Stifel Financial Corporation · NYSE:SF
Stifel Financial — Q2 2024 Earnings Presentation
15 slides from Stifel Financial's earnings presentation, Jul 24, 2024
Slide 1: Second Quarter 2024 Financial Results Presentation
Second Quarter 2024 Financial Results Presentation July 24, 2024 Quarterly Earnings Report
Slide 2: Second Quarter Snapshot
Second Quarter Snapshot 2Q24 RESULTS millions, except per share and ratios NET REVENUE NET EARNINGS EPS 2Q24: GAAP & NON-GAAP $1,218 2Q24: GAAP $165 & NON-GAAP $186 2Q24: GAAP $1.41 & NON-GAAP $1.60 YTD: GAAP & NON-GAAP $2,381 YTD: GAAP $329 & NON-GAAP $359 YTD: GAAP $2.82 & NON-GAAP $3.09 ANNUALIZE
Slide 3: Variance to Consensus Estimates
Variance to Consensus Estimates Second Quarter Results Variance to Consensus Estimates Commentary on Variance to Analyst Estimates (in Millions, except diluted EPS and share data) Revenues 2Q24 Operating* 2Q24 Mean Analyst %Δ 2Q24 vs. 2Q23 Results ■ Commissions & Principal Transactions: Commissions
Slide 4: Highly Complementary Business Lines
Highly Complementary Business Lines Significant Operating Leverage Improving Institutional Margins Drive Significant Upside to $350 Bottom Line as NII Stabilizes $300 $250 millions $200 $150 $100 $50 $0 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q
Slide 5: Recognition For Wealth Management Platform
Recognition For Wealth Management Platform Quarterly Earnings Report 4
Slide 6: Second Quarter Results
Second Quarter Results FINANCIAL RESULTS Sequential NET REVENUE millions 2Q24 Y/Y Change 2024 YTD VS 2023 YTD Change $1,400 Global Wealth Management $801 6% 1% $1,592 5% $1,218 $1,146 $1,163 $1,200 Institutional 391 41% 11% 742 22% $1,051 $1,045 Other 26 74% 23% 47 48% $1,000 Net revenue 1,218 16% 5
Slide 7: Global Wealth Management
Global Wealth Management GLOBAL WEALTH MANAGEMENT REVENUE HIGHLIGHTS Sequential millions 2Q24 Y/Y Change 2024 YTD VS 2023 YTD Change ■ Record Quarterly Net Revenue Transactional $177 12% -2% $359 12% Asset Management 381 19% 4% 748 18% ■ Record Quarterly Asset Management Revenue Net Interest 236 -15
Slide 8: Wealth Management: A Key Growth Driver
Wealth Management: A Key Growth Driver STRATEGIC LONG-TERM OBJECTIVES CONSISTENT GROWTH ■ Achieve $1 Trillion in Client Assets $3,500 $3,000 ■ Recruiting & Acquisitions Net Revenue (millions) $2,500 ■ Technology $2,000 ■ Continue to Build Stifel Bank $1,500 $1,000 ■ Expand Client Deposits $500 ■ Sma
Slide 9: Institutional Group
Institutional Group INSTITUTIONAL GROUP REVENUE Sequential HIGHLIGHTS millions 2Q24 Y/Y Change 2024 YTD VS 2023 YTD Change Advisory $131 50% 10% $251 5% ■ Named US Mid-Market Equity House for 2023 by Capital Raising $96 28% 6% $187 42% International Financing Review Equity $48 59% 19% $88 61% Fixed
Slide 10: Strong Bank Fundamentals
Strong Bank Fundamentals SLOWING CASH SORTING STRONG NIM DESPITE RISING DEPOSIT COSTS 7.00% $1,747 $1,097 6.00% $1,080 millions $726 $859 $599 $614 $505 $651 $258 5.00% ($35) 4.00% 3.53% 3.43% ($623) 3.24% 2.99% 3.04% ($742) ($1,230) 3.00% ($2,022) 2.00% 1.00% 2Q23 3Q23 4Q23 1Q24 2Q24 0.00% Sweep Sm
Slide 11: Expenses and Non-compensation Ratio
Expenses NON-GAAP EXPENSES & PRE-TAX INCOME Non-GAAP EXPENSE RATIOS 65% 35% Non-compensation Ratio millions 2Q24 2Q23 Y/Y Change 30% 63% Compensation Ratio 25% Compensation $707 $609 16% 61% 20% Non-compensation Expense, 59% $248 $230 8% 15% Ex. IB Gross Up & Credit Loss 57% 58.0% 58.0% 58.0% 58.0%
Slide 12: Capital Utilization
Capital Utilization FIRM-WIDE ASSETS & CAPITAL RATIOS HIGHLIGHTS $40,000 $38,000 $37,298 $37,878 $37,727 $38,258 $37,809 22.0% ■ Retired $500 million of 4.25% Senior 20.0% $36,000 Notes $34,000 18.0% $32,000 17.3% 17.8% 16.0% ■ Repurchased 229,000 shares millions 17.3% 16.9% 17.2% $30,000 $28,000 14
Slide 13: 2024 Performance & Outlook for Second Half
2024 Performance & Outlook for Second Half Updated Outlook for 2H24 vs. millions 1H24 Annualized 2024* Consensus 2024 2024 Guidance 1H24 Operating Net Revenue $1,878 $3,756 $3,799 $3,550 - $3,800 Transactional $661 $1,323 $1,315 Asset Management $748 $1,496 $1,533 Investment Banking $447 $894 $935 N
Slide 14: Second Quarter 2024 Financial Results Presentation
Second Quarter 2024 Financial Results Presentation July 24, 2024 Quarterly Earnings Report
Slide 15: 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