Stifel Financial net income rises 11% to $224.8 million in third quarter

Stifel Financial Corp. (SF) said Wednesday that net income available to common shareholders rose to $224.8 million, or $1.40 per diluted share, in the third quarter ended Sept. 30, from $202.1 million, or $1.22 per diluted share, a year earlier, according to a regulatory filing.

Net revenues were $1.43 billion, compared with $1.43 billion a year earlier. The St. Louis-based diversified financial services firm furnished its results in a press release, a financial supplement and a presentation attached to a Form 8-K.

Here's how the company did:

• Net income available to common shareholders: $224.8 million vs. $202.1 million a year earlier
• Diluted earnings per share: $1.40 vs. $1.22 a year earlier
• Non-GAAP diluted earnings per share: $1.46 vs. $1.30 a year earlier
• Net revenues: $1.43 billion vs. $1.43 billion a year earlier

Non-GAAP net income available to common shareholders was $234.1 million, or $1.46 per diluted share. The non-GAAP figures adjust for items including merger-related expenses and restructuring and severance costs, the company said.

Net income available to common shareholders rose 11.3% from a year earlier. Net revenues fell 1.7% from the second quarter of 2026.

For the first nine months, net revenues were $4.36 billion, up 9.7% from $3.97 billion a year earlier. Diluted earnings per share for the period were $4.23, compared with $2.37.

Chairman and Chief Executive Officer Ronald J. Kruszewski said "we delivered our highest ever third quarter earnings per share of $1.46, up 12% versus the prior year."

Global Wealth Management reported record net revenues of $980.3 million, up 8% from $907.4 million a year earlier. Pre-tax net income was $374.4 million, compared with $342.7 million.

The segment's pre-tax margin was 38.2%, up from 37.8%. Its effective tax rate for the company was 24.4%, down from 26.1%.

Asset management revenues rose 14% to $492.2 million, reflecting higher asset values due to improved market conditions and net new asset growth. Transactional revenues fell 3% to $196.2 million, reflecting a decrease in client activity.

Net interest income in the segment rose 11% to $284.6 million, primarily driven by balance sheet growth, partially offset by lower interest rates.

Total client assets reached $576.5 billion, up 6% from a year earlier. The year-ago figure included $10.2 billion of client assets from Stifel Independent Advisors, a business sold on Feb. 2, 2026. Fee-based client assets were $239.7 billion, up 9%.

The Institutional Group reported net revenues of $430.3 million, down 14% from $500.4 million a year earlier. Pre-tax net income was $76.3 million, compared with $89.3 million.

Investment banking revenues in the group decreased 6% from a year ago. Fixed income transactional revenues fell 34%, and equity transactional revenues fell 29%.

The company said the restructuring of its European Equities business reduced equity transactional revenues by $7 million year over year.

Bank loans increased 21% from a year earlier. Total assets increased $3.6 billion, or 9%, from the year-ago quarter. Tangible book value per common share was $26.05, up 12%.

The company repurchased $124.0 million, or 1.6 million shares, of its common stock in the quarter at an average price of $76.95. Over the last twelve months, it repurchased $564.4 million, or 7.3 million shares, at an average price of $77.05.

The board declared a quarterly dividend of $0.34 per common share, up from $0.31 a year earlier. The dividend is payable on Sept. 15, 2026, to common shareholders of record on Sept. 1, 2026.

Restructuring and severance costs were $1.2 million, tied to workforce reductions at certain foreign subsidiaries. Merger-related charges were $8.2 million, the filing shows.

The company also announced a strategic investment in Meow Technologies. The filing gives no amount or terms for the investment.

The filing contained no new financial guidance.

The company will hold a conference call on Wednesday, Oct. 21, at 9:30 a.m. Eastern time, and a webcast will be available on its website.

Kruszewski said "I am optimistic about our outlook, as Stifel's diversified business model, recurring revenue stream, and disciplined capital management position us to keep compounding value for shareholders."