Stifel Financial Corp. (NYSE:SF) Q3, 2022, Earnings Call October 26, 2022 9:00 AM ET

Company Participants

Joel Jeffrey - Head of Investor Relations

Ron Kruszewski - Chairman and Chief Executive Officer

Jim Marischen - Chief Financial Officer

Conference Call Participants

Devin Ryan - JMP Securities

Alex Blostein - Goldman Sachs

Operator

Good day. And welcome to Stifel Financial Third Quarter 2022 Financial Results Conference Call. Today's conference is being recorded.

At this time, I'd like to turn the conference over to Mr. Joel Jeffrey, Head of Investor Relations at Stifel Financial. Please go ahead.

Joel Jeffrey

Thank you, Katie. I'd like to welcome everyone to Stifel Financial's third quarter 2021 financial results conference call. I'm joined on the call today by our Chairman and CEO, Ron Kruszewski; our Co-Presidents, Victor Nesi and Jim Zemlyak; and our CFO, Jim Marischen.

Earlier this morning, we issued our earnings release and posted a slide deck and financial supplement to our website, which can be found on our Investor Relations page at www.stifel.com. I would note that some of the numbers that we state throughout our presentation are presented on a non-GAAP basis and I would refer to our reconciliation of GAAP to non-GAAP as disclosed in our press release. I would also remind listeners to refer to our earnings release, financial supplement and our slide presentation for information on forward-looking statements and non-GAAP measures. This audio cast is copyrighted material of Stifel Financial. It may not be duplicated, reproduced or rebroadcast without our consent.

I will now turn the call over to our Chairman and CEO, Ron Kruszewski.

Ron Kruszewski

Thanks, Joel. To our guests, good morning, and thank you for taking the time to listen to our third quarter results. Stifel posted a strong quarter as our Global Wealth Management segment generated its seventh consecutive record quarter. Investments we have made have diversified our revenue sources and continue to enable us to create solid results despite market headwinds.

The first nine months, revenues totaled $3.3 billion, with earnings per share of $4.17, and we are on track to record our second strongest annual revenue and earnings per share. This performance was despite market conditions that included a 25% decline in the S&P 500, nearly nonexistent capital raising activity in subdued trading markets. Our results prove that our diverse business model is capable of generating consistent top and bottom-line results as well as solid book value growth as our year-to-date tangible book value per share is up 5% and our book value per share increased 3%. Looking at the details of our third quarter results on Slide 2. Revenue totaled nearly $1.05 billion, and earnings per share came in at $1.29. I would highlight that our pretax margin of almost 21% was our eighth consecutive quarter with operating margins above 20%. Our tangible book value of $29.63 increased by nearly $1 a share sequentially and is up 90% since 2017.