Stifel Financial Corp. (NYSE:SF) Q3 2024 Earnings Conference Call October 23, 2024 9:00 AM ET

Company Participants

Joel Jeffrey - Senior Vice President of Investor Relations
Ron Kruszewski - Chairman and CEO
Jim Marischen - CFO

Conference Call Participants

Devin Ryan - Citizens JMP
Steven Chubak - Wolfe Research
Benjamin Rubin - UBS
William Katz - TD Cowen

Operator

Good day, and welcome to the Stifel Financial Third Quarter 2024 Financial Results Conference Call. Today's conference is being recorded.

At this time, I would like to turn the conference over to Joel Jeffrey, Senior Vice President of Investor Relations. Please go ahead.

Joel Jeffrey

Thanks, operator. I'd like to welcome everyone to Stifel Financial's Third Quarter 2024 Earnings 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 an earnings release and posted a slide deck and financial supplement to our website, which can be found on the Investor Relations page at www.stifel.com.

I would note, that for some of the numbers we state throughout our presentation are presented on a non-GAAP basis and I would refer to a 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 other slide presentation and for information on forward-looking statements and non-GAAP measures.

This audio cast is copyrighted material of Stifel Financial Corp. and may not be duplicated, reproduced, or rebroadcast without the consent of Stifel Financial.

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

Ron Kruszewski

Thanks, Joel. Good morning, and thanks to everyone for taking the time to listen to our Third Quarter 2024 Earnings Conference Call. Looking at our third quarter results, net revenue of $1.23 billion was in our history, our second highest quarterly revenue, up 17% year-on-year. The growth in our business was essentially across the Board as follows. Commissions and principal transactions increased 15% as both Wealth Management and our Institutional Group generated double-digit increases. Investment banking increased 66% as capital raising revenue more than doubled while advisory revenue increased 41%.

Record asset management revenue was up 15%, reflecting organic growth and market appreciation. As we noted earlier in the year, we thought net interest income had bottomed, and providing evidence of this in the third quarter, NII increased by 4% and reached the high end of our guidance. I'd also highlight that our sweep deposit balances increased by nearly $370 million, which was the first quarterly increase since the first quarter of 2022, which by the way coincided with the Fed beginning to raise rates.