of record revenue
of record net income
of net income excluding acquisition-related items(3)
(C$ millions)
(C$ millions)
(C$ millions)
(1) As of March 31, 2011
(2) Advisory Teams are normally comprised of one or more Investment Advisors (IAs) and their assistants and associates, who together manage a shared set of client accounts. Advisory Teams that are led by, or only include, an IA who has been licenced for less than three years are not included in our Advisory Team count, as it typically takes a new IA approximately three years to build an average-sized book.
(3) See non-GAAP measures in Management's Discussion and Analysis.
|
(C$ thousands, except per share, employee and % amounts) |
For the years ended March 31 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2011 | 2010 | 2011/2010 Change | ||||||||
| CANACCORD FINANCIAL INC. | ||||||||||
| Revenue | ||||||||||
| Commission | $ | 294,650 | $ | 235,606 | $ | 59,044 | 25.1% | |||
| Investment banking | 327,499 | 215,237 | 112,262 | 52.2% | ||||||
| Advisory fees | 84,914 | 39,200 | 45,714 | 116.6% | ||||||
| Principal trading | 43,644 | 45,982 | (2,338) | (5.1)% | ||||||
| Interest | 24,040 | 12,965 | 11,075 | 85.4% | ||||||
| Other | 28,884 | 28,547 | 337 | 1.2% | ||||||
| Total revenue | $ | 803,631 | $ | 577,537 | $ | 226,094 | 39.1% | |||
| Expenses | ||||||||||
| Incentive compensation | 391,050 | 299,084 | 91,966 | 30.7% | ||||||
| Salaries and benefits | 64,420 | 59,415 | 5,005 | 8.4% | ||||||
| Other overhead expenses(3) | 194,975 | 162,397 | 32,578 | 20.1% | ||||||
| Acquisition-related costs | 12,740 | 5,000 | 7,740 | 154.8% | ||||||
| Total expenses | $ | 663,185 | $ | 525,896 | $ | 137,289 | 26.1% | |||
| Income before income taxes | 140,446 | 51,641 | 88,805 | 172.0% | ||||||
| Net income | $ | 98,234 | $ | 38,497 | $ | 59,737 | 155.2% | |||
| Basic earnings per share | $ | 1.35 | $ | 0.79 | $ | 0.56 | 70.9% | |||
| Diluted earnings per share | $ | 1.20 | $ | 0.69 | $ | 0.51 | 73.9% | |||
| Return on average common equity (ROE) | 14.0% | 9.8% | 4.2 p.p. | |||||||
| Dividends per share | $ | 0.275 | $ | 0.15 | $ | 0.125 | 83.3% | |||
| Book value per diluted common share – period end | 8.79 | 6.96 | 1.83 | 26.3% | ||||||
| Excluding acquisition-related items(4) | ||||||||||
| Total expenses | $ | 645,319 | $ | 520,896 | $ | 124,423 | 23.9% | |||
| Net income | 112,617 | 42,043 | 70,574 | 167.9% | ||||||
| Basic earnings per share | $ | 1.54 | $ | 0.86 | $ | 0.68 | 79.1% | |||
| Diluted earnings per share | $ | 1.38 | $ | 0.76 | $ | 0.62 | 81.6% | |||
| Balance sheet data | ||||||||||
| Total assets | $ | 5,110,372 | $ | 3,123,848 | $ | 1,986,524 | 63.6% | |||
| Total liabilities | 4,353,849 | 2,722,103 | 1,631,746 | 59.9% | ||||||
| Total shareholders' equity | 756,523 | 401,745 | 354,778 | 88.3% | ||||||
| Number of employees | 1,684 | 1,549 | 135 | 8.7% | ||||||
(1) Data is considered to be GAAP except for ROE, book value per diluted common share, figures excluding acquisition-related items and number of employees.
(2) Data includes the results of Genuity since the closing date of April 23, 2010. Results of TBG since the closing date of January 17, 2011 are also included.
(3) Consists of trading costs, premises and equipment, communication and technology, interest, general and administrative, amortization of tangible and intangible assets, and development costs.
(4) Figures excluding acquisition-related items are non-GAAP measures. See non-GAAP measures on page 23 and Selected Financial Information Excluding Significant and Acquisition-Related Items on page 32.
p.p.: percentage points
n.m.: not meaningful
(C$ millions)
(C$ millions, excluding acquisition-related and significant items
(C$, excluding acquisition-related and significant items
| (Calendar 2010, in US$ billions) | |||
| 1 | JPMorgan Chase | $ | 1.61 |
| 2 | Goldman Sachs | $ | 1.57 |
| 3 | Morgan Stanley | $ | 1.51 |
| 4 | Bank of America Merrill Lynch | $ | 1.08 |
| 5 | UBS | $ | 1.04 |
| 6 | Nomura Holdings | $ | 0.94 |
| 7 | Credit Suisse | $ | 0.92 |
| 8 | Deutsche Bank | $ | 0.90 |
| 9 | Citigroup | $ | 0.78 |
| 10 | Barclays Capital | $ | 0.56 |
| 11 | Wells Fargo | $ | 0.32 |
| 12 | RBC Capital Markets | $ | 0.26 |
| 13 | Mizuho Financial Group | $ | 0.25 |
| 14 | Macquarie | $ | 0.20 |
| 15 | Jefferies | $ | 0.18 |
| 16 | GMP Securities | $ | 0.15 |
| 17 | Canaccord Genuity | $ | 0.14 |
| 18 | BMO Capital Markets | $ | 0.14 |
| 19 | CIBC World Markets | $ | 0.14 |
| 20 | HSBC Holdings | $ | 0.12 |
Source: Bloomberg Markets
(1) Normalized ROE. Excludes acquisition-related expense items.
