Stifel Reports Third Quarter 2024 Results
Stifel Financial reported strong Q3 2024 results with net revenues of $1.2 billion, up 17% from Q3 2023. Net income available to common shareholders reached $149.2 million, or $1.34 per diluted share, compared to $58.8 million ($0.52/share) in Q3 2023. Investment banking revenues surged 66%, while asset management revenues hit record levels, up 15%. The company's client assets grew 20% to $496.3 billion. Global Wealth Management achieved record revenues of $827.1 million, and the Institutional Group reported net revenues of $372.4 million with pre-tax income of $41.8 million.
Stifel Financial ha riportato risultati solidi per il terzo trimestre del 2024, con ricavi netti di 1,2 miliardi di dollari, con un aumento del 17% rispetto al terzo trimestre del 2023. Il reddito netto disponibile per gli azionisti comuni ha raggiunto 149,2 milioni di dollari, pari a 1,34 dollari per azione diluita, rispetto ai 58,8 milioni di dollari (0,52 dollari/azione) nel terzo trimestre del 2023. I ricavi dall'investment banking sono aumentati del 66%, mentre i ricavi della gestione patrimoniale hanno raggiunto livelli record, con un incremento del 15%. Le attività dei clienti dell'azienda sono cresciute del 20%, arrivando a 496,3 miliardi di dollari. La Divisione Global Wealth Management ha raggiunto ricavi record di 827,1 milioni di dollari, e il Gruppo Istituzionale ha riportato ricavi netti di 372,4 milioni di dollari con un reddito ante imposte di 41,8 milioni di dollari.
Stifel Financial reportó resultados sólidos para el tercer trimestre de 2024, con ingresos netos de 1.2 mil millones de dólares, un aumento del 17% en comparación con el tercer trimestre de 2023. El ingreso neto disponible para los accionistas comunes alcanzó 149.2 millones de dólares, o 1.34 dólares por acción diluida, en comparación con 58.8 millones de dólares (0.52 dólares/acción) en el tercer trimestre de 2023. Los ingresos por banca de inversión aumentaron un 66%, mientras que los ingresos por gestión de activos alcanzaron niveles récord, con un incremento del 15%. Los activos de los clientes de la empresa crecieron un 20%, alcanzando 496.3 mil millones de dólares. La División de Global Wealth Management alcanzó ingresos récord de 827.1 millones de dólares, y el Grupo Institucional reportó ingresos netos de 372.4 millones de dólares con un ingreso antes de impuestos de 41.8 millones de dólares.
Stifel Financial는 2024년 3분기 강력한 실적을 발표했으며, 순수익은 12억 달러로 2023년 3분기 대비 17% 증가했습니다. 보통주 주주에게 귀속된 순이익은 1억 4920만 달러, 즉 희석주당 1.34달러에 도달했으며, 2023년 3분기에는 5880만 달러(주당 0.52달러)였습니다. 투자은행 부문 수익은 66% 증가했으며, 자산 관리 수익은 15% 상승하여 기록적인 수준에 도달했습니다. 회사의 고객 자산은 4963억 달러로 20% 성장했습니다. 글로벌 자산관리 부문은 8억 2710만 달러의 기록적인 수익을 이뤘고, 기관 그룹은 3억 7240만 달러의 순수익과 함께 세전 수익으로 4180만 달러를 보고했습니다.
Stifel Financial a annoncé de solides résultats pour le troisième trimestre 2024, avec des revenus nets de 1,2 milliard de dollars, en hausse de 17 % par rapport au troisième trimestre 2023. Le résultat net disponible pour les actionnaires ordinaires a atteint 149,2 millions de dollars, soit 1,34 dollar par action diluée, contre 58,8 millions de dollars (0,52 dollar/action) au troisième trimestre 2023. Les revenus de la banque d'investissement ont bondi de 66 %, tandis que les revenus de la gestion d'actifs ont atteint des niveaux record, en hausse de 15 %. Les actifs clients de l'entreprise ont augmenté de 20 %, atteignant 496,3 milliards de dollars. La division Global Wealth Management a réalisé des revenus record de 827,1 millions de dollars, et le groupe Institutionnel a rapporté des revenus nets de 372,4 millions de dollars avec un revenu avant impôt de 41,8 millions de dollars.
