Stifel Financial Corp. (SF): Business Model Canvas [11-2024 Updated]

Stifel Financial Corp. (SF) stands out in the financial services industry with a robust business model that integrates wealth management, investment banking, and trading services. Through strategic partnerships and a focus on personalized client relationships, Stifel effectively caters to a diverse clientele ranging from high-net-worth individuals to institutional investors. Discover how Stifel's key activities, resources, and value propositions create a compelling framework for success in an increasingly competitive market.

Stifel Financial Corp. (SF) - Business Model: Key Partnerships

Collaborations with financial institutions

Stifel Financial Corp. maintains strategic collaborations with various financial institutions to enhance its service offerings. As of September 30, 2024, the company reported total deposits of $28.1 billion, an increase from $27.3 billion at the end of 2023 . This growth in deposits supports Stifel's banking operations and provides a stable funding source for its investment activities.

Partnerships with technology providers

In 2024, Stifel has focused on integrating advanced technology solutions to improve its operational efficiency. The company acquired Finance 500, Inc. and CB Resource, Inc. on August 1, 2024, which enhance its capabilities in underwriting FDIC-insured Certificates of Deposits and fixed income securities trading, as well as providing strategic and capital planning solutions .

Relationships with regulatory bodies

Stifel operates in a highly regulated environment and collaborates closely with various regulatory bodies to ensure compliance with capital requirements. As of September 30, 2024, Stifel Financial Corp. reported a common equity tier 1 capital ratio of 15.0%, well above the required minimum of 4.5% . This demonstrates effective management of regulatory relationships and adherence to financial stability standards.

Alliances with investment firms

The company has established alliances with several investment firms to expand its market reach and enhance its investment banking capabilities. For the three months ended September 30, 2024, investment banking revenues increased by 59.6% to $6.2 million compared to $3.9 million in the same period of 2023 . Such partnerships enable Stifel to leverage external expertise and resources, contributing to its robust growth trajectory.

Partnership Type	Details	Financial Impact
Financial Institutions	Total deposits of $28.1 billion (Sept 2024)	Stable funding source for operations
Technology Providers	Acquisition of Finance 500, Inc. and CB Resource, Inc.	Enhanced underwriting and trading capabilities
Regulatory Bodies	Common equity tier 1 capital ratio of 15.0%	Above regulatory minimums, ensuring stability
Investment Firms	Investment banking revenues rose 59.6% to $6.2 million	Increased market reach and revenue growth

Stifel Financial Corp. (SF) - Business Model: Key Activities

Wealth management services

As of September 30, 2024, Stifel Financial Corp. reported client assets totaling $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 the previous year. The number of client accounts increased to 1.237 million, reflecting a 2.7% growth over the same period .

Investment banking operations

Investment banking revenues for the three months ended September 30, 2024, were $6.2 million, marking a 59.6% increase compared to $3.9 million in the same period of 2023. For the nine months, revenues rose 34.3% to $16.3 million from $12.1 million .

Period	Investment Banking Revenues	% Change
Q3 2024	$6.2 million	59.6%
YTD Q3 2024	$16.3 million	34.3%

Brokerage and trading services

For the nine months ended September 30, 2024, Stifel reported net revenues of $4.36 billion, with brokerage and trading services contributing significantly to this figure. Commissions amounted to $552.2 million, a 10.5% increase from $500.0 million in 2023. Principal transactions revenues increased by 27.9% to $429.7 million .

Revenue Source	Q3 2024	Q3 2023	% Change
Commissions	$552.2 million	$500.0 million	10.5%
Principal Transactions	$429.7 million	$336.1 million	27.9%

Risk management and compliance

Stifel operates in a highly regulated environment, requiring robust risk management and compliance frameworks. As of September 30, 2024, the company maintained a common equity tier 1 capital ratio of 15.0%, significantly above the required 4.5% minimum for well-capitalized status. Total capital ratios were reported at 18.9% .

Capital Ratios	Actual	Minimum Required
Common Equity Tier 1	15.0%	4.5%
Total Capital	18.9%	8.0%

For the three months ended September 30, 2024, Stifel incurred non-interest expenses of $1.008 billion, with compensation and benefits accounting for $718.1 million, a 17.1% increase from $613.3 million in 2023 .

