Q4 marks end of a "successful year" for the firm, says CEO
CI Financial has released its fourth quarter results, reporting a net loss of $63.5 million.
This was up from $12.4 million in the previous quarter and $9.5 million during the same period last year.
Despite the loss, the Toronto-based firm saw total revenues jump to $715.6 million, up 16.1%, reaching from $616.5 million in Q3.
Expenses also rose 26.5% to $753.7 million, as the company revealed reported increased costs from new office leases, interest expenses, and higher fees in the Canada Wealth Management segment.
Regarding capital allocation, CI said it completed a substantial issuer bid in December 2023, buying back 6,544,502 common shares for an aggregate price of roughly $100 million.
Additionally, the company distributed $28.6 million in dividends, maintaining an annual dividend rate that reflects a 4.5% yield based on CI’s closing share price as of February 22, 2024.
CEO Kurt MacAlpine said the quarter’s results marked the close of a “successful year for CI.”
“There were numerous achievements across our business segments, demonstrating continued progress in executing on CI’s strategic priorities,” he said.
MacAlpine cited the firm’s success in asset management, marked by $340 million in Canadian retail net sales in 2023. He also highlighted the growth of CI’s custody business within its Canadian wealth management segment, which contributed to a 33% increase in adjusted EBITDA over the year.
As for CI’s performance in US wealth management, MacAlpine made note of the firm’s efforts to integrate operations and expand client services.
“Though the most visible accomplishment was the adoption a new unified brand in Corient, there were many important developments behind the scenes in 2023, including the adoption of a centralized reporting structure and a common technology platform,” he said.
According to MacAlpine, these initiatives in the US wealth management space resulted in a 440-basis point increase in the adjusted EBITDA margin for 2023.
“Over the past four years, CI has transitioned from a highly concentrated business, where most of our assets and virtually all our earnings came from Canadian Asset Management, to a much more diversified business,” MacAlpine said.
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