(Bloomberg) -- Canaccord Genuity Group Inc. posted record wealth-management numbers in its fiscal second quarter and said its capital-markets division is also bouncing back after an extended down period.
Revenue at the Canadian firm increased by 27% from a year earlier to C$428.6 million ($309.2 million) in the three months through September, according to a statement Thursday. Profit on an adjusted basis totaled C$31.8 million or 20 Canadian cents per share, in line with the average estimate of three analysts in a Bloomberg survey.
Canaccord has made a concerted push into the wealth-management business in recent years, with a series of acquisitions of smaller firms, a move that has helped it counter more volatile revenue on the trading and investment-banking side, which went through a drought in recent years.
Chief Executive Officer Daniel Daviau said the firm set records for revenue, client assets and earnings in the wealth unit during the quarter. The division makes up about half of Canaccord’s revenue, contributing C$216.5 million in the period, an increase of almost 16% from a year earlier.
“So that plan is working perfectly. And we can predict it,” Daviau said in an interview, adding that increased market activity overall has also boosted its capital-markets business, which, “for a change, is starting to perform well.” Revenue in that unit was up almost 40% to C$202.1 million in the quarter.
The company’s mergers and acquisitions pipeline is strong, and while the landscape for initial public offerings is more difficult to predict, “we believe we’re going to continue to see a pretty robust new-issue calendar over the next three, six and nine months,” he said.
The firm’s focus on the technology, health-care, sustainability and mining sectors means it’s “more active in the IPO market than a lot of other firms would be,” he said.
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