Expense Type	Q3 2024	Q3 2023	% Change
Total Non-Interest Expenses	$1.008 billion	$935.6 million	7.7%
Compensation and Benefits	$718.1 million	$613.3 million	17.1%

Stifel Financial Corp. (SF) - Business Model: Key Resources

Extensive client network

As of September 30, 2024, Stifel Financial Corp. reported total client assets of approximately $496.3 billion, an increase of 20.3% compared to $412.5 billion in the same period in 2023. The number of client accounts reached 1,237,000, up 2.7% from 1,205,000 the previous year .

Diverse investment portfolio

Stifel's investment portfolio includes a wide range of asset classes. As of September 30, 2024, the average interest-earning assets amounted to $30.0 billion, with an average interest rate of 6.26%. This portfolio comprises various securities, including:

Asset Type	Average Balance (in thousands)	Interest Income (in thousands)	Average Interest Rate
Interest-bearing cash and federal funds sold	$1,705,642	$24,124	5.66%
Mortgage-backed securities	$1,046,978	$7,572	2.89%
Corporate fixed income securities	$542,974	$3,692	2.72%
Loans (various types)	$20,005,950	$936,714	6.24%

Proprietary technology platforms

Stifel Financial Corp. utilizes proprietary technology platforms to enhance client services and operational efficiency. These platforms integrate investment management, trading, and client relationship management tools, allowing for streamlined operations and improved client engagement. The company has made significant investments in technology to support its financial advisory and banking services, contributing to a competitive edge in the market.

Skilled workforce and financial advisors

As of September 30, 2024, Stifel Financial Corp. employed a highly skilled workforce, with compensation and benefits expenses reaching $718.1 million for the three months ended September 30, 2024, compared to $613.3 million in the same period in 2023, reflecting a 17.1% increase . This investment in human capital underscores the company's commitment to attracting and retaining top financial advisors, crucial for delivering high-quality financial services to clients.

Stifel Financial Corp. (SF) - Business Model: Value Propositions

Comprehensive financial solutions

Stifel Financial Corp. offers a wide range of financial services that cater to various customer needs, including retail brokerage, investment banking, asset management, and commercial banking. As of September 30, 2024, Stifel managed client assets totaling approximately $496.3 billion, reflecting a year-over-year increase of 20.3% from $412.5 billion in 2023.

Personalized client service

The company emphasizes personalized client service, leveraging its network of financial advisors. As of September 30, 2024, Stifel reported 1,237,000 client accounts, with 348,000 of these being fee-based client accounts, which increased by 5.8% from the previous year. This growth indicates a commitment to tailored financial advice and support for clients.

Competitive pricing on financial products

Stifel maintains competitive pricing across its financial products. For the three months ended September 30, 2024, the company reported net revenues of $1.2 billion, a 17.2% increase from $1.0 billion in the same period in 2023. The increase was driven by higher investment banking and asset management revenues. The interest expense for the same period was $251.2 million, reflecting the competitive pricing strategy in a rising interest rate environment.

Strong performance in investment management

Stifel has demonstrated strong performance in investment management, with revenues from asset management increasing significantly. For the nine months ended September 30, 2024, asset management revenues reached $1.1 billion, up from $969 million in the same period in 2023, representing an increase of 16.6%. This performance underscores the firm's commitment to delivering value through effective investment strategies and management.

Metric	September 30, 2024	September 30, 2023	% Change
Client Assets	$496.3 billion	$412.5 billion	20.3%
Client Accounts	1,237,000	1,205,000	2.7%
Fee-Based Client Accounts	348,000	329,000	5.8%
Net Revenues	$1.2 billion	$1.0 billion	17.2%
Asset Management Revenues	$1.1 billion	$969 million	16.6%

Stifel Financial Corp. (SF) - Business Model: Customer Relationships

Dedicated financial advisory teams

Stifel Financial Corp. employs dedicated financial advisory teams to provide personalized services to clients. As of September 30, 2024, the company reported a total of 1,237,000 client accounts, with 348,000 of these being fee-based accounts, reflecting a growth of 2.7% and 5.8%, respectively, from the previous year.

Regular client engagement and updates

Regular engagement with clients is a cornerstone of Stifel's customer relationship strategy. The company has increased its net revenues by 17.2% to $1.2 billion for the three months ended September 30, 2024, compared to $1.0 billion during the same period in 2023. This growth is attributed to enhanced client interactions and service offerings.

