Excluding significant items, quarterly earnings per common share of $0.13 (1) First quarter dividend of $0.085 per common share TORONTO, Aug. 8, 2024 /CNW/ - Canaccord Genuity Group Inc. (Canaccord Genuity Group, the Company) (TSX:CF) today announced its financial results for the first fiscal quarter ended June 30, 2024. 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 fiscal quarter highlights: (All dollar amounts are stated in thousands of Canadian dollars unless otherwise indicated) First quarter revenue excluding significant items(1) of $429.0 million, an increase of 24.9% over the same period in the prior year (on an IFRS basis, revenue was $428.2 million, a year-over-year increase of 24.7%) First quarter net income before taxes excluding significant items(1) of $34.8 million, an increase of 5.8% or $1.9 million year-over-year (on an IFRS basis, net income before taxes amounted to $23.5 million , a year-over-year increase of 274.6%) Diluted earnings per common share excluding significant items(1) for the first fiscal quarter of $0.13 per share (diluted earnings per common share of $0.02 on an IFRS basis) Record quarterly wealth management revenue of $215.9 million, a year-over-year increase of 13.0% Total client assets(1) in our global wealth management business increased by 8.8% year-over-year to $105.8 billion, reflecting year-over-year increases of 3.1% in Canada, 11.4% in the UK & Crown Dependencies, and 22.7% in Australia First quarter revenue earned in our capital markets division increased by 41.1% year-over-year and primarily reflects a 121.3% increase in revenue from investment banking activities and a 65.7% increase in revenue from advisory activities First quarter common share dividend of $0.085 per share Three months ended June 30 Year-over-year change Three months ended March 31 Quarter-over-quarter change Q1/25 Q1/24 Q4/24 First fiscal quarter highlights- adjusted1 Revenue excluding significant items1 $428,961 $343,443 24.9 % $409,278 4.8 % Expenses excluding significant items1 $394,144 $310,547 26.9 % $370,205 6.5 % Diluted earnings per common share excluding significant items1 $0.13 $0.07 85.7 % $0.15 (13.3) % Net Income excluding significant items1 $25,441 $19,433 30.9 % $30,779 (17.3) % Net Income attributable to common shareholders excluding significant items1,3 $13,363 $7,578 76.3 % $17,397 (23.2) % First fiscal quarter highlights- IFRS Revenue $428,165 $343,324 24.7 % $409,048 4.7 % Expenses $404,632 $337,042 20.1 % $394,687 2.5 % Diluted loss per common share $0.02 $(0.15) 113.3 % $(0.07) 128.6 % Net Income (loss)2 $16,721 $(268) n.m. $7,912 111.3 % Net income (loss) attributable to common shareholders,3 $2,399 $(13,388) 117.9 % $(6,548) 136.6 % 1. Figures excluding significant items are non-IFRS measures. See Non-IFRS Measures on page 52. Before non-controlling interests and preferred share dividends paid on the Series A and Series C Preferred Shares3. Net income (loss) attributable to common shareholders is calculated as the net income adjusted for non-controlling interests and preferred share dividends _________________________________ (1) See Non-IFRS Measures on page 5 Core business performance highlights: Canaccord Genuity Wealth Management The Company's combined 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%. Net income before taxes excluding significant items(1) 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 our growth initiatives. Wealth management operations in the UK & Crown Dependencies generated first quarter revenue of $107.5 million, an increase of 4.2% compared to the same period last year and a new quarterly record for this business. Net income before taxes excluding significant items(1) for this business was $22.8 million in Q1/25, down 14.6% year-over-year. Canaccord Genuity Wealth Management (North America) generated $90.0 million in fiscal first quarter revenue, an increase of 24.0% compared to the same quarter a year ago which primarily reflects a 22.8% increase in commissions & fees revenue, in addition to higher investment banking and interest revenue. Excluding significant items(1) net income before taxes for this business was $9.3 million in Q1/25, which represents a year-over-year increase of 2.7%. Wealth management operations in Australia generated $18.4 million in fiscal first quarter revenue, an increase of 20.9% compared to the first quarter of last year. Excluding significant items(1) net income before taxes for this business was $1.2 million in Q1/25, up from $0.3 million in Q1/24. 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. Client assets in the UK & Crown Dependencies reached a new record of $60.9 billion (£35.2 billion) as at June 30, 2024, a year-over-year increase of 11.4% (an increase of 8.4% in local currency). Client assets in North America were $38.3 billion as at June 30, 2024, an increase of 3.1% from $37.2 billion at June 30, 2023 due to net new inflows, recruitment activity and additional assets from our acquisition of Mercer's Canadian Private Wealth business which was completed in May 2023. Client assets(1) in Australia were $6.6 billion (AUD$ 7.3 billion) at June 30, 2024, an increase of 22.7% from the first quarter of fiscal 2024. In addition, client assets(1) totalling $13.9 billion (AUD$ 15.3 billion) are also held on record in less active and transactional accounts through our Australian platform. Canaccord Genuity Capital Markets On a consolidated basis, Canaccord Genuity Capital Markets earned revenue of $205.6 million for the first fiscal quarter, a year-over-year increase of 41.1% and mostly attributable to increased revenue from investment banking and advisory activities in each of our geographies. During the three-month period, Canaccord Genuity Capital Markets participated in 113 investment banking transactions globally, raising total proceeds of $10.8 billion. Advisory revenue increased by 65.7% year-over-year, mainly due to higher contributions from our US and UK businesses. Investment banking revenue increased by 121.3% compared to the first quarter of fiscal 2024 as activities increased in our focus sectors across all our core operating regions. Trading revenue in our US and UK businesses increased by 23.3% and 67.3% respectively, partially offset by lower revenue earned in our Canadian operations.  Commissions and fees revenue decreased by 7.5% year-over-year, as an increase of 66.9% in our UK operations was offset by declines in our Canadian and US operations. Excluding significant items(1),  our global capital markets division  recorded a net income of $13.0 million for the quarter compared to a net loss before taxes excluding significant items(1) of $7.6 million in the same period ...