CI Financial Reports Financial Results for the First Quarter of 2025
-- Diluted EPS of $(0.06), adjusted diluted EPS 1 of $0.96
-- EBITDA of $158.3 million, adjusted EBITDA attributable to shareholders 1
of $273.9 million
-- EBITDA per share of $1.09 and adjusted EBITDA attributable to
shareholders1 per share of $1.88
-- Operating cash flow of $148.4 million, free cash flow1 of $200.8 million
-- Operating cash flow per share of $1.02, free cash flow per share of $1.38
-- Total assets of $546.1 billion, up $71.9 billion or 15.2% year over year
-- Paid $28.8 million in dividends at $0.20 per share
All financial amounts in Canadian dollars as at March 31, 2025, unless stated otherwise.
TORONTO--(BUSINESS WIRE)--May 14, 2025--
CI Financial Corp. ("CI") (TSX: CIX) today released financial results for the quarter ended March 31, 2025.
Financial highlights
First quarter net loss attributable to shareholders was $8.5 million compared to a net loss of $405.4 million in the fourth quarter of 2024. Excluding non-operating items, adjusted net income attributable to shareholders(1) was $140.7 million in the fourth quarter, down 8.6% from $153.9 million in the previous quarter.
First quarter total net revenues were $787.7 million, up from $677.8 million in the fourth quarter of 2024. Excluding non-operating items, adjusted total net revenues(1) were $792.4 million, down 0.9% from $799.5 million. U.S. wealth management revenues increased due to acquisitions during the quarter, which were partially offset by lower asset management fees. Asset management fees were higher in the fourth quarter due to performance fees, which are typically recorded in the fourth quarter.
First quarter total expenses decreased to $764.3 million from $1,046.7 million in the fourth quarter of 2024. Excluding non-operating items, adjusted total expenses(1) were $549.7 million, up 2.9% from $534.0 million in the previous quarter, primarily due to higher SG&A expenses as a result of acquisitions, and increased depreciation and other amortization.
Corient acquisitions
During the first quarter, Corient completed the acquisitions of two U.S. registered investment advisor businesses -- the multi-family office of Geller & Co. of New York, and Rootstock Investment Management, LLC of Pennsylvania -- adding approximately US$11 billion in client assets.
Capital allocation
In the first quarter of 2025, CI paid $28.8 million in dividends at a rate of $0.20 per share. CI also paid a quarterly dividend of $0.20 per share on April 15, 2025 to shareholders of record as of March 31, 2025.
In March, CI announced a debenture offering with a principal amount of $500 million maturing on April 3, 2028. The offering closed on April 1, 2025.
Mubadala Capital transaction
As previously announced, CI has entered into a definitive agreement with an affiliate of Mubadala Capital to take CI private by way of a plan of arrangement under the Business Corporations Act (Ontario) (the "Arrangement"), which was overwhelmingly approved by CI shareholders on February 12, 2025, and approved by the Ontario Superior Court of Justice (Commercial List) on February 18, 2025. Completion of the Arrangement remains subject to certain closing conditions, including the receipt of certain regulatory approvals. All regulatory approval requests have been submitted and are proceeding in the normal course. CI expects that the transaction will close in the third quarter of 2025.
As a result of the pending transaction, CI will not be holding a conference call to discuss its earnings.
Annual meeting
Given the pending closing of the transaction, CI has obtained an exemption from the Toronto Stock Exchange's requirement to hold its annual meeting of shareholders on or before June 30, 2025. CI does not expect to hold another annual meeting of shareholders prior to the closing of the Arrangement.
