“The abrupt deceleration in global markets impacted first fiscal quarter financial performance in all of our capital markets businesses and to a lesser degree, our wealth management businesses,” president and CEO Dan Daviau said in a Thursday press release.
The firm’s capital markets business generated pre-tax net income of $4.1 million in Q1 2023, a decrease of 95.1% year-over-year, and revenue was down 49.4% from last year.
The firm’s North American wealth management business had pre-tax net income of $6.5 million in the quarter, a 75.2% year-over-year decrease, and generated revenue of $73 million, down 30% from a year earlier.
The company’s combined global wealth management business generated $162.2 million in revenue for the most recent quarter, a 16.8% year-over-year decrease from about $195 million in Q1 2022.
Daviau noted that the company had experienced net inflows in all of its businesses during its most recent quarter. He said this was “bolstered” by the company’s acquisition of Punter Southall Wealth, a UK wealth management firm, which closed at the end of May.
“Looking forward, we expect that economic conditions will continue to tighten before they improve but we continue to be active globally and we feel good about our market position, the outlook for our wealth management businesses and a continuation of strong M&A activity in our capital markets businesses,” Daviau said.
Canaccord’s Canadian business’s assets under administration (AUA) decreased 2.1% year-over-year to $33.86 billion from $34.59 billion in Q1 2022.
However, its discretionary assets under management increased 13.8% year-over-year to almost $8 billion in Q1 2023 from just under $7 billion a year ago.
Total AUM across Canaccord’s global wealth management business decreased 4.4% year-over-year to $90.7 billion.
The firm had 146 advisory teams in Canada, up from 145 a year ago. The number of employees across the company increased by 7.7% over that time frame.