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Research Alert: Igm Q1: Adjusted Eps Grows 21% On Aum&a Growth Of 13%, Flexing Leverage

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-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

Q1 adjusted EPS rose 21% to CAD1.21, while total revenues increased 13.9% to CAD997.9M due to wealth management revenues of CAD729.7M (+14.1%) and asset management growth. AUM&A reached CAD314.0B, up 14.2% with strong net inflows of CAD5.6B, while total consolidated AUM&A including strategic investments grew 13% to CAD568.9B. IGM's asset-light model demonstrated strong operating leverage, as 13% AUM&A growth translated into 21% EPS growth with expense growth of only 10.4%. The Board increased the dividend 10% to CAD0.62 per share. We view the accelerated share buybacks of CAD185M as particularly noteworthy, representing the highest allocation in over a decade. Strategic investments continue contributing to diversification with Wealthsimple maintaining CAD2.3B fair value and strong earnings growth from ChinaAMC (+13.1%) and Great-West Lifeco (+45.4%). We believe burgeoning equity markets and disciplined capital allocation position IGM well for continued momentum.

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