Canaccord Genuity Dismisses Speculation Of UK, Crown Dependencies Sale

Tom Burroughes

28 November 2024

Toronto-listed has dismissed media speculation that it intends to sell its wealth management business in the UK & Crown Dependencies.

The Financial Times reported yesterday that Canaccord Genuity is working with bankers to review its British wealth management business, with potential outcomes ranging from a sale to bringing in another investor. The report cited two unnamed sources.

“The company wishes to confirm that there is no plan to sell its wealth management business in the UK & Crown Dependencies and that it continues to have a productive working relationship with its strategic and financial partner,” Canaccord Genuity reported. “We are proud of the value that all our wealth management businesses have created and are fully committed to their continued growth.”

“The company regularly explores opportunities to strengthen the value of its business and has been an active acquirer in all geographies where it has operations. We routinely engage with external advisors to assess market conditions and opportunities across our global business,” it said.

The firm said it does not intend to comment further unless it is “necessary or appropriate.”

Earlier in November, the Canadian firm said quarterly revenue for the three months ending 30 September came in at C$428.6 million ($304.7 million), rising 27.1 per cent on a year earlier. Global wealth management revenue for the fiscal quarter rose by 15.6 per cent on a year ago to C$216.5 million.

Total client assets in the group's global wealth management business were C$110.4 billion at 30 September 2024, a year-over-year rise of 18.3 per cent.

Wealth management operations in the UK & Crown Dependencies generated second quarter revenue of $108.8 million, up by 7.7 per cent compared with the same period last year, primarily driven by higher commission and fees revenue partially offset by lower interest revenue. Measured in sterling, revenue was £61.3 million ($77.5 million) in the quarter, compared with £59.5 million, up 3.0 per cent compared with the same quarter last year.