ST. LOUIS, Jan. 29, 2025 (GLOBE NEWSWIRE) -- Stifel Financial Corp. (NYSE: SF) today reported net revenues of $1.36 billion for the three months ended December 31, 2024, compared with $1.15 billion a year ago. Net income available to common shareholders of $234.7 million, or $2.09 per diluted common share, compared with $153.2 million, or $1.38 per diluted common share for the fourth quarter of 2023. Non-GAAP net income available to common shareholders of $249.7 million, or $2.23 per diluted common share for the fourth quarter of 2024.
Net revenues of $4.97 billion for the year ended December 31, 2024 compared to $4.35 billion a year ago. Net income available to common shareholders of $694.1 million, or $6.25 per diluted common share, compared with $485.3 million, or $4.28 per diluted common share in 2023. Non-GAAP net income available to common shareholders of $755.9 million, or $6.81 per diluted common share in 2024.
Ronald J. Kruszewski, Chairman and Chief Executive Officer, said "Stifel generated record net revenue and the second highest earnings per share in our history in 2024. The fact that we accomplished this level of performance in a year when our Institutional segment was rebounding from a very difficult operating environment in 2023 is a testament to the strength and diversity of our business model. Given our long history of profitable growth, Stifel is well positioned to capitalize on improving market conditions in 2025 and to achieve our short and long term targets.”
Full Year Highlights
- The Company reported record net revenues of $4.97 billion driven by higher investment banking revenues, asset management revenues, and transactional revenues, partially offset by lower net interest income.
- Non-GAAP net income available to common shareholders of $6.81.
- Record asset management revenues, up 18% over 2023.
- Record client assets of $501.4 billion, up 13% over 2023.
- Recruited 100 financial advisors during the year, including 34 experienced employee advisors and 12 experienced independent advisors.
- Non-GAAP pre-tax margin of 20%.
- Return on average tangible common equity (ROTCE) (5) of 23%.
- Tangible book value per common share (7) of $34.99, up 12% from prior year.
Fourth Quarter Highlights
- Quarterly record net revenues of $1.36 billion.
- Non-GAAP net income available to common shareholders of $2.23.
- Investment banking revenue increased 48% over the year-ago quarter, driven by higher advisory and capital raising revenues.
- Capital raising revenues increased 50% over the year-ago quarter.
- Advisory revenues increased 47% over the year-ago quarter.
- Non-GAAP pre-tax margin of 21%.
- Annualized ROTCE (5) of 28%.
- Board of Directors authorized a 10% increase in common stock dividend starting in the first quarter of 2025.
- Announced the acquisition of Bryan, Garnier, & Co.
| Financial Summary (Unaudited) | ||||||||
| (000s) | 4Q 2024 | 4Q 2023 | FY 2024 | FY 2023 | ||||
| GAAP Financial Highlights: | ||||||||
| Net revenues | $1,364,682 | $1,146,379 | $4,970,320 | $4,348,944 | ||||
| Net income (1) | $234,685 | $153,164 | $694,098 | $485,255 | ||||
| Diluted EPS (1) | $2.09 | $1.38 | $6.25 | $4.28 | ||||
| Comp. ratio | 58.3% | 58.8% | 58.7% | 58.7% | ||||
| Non-comp. ratio | 22.2% | 23.2% | 22.6% | 25.1% | ||||
| Pre-tax margin | 19.5% | 18.0% | 18.7% | 16.2% | ||||
| Non-GAAP Financial Highlights: | ||||||||
| Net revenues | $1,364,721 | $1,146,419 | $4,971,051 | $4,348,958 | ||||
| Net income (1) (2) | $249,710 | $166,587 | $755,896 | $531,524 | ||||
| Diluted EPS (1) (2) | $2.23 | $1.50 | $6.81 | $4.68 | ||||
| Comp. ratio (2) | 58.0% | 58.0% | 58.0% | 58.0% | ||||
| Non-comp. ratio (2) | 21.3% | 22.6% | 21.9% | 24.3% | ||||
| Pre-tax margin (3) | 20.7% | 19.4% | 20.1% | 17.7% | ||||
| ROCE (4) | 20.1% | 14.6% | 15.9% | 11.5% | ||||
| ROTCE (5) | 28.3% | 21.3% | 22.7% | 16.6% | ||||
| Global Wealth Management (assets and loans in millions) | ||||||||
| Net revenues | $865,209 | $766,028 | $3,283,960 | $3,049,962 | ||||
| Pre-tax net income | $316,318 | $301,360 | $1,207,942 | $1,215,822 | ||||
| Total client assets | $501,402 | $444,318 | ||||||
| Fee-based client assets | $192,705 | $165,301 | ||||||
| Bank loans, net (6) | $21,311 | $19,730 | ||||||
| Institutional Group | ||||||||
| Net revenues | $478,335 | $359,292 | $1,592,833 | $1,226,317 | ||||
| Equity | $280,159 | $200,915 | $926,729 | $709,286 | ||||
| Fixed Income | $198,176 | $158,377 | $666,104 | $517,031 | ||||
| Pre-tax net income | $95,681 | $7,771 | $223,400 | $2,100 | ||||
Global Wealth Management
Fourth Quarter Results
Global Wealth Management reported record net revenues of $865.2 million for the three months ended December 31, 2024 compared with $766.0 million during the fourth quarter of 2023. Pre-tax net income was $316.3 million compared with $301.4 million in the fourth quarter of 2023.
