Canaccord Genuity Group Inc. saw declines in both net income and revenue in the second quarter ended Sept. 20 (Q2 2020) , the Toronto-based firm reported on Wednesday.
Net income attributed to common shareholders slipped to $11 million in Q2 2020 from $14 million in Q2 2019. Revenue dropped to $270 million from $300 million year-over-year.
Canaccord’s combined global wealth management operations earned revenue of $115.4 million in Q2 2020, a decrease of 0.6% year-over-year.
The firm said revenue in its North American wealth management business fell by 6.1% in Q2 2020, a result of reduced investment banking revenue from lower new issue activity compared to Q2 2019. Canaccord’s North American operations generated $49 million in revenue in Q2 2020 and reported net income of $6.6 million before taxes.
Conversely, wealth management operations in the U.K. and Europe saw a second quarter revenue increase of 3.8%. Canaccord attributes the increase to higher commissions, fees revenue and contributions from the Thomas Miller Wealth Management Limited and McCarthy Taylor Ltd. acquisitions. After intersegment allocations, and excluding significant items, Canaccord’s U.K. & Europe operations recorded net income of $15.1 million before taxes in Q2020.
“The diversification of our business mix and the benefit of increased scale in our wealth management business was evident in our second quarter, as we delivered a solid financial result despite a more challenging operating environment for capital markets activities,” said Dan Daviau, President & CEO, Canaccord Genuity Group Inc.