Stifel Financial Q4 Profit Rises 21%

(RTTNews) - Investment bank and brokerage Stifel Financial Corp. (SF) on Monday reported a 21 percent increase in profit for the fourth quarter from last year, reflecting higher revenues at its global wealth management and institutional group segments.

Global Wealth Management revenues for the fourth quarter rose 15 percent from the year-ago period to $292.84 million. The higher revenues reflects growth in asset management and service fees, higher commission revenues and increased net interest revenues.

Meanwhile, Institutional Group revenues surged 66 percent to $267.28 million. The increase in revenues were due to higher advisory fees, an increase in equity capital raising revenues, and higher institutional brokerage revenues. The company attributed the net revenue growth to the acquisitions of KBW and, to a lesser extent, Miller Buckfire.

Investment banking revenues more than doubled from the year-ago period to $149.29 million. Total client assets at the end of the quarter were $165.57 billion, up 20 percent from $137.86 billion at the end of the year-ago period.

St. Louis, Missouri-based Stifel Financial's fourth-quarter net income was $48.27 million or $0.64 per share, up from $39.95 million or $0.63 per share in the same period last year. Earnings per share for the latest quarter reflects higher number of shares outstanding.

Excluding merger-related expenses associated with the acquisitions of the Knight Capital Fixed Income business and Miller Buckfire as well as other items, adjusted earnings from continuing operations for the quarter were $59.82 million or $0.79 per share, compared to $43.28 million or $0.69 per share in the year-ago period.

On average, eight analysts polled by Thomson Reuters expected the company to earn $0.68 per share for the quarter. Analysts' estimates typically exclude special items.

Net revenues for the quarter grew 37 percent to $562.53 million from $411.28 million in the previous-year quarter. Analysts had a consensus revenue estimate of $541.25 million.

For fiscal 2013, Stifel Financial's net income rose to $162.01 million from $138.57 million in the prior year, while earnings per share were flat with last year at $2.20 on higher number of shares outstanding.

Adjusted net income from continuing operations was $184.66 million or $2.51 per share, compared to $145.30 million or $2.31 per share in the previous year.

Net revenues for the year rose 24 percent to $1.97 billion from $1.59 billion last year.

Street expected the company to earn $2.38 per share for the year on revenues of $1.95 billion.

SF closed Monday's regular trading session at $48.85, up $0.73 or 1.52 percent on a volume of 482,553 shares.