Highlights
- Client assets of $501.4 billion, up 13% over the year-ago quarter.
- Fee-based client assets of $192.7 billion, up 17% over the year-ago quarter.
- Recruited 8 financial advisors during the quarter, including 4 experienced employee advisors with total trailing 12 month production of $8 million.
- Transactional revenues increased 18% over the year-ago quarter reflecting an increase in client activity.
- Asset management revenues increased 23% over the year-ago quarter reflecting higher asset values as a result of improved market conditions and net cash inflows.
- Net interest income decreased 1% from the year-ago quarter primarily as a result of lower rates, partially offset by balance sheet growth.
- Compensation expense as percent of net revenues increased to 48.5% primarily as a result of higher compensable revenues.
- Provision for credit losses was primarily impacted by loan growth and a deterioration in certain loans, partially offset by a slightly better macroeconomic forecast.
- Non-compensation operating expenses as a percent of net revenues increased to 14.9% primarily as a result of higher litigation-related expenses and an increase in the provision for credit losses, partially offset by revenue growth.
| Summary Results of Operations | |||||||
| (000s) | 4Q 2024 | 4Q 2023 | |||||
| Net revenues | $865,209 | $766,028 | |||||
| Transactional revenues | 200,564 | 169,471 | |||||
| Asset management | 405,800 | 330,498 | |||||
| Net interest income | 254,337 | 257,920 | |||||
| Investment banking | 5,198 | 4,562 | |||||
| Other income | (690) | 3,577 | |||||
| Total expenses | $548,891 | $464,668 | |||||
| Compensation expense | 419,466 | 359,376 | |||||
| Provision for credit losses | 11,893 | (37) | |||||
| Non-comp. opex | 117,532 | 105,329 | |||||
| Pre-tax net income | $316,318 | $301,360 | |||||
| Compensation ratio | 48.5% | 46.9% | |||||
| Non-compensation ratio | 14.9% | 13.8% | |||||
| Pre-tax margin | 36.6% | 39.3% | |||||
Institutional Group
Fourth Quarter Results
Institutional Group reported net revenues of $478.3 million for the three months ended December 31, 2024 compared with $359.3 million during the fourth quarter of 2023. Pre-tax net income was $95.7 million compared with $7.8 million in the fourth quarter of 2023.
Highlights
Investment banking revenues increased 49% from a year ago:
- Advisory revenues of $189.9 million increased 47% from the year-ago quarter driven by higher levels of completed advisory transactions.
- Fixed income capital raising revenues increased 53% over the year-ago quarter primarily driven by higher bond issuances.
- Equity capital raising revenues increased 52% over the year-ago quarter driven by higher volumes.
- Fixed income transactional revenues increased from the year-ago quarter driven by improved client engagement and realized trading gains.
- Equity transactional revenues increased from the year-ago quarter primarily driven by an increase in equities trading commissions.
- Compensation expense as a percent of net revenues decreased to 58.6% primarily as a result of higher revenues.
- Non-compensation operating expenses as a percent of net revenues decreased to 21.4% primarily as a result of revenue growth.
| Summary Results of Operations | |||||||
| (000s) | 4Q 2024 | 4Q 2023 | |||||
| Net revenues | $478,335 | $359,292 | |||||
| Investment banking | 299,221 | 201,102 | |||||
| Advisory | 189,912 | 129,378 | |||||
| Fixed income capital raising | 61,424 | 40,214 | |||||
| Equity capital raising | 47,885 | 31,510 | |||||
| Fixed income transactional | 118,700 | 102,019 | |||||
| Equity transactional | 59,409 | 56,501 | |||||
| Other | 1,005 | (330) | |||||
| Total expenses | $382,654 | $351,521 | |||||
| Compensation expense | 280,261 | 248,970 | |||||
| Non-comp. opex. | 102,393 | 102,551 | |||||
| Pre-tax net income | $95,681 | $7,771 | |||||
| Compensation ratio | 58.6% | 69.3% | |||||
| Non-compensation ratio | 21.4% | 28.5% | |||||
| Pre-tax margin | 20.0% | 2.2% | |||||
Global Wealth Management
Full Year Results
Global Wealth Management reported record net revenues of $3.3 billion for the year ended December 31, 2024 compared with $3.0 billion in 2023. Pre-tax net income of $1.2 billion decreased 1% from 2023.
