But group earnings miss expectations amid higher expansion costs
Canaccord’s global wealth management operations earned record quarterly revenue of $215.9 million for the first fiscal quarter, a year-over-year increase of 13.0%.
Canaccord Genuity Wealth Management North America delivered $90 million net revenue, up 24% year-over-year as fees and commissions improved, along with investment banking and interest revenue.
Revenues in Australian and UK & Crown Dependencies wealth management also gained (20.9% and 4.2% respectively) although global net income before taxes (excluding significant items for this segment) decreased by 7.5% year-over-year, to $33.3 million, primarily reflecting the impact of increased development costs in connection with the firm’s growth initiatives.
Total client assets in the Company’s global wealth management businesses at the end of the first fiscal quarter amounted to $105.8 billion, an increase of $8.6 billion or 8.8% from Q1/24.
“Our wealth management division delivered record quarterly revenues and consistent earnings in our fiscal first quarter as we continue to make investments to advance our growth priorities in each of our geographies,” said Dan Daviau, President & CEO of Canaccord Genuity Group Inc. “Additionally, our capital markets division reported its third consecutive quarter of revenue growth as our advisory and corporate financing segments both benefited from an improving backdrop for activities in our core mid-market sectors. Although macro uncertainties exist, we are encouraged by improving economic conditions relevant to our core capabilities.”
First quarter revenue earned in Canaccord’s capital markets division increased by 41.1% year-over-year as revenue from investment banking activities posted a 121.3% increase and there was a 65.7% increase in revenue from advisory activities.
Overall, the group posted first quarter revenue (excluding significant items) of $429.0 million, an increase of 24.9% over the same period in the prior year.
See the full earnings details on the Canaccord website.
