Stifel Reports February 2024 Operating Data

Rhea-AI Summary

Stifel Financial Corp. (NYSE: SF) reported record total client assets of $458 billion, with fee-based assets reaching $172 billion. Despite a 3% increase in client assets from the prior month, delays in deal closings pose a challenge for the business.

Positive

• Record total client assets of $458 billion reported by Stifel Financial Corp.
• Fee-based assets hit $172 billion, marking a 3% increase from the previous month.
• Challenges persist with delays in deal closings affecting the business.

Negative

• Delays in deal closings remain a headwind for the business.
• Bank loans, net decreased by 6% to $19,594 million.

Insights

Market Research Analyst

The reported increase in total client assets under management (AUM) by Stifel Financial Corp. is a positive indicator of the company's growth trajectory and its ability to attract and retain clients. A rise in fee-based assets is particularly noteworthy as these generate stable, recurring revenue, which is less sensitive to market fluctuations compared to transaction-based income. The 16% year-over-year growth in fee-based client assets suggests a strategic shift towards a more predictable revenue model, which could be appealing to investors seeking stability in their portfolio.

However, the 6% decline in net bank loans may signal a tightening in lending conditions or a decrease in loan demand, which could impact interest income. The modest increase in client money market and insured products indicates a conservative stance by clients, possibly reflecting broader economic uncertainties. These mixed signals should be carefully assessed by stakeholders to understand their potential influence on the company's financial performance.

Financial Analyst

While Stifel's report highlights short-term growth in AUM, investors should remain cautious about extrapolating these results to predict long-term earnings performance. The mention of delays in deal closings within investment banking could hint at potential revenue volatility in this segment. It is essential to consider the broader investment banking industry trends, as well as Stifel's position within the market, to evaluate the likelihood of overcoming these headwinds.

Additionally, the 1% increase in client money market and insured products, despite being modest, may reflect a defensive move by clients amidst market uncertainty. This behavior could affect the company's risk profile and investment strategies. Investors should monitor subsequent earnings reports and any strategic adjustments made by the company in response to these operational challenges.

Economist

The data provided by Stifel Financial Corp. offers a snapshot of the firm's financial health in a specific period, yet it is essential to consider the macroeconomic context. Strong equity markets, as indicated by the increase in AUM, are often correlated with broader economic growth and investor confidence. Nevertheless, the performance of financial advisors and the overall market conditions are subject to economic cycles and geopolitical events that could alter investment patterns.

Investors should analyze the company's performance in relation to economic indicators such as interest rates, inflation and GDP growth. These factors could influence client investment behaviors and the company's ability to sustain growth in AUM. The reported figures must be weighed against economic forecasts and market sentiment to gauge the potential impact on Stifel's future earnings and stock performance.

ST. LOUIS, March 28, 2024 (GLOBE NEWSWIRE) -- Stifel Financial Corp. (NYSE: SF) today reported selected operating results for February 29, 2024 in an effort to provide timely information to investors on certain key performance metrics. Due to the limited nature of this data, a consistent correlation to earnings should not be assumed.

Ronald J. Kruszewski, Chairman and Chief Executive Officer, said, “In February, total client assets under management climbed to a record $458 billion, including a record $172 billion in fee-based assets. This represents a three percent increase from the prior month, driven by strong equity markets and financial advisor recruiting. Client money market and insured products increased 1% from January, despite modest seasonal cash sorting. While the environment for investment banking continues to improve, delays in deal closings remain a headwind for the business.”

Selected Operating Data (Unaudited)
	As of							% Change
(millions)	2/29/2024		2/28/2023		1/31/2024			2/28/2023		1/31/2024
Total client assets	$	457,925	$	401,317	$	446,724		14%		3%
Fee-based client assets	$	172,086	$	148,015	$	166,682		16%		3%
Private Client Group fee-based client assets	$	151,345	$	130,270	$	146,729		16%		3%
Bank loans, net (includes loans held for sale)	$	19,594	$	20,818	$	19,525		(6)%		0%
Client money market and insured product (1)	$	26,299	$	26,948	$	26,144		(2)%		1%

(1) Includes Sweep deposits, Smart Rate deposits, Third-party Bank Sweep Program, and Other Sweep cash.

Company Information

Stifel Financial Corp. (NYSE: SF) is a financial services holding company headquartered in St. Louis, Missouri, that conducts its banking, securities, and financial services business through several wholly owned subsidiaries. Stifel’s broker-dealer clients are served in the United States through Stifel, Nicolaus & Company, Incorporated, including its Eaton Partners and Miller Buckfire business divisions; Keefe, Bruyette & Woods, Inc.; and Stifel Independent Advisors, LLC; in Canada through Stifel Nicolaus Canada Inc.; and in the United Kingdom and Europe through Stifel Nicolaus Europe Limited. The Company’s broker-dealer affiliates provide securities brokerage, investment banking, trading, investment advisory, and related financial services to individual investors, professional money managers, businesses, and municipalities. Stifel Bank and Stifel Bank & Trust offer a full range of consumer and commercial lending solutions. Stifel Trust Company, N.A. and Stifel Trust Company Delaware, N.A. offer trust and related services. To learn more about Stifel, please visit the Company’s website at www.stifel.com. For global disclosures, please visit www.stifel.com/investor-relations/press-releases.

Media Contact
Neil Shapiro, (212) 271-3447

Investor Relations Contact
Joel Jeffrey, (212) 271-3610

FAQ

What are the total client assets reported by Stifel Financial Corp. (NYSE: SF)?

Stifel Financial Corp. reported total client assets of $457,925 million.

What is the amount of fee-based client assets recorded by Stifel Financial Corp. (NYSE: SF)?

Stifel Financial Corp. reported fee-based client assets of $172,086 million.

What was the percentage change in total client assets from the prior month for Stifel Financial Corp. (NYSE: SF)?

Total client assets increased by 3% from the previous month.

What challenges are highlighted for Stifel Financial Corp. (NYSE: SF) in the PR?

Delays in deal closings are noted as a headwind for the business.

How did bank loans, net perform for Stifel Financial Corp. (NYSE: SF)?

Bank loans, net decreased by 6% to $19,594 million.