Stifel(US:SF)2025-11-05 21:07Financial Performance - For the three months ended September 30, 2025, net revenues increased 16.7% to $1.4 billion from $1.2 billion during the comparable period in 2024[245]. - Net income available to common shareholders for the three months ended September 30, 2025, increased 35.4% to $202.1 million, or $1.84 per diluted common share[245]. - For the nine months ended September 30, 2025, net revenues increased 10.1% to $4.0 billion compared to $3.6 billion during the comparable period in 2024[246]. - Net income available to common shareholders for the nine months ended September 30, 2025, decreased 14.8% to $391.5 million, or $3.56 per diluted common share[246]. - For the nine months ended September 30, 2025, total revenues increased by 5.4% to $4.59 billion from $4.36 billion in the comparable period in 2024[253]. - Net revenues for the nine months ended September 30, 2025, rose by 10.1% to $3.97 billion compared to $3.61 billion in the same period in 2024[253]. Revenue Breakdown - Commission revenues for the nine months ended September 30, 2025, increased by 8.7% to $600.4 million from $552.2 million in the comparable period in 2024, driven by higher trading volumes[256]. - Principal transaction revenues for the nine months ended September 30, 2025, rose by 14.5% to $492.1 million from $429.7 million in the same period in 2024, attributed to increased client activity[258]. - Investment banking revenues for the nine months ended September 30, 2025, increased by 15.1% to $794.9 million from $690.4 million in the comparable period in 2024[261]. - Asset management revenues for the nine months ended September 30, 2025, grew by 10.1% to $1.24 billion from $1.13 billion in the same period in 2024[265]. Expenses and Costs - Compensation and benefits comprised 58.8% of total net revenues for the three months ended September 30, 2025[252]. - Total non-interest expenses for the nine months ended September 30, 2025, increased by 15.7% to $3.41 billion from $2.94 billion in the same period in 2024[253]. - Total non-interest expenses for the three months ended September 30, 2025, increased 13.4% to $1.14 billion from $1.01 billion during the comparable period in 2024[274]. - Compensation and benefits expense increased 17.0% to $839.8 million for the three months ended September 30, 2025, from $718.1 million during the comparable period in 2024[275]. Interest and Revenue - For the three months ended September 30, 2025, net interest income increased 6.4% to $276.3 million from $259.6 million during the comparable period in 2024[269]. - Interest revenue for the three months ended September 30, 2025, decreased 5.7% to $481.5 million from $510.8 million in the comparable period in 2024[270]. - Interest expense decreased by 18.3% to $205.2 million for the three months ended September 30, 2025[252]. - For the nine months ended September 30, 2025, interest expense decreased 16.9% to $625.5 million from $753.2 million in the comparable period in 2024[273]. Acquisitions - The company completed the acquisition of a portion of B. Riley Financial, Inc.'s traditional wealth management business, adding 36 advisors with approximately $4 billion in assets under management[241]. - The company also acquired Bryan, Garnier & Co., an independent full-service investment bank focused on European technology and healthcare companies[242]. Client Assets and Deposits - Client assets as of September 30, 2025, reached $544.0 billion, a 9.6% increase from $496.3 billion in the comparable period in 2024[298]. - Total deposits rose to $30.1 billion as of September 30, 2025, compared to $29.1 billion at December 31, 2024, marking a 3.4% increase[386]. Risk Management - The company actively manages various risks, including market, credit, capital and liquidity, operational, and regulatory risks, which are critical to its soundness and profitability[427]. - The Risk Management Committee of the Board of Directors conducts periodic reviews and discussions with management regarding risk assessment and management processes[428]. - Market risk is inherent to the company's financial instruments, which include tax-exempt and taxable debt obligations, U.S. treasury bills, and corporate obligations[429].