Canaccord Financial Inc., through its principal subsidiaries, is a leading independent, full-service financial services firm, with operations in two principal segments of the securities industry: global capital markets and private wealth management. Since 1950, Canaccord has been driven by an unwavering commitment to building lasting client relationships. We achieve this by generating value for our institutional, corporate, and individual clients through comprehensive investment solutions, brokerage services and investment banking services. Canaccord has 46 offices worldwide, including 32 Wealth Management offices across Canada. Canaccord Genuity, our capital markets division, serves clients globally from offices in Canada, the United States, the United Kingdom, China and Barbados.
Canaccord Financial Inc. is publicly traded under the symbol CF on the Toronto Stock Exchange and the symbol CF. on AIM, a market operated by the London Stock Exchange.
Corporate Branches
Independent Wealth Management
Highlights of the 138 transactions Canaccord Genuity led or co-led
Highlights of the 39 transactions on which Canaccord Genuity was a principal advisor
(1) Compared to fiscal 2010.
Canaccord Genuity’s ability to generate in-depth and timely ideas is integral to our success. Moreover, our clients depend on Canaccord Genuity because our research is independent and global. Over 100 research professionals follow more than 750 companies in 16 focus sectors from offices across North America, the UK and China.
The quality of our research coverage was clear in the 2010 Brendan Wood International Canadian Capital Markets Survey of equity analysts. Canaccord Genuity was ranked the top independent provider of equity research in Canada, first among all Canadian investment banks for the quality of our investment ideas and first for the quality of small-cap research. Companies also voted Canaccord Genuity analysts first for who understands their business best. And five of our Canadian analysts also received top-three rankings for their specific sector coverage. We’re having similar success in the US and UK. Three of Canaccord Genuity’s US-based analysts received top-two rankings in their respective sectors by the Wall Street Journal. And in the UK our analysts have received wide-ranging recognition from the Financial Times and StarMine, including best metals and mining stock picker, best technology stock picker, best earnings estimator for financial services, and second place for selecting stocks in all sectors.(1)
We are continually adding to the value we can offer institutional and individual clients through our global perspective and proprietary investment opinions. Our expanded Canaccord Genuity team now provides top-ranked research coverage of the Transportation, Financial and Telecommunications sectors in addition to our well-established expertise in Mining, Energy, Sustainability and Life Sciences. During fiscal 2011, we also bolstered our research coverage of wireless and internet technologies with the addition of several highly ranked analysts in the US and Canada.
Canaccord Genuity’s 30th Annual Growth Conference was held in Boston on August 9–11, 2010, and was our most successful conference ever. This premier event provides institutional investors with highly actionable opportunities from nearly 300 small to mid-cap growth companies from the US, Canada and the UK. Our teams facilitated nearly 600 investment banking meetings and more than 3,000 individual meetings with institutional clients, which speaks to the quality of our coverage and our ability to identify targeted opportunities for investors.
(1) Financial Times and StarMine. Top Analysts of 2010 for the United Kingdom and Ireland.
The integration of the Canaccord Genuity sales and trading desks, the strength of our combined relationships with institutional investors and several years of investment in building our capabilities in Canada, the US and the UK drove strong sales and trading market share gains during fiscal 2011.
In Canada, the Canaccord Genuity sales and trading team increased their block trading market share on the TSX by 40% to 5.1% of total trading volume. And on the TSX Venture, a traditionally strong market for Canaccord Genuity, our team captured 13.4% of trading volume, finishing the year with 15.3% market share during our fiscal fourth quarter. We’re also making great advances in the US and UK. Our US trading desks grew their agency business by 10% during a year when many industry participants experienced lower trading volumes. And in the UK, Canaccord Genuity holds the largest market share on AIM of all investment banks, averaging 6% based on total trading value during fiscal 2011.
Whether we work with long-only accounts or alternative asset managers, Canaccord Genuity is passionate about ensuring that institutional clients receive high-quality investment and trading ideas. Our sales team is specialized by both geography and industry, and we are active participants on seven global exchanges from our eight international trading floors. Our skilled team of 115 sales and trading professionals facilitate timely execution of both high-volume, large-capitalization names and less liquid, emerging companies, managing the potential impact of each transaction.
Globally, we make a market in over 2,300 stocks on seven exchanges, with expertise that ranges from NASDAQ listings in the US to investment trusts in the UK. Our ability to leverage Canaccord Wealth Management’s strong distribution network also provides greater distribution opportunities for our institutional and corporate clients.