Stifel Financial Corporation · NYSE:SF
Stifel Financial — Q3 2021 Earnings Presentation
18 slides from Stifel Financial's earnings presentation, Oct 27, 2021
Slide 1: 3rd Quarter 2021 Financial Results Presentation
3rd Quarter 2021 Financial Results Presentation October 27, 2021 Quarterly Earnings Report
Slide 2: Third Quarter & YTD Snapshot
Third Quarter & YTD Snapshot 3Q21 & YTD RESULTS millions, except per share and ratios NET REVENUE NET EARNINGS EPS 3Q21: GAAP & NON-GAAP $1,145 3Q21: GAAP $183 NON-GAAP $196 3Q21 GAAP $1.54 NON-GAAP $1.65 YTD: GAAP & NON-GAAP $3,433 YTD: GAAP $537 NON-GAAP $574 YTD: GAAP $4.54 NON-GAAP $4.85 ANNUALI
Slide 3: Third Quarter Results
Third Quarter Results FINANCIAL RESULTS THIRD QUARTER HIGHLIGHTS Sequential millions 3Q21 Y/Y Change YTD VS 2020 Second Highest Quarterly Non-GAAP Net Revenue of $1.15 billion, up 30% Y/Y: Change ■ Global Wealth Management $656 24% 3% $1,925 19% ■ Record Global Wealth Management Revenue of $656 mill
Slide 4: Impressive Track Record of Growth
Impressive Track Record of Growth Annualized4 2015-2021 (millions) 2015(1) 2016(1) 2017 2018 2019 2020 2021 Change 3 Total net revenue $2,335 $2,580 $2,928 $3,025 $3,337 $3,752 $4,577 96% growth 10% 13% 3% 10% 12% 22% Global Wealth Management $1,377 $1,563 $1,822 $1,990 $2,131 $2,191 $2,567 86% grow
Slide 5: Vining Sparks Acquisition
Vining Sparks Acquisition Vining Sparks Highly Complementary Depository Focus ■ Founded in 1981 & Headquartered in Memphis, TN ■ More than 300 Fixed Income Professionals Focused on Banks & Thrifts on a Combined Basis ■ A Client-centered Financial Partner that Offers Strategic Balance Sheet & Investm
Slide 6: Global Wealth Management
Global Wealth Management GLOBAL WEALTH MANAGEMENT REVENUE HIGHLIGHTS Sequential millions 3Q21 Y/Y Change Change YTD VS 2020 ■ Record Quarterly Net Revenue of $656 million, up 24% Y/Y Brokerage $184 13% -6% $580 16% ■ Record Quarterly Wealth Management Revenue, ex. Stifel Bancorp Inc., of $505 millio
Slide 7: Wealth Management Metrics
Wealth Management Metrics RECRUITING DRIVES REVENUE GROWTH DYNAMIC BUSINESS $300 400 375 ■ Announced renewed focus on recruiting independent FAs & $250 350 rebranded business to Stifel Independent Advisors 325 300 Financial Advisors $200 275 ■ 85% of FAs who joined Stifel in past 10 years came throu
Slide 8: Institutional Group
Institutional Group INSTITUTIONAL GROUP REVENUE HIGHLIGHTS Sequential millions 3Q21 Y/Y Change YTD VS 2020 Change ■ Record Results: Advisory $208 158% 1% $545 114% ■ Quarterly Advisory Revenue of $208 million, up 158% Y/Y Capital Raising $153 18% -3% $506 52% ■ First Nine Months Net Revenue of $1.52
Slide 9: Institutional Equities & Fixed Income
Institutional Equities & Fixed Income INSTITUTIONAL EQUITIES REVENUE INSTITUTIONAL FIXED INCOME REVENUE Sequential Sequential millions 3Q21 Y/Y Change YTD VS 2020 millions 3Q21 Y/Y Change YTD VS 2020 Change Change Brokerage $48 -11% -21% $189 1% Brokerage $76 -22% -17% $266 -16% Capital Raising $94
Slide 10: Investment Banking Revenue
Investment Banking Revenue INVESTMENT BANKING REVENUE HIGHLIGHTS Sequential millions 3Q21 Y/Y Change YTD VS 2020 ■ Record Quarterly Advisory Revenue, up 158% Y/Y Change Capital Raising:* ■ Record First Nine Months Advisory Revenue, Surpassed Prior Record by 86% (2019) Equity $104 22% -8% $376 68% ■
Slide 11: Net Interest Income
Net Interest Income CONDENSED NET INTEREST INCOME NET INTEREST COMMENTARY 3Q21 Y/Y Change Sequential Change ■ 3Q21 Net Interest Income Increased 10% sequentially. Average Average Average Average Average Average Balance Interest Balance Interest Balance Interest ■ Average Interest Earning Assets Incr
Slide 12: Stifel Bancorp Inc. Loan & Investment Portfolio
Stifel Bancorp Inc. Loan & Investment Portfolio LOAN PORTFOLIO COMMERCIAL PORTFOLIO BY MAJOR SECTOR % of Total millions 3Q21 Portfolio Residential Real Estate $4,952 29% Fund (PE/VC Capital Call Lines) $1,179 7% Securities Based Lending 2,582 15% Industrials 640 4% Home Equity lines of Credit & Othe
Slide 13: CECL & Credit Metrics
CECL & Credit Metrics ASSUMPTIONS Economic Economic Economic Economic Factors & Factors & Factors & Factors & • Moody’s Forecast Portfolio Portfolio Portfolio Portfolio Changes Changes Changes Changes • 40% Baseline (gradual recovery) $0.0 • 30% Downside (double dip recession) ($5.3) • 30% Upside (a
Slide 14: Capital & Liquidity
Capital & Liquidity FIRM-WIDE ASSETS & CAPITAL RATIOS HIGHLIGHTS $32,000 30.0% ■ Balance Sheet Growth of More than $4 billion YTD 2021, $30,820 $29,745 ■ Increase of 16% YTD $30,000 $28,142 25.0% ■ Client Cash Balances Continued to Increase in 3Q21 $28,000 $26,604 ■ Capital Ratios Remained Strong mi
Slide 15: Non-GAAP Expenses and Reconciliation
Expenses NON-GAAP EXPENSES & PRE-TAX INCOME Non-GAAP EXPENSE RATIOS 65% 25% Sequential Non-compensation Ratio millions 3Q21 Y/Y Change Change 63% Compensation Ratio 20% Compensation $667 27% -3% 61% 15% 59% 60.9% Non-compensation Expense, 59.5% $194 12% 5% 10% Ex. IB Gross Up & Credit Loss 57% 59.6%
Slide 16: Closing Remarks
Closing Remarks Quarterly Earnings Report
Slide 17: Q&A
Q&A Quarterly Earnings Report
Slide 18: 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