ST. LOUIS, April 23, 2025 (GLOBE NEWSWIRE) -- Stifel Financial Corp. (NYSE: SF) today reported net revenues of $1.26 billion for the three months ended March 31, 2025, compared with $1.16 billion a year ago. Net income available to common shareholders was $43.7 million, or $0.39 per diluted common share, compared with $154.3 million, or $1.40 per diluted common share for the first quarter of 2024. Non-GAAP net income available to common shareholders was $54.2 million, or $0.49 per diluted common share for the first quarter of 2025.
Ronald J. Kruszewski, Chairman and Chief Executive Officer, said "Our net revenue of $1.26 billion marks the highest first-quarter revenue in our history, with year-over-year growth across all revenue lines. The investments we've made in our business and our focus on delivering valued advice drove growth in both our Global Wealth Management and Institutional Group - despite the headwinds from market volatility and a significant legal charge. We remain optimistic about long-term growth, emphasizing the resilience of U.S. financial markets and the value our advice-driven model delivers during periods of uncertainty.”
Highlights
- The Company reported net revenues of $1.26 billion, the third best quarter in its history, driven by higher asset management revenues, investment banking revenues, transactional revenues, and net interest income.
- Non-GAAP net income available to common shareholders of $0.49 per diluted common share was negatively impacted by elevated provisions for legal matters of $1.16 per diluted common share (after-tax).
- Record asset management revenues, up 11% over the year-ago quarter.
- Advisory revenues increased 15% over the year-ago quarter.
- Capital raising revenues increased 6% over the year-ago quarter.
- Client assets of $485.9 billion, up 4% over the year-ago quarter.
- Recruited 52 financial advisors during the quarter, including 9 experienced employee advisors.
- Non-GAAP pre-tax margin of 6% was negatively impacted by elevated provisions for legal matters.
- Annualized return on tangible common equity (ROTCE) (5) of 6%.
- Tangible book value per common share (7) of $33.31, up 9% from prior year.
| Financial Summary (Unaudited) | ||||||
| (000s) | 1Q 2025 | 1Q 2024 | ||||
| GAAP Financial Highlights: | ||||||
| Net revenues | $1,255,469 | $1,163,038 | ||||
| Net income (1) | $43,672 | $154,255 | ||||
| Diluted EPS (1) | $0.39 | $1.40 | ||||
| Comp. ratio | 58.3% | 58.4% | ||||
| Non-comp. ratio | 36.7% | 22.8% | ||||
| Pre-tax margin | 5.0% | 18.8% | ||||
| Non-GAAP Financial Highlights: | ||||||
| Net revenues | $1,255,455 | $1,163,038 | ||||
| Net income (1) (2) | $54,236 | $163,346 | ||||
| Diluted EPS (1) (2) | $0.49 | $1.49 | ||||
| Comp. ratio (2) | 58.0% | 58.0% | ||||
| Non-comp. ratio (2) | 35.9% | 22.2% | ||||
| Pre-tax margin (3) | 6.1% | 19.8% | ||||
| ROCE (4) | 4.4% | 14.3% | ||||
| ROTCE (5) | 6.2% | 20.9% | ||||
| Global Wealth Management (assets and loans in millions) | ||||||
| Net revenues | $850,559 | $790,500 | ||||
| Pre-tax net income | $126,405 | $290,748 | ||||
| Total client assets | $485,860 | $467,697 | ||||
| Fee-based client assets | $189,693 | $177,108 | ||||
| Bank loans (6) | $21,241 | $19,484 | ||||
| Institutional Group | ||||||
| Net revenues | $384,929 | $351,376 | ||||
| Equity | $236,192 | $206,417 | ||||
| Fixed Income | $148,737 | $144,959 | ||||
| Pre-tax net income | $27,431 | $37,109 | ||||
Global Wealth Management
Global Wealth Management reported net revenues of $850.6 million for the three months ended March 31, 2025 compared with $790.5 million during the first quarter of 2024. Pre-tax net income was $126.4 million compared with $290.7 million in the first quarter of 2024.
Highlights
- Recruited 52 financial advisors during the quarter, including 9 experienced employee advisors, with total trailing 12 month production of $11.7 million.
- Client assets of $485.9 billion, up 4% over the year-ago quarter.
- Fee-based client assets of $189.7 billion, up 7% over the year-ago quarter.
- Transactional revenues increased 3% over the year-ago quarter reflecting an increase in client activity.
- Asset management revenues increased 11% over the year-ago quarter reflecting higher asset values and net new asset growth.
- Net interest income increased 4% over the year-ago quarter driven by balance sheet growth, partially offset by lower interest rates and changes in the deposit mix.