Operating and financial data highlights
As of and for the quarters ended
----------------------
[millions of dollars, Mar. 31, Dec. 31, Sep. 30, Jun. 30, Mar. 31,
except share amounts] 2025 2024 2024 2024 2024
---------------------- ----------- ----------- ----------- ----------- -----------
Total AUM and Client
Assets:
Asset Management AUM
(2) 134,994 137,819 135,395 130,063 130,132
Canada Wealth
Management assets 101,947 102,032 100,128 95,551 93,726
Canada custody (3) 35,624 34,697 31,886 29,350 28,011
U.S. Wealth Management
assets (4) 273,573 254,871 250,646 234,062 222,347
Total assets 546,138 529,420 518,054 489,026 474,216
Asset Management Net
Inflows:
Retail (334) 1,921 41 (332) (1,320)
Institutional (210) 105 (24) (43) 4
Australia 86 (274) 213 (24) (92)
Closed Business (188) (212) (160) (216) (212)
Total Asset Management
Segment (645) 1,540 70 (616) (1,620)
U.S. Asset Management
(5) 311 658 147 740 78
IFRS Results
Net income
attributable to
shareholders (8.5) (405.4) (27.6) 176.4 (154.4)
Diluted earnings per
share (0.06) (2.85) (0.19) 1.15 (1.00)
Pretax income 23.4 (368.9) 7.3 231.3 (122.6)
Pretax margin 3.0% (54.4)% 0.9% 23.5% (19.0)%
Operating cash flow
before the change in
operating assets and
liabilities 182.3 1.8 166.3 95.9 88.3
Adjusted Results (1)
Adjusted net income 140.7 153.9 141.2 135.5 132.8
Adjusted diluted
earnings per share 0.96 1.06 0.97 0.90 0.86
Adjusted EBITDA 324.9 340.3 316.8 293.4 289.5
Adjusted EBITDA margin 41.0% 42.6% 42.0% 40.1% 41.4%
Adjusted EBITDA
attributable to
shareholders 273.9 292.7 270.5 253.2 246.1
Free cash flow 200.8 179.9 192.3 151.7 156.2
Average shares
outstanding 143,373,011 142,254,436 144,175,387 149,248,861 153,821,117
Adjusted average
diluted shares
outstanding 145,814,512 144,852,964 146,222,481 150,662,154 155,018,911
Ending shares
outstanding 143,380,401 143,335,143 143,489,243 149,075,523 153,821,117
Total debt 4,245 4,047 3,741 3,642 3,608
Net debt 4,100 3,884 3,602 3,510 3,480
Net debt to adjusted
EBITDA 3.7 3.3 3.3 3.5 3.5
1. Free cash flow, net debt, adjusted net income, adjusted earnings per
share, adjusted diluted earnings per share, adjusted EBITDA, adjusted net
revenues and adjusted expenses are not standardized earnings measures
prescribed by IFRS. For further information, see "Non-IFRS Measures" note
below.
2. Includes $35.5 billion, $35.4 billion, $36.0 billion, $34.1 billion, and
$34.4 billion of assets managed by CI and held by clients of advisors
with CI Assante Wealth Management (CI Assante), CI Private Counsel (CIPC)
and Aligned Capital Partners (Aligned Capital) as at March 31, 2025,
December 31, 2024, September 30, 2024, June 30, 2024, and March 31, 2024,
respectively.
3. Includes $30.5 billion, $29.8 billion, $27.5 billion, $25.6 billion, and
$24.5 billion of assets advised by CI and held by clients of advisors
with CI Assante, CIPC, CI Direct Investing and Aligned Capital as at
March 31, 2025, December 31, 2024, September 30, 2024, June 30, 2024, and
March 31, 2024, respectively.
4. Month-end USD/CAD exchange rates of 1.4391, 1.4375, 1.3524, 1.3680, and
1.3546 for March 2025, December 2024, September 2024, June 2024, and
March 2024.
5. Includes 100% of flows from CI's minority investments in Columbia Pacific
Advisors, OCM Capital Partners (up to and including October 2024), The
Cabana Group and GLASfunds Holdings.
About CI Financial
CI Financial Corp. is a diversified global asset and wealth management company operating primarily in Canada, the United States and Australia. Founded in 1965, CI has developed world-class portfolio management talent, extensive capabilities in all aspects of wealth planning, and a comprehensive product suite. CI operates in three segments:
-- Asset Management, which includes CI Global Asset Management, which
operates in Canada, and GSFM, which operates in Australia.
-- Canadian Wealth Management, operating as CI Wealth, which includes CI
Assante Wealth Management, Aligned Capital Partners, CI Assante Private
Client, CI Private Wealth, Northwood Family Office, CI Coriel Capital, CI
Direct Investing, CI Direct Trading and CI Investment Services.
-- U.S. Wealth Management, which includes Corient Private Wealth, an
integrated wealth management firm providing comprehensive solutions to
ultra-high-net-worth and high-net-worth clients across the United States.
