IGM Financial reports record-high Q1 earnings

Winnipeg-based IGM Financial Inc. reported its 2021 first-quarter earnings on Thursday, which were at record highs when compared with year-ago earnings reported during the pandemic’s onset.

Net earnings were $202.2 million or $0.85 cents per share in the first quarter of 2021, compared with $160.9 million or $0.68 cents per share in the first quarter 2020.

“This represents a 25% increase in earnings per share and is the highest first quarter result in the company’s history,” the firm said in a release.

First-quarter net inflows were $2.2 billion, compared with net inflows of $821 million in the first quarter of 2020.

Assets under management and advisement were $248.5 billion, up 3.6% in the quarter and 47.6% from March 31, 2020. That included $30.3 billion in net business acquisitions in 2020.

Wealthsimple Financial Corp.’s announcement of a further equity fundraising increased the value of IGM’s investment in the online investment platform by $900 million ($3.78 per IGM share) to $1.45 billion, the release said.

In the wealth management segment, which includes IG Wealth Management and Investment Planning Counsel, net earnings in the first quarter of 2021 were $114.8 million, representing 56.8% of IGM’s net earnings. This was an increase of 8.7% compared with the first quarter of 2020, the release said.

Assets under advisement in that segment at March 31, 2021 were $136.9 billion, an increase of 3.2% from $132.6 billion at December 31, 2020, and an increase of 24.2% from $110.2 billion March 31, 2020.

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