Stifel Financial Corporation · NYSE:SF
Stifel Financial — Q4 2022 Earnings Presentation
20 slides from Stifel Financial's earnings presentation, Jan 25, 2023
Slide 1: Fourth Quarter & Full Year 2022 Financial Results Presentation
Fourth Quarter & Full Year 2022 Financial Results Presentation January 25, 2023 Quarterly Earnings Report
Slide 2: 2022 Snapshot
2022 Snapshot 2022 RESULTS millions, except per share and ratios NET REVENUE PRE-TAX MARGIN NET EARNINGS GAAP & NON-GAAP $4,391 GAAP 20.2% NON-GAAP 21.7% GAAP $625 NON-GAAP $675 EPS ROCE ROTCE* GAