From the Wires
Stifel Financial Corp. Reports Third Quarter 2012 Financial Results
Record Net Revenues for the Three Months Ended September 30, 2012
Nov. 5, 2012 07:30 AM
ST. LOUIS, MO -- (Marketwire) -- 11/05/12 --
Highlights for the three months ended September 30, 2012:
- Record net revenues of $420.1 million.
- Net income of $37.7 million, or $0.60 per diluted share.
- Stockholders' equity was $1.43 billion and book value per share was $26.62.
Highlights for the nine months ended September 30, 2012:
- Record net revenues of $1.2 billion increased 13% from the comparable period in 2011.
- Record net income of $98.6 million, or $1.57 per diluted share.
Stifel Financial Corp. (NYSE: SF) today reported unaudited net income of $37.7 million, or $0.60 per diluted share, on record net revenues of $420.1 million for the three months ended September 30, 2012, compared with net income of $22.3 million, or $0.35 per diluted share, on net revenues of $334.2 million for the third quarter of 2011.
For the nine months ended September 30, 2012, the Company reported record net income of $98.6 million, or $1.57 per diluted share, on net revenues of $1.2 billion, compared with net income of $57.1 million, or $0.90 per diluted share(1), on net revenues of $1.1 billion during the comparable period in 2011. Included in net revenues for the three and nine months ended September 30, 2012 is $25.6 million in realized and unrealized gains recognized on the Company's investment in Knight Capital Group, Inc. The after-tax impact of these gains was $0.09 per diluted share.
"I am pleased with our third quarter results, which included record net revenues, as well as with our record net revenues and net income for the first nine months of 2012. Our results highlight the soundness of our balanced business model, particularly against a challenging economic backdrop. In the quarter, both the Global Wealth Management and Institutional Group segments performed well," commented Ronald J. Kruszewski, Chairman, President and CEO of Stifel Financial. "We continue to invest in businesses that expand our client services, and which we believe will return shareholder value. Opportunities drive our growth. Today's announcement of our merger with KBW furthers our goal of creating the premier middle-market investment bank with a specialized focus on the financial services industry."
Summary Results of Operations (Unaudited)
-----------------------------------------
Three Months Ended
--------------------------------------------
% %
(in 000s) 9/30/12 9/30/11 Change 6/30/12 Change
--------- --------- ------ --------- ------
Net revenues $ 420,080 $ 334,214 25.7 $ 374,407 12.2
Net income $ 37,710 $ 22,304 69.1 $ 26,136 44.3
Earnings per share:
Basic $ 0.70 $ 0.43 62.8 $ 0.49 42.9
Diluted $ 0.60 $ 0.35 71.4 $ 0.42 42.9
Weighted average number of common shares outstanding:
Basic 53,601 52,367 2.4 53,569 0.1
Diluted 63,054 63,152 (0.2) 62,678 0.6
Nine Months Ended
------------------------------
%
(in 000s) 9/30/12 9/30/11 Change
----------- ----------- ------
Net revenues $ 1,194,820 $ 1,059,684 12.8
Net income $ 98,619 $ 57,118 72.7
Earnings per share:
Basic $ 1.84 $ 1.09 68.8
Diluted $ 1.57 $ 0.90 74.4
Weighted average number of
common shares outstanding:
Basic 53,471 52,610 1.6
Diluted 62,817 63,174 (0.6)
Business Segment Results
Summary Segment Results (Unaudited)
-----------------------------------
Three Months Ended
-------------------------------------------------
%
(in 000s) 9/30/12 9/30/11 % Change 6/30/12 Change
--------- --------- -------- --------- ------
Net revenues:
Global Wealth
Management $ 251,728 $ 219,498 14.7 $ 240,029 4.9
Institutional Group
(2) 169,679 113,259 49.8 135,297 25.4
Other (1,327) 1,457 (191.1) (919) (44.4)
--------- --------- -------- --------- ------
$ 420,080 $ 334,214 25.7 $ 374,407 12.2
--------- --------- -------- --------- ------
Pre-tax operating
income:
Global Wealth
Management $ 68,370 $ 55,612 22.9 $ 61,353 11.4
Institutional Group
(2) 33,427 9,152 265.2 17,546 90.5
Other (3) (40,120) (25,741) 55.9 (35,025) 14.5
