Stifel Financial says its wealth management unit saw healthy growth in client assets, particularly in fee-based accounts, and the addition of dozens of advisors in the third quarter.
The company ended the quarter with 2,177 financial advisors, a 1.8% increase from the previous quarter and 3.8% increase year-over-year, according to Stifel’s third-quarter earnings report. The company’s total financial advisor count, which includes independent contractors, was 2,271 at the end of the quarter, representing a 1.7% increase from the prior quarter and a 3.6% year-over-year, Stifel says.
Total client asses in the wealth management business, meanwhile, rose 6.2% in the third quarter, to $325.16 billion, which was also 4.3% higher year-over-year, according to the report. Fee-based client assets stood at $115.16 billion at the end of September, an 8.4% rise from the prior quarter and a 6.5% increase year-over-year, Stifel says.
Brokerage revenues in the global wealth management business rose 2.2% during the third quarter to $162.6 million, which was also 1.6% higher year-over-year, according to the report. Commissions revenue in the unit was $120.6 million in the third quarter, a 3.8% increase from the second quarter and a 2.2% increase year-over-year, Stifel says.
Total net revenues in the global wealth management business were $526.84 million in the third quarter, up 4.2% from the prior quarter but down 1.4% year-over-year, according to the report.
Overall, the company posted net revenue of $883.3 million in the third quarter, which was 7.5% higher year-over-year, Stifel says. Non-GAAP net income in the third quarter was $120.5 million, up from $115.4 million posted in the prior quarter and $117.2 million reported in the third quarter of 2019, according to the report.
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