Feb. 24--Updated at 6:40 p.m.
Stifel Financial Corp.'s fourth quarter profit rose 21 percent on higher revenue in its global wealth management business and higher advisory fee and equity brokerage revenue in its institutional group.
The St. Louis-based brokerage and investment firm reported a net income of $48.3 million, or 64 cents a share, up from a $40 million, or 63 cents a share, a year earlier. EPS didn't grow as much as net income because Stifel issued more outstanding shares when it completed its purchase of investment bank KBW early last year.
Excluding merger costs of acquiring KBW and other firms, Stifel reported an adjusted earnings of 79 cents a share. This was much higher than the 68 cents that analysts, on average, had been expecting, according to Bloomberg.
Its revenue in the fourth quarter grew to a record $562.5 million, up 37 percent from a year earlier, as the company's advisory fee, capital raising and institutional brokerage revenue grew in the quarter.
In a conference call with analysts, Stifel's Chairman, President and CEO Ronald Kruszewski said Stifel's acquisitions of New-York based KBW in February 2013 and New York investment bank Miller Buckfire & Co. in December 2012 contributed to the revenue gains.
For the full year, Stifel reported a $172.9 million profit, or $2.35 a share, up from a $145.3 million profit, or $2.31 a share, in 2012.
"The markets were up and our businesses performed very well," Kruszewski said in the call.
EDITOR'S NOTE: This story was updated to use net income rather than profit from continuing operations, and provide consensus estimate by analysts.
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