Stifel Financial hat solide Ergebnisse für das dritte Quartal 2024 gemeldet, mit Nettoerlösen von 1,2 Milliarden Dollar, was einem Anstieg von 17 % im Vergleich zum dritten Quartal 2023 entspricht. Der den Aktionären der Stammaktien zur Verfügung stehende Nettoertrag wurde auf 149,2 Millionen Dollar oder 1,34 Dollar pro verwässerter Aktie gesteigert, im Vergleich zu 58,8 Millionen Dollar (0,52 Dollar/Aktie) im dritten Quartal 2023. Die Einnahmen aus der Investmentbanking-Sparte stiegen um 66 %, während die Erträge aus dem Asset Management einen Rekordwert von 15 % erreichten. Die Kundenvermögen des Unternehmens wuchsen um 20 % auf 496,3 Milliarden Dollar. Der Bereich Global Wealth Management erzielte Rekordumsätze von 827,1 Millionen Dollar, und die Institutionelle Gruppe berichtete von Nettoerlösen von 372,4 Millionen Dollar sowie einem Vorsteuergewinn von 41,8 Millionen Dollar.
- Net revenues increased 17% to $1.2 billion, second-highest quarterly revenue
- Net income per share increased 150% to $1.34
- Investment banking revenues grew 66% year-over-year
- Record client assets of $496.3 billion, up 20%
- Asset management revenues reached record levels, up 15%
- Tangible book value per share increased 12% to $33.62
- Net interest income decreased 11% in Global Wealth Management segment
- Higher litigation-related expenses impacted non-compensation operating expenses
- Pre-tax margin in Global Wealth Management declined to 36.5% from 38.8%
Insights
Strong quarterly performance with
Notable strength in capital raising (up
The results demonstrate Stifel's successful diversification strategy and market positioning. Strong performance across both Global Wealth Management and Institutional Group segments indicates resilient business model. The recruitment of 28 financial advisors and
The stabilization of net interest income and improved investment banking metrics point to favorable market conditions. The company's ability to maintain expense discipline while investing in growth positions it well for continued expansion. The positive outlook for Q4 2024 and 2025 indicates sustained business momentum.
ST. LOUIS, Oct. 23, 2024 (GLOBE NEWSWIRE) -- Stifel Financial Corp. (NYSE: SF) today reported net revenues of
Ronald J. Kruszewski, Chairman and Chief Executive Officer, said “The third quarter represented our second highest quarterly net revenue, an increase of
Highlights
- The Company reported net revenues of
$1.2 billion , the second best revenue quarter in its history, driven by higher investment banking revenues, asset management revenues, and transactional revenues, partially offset by lower net interest income. - Non-GAAP net income available to common shareholders of
$1.50 per diluted common share was negatively impacted by elevated provisions for legal matters of$0.10 per diluted common share (after-tax). - Investment banking revenues increased
66% over the year-ago quarter, driven by higher capital raising and advisory revenues.- Capital raising revenues increased
114% over the year-ago quarter. - Advisory revenues increased
41% over the year-ago quarter.
- Capital raising revenues increased
- Record asset management revenues, up
15% over the year-ago quarter. - Record client assets of
$496.3 billion , up20% over the year-ago quarter. - Recruited 28 financial advisors during the quarter, including 13 experienced employee advisors.