CI is headquartered in Toronto and listed on the Toronto Stock Exchange (TSX: CIX). To learn more, visit CI's website or LinkedIn page.
Forward-Looking Information
This press release contains "forward-looking information" within the meaning of applicable Canadian securities laws. Forward-looking information may relate to our future outlook and anticipated events or results and may include information regarding our financial position, business strategy, growth strategy, budgets, operations, financial results, taxes, dividend policy, plans and objectives. Particularly, information regarding our expectations of future results, performance, achievements, prospects or opportunities, including the timing for completion of the Arrangement, is forward-looking information. In some cases, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "targets", "expects" or "does not expect", "is expected", "an opportunity exists", "budget", "scheduled", "estimates", "outlook", "forecasts", "projection", "prospects", "strategy", "intends", "anticipates", "does not anticipate", "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might", "will", "will be taken", "occur" or "be achieved". In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management's expectations, estimates and projections regarding future events or circumstances.
Undue reliance should not be placed on forward-looking information. The forward-looking information in this press release is based on our opinions, estimates and assumptions in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors that we currently believe are appropriate and reasonable in the circumstances. Despite a careful process to prepare and review the forward-looking information, there can be no assurance that the underlying opinions, estimates and assumptions will prove to be correct. Further, forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to, those described in this press release. The belief that the investment fund industry and wealth management industry will remain stable and that interest rates will remain relatively stable are material factors made in preparing the forward-looking information and management's expectations contained in this press release and that may cause actual results to differ materially from the forward-looking information disclosed in this press release. In addition, factors that could cause actual results to differ materially from expectations include, among other things, the possibility that the Arrangement may not be completed, the timing of closing of the Arrangement, the negative impact that the failure to complete the Arrangement for any reason could have on the price of the shares or on the business of the Corporation, general economic and market conditions, including interest and foreign exchange rates, global financial markets, the impact of pandemics or epidemics, changes in government regulations or in tax laws, industry competition, technological developments and other factors described or discussed in CI's disclosure materials filed with applicable securities regulatory authorities from time to time. Additional information about the risks and uncertainties of the Corporation's business and material risk factors or assumptions on which information contained in forward--looking information is based is provided in the Corporation's disclosure materials, including the Corporation's most recently filed annual information form and any subsequently filed interim management's discussion and analysis, which are available under our profile on SEDAR+ at www.sedarplus.ca.
There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward looking information, which speaks only as of the date made. The forward-looking information contained in this press release represents our expectations as of the date of this news release and is subject to change after such date. CI disclaims any intention or obligation or undertaking to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable law.
This communication is provided as a general source of information and should not be considered personal, legal, accounting, tax or investment advice, or construed as an endorsement or recommendation of any entity or security discussed. Individuals should seek the advice of professionals, as appropriate, regarding any particular investment. Investors should consult their professional advisors prior to implementing any changes to their investment strategies.
CI Global Asset Management is a registered business name of CI Investments Inc., a wholly owned subsidiary of CI.
