Stifel Beats Estimates on Solid Private-Client Results

The company has nearly 2,070 advisors, who produce the majority of its new revenue as of the second quarter

Stifel Financial (SF) said Thursday that it had non-GAAP net income of $44.4 million, or $0.60 per share, as of June 30 vs. $26.1 million, or $0.42 per share a year ago. This performance, along with sales of $485.3 million, topped analysts’ expectations.

Stifel said its GAAP net income for the most recent period was $29.4 million, or $0.40 per share, vs. $26.1 million, or $0.42 per share, a year ago.

Ronald Kruszewski“We are pleased to announce record revenues for the second quarter and for the first six months of 2013 in both the Global Wealth Management and the Institutional Group, especially against the challenging market conditions in the quarter ... The merger with KBW continues to exceed our expectations, and we are gaining market share in the financial institutions space,” said Chairman and CEO Ronald J. Kruszewski (left) in a press release.

“This quarter, we look forward to the contributions from the institutional fixed-income sales and trading professionals who joined us from Knight Capital Group,” he added.

Global Wealth Growth

The Global Wealth Management unit had pretax operating income of $78.9 million, up 29% from $61 million a year ago and a jump of nearly 14% from $69.5 million in the prior quarter.

Net revenues for the quarter were $282.7 million, an 11% year-over-year improvement and a roughly 6% increase from the first quarter of 2013.

“The increase in net revenues both from the second quarter of 2012 and the first quarter of 2013 is primarily attributable to (1) an increase in commission revenues; (2) increase in investment banking revenues; (3) growth in asset management and service fees; and (4) increased net interest revenues,” Stifel said in its second-quarter report.

This unit represents about 57% of total revenue for the company.

Private Client Group

The Private Client Group reported net revenues of $257.3 million, a 17% increase over the year-ago period and a 6% jump over the prior quarter. It accounts for 52% of total company revenue as of June 30.

In terms of brokerage revenue, the PCG unit had $161 million in Q2, a 12% year-over-year improvement and a 2% quarter-over-quarter increase. This represents 60% of the company’s total brokerage sales.

The number of PCG advisors grew by 6 in the most-recent period and stands at 2,069. That is up 41 from June 2012.

Stifel says its total client assets are $150.6 billion, a jump of 15% from last year and 2.4% from the prior quarter.

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Check out ThinkAdvisor’s 2013 Q2 Earnings Calendar for the Finance Sector.

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