Stifel Reports Fourth Quarter and Full Year Results

Core Viewpoint - Stifel Financial Corp. reported record net revenues and significant growth in net income for both the fourth quarter and the full year of 2024, demonstrating resilience and strength in its business model despite previous challenges in the institutional segment [3][8]. Financial Performance - The company achieved net revenues of $1.36 billion for Q4 2024, up from$1.15 billion in Q4 2023, representing a 19% increase [1][9]. - For the full year 2024, net revenues reached $4.97 billion, compared to$4.35 billion in 2023, marking a 14.3% increase [2][9]. - Net income available to common shareholders for Q4 2024 was $234.7 million, or$2.09 per diluted share, compared to $153.2 million, or$1.38 per diluted share in Q4 2023, reflecting a 53.2% increase [1][9]. - Full year net income available to common shareholders was $694.1 million, or$6.25 per diluted share, up from $485.3 million, or$4.28 per diluted share in 2023, a 43% increase [2][9]. Segment Performance - The Global Wealth Management segment reported record net revenues of $865.2 million for Q4 2024, up 13$766.0 million in Q4 2023 [11][14]. - The Institutional Group reported net revenues of $478.3 million for Q4 2024, a 33$359.3 million in Q4 2023, with pre-tax net income rising significantly from $7.8 million to$95.7 million [19][20]. Revenue Drivers - Investment banking revenues increased by 48% year-over-year in Q4 2024, driven by higher advisory and capital raising revenues [8][22]. - Asset management revenues reached record levels, up 18% over 2023, contributing to the overall revenue growth [8][37]. - Total client assets in the Global Wealth Management segment reached $501.4 billion, a 13% increase from the previous year [14][30]. Operational Efficiency - The company maintained a non-GAAP pre-tax margin of 20.7% for Q4 2024, up from 19.4% in Q4 2023 [9][70]. - The return on average tangible common equity (ROTCE) for the full year 2024 was 22.7%, compared to 16.6% in 2023, indicating improved profitability [9][74]. Strategic Initiatives - Stifel recruited 100 financial advisors during 2024, including 34 experienced employee advisors, enhancing its advisory capabilities [8][33]. - The Board of Directors approved a 10% increase in the common stock dividend, reflecting confidence in the company's financial health [8][55].