CONSOLIDATED STATEMENT OF INCOME
For the three-month period ended March 31 2025 2024
[in thousands of Canadian dollars, except per
share amounts] $ $
-------------------------------------------------- --------- ---------
REVENUE
Canada asset management fees 383,367 371,630
Trailer fees and deferred sales commissions (114,825) (113,610)
-------------------------------------------------- --------- ---------
Net asset management fees 268,542 258,020
Canada wealth management fees 181,954 159,687
U.S. wealth management fees 293,051 242,083
Other revenues 48,215 35,432
Foreign exchange gains (losses) (3,185) (54,586)
Other gains (833) 5,047
-------------------------------------------------- --------- ---------
Total net revenues 787,744 645,683
-------------------------------------------------- --------- ---------
EXPENSES
Selling, general and administrative 414,187 431,998
Advisor and dealer fees 137,802 120,793
Interest and lease finance 62,698 48,286
Amortization and depreciation 20,012 17,233
Amortization of intangible assets from
acquisitions 50,637 35,012
Transaction, integration, restructuring and legal 19,471 23,432
Change in fair value of contingent consideration 5,920 32,132
Change in fair value of Preferred Share Liability 47,776 52,286
Other 5,808 7,120
-------------------------------------------------- --------- ---------
Total expenses 764,311 768,292
-------------------------------------------------- --------- ---------
Income (loss) before income taxes 23,433 (122,609)
-------------------------------------------------- --------- ---------
Provision for (recovery of) income taxes
Current 30,909 37,411
Deferred 1,146 (5,481)
-------------------------------------------------- --------- ---------
32,055 31,930
------------------------------------------------- --------- ---------
Net income (loss) for the period (8,622) (154,539)
-------------------------------------------------- --------- ---------
Net income (loss) attributable to non-controlling
interests (88) (103)
-------------------------------------------------- --------- ---------
Net income (loss) attributable to shareholders (8,534) (154,436)
-------------------------------------------------- --------- ---------
Basic earnings (loss) per share attributable to
shareholders (0.06) (1.00)
-------------------------------------------------- --------- ---------
Diluted earnings (loss) per share attributable to
shareholders (0.06) (1.00)
-------------------------------------------------- --------- ---------
Other comprehensive income (loss), net of tax
Exchange differences on translation of foreign
operations 1,977 31,428
-------------------------------------------------- --------- ---------
Total other comprehensive income (loss), net of
tax 1,977 31,428
-------------------------------------------------- --------- ---------
Comprehensive loss for the period (6,645) (123,111)
-------------------------------------------------- --------- ---------
Comprehensive income (loss) attributable to
non-controlling interests (88) 324
-------------------------------------------------- --------- ---------
Comprehensive loss attributable to shareholders (6,557) (123,435)
-------------------------------------------------- --------- ---------
As at As at
CONSOLIDATED BALANCE SHEET March 31, 2025 December 31, 2024
[in thousands of Canadian dollars] $ $
--------------------------------------- -------------- -----------------
ASSETS
Current
Cash and cash equivalents 146,696 167,611
Client and trust funds on deposit 1,285,392 1,082,126
Investments 45,835 36,594
Accounts receivable and prepaid
expenses 431,122 433,001
Income taxes receivable 56,838 49,587
--------------------------------------- -------------- -----------------
Total current assets 1,965,883 1,768,919
--------------------------------------- -------------- -----------------
Capital assets, net 176,336 170,168
Right-of-use assets 264,212 237,944
Intangibles and goodwill 8,389,576 8,086,266
Deferred income tax assets 106,820 107,106
Other assets 389,473 394,355
--------------------------------------- -------------- -----------------
Total assets 11,292,300 10,764,758
--------------------------------------- -------------- -----------------
LIABILITIES AND EQUITY
Current
Accounts payable and accrued
liabilities 509,104 527,652
Current portion of provisions and other
financial liabilities 235,267 209,258
Dividends payable 28,676 57,334
Client and trust funds payable 1,286,490 1,076,242
Income taxes payable 10,245 17,004
Redeemable unit liabilities 1,469,646 1,464,371
Preferred Share Liability 2,094,940 2,044,888
Current portion of long-term debt 1,083,293 889,975
Current portion of lease liabilities 32,231 30,483
--------------------------------------- -------------- -----------------
Total current liabilities 6,749,892 6,317,207
--------------------------------------- -------------- -----------------
Long-term debt 3,161,743 3,157,257
Provisions and other financial
liabilities 120,495 54,224
Other long-term payable 27,361 29,189
Deferred income tax liabilities 482,076 480,122
Lease liabilities 345,736 316,233
--------------------------------------- -------------- -----------------
Total liabilities 10,887,303 10,354,232
--------------------------------------- -------------- -----------------
Equity
Share capital 1,375,134 1,373,814
