Canaccord profit up after record revenue from advisory fees

Canaccord Genuity Group Inc. reported profit of more than $81 million in its most recent quarter as revenue surged from the firm’s capital markets and wealth management businesses.

Toronto-based Canaccord’s net income for the three months that ended June 30 totalled $81.25 million, up 179.5% from $29.07 million a year earlier. Revenue for the quarter was $523.81 million, up 38.7% from the same period last year.

“We are pleased to have had such a productive start to our fiscal year, with higher contributions from our global wealth management operations, a continuance of strong capital raising activity in our capital markets businesses, and substantial growth in advisory activity,” said Canaccord president and CEO Dan Daviau in a statement.

“Although we anticipate a more normalized environment for underwriting activities in our core focus sectors, we are increasingly delivering on a strong pipeline of higher-margin advisory activities and continuing to invest in the growth of our global wealth management operations.”

Profits slowed, however, compared to the previous quarter, when Canaccord reported net income of $133.26 million (excluding significant items). Revenue of $692.33 million for the three months ended March 31 was also significantly higher than the most recent quarter.

For the three months to June 30, Canaccord’s revenue from advisory fees for its capital markets business hit a record $76 million, up more than 269% from a year earlier.

The Canadian wealth management business earned $104.2 million in revenue for the quarter for a  $26.2-million profit. Client assets in Canada totalled $34.6 billion on June 30, up 7.3% from the previous quarter and 55.5% year over year.

The firm’s global wealth management business earned revenue of $195 million in the quarter, up 41.4% from the same period last year. Total client assets across the firm’s global wealth management business increased 6.9% from the previous quarter to $94.9 billion.

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The staff of Advisor.ca have been covering news for financial advisors since 1998.