Canaccord’s net income, revenue up in Q1

Canaccord Genuity Group Inc.’s net income and revenue were both up in the first quarter, the firm announced on Tuesday.

Net income for the quarter ended June 30 increased by 30.2% year over year, while revenue increased by 18.7%. Expenses (excluding significant items) increased by 17.2%.

Canaccord’s combined global wealth management operations earned revenue of $129.7 million in Q1, a 15.2% year-over-year increase.

The firm said its North American wealth management business increased by 23.6% year over year, driven by more transactional activities and continued asset growth, as well as investment advisor recruiting activities. The pre-tax profit margin for Canaccord’s North American wealth management operations improved by 16% in the first quarter, “as non-compensation expenses returned to a more normalized level,” the firm said.

First quarter wealth management revenue in the U.K. and Europe increased by 9.3% compared to a year ago. Canaccord attributed this to higher commissions, fees revenue and contributions from the Thomas Miller Wealth Management Limited and McCarthy Taylor Ltd. acquisitions.

“We delivered a solid first quarter result and a positive start to our 2020 fiscal year,” Dan Daviau, president and CEO of Canaccord Genuity Group Inc., said in a press release.

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