Stifel Financial (SF) Q4 2024 earnings summary

Executive summary

• Achieved record net revenue of $4.97B for 2024, driven by Global Wealth Management, Asset Management, and a strong rebound in the Institutional segment, with the latter posting its second-highest annual revenue ever.

• Net earnings reached $694M (GAAP) for 2024, with EPS up 46% year-over-year to $6.25 (GAAP) and $6.81 (Non-GAAP).

• Pre-tax margin exceeded 20% (Non-GAAP), return on tangible common equity was nearly 23%, and EPS rose 46% year-over-year.

• Exited 2024 in a stronger position, with robust recruiting pipelines and optimism for 2025 amid favorable market and regulatory conditions.

• Announced acquisition of Bryan, Garnier & Co. and a 10% increase in common dividend.

Financial highlights

• Q4 2024 net revenue reached a record $1.36B, up 19% year-over-year and 6% above consensus.

• Q4 2024 EPS was $2.23 (Non-GAAP), up nearly 50% year-over-year; Q4 2024 diluted EPS: $2.09 (GAAP), up 51% year-over-year.

• Asset management revenue hit a record, up 23% year-over-year in Q4 and 18% for FY.

• Investment banking revenue rose nearly 50% year-over-year in Q4, with advisory and capital raising as key drivers.

• Client assets reached $501.4B, up 13% year-over-year.

Outlook and guidance

• 2025 net revenue guidance: $5.25B–$5.75B; operating revenue: $4.15B–$4.55B.

• 2025 EPS guidance: $7.92, a 16% increase over 2024; targeting $8 EPS in 2025, with a path to $10 EPS as revenue approaches $6B–$6.5B and pre-tax margins near 22%.

• Net interest income expected at $1.1B–$1.2B, driven by $3B–$4B balance sheet growth.

• Compensation ratio guidance: 56%–58%; non-comp operating revenue: 19%–21%.

• Management expects to capitalize on improving market conditions in 2025 and achieve both short- and long-term targets.