.
For the quarter that ended September 30, net loss came in at $4.6 million, or 9 cents per share, compared with a profit of $23.1 million, or 32 cents per share, a year earlier.
Revenue fell 54 percent to $46.3 million.
GMP chief executive officer, Harris Fricker, said: "Third quarter 2011 marked disappointing results for the firm. Global economic uncertainty intensified this quarter resulting in a significant contraction in overall business activity in our capital markets segment.
"Heightened equity market volatility together with declining global equity market valuations and lower investor confidence resulted in weaker investment banking revenue, unrealized losses in principal activities and reduced trading volumes."
During the second quarter, GMP was hit with lower levels of underwriting activity and reduced institutional trading volumes.
Within the capital markets division, which has powered profits in previous quarters, revenue dropped 59 percent to $37.9 million on losses in investment banking revenue.
Assets under management at its investment arm reached $576 million as at September 30, a 73 percent increase compared with the same period last year.
Shares were down 4.2 percent to $6.75 Friday afternoon.