IGM Financial (IGM) Q3 2024 earnings summary

Executive summary

• Adjusted EPS for Q3 was CAD 1.03, up 12% year-over-year, among the highest in company history.

• Total client assets reached CAD 462 billion, a 23% increase year-over-year, with all businesses achieving record-high asset levels.

• Wealth management and asset management segments drove earnings growth of 10% and 16% year-over-year, respectively.

• Wealthsimple's fair value was marked up by 46% to CAD 1.2 billion due to strong performance and a third-party transaction.

• Returned CAD 160 million to shareholders via dividends and share buybacks in Q3 2024.

Financial highlights

• Adjusted net earnings available to common shareholders rose 11% to CAD 244.1 million compared to Q3 2023.

• Mackenzie Investments reported record ending AUM of CAD 212.1 billion, up 13.8% year-over-year.

• IG Wealth Management achieved record AUM & A of CAD 136.4 billion, up 19% year-over-year.

• ChinaAMC long-term investment fund AUM grew 46% year-over-year; Northleaf AUM up 10%.

• Wealth Management adjusted net earnings up 11% year-over-year; Asset Management up 16%.

Outlook and guidance

• Expect gradual improvement in the operating environment as investor sentiment, inflation, and interest rates improve.

• Expense growth for 2024 guided at 4%, with a similar range expected for 2025, subject to market conditions.

• Continued investment in technology, advisor platforms, and mortgage/insurance businesses planned.

• LTM trailing dividend payout rate is 60% of adjusted net earnings.

• Management highlights continued execution of strategy, especially in high net worth client growth and strategic investments.