Stifel Financial (NYSE:SF) Q4 earnings and revenue both fell short of Wall Street estimates Wednesday and dropped from a year ago as its Institutional Group segment experienced a nearly 45% slump in net revenues during the quarter, easily outpacing the 10.4% increase in Global Wealth Management net revenues.
The company expects net revenue for 2023 to be $4.60B-$5.0B compared with the $4.82B consensus estimate. And net interest income is expected to be $1.20B-$1.30B vs. $1.25B consensus.
Turning to fourth-quarter results, adjusted EPS of $1.58, missing the $1.64 average analyst estimate, slid from $2.23 in the year-ago period. Net revenue of $1.12B, missing the $1.14B consensus, retreated from $1.30B in Q4 2021.
Its Global Wealth Management unit saw net revenues of $744.34M, up from $674.24M a year earlier, as net interest income jumped 105% over the year-ago quarter reflecting higher interest rates and loan growth.
For the Institutional Group, net revenues came in at $353.88M compared with $633.26M in Q4 2021, as investment banking sales plummeted 53% from a year before as lower levels of advisory transactions dented advisory sales, and lower issuances hurt equity capital raising sales against a backdrop of an uncertain market environment.
Adjusted return on tangible common equity was 22.9% versus 36.6% in the year-ago quarter.
Conference call at 9:30 a.m. ET.
On Tuesday, Stifel Financial raised its quarterly dividend by 20% by $0.36 a share.