Customized investment strategies

Stifel offers customized investment strategies to its clients, focusing on individual financial goals. The firm reported that its total client assets reached $496.3 billion as of September 30, 2024, a 20.3% increase from $412.5 billion in September 2023. Fee-based client assets also grew to $190.8 billion, marking a 26.4% increase year-over-year.

Client education and support services

Stifel places a significant emphasis on client education and support services. The company’s non-interest expenses related to client services rose to $525.4 million in the third quarter of 2024, up 11.8% from $470.1 million in the same quarter in 2023, showcasing its commitment to enhancing client knowledge and support.

Metrics	Q3 2024	Q3 2023	% Change
Total Client Accounts	1,237,000	1,205,000	2.7%
Fee-Based Client Accounts	348,000	329,000	5.8%
Total Client Assets	$496.3 billion	$412.5 billion	20.3%
Fee-Based Client Assets	$190.8 billion	$150.9 billion	26.4%
Net Revenues	$1.2 billion	$1.0 billion	17.2%
Non-Interest Expenses	$525.4 million	$470.1 million	11.8%

Stifel Financial Corp. (SF) - Business Model: Channels

Direct sales through financial advisors

Stifel Financial Corp. employs a robust network of financial advisors, totaling approximately 2,357 as of September 30, 2024, down from 2,374 in the previous year. These advisors serve as the primary touchpoint for clients, offering personalized financial services and investment advice. The firm operates 390 branch offices across the U.S., which facilitate direct interactions with clients and prospects.

Online trading platforms

Stifel offers a comprehensive online trading platform that caters to both retail and institutional investors. The platform provides advanced trading tools, research resources, and real-time market data. As of September 30, 2024, the firm reported client assets reaching $496.3 billion, an increase of 20.3% from $412.5 billion a year earlier. Additionally, brokerage client deposits totaled $26.0 billion, reflecting strong engagement with online trading services.

Mobile banking applications

The mobile banking application of Stifel has been designed to enhance client experience by providing easy access to account management, trading, and financial planning tools. The Smart Rate Program, which allows clients to earn higher interest on their deposits, has seen significant uptake, with $16.3 billion in client cash allocated to this program as of September 30, 2024. This represents a substantial increase from $14.5 billion at the end of 2023, indicating growing utilization of mobile banking services.

Client seminars and workshops

Stifel conducts client seminars and workshops to educate clients on various financial topics, investment strategies, and market trends. These events help strengthen client relationships and enhance the firm's reputation as a trusted advisor. While specific attendance figures for 2024 were not disclosed, the firm has historically emphasized the importance of client education and engagement as a channel for delivering its value proposition.

Channel	Details	Recent Metrics
Direct Sales	Network of financial advisors	2,357 financial advisors; 390 branch offices
Online Trading	Comprehensive trading platform	Client assets: $496.3 billion; Brokerage deposits: $26.0 billion
Mobile Banking	Mobile application with Smart Rate Program	Client cash in Smart Rate: $16.3 billion
Client Seminars	Educational events for clients	Focus on client engagement; attendance metrics not available

Stifel Financial Corp. (SF) - Business Model: Customer Segments

High-net-worth individuals

Stifel Financial Corp. targets high-net-worth individuals by offering a range of personalized financial services, including investment management, wealth planning, and private banking. As of September 30, 2024, client assets managed by Stifel amounted to approximately $496.3 billion, with fee-based client assets totaling $190.8 billion, reflecting a 20.3% increase year-over-year .

Institutional investors

Institutional investors form a significant customer segment for Stifel, which provides services such as securities brokerage, trading, and research. For the three months ending September 30, 2024, revenues from the Institutional Group reached $372.4 million, up from $256.9 million in the same period of the previous year, marking an increase of 45.0% .

Corporations seeking financial services

Stifel serves corporations by offering investment banking, merger and acquisition advisory, and capital raising services. For the nine months ended September 30, 2024, investment banking revenues increased by 34.3% to $16.3 million compared to $12.1 million for the same period in 2023 . The total revenue from corporate services contributed to a significant portion of the firm's income, demonstrating the importance of this segment.

Retail clients looking for investment opportunities

Stifel actively engages retail clients through its Global Wealth Management segment, which includes branch offices across the United States. As of September 30, 2024, the number of client accounts stood at approximately 1.24 million, an increase from 1.21 million in the previous year, indicating a growth of 2.7% . The firm continues to enhance its services to attract retail investors, particularly through offerings such as the Stifel Smart Rate Program, which has gathered $16.3 billion in client cash .

