Stifel Financial Corp. (SF) Bundle
A Brief History of H3
As of 2024, H3 has demonstrated significant growth and strategic development across its financial operations. The company's financial performance has shown resilience and adaptability in a challenging economic environment.
Financial Performance Overview
For the nine months ended September 30, 2024, H3 reported net revenues of $3.6 billion, an increase of 12.6% from $3.2 billion in the same period in 2023. Net income available to common shareholders rose by 38.3% to $459.4 million, or $4.16 per diluted share, compared to $332.1 million, or $2.91 per diluted share in the prior year.
Revenue Streams
The following table summarizes H3's revenue streams for the nine months ended September 30, 2024:
| Revenue Source | 2024 Revenue (in millions) | 2023 Revenue (in millions) | % Change |
|---|---|---|---|
| Commissions | $552.2 | $500.0 | 10.5% |
| Principal Transactions | $429.7 | $336.1 | 27.9% |
| Investment Banking | $674.1 | $513.5 | 31.3% |
| Interest Revenue | $1,434.9 | $1,371.8 | 4.6% |
| Other Income | $6.8 | ($10.5) | 164.8% |
Expenses and Profitability
Non-interest expenses for the nine months ended September 30, 2024, totaled $2.9 billion, reflecting an increase of 8.9% compared to $2.7 billion in 2023. Key components of non-interest expenses included:
| Expense Type | 2024 Expense (in millions) | 2023 Expense (in millions) | % Change |
|---|---|---|---|
| Compensation and Benefits | $679.3 | $592.7 | 14.6% |
| Occupancy and Equipment | $268.2 | $251.1 | 6.8% |
| Other Operating Expenses | $350.4 | $367.6 | (4.7%) |
Acquisitions and Strategic Growth
In August 2024, H3 expanded its operational capabilities by acquiring Finance 500, Inc. and CB Resource, Inc., enhancing its service offerings in brokerage and investment services.
Market Conditions
H3's operations remain closely tied to the U.S. equity and fixed-income markets, with ongoing adjustments to economic and regulatory changes affecting overall profitability. As of September 30, 2024, H3 reported total assets of $33.6 billion.
Conclusion of Financial Overview
As of 2024, H3 continues to navigate a complex economic landscape while achieving substantial financial growth and maintaining a strong market presence.
A Who Owns Stifel Financial Corp. (SF)
Major Shareholders
As of 2024, Stifel Financial Corp. (SF) has a diverse ownership structure comprising institutional investors, mutual funds, and individual shareholders. Below is a summary of the major shareholders:
| Shareholder Type | Percentage Ownership |
|---|---|
| Institutional Investors | 77.5% |
| Mutual Funds | 10.3% |
| Individual Investors | 12.2% |
Top Institutional Shareholders
The following table lists the top institutional shareholders of Stifel Financial Corp. along with their respective ownership percentages as of September 30, 2024:
| Institution | Shares Owned | Percentage Ownership |
|---|---|---|
| The Vanguard Group, Inc. | 8,500,000 | 7.6% |
| BlackRock, Inc. | 7,200,000 | 6.4% |
| State Street Corporation | 5,800,000 | 5.2% |
| JPMorgan Chase & Co. | 4,000,000 | 3.6% |
| Wellington Management Company, LLP | 3,500,000 | 3.1% |
Executive and Board Ownership
The executive team and board of directors also hold a significant stake in Stifel Financial Corp. The following table summarizes their ownership:
| Executive/Board Member | Shares Owned | Percentage Ownership |
|---|---|---|
| Ronald J. Kruszewski (CEO) | 1,200,000 | 1.1% |
| James M. O’Connor (CFO) | 600,000 | 0.5% |
| Board of Directors | 1,500,000 | 1.3% |
Recent Shareholder Changes
As of September 30, 2024, the following changes in shareholder composition were noted:
- Increased institutional ownership due to acquisitions and market activity.
- Notable increase in shares repurchased by the company, totaling 249,000 shares at an average price of $81.23.
- Ongoing share repurchase program with a maximum of 10.5 million shares authorized for buyback.
Market Capitalization
Stifel Financial Corp. has experienced fluctuations in market capitalization, currently valued at approximately $5.5 billion as of September 30, 2024.
Summary of Financial Performance
For the nine months ended September 30, 2024, Stifel reported:
- Net income available to common shareholders: $459.4 million.
- Earnings per diluted share: $4.16.
- Total revenue: $3.6 billion.
Conclusion on Ownership Structure
Stifel Financial Corp. exhibits a healthy mix of institutional and individual ownership, reflective of its broad market appeal and strategic growth initiatives.
Stifel Financial Corp. (SF) Mission Statement
Overview of Mission Statement
Stifel Financial Corp. aims to deliver comprehensive financial services to individual investors, corporations, municipalities, and institutions. The mission emphasizes client satisfaction, integrity, and a commitment to providing the highest quality of service.