- Non-GAAP pre-tax margin of
19.2% as the Company maintained its focus on expense discipline, while continuing to invest in the business. - Annualized return on tangible common equity (ROTCE) (5) of
20% . - Tangible book value per common share (7) of
$33.62 , up12% from prior year.
| Financial Summary (Unaudited) | ||||||||||||
| (000s) | 3Q 2024 | 3Q 2023 | 9m 2024 | 9m 2023 | ||||||||
| GAAP Financial Highlights: | ||||||||||||
| Net revenues | $ | 1,224,668 | $ | 1,045,051 | $ | 3,605,638 | $ | 3,202,565 | ||||
| Net income (1) | $ | 149,185 | $ | 58,840 | $ | 459,413 | $ | 332,091 | ||||
| Diluted EPS (1) | $ | 1.34 | $ | 0.52 | $ | 4.16 | $ | 2.91 | ||||
| Comp. ratio | 58.6 | % | 58.7 | % | 58.8 | % | 58.7 | % | ||||
| Non-comp. ratio | 23.7 | % | 30.8 | % | 22.8 | % | 25.7 | % | ||||
| Pre-tax margin | 17.7 | % | 10.5 | % | 18.4 | % | 15.6 | % | ||||
| Non-GAAP Financial Highlights: | ||||||||||||
| Net revenues | $ | 1,225,351 | $ | 1,045,028 | $ | 3,606,330 | $ | 3,202,539 | ||||
| Net income (1) (2) | $ | 166,270 | $ | 67,413 | $ | 506,186 | $ | 364,937 | ||||
| Diluted EPS (1) (2) | $ | 1.50 | $ | 0.60 | $ | 4.58 | $ | 3.20 | ||||
| Comp. ratio (2) | 58.0 | % | 58.0 | % | 58.0 | % | 58.0 | % | ||||
| Non-comp. ratio (2) | 22.8 | % | 30.2 | % | 22.1 | % | 24.9 | % | ||||
| Pre-tax margin (3) | 19.2 | % | 11.8 | % | 19.9 | % | 17.1 | % | ||||
| ROCE (4) | 13.7 | % | 5.8 | % | 14.4 | % | 10.4 | % | ||||
| ROTCE (5) | 19.5 | % | 8.5 | % | 20.7 | % | 15.1 | % | ||||
| Global Wealth Management (assets and loans in millions) | ||||||||||||
| Net revenues | $ | 827,116 | $ | 768,558 | $ | 2,418,751 | $ | 2,283,934 | ||||
| Pre-tax net income | $ | 301,703 | $ | 298,449 | $ | 891,624 | $ | 914,462 | ||||
| Total client assets | $ | 496,298 | $ | 412,458 | ||||||||
| Fee-based client assets | $ | 190,771 | $ | 150,982 | ||||||||
| Bank loans (6) | $ | 20,633 | $ | 20,435 | ||||||||
| Institutional Group | ||||||||||||
| Net revenues | $ | 372,401 | $ | 256,888 | $ | 1,114,498 | $ | 867,025 | ||||
| Equity | $ | 222,459 | $ | 144,764 | $ | 646,570 | $ | 508,371 | ||||
| Fixed Income | $ | 149,942 | $ | 112,124 | $ | 467,928 | $ | 358,654 | ||||
| Pre-tax net income/ (loss) | $ | 41,797 | ($ | 27,804 | ) | $ | 127,719 | ($ | 5,671 | ) | ||
| Global Wealth Management |
Global Wealth Management reported record net revenues of
Highlights
- Recruited 28 financial advisors during the quarter, including 13 experienced employee advisors, with total trailing 12 month production of
$10.5 million . - Client assets of
$496.3 billion , up20% over the year-ago quarter. - Fee-based client assets of
$190.8 billion , up26% over the year-ago quarter.
Net revenues increased
- Transactional revenues increased
16% over the year-ago quarter reflecting an increase in client activity. - Asset management revenues increased
15% over the year-ago quarter due to higher asset values and net new assets. - Net interest income decreased
11% from the year-ago quarter driven by changes in deposit mix, partially offset by higher yields on the investment portfolio and lending growth.
