Stifel Financial Makes A Dramatic Move Towards Wealth Management
Alpha Gen Capital
Alpha Gen Capital
Thu, Sep. 1, 2:58 AM
- During the 2008 financial crisis, Ken Griffith's Citadel tried to muscle its way into the opaque credit default swaps market. His plan met heavy resistance from the big investment banks who ran the show.
- Eight years later, however, Citadel now accounts for about 11.5% of all CDS trades. Other players who have managed to break into the market include Wells Fargo (NYSE:WFC) and Stifel (NYSE:SF).
- What has changed? Mostly regulation. CDSs, once traded exclusively over the phone, are now 75% electronic as regulators have forced greater transparency and an open architecture.
- Note that Citadel had "14% of all U.S. daily stock volume, 20% of all U.S.-listed stock-options volume and is a top-five player in U.S. Treasury futures" a year ago, according to the WSJ. At the time, it was already the No.3 swaps trader by number of trades, and No.4 by dollar volume.
- Source: Bloomberg
Tue, Aug. 2, 4:47 PM
Tue, Aug. 2, 4:22 PM
- Q2 non-GAAP income (excludes merger-related expenses) of $52.3M or $0.69 per share vs. $55.1M and $0.71 one year ago. Expectations were for $0.58.
- Revenues of $1.27B up 9.8% Y/Y.
- CEO Ronald Kruszewski: "Market environment remains challenged."
- Brokerage revenues of $308.5M down 3.2% Q/Q, up 14.6% Y/Y.
- Investment banking revenues of $133.1M up 32.3% Q/Q, down 17.3% Y/Y. Advisory revenues rose modestly Y/Y, but equity and fixed-income capital raising revenues fell sharply.
- Asset management and service fee revenues of $144.6M flat Q/Q, up 20.5% Y/Y.
- Comp and benefits expense of $460M (includes $50.1M of merger-related expenses) vs. $411.1M in Q1 and $410M a year ago.
- Conference call at 5 ET
- SF flat after hours
Mon, Aug. 1, 5:35 PM
- ACLS, AFG, AGII, AIG, AMED, AMSG, AR, ARC, AVD, BEAT, BECN, BGFV, BPI, BRKR, CALD, CALX, CAR, CENT, CERN, CHEF, CHUY, CLI, CLUB, CRAY, CSU, CXO, CZR, DEI, DVN, DXCM, EA, ELGX, ENLK, ENPH, ESE, ESIO, EXAM, FANG, FARO, FGL, FISV, FIT, FMC, FMI, FNGN, FORM, FTAI, FTV, FUEL, GHDX, GLUU, GNW, GUID, HBI, HCI, HIW, HRZN, INN, JIVE, KAR, KFRC, LOCK, LQ, MATX, MDU, MOD, MRC, MRCY, MXWL, NBR, NEWR, NFX, NOVT, NPO, NYMT, OCLR, OESX, OHI, OKE, OKS, OMI, ORA, PAA, PAGP, PAYC, PBPB, PLT, PRMW, PRO, PZZA, QRVO, QUOT, REXX, RGR, RIGL, RLOC, RPAI, RPXC, RUBI, SF, SGY, SLCA, SM, STAG, SUPN, SYRG, TMH, TNAV, TPC, TRQ, TRUP, TSRA, TX, VNOM, VRSK, VTAE, WMGI, WR, WTR, XXIA, Y, ZAGG, ZEN
Tue, May 10, 10:58 AM
- Q1 non-GAAP net income of $43.4M or $0.57 per share vs. $49.9M and $0.65 one year ago. Expectations had been for just $0.51.
- Brokerage revenues of $318.9M up 13.7% Y/Y, with global wealth management revenue of $173M up 9.5%, institutional equity revenue of $62.3M up 0.8%, and institutional fixed income brokerage revenue of $83.6M up 37.8%.
- Investment banking revenue of $100.7M down 19.5% Y/Y, with equity capital raising revenue of $25.5M down 47.8%, fixed-income capital raising revenue of $27.8M up 3.9%, and advisory fee revenue of $47.4M down 4.2%.
- Asset management fee and service fee revenue of $144.5M up 26.9%.
- Excluding merger-related expenses, comp and benefits as a percentage of revenue of 63.6% rose from 62.5% a year ago.
- 2.7M shares repurchased for $91.4M.
- Book value per share of $36.37 up 4.4% Y/Y.
- Previously: Stifel Financial beats by $0.06, beats on revenue (May 9)
- SF +9.6%
Mon, May 9, 4:42 PM
Sun, May 8, 5:35 PM
- AAOI, AMPH, APEI, ARNA, ASEI, BKD, CDXS, CUI, CVG, DCO, DMD, DNB, DPLO, DTSI, ELGX, FENG, FRGI, GLOB, GSBD, HALO, HK, HTZ, IFF, INGN, INVN, INWK, IRWD, IVR, JPEP, JUNO, KEG, KITE, LBTYA, LC, LOPE, LSCC, MBI, MODN, MXL, NLS, NOG, NVGS, NVRO, OAS, OPK, OPWR, PEN, PINC, PLOW, PRAA, PSIX, RARE, RAX, RBC, REN, RVNC, SCTY, SEDG, SEMI, SF, SNHY, SREV, SSNI, STMP, TCX, TMH, TTEC, TTGT, TUBE, VTL, VVC
Thu, Mar. 24, 12:07 PM
- "If you're not inside, you're outside," famously said Gordon Gekko.
