Stifel(SF) - 2024 Q4 - Annual Results

Financial Performance - Net revenues for Q4 2024 reached $1,364,682, a 19.0% increase from $1,146,379 in Q4 2023[2] - Net income for Q4 2024 was $244,005, reflecting a 50.2% growth compared to $162,484 in Q4 2023[3] - Earnings per diluted common share increased to $2.18 in Q4 2024, up 49.3% from $1.46 in Q4 2023[2] - Total revenues for the year ended 2024 were $5,951,686, a 15.4% increase from $5,159,280 in 2023[3] - Total revenues for Q4 2024 reached $1,592,911, a 14.6% increase compared to $1,390,130 in Q4 2023[4] - Net income for Q4 2024 was $259,030, reflecting a 47.3% increase from $175,907 in Q4 2023[4] - GAAP net revenues for the year ended December 31, 2024, reached $4,970,320, an increase from $4,348,944 in the previous year[19] - Non-GAAP net revenues for the three months ended December 31, 2024, were $1,364,721, compared to $1,146,419 for the same period in 2023[19] Revenue Sources - Investment banking revenues for Q4 2024 were $304,419, a 48.0% increase from $205,664 in Q4 2023[3] - Asset management revenues rose to $405,825 in Q4 2024, up 22.8% from $330,536 in Q4 2023[3] - Global Wealth Management net revenues grew by 12.9% to $865,209 in Q4 2024, up from $766,028 in Q4 2023[5] - Revenues from asset management grew by 22.8% to $405,825, compared to $330,536 in the previous year[9] - Investment banking revenues increased by 48.8% year-over-year to $299.2 million, driven by a 52.4% rise in capital raising activities[11] Expenses and Costs - Non-interest expenses for Q4 2024 totaled $1,098,481, a 16.8% increase from $940,384 in Q4 2023[3] - Total non-interest expenses for Q4 2024 were $1,082,130, up 17.2% from $923,503 in Q4 2023[4] - Compensation and benefits expenses rose by 16.7% to $419,466 compared to $359,376 in the same quarter last year[8] - Compensation and benefits expense for the three months ended December 31, 2024, was $795,750, up from $674,437 in the prior year[19] Assets and Capital - Total assets as of December 31, 2024, were $39,895,540, a 5.7% increase from $37,727,460 a year earlier[6] - Common equity tier 1 capital increased to $3,645,786, a 12.8% rise from $3,230,965 in the previous year[7] - Total client assets reached $501,402,000, reflecting a 12.8% increase from $444,318,000 year-over-year[9] - Total assets for Stifel Bancorp grew to $31.4 billion, reflecting a 5.6% increase from $29.7 billion in 2023[12] - Total loans, net, increased by 8.0% to $21.3 billion, with significant growth in commercial and industrial loans, which rose by 13.9%[12] Credit Quality and Losses - The company reported a provision for credit losses of $11,893 in Q4 2024, a significant increase of 425.5% from $2,263 in Q4 2023[3] - Nonperforming assets surged by 254.0% year-over-year to $160.9 million, indicating potential credit quality concerns[12] - The allowance for credit losses stood at $170.0 million, representing 0.81% of retained loans[12] Tax and Regulatory Information - The effective tax rate for Q4 2024 was 8.3%, significantly lower than 21.1% in Q4 2023[6] - The effective tax rate for the three months ended December 31, 2024, was 8.3%, a decrease from 21.1% in the same period last year[19] - Regulatory capital amounts and ratios are estimates as of January 29, 2025, highlighting the company's ongoing compliance with financial regulations[1] Operational Adjustments - The company recorded severance costs associated with workforce reductions in certain foreign subsidiaries, reflecting operational adjustments[1] - The company began sweeping certain commercial treasury deposits to third-party banks in Q1 2024, enhancing liquidity management strategies[1] Miscellaneous - The weighted average number of diluted common shares outstanding was 112,089, a 0.7% increase from 111,330 in Q4 2023[3] - Financial advisors decreased to 2,342, down 1.8% from 2,386 in the previous year[9] - The investment portfolio totaled $8.3 billion, with collateralized loan obligations (CLOs) making up 78% of the portfolio[13] - The company managed client assets in Treasury Securities with maturities of 52 weeks or less, indicating a focus on short-term investments[1] - The average deferred taxes on goodwill and intangible assets were reported at $80.3 million as of December 31, 2024, showing the impact of tax strategies on financial results[1] - Stifel Financial Corp. includes capital raising and advisory revenues in its financial performance metrics, emphasizing its diversified revenue streams[1] - The tangible book value per share as of December 31, 2024, was calculated based on tangible common shareholders' equity, reflecting the company's financial health[1]