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Stifel reports growth in client assets, bank loans

EditorNatashya Angelica
Published 05/23/2024, 05:31 PM
© Reuters.
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ST. LOUIS - Stifel Financial Corp . (NYSE: NYSE:SF) has released selected operating results for April 30, 2024, showing an increase in client and fee-based assets compared to the previous year.

The financial services firm reported a 12% rise in total client assets and a 15% increase in fee-based client assets from the same period in 2023. Despite this annual growth, both metrics saw a 3% decline from March 2024, attributed to a downturn in equity markets.

According to Ronald J. Kruszewski, Chairman and Chief Executive Officer of Stifel, the growth over the past year can be credited to successful recruiting efforts and market appreciation. Still, client money market and insured product balances experienced a 2% decrease in April. This decline was linked to seasonal tax payments and a slight reduction in cash holdings, with both Smart Rate and Sweep balances dropping during the month.

In a positive turn, Stifel observed a 2% increase in total bank loans in April, driven by expansion in its fund banking business. This aligns with the company's recent earnings call where increased lending opportunities were anticipated.

The data released includes a comparison of figures from April 30, 2024, with those from April 30, 2023, and March 31, 2024. Total client assets stood at $454,023 million, fee-based client assets at $171,422 million, and net bank loans at $19,962 million as of April 30, 2024. Client money market and insured product balances were reported at $26,318 million.

Stifel operates its banking, securities, and financial services businesses through several wholly owned subsidiaries. The company serves a variety of clients, including individual investors, businesses, and municipalities, offering a full range of consumer and commercial lending solutions as well as trust and related services.

The information presented is based on a press release statement and provides a snapshot of Stifel's performance for a particular period. Investors are cautioned that such data should not be seen as indicative of future earnings.

InvestingPro Insights

Stifel Financial Corp. (NYSE: SF) has demonstrated resilience and growth in the face of fluctuating equity markets, as evidenced by their recent operating results. To further understand the company's financial health and future prospects, let's delve into some key metrics and InvestingPro Tips that can provide investors with a clearer picture.

InvestingPro Data shows that Stifel has a market capitalization of $8.29 billion, reflecting its significant presence in the financial sector. The company maintains a P/E Ratio of 17.43, which has adjusted to a slightly more favorable 15.58 over the last twelve months as of Q1 2024.

This adjustment suggests a better valuation of the company relative to its earnings. Moreover, Stifel has experienced a modest revenue growth of 0.65% over the last twelve months as of Q1 2024, indicating steady progress in its financial performance.

InvestingPro Tips highlight that Stifel's management has been proactively enhancing shareholder value through share buybacks. This can be an indicator of management's confidence in the company's future performance and intrinsic value.

Stifel has consistently raised its dividend for 7 consecutive years, showcasing its commitment to returning value to shareholders. This dividend growth trajectory is further supported by a 16.67% increase in dividends over the last twelve months as of Q1 2024.

Investors interested in a deeper analysis can find additional InvestingPro Tips by visiting https://www.investing.com/pro/SF. For those looking to subscribe, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are 7 more InvestingPro Tips available, providing a more comprehensive view of Stifel's financial landscape and investment potential.

The information presented not only reflects Stifel's current financial standing but also underscores the company's strategic efforts to bolster growth and shareholder returns in the years ahead.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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