Stifel Financial Corporation · NYSE:SF
Stifel Financial — Q2 2022 Earnings Presentation
16 slides from Stifel Financial's earnings presentation, Jul 27, 2022
Slide 1: Second Quarter 2022 Financial Results Presentation
Second Quarter 2022 Financial Results Presentation July 27, 2022 Quarterly Earnings Report
Slide 2: Second Quarter & YTD Snapshot
Second Quarter & YTD Snapshot 2Q22 & YTD Results HIGHLIGHTS millions, except share and ratios Second Highest Second Quarter & First Half GAAP Non- GAAP Net Revenue 2Q22 YTD 2Q22 YTD Net Revenue $1,108 $2,225 $1,108 $2,225 Record Quarterly & Six Month Global Wealth Management Revenue Net Earnings $15
Slide 3: Second Quarter Results
Second Quarter Results FINANCIAL RESULTS Sequential NET REVENUE millions 2Q22 Y/Y Change YTD VS 2021 Change $1,400 $1,304 Global Wealth Management $698 10% 2% $1,380 9% $1,200 $1,153 $1,145 $1,117 Institutional 411 -21% -5% 843 -18% $1,108 Other -1 n/m n/m 2 n/m $1,000 Net revenue 1,108 -4% -1% 2,22
Slide 4: Global Wealth Management
Global Wealth Management GLOBAL WEALTH MANAGEMENT REVENUE HIGHLIGHTS Sequential millions 2Q22 Y/Y Change YTD VS 2021 Change ■ Record Quarterly Revenue of $698 million, up 10% Y/Y Transactional $170 -13% -3% $347 -12% ■ Record Net Interest Income of $196 million, up 57% Y/Y Asset Management 331 12% -
Slide 5: Wealth Management Metrics
Wealth Management Metrics RECRUITING DRIVES REVENUE GROWTH INCREASING PERCENTAGE OF RECURRING REVENUE $400 500 100% 450 90% $350 26% 80% 39% 34% 32% 33% 32% 400 $300 46% 51% Financial Advisors 350 70% $250 300 60% millions $200 250 50% 200 40% $150 74% 30% 60% 66% 66% 64% 66% 150 53% $100 20% 47% 10
Slide 6: Institutional Group
Institutional Group INSTITUTIONAL GROUP REVENUE HIGHLIGHTS Sequential millions 2Q22 Y/Y Change YTD VS 2021 Change Advisory $200 -3% 10% $381 13% ■ Second Highest Second Quarter & First Half Institutional Revenue Capital Raising $66 -58% -3% $135 -62% Transactional $142 -8% -21% $321 -3% ■ Record Fir
Slide 7: Institutional Equities & Fixed Income
Institutional Equities & Fixed Income INSTITUTIONAL EQUITIES REVENUE INSTITUTIONAL FIXED INCOME REVENUE Sequential Sequential millions 2Q22 Y/Y Change YTD VS 2021 millions 2Q22 Y/Y Change YTD VS 2021 Change Change Transactional $46 -26% -19% $103 -27% Transactional $96 5% -21% $218 15% Capital Raisi
Slide 8: Investment Banking Revenue
Investment Banking Revenue INVESTMENT BANKING REVENUE HIGHLIGHTS Sequential millions 2Q22 Y/Y Change YTD VS 2021 Change ■ Record First Half Advisory Revenue Capital Raising:* ■ Second Highest Second Quarter Investment Banking Equity $28 -75% -15% $61 -78% Revenue Debt $44 -24% 7% $84 -21% ■ Second H
Slide 9: Net Interest Income
Net Interest Income CONDENSED NET INTEREST INCOME NET INTEREST COMMENTARY 2Q22 Y/Y Change Sequential Change ■ 2Q22 Net Interest Income Increased 64% Y/Y. Average Average Average Average Average Average Balance Interest Balance Interest Balance Interest ■ Average Interest Earning Assets Increased $3.
Slide 10: Stifel Bancorp Inc. Loan & Investment Portfolio
Stifel Bancorp Inc. Loan & Investment Portfolio LOAN PORTFOLIO COMMERCIAL PORTFOLIO BY MAJOR SECTOR % of Total millions 2Q22 Portfolio Residential Real Estate $6,608 28% Fund (PE/VC Capital Call Lines) $3,450 15% Securities Based Lending 2,994 13% Industrials 1,054 4% Home Equity lines of Credit & O
Slide 11: CECL & Credit Metrics
CECL & Credit Metrics Economic Economic Economic Economic ASSUMPTIONS Factors & Portfolio Factors & Portfolio Factors & Portfolio Factors & Portfolio Changes Changes Changes Changes • Moody’s Forecast • 40% Baseline • 30% Downside • 30% Upside $11.7 • Forecast Update for Most Recent Scenarios • Incl
Slide 12: Capital & Liquidity
Capital & Liquidity FIRM-WIDE ASSETS & CAPITAL RATIOS HIGHLIGHTS $38,000 $36,476 ■ Balance Sheet Growth of $1.4 billion in 2Q22 $36,000 $35,088 $34,050 30.0% ■ Capital Ratios Remained Strong $34,000 $32,000 ■ Substantial Liquidity for Bank Growth $30,820 25.0% $29,745 $31 million of Share Repurchase
Slide 13: Expenses
Expenses NON-GAAP EXPENSES & PRE-TAX INCOME Non-GAAP EXPENSE RATIOS 65% 25% Non-compensation Ratio millions 2Q22 2Q21 Y/Y Change 63% Compensation Ratio 20% Compensation $644 $686 -6% 61% 15% Non-compensation Expense, 59% $208 $185 12% 59.5% 10% Ex. IB Gross Up & Credit Loss 57% 59.5% 58.2% 57.5% 58.
Slide 14: Concluding Remarks
Concluding Remarks Quarterly Earnings Report
Slide 15: Second Quarter 2022 Financial Results Presentation
Second Quarter 2022 Financial Results Presentation July 27, 2022 Quarterly Earnings Report
Slide 16: Disclaimer
Disclaimer Forward-Looking Statements This presentation may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that involve significant risks, assumptions, and uncertainties, including statements relating to the market opportunity and futu