--------- --------- -------- --------- ------
$ 61,677 $ 39,023 58.1 $ 43,874 40.6
--------- --------- -------- --------- ------
Nine Months Ended
--------------------------------
%
(in 000s) 9/30/12 9/30/11 Change
----------- ----------- ------
Net revenues:
Global Wealth
Management $ 740,105 $ 683,589 8.3
Institutional Group
(2) 453,480 373,168 21.5
Other 1,235 2,927 (57.8)
----------- ----------- ------
$ 1,194,820 $ 1,059,684 12.8
----------- ----------- ------
Pre-tax operating
income:
Global Wealth
Management $ 198,901 $ 172,510 15.3
Institutional Group
(2) 74,677 52,496 42.3
Other (3) (108,773) (131,424) (17.2)
----------- ----------- ------
$ 164,805 $ 93,582 76.1
----------- ----------- ------
Global Wealth Management
For the quarter ended September 30, 2012, the Global Wealth Management ("GWM") segment generated pre-tax operating income of $68.4 million, compared with $55.6 million in the third quarter of 2011 and $61.4 million in the second quarter of 2012. Net revenues for the quarter were $251.7 million, compared with $219.5 million in the third quarter of 2011, and $240.0 million in the second quarter of 2012. The increase in net revenues over the comparable period in 2011 is primarily attributable to: (1) higher principal transactions revenues, offset by a decrease in commissions revenue; (2) higher sales credits from investment banking underwritings; (3) growth in asset management and service fees as a result of an increase in assets under management and positive gains in market performance; and (4) increased net interest revenues as a result of the growth of net interest-earning assets at Stifel Bank. The increase in net revenues from the second quarter of 2012 was primarily attributable to: (1) higher sales credits from investment banking underwritings; (2) an increase in principal transactions revenues; and (3) increased net interest revenues as a result of the growth of net interest-earning assets at Stifel Bank.
- The Private Client Group reported net revenues of $229.4 million, a 14% increase compared with the third quarter of 2011 and a 4% increase compared with the second quarter of 2012.
- Stifel Bank reported net revenues of $22.3 million, a 27% increase compared with the third quarter of 2011 and a 17% increase compared with the second quarter of 2012.
Institutional Group
For the quarter ended September 30, 2012, the Institutional Group segment generated pre-tax operating income of $33.4 million, compared with $9.2 million in the third quarter of 2011 and $17.5 million in the second quarter of 2012. Net revenues for the quarter were $169.7 million, compared with $113.3 million in the third quarter of 2011 and $135.3 million in the second quarter of 2012. The increase in net revenues from the comparable period in 2011 was driven by: (1) an increase in advisory fees; (2) an increase in fixed income capital raising revenues; (3) higher fixed income institutional brokerage revenues; and (4) the realized and unrealized gains recognized on the Company's investment in Knight Capital Group, Inc. Offsetting these increases was a decrease in equity institutional brokerage revenues. The increase in net revenues from the second quarter of 2012 was primarily attributable to: (1) an increase in fixed income institutional brokerage revenues; and (2) the realized and unrealized gains recognized on the Company's investment in Knight Capital Group, Inc.
Institutional brokerage revenues were $82.8 million, a 5% increase compared with the third quarter of 2011 and a 10% increase compared with the second quarter of 2012.
- Equity brokerage revenues were $38.0 million, a 20% decrease compared with the third quarter of 2011 and a 1% decrease compared with the second quarter of 2012.
- Fixed income brokerage revenues were $44.8 million, a 41% increase compared with the third quarter of 2011 and a 23% increase compared with the second quarter of 2012.
Investment banking revenues were $59.6 million, a 76% increase compared with the third quarter of 2011 and a 1% increase compared with the second quarter of 2012.
