IGM Financial Inc (TSX:IGM)
C$ 44.24 -1.25 (-2.75%) Market Cap: 10.53 Bil Enterprise Value: 17.35 Bil PE Ratio: 9.53 PB Ratio: 1.39 GF Score: 89/100

Q3 2024 IGM Financial Inc Earnings Call Transcript

Nov 08, 2024 / 01:00PM GMT
Release Date Price: C$44.38 (+2.35%)

Key Points

Positve
  • IGM Financial Inc (IGIFF) reported a 12% year-over-year increase in adjusted earnings per share, marking their second-best adjusted Q3 EPS on record.
  • Total client assets increased by 23% year-over-year to $462 billion, with all-time record high asset levels across the company.
  • The company successfully pivoted to delivering financial planning and investment management services to high net worth Canadians, with significant growth in this segment.
  • Wealth management and asset management segments both showed strong earnings growth of 10% and 16% respectively.
  • The company returned $160 million of capital to shareholders through dividends and share buybacks, maintaining an active capital return program.
Negative
  • Mackenzie Investments' mutual fund sales lagged behind industry trends, with some boutiques experiencing short-term underperformance.
  • The company faced a challenging operating environment over the past two years, with gradual improvement expected only if financial markets remain steady.
  • Despite strong overall performance, the company is still working to improve its net sales rate to match or exceed the industry average.
  • The fair value adjustment in the mortgage business resulted in a negative impact due to the downward movement of swap rates.
  • The dividend payout ratio remains high at 68%, with a focus on reducing it to 60% or below, indicating limited room for dividend increases in the near term.
Operator

Thank you for standing by. This is the conference operator.

Welcome to the IgM Financial third quarter, 2024 analyst call and webcast.

As a reminder, all participants are in a listen-only mode and the conference is being recorded after the presentation, there will be an opportunity to ask questions to join the question queue. You may press star then one on your telephone keypad.

Should you need assistance during the conference call? You may signal an operator by pressing star and zero.

I would now like to turn the conference over to Kyle Martin, Treasurer and Head of Investor Relations. Please go ahead.

Kyle Martin
Bermai Inc - Vice President, Sales

Thank you, Betsy and.

James O;sullivan;Damon Murchison
Wealthsimple Inc - Member of the Board of Directors, President And Chief Executive Officer, Igm Financial;IGM Financial Inc - President and Chief Executive Officer, IG Wealth

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