Mr. Dan Daviau reports

CANACCORD GENUITY GROUP INC. REPORTS SECOND QUARTER FISCAL 2024 RESULTS

Canaccord Genuity Group Inc. has released its financial results for the second fiscal quarter and six months ended Sept. 30, 2023.

"Our wealth management businesses continued to deliver stable earnings contributions, which helped us to deliver a break-even quarter despite losses incurred in our capital markets segment," said Dan Daviau, president and chief executive officer of Canaccord Genuity Group. "Engagement levels amongst our corporate clients and their desire for capital remains high, and we are encouraged by increasing activity levels but remain cautious in our outlook until we see a more sustained recovery for risk capital in the market."

Second fiscal quarter and six-month fiscal year-to-date highlights:

• Second quarter revenue of $337.3-million decreased 11.4 per cent over the same period in the prior year and increased 1.8 per cent compared with first quarter fiscal 2024.
• Second quarter net income before taxes excluding significant items was $16.5-million, a decrease of 67.4 per cent compared with Q2 fiscal 2023 (on an international financial reporting standard basis). Q2 fiscal 2024 had a loss of $700,000 compared with net income before taxes of $39.0-million for Q2 fiscal 2023.
• Excluding significant items, Canaccord Genuity Group's global wealth management businesses contributed net income before taxes of $32.7-million, which was offset by losses in the global capital markets and corporate and other segments, which were primarily a reflection of reduced corporate finance activity and delayed closings on advisory transactions.
• Compensation ratios returned to levels consistent with prior periods compared with the reduced level in first quarter fiscal 2024, which was because of changes in the fair value of stock-based compensation awards during that period.
• Diluted earnings per common share excluding significant items for the second fiscal quarter were nil per share (diluted loss per common share of 20 cents on an IFRS basis).
• Diluted earnings per common share excluding significant items for the first six months of fiscal 2024 were seven cents (diluted loss per common share of 36 cents on an IFRS basis).
• Total client assets in its global wealth management business were $93.3-billion at Sept. 30, 2023, a year-over-year increase of 5.3 per cent and reflecting year-over-year increases of 4.7 per cent in Canada, 5.1 per cent in the United Kingdom and Crown dependencies, and 12.1 per cent in Australia.
• Global wealth management revenue for the second fiscal quarter increased by 10.6 per cent year over year to $187.2-million.
• Global capital market revenue for the second fiscal quarter decreased by 29.6 per cent year over year, reflecting continued weakness in the new issue environment and the more challenging environment for merger-and-acquisition completions against a strong pipeline.
• On Nov. 9, 2023, the company, through its wealth management business in the U.K. and Crown dependencies, announced that it has entered into an agreement to acquire Intelligent Capital, a financial planning business based in Glasgow, Scotland.
• The second quarter common share dividend was 8.5 cents per share.

Common and preferred share dividends

On Nov. 14, 2023, the board of directors approved a dividend of 8.5 cents per common share, payable on Dec. 15, 2023, with a record date of Dec. 1, 2023.

On Nov. 14, 2023, the board approved a cash dividend of 25.175 cents per Series A preferred share payable on Jan. 2, 2024, to Series A preferred shareholders of record as at Dec. 22, 2023.

On Nov. 14, 2023, the board approved a cash dividend of 42.731 cents per Series C preferred share payable on Jan. 2, 2024, to Series C preferred shareholders of record as at Dec. 22, 2023.

Access to quarterly results information

Interested parties are invited to listen to Canaccord Genuity Group's second fiscal quarter results conference call by live webcast or a toll-free number. The conference call is scheduled for Wednesday, Nov. 15, 2023, at 8 a.m. Eastern Time, 1 p.m. United Kingdom time and midnight Australian Eastern Daylight Time.

The conference call may be viewed live and will also be archived on a listen-only basis.

Analysts and institutional investors can call in by telephone at:

• 416-764-8609 (within Toronto);
• 888-390-0605 (toll-free in North America outside of Toronto);
• 0-800-652-2435 (toll-free from the United Kingdom);
• 1-800-076-068 (toll-free from Australia).

Please ask to participate in the Canaccord Genuity Group Q2 fiscal 2024 results call. If a passcode is requested, please use 98079942.

A replay of the conference call will be made available from approximately two hours after the live call on Nov. 15, 2023, until Dec. 15, 2023, at 416-764-8677 or 1-888-390-0541 by entering passcode 079942 followed by the number key.

About Canaccord Genuity Group Inc.

Through its principal subsidiaries, Canaccord Genuity Group is a leading, independent, full-service financial service firm, with operations in two principal segments of the securities industry: wealth management and capital markets. Since its establishment in 1950, the company has been driven by an unwavering commitment to building lasting client relationships. It achieves this by generating value for its individual, institutional and corporate clients through comprehensive investment solutions, brokerage services and investment banking services. The company has wealth management offices located in Canada, the United Kingdom, Guernsey, Jersey, the Isle of Man and Australia. The company's international capital market division operates in North America, the United Kingdom and Europe, Asia, and Australia.

Canaccord Genuity Group is publicly traded under the symbol CF on the Toronto Stock Exchange.

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