- Equity capital raising revenues were $17.5 million, a 7% increase compared with the third quarter of 2011 and a 1% decrease compared with the second quarter of 2012.
- Fixed income capital raising revenues were $14.9 million, a 194% increase compared with the third quarter of 2011 and a 2% increase compared with the second quarter of 2012.
- Advisory fee revenues were $27.2 million, a 118% increase compared with the third quarter of 2011 and a 2% increase compared with the second quarter of 2012.
Consolidated Compensation and Benefits Expenses
For the quarter ended September 30, 2012, compensation and benefits expenses were $267.7 million, compared with $210.6 million in the third quarter of 2011 and $239.4 million in the second quarter of 2012.
Compensation and benefits as a percentage of net revenues was 64% in the third quarter of 2012, compared with 63% in the third quarter of 2011 and 64% in the second quarter of 2012. Transition pay, which primarily consists of amortization of upfront notes, signing bonuses and retention awards, as a percentage of net revenues was 5% in the third quarter of 2012, consistent with the third quarter of 2011 and the second quarter of 2012.
Consolidated Non-Compensation Operating Expenses
For the quarter ended September 30, 2012, non-compensation operating expenses were $90.8 million, compared to $84.6 million in the third quarter of 2011 and $91.2 million in the second quarter of 2012.
Non-compensation operating expenses as a percentage of net revenues for the quarter ended September 30, 2012 was 22% compared with 25% in the third quarter of 2011 and 24% in the second quarter of 2012. The lower ratio in the third quarter of 2012 was driven by the impact of higher revenues.
Provision for Income Taxes
The effective income tax rate for the quarter ended September 30, 2012 was 39% compared with 43% in the third quarter of 2011 and 40% in the second quarter of 2012.
Statement of Financial Condition (Unaudited)
Total assets increased 24% to $6.1 billion as of September 30, 2012 from $4.9 billion as of September 30, 2011. The increase is primarily attributable to growth of Stifel Bank, the Company's bank subsidiary, which as of September 30, 2012 has grown its assets to $3.2 billion from $2.3 billion as of September 30, 2011. As of September 30, 2012, Stifel Bank's investment portfolio of $2.1 billion has increased 45% from September 30, 2011, with more than 99% of the investment portfolio comprised of investment grade securities, of which more than 71% were Government-Sponsored Enterprise guaranteed MBS or AAA-rated investments. The Company's broker-dealer subsidiary's gross assets and liabilities, including trading inventory, stock loan/borrow, receivables and payables from/to brokers, dealers and clearing organizations and clients, fluctuate with business levels and overall market conditions.
Total stockholders' equity as of September 30, 2012 increased $165.4 million, or 13%, to $1.427 billion from $1.262 billion as of September 30, 2011. Book value per share was $26.62 as of September 30, 2012. The Company repurchased $9.1 million, or 0.3 million shares, of its common stock pursuant to existing Board repurchase authorizations during the nine months ended September 30, 2012.
As of September 30, 2012, the Company reported total securities owned and investments at fair value of $2.4 billion, which included securities categorized as Level 3 of $214.5 million. The Company's Level 3 assets include auction rate securities with a fair value of $162.8 million, and private equity and other fixed income securities with a fair value $51.7 million as of September 30, 2012.
Conference Call Information
Stifel Financial Corp. will host its third quarter 2012 financial results conference call on Monday, November 5, 2012, at 8:30 a.m. Eastern time. The conference call may include forward-looking statements.
All interested parties are invited to listen to the Company's Chairman, President, and CEO, Ronald J. Kruszewski, by dialing (800) 651-2240 and referencing conference ID #64728788. A live audio webcast of the call, as well as a presentation highlighting the Company's results, will be available through the Company's web site, www.stifel.com. For those who cannot listen to the live broadcast, a replay of the broadcast will be available through the above-referenced web site beginning approximately one hour following the completion of the call.
