Stifel Financial (SF) delivered a strong third quarter performance, with year-to-date earnings per share rising 57% and revenue climbing 9% to $4.3 billion.
Chairman and CEO Ronald J. Kruszewski said the results “again underscore the strength of Stifel’s diversified business model,” adding that the firm is “on track for another record year.”
Excluding the impact of a prior-year legal charge, EPS grew 22%, with return on tangible common equity reaching 24.1% through the first three quarters of 2026.
Year-to-date EPS of $4.33 reflects the firm’s ability to grow earnings even as market conditions became more turbulent heading into the final stretch of the quarter.
Kruszewski noted that September brought choppier conditions as geopolitical tensions, rising energy prices, and renewed inflation concerns prompted the Federal Reserve’s first rate increase in three years.
He emphasized that “it was the speed of the move in rates, more than their absolute level, that unsettled markets,” affecting client activity and transactional revenue late in the period.
Despite the market disruption, Stifel posted its lowest compensation ratio since the fourth quarter of 2022, driving a pretax margin of 22.5% for the quarter.
CFO James Marischen reported non-GAAP EPS of $1.46, coming in ahead of consensus on stronger investment banking revenues, higher net interest income, and well-controlled expenses.
Total non-GAAP revenues reached $1.43 billion for the quarter, essentially flat year-over-year and just 1% below consensus estimates heading into the earnings release.
Investment banking revenue beat Street expectations by $12 million, or 4%, with both advisory and underwriting revenue surpassing analyst forecasts for the period.
Global Wealth Management was a standout segment, generating record net revenue of $980 million, up 8% year-on-year, fueled by record asset management revenue and record third quarter net interest income.
Total client assets reached $576 billion at quarter end, up 6% year-over-year, while fee-based assets grew 9% to $240 billion, reflecting continued platform strength.
Stifel grew its loan book by $1.3 billion during the quarter, and net interest income exceeded guidance, reaching a level nearly in line with the firm’s highest-ever quarterly total.
The firm repurchased 1.6 million shares during the quarter, demonstrating confidence in its capital position even amid volatile market conditions.
On the question of wealth management flows, Marischen noted that while net new assets were slightly negative for the quarter, the firm added 90 total advisors over the prior 12 months, including 28 experienced advisors with trailing production of $19 million.
Equity transactional revenue came in at $41 million, down from $59 million a year ago, driven by the firm’s European restructuring, lower equity volumes, and approximately $7 million of trading marks in equity facilitation inventory.
