Canaccord Genuity Wealth Management’s UK & Europe arm saw its assets under management bounce back in the three months to the end of June after posting a 14.3% increase on the previous quarter.
But the firm reported client assets down 5.6% compared with the same quarter last year. The wealth manager’s assets ended the period at £25.9bn, down from £27.4bn at the end of the same quarter in 2019.
The firm reported earning revenue of £39.5m, a decrease of 5.6% compared to the same quarter of the previous fiscal year.
It said this was mainly driven by a decline in fee-based revenue resulting from slightly lower market values for client assets due to current market conditions and reduced interest income due to lower rates.
Excluding significant items,it recorded net income of £9.3m before taxes for the period, an increase of 14.8% over the same period of the prior fiscal year.
CGWM UK and Europe chief executive David Esfandi (pictured) said: “Our performance during Q1 fiscal 2021 was very positive, with strengthening pre-tax profit margins and assets under management rebounding to £25.9bn. Our drive to reassure clients during the uncertainty of lockdown, along with our seamless operational capabilities as we transitioned to home working, have contributed to a strong start to the year.
“The acceleration of digital change, driven by Covid-19, underscores the importance of continually investing time and energy into enhancing our client experience. While we continue to face a challenging economic backdrop, we remain prudent and retain our focus on margin improvement and the long-term wellbeing of our clients.”
The firm’s UK and Europe capital markets business posted a 4.8% increase in revenue compared with the previous year. It also said despite a softer environment for advisory activities in the region, investment banking and principal trading revenues increased by 205.6% and 52.1% respectively.
Pre-tax profit was £571,675 for the three months ended 30 June, compared to a loss of £114,349 in the same period last year.
Pre-tax income excluding significant items increased by 14.2% compared to the same quarter in 2019 due to a decrease in overhead expenses, it said. On an adjusted basis, the pre-tax profit margin was 23.6%, an increase of 4.1 percentage points year over year.