Total Expenses:
- Compensation expense as a percent of net revenues increased to
48.7% primarily as a result of higher compensable revenues. - Provision for credit losses decreased from the year-ago quarter primarily as a result of lower provisions in the real estate sector compared to the year-ago quarter, partially offset by growth in the loan portfolio.
- Non-compensation operating expenses as a percent of net revenues increased to
14.8% primarily as a result of higher litigation-related expenses, partially offset by revenue growth over the year-ago quarter.
| Summary Results of Operations | ||||||
| (000s) | 3Q 2024 | 3Q 2023 | ||||
| Net revenues | $ | 827,116 | $ | 768,558 | ||
| Transactional revenues | 192,727 | 165,547 | ||||
| Asset management | 382,309 | 333,088 | ||||
| Net interest income | 240,825 | 269,431 | ||||
| Investment banking | 6,217 | 3,895 | ||||
| Other income | 5,038 | (3,403 | ) | |||
| Total expenses | $ | 525,413 | $ | 470,109 | ||
| Compensation expense | 403,205 | 359,325 | ||||
| Provision for credit losses | 5,287 | 9,992 | ||||
| Non-comp. opex | 116,921 | 100,792 | ||||
| Pre-tax net income | $ | 301,703 | $ | 298,449 | ||
| Compensation ratio | 48.7 | % | 46.8 | % | ||
| Non-compensation ratio | 14.8 | % | 14.4 | % | ||
| Pre-tax margin | 36.5 | % | 38.8 | % | ||
| Institutional Group |
Institutional Group reported net revenues of
Highlights
Investment banking revenues increased
- Advisory revenues increased from the year-ago quarter driven by higher levels of completed advisory transactions.
- Fixed income capital raising revenues more than doubled over the year-ago quarter primarily driven by higher bond issuances.
- Equity capital raising revenues increased significantly over the year-ago quarter driven by higher volumes.
Fixed income transactional revenues increased
- Fixed income transactional revenues increased from the year-ago quarter driven by improved client engagement and volatility.
Equity transactional revenues increased
- Equity transactional revenues increased from the year-ago quarter primarily driven by an increase in equities trading commissions.
Total Expenses:
- Compensation expense as a percent of net revenues decreased to
60.3% primarily as a result of higher revenues. - Non-compensation operating expenses as a percent of net revenues decreased to
28.5% primarily as a result of revenue growth and expense discipline.
| Summary Results of Operations | ||||||
| (000s) | 3Q 2024 | 3Q 2023 | ||||
| Net revenues | $ | 372,401 | $ | 256,888 | ||
| Investment banking | 236,965 | 142,991 | ||||
| Advisory | 136,857 | 97,272 | ||||
| Fixed income capital raising | 49,364 | 24,670 | ||||
| Equity capital raising | 50,744 | 21,049 | ||||
| Fixed income transactional | 78,974 | 67,439 | ||||
| Equity transactional | 48,824 | 46,930 | ||||
| Other | 7,638 | (472 | ) | |||
| Total expenses | $ | 330,604 | $ | 284,692 | ||
| Compensation expense | 224,556 | 192,638 | ||||
| Non-comp. opex. | 106,048 | 92,054 | ||||
| Pre-tax net income/(loss) | $ | 41,797 | ($ | 27,804 | ) | |
| Compensation ratio | 60.3 | % | 75.0 | % | ||
| Non-compensation ratio | 28.5 | % | 35.8 | % | ||
| Pre-tax margin | 11.2 | % | (10.8 | %) | ||
| Other Matters |
Highlights
- During the third quarter, the Company’s
4.25% Senior Notes matured resulting in the retirement of the$500.0 million outstanding balance. - The Company repurchased
$20.2 million of its outstanding common stock during the third quarter. - Weighted average diluted shares outstanding decreased primarily as a result of share repurchases. The Company has repurchased 3.7 million shares under its share repurchase program since the third quarter of 2023.
