Canaccord Genuity Group Inc. reported Thursday a 50.5% decline in net income while wealth management revenue in North America dropped by nearly a third.
For the three months ending March 31, the company reported $69 million in net income, down from $139 million in Q4 2021.
Assets under management (discretionary) in Canada increased 34.5%, to $8.48 billion as of March 31, 2022, from $6.31 billion as of March 31, 2021.
Canaccord Genuity’s combined global wealth management operations had Q4 revenue of $174 million, down 12.5% from $199 million in Q4 2021. This was “primarily due to the anticipated reduction in investment banking activity in our North American business,” the company said in a release.
Canaccord Genuity Wealth Management (North America) generated $76.2 million in revenue in the most recent quarter, down 28.8% from $107 million in Q4 2021. This was “due to lower new issue activity when compared to the near record new issue activity in the fourth quarter of the prior fiscal year,” the company said.
During the latest quarter, the company’s Canadian wealth management business brought in $74.6 million in revenue, down 27.9% from $104 million a year ago.
The number of Canadian advisory teams grew by one team to 146, from 145 in Q4 2021.
The wealth management arm’s assets under administration (AUA) – among its operations in Canada, the U.K., Europe and Australia – grew 8.2% to $96 billion as of March 31, 2022, up from $88.8 billion as of March 31, 2021.
Company-wide, net income excluding significant items was $66.8 million for the most recent quarter, down 51.3% from $137 million a year ago.