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November 10, 2021

Canaccord Genuity Group Q2 profit jumps 87%

By Verdict Staff

Canaccord Genuity Group  has recorded an 87% year-on-year surge in its net income in the second fiscal quarter of 2022 ended 30 September 2021.

The group’s net income increased to $49.7m (C$61.8m) from C$32.9m from the same quarter a year ago.

In the three months to September 2021, earnings per share, excluding significant items, on a diluted basis was $0.58.

Second quarter revenue, excluding significant items, of C$475.2m was 22% higher than the prior year.

Canaccord’s global capital markets revenue soared 26% year-over-year to C$304m on the back of ‘substantial growth’ in advisory activity.

The unit led or co-led 83 investment banking deals worldwide, raising C$2.9bn in proceeds during this period.

Advisory revenue climbed 279% to C$139.4m, driven by the group’s US, Canadian and UK capital markets businesses.

Canaccord’s investment banking revenue plummeted 18% to C$89.5m in fiscal Q2 2022.

Global wealth management revenue for the second fiscal quarter grew 14% to C$166.2m, but down 15% from the first quarter of fiscal 2022.

Total client assets in the company’s global wealth management business increased to $98.1bn.

This represents a growth of 33.6% from the previous year, attributed to year-over-year increases of 43% in Australia, 45.1% in Canada, as well as 26.7% in the UK and Crown Dependencies.

Canaccord Genuity Group CEO and president Dan Daviau said: “Enhanced profitability in our second quarter was driven by continued growth from our wealth management businesses and an alltime quarterly record for M&A.

“We continue to benefit from our diversification strategy, as we enter the second half of the fiscal year with a healthy pipeline of ECM and advisory activity, and a broad range of opportunities to support continued growth in our wealth management businesses.”

In April this year, Canaccord reached an agreement to acquire Adam & Company’s private client investment management business for £54m ($74.4m).

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