Stifel Financial hits new high in client assets

Stifel Financial hits new high in client assets
Since 2014, the firm's global wealth management revenue has grown by 150 percent.
JAN 24, 2024

Stifel Financial Corp. reported Wednesday morning that its wealth management franchise ended last year with a flourish, hitting a new high in client assets under management at $444 billion at the end of last month, a year-over-year increase of 14 percent.

Stifel, with 2,386 financial advisors, also saw a jump in recruited financial advisors last year: It reported adding 40 financial advisors, including 13 experienced advisors with total trailing 12-month production, meaning total fees and commissions, of $8.1 million, according to the company.

Stifel's global wealth management group reported record net revenue of $766 million for the three months ended December 31, compared to $744.3 million during the fourth quarter of 2022, an increase of 2.9 percent. Pretax net income was $301.4 million, compared with $317.1 million in the fourth quarter of 2022, a drop of 5 percent.

Meanwhile, Stifel Financial shares hit a new 52-week high in price Thursday, and were trading at $74.06 at 2:30 p.m., an increase of almost 5 percent for the day.

"I want to emphasize that our global wealth segment has been the long-term growth engine of our firm and is a cornerstone of Stifel's success," CEO and chairman Ron Kruszewski said during a conference call with investors and analysts Wednesday morning. "Our wealth management segment has posted 21 consecutive years of record revenue as our focus on recruiting, serving our clients, respecting the entrepreneurial spirit of our advisors, and growing client assets has been fundamental to our success."

Since 2014, Stifel's global wealth management revenue has increased 150 percent, while its portion of recurring revenue has increased from 44 percent to 78 percent, Kruszewski added.

Stifel reiterated that it had taken a $67 million legal charge that it had previously reported in the third quarter.

That charge was booked as an accrued expense, meaning a potential expense recognized on the books before it has been paid, a Stifel spokesperson wrote in an email. "We said in the third quarter when it was first announced, the nonrecurring legal charge was primarily the result of the [Security and Exchange Commission's] industry-wide review of off-channel communications," the spokesperson added.

For almost two years, the SEC has been cracking down on big banks and brokerages for failing to monitor and preserve their employees’ messages on WhatsApp and other unauthorized platforms.

AI, health care and trade logistics will be themes to watch in 2024, says BlackRock strategist

Latest News

LPL building out alts, banking services to chase wirehouse advisors, new CEO says
LPL building out alts, banking services to chase wirehouse advisors, new CEO says

New chief executive Rich Steinmeier replaced Dan Arnold on October 1.

Franklin Templeton CEO vows to "do what's right" amid record outflows
Franklin Templeton CEO vows to "do what's right" amid record outflows

The global firm is navigating a crisis of confidence as an SEC and DOJ probe into its Western Asset Management business sparked a historic $37B exodus.

For asset managers, easy experience is key to winning advisors' businesses
For asset managers, easy experience is key to winning advisors' businesses

Beyond returns, asset managers have to elevate their relationship with digital applications and a multichannel strategy, says JD Power.

Why retaining HNW clients ultimately comes down to one basic thing
Why retaining HNW clients ultimately comes down to one basic thing

New survey finds varied levels of loyalty to advisors by generation.

Stocks drop as investors digest Microsoft, Meta earnings
Stocks drop as investors digest Microsoft, Meta earnings

Busy day for results, key data give markets concerns.

SPONSORED Out with the old and in with the new: a 50% private markets portfolio

A great man died recently, but this did not make headlines. In fact, it barely even made the news. Maybe it’s because many have already mourned the departure of his greatest legacy: the 60/40 portfolio.

SPONSORED Destiny Wealth Partners: RIA Team of the Year shares keys to success

Discover the award-winning strategies behind Destiny Wealth Partners' client-centric approach.