Stifel Financial (SF) Q4 2024 earnings summary

Executive summary

• Achieved record net revenue of $4.97 billion for 2024, driven by Global Wealth Management and a strong rebound in Institutional segment revenue, with EPS up 46% year-over-year to $6.25 (GAAP) and $6.81 (Non-GAAP).

• Net earnings reached $694 million (GAAP), with pre-tax margin exceeding 20% (Non-GAAP) and return on tangible common equity at 23%.

• Fourth quarter net revenue was $1.36 billion, up 19% year-over-year, with record client assets and a 33% increase in Institutional revenue.

• Exited 2024 in a stronger position, with optimism for 2025 due to favorable market and regulatory conditions.

• Announced acquisition of Bryan, Garnier & Co. and increased common dividend by 10%.

Financial highlights

• Q4 net revenue reached $1.36 billion, up 19% year-over-year; FY 2024 net revenue was $4.97 billion, up 14% year-over-year.

• Q4 net income was $234.7 million (+53% YoY); FY 2024 net income was $694.1 million (+43% YoY).

• Q4 EPS was $2.23 (Non-GAAP), up nearly 50% year-over-year; FY 2024 diluted EPS was $6.25 (GAAP), up 46% year-over-year.

• Asset management revenue grew 18% year-over-year for FY and 23% in Q4; client assets reached $501.4 billion (+13% YoY).

• Compensation ratio was 58% for Q4 and FY; non-comp expenses were elevated due to higher provisions and legal costs.

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.

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

• Compensation ratio guidance: 56%–58%; pre-tax margin projected to rise to 22.3%.

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