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MONTREAL - Power Financial Corp. (TSX:PWF), emphasizing plans to continue building in the United States and Europe, increased its dividend Thursday while reporting a 21.5 per cent rise in first-quarter net income to $586 million.

Ryan Remiorz/THE CANADIAN PRESS

Jeffrey Orr, president and CEO of Power Financial Corporation, Paul Desmarais Jr., Power Corporation chairman, Paul Demarais, chairman of the executive committee of Power Corporation, Robert Gratton, chairman of Power Financial Corporation, and Andre Desmarais, president and CEO of Power Corporation, left to right, walk to the company's annual meeting Thursday in Montreal.

The conglomerate with controlling stakes in Great-West Lifeco (TSX:GWO) and IGM Financial (TSX:IGM) raised its quarterly dividend to 33.5 cents per share from 31.25 cents.

Jeffrey Orr, the company's president and CEO, said Power Financial's strategy going forward is to build on its existing strengths and exercise prudent financial management.

"We will build on the operations we have today," he told reporters after the company's annual meeting in Montreal.

"The priorities will be to build in the U.S. and build in Europe, where we already have a strong presence through Great-West and Canada Life."

He noted that although the priority remains the U.S., Europe and Canada, the company has a presence in Asia it didn't have before and views the region as an emerging market.

"This is something we will look at but we will not be announcing anything in the short term," Orr said, pointing out the success of Power Financial stems from the fact that it focused on its objectives and did not attempt to "go too far too fast."

Orr said it is important for the company to stay connected in the markets where it already has a presence.

"I would be against trying to do too many things at the same time. You take one step at a time."

Revenue swelled to $18.68 billion from $7.56 billion, as premium income grew to $16.79 billion from $5.34 billion.

Investment income slipped to $1.4 billion from $1.44 billion, fee income grew to $1.44 billion from $1.19 billion, and there was a $940-million hit on the fair value of held-for-trading assets.

The company also marked the retirement of chairman Robert Gratton, who is stepping down after 26 years with the company, although he will remain on the board of directors.

Paul Desmarais Sr., chairman of parent company Power Corp. (TSX:POW), paid tribute to Gratton as "a wonderful man, and the company, since he's been there, has made tremendous progress.

"I am sorry to see him leave but at a certain age I guess we all have to leave."

Desmarais said Gratton had built a strong team which will carry on. He also said the company will continue to consult him on all big decisions.

"We're looking forward to a wonderful future."

Shares in Power Financial were down 23 cents at $35.90 in Thursday Trading at the Toronto Stock Exchange.