Contributed surplus 14,105 14,124
Deficit (1,114,368) (1,105,649)
Accumulated other comprehensive income 128,858 126,881
--------------------------------------- -------------- -----------------
Total equity attributable to the
shareholders of the Company 403,729 409,170
--------------------------------------- -------------- -----------------
Non-controlling interests 1,268 1,356
--------------------------------------- -------------- -----------------
Total equity 404,997 410,526
--------------------------------------- -------------- -----------------
Total liabilities and equity 11,292,300 10,764,759
--------------------------------------- -------------- -----------------
CONSOLIDATED STATEMENT OF CASH FLOWS
For the three-month period ended March 31 2025 2024
[in thousands of Canadian dollars] $ $
---------------------------------------------------- --------- ---------
OPERATING ACTIVITIES (*)
Net income (loss) for the year (8,622) (154,539)
Add (deduct) items not involving cash
Other (gains) losses 833 (5,047)
Change in fair value of contingent consideration 5,920 32,132
Change in fair value of Preferred Share Liability 47,776 52,286
Contingent and deferred consideration recorded as
compensation 327 763
Amortization of loan guarantees (356) (574)
Recognition of non-cash vesting of redeemable
unit liabilities 35,950 109,860
Equity-based compensation 26,905 5,072
Equity accounted income 244 188
Amortization of equity accounted investments 1,478 1,410
Amortization and depreciation 20,012 17,233
Amortization of intangible assets from
acquisitions 50,637 35,012
Deferred income taxes 1,146 (5,481)
---------------------------------------------------- --------- ---------
Cash provided by operating activities before net
change in operating assets and liabilities 182,250 88,315
Net change in operating assets and liabilities (33,888) 31,393
---------------------------------------------------- --------- ---------
Cash provided by operating activities 148,362 119,708
---------------------------------------------------- --------- ---------
INVESTING ACTIVITIES
Purchase of marketable securities (9,630) (630)
Proceeds on sale of marketable securities 18 2,711
Additions to capital assets (11,265) (31,926)
Decrease (increase) in other assets (1,379) (39,364)
Net cash paid on acquisition (171,567) (691)
Additions to intangibles (309) (711)
Cash paid to settle contingent liabilities (41,586) (51,195)
---------------------------------------------------- --------- ---------
Cash used in investing activities (235,718) (121,806)
---------------------------------------------------- --------- ---------
FINANCING ACTIVITIES
Repayment of long-term debt -- (375,000)
Issuance (repayment) of long-term debt 193,000 420,000
Repurchase of share capital -- (115)
Issuance of share capital 18 --
Payment of lease liabilities (11,654) (3,349)
Dividends paid to shareholders (28,843) (31,248)
Redeemable share units (86,080) (19,071)
---------------------------------------------------- --------- ---------
Cash provided by financing activities 66,441 (8,783)
---------------------------------------------------- --------- ---------
Net increase (decrease) in cash and cash equivalents
during the year (20,915) (10,881)
Cash and cash equivalents, beginning of year 167,611 137,030
---------------------------------------------------- --------- ---------
Cash and cash equivalents, end of year 146,696 126,149
---------------------------------------------------- --------- ---------
SUPPLEMENTAL CASH FLOW INFORMATION
(*) Included in operating activities are the
following:
Interest paid 26,921 17,151
Income taxes paid 44,913 36,378
---------------------------------------------------- --------- ---------
ASSETS UNDER MANAGEMENT AND NET FLOWS
Quarters ended
----------------------
Mar. Dec. Sep. Jun.
31, 31, 30, 30, Mar. 31,
[billions of dollars] 2025 2024 2024 2024 2024
---------------------- ------ ------ ------- ------- ----------
Beginning AUM 137.8 135.4 130.1 130.1 125.0
Gross inflows 7.2 9.3 6.3 8.1 6.7
Gross outflows (7.8) (7.8) (6.2) (8.7) (8.3)
---------------------- ------ ------ ------- ------- ----------
Net inflows/(outflows) (0.6) 1.5 0.1 (0.6) (1.6)
Market move and FX (2.2) 0.9 5.3 0.5 6.7
---------------------- ------ ------ ------- ------- ----------
Ending AUM 135.0 137.8 135.4 130.1 130.1
---------------------- ------ ------ ------- ------- ----------
Proprietary AUM 35.5 35.4 36.0 34.1 34.4
Non-proprietary AUM 99.5 102.4 99.4 95.9 95.7
Average assets under
management 138.3 138.2 132.5 129.2 126.8
Annualized organic
growth (1.9)% 4.5% 0.2% (1.9)% (5.2)%
Gross management
fee/average AUM 1.14% 1.15% 1.17% 1.18% 1.19%
Net management
fee/average AUM 0.78% 0.79% 0.79% 0.80% 0.81%
Net Inflows/(Outflows)
----------------------
Retail (0.3) 1.9 -- (0.3) (1.3)
Institutional (0.2) 0.1 -- -- --
Closed business (0.2) (0.2) (0.2) (0.2) (0.2)
---------------------- ------ ------ ------- ------- ----------
Total Canada net
inflows/(outflows) (0.7) 1.8 (0.1) (0.6) (1.5)
Australia 0.1 (0.3) 0.2 -- (0.1)
---------------------- ------ ------ ------- ------- ----------
Total net
inflows/(outflows) (0.6) 1.5 0.1 (0.6) (1.6)
---------------------- ------ ------ ------- ------- ----------
Retail
[billions of dollars] Quarters Ended
----------------------
Mar. Dec.