- The Board of Directors declared a
$0.42 quarterly dividend per share payable on September 17, 2024 to common shareholders of record on September 3, 2024. - The Board of Directors declared a quarterly dividend on the outstanding shares of the Company’s preferred stock payable on September 17, 2024 to shareholders of record on September 3, 2024.
| 3Q 2024 | 3Q 2023 | |
| Common stock repurchases | ||
| Repurchases (000s) | ||
| Number of shares (000s) | 249 | 1,886 |
| Average price | ||
| Period end shares (000s) | 102,313 | 103,120 |
| Weighted average diluted shares outstanding (000s) | 110,994 | 113,195 |
| Effective tax rate | 26.8% | |
| Stifel Financial Corp. (8) | ||
| Tier 1 common capital ratio | ||
| Tier 1 risk based capital ratio | ||
| Tier 1 leverage capital ratio | ||
| Tier 1 capital (MM) | ||
| Risk weighted assets (MM) | ||
| Average assets (MM) | ||
| Quarter end assets (MM) | ||
| Agency | Rating | Outlook |
| Fitch Ratings | BBB+ | Stable |
| S&P Global Ratings | BBB | Stable |
Conference Call Information
Stifel Financial Corp. will host its third quarter 2024 financial results conference call on Wednesday, October 23, 2024, at 9:30 a.m. Eastern Time. The conference call may include forward-looking statements.
All interested parties are invited to listen to Stifel’s Chairman and CEO, Ronald J. Kruszewski, by dialing (866) 409-1555 and referencing conference ID 7408307. A live audio webcast of the call, as well as a presentation highlighting the Company’s results, will be available through the Company’s web site, www.stifel.com. For those who cannot listen to the live broadcast, a replay of the broadcast will be available through the above-referenced web site beginning approximately one hour following the completion of the call.
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 & Co., LLC 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.
A financial summary follows. Financial, statistical and business-related information, as well as information regarding business and segment trends, is included in the financial supplement. Both the earnings release and the financial supplement are available online in the Investor Relations section at www.stifel.com/investor-relations.
The information provided herein and in the financial supplement, including information provided on the Company’s earnings conference calls, may include certain non-GAAP financial measures. The definition of such measures or reconciliation of such measures to the comparable U.S. GAAP figures are included in this earnings release and the financial supplement, both of which are available online in the Investor Relations section at www.stifel.com/investor-relations.
Cautionary Note Regarding Forward-Looking Statements
This earnings release contains certain statements that may be deemed to be “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements in this earnings release not dealing with historical results are forward-looking and are based on various assumptions. The forward-looking statements in this earnings release are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in or implied by the statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among other things, the following possibilities: the ability to successfully integrate acquired companies or the branch offices and financial advisors; a material adverse change in financial condition; the risk of borrower, depositor, and other customer attrition; a change in general business and economic conditions; changes in the interest rate environment, deposit flows, loan demand, real estate values, and competition; changes in accounting principles, policies, or guidelines; changes in legislation and regulation; other economic, competitive, governmental, regulatory, geopolitical, and technological factors affecting the companies’ operations, pricing, and services; and other risk factors referred to from time to time in filings made by Stifel Financial Corp. with the Securities and Exchange Commission. For information about the risks and important factors that could affect the Company’s future results, financial condition and liquidity, see “Risk Factors” in Part I, Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. Forward-looking statements speak only as to the date they are made. The Company disclaims any intent or obligation to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.