Company Information
Stifel Financial Corp. (NYSE: SF) is a financial services holding company headquartered in St. Louis, Missouri that conducts its banking, securities, and financial services business through several wholly owned subsidiaries. Stifel clients are served through Stifel, Nicolaus & Company, Incorporated in the U.S., through Stifel Nicolaus Canada Inc. in Canada, and through Stifel Nicolaus Europe Limited in the United Kingdom and Europe. The Company's broker-dealer affiliates provide securities brokerage, investment banking, trading, investment advisory, and related financial services to individual investors, professional money managers, businesses, and municipalities. Stifel Bank & Trust offers a full range of consumer and commercial lending solutions. Stifel Trust Company, N.A. offers trust and related services. To learn more about Stifel Financial, please visit the Company's web site at www.stifel.com.
Forward-Looking Statements
This earnings release contains certain statements that may be deemed to be "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements in this earnings release not dealing with historical results are forward-looking and are based on various assumptions. The forward-looking statements in this earnings release are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in or implied by the statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among other things, the following possibilities: the ability to successfully integrate acquired companies or the branch offices and financial advisors; a material adverse change in financial condition; the risk of borrower, depositor, and other customer attrition; a change in general business and economic conditions; changes in the interest rate environment, deposit flows, loan demand, real estate values, and competition; changes in accounting principles, policies, or guidelines; changes in legislation and regulation; other economic, competitive, governmental, regulatory, geopolitical, and technological factors affecting the companies' operations, pricing, and services; and other risk factors referred to from time to time in filings made by Stifel Financial Corp. with the Securities and Exchange Commission. Forward-looking statements speak only as to the date they are made. Stifel Financial Corp. disclaims any intent or obligation to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.
Summary Results of Operations (Unaudited)
------------------------------------------
Three Months Ended
--------------------------------------------
(in thousands, except per % %
share amounts) 9/30/12 9/30/11 Change 6/30/12 Change
--------- --------- ------ --------- ------
Revenues:
Commissions $ 127,966 $ 143,243 (10.7) $ 127,427 0.4
Principal transactions 102,979 76,650 34.4 91,564 12.5
Investment banking 72,938 37,673 93.6 67,363 8.3
Asset management and
service fees 62,881 58,253 7.9 65,311 (3.7)
Other income 31,922 540 * 5,418 489.2
--------- --------- ------ --------- ------
Operating revenues 398,686 316,359 26.0 357,083 11.7
Interest revenue 27,306 24,161 13.0 27,181 0.5
--------- --------- ------ --------- ------
Total revenues 425,992 340,520 25.1 384,264 10.9
Interest expense 5,912 6,306 (6.2) 9,857 (40.0)
--------- --------- ------ --------- ------
Net revenues 420,080 334,214 25.7 374,407 12.2
--------- --------- ------ --------- ------
Non-interest expenses:
Compensation and benefits 267,652 210,573 27.1 239,374 11.8
Occupancy and equipment
rental 33,061 30,914 6.9 32,320 2.3
Communications and office
supplies 19,976 18,838 6.0 20,797 (3.9)
Commission and floor
brokerage 8,031 7,400 8.5 7,747 3.7
Other operating expenses 29,683 27,466 8.1 30,295 (2.0)
--------- --------- ------ --------- ------
Total non-interest
expenses 358,403 295,191 21.4 330,533 8.4
Income before income taxes 61,677 39,023 58.1 43,874 40.6
Provision for income taxes 23,967 16,719 43.4 17,738 35.1
--------- --------- ------ --------- ------
Net income $ 37,710 $ 22,304 69.1 $ 26,136 44.3
--------- --------- ------ --------- ------
Earnings per share:
Basic $ 0.70 $ 0.43 62.8 $ 0.49 42.9
Diluted $ 0.60 $ 0.35 71.4 $ 0.42 42.9
Weighted average number of common shares
outstanding:
Basic 53,601 52,367 2.4 53,569 0.1
Diluted 63,054 63,152 (0.2) 62,678 0.6
-------------------------------
* Percentage not meaningful.
Nine Months Ended
------------------------------
(in thousands, except per %
share amounts) 9/30/12 9/30/11 Change
----------- ----------- ------
Revenues:
Commissions $ 378,696 $ 437,344 (13.4)
Principal transactions 310,776 249,250 24.7
Investment banking 210,739 143,509 46.8
Asset management and
service fees 189,010 172,914 9.3
Other income 50,634 11,352 346.0
----------- ----------- ------
Operating revenues 1,139,855 1,014,369 12.4
Interest revenue 79,744 64,246 24.1
----------- ----------- ------
Total revenues 1,219,599 1,078,615 13.1
Interest expense 24,779 18,931 30.9
----------- ----------- ------
Net revenues 1,194,820 1,059,684 12.8
----------- ----------- ------
Non-interest expenses:
Compensation and benefits 761,730 671,678 13.4
Occupancy and equipment
rental 96,172 89,962 6.9
Communications and office
supplies 61,146 56,198 8.8
Commission and floor
brokerage 23,390 20,943 11.7
Other operating expenses 87,577 127,321 (31.2)
----------- ----------- ------
Total non-interest
expenses 1,030,015 966,102 6.6
Income before income taxes 164,805 93,582 76.1
Provision for income taxes 66,186 36,464 81.5
----------- ----------- ------
Net income $ 98,619 $ 57,118 72.7
----------- ----------- ------
Earnings per share:
Basic $ 1.84 $ 1.09 68.8
Diluted $ 1.57 $ 0.90 74.4
Weighted average number of
common shares outstanding:
Basic 53,471 52,610 1.6
Diluted 62,817 63,174 (0.6)
-----------------------------
* Percentage not meaningful.
(in thousands, except per share, employee and location amounts)
% %
9/30/12 9/30/11 Change 6/30/12 Change
------------- ------------- ------ ------------- ------
Statistical
Information:
Book value per
share $ 26.62 $ 24.48 8.7 $ 25.63 3.9
Financial advisors
(4) 2,042 1,961 4.1 2,028 0.7
Full-time
associates 5,266 4,942 6.6 5,196 1.3
Locations 338 313 8.0 332 1.8
Total client
assets (5) $ 136,015,000 $ 110,797,000 22.8 $ 131,026,000 3.8
Global Wealth Management Summary Results of Operations (Unaudited)
Three Months Ended
--------------------------------------------
% %
(in 000s) 9/30/12 9/30/11 Change 6/30/12 Change
--------- --------- ------ --------- ------
Revenues:
Commissions $ 89,393 $ 92,029 (2.9) $ 88,423 1.1
Principal transactions 58,801 48,836 20.4 55,628 5.7
Asset management and
service fees 62,871 58,007 8.4 65,169 (3.5)
Net interest 22,283 15,016 48.4 18,233 22.2
Investment banking 13,347 3,737 257.2 8,531 56.5
Other income 5,033 1,873 168.7 4,045 24.4
--------- --------- ------ --------- ------
Net revenues 251,728 219,498 14.7 240,029 4.9
--------- --------- ------ --------- ------
Non-interest expenses:
Compensation and benefits 146,882 128,244 14.5 140,984 4.2
Non-compensation operating
expenses 36,476 35,642 2.3 37,692 (3.2)
--------- --------- ------ --------- ------
Total non-interest
expenses 183,358 163,886 11.9 178,676 2.6
--------- --------- ------ --------- ------
Income before income taxes $ 65,921 $ 55,612 22.9 $ 61,353 11.4
--------- --------- ------ --------- ------
As a percentage of net
revenues:
Compensation and benefits 58.3 58.4 58.7
Non-compensation operating
expenses 14.5 16.3 15.7
Income before income taxes 27.2 25.3 25.6
Nine Months Ended
-----------------------------
%
(in 000s) 9/30/12 9/30/11 Change
---------- ---------- -------
Revenues:
Commissions $ 268,839 $ 287,384 (6.5)
Principal transactions 173,474 156,262 11.0
Asset management and
service fees 188,626 172,354 9.4
Net interest 58,163 39,586 46.9
Investment banking 34,348 16,460 108.7
Other income 16,655 11,543 44.3