- At the top of a secret list at Citigroup (NYSE:C) is the "Focus Five" - a group of hedge funds that bring in big dollars to the bank: Millennium, Citadel, Surveyor Capital, Point72, and Carlson Capital. These lucrative clients get the best service - top trade ideas, hours-long phone calls with analysts, intimate get-togethers with executives, bespoke trading models, and more.
- It's part of a new model on Wall Street, with banks backing off the "we-do-everything" model to cater to those select few who generate the most revenue. Players like Morgan Stanley (NYSE:MS) and HSBC are joining Citigroup in focusing on this 1% of the 1%.
- “It’s a rude awakening when you find out that research isn’t readily available," says Jeff Sica, who manages "only" about $1.5B.
- Smaller banks too. Stifel Financial (NYSE:SF) has a "Blackjack" list of its top 21 clients, through CEO Ron Kruszewski says it's not currently in use.
- In today's world, banks have little choice. Hamstrung by the new regulatory environment, barely visible rates, and a lame trading environment, using gates to research to encourage more business is a rare avenue of revenue growth.
- ETFs: IAI, KCE
Mon, Mar. 14, 3:19 PM
- The financial sector (NYSEARCA:XLF) has performed woefully this year, and the banks (NYSEARCA:KBE) even worse. Cornerstone Macro technician Carter Worth finds twenty names trading well beneath their (falling) 150-day moving averages.
- The group has shown signs of life lately, and Worth thinks the stocks could move back to their 150-day averages, as stocks in other market sectors have done.
- It's strictly a trade, says Worth, who continues to rate the financials as Underweight. The 20:
- Ameriprise (NYSE:AMP), BofA (NYSE:BAC), Banner (NASDAQ:BANR), Citigroup (NYSE:C), Citizens Financial (NYSE:CFG), East West Bancorp (NASDAQ:EWBC), First NBC (NASDAQ:FNBC), HFF (NYSE:HF), KeyCorp (NYSE:KEY), Legacy Texas (NASDAQ:LTXB), Lincoln National (NYSE:LNC), Morgan Stanley (NYSE:MS), Old National (NASDAQ:ONB), PacWest (NASDAQ:PACW), PNC Financial (NYSE:PNC), Principal Financial (NYSE:PFG), Stifel Financial (NYSE:SF), SVB Financial (NASDAQ:SIVB), TCF Financial (NYSE:TCB), Wells Fargo (NYSE:WFC).
Wed, Feb. 24, 9:47 AM
- Q4 non-GAAP income of $40.2M or $0.51 per share vs. $58.4M and $0.75 one year ago. The results exclude $29M of after-tax merger related expenses for the Barclays and Sterne Agee deals. Full-year non-GAAP income of $2.46 per share vs. $2.76 in 2014.
- Brokerage revenue of $294.8M up 9% Y/Y.
- Investment banking revenue of $102.8M down 40% Y/Y. Equity revenue of $40.5M down 15%; Fixed-income revenue of $29.6M down 41%; Advisory fee revenue of $32.6M down 68%.
- Asset management and service fee revenue of $129.3M up 22% Y/Y.
- Comp and benefits expense (excl. merger-related) as a percentage of net revenue of 64.8% up from 61.5% a year ago.
- Previously: Stifel Financial misses by $0.16, misses on revenue (Feb. 23)
- SF -7.7%
Tue, Feb. 23, 4:23 PM
- Stifel Financial (NYSE:SF): Q4 EPS of $0.51 misses by $0.16.
- Revenue of $581.3M (+0.6% Y/Y) misses by $37.85M.
Mon, Feb. 22, 5:35 PM
- ABCO, ALDR, ARC, ATRC, BBRG, BNFT, CAR, CONE, CPRT, CVG, CZR, DWA, DXCM, DY, EHTH, EIX, ENPH, ETSY, EXAM, EXR, FIVN, FMI, FSLR, GNMK, HAWK, HCKT, HLS, INFI, JAZZ, JBT, KRA, MASI, MATX, MSA, NYMT, ORA, PEI, PLKI, PRA, PRSS, PZZA, ROIC, RP, RUBI, SF, SLCA, SM, TGB, TROX, TTPH, TX, UCTT, VRSK, WBMD, WMGI, WTR, XXIA, Y
Mon, Feb. 22, 12:44 PM
Mon, Feb. 22, 9:56 AM
Mon, Jan. 4, 5:12 PM
- Stifel Financial (SF -2.2%) has wrapped up its acquisition of Eaton Partners, an addition that ramps up its advisory business.
- The deal was expected to be immediately accretive to earnings. Eaton will keep its brand name and run as a Stifel company.
- Stifel will take advantage of Eaton's relationship with more than 4,000 institutional investors. The firm has more than 60 employees over six offices, and has raised $25B in the past five years for its funds.
Nov. 9, 2015, 11:11 AM
- Stifel Financial (NYSE:SF) initially dropped sharply following a sizable earning miss reported after the close on Wednesday. CEO Ron Kruszewski noted the challenging market environment, but says the company continues to build a balanced wealth-management and institutional services company (Sterne Agee and Barclays' Americas wealth-management unit were both purchased this year).
- After a tough run for the stock though, buyers are emerging, and today's 4.1% gain, combined with a late Thursday bounce and an advance on Friday, has brought the shares above where they stood prior to the Q3 results.
- Nomura upgrades to Buy from Neutral.