Customer Segment	Key Metrics	Financial Performance (as of Sept 30, 2024)
High-net-worth individuals	Client assets managed	$496.3 billion
	Fee-based client assets	$190.8 billion
Institutional investors	Revenues from Institutional Group	$372.4 million
Corporations	Investment banking revenues	$16.3 million
Retail clients	Number of client accounts	1.24 million
	Client cash in Smart Rate Program	$16.3 billion

Stifel Financial Corp. (SF) - Business Model: Cost Structure

Employee compensation and benefits

For the three months ended September 30, 2024, the total expense for employee compensation and benefits was $718.1 million, reflecting a 17.1% increase from $613.3 million in the same period in 2023. For the nine months ended September 30, 2024, this expense rose to $2.1 billion, up 12.8% from $1.9 billion in the comparable period in 2023. The compensation and benefits expense as a percentage of net revenues was 58.6% for the three months and 58.8% for the nine months ended September 30, 2024.

Technology and infrastructure costs

The costs associated with technology and infrastructure are integral to Stifel's operations but are not explicitly detailed in the financial reports. However, the overall non-interest expenses, which include technology costs, amounted to $1.5 billion for the nine months ended September 30, 2024, an increase of 11.5% from $1.4 billion in 2023.

Marketing and client acquisition expenses

Marketing and client acquisition expenses are also part of the broader non-interest expenses. Specific figures for these costs are not broken out in the reports, but the total non-interest expenses for the nine months ended September 30, 2024, were $1.5 billion, which indicates significant investment in client acquisition efforts.

Regulatory compliance costs

Regulatory compliance costs are included in the general operating expenses. While not itemized separately, they contribute to the overall non-interest expenses of $1.5 billion for the nine months ended September 30, 2024, reflecting an increase from the prior year.

Cost Category	Q3 2024 Expense (in $ million)	Q3 2023 Expense (in $ million)	9M 2024 Expense (in $ billion)	9M 2023 Expense (in $ billion)	% Change (9M 2024 vs. 2023)
Employee Compensation and Benefits	718.1	613.3	2.1	1.9	12.8%
Total Non-Interest Expenses	1,008.0	935.6	1.5	1.4	11.5%

Stifel Financial Corp. (SF) - Business Model: Revenue Streams

Commissions from Trading Activities

For the three months ended September 30, 2024, Stifel Financial Corp. reported commission revenues of $183.4 million, a 11.1% increase from $165.1 million in the same period of 2023. For the nine months ended September 30, 2024, commission revenues reached $552.2 million, reflecting a 10.5% increase from $500.0 million in 2023.

Fees from Asset Management Services

Asset management revenues for the three months ended September 30, 2024, were $382.6 million, an increase of 14.9% compared to $333.1 million in the prior year. For the nine months ended September 30, 2024, these revenues totaled $1.1 billion, up 16.7% from $969.0 million in the comparable period of 2023.

Interest Income from Loans and Investments

For the three months ended September 30, 2024, Stifel generated $484.2 million in interest revenue, slightly up from $480.3 million during the same period in 2023. For the nine months, interest revenue increased to $1.43 billion, from $1.37 billion in the previous year.

Interest expense for the three months ended September 30, 2024, was $251.2 million, an increase of 13.9% from $220.5 million in the same period of 2023.

Advisory Fees from Investment Banking Services

Investment banking revenues for the three months ended September 30, 2024, were $243.2 million, an increase of 65.6% from $146.9 million in the same period of 2023. For the nine-month period, investment banking revenues increased to $690.4 million, up 31.4% from $525.6 million in 2023.

Capital-raising revenues during the three months reached $106.3 million, a substantial increase of 114.3% compared to $49.6 million in the same period of 2023.

Revenue Stream	Q3 2024 Revenue	Q3 2023 Revenue	9M 2024 Revenue	9M 2023 Revenue	% Change (Q3)	% Change (9M)
Commissions	$183.4 million	$165.1 million	$552.2 million	$500.0 million	11.1%	10.5%
Asset Management Fees	$382.6 million	$333.1 million	$1.1 billion	$969.0 million	14.9%	16.7%
Interest Income	$484.2 million	$480.3 million	$1.43 billion	$1.37 billion	0.8%	4.6%
Investment Banking Advisory Fees	$243.2 million	$146.9 million	$690.4 million	$525.6 million	65.6%	31.4%

Updated on 16 Nov 2024

Resources:

1. 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.
2. 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.