| Summary Results of Operations (Unaudited) | |||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||
| (000s, except per share amounts) | 9/30/2024 | 9/30/2023 | % Change | 6/30/2024 | % Change | 9/30/2024 | 9/30/2023 | % Change | |||||||||
| Revenues: | |||||||||||||||||
| Commissions | $ | 183,445 | $ | 165,075 | 11.1 | $ | 183,317 | 0.1 | $ | 552,238 | $ | 499,983 | 10.5 | ||||
| Principal transactions | 137,089 | 114,841 | 19.4 | 153,574 | (10.7 | ) | 429,677 | 336,063 | 27.9 | ||||||||
| Investment banking | 243,182 | 146,887 | 65.6 | 233,281 | 4.2 | 690,412 | 525,591 | 31.4 | |||||||||
| Asset management | 382,616 | 333,127 | 14.9 | 380,757 | 0.5 | 1,130,849 | 968,960 | 16.7 | |||||||||
| Other income | 18,705 | 459 | nm | 16,180 | 15.6 | 39,835 | (940 | ) | nm | ||||||||
| Operating revenues | 965,037 | 760,389 | 26.9 | 967,109 | (0.2 | ) | 2,843,011 | 2,329,657 | 22.0 | ||||||||
| Interest revenue | 510,823 | 505,198 | 1.1 | 498,152 | 2.5 | 1,515,803 | 1,439,532 | 5.3 | |||||||||
| Total revenues | 1,475,860 | 1,265,587 | 16.6 | 1,465,261 | 0.7 | 4,358,814 | 3,769,189 | 15.6 | |||||||||
| Interest expense | 251,192 | 220,536 | 13.9 | 247,329 | 1.6 | 753,176 | 566,624 | 32.9 | |||||||||
| Net revenues | 1,224,668 | 1,045,051 | 17.2 | 1,217,932 | 0.6 | 3,605,638 | 3,202,565 | 12.6 | |||||||||
| Non-interest expenses: | |||||||||||||||||
| Compensation and benefits | 718,065 | 613,287 | 17.1 | 722,719 | (0.6 | ) | 2,120,479 | 1,880,144 | 12.8 | ||||||||
| Non-compensation operating expenses | 289,945 | 322,335 | (10.0 | ) | 268,319 | 8.1 | 822,916 | 821,724 | 0.1 | ||||||||
| Total non-interest expenses | 1,008,010 | 935,622 | 7.7 | 991,038 | 1.7 | 2,943,395 | 2,701,868 | 8.9 | |||||||||
| Income before income taxes | 216,658 | 109,429 | 98.0 | 226,894 | (4.5 | ) | 662,243 | 500,697 | 32.3 | ||||||||
| Provision for income taxes | 58,153 | 41,268 | 40.9 | 61,600 | (5.6 | ) | 174,869 | 140,645 | 24.3 | ||||||||
| Net income | 158,505 | 68,161 | 132.5 | 165,294 | (4.1 | ) | 487,374 | 360,052 | 35.4 | ||||||||
| Preferred dividends | 9,320 | 9,321 | (0.0 | ) | 9,321 | (0.0 | ) | 27,961 | 27,961 | 0.0 | |||||||
| Net income available to common shareholders | $ | 149,185 | $ | 58,840 | 153.5 | $ | 155,973 | (4.4 | ) | $ | 459,413 | $ | 332,091 | 38.3 | |||
| Earnings per common share: | |||||||||||||||||
| Basic | $ | 1.43 | $ | 0.55 | 160.0 | $ | 1.50 | (4.7 | ) | $ | 4.41 | $ | 3.09 | 42.7 | |||
| Diluted | $ | 1.34 | $ | 0.52 | 157.7 | $ | 1.41 | (5.0 | ) | $ | 4.16 | $ | 2.91 | 43.0 | |||
| Cash dividends declared per common share | $ | 0.42 | $ | 0.36 | 16.7 | $ | 0.42 | 0.0 | $ | 1.26 | $ | 1.08 | 16.7 | ||||
| Weighted average number of common shares outstanding: | |||||||||||||||||
| Basic | 103,966 | 106,068 | (2.0 | ) | 104,150 | (0.2 | ) | 104,135 | 107,580 | (3.2 | ) | ||||||
| Diluted | 110,994 | 113,195 | (1.9 | ) | 110,285 | 0.6 | 110,457 | 114,170 | (3.3 | ) | |||||||
| Non-GAAP Financial Measures (9) | ||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||
| (000s, except per share amounts) | 9/30/2024 | 9/30/2023 | 9/30/2024 | 9/30/2023 | ||||||||
| GAAP net income | $ | 158,505 | $ | 68,161 | $ | 487,374 | $ | 360,052 | ||||
| Preferred dividend | 9,320 | 9,321 | 27,961 | 27,961 | ||||||||
| Net income available to common shareholders | 149,185 | 58,840 | 459,413 | 332,091 | ||||||||
