Stifel Financial's Q2 2025: Contradictions in M&A Outlook, AI Integration, and Wealth Management Growth

Strong Second Quarter Performance:
- Stifel Financial Corp. reported a record second quarter net revenue of $1.28 billion and core EPS of $1.71, with a return on tangible common equity of 22%.
- This performance was driven by improved investor sentiment, record client assets in wealth management, and a rebound in M&A and capital markets activity.

Global Wealth Management Growth:
- Global Wealth Management posted its strongest second quarter ever, with record client assets and higher net interest income.
- This growth was supported by strong equity markets, strong asset inflows, and strategic adviser recruitment, including 82 new advisers.

Investment Banking and Institutional Business:
- Firm-wide investment banking revenues totaled $233 million, with significant contributions from capital raising and fixed income underwriting.
- The improvement in investment banking revenues was attributed to increased market volatility and a rebound in activity following tariff relief.

AI and Workflow Efficiency:
- Stifel is systemically reviewing workflows to integrate AI tools for enhancing productivity and insights, particularly in investment banking analytics and adviser support.
- The focus is on amplifying professionals' capabilities rather than replacing human judgment in areas that require trust and relationships.