The following is a summary of the Stifel Financial Corp. (SF) Q4 2023 Earnings Call Transcript:

Financial Performance:

• Stifel Financial reported net revenue of approximately $4.4 billion in 2023.
• The firm successfully deployed $630 million of excess capital, which included rebuying 7.2 million shares and distributing $211 million in common and preferred dividends.
• The Board has announced a 17% increase in the annual dividend from $1.44 to $1.68 per share.
• Q4 net revenue was $1.15 billion, marking a 2% YoY increase, and EPS grew 150% sequentially due to higher revenues and lower non-comp operating expenses.
• Net interest income stood at $273 million, but was negatively impacted by higher deposit costs and larger average cash balances.
• Tier 1 leverage capital decreased 30 basis points sequentially.

Business Progress:

• Despite the industry-wide slowdown, Stifel achieved relatively flat M&A advisory revenue and increased the number of financial advisors by 30% in 2023 compared to 2022.
• The firm is planning for a gradual improvement in operating revenue, focusing particularly on the institutional segment.
• Forecasts for 2024 predict a total net revenue between $4.55 and $4.9 billion.
• Stifel aims to build a prominent wealth management franchise with $1 trillion client assets and become a leading middle market investment bank.
• Their balance sheet remains well-capitalized and plans for continual reinvestment in business, acquisitions, share repurchases, and recently increased dividends are in place.