Wealth manager Sanders Morris Harris has reported third quarter earnings of $1.3 million, based on continuing operations, from $1.9 million in the year-ago period.

The relatively flat result was attributed to a slight decline in revenue, due mostly to a lower income tax provision and smaller one-time costs. Revenue was down from $41.4 million in the previous year to $41.1 million, while the provision for income tax dropped from $1.2 million to $815,000. Earnings in the quarter to 30 September included after-tax costs of $795,00 from the Edelman Financial Services office expansion, $463,000 from the resolution of legal issues related to its capital markets unit, and $640,000 from losses at its institutional services business.

Client assets at the end of the period totaled $12.1 billion, up 9 per cent from 30 June 2010. An $848 million gain from an appreciation in the market contributed to positive net client inflows, which reached $139 million. Of the total from new client assets, $76 million were attributed to operations from the recently opened Edelman Financial offices. Nine new branches were launched this year.

Sanders Morris Harris operates in 20 states in the US.