Canaccord Genuity Wealth Management

Throughout the fiscal year, we continued to invest in the growth of our wealth management businesses in all regions. Alongside our investments in talent and acquisitions, we are actively pursuing organic growth initiatives and advancing our technology and infrastructure to keep pace as investors continue to reshape their investment needs.

FISCAL 2022 Highlights

$96.1 billion in total client assets
Client assets grew by 8% year over year but decreased modestly from the third fiscal quarter high of $102 billion, reflecting lower market valuations at the end of the 12-month period.
20.6% fiscal 2022 pre-tax profit margin(1)

AN IMPORTANT CONTRIBUTOR TO FIRM-WIDE EARNINGS GROWTH AND STABILITY

The investments we have made to increase the scale of our wealth management businesses will continue to enhance our earnings foundation and long-term resilience as we navigate shifting market dynamics.

Global Wealth Management Revenue(2)

(C$ millions, fiscal years ended March 31)
2022: $720.4; 2021: $663.6; 2020: $511.4; 2019: $461.8; 2018: $370.3

Global Wealth Management Income before Income Taxes(1)(2)

(C$ millions, fiscal years ended March 31)
2022: $148.5; 2021: $135.3; 2020: $80.2; 2019: $75.4; 2018: $57.5

UK & CROWN DEPENDENCIES

Fiscal 2022 revenue in this business increased 12% year over year to $310.5 million, and the adjusted pre-tax profit margin(1) was 27.3%. With increased support from our strategic and financial partner HPS, we expanded our footprint in the UK and increased the scale of our financial planning capability through our acquisitions of the investment management business of Adam & Company and Punter Southall Wealth(3).

UK & Crown Dependencies Wealth Management Client Assets(4)

(C$ billions and £ billions, fiscal years ended March 31)
2022: $52.8, £32.1; 2021: $52.3, £30.2; 2020: $39.9, £22.7; 2019: $44.2, £25.4; 2018: $44.9, £24.8

UK & Crown Dependencies Wealth Management Income before Income Taxes(1)

(C$ millions, fiscal years ended March 31)
2022: $84.8; 2021: $65.3; 2020: $56.5; 2019: $48.5; 2018: $37.4

CANADA

Fiscal 2022 revenue in this business grew 3.5% year over year to $335.3 million, and the adjusted pre-tax profit margin(1) was 16.8%. While the anticipated reduction in new issue activity led to softer net income contributions compared to the prior fiscal year, client assets have continued to strengthen and we continue to build upon our Investment Advisor recruiting and organic growth initiatives.

Canada Wealth Management Client Assets(4)

(C$ billions, fiscal years ended March 31)
2022: $37.9; 2021: $32.2; 2020: $18.4; 2019: $20.7; 2018: $15.6

Canada Wealth Management Income before Income Taxes(1)

(C$ millions, fiscal years ended March 31)
2022: $56.3; 2021: $62.6; 2020: $22.7; 2019: $26.8; 2018: $20.2

Australia

Our Australian wealth business continues to grow client assets and related revenue, benefiting from its alignment with a leading capital markets business in the region. Fiscal 2022 revenue in this business grew 19.9% year over year to $74.6 million, and the adjusted pre-tax profit margin(1) was 9.8%. The number of Investment Advisors in this business increased by 5% year over year, reflecting strong recruiting momentum.

Australia Wealth Management Client Assets(4)

(C$ billions and A$ billions, fiscal years ended March 31)
2022: $5.3, A$5.7; 2021: $4.2, A$4.4; 2020: $2.4, A$2.8; 2019: $0.9, A$0.9; 2018: $0.8, A$0.8

Australia Wealth Management Income before Income Taxes(1)(5)

(C$ millions, fiscal years ended March 31)
2022: $7.3; 2021: $7.4; 2020: $1.0

(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) Beginning in Q3/20, amounts include Australia wealth management.

(3) Acquisition of Punter Southall Wealth completed May 31, 2022.

(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.