ST. LOUIS (AP) — Stifel Financial Corp., a brokerage and investment banking company, said on Monday that its fourth-quarter earnings jumped 48 percent on strong revenue gains at its wealth management and institutional business segments.
The St. Louis-based company posted net income of nearly $40 million, or 63 cents per share, for the October through December period. That was up from earnings of $27 million, or 43 cents per share, in the same quarter a year ago.
Analysts surveyed by FactSet had forecast earnings of 61 cents per share, on average, in the latest quarter.
Revenue increased 17 percent to $417.8 million from $356.9 million. Analysts had been expecting $415.5 million.
Stifel Financial's largest business segment, global wealth management, recorded a nearly 14 percent revenue increase to about $255.1 million.
The company's institutional group reported a 23 percent revenue increase to nearly $165.1 million.
Stifel's two largest sources of revenue, commissions and principal transactions, posted gains of about 9 percent and 4 percent, respectively.
Revenue growth was much stronger at the company's investment banking business, which posted a 35 percent increase. Asset management and service fees revenue rose 23 percent.
Stifel announced fourth-quarter results after its shares fell 43 cents, or 1 percent, to close at $37.61.
On Feb. 15, Stifel announced it completed its previously announced acquisition of KBW in a deal that the companies valued at more than $575 million when it was announced in November. The transaction created a middle-market investment bank focused on the financial services industry.