31, 31, Sep. 30, Jun. 30, Mar. 31,
2025 2024 2024 2024 2024
---------------------- ------- ------- -------- -------- --------
Beginning AUM 115.3 108.0 115.1 108.1 103.7
Net Flows (0.3) 1.9 0.0 (0.3) -1.3
Market Move / FX (2.1) 4.3 (6.8) 12.7 5.7
Acquisitions -- -- -- -- --
Ending AUM 112.9 115.3 108.0 115.1 108.1
Average AUM 114.1 111.7 111.5 105.3 100.7
Institutional
Mar. Dec. Sep. Jun.
31, 31, 30, 30,
[billions of dollars] 2025 2024 2024 2024 Mar. 31, 2024
---------------------- ------ ------ ------ ------- -------------
Beginning AUM 9.3 9.6 9.2 9.1 8.8
Net Flows (0.2) 0.1 -- -- 0.0
Market Move / FX 0.0 (0.4) 0.4 0.1 0.3
Acquisitions -- -- -- -- --
Ending AUM 9.1 9.3 9.6 9.2 9.1
Average AUM 9.2 9.5 9.4 8.9 8.5
AUSTRALIA
Mar. Dec. Sep.
31, 31, 30, Jun. 30, Mar. 31,
[billions of dollars] 2025 2024 2024 2024 2024
---------------------- ------- ------- ------- -------- ---------
Beginning AUM 6.0 6.2 5.8 5.7 5.4
Net Flows 0.1 (0.3) 0.2 0.0 (0.1)
Market Move / FX 0.0 0.1 0.2 0.1 0.4
Acquisitions -- -- -- -- --
Ending AUM 6.1 6.0 6.2 5.8 5.7
Average AUM 6.1 6.1 6.0 5.4 5.0
CLOSED BUSINESS
Mar. Dec.
31, 31, Sep. 30, Jun. 30, Mar. 31,
[billions of dollars] 2025 2024 2024 2024 2024
---------------------- ------- ------- -------- -------- --------
Beginning AUM 7.2 7.3 7.1 7.3 7.1
Net Flows (0.2) (0.2) (0.2) (0.2) (0.2)
Market Move / FX (0.1) 0.1 0.4 -- 0.4
Acquisitions -- -- -- -- --
Ending AUM 6.9 7.2 7.3 7.1 7.3
Average AUM 7.1 7.3 7.2 7.2 7.2
AUM BY ASSET CLASS
[billions of dollars] Quarters ended
----------------------
Mar. Dec.
31, 31, Sep. 30, Jun. 30, Mar. 31,
2025 2024 2024 2024 2024
---------------------- ------- ------- -------- -------- --------
Balanced 52.8 53.6 53.5 51.8 52.5
Equity 43.1 45.3 44.6 42.4 42.7
Fixed income 14.2 14.0 12.8 12.0 11.7
Alternatives 8.3 8.6 7.8 7.6 7.7
Cash/Other 10.6 10.2 10.5 10.6 9.8
---------------------- ------- ------- -------- -------- --------
Total Canada asset
management 128.9 131.8 129.1 124.3 124.5
Australia 6.1 6.0 6.2 5.8 5.7
---------------------- ------- ------- -------- -------- --------
Total asset management
segment 135.0 137.8 135.4 130.1 130.1
---------------------- ------- ------- -------- -------- --------
CANADA WEALTH MANAGEMENT CLIENT ASSETS
[billions of dollars] Quarters ended
----------------------
Mar. Dec. Sep. Jun.
31, 31, 30, 30, Mar. 31,
2025 2024 2024 2024 2024
---------------------- ------- ------- ------- ------- ----------
Beginning client
assets 102.0 100.1 95.6 93.7 88.0
Acquisitions -- -- -- -- --
Net flows and market
move (0.1) 1.9 4.6 1.8 5.7
---------------------- ------- ------- ------- ------- ----------
Ending client assets 101.9 102.0 100.1 95.6 93.7
---------------------- ------- ------- ------- ------- ----------
Average client assets 102.0 101.1 97.8 94.6 90.9
Wealth management
fees/average client
assets 0.89% 0.88% 0.88% 0.90% 0.89%
Canada custody 35.6 34.7 31.9 29.4 28.0
---------------------- ------- ------- ------- ------- ----------
Proprietary custody 30.5 29.8 27.5 25.5 24.5
Non-proprietary
custody 5.1 4.9 4.4 3.8 3.5
U.S. WEALTH MANAGEMENT CLIENT ASSETS
[billions of dollars] Quarters ended
--------------------------
Mar. Dec. Sep. Jun.
31, 31, 30, 30, Mar. 31,
2025 2024 2024 2024 2024
-------------------------- ------ ------ ------ ------ ----------
Beginning billable client
assets 243.6 240.0 223.7 212.4 196.8
Acquisitions/divestitures 18.5 (7.6) 8.2 5.6 --
Net flows and market move (13.1) 11.2 8.1 5.8 15.5
-------------------------- ------ ------ ------ ------ ----------
Ending billable client
assets 249.0 243.6 240.0 223.7 212.4
Non-billable client assets 24.6 11.3 10.7 10.3 10.0
-------------------------- ------ ------ ------ ------ ----------
Total client assets 273.6 254.9 250.6 234.1 222.3
-------------------------- ------ ------ ------ ------ ----------
Fees/beginning billable
client assets 0.49% 0.49% 0.49% 0.49% 0.49%
NON-IFRS MEASURES
In an effort to provide additional information regarding our results as determined by IFRS, we also disclose certain non-IFRS information which we believe provides useful and meaningful information. Our management reviews these non-IFRS financial measurements when evaluating our financial performance and results of operations; therefore, we believe it is useful to provide information with respect to these non-IFRS measurements so as to share this perspective of management. Non-IFRS measurements do not have any standardized meaning, do not replace nor are superior to IFRS financial measurements and may not be comparable to similar measures presented by other companies. The non-IFRS financial measurements include:
-- Adjusted net income and adjusted basic and diluted earnings per share -- Adjusted EBITDA, adjusted EBITDA margin and adjusted net revenue -- Free cash flow -- Net debt.
These non-IFRS financial measurements exclude the following revenues and expenses which we believe allows investors a consistent way to analyze our financial performance, allows for better analysis of core operating income and business trends and permits comparisons of companies within the industry, normalizing for different financing methods and levels of taxation:
-- Costs related to our acquisitions, including:
-- amortization of intangible assets
-- change in fair value of contingent consideration
-- related advisory and legal fees
-- contingent consideration and consideration for strategic
recruitment classified as compensation per IFRS
-- Interest expense associated with redeemable preferred shares
issued in connection with acquisitions
-- Integration-related costs associated with our U.S. Wealth segment,
including:
-- organizational expenses for the establishment of Corient
-- restructuring and severance-related charges
-- rebranding efforts
-- technology, operations and real estate related integration costs
-- Accounting treatment of Corient and CIPW Canada redeemable units
including:
-- compensation expenses associated with Corient and CIPW Canada
redeemable units
-- non-cash charges related to guarantees for Corient and CIPW Canada
related loans
-- Gains or losses related to foreign currency fluctuations
-- Legal provisions for a class action related to market timing and others
-- Certain realized and unrealized gains or losses in assets and investments
-- Costs related to issuing or retiring debt obligations and any related
gains or losses
-- Unusual trading or bad debt write-off charges
-- Preparation costs for the planned initial public offering of our U.S.
Wealth business or sale to a group of institutional investors
-- Pass-through carried interest revenue and expense as a result of CI being
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May 14, 2025 07:00 ET (11:00 GMT)
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