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Mar 31, 2022
Stifel Q1 2022 Earnings Report
Stifel's Q1 2022 performance remained strong, with revenue and EPS figures ranking as the second-highest for the first quarter in the company's history.
Key Takeaways
Stifel Financial Corp. reported net revenues of $1.1 billion for Q1 2022, on par with the previous year. Net income available to common shareholders was $164.2 million, resulting in diluted EPS of $1.39. The company's Global Wealth Management and Institutional Fixed Income sectors showed strength, offsetting challenges in other areas. The firm anticipates a positive outlook for the remainder of 2022, expecting to capitalize on asset sensitivity and continued growth in various business segments.
Net revenues reached the second-highest first-quarter level, boosted by asset management, advisory, net interest income, and fixed income transactional revenues.
Non-GAAP net income available to common shareholders stood at $1.49 per share.
Asset management revenues achieved a record, increasing by 23% compared to the previous year's quarter.
Net interest income also hit a record, rising 38% from the same quarter last year.
Stifel
Stifel
Forward Guidance
The outlook for the remainder of 2022 is strong. The company expects to benefit from its significant asset sensitivity and the continued growth in other business lines.
Positive Outlook
- Benefit from significant asset sensitivity.
- Continued growth in other business lines.
- Record Global Wealth Management revenue.
- Record Institutional Fixed Income transactional revenue.
- Investment banking pipeline at record levels.
Challenges Ahead
- Headwinds in some business lines.
- Equity capital raising revenues decreased significantly from a year ago on lower issuances in line with market volumes in an uncertain market environment.
- Fixed income capital raising revenues decreased from a year ago as microeconomic conditions contributed to lower bond issuances.
- Equity transactional revenues declined from the year-ago quarter primarily as a result of trading losses and declines in cash equities.
- Broad macroeconomic and geopolitical concerns led to volatility in global equity prices, resulting in trading losses compared with trading gains during the prior year period.