Canaccord Genuity Group Inc. reported net income of $61.79 million for its most recent quarter on Monday after a strong period for deals and record advisory revenue for the U.S. capital markets business.
Toronto-based Canaccord’s profit for the period ended Sept. 30 was up 87% from $32.99 million a year ago, but down from $73.05 million last quarter.
Net income attributable to common shareholders excluding significant items was $63.33 million, the firm said.
“Enhanced profitability in our second quarter was driven by continued growth from our wealth management businesses and an all-time quarterly
record for M&A,” said Canaccord president and CEO Dan Daviau in a release.
Advisory revenue for Q2 2022 was $139.4 million, an increase of 78.7% from Q1 2022 and a 274% year-over-year increase, with the U.S. capital markets business accounting for $103.6 million.
Canaccord’s overall revenue was up 21.7% from a year ago to $475.16 million, but lower than $518.8 million in the first quarter.
The company’s combined global wealth management operations reported net income of $31.7 million, representing one-third of the company’s adjusted pre-tax profit and up almost 18% from a year ago.
The North American wealth management business generated a $9.9-million profit in the second quarter, down 15.7% from a year ago and 62.2% from the previous quarter.
Client assets across the company’s global wealth management business totalled $98.1 billion on Sept. 30, an increase of $3.2 billion from the first quarter. Client assets in North America were $35.8 billion, a 3.4% increase from the first quarter.
Average assets under advisement per advisor team in North America was up 44.1% year-over-year to $245.0 million. The North American business had 146 advisor teams, one more than the previous quarter.
Assets under management (AUM), which are included in AUA, hit $7.6 billion on Sept. 30, a 54.6% increase from the previous quarter.