September 30, 2023

Stifel Monetary reported one other quarter of record revenue for its International Wealth Administration unit on Wednesday, and despatched a message to advisors looking for stability amid the collapse of two  banks: Contemplate wanting right here. 

Though firmwide income and income have been down from year-ago ranges as Stifel’s funding banking enterprise continued to slog by way of an unenthusiastic marketplace for deal-making, the power of the agency’s steadily rising wealth franchise allowed it to rent 49 new advisors within the quarter, together with 20 skilled advisors — which translated right into a web acquire of 6 advisors. 

“Our recruiting pipeline stays sturdy, and we imagine that the soundness of our platform will additional improve our place as a premier vacation spot for high-caliber monetary advisors,” Chief Monetary Officer Jim Marischen mentioned in an earnings name. 

The St. Louis-based regional agency and funding financial institution additionally posted a acquire of $1.2 billion in deposits over the primary quarter, and mentioned solely 15% of its deposits have been uninsured — a pointy distinction with some regional friends. First Republic misplaced round $102 billion in buyer deposits final quarter and mentioned round 10% of its wealth workers had fled since March, after information that round two-thirds of its deposits have been uninsured. 

Ron Kruszewski, Stifel’s chairman and CEO, mentioned within the name that “We’ve a strong liquidity profile with considerable money ranges and low price borrowing capability, in addition to prime quality relationship-oriented deposits.” 

He added that “90% of our deposits are generated by wealth administration purchasers, and extra particularly the money they generate from their funding accounts.” 

From its place of power, Kruszewski mentioned the agency had “opportunistically” employed quite a few Credit score Suisse bankers for its institutional group because it ready for higher situations in that market, and “quite a few prime quality people from Silicon Valley Financial institution.” 

The corporate fell barely in need of Wall Avenue analyst expectations, as diluted earnings per share obtainable to shareholders on a non-GAAP foundation of $1.40 got here in 3% under the consensus of $1.45. 

“Stifel demonstrated the power and the soundness of that wealth-first franchise,” Bloomberg Intelligence analyst Neil Sipes mentioned in an interview, including that the deposit spike gave the impression to be “reflective of that wealth franchise, and to a bit little bit of opportunistic hiring — most of that development was really coming from company purchasers… I feel that bodes effectively for them going ahead.” 

To see the primary takeaways from Stifel’s first-quarter earnings, scroll down the slideshow. For protection of the agency’s fourth-quarter earnings, click on right here. For a have a look at the outcomes from the third quarter, click on right here