- Compensation expense as a percentage of net revenues increased to 49.6% primarily as a result of higher compensable revenues.
- Provision for credit losses was primarily impacted by an increase in reserves driven by loan growth and changes in the outlook for macroeconomic conditions.
- Non-compensation operating expenses as a percentage of net revenues increased to 35.5% primarily as a result of higher litigation-related expenses.
| Summary Results of Operations | ||||||
| (000s) | 1Q 2025 | 1Q 2024 | ||||
| Net revenues | $850,559 | $790,500 | ||||
| Transactional revenues | 186,395 | 181,753 | ||||
| Asset management | 409,506 | 367,450 | ||||
| Net interest income | 245,534 | 236,269 | ||||
| Investment banking | 5,908 | 4,280 | ||||
| Other income | 3,216 | 748 | ||||
| Total expenses | $724,154 | $499,752 | ||||
| Compensation expense | 422,293 | 389,536 | ||||
| Provision for credit losses | 12,020 | 4,968 | ||||
| Non-comp. opex | 289,841 | 105,248 | ||||
| Pre-tax net income | $126,405 | $290,748 | ||||
| Compensation ratio | 49.6% | 49.3% | ||||
| Non-compensation ratio | 35.5% | 13.9% | ||||
| Pre-tax margin | 14.9% | 36.8% | ||||
Institutional Group
Institutional Group reported net revenues of $384.9 million for the three months ended March 31, 2025 compared with $351.4 million during the first quarter of 2024. Pre-tax net income was $27.4 million compared with $37.1 million in the first quarter of 2024.
Highlights
Investment banking revenues increased 11% from a year ago:
- Advisory revenues increased 15% from the year-ago quarter driven by higher levels of completed advisory transactions.
- Fixed income capital raising revenues decreased 9% from the year-ago quarter primarily driven by lower bond issuances.
- Equity capital raising revenues increased 22% over the year-ago quarter driven by higher volumes.
- Fixed income transactional revenues were impacted by increased activity in securitized products, partially offset by lower levels of activity in credit products.
- Equity transactional revenues increased from the year-ago quarter primarily driven by increased client activity amid a more volatile trading environment.
- Compensation expense as a percentage of net revenues increased to 65.6% primarily as a result of higher fixed compensation expenses in our international operations.
- Non-compensation operating expenses as a percentage of net revenues decreased to 27.3% from the year-ago quarter primarily as a result of higher revenues.
| Summary Results of Operations | ||||||
| (000s) | 1Q 2025 | 1Q 2024 | ||||
| Net revenues | $384,929 | $351,376 | ||||
| Investment banking | 232,034 | 209,669 | ||||
| Advisory | 137,470 | 119,252 | ||||
| Fixed income capital raising | 45,559 | 50,116 | ||||
| Equity capital raising | 49,005 | 40,301 | ||||
| Fixed income transactional | 89,345 | 88,654 | ||||
| Equity transactional | 59,590 | 54,083 | ||||
| Other | 3,960 | (1,030) | ||||
| Total expenses | $357,498 | $314,267 | ||||
| Compensation expense | 252,585 | 215,749 | ||||
| Non-comp. opex. | 104,913 | 98,518 | ||||
| Pre-tax net income | $27,431 | $37,109 | ||||
| Compensation ratio | 65.6% | 61.4% | ||||
| Non-compensation ratio | 27.3% | 28.0% | ||||
| Pre-tax margin | 7.1% | 10.6% | ||||
Other Matters
Highlights
- The Company repurchased $210.9 million of its outstanding common stock during the first quarter, including $117.8 million in connection with net-share settlements under its equity compensation plan.
- Weighted average diluted shares outstanding increased primarily as a result the increase in the Company's share price, partially offset by an increase in share repurchases.
- The Board of Directors declared a $0.46 quarterly dividend per share payable on March 17, 2025 to common shareholders of record on March 3, 2025.
- The Board of Directors declared a quarterly dividend on the outstanding shares of the Company's preferred stock payable on March 17, 2025 to shareholders of record on March 3, 2025.
| 1Q 2025 | 1Q 2024 | |||||
| Common stock repurchases | ||||||
| Repurchases (000s) | $210,934 | $159,348 | ||||
| Number of shares (000s) | 2,029 | 2,254 | ||||
| Average price | $103.95 | $70.71 | ||||
| Period end shares (000s) | 103,078 | 102,649 | ||||
| Weighted average diluted shares outstanding (000s) | 110,635 | 109,985 | ||||
| Effective tax rate | 16.4% | 25.2% | ||||
| Stifel Financial Corp. (8) | ||||||
| Tier 1 common capital ratio | 14.7% | 14.3% | ||||
| Tier 1 risk based capital ratio | 17.6% | 17.3% | ||||
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