Canaccord Genuity Wealth Management

The continued growth and success of our wealth management division is fundamental to our long-term strategy, and we have a proven track record of creating substantial value in this segment. Over 10+ years, the Company has invested more than $350 million in acquisitions, recruiting and technology to support the growth of these businesses. Today, our global wealth management businesses are capable of delivering consistent growth and profitability through a range of market environments.

$88.8 billion in total client assets

Firm-wide client assets have grown steadily and substantially for more than six consecutive years, from $32 billion in fiscal 2016 to $89 billion in fiscal 2021.

20% fiscal 2021 pre-tax profit margin⁽¹⁾

Although the lower interest rate environment continues to reduce profitability associated with our deposit and lending activities, each of our geographies has increased adjusted pre-tax profit margins.

A GROWING CONTRIBUTOR TO FIRM-WIDE EARNINGS GROWTH AND STABILITY

Over the last five years, our combined wealth management businesses have steadily increased revenue and net income contributions, improving the strength and stability of our earnings. We will continue to invest with discipline in the growth of this segment, and advance our recruiting, client experience and organic growth initiatives to further enhance our long-term earnings potential.

Global Wealth Management Revenue⁽²⁾ (C$ millions, fiscal years ended March 31)

Global Wealth Management Revenue for the fiscal years ended March 31, in millions of Canadian dollars: 2021: $663.6; 2020: $511.4; 2019: $461.8; 2018: $370.3; 2017: $267.1

Global Wealth Management Income before Income Taxes⁽¹⁾⁽²⁾ (C$ millions, fiscal years ended March 31)

Global Wealth Management Income before Income Taxes for the fiscal years ended March 31, in millions of Canadian dollars: 2021: $135.5; 2020: $80.2; 2019: $75.4; 2018: $57.5; 2017: $29.5

UK & Crown Dependencies – Building upon exceptional growth

Fiscal 2021 revenue in this business was $277.3 million, and, excluding significant items⁽¹⁾, the pre-tax profit margin was 23.5%. A significant investment from HPS has added a regional partner to support future growth, and we will expand into Scotland with our acquisition⁽³⁾ of the investment management business of Adam & Company.

UK & Crown Dependencies Wealth Management Client Assets⁽⁴⁾ (C$ billions and £ billions, fiscal years ended March 31)

UK & Crown Dependencies Wealth Management Client Assets for the fiscal years ended March 31, in billions of Canadian dollars and billions of pounds: 2021: $52.3 and £30.2; 2020: $39.9 and £22.7; 2019: $44.2 and £25.4; 2018: $44.9 and £24.8; 2017: $24.5 and £14.7

UK & Crown Dependencies Wealth Management Income before Income Taxes⁽¹⁾ (C$ millions, fiscal years ended March 31)

UK & Crown Dependencies Wealth Management Income before Income Taxes for the fiscal years ended March 31, in millions of Canadian dollars: 2021: $65.3; 2020: $56.5; 2019: $48.5; 2018: $37.4; 2017: $27.6

Canada – a leading independent wealth manager in the country

With a robust environment for new issue activity, fiscal 2021 revenue in this business grew by 55% to $324.0 million, and, excluding significant items⁽¹⁾, the pre-tax profit margin was 19.3%. Our growth in this region has outpaced the broader industry, and we continue to build upon our recruiting and organic growth initiatives.

Canada Wealth Management Client Assets⁽⁴⁾ (C$ billions, fiscal years ended March 31)

Canada Wealth Management Client Assets for the fiscal years ended March 31, in billions of Canadian dollars: 2021: $32.2; 2020: $18.4; 2019: $20.7; 2018: $15.6; 2017: $13.2

Canada Wealth Management Income before Income Taxes⁽¹⁾ (C$ millions, fiscal years ended March 31)

Canada Wealth Management Income before Income Taxes for the fiscal years ended March 31, in millions of Canadian dollars: 2021: $62.6; 2020: $22.7; 2019: $26.8; 2018: $20.2; 2017: $2.0

Australia – Gaining momentum as a premier brand for small- and mid-cap equities

Fiscal 2021 revenue in this business grew to $62.2 million, and, excluding significant items⁽¹⁾, the pre-tax profit margin was 11.9%. We expect to continue growing client assets in this business organically, and through targeted recruiting and tuck-ins.

Australia Wealth Management Client Assets⁽⁴⁾ (C$ billions, fiscal years ended March 31)

Australia Wealth Management Client Assets for the fiscal years ended March 31, in billions of Canadian dollars: 2021: $4.2; 2020: $2.4; 2019: $0.9; 2018: $0.8; 2017: $0.9

Australia Wealth Management Income before Income Taxes⁽¹⁾⁽⁵⁾ (C$ millions, fiscal years ended March 31)

Australia Wealth Management Income before Income Taxes for the fiscal years ended March 31, in millions of Canadian dollars: 2021: $7.4; 2020: $1.0

(1) These figures exclude significant items. Figures excluding significant items are non-IFRS measures. See Non-IFRS Measures and a reconciliation of net income under IFRS to net income excluding significant items in our annual MD&A.
(2) Beginning in Q3/20, amounts include Australia wealth management.
(3) Closing expected to occur end of Q2 fiscal 2022, subject to regulatory approval and other customary closing conditions.
(4) Assets under administration, management and management contract.
(5) Australia wealth management revenue was previously recorded as part of Canaccord Genuity Capital Markets Australia. Commencing in Q3/20, it is disclosed as a separate operating segment. Fiscal 2020 income before income taxes reflects results only subsequent to the completion of the Patersons acquisition on October 19, 2019.