Stifel Financial Corporation · NYSE:SF
Stifel Financial — Q3 2022 Earnings Presentation
16 slides from Stifel Financial's earnings presentation, Oct 26, 2022
Slide 1: Third Quarter 2022 Financial Results Presentation
Third Quarter 2022 Financial Results Presentation October 26, 2022 Quarterly Earnings Report
Slide 2: Third Quarter & YTD Snapshot
Third Quarter & YTD Snapshot 3Q22 & YTD Results HIGHLIGHTS millions, except share and ratios Second Highest Third Quarter & First Nine Months GAAP Non- GAAP Net Revenue 3Q22 YTD 3Q22 YTD Net Revenue $1,045 $3,270 $1,045 $3,270 Record Quarterly & Nine Month Global Wealth Management Revenue Net Earnin
Slide 3: Third Quarter Results
Third Quarter Results FINANCIAL RESULTS Sequential NET REVENUE millions 3Q22 Y/Y Change YTD VS 2021 Change $1,400 $1,304 Global Wealth Management $702 7% 1% $2,082 8% $1,200 $1,145 $1,117 $1,108 Institutional 339 -31% -17% 1,183 -22% $1,045 Other 4 n/m n/m 6 n/m $1,000 Net revenue 1,045 -9% -6% 3,27
Slide 4: Global Wealth Management
Global Wealth Management GLOBAL WEALTH MANAGEMENT REVENUE HIGHLIGHTS Sequential millions 3Q22 Y/Y Change Change YTD VS 2021 ■ Record Quarterly Revenue of $701 million, up 7% Y/Y Transactional $157 -15% -8% $503 -13% ■ Record Net Interest Income of $242 million, up 86% Y/Y Asset Management 301 -4% -9
Slide 5: Wealth Management Metrics
Wealth Management Metrics RECRUITING DRIVES REVENUE GROWTH INCREASING PERCENTAGE OF RECURRING REVENUE $400 500 100% 450 90% 25% $350 80% 39% 34% 32% 33% 32% 400 $300 46% 51% Financial Advisors 350 70% $250 300 60% millions $200 250 50% 200 40% 75% $150 30% 60% 66% 66% 64% 66% 150 53% $100 20% 47% 10
Slide 6: Institutional Group
Institutional Group INSTITUTIONAL GROUP REVENUE Sequential HIGHLIGHTS millions 3Q22 Y/Y Change YTD VS 2021 Change Advisory $167 -20% -16% $548 0% ■ Second Highest First Nine Months Institutional Revenue Capital Raising $51 -67% -24% $185 -63% Transactional $121 -3% -15% $442 -3% ■ Record First Nine
Slide 7: Institutional Equities & Fixed Income
Institutional Equities & Fixed Income INSTITUTIONAL EQUITIES REVENUE INSTITUTIONAL FIXED INCOME REVENUE Sequential Sequential millions 3Q22 Y/Y Change YTD VS 2021 millions 3Q22 Y/Y Change YTD VS 2021 Change Change Transactional $46 -4% 1% $149 -21% Transactional $74 -2% -23% $292 10% Capital Raising
Slide 8: Net Interest Income
Net Interest Income CONDENSED NET INTEREST INCOME NET INTEREST COMMENTARY 3Q22 Y/Y Change Sequential Change ■ 3Q22 Net Interest Income Increased 86% Y/Y. Average Average Average Average Average Average Balance Interest Balance Interest Balance Interest ■ Average Interest Earning Assets Increased $5.
Slide 9: Stifel Bancorp Inc. Loan & Investment Portfolio
Stifel Bancorp Inc. Loan & Investment Portfolio LOAN PORTFOLIO COMMERCIAL PORTFOLIO BY MAJOR SECTOR % of Total millions 3Q22 Portfolio Residential Real Estate $7,049 26% Fund (PE/VC Capital Call Lines) $4,329 16% Securities Based Lending 2,786 10% Industrials 1,134 4% Home Equity lines of Credit & O
Slide 10: CECL & Credit Metrics
CECL & Credit Metrics Economic Economic Economic Economic Factors & Factors & Factors & Factors & ASSUMPTIONS Portfolio Portfolio Portfolio Portfolio Changes, net of Changes, net of Changes, net of Changes, net of charge offs charge offs charge offs charge offs • Moody’s Forecast • 40% Baseline • 30
Slide 11: Capital & Liquidity
Capital & Liquidity FIRM-WIDE ASSETS & CAPITAL RATIOS HIGHLIGHTS $40,000 $37,612 ■ Balance Sheet Growth of $1.1 billion in 3Q22 $38,000 $36,476 30.0% $36,000 $34,050 $35,088 ■ Capital Ratios Remained Strong $34,000 $32,000 $30,820 25.0% ■ Total Bank Funding Increased by more than $900 millions $30,0
Slide 12: Expenses
Expenses NON-GAAP EXPENSES & PRE-TAX INCOME Non-GAAP EXPENSE RATIOS 65% 25% Non-compensation Ratio millions 3Q22 3Q21 Y/Y Change 63% 20% Compensation Ratio Compensation $606 $667 -9% 61% 15% Non-compensation Expense, 59% $209 $193 8% 59.5% 10% Ex. IB Gross Up & Credit Loss Provision 57% 58.1% 57.5%
Slide 13: 2022 Updated Guidance
2022 Updated Guidance Actual 2Q22 Revision Updated Guidance (millions) 2021 2022 2022 Net Revenue $4,737 $4,500 - $5,200 Approx. $4,500 Net Interest Income $503 $800 - $900 $885 - $895 Compensation Ratio 59.0% 56% - 58% Approx. 58% 1 Operating Non-Compensation Ratio 16.1% 16% - 18% 18% - 19% (1) Ope
Slide 14: Concluding Remarks
Concluding Remarks Quarterly Earnings Report
Slide 15: Third Quarter 2022 Financial Results Presentation
Third Quarter 2022 Financial Results Presentation October 26, 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