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Be the first with the news that moves the market- Cannacord Genuity (TSX:CF) says that it will cut C$20 million in fixed costs and work to ensure the survival of its clients
- While no material COVID-19 impact has been felt, the company expects that investment banking and advisory revenue will reduce
- For the nine months ending December 31, 2019, global wealth management operations contributed 59 per cent of net income
- The company has also implemented a range of remote working measures in line with current virus mitigation advice
- Cannacord Genuity (CF) is currently up 1.35 per cent, with shares trading at $3.75, with a market cap of $401.27 million
Cannacord Genuity (TSX:CF) says that it will cut C$20 million in fixed costs and work to ensure the survival of its clients.
Founded in 1950, the firm offers wealth management, investment and brokerage services, with offices in Canada, the UK, North America, Asia, Australia and the Middle East.
An early-February announcement this year revealed that Cannacord would cut roughly C$20 million in fixed cost expenses. The decision was originally designed to improve its future margins, but with the outbreak of COVID-19, the company says that it will also add to its strength in the current volatile market.
In today’s release, Cannacord also noted its strong performance over last year. For the nine months ending December 31, the company’s global wealth management arm contributed 59 per cent to total adjusted net income.
Cannacord added that the reduction in value to its assets under management have been more or less in line with the broader market performance.
While declines in investment banking and advisory revenue is to be expected, the company reaffirmed its intentions to continue with business as normal, including the closing of several transactions.
Previous and future performance aside, Cannacord has followed many other companies by implementing virus-mitigating measures across its operations.
All of the firm’s business arms have deployed remote collaboration technologies. Its full suite of resources will also be available to clients via off-site capabilities.
Dan Daviau, President and CEO of Canaccord Genuity, outlined the company’s chief concerns.
“Our collective priority is supporting our wealth management and capital markets clients through this rapidly changing market backdrop, while doing our part to protect our employees and clients and stop the spread of COVID-19 in our communities.
“We remain guided by our long-term priorities of limiting our exposure to risk, and ensuring disciplined capital management in any market backdrop,” he said.
Cannacord Genuity (CF) is currently up 1.35 per cent, with shares trading for $3.75 at 9:47am EST.