Core Values
- Client Focus: Prioritizing the needs and goals of clients in all services offered.
- Integrity: Conducting business with transparency and ethical standards.
- Excellence: Striving for the highest standards in all operational aspects.
- Innovation: Embracing new ideas and technologies to enhance client service.
Financial Performance Indicators
As of September 30, 2024, Stifel Financial Corp. reported the following key financial metrics:
| Metric | Value |
|---|---|
| Total Assets | $38.9 billion |
| Total Liabilities | $28.1 billion |
| Total Shareholders' Equity | $5.6 billion |
| Net Revenue (Q3 2024) | $1.2 billion |
| Net Income (Q3 2024) | $149.2 million |
Client Asset Metrics
As of September 30, 2024, Stifel Financial Corp. reported the following client asset metrics:
| Metric | Value (2024) | Value (2023) | % Change |
|---|---|---|---|
| Client Assets | $496.3 billion | $412.5 billion | 20.3% |
| Fee-based Client Assets | $190.8 billion | $151.0 billion | 26.4% |
| Number of Client Accounts | 1,237,000 | 1,205,000 | 2.7% |
| Number of Fee-based Client Accounts | 348,000 | 329,000 | 5.8% |
Segment Performance
The financial performance of Stifel's reportable segments for the three months ended September 30, 2024, is summarized below:
| Segment | Net Revenues (2024) | Net Revenues (2023) | % Change |
|---|---|---|---|
| Global Wealth Management | $827.1 million | $768.6 million | 7.6% |
| Institutional Group | $372.4 million | $256.9 million | 45.0% |
| Other | $25.2 million | $19.6 million | 28.5% |
Recent Developments
In 2024, Stifel Financial Corp. acquired Finance 500, Inc. and CB Resource, Inc., enhancing its service offerings in investment services and financial analytics.
Conclusion on Mission Alignment
Stifel Financial Corp.'s mission statement reflects its commitment to client service, ethical practices, and operational excellence, supported by strong financial performance and growth in client assets.
How Stifel Financial Corp. (SF) Works
Business Overview
Stifel Financial Corp., through its subsidiaries, is engaged in retail brokerage, investment banking, investment advisory, and related financial services. The company operates primarily in the United States, with additional presence in the United Kingdom, Europe, and Canada. Major customers include individual investors, corporations, municipalities, and institutions.
Financial Performance
For the three months ended September 30, 2024, Stifel reported net revenues of $1.224 billion, an increase of 17.2% compared to $1.045 billion in the same period of 2023. Net income available to common shareholders rose to $149.2 million, or $1.34 per diluted share, marking a 153.5% increase from $58.8 million or $0.52 per diluted share in 2023.
For the nine months ended September 30, 2024, net revenues reached $3.606 billion, up 12.6% from $3.202 billion in 2023. Net income available to common shareholders was $459.4 million, or $4.16 per diluted share, compared to $332.1 million, or $2.91 per diluted share in 2023.
Interest Revenue and Expenses
For the three months ended September 30, 2024, interest revenue was $484.2 million, a 0.8% increase from $480.3 million in the prior year. For the nine months, interest revenue totaled $1.43 billion, up 4.6% from $1.37 billion in 2023. Interest expense for the three months was $243.3 million, a 15.4% increase from $210.9 million in 2023. For the nine months, interest expense increased 32.8% to $721.5 million from $543.1 million in 2023.
| Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Revenues | $1.224 billion | $1.045 billion | $3.606 billion | $3.202 billion |
| Net Income | $149.2 million | $58.8 million | $459.4 million | $332.1 million |
| Interest Revenue | $484.2 million | $480.3 million | $1.43 billion | $1.37 billion |
| Interest Expense | $243.3 million | $210.9 million | $721.5 million | $543.1 million |
Non-Interest Expenses
For the three months ended September 30, 2024, total non-interest expenses were $1.008 billion, a 7.7% increase from $935.6 million in 2023. For the nine months, non-interest expenses rose 8.9% to $2.943 billion from $2.701 billion in 2023.
| Expense Type | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Compensation and Benefits | $718.1 million | $613.3 million | $2.120 billion | $1.880 billion |
| Occupancy and Equipment Rental | $89.6 million | $84.4 million | $268.2 million | $251.1 million |
| Communications and Office Supplies | $48.9 million | $46.2 million | $144.4 million | $137.3 million |
| Commissions and Floor Brokerage | $16.2 million | $14.4 million | $46.4 million | $43.0 million |
| Provision for Credit Losses | $5.3 million | $10.0 million | $13.5 million | $22.7 million |
| Other Operating Expenses | $129.9 million | $167.3 million | $350.4 million | $367.6 million |
Client Asset Metrics
As of September 30, 2024, Stifel's client assets totaled $496.3 billion, a 20.3% increase from $412.5 billion in 2023. Fee-based client assets reached $190.8 billion, up 26.4% from $151.0 billion in 2023.
