Despite the equity volatility in the first quarter, Stifel Financial’s wealth manager generated record overall revenue and asset management fees.
The St. Louis-based firm reached a new high in net interest income for good measure, with rising interest rates poised to help its bottom line along with those of Stifel’s rivals in coming months, according to the company’s April 27 earnings statement and a call with analysts.
Tumbling stock values that also leave a mark on wealth management earnings offset much of the company’s gains in business and notable recruiting additions, however. That impact and substantially higher expenses linked to the record revenue left Stifel with a small increase in profit and a steep decline in margin for the first three months of the year.
“The market environment has not been exactly what we had initially projected, and 2022 is shaping up to be very different from 2021,” CEO Ron Kruszewski said in his prepared remarks, according to a transcript by investing website Seeking Alpha. “This is why we’ve consistently emphasized the importance of the diversification of our business model.”
To see the key takeaways for financial advisors and other wealth management professionals from Stifel’s first-quarter earnings statement and call, scroll down our slideshow. For coverage of the firm’s results from the prior quarter, click here.
Note: Stifel only breaks out certain metrics specific to the more than 2,300 advisors in its Private Client Group, which is a part of the firm’s Global Wealth Management unit. The figures refer to the entire Global Wealth Management division unless otherwise noted.