Stifel Financial Corp (NYSE:SFpD.PFD)
$ 17.46 +0.035 (+0.2%) Market Cap: - Enterprise Value: - PE Ratio: 21.15 PB Ratio: 2.35 GF Score: 81/100

Q1 2025 Stifel Financial Corp Earnings Call Transcript

Apr 23, 2025 / 01:30PM GMT
Release Date Price: $16.78 (+1.70%)

Key Points

Positve
  • Stifel Financial Corp (SF) achieved a record first-quarter revenue of $1.3 billion, marking the highest first-quarter revenue in its history.
  • The Global Wealth Management segment saw record asset management revenue, contributing to overall revenue growth.
  • Investment banking revenues rose by 11%, driven by increases in both capital raising and advisory services.
  • The company added 52 advisors during the quarter, including nine experienced advisors, enhancing its wealth management capabilities.
  • Stifel Financial Corp (SF) maintained a strong balance sheet with a Tier 1 leverage capital ratio of 10.8% and a Tier 1 risk-based capital ratio of 17.6%.
Negative
  • The company's bottom line was negatively impacted by a significant legal charge of $180 million, affecting EPS by $1.16.
  • Net interest income fell short of expectations due to lower-than-expected loan growth and a decrease in net interest margin.
  • Market volatility and uncertainty, particularly related to tariffs and monetary policy, have slowed investor confidence and activity in certain market segments.
  • The Wealth Management segment experienced modest asset outflows and a decline in fee-based assets due to weaker equity markets.
  • Fixed income underwriting revenue declined by 9% year-on-year, primarily due to lower issuance activity from corporate credit clients.
Operator

Good day, and welcome to the Stifel Financial first-quarter 2025 financial results conference call. Today's conference is being recorded. At this time, I would like to turn the conference over to Mr. Joel Jeffrey, Head of Investor Relations. Please go ahead.

Joel Jeffrey
Stifel Financial Corp - Senior Vice President, Investor Relations

Thanks, operator. I'd like to welcome everyone to Stifel Financial's first-quarter 2025 conference call. I'm joined on the call today by our Chairman and CEO, Ron Kruszewski; our Co-Presidents, Victor Nesi and James Zemlyak; and look at our CFO, Jim Marischen.

Earlier this morning, we issued an earnings release and posted a slide deck and financial supplement to our website. It can be found on the Investor Relations page at www.stifel.com. I would note that some of the numbers that we staged throughout our presentation are presented on a non-GAAP basis, and I refer you to our reconciliation of GAAP and non-GAAP as disclosed in our press release. I would also

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