Highlights
- Recruited 100 financial advisors during the year, including 34 experienced employee advisors and 12 experienced independent advisors with total trailing 12 month production of $37 million.
- Transactional revenues increased 15% from prior year reflecting an increase in client activity.
- Asset management revenues increased 18% from prior year reflecting higher asset values as a result of improved market conditions and net cash inflows.
- Net interest income decreased 11% from prior year primarily driven by changes in the deposit mix, partially offset by lending growth and higher rates.
- Compensation expense as a percent of net revenues increased to 48.9% primarily as a result of higher compensable revenues.
- Provision for credit losses was primarily impacted by loan growth and a deterioration in certain loans, partially offset by a slightly better macroeconomic forecast.
- Non-compensation operating expenses as a percent of net revenues increased to 14.3% primarily as a result of higher litigation-related expenses and an increase in the provision for credit losses, partially offset by revenue growth.
| Summary Results of Operations | |||||||
| (000s) | FY 2024 | FY 2023 | |||||
| Net revenues | $3,283,960 | $3,049,962 | |||||
| Transactional revenues | 752,352 | 654,231 | |||||
| Asset management | 1,536,296 | 1,299,361 | |||||
| Net interest income | 967,712 | 1,086,628 | |||||
| Investment banking | 21,475 | 16,680 | |||||
| Other income | 6,125 | (6,938) | |||||
| Total expenses | $2,076,018 | $1,834,140 | |||||
| Compensation expense | ()[\]\\.,;:\s@\"]+)*)|(\".+\"))@((\[[0-9]{1,3}\.[0-9]{1,3}\.[0-9]{1,3}\.[0-9]{1,3}\])|(([a-zA-Z\-0-9]+\.)+[a-zA-Z]{2,}))$/;return b.test(a)}$(document).ready(function(){if(performance.navigation.type==2){location.reload(true)}$("iframe[data-lazy-src]").each(function(b){$(this).attr("src",$(this).attr("data-lazy-src"))});if($(".owl-article-body-images").length){$(".owl-article-body-images").owlCarousel({items:1,loop:true,center:false,dots:false,autoPlay:true,mouseDrag:false,touchDrag:false,pullDrag:false,nav:true})}var a=$("#display_full_text").val();if(a==0){$.ajax({url:"/ajax/set-article-cookie",type:"POST",data:{cmsArticleId:$("#cms_article_id").val()},dataType:"json",success:function(b){},error:function(b,d,c){}})}$(".read-full-article").on("click",function(d){d.preventDefault();var b=$(this).attr("data-cmsArticleId");var c=$(this).attr("data-productId");var f=$(this).attr("data-href");dataLayer.push({event:"paywall_click",paywall_name:"the_manila_times_premium",paywall_id:"paywall_article_"+b});$.ajax({url:"/ajax/set-article-cookie",type:"POST",data:{cmsArticleId:b,productId:c},dataType:"json",success:function(e){window.location.href=$("#BASE_URL").val()+f},error:function(e,h,g){}})});$(".article-embedded-newsletter-form .close-btn").on("click",function(){$(".article-embedded-newsletter-form").fadeOut(1000)})});$(document).on("click",".article-embedded-newsletter-form .newsletter-button",function(){var b=$(".article-embedded-newsletter-form .newsletter_email").val();var d=$("#ga_user_id").val();var c=$("#ga_user_yob").val();var a=$("#ga_user_gender").val();var e=$("#ga_user_country").val();if(validateEmail(b)){$.ajax({url:"/ajax/sendynewsletter",type:"POST",data:{email:b},success:function(f){$(".article-embedded-newsletter-form .nf-message").html(f);$(".article-embedded-newsletter-form .nf-message").addClass("show");setTimeout(function(){$(".article-embedded-newsletter-form .nf-message").removeClass("show");$(".article-embedded-newsletter-form .nf-message").html("")},6000);dataLayer.push({event:"newsletter_sub",user_id:d,product_name:"newsletter",gender:a,yob:c,country:e})},error:function(f,h,g){}})}else{$(".article-embedded-newsletter-form .nf-message").html("Please enter a valid email address.");$(".article-embedded-newsletter-form .nf-message").addClass("show");setTimeout(function(){$(".article-embedded-newsletter-form .nf-message").removeClass("show");$(".article-embedded-newsletter-form .nf-message").html("")},6000)}});$(document).on("click",".article-embedded-newsletter-form .nf-message",function(){$(this).removeClass("show");$(this).html("")});
| ||||||