Stifel Reports Record Fourth Quarter and Full-Year Results
Stifel Financial Corp. (NYSE: SF) achieved record net revenues of $3.8 billion for the year, marking a 12.4% increase over 2019, alongside quarterly net revenues of $1.1 billion, up 20.0% from Q3 2020.
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Rhea-AI Summary
Stifel Financial Corp. (NYSE: SF) achieved record net revenues of $3.8 billion for the year, marking a 12.4% increase over 2019, alongside quarterly net revenues of $1.1 billion, up 20.0% from Q3 2020. The company recorded net income of $180.8 million or $1.55 per diluted share, a 43.7% increase year-over-year. Non-GAAP earnings per share hit $1.67, further demonstrating financial strength. Stifel also announced a 32% increase in dividends to $0.15 per share, reflecting strong performance in brokerage and capital raising despite a decline in net interest income.
Positive
- Record annual net revenues of $3.8 billion, a 12.4% increase over 2019.
- Quarterly net revenues of $1.1 billion, a 20.0% increase from Q3 2020.
- Record net income of $180.8 million, or $1.55 per diluted share, a 43.7% year-over-year increase.
- Non-GAAP net income available to shareholders of $195.1 million, or $1.67 per diluted share.
- Increased quarterly dividend by approximately 32% to $0.15 per common share.
- Annualized return on tangible common equity at 30.8% for 2020.
Negative
- Decline in net interest income compared to previous periods.
Details
News Market Reaction – SF
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- 25th consecutive year of record net revenues of
$3.8 billion , an increase of12.4% compared with 2019. - Quarterly record net revenues of
$1.1 billion , an increase of20.0% over the third quarter of 2020. - Record quarterly net income available to common shareholders of
$180.8 million , or$1.55 per diluted common share.(1) - Record non-GAAP net income available to common shareholders of
$195.1 million , or$1.67 per diluted common share.(1) - Record client assets of
$357.4 billion , increased8.5% compared with the year-ago quarter. - Annualized return on average tangible common shareholders’ equity(2) was
30.8% . - Non-GAAP annualized return on average tangible common shareholders’ equity(2) was
33.3% . - Increasing quarterly dividend by approximately
32% to$0.15 per common share starting in first quarter of 2021.
ST. LOUIS, Jan. 29, 2021 (GLOBE NEWSWIRE) -- Stifel Financial Corp. (NYSE: SF) today reported record net income available to common shareholders of
For the three months ended December 31, 2020, the Company reported record non-GAAP net income available to common shareholders of
Chairman’s Comments
“Stifel’s performance in 2020 was a testament to the strength of our business model as we were able to navigate market challenges and generated our 25th consecutive year of record net revenue. We entered the year expecting two of our primary growth drivers to be continued strength in net interest income and advisory revenue. However, following the pandemic outbreak, Stifel and our associates were able to successfully pivot to the subsequent changes in the market environment and we finished the year with record results from our brokerage and capital raising businesses. Our record revenue also generated record non-GAAP earnings per share of
Mr. Kruszewski continued, “We entered 2021 with record recruiting and investment banking pipelines, record client assets, and more than
Fourth Quarter Review
Quarterly Highlights
- Record net revenues of
$1.1 billion , increased12.2% with the year-ago quarter, and increased20.0% sequentially. - Record net revenues in Global Wealth Management and Institutional Group segments.
- Record net income available to common shareholders of
$180.8 million , or$1.55 per diluted common share.(1) - Record non-GAAP net income available to common shareholders of
$195.1 million , or$1.67 per diluted common share.(1)
| Financial Highlights (Unaudited) | Three Months Ended | ||||||||||||||||||||||||||||||||
| ($ in 000s, except per share data) | GAAP 12/31/20 | GAAP 12/31/19 | % Change | GAAP 9/30/20 | % Change | Non- GAAP (3) 12/31/20 | Non- GAAP (3) 12/31/19 | % Change | |||||||||||||||||||||||||
| Net revenues | $ | 1,059,910 | $ | 944,251 | 12.2 | $ | 883,300 | 20.0 | $ | 1,059,883 | $ | 944,425 | 12.2 | ||||||||||||||||||||
| Net income applicable to Stifel Financial Corp. | $ | 188,469 | $ | 130,690 | 44.2 | $ | 120,527 | 56.4 | $ | 202,731 | $ | 151,442 | 33.9 | ||||||||||||||||||||
| Preferred dividends | 7,677 | 4,843 | 58.5 | 9,897 | (22.4 | ) | 7,677 | 4,843 | 58.5 | ||||||||||||||||||||||||
| Net income available to common shareholders | $ | 180,792 | $ | 125,847 | 43.7 | $ | 110,630 | 63.4 | $ | 195,054 | $ | 146,599 | 33.1 | ||||||||||||||||||||
| Earnings per diluted common share (1) | $ | 1.61 | $ | 1.12 | 43.8 | $ | 1.06 | 51.9 | $ | 1.74 | $ | 1.30 | 33.8 | ||||||||||||||||||||
| Earnings per diluted common share available to common shareholders (1) | $ | 1.55 | $ | 1.08 | 43.5 | $ | 0.97 | 59.8 | $ | 1.67 | $ | 1.26 | 32.5 | ||||||||||||||||||||
| Compensation ratio | 58.6 | % | 60.0 | % | 60.4 | % | 57.9 | % | 58.3 | % | |||||||||||||||||||||||
| Non-compensation ratio | 19.3 | % | 22.8 | % | 21.7 | % | 18.3 | % | 21.2 | % | |||||||||||||||||||||||
| Pre-tax operating margin (4) | 22.1 | % | 17.2 | % | 17.9 | % | 23.8 | % | 20.5 | % | |||||||||||||||||||||||
Net Revenues
Net revenues were a record
Brokerage Revenues
Brokerage revenues, defined as commissions and principal transactions, were
| Three Months Ended | ||||||||||||||||||||
| ($ in 000s) | 12/31/20 | 12/31/19 | % Change | |||||||||||||||||