| Non-GAAP adjustments: | ||||||||||||
| Merger-related (10) | 17,950 | 13,771 | 43,925 | 46,301 | ||||||||
| Restructuring and severance (11) | 1,261 | — | 11,222 | — | ||||||||
| Provision for income taxes (12) | (2,126 | ) | (5,198 | ) | (8,374 | ) | (13,455 | ) | ||||
| Total non-GAAP adjustments | 17,085 | 8,573 | 46,773 | 32,846 | ||||||||
| Non-GAAP net income available to common shareholders | $ | 166,270 | $ | 67,413 | $ | 506,186 | $ | 364,937 | ||||
| Weighted average diluted shares outstanding | 110,994 | 113,195 | 110,457 | 114,170 | ||||||||
| GAAP earnings per diluted common share | $ | 1.42 | $ | 0.60 | $ | 4.42 | $ | 3.15 | ||||
| Non-GAAP adjustments | 0.16 | 0.08 | 0.42 | 0.29 | ||||||||
| Non-GAAP earnings per diluted common share | $ | 1.58 | $ | 0.68 | $ | 4.84 | $ | 3.44 | ||||
| GAAP earnings per diluted common share available to common shareholders | $ | 1.34 | $ | 0.52 | $ | 4.16 | $ | 2.91 | ||||
| Non-GAAP adjustments | 0.16 | 0.08 | 0.42 | 0.29 | ||||||||
| Non-GAAP earnings per diluted common share available to common shareholders | $ | 1.50 | $ | 0.60 | $ | 4.58 | $ | 3.20 | ||||
| GAAP to Non-GAAP Reconciliation (9) | ||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||
| (000s) | 9/30/2024 | 9/30/2023 | 9/30/2024 | 9/30/2023 | ||||||||
| GAAP compensation and benefits | $ | 718,065 | $ | 613,287 | $ | 2,120,479 | $ | 1,880,144 | ||||
| As a percentage of net revenues | 58.6 | % | 58.7 | % | 58.8 | % | 58.7 | % | ||||
| Non-GAAP adjustments: | ||||||||||||
| Merger-related (10) | (6,101 | ) | (7,171 | ) | (17,398 | ) | (22,947 | ) | ||||
| Restructuring and severance (11) | (1,261 | ) | — | (11,222 | ) | — | ||||||
| Total non-GAAP adjustments | (7,362 | ) | (7,171 | ) | (28,620 | ) | (22,947 | ) | ||||
| Non-GAAP compensation and benefits | $ | 710,703 | $ | 606,116 | $ | 2,091,859 | $ | 1,857,197 | ||||
| As a percentage of non-GAAP net revenues | 58.0 | % | 58.0 | % | 58.0 | % | 58.0 | % | ||||
| GAAP non-compensation expenses | $ | 289,945 | $ | 322,335 | $ | 822,916 | $ | 821,724 | ||||
| As a percentage of net revenues | 23.7 | % | 30.8 | % | 22.8 | % | 25.7 | % | ||||
| Non-GAAP adjustments: | ||||||||||||
| Merger-related (10) | (11,166 | ) | (6,623 | ) | (25,835 | ) | (23,380 | ) | ||||
| Non-GAAP non-compensation expenses | $ | 278,779 | $ | 315,712 | $ | 797,081 | $ | 798,344 | ||||
| As a percentage of non-GAAP net revenues | 22.8 | % | 30.2 | % | 22.1 | % | 24.9 | % | ||||
| Total adjustments | $ | 19,211 | $ | 13,771 | $ | 55,147 | $ | 46,301 | ||||
| Footnotes | |
| (1) | Represents available to common shareholders. |
| (2) | Reconciliations of the Company’s GAAP results to these non-GAAP measures are discussed within and under “Non-GAAP Financial Measures” and “GAAP to Non-GAAP Reconciliation.” |
| (3) | Non-GAAP pre-tax margin is calculated by adding total non-GAAP adjustments and dividing it by non-GAAP net revenues. See “Non-GAAP Financial Measures” and “GAAP to Non-GAAP Reconciliation.” |
| (4) | Return on average common equity (“ROCE”) is calculated by dividing annualized net income applicable to common shareholders by average common shareholders’ equity or, in the case of non-GAAP ROCE, calculated by dividing non-GAAP net income applicable to commons shareholders by average common shareholders’ equity. |
