Stifel Financial declares net income of $40m in 2012
Stifel Financial Corp today reported net income of $40.0 million, or $0.63 per diluted share, on net revenues of $417.8 million for the three months ended December 31, 2012, compared with net income of $27.0 million, or $0.43 per diluted share, on net revenues of $356.9 million for the fourth quarter of 2011. The results for the three months ended December 31, 2012 were impacted by gains recognized on the Company's investment in Knight Capital Group, Inc. offset by mergerrelated and other unusual expenses. The after-tax impact of these items was a gain of $0.02 per diluted share.
For the year ended December 31, 2012, the Company reported record net income of $138.6 million, or $2.20 per diluted share, on record net revenues of $1.61 billion, compared with net income of $84.1 million, or $1.33 per diluted share1, on net revenues of $1.4 billion during the comparable period in 2011.
2012 represented Stifel's 17th consecutive year of record net revenues. This is a significant accomplishment, particularly given past market cycles. We remain focused on our goal of delivering superior client services, which has benefitted all Stifel constituents: clients, shareholders, and associates, said Ronald J. Kruszewski, Chairman, President and CEO of Stifel.
Kruszewski continued that our fourth quarter results finished the year with record revenues. Both segments, Global Wealth Management and Institutional Group, reflected strong underlying performance, even in light of the political and economic uncertainty in the quarter. We continue to selectively add talented professionals to expand our product offerings and gain market share. At the end of last year, we acquired Miller Buckfire, a preeminent franchise in restructuring advisory, and most recently our merger with KBW, a leading financial services investment bank. As we have done in the past, we will continue to position Stifel to take advantage of opportunities.
For the quarter ended December 31, 2012, the Global Wealth Management ("GWM") segment generated pre-tax operating income of $69.3 million, compared with $62.9 million in the fourth quarter of 2011 and $68.4 million in the third quarter of 2012. Net revenues for the quarter were $255.1 million, compared with $224.6 million in the fourth quarter of 2011, and $251.7 million in the third quarter of 2012.
The increase in net revenues over the comparable period in 2011 is primarily attributable to: growth in asset management and service fees as a result of an increase in client assets and positive gains in market performance; growth in commissions revenues; higher sales credits from investment banking underwritings; and increased net interest revenues as a result of the growth of net interest-earning assets at Stifel Bank.