| Metrics | September 30, 2024 | September 30, 2023 |
|---|---|---|
| Client Assets | $496.3 billion | $412.5 billion |
| Fee-Based Client Assets | $190.8 billion | $151.0 billion |
| Number of Client Accounts | 1,237,000 | 1,205,000 |
| Number of Fee-Based Client Accounts | 348,000 | 329,000 |
Capital Adequacy
As of September 30, 2024, Stifel's capital ratios were as follows:
| Capital Measure | Amount | Ratio |
|---|---|---|
| Common Equity Tier 1 Capital | $3.474 billion | 15.0% |
| Tier 1 Capital | $4.159 billion | 17.9% |
| Total Capital | $4.378 billion | 18.9% |
| Tier 1 Leverage | $4.159 billion | 11.3% |
Liquidity and Cash Flow
As of September 30, 2024, Stifel held $1.9 billion in cash and cash equivalents, down from $3.4 billion at the end of 2023. The company reported cash used in operating activities of $204.1 million and cash used in investing activities of $1.5 billion, primarily for securities purchases and loan portfolio growth.
How Stifel Financial Corp. (SF) Makes Money
Revenue Streams
Stifel Financial Corp. generates revenue through several key segments:
- Commissions
- Principal Transactions
- Investment Banking
- Asset Management
- Interest Income
- Other Income
Commissions
For the nine months ended September 30, 2024, commissions amounted to $552.2 million, an increase of 10.5% from the previous year. This segment contributes 15.3% to total net revenues.
Principal Transactions
Principal transactions generated $429.7 million for the same period, reflecting a growth of 27.9%. This accounts for 11.9% of total net revenues.
Investment Banking
Investment banking revenues reached $690.4 million, up 31.4%, making up 19.1% of net revenues.
Asset Management
Asset management services provided $1.1 billion in revenue, representing a 16.7% increase and 31.4% of net revenues.
Interest Income
Interest income for the nine months ended September 30, 2024, was $1.5 billion, a 5.3% increase year-over-year. This segment comprises 42.0% of total net revenues.
Other Income
Other income reached $39.8 million, a significant turnaround from a loss of $0.9 million in the prior year, contributing 1.2% to net revenues.
| Revenue Source | 2024 Revenue ($M) | 2023 Revenue ($M) | % Change | % of Total Net Revenues |
|---|---|---|---|---|
| Commissions | 552.2 | 500.0 | 10.5% | 15.3% |
| Principal Transactions | 429.7 | 336.1 | 27.9% | 11.9% |
| Investment Banking | 690.4 | 525.6 | 31.4% | 19.1% |
| Asset Management | 1,130.8 | 969.0 | 16.7% | 31.4% |
| Interest Income | 1,515.8 | 1,439.5 | 5.3% | 42.0% |
| Other Income | 39.8 | (0.9) | N/A | 1.2% |
Net Interest Income
For the three months ended September 30, 2024, net interest income was $259.6 million, down 8.8% from $284.7 million in the same period of 2023. The decrease is primarily due to higher interest expenses.
For the nine months ended September 30, 2024, net interest income totaled $762.6 million, a decline of 12.6% from $872.9 million in the previous year.
Non-Interest Expenses
Stifel's non-interest expenses for the nine months ended September 30, 2024, amounted to $2.9 billion, increasing by 8.9% from $2.7 billion in 2023. The main components of these expenses are:
| Expense Type | 2024 Expense ($M) | 2023 Expense ($M) | % Change |
|---|---|---|---|
| Compensation and Benefits | 2,120.5 | 1,880.1 | 12.8% |
| Occupancy and Equipment Rental | 268.2 | 251.1 | 6.8% |
| Communications and Office Supplies | 144.4 | 137.3 | 5.2% |
| Commissions and Floor Brokerage | 46.4 | 43.0 | 8.0% |
| Provision for Credit Losses | 13.5 | 22.7 | (40.6%) |
| Other Operating Expenses | 350.4 | 367.6 | (4.7%) |
Net Income
For the three months ended September 30, 2024, net income was $158.5 million, a substantial increase of 132.5% compared to $68.2 million in 2023. For the nine months ended September 30, 2024, net income available to common shareholders surged to $459.4 million, up 38.3% from $332.1 million in the previous year.
The earnings per diluted common share for the three months ended September 30, 2024, were $1.34, a significant rise from $0.52 in the prior year. For the nine months, earnings per diluted share increased to $4.16 from $2.91.
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Resources:
- Stifel Financial Corp. (SF) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Stifel Financial Corp. (SF)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Stifel Financial Corp. (SF)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.