Stifel Financial Corp. (Stifel) reported a robust financial performance for the second quarter of 2024, surpassing analyst expectations with an adjusted earnings per share (EPS) of $1.60. This figure exceeded the consensus estimate of $1.55 by $0.05.
The company’s net revenues reached $1.2 billion, exceeding the consensus estimate of $1.18 billion and reflecting a notable increase from $1.1 billion in the same quarter last year. Stifel noted this achievement represents the second highest quarterly net revenue in Stifel’s history, highlighting the company's strong market position and diversified business model.
“Stifel generated our second highest quarterly net revenue in company history, as each of our operating segments generated solid year-on-year gains,” said Ronald J. Kruszewski, chairman and chief executive officer of Stifel. He credited the impressive results to improved market conditions and Stifel’s strategic positioning, expressing confidence in the company's outlook for the second half of 2024.
The firm reported net income available to common shareholders of $156.0 million, or $1.41 per diluted common share, up from $125.0 million, or $1.10 per diluted common share, in the second quarter of 2023. On a non-GAAP basis, net income available to common shareholders was $176.6 million for the second quarter of 2024.
Stifel’s asset management segment saw record revenues, increasing by 19% compared to the previous year. Advisory revenues also experienced substantial growth, surging by 50%. The Institutional Group reported significant progress, with net revenues of $390.7 million, a considerable rise from $277.5 million in the second quarter of 2023. The group’s pre-tax net income was $48.8 million, a stark contrast to the pre-tax net loss of $11.6 million recorded in the same period last year.
The company’s balance sheet remained robust, with record client assets totaling $474.1 billion, up 14% year-over-year. Stifel highlighted the financial strength of the firm was further enhanced by the addition of 42 financial advisors during the quarter, which included 13 experienced employee advisors and one experienced independent advisor.
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