Q2 2024 Stifel Financial Corp Earnings Call Transcript
Key Points
- Stifel Financial Corp (SF) reported a 16% increase in net revenue for Q2 2024, totaling $1.22 billion, marking the second-best quarter in the company's history.
- Investment banking revenue surged by 40%, with advisory revenue up 50% and capital raising increasing by 29%.
- Record asset management revenue grew by 19%, driven by organic growth and market appreciation.
- The company achieved a pre-tax margin of 21% and an annualized return on tangible common equity of 22%.
- Stifel Financial Corp (SF) retired $500 million in senior notes, reducing long-term liabilities and eliminating $21 million in annual interest expense.
- Net interest income (NII) declined by $40 million or 14%, falling short of Street estimates, although it remained within the company's guidance range.
- The compensation ratio was 58%, which is at the high end of the company's full-year guidance.
- Non-compensation operating expenses were $1 million above consensus, totaling $260 million.
- The company incurred nearly $10 million in severance costs tied to efficiency initiatives and international operations.
- Average interest-earning asset levels declined by nearly $1 billion, impacting net interest income.
Good day and welcome to the Stifel Financial's second-quarter financial results conference call. Today's conference is being recorded.
At this time, I would like to turn the conference over to Joel Jeffrey, Head of Investor Relations. Please go ahead.
Thank you, operator. I'd like to welcome everyone to Stifel Financial's second-quarter 2024 conference call. I'm joined on the call today by our Chairman and CEO, Ron Kruszewski; our Co-Presidents, Victor Nesi and Jim Zemlyak; and our CFO, Jim Marischen.
Earlier this morning, we issued an earnings release and posted a slide deck and financial supplement to our website, which can be found on the Investor Relations page at www.stifel.com. I would note that some of the numbers that we state throughout our presentation are presented on a non-GAAP basis, and I would refer to our reconciliation of GAAP to non-GAAP as disclosed in our press release.
I would also remind listeners to
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