| (5) | Return on average tangible common equity (“ROTCE”) is calculated by dividing annualized net income applicable to common shareholders by average tangible shareholders’ equity or, in the case of non-GAAP ROTCE, calculated by dividing non-GAAP net income applicable to common shareholders by average tangible common equity. Tangible common equity, also a non-GAAP financial measure, equals total common shareholders’ equity less goodwill and identifiable intangible assets and the deferred taxes on goodwill and intangible assets. Average deferred taxes on goodwill and intangible assets was |
| (6) | Includes loans held for sale. |
| (7) | Tangible book value per common share represents shareholders’ equity (excluding preferred stock) divided by period end common shares outstanding. Tangible common shareholders’ equity equals total common shareholders’ equity less goodwill and identifiable intangible assets and the deferred taxes on goodwill and intangible assets. |
| (8) | Capital ratios are estimates at time of the Company’s earnings release, October 23, 2024. |
| (9) | The Company prepares its Consolidated Financial Statements using accounting principles generally accepted in the United States (U.S. GAAP). The Company may disclose certain “non-GAAP financial measures” in the course of its earnings releases, earnings conference calls, financial presentations and otherwise. The Securities and Exchange Commission defines a “non-GAAP financial measure” as a numerical measure of historical or future financial performance, financial position, or cash flows that is subject to adjustments that effectively exclude, or include, amounts from the most directly comparable measure calculated and presented in accordance with U.S. GAAP. Non-GAAP financial measures disclosed by the Company are provided as additional information to analysts, investors and other stakeholders in order to provide them with greater transparency about, or an alternative method for assessing the Company’s financial condition or operating results. These measures are not in accordance with, or a substitute for U.S. GAAP, and may be different from or inconsistent with non-GAAP financial measures used by other companies. Whenever the Company refers to a non-GAAP financial measure, it will also define it or present the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP, along with a reconciliation of the differences between the non-GAAP financial measure it references and such comparable U.S. GAAP financial measure. |
| (10) | Primarily related to charges attributable to integration-related activities, signing bonuses, amortization of restricted stock awards, debentures, and promissory notes issued as retention, additional earn-out expense, and amortization of intangible assets acquired. These costs were directly related to acquisitions of certain businesses and are not representative of the costs of running the Company’s on-going business. |
| (11) | The Company recorded severance costs associated with workforce reductions in certain of its foreign subsidiaries. |
| (12) | Primarily represents the Company’s effective tax rate for the period applied to the non-GAAP adjustments. |
Media Contact: Neil Shapiro (212) 271-3447 | Investor Contact: Joel Jeffrey (212) 271-3610 | www.stifel.com/investor-relations
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