March 4, 2024



Stifel Financial Report other a quarter record revenue its global wealth management unit on Wednesday, and sends a message to advisers seeking stability two banks collapsed: Consider looking here.

While revenue and profits were below year-ago levels across the firm as Stifel’s investment banking business continued to struggle in a depressed deal market, the firm’s steadily growing wealth franchise saw it hire 49 new people during the quarter. Advisors, including 20 experienced advisors – translates to a net gain of 6 advisors.

“Our recruiting pipeline remains strong, and we believe the stability of our platform will further enhance our position as the destination of choice for high-quality financial advisors,” Chief Financial Officer Jim swamp said on an earnings call.

The St. Louis-based regional company and investment bank also reported earnings $1.2 billion Deposits rose in the first quarter, and it said only 15% of deposits were uninsured – a stark contrast to some regional peers. first republic lost It held $102 billion in client deposits last quarter and said about 10% of its wealth managers had fled since March, following news that about two-thirds of its deposits were uninsured.

“We have a strong liquidity position with ample cash levels and low-cost borrowing capacity, as well as high-quality relationship-oriented deposits,” Stifel Chairman and Chief Executive Officer Ron Kruszewski said in a conference call.

He added, “Ninety percent of our deposits come from wealth management clients, more specifically the cash they generate from their investment accounts.”

From its strengths, Kruszewski said, the firm “opportunistically” hired some Credit Suisse bankers for its institutional group as it prepared for better conditions in that market and “hired some high-quality Talents”.

The company slightly missed Wall Street analysts’ expectations, as non-GAAP diluted earnings per share available to shareholders came in at $1.40, 3% below expectations consensus $1.45.

“Stifel demonstrates the strength and stability of the Wealth First franchise,” Bloomberg Intelligence analyst Neil Sipes said in an interview, adding that the surge in deposits appeared to “mirror the Wealth First franchise’s And some opportunistic hiring — most of the growth is actually coming from enterprise customers… I think that bodes well for them. ”

To see the highlights of Stifel’s first-quarter earnings, scroll down the slideshow. In response to reports of the company’s fourth-quarter earnings, Click here. Looking at the third quarter results, Click here.