Canaccord Genuity Capital Markets

We continued to experience a constructive backdrop for capital raising activities in our core sectors and geographies, despite the broadly anticipated declines from the previous year’s record levels. When market-wide new issue activity began to decline, our M&A teams rose to the occasion and delivered a record performance, reflecting the confidence of the executives, financial sponsors and boards of the growing companies that we advise.

FISCAL 2022 Highlights

$61.2 billion proceeds raised in fiscal 2022
By maintaining a strong focus in key growth and value sectors of the global economy, we are capturing new market share and are ranked among the league table leaders in each of our geographies.
153% year-over-year increase in advisory revenue
Growing contributions from advisory activities helps to offset the inherent volatility of our investment banking segment. Total advisory revenue in fiscal 2022 increased to a new record of $489 million.

Global Capital Markets Revenue

(C$ millions, fiscal years ended March 31)
2022: $1,303.1; 2021: $1,312.2; 2020: $689.5; 2019: $704.4; 2018: $637.5

Global Capital Markets Income before Income Taxes(1)

(C$ millions, fiscal years ended March 31)
2022: $324.6; 2021: $324.9; 2020: $59.8; 2019: $80.4; 2018: $62.5

Capital markets revenue and earnings reflect diverse contributions from geographies and practice areas. By increasing alignment across regions and capabilities, we can deliver stronger outcomes for our clients and improve our earnings stability through market cycles.

Capital Markets Revenue by Geography

(Fiscal years ended March 31)
For 2022; Canada: 26%; United States: 51%; UK, Europe and Dubai: 9%; Australia: 14%; For 2021; Canada: 34%; United States: 45%; UK, Europe and Dubai: 7%; Australia: 14%; For 2020; Canada: 30%; United States: 51%; UK, Europe and Dubai: 14%; Australia: 5%; For 2019; Canada: 37%; United States: 43%; UK, Europe and Dubai: 15%; Australia: 5%; For 2018; Canada: 34%; United States: 37%; UK, Europe and Dubai: 20%; Australia: 9%

Capital Markets Revenue by Activity

(Fiscal years ended March 31)
For 2022; Advisory: 38%; Investment Banking: 36%; Principal Trading: 12%; Commissions and Fees: 13%; Interest and Other: 1%; For 2021; Advisory: 15%; Investment Banking: 49%; Principal Trading: 19%; Commissions and Fees: 16%; Interest and Other: 1%; For 2020; Advisory: 30%; Investment Banking: 28%; Principal Trading: 16%; Commissions and Fees: 22%; Interest and Other: 4%; For 2019; Advisory: 20%; Investment Banking: 35%; Principal Trading: 18%; Commissions and Fees: 25%; Interest and Other: 2%; For 2018; Advisory: 19%; Investment Banking: 37%; Principal Trading: 18%; Commissions and Fees: 24%; Interest and Other: 2%;

Notwithstanding the onset of broad market headwinds in the second half of fiscal 2022, we continued to execute for our clients while building a solid pipeline of opportunities for the coming year.

Our enhanced business mix and strong cross-border collaboration supported a productive fiscal year for our global capital markets division.

Our global capital markets businesses earned revenue of $1.3 billion, which was in line with the record set in the prior year, albeit with a very different revenue mix. Almost 40% of fiscal 2022 capital markets revenue was contributed by our advisory segment, and a substantial portion of this was contributed by our US business, with meaningful year-over-year increases from our Canadian and UK businesses. Notwithstanding the broad market decline in new issue activity that impacted Canada, the US and the UK in the latter half of the fiscal year, investment banking revenue in these regions remained strong by historical standards and our Australian business achieved record results, bolstered by an increase in mining sector financings. With support from a globally unified network of sales, trading and research professionals, we are continually improving the client experience and capturing new market share.

Across our capital markets businesses, we continue to pursue opportunities for expanding our product capabilities and developing ancillary products intended to complement our mid-market offering and enhance our long-term earnings potential.

We have materially added to the strength of our advisory segment with our acquisition of Sawaya Partners.

This acquisition builds on our track record of increasing contributions from higher margin advisory activities, and materially enhances our consumer and health & wellness verticals. Integration efforts have been positive and productive, and we are looking forward to further expanding our client offering and reach with this team.

We see numerous opportunities to expand our capabilities and continue to grow our market share.

While new market realities point to a difficult period ahead for our industry, we see no reason to retrench on our commitment of fully supporting growth companies and investors. Regardless of the market backdrop, we are driven to identify the clients who need us most and do everything we can to support them.

(1) These figures exclude significant items. Figures that exclude significant items are non-IFRS measures. See Non-IFRS Measures on page 14 and a reconciliation of non-IFRS measures that exclude significant items to the applicable IFRS measures on page 25.

(2) 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.