---------- ---------- -------
Net revenues 740,105 683,589 8.3
---------- ---------- -------
Non-interest expenses:
Compensation and benefits 431,623 403,782 6.9
Non-compensation operating
expenses 109,581 107,297 2.1
---------- ---------- -------
Total non-interest
expenses 541,204 511,079 5.9
---------- ---------- -------
Income before income taxes $ 198,901 $ 172,510 15.3
---------- ---------- -------
As a percentage of net
revenues:
Compensation and benefits 58.3 59.1
Non-compensation operating
expenses 14.8 15.7
Income before income taxes 26.9 25.2
Stifel Bank & Trust (Unaudited)
Key Statistical Information
----------------------------------------------------------------------------
(in 000s, except % %
percentages) 9/30/12 9/30/11 Change 6/30/12 Change
----------- ----------- ------ ----------- ------
Other information:
Assets $ 3,228,021 $ 2,311,371 39.7 $ 3,058,971 5.5
Investment securities 2,133,494 1,470,812 45.1 1,849,622 15.3
Retained loans, net 746,120 567,341 31.5 709,079 5.2
Loans held for sale 209,358 114,452 82.9 117,166 78.7
Deposits 2,923,671 2,120,763 37.9 2,776,684 5.3
Allowance as a
percentage of loans 0.85% 0.67% 0.88%
Non-performing assets
as a percentage of
total assets 0.07% 0.08% 0.08%
Institutional Group Summary Results of Operations (Unaudited)
Three Months Ended
--------------------------------------------
% %
(in 000s) 9/30/12 9/30/11 Change 6/30/12 Change
--------- --------- ------ --------- ------
Revenues:
Commissions $ 38,574 $ 51,214 (24.7) $ 39,004 (1.1)
Principal transactions 44,178 27,815 58.8 35,936 22.9
Capital raising 32,386 21,436 51.1 32,202 0.6
Advisory fees 27,205 12,500 117.6 26,630 2.2
--------- --------- ------ --------- ------
Investment banking 59,591 33,936 75.6 58,832 1.3
Other (6) 27,336 294 * 1,525 *
--------- --------- ------ --------- ------
Net revenues 169,679 113,259 49.8 135,297 25.4
--------- --------- ------ --------- ------
Non-interest expenses:
Compensation and benefits 104,913 74,813 40.2 84,754 23.8
Non-compensation operating
expenses 31,339 29,294 7.0 32,997 (5.0)
--------- --------- ------ --------- ------
Total non-interest
expenses 136,252 104,107 30.9 117,751 15.7
--------- --------- ------ --------- ------
Income before income taxes $ 33,427 $ 9,152 265.2 $ 17,546 90.5
--------- --------- ------ --------- ------
As a percentage of net
revenues:
Compensation and benefits 61.8 66.0 62.6
Non-compensation operating
expenses 18.5 25.9 24.4
Income before income taxes 19.7 8.1 13.0
-------------------------------
* Percentage not meaningful.
Nine Months Ended
--------------------------
%
(in 000s) 9/30/12 9/30/11 Change
--------- --------- ------
Revenues:
Commissions $ 109,858 $ 149,960 (26.7)
Principal transactions 137,302 92,988 47.7
Capital raising 106,951 80,654 32.6
Advisory fees 69,440 46,395 49.7
--------- --------- ------
Investment banking 176,391 127,049 38.8
Other (6) 29,929 3,171 *
--------- --------- ------
Net revenues 453,480 373,168 21.5
--------- --------- ------
Non-interest expenses:
Compensation and benefits 283,691 234,006 21.2
Non-compensation operating
expenses 95,112 86,666 9.7
--------- --------- ------
Total non-interest
expenses 378,803 320,672 18.1
--------- --------- ------
Income before income taxes $ 74,677 $ 52,496 42.3
--------- --------- ------
As a percentage of net
revenues:
Compensation and benefits 62.6 62.7
Non-compensation operating
expenses 20.9 23.2
Income before income taxes 16.5 14.1
-----------------------------
* Percentage not meaningful.
