XML 51 R39.htm IDEA: XBRL DOCUMENT v3.25.0.1
Segment Reporting
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment Reporting

NOTE 26 – Segment Reporting

We currently operate through the following three business segments: Global Wealth Management, Institutional Group, and various corporate activities combined in the Other segment. Our chief operating decision maker (“CODM”) is our Chairman and Chief Executive Officer. Our CODM regularly reviews segment net revenues, compensation and benefits expense, non-compensation operating expenses, and operating income. Amounts included in non-compensation operating expenses include “Occupancy and equipment rental,” “Communications and office supplies,” “Commissions and floor brokerage,” “Provision for credit losses,” and “Other operating expenses.”

Global Wealth Management

The Global Wealth Management segment consists of two businesses, the Private Client Group and Stifel Bancorp. The Private Client Group includes branch offices and independent contractor offices of our broker-dealer subsidiaries located throughout the United States. These branches provide securities brokerage services, including the sale of equities, mutual funds, fixed income products, and insurance, as well as offering banking products to their clients through our bank subsidiaries, which provide residential, consumer, and commercial lending, as well as FDIC-insured deposit accounts to customers of our private client group and to the general public.

The success of our Global Wealth Management segment is dependent upon the quality of our products, services, financial advisors, and support personnel, including our ability to attract, retain, and motivate a sufficient number of these associates. We face competition for qualified associates from major financial services companies, including other brokerage firms, insurance companies, banking institutions, and discount brokerage firms. Segment revenue growth and operating income are used to evaluate and measure segment performance by our CODM in assessing performance and deciding how to allocate resources.

Institutional Group

The Institutional Group segment includes institutional sales and trading. It provides securities brokerage, trading, and research services to institutions, with an emphasis on the sale of equity and fixed income products. This segment also includes the management of and participation in underwritings for both corporate and public finance (exclusive of sales credits generated through the private client group, which are included in the Global Wealth Management segment), merger and acquisition, and financial advisory services.

The success of our Institutional Group segment is dependent upon the quality of our personnel, the quality and selection of our investment products and services, pricing (such as execution pricing and fee levels), and reputation. Segment revenue growth and operating income are used to evaluate and measure segment performance by our CODM in assessing performance and deciding how to allocate resources.

Other

The Other segment includes interest income from stock borrow activities, unallocated interest expense, interest income and gains and losses from investments held, amortization of stock-based awards, and all unallocated overhead cost associated with the execution of orders; processing of securities transactions; custody of client securities; receipt, identification, and delivery of funds and securities; compliance with regulatory and legal requirements; internal financial accounting and controls; and general administration and acquisition charges.

Information on reportable segments and reconciliation to consolidated net income available to common shareholders for the years ended December 31, 2024, 2023, and 2022, is as follows (in thousands):

 

 

Year Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

Global Wealth Management

 

 

 

 

 

 

 

 

 

Net revenues

 

$

3,283,960

 

 

$

3,049,962

 

 

$

2,825,866

 

Compensation and benefits

 

 

1,605,148

 

 

 

1,415,210

 

 

 

1,368,576

 

Non-compensation operating expenses

 

 

470,870

 

 

 

418,930

 

 

 

389,719

 

Operating income

 

$

1,207,942

 

 

$

1,215,822

 

 

$

1,067,571

 

Institutional Group

 

 

 

 

 

 

 

 

 

Net revenues

 

$

1,592,833

 

 

$

1,226,317

 

 

$

1,536,017

 

Compensation and benefits

 

 

959,602

 

 

 

841,671

 

 

 

929,606

 

Non-compensation operating expenses

 

 

409,831

 

 

 

382,546

 

 

 

352,279

 

Operating income

 

$

223,400

 

 

$

2,100

 

 

$

254,132

 

Other

 

 

 

 

 

 

 

 

 

Net revenues

 

$

93,527

 

 

$

72,665

 

 

$

29,556

 

Compensation and benefits

 

 

351,479

 

 

 

297,700

 

 

 

288,050

 

Non-compensation operating expenses

 

 

244,946

 

 

 

286,195

 

 

 

178,093

 

Operating loss

 

$

(502,898

)

 

$

(511,230

)

 

$

(436,587

)

Consolidated

 

 

 

 

 

 

 

 

 

Net revenues (1)

 

$

4,970,320

 

 

$

4,348,944

 

 

$

4,391,439

 

Compensation and benefits

 

 

2,916,229

 

 

 

2,554,581

 

 

 

2,586,232

 

Non-compensation operating expenses

 

 

1,125,647

 

 

 

1,087,671

 

 

 

920,091

 

Operating income

 

$

928,444

 

 

$

706,692

 

 

$

885,116

 

(1) No individual client accounted for more than 10 percent of total net revenues for the years ended December 31, 2024, 2023, and 2022.

The following table presents our company’s total assets on a segment basis at December 31, 2024 and 2023 (in thousands):

 

 

December 31,

 

 

 

2024

 

 

2023

 

Global Wealth Management

 

$

34,894,973

 

 

$

32,773,613

 

Institutional Group

 

 

4,788,640

 

 

 

4,564,058

 

Other

 

 

211,927

 

 

 

389,789

 

 

 

$

39,895,540

 

 

$

37,727,460

 

We have operations in the United States, United Kingdom, Europe, and Canada. The Company’s foreign operations are conducted through its wholly owned subsidiaries, SNEL and SNC. Substantially all long-lived assets are located in the United States.

Revenues, classified by the major geographic areas in which they were earned for the years ended December 31, 2024, 2023, and 2022, were as follows (in thousands):

 

 

Year Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

United States

 

$

4,705,379

 

 

$

4,095,476

 

 

$

4,125,563

 

United Kingdom

 

 

158,810

 

 

 

152,125

 

 

 

192,985

 

Canada

 

 

40,536

 

 

 

40,034

 

 

 

29,268

 

Other

 

 

65,595

 

 

 

61,309

 

 

 

43,623

 

 

 

$

4,970,320

 

 

$

4,348,944

 

 

$

4,391,439