Institutional Group Brokerage & Investment Banking Revenues (Unaudited)
Three Months Ended
--------------------------------------------
% %
(in 000s) 9/30/12 9/30/11 Change 6/30/12 Change
--------- --------- ------ --------- ------
Institutional brokerage:
Equity $ 37,956 $ 47,185 (19.6) $ 38,466 (1.3)
Fixed income 44,796 31,844 40.7 36,474 22.8
--------- --------- ------ --------- ------
Institutional brokerage 82,752 79,029 4.7 74,940 10.4
Investment banking:
Capital raising:
Equity 17,527 16,382 7.0 17,651 (0.7)
Fixed income 14,859 5,054 194.0 14,551 2.1
--------- --------- ------ --------- ------
Capital raising 32,386 21,436 51.1 32,202 0.6
Advisory fees 27,205 12,500 117.6 26,630 2.2
--------- --------- ------ --------- ------
Investment banking $ 59,591 $ 33,936 75.6 $ 58,832 1.3
--------- --------- ------ --------- ------
Nine Months Ended
--------------------------
%
(in 000s) 9/30/12 9/30/11 Change
--------- --------- ------
Institutional brokerage:
Equity $ 120,594 $ 141,278 (14.6)
Fixed income 126,566 101,670 24.5
--------- --------- ------
Institutional brokerage 247,160 242,948 1.7
Investment banking:
Capital raising:
Equity 66,728 67,386 (1.0)
Fixed income 40,223 13,268 203.2
--------- --------- ------
Capital raising 106,951 80,654 32.6
Advisory fees 69,440 46,395 49.7
--------- --------- ------
Investment banking $ 176,391 $ 127,049 38.8
--------- --------- ------
(1) Included in the results for the nine months ended September 30, 2011 were the estimated costs of settlement and litigation-related expenses of $29.4 million after tax, or $0.47 per diluted share, respectively, associated with the civil lawsuit and related regulatory investigation in connection with the previously disclosed matter involving five Southeastern Wisconsin school districts and certain merger-related expenses.
(2) Results for the three and nine months ended September 30, 2012 include $25.6 million in realized and unrealized gains recognized on the Company's investment in Knight Capital Group, Inc.
(3) Results for the nine months ended September 30, 2011 include litigation-related charges and merger-related expenses of $47.5 million pre-tax.
(4) Includes 154, 160 and 156 independent contractors at September 30, 2012 and 2011 and June 30, 2012, respectively.
(5) Includes money market and FDIC-insured balances. Prior period amounts have been adjusted to conform to the current period presentation.
(6) Includes net interest and other income. Other income for the three and nine months ended September 30, 2012 include $25.6 million in realized and unrealized gains recognized on the Company's investment in Knight Capital Group, Inc.
About Marketwire .Copyright © 2009 Marketwire. All rights reserved. All the news releases provided by Market Wire are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.
.gif)
The personal cloud will be the main catalyst in bringing services otherwise unavailable to developing nations.
While businesses have been deploying cloud technology for some time, it's only recently that personal cloud services have emerged. The rise of the personal cloud means ...
Over the weekend Barron’s put out a piece touting AMD’s chances of taking share in the mainstream server market that belongs to Intel with its SeaMicro microserver acquisition, a development that would tickle its tiny stock price, if it ever happened. But even the thought of it, ...
Cloud computing is the game changer for the life sciences industry, according to an article on PharmaBiz.com.
Globally, pharma majors are deploying cloud technology because it provides data security, compliance and transparency, according to Vikram Anand, associate vice presiden...
Todd Bradley, the former Palm CEO who’s been running HP’s PC unit since 2005 and added printing last year when the Printing and Personal Systems (PPS) organization was formed, has apparently been pushed aside.
He is trading his job running half of HP’s revenue for a newly creat...
Last Friday calm seemed to be descending on Round Rock, Texas.
Reports were circulating that activist shareholder Carl Icahn was losing the stomach for scuttling the Michael Dell-Silver Lake Management plan to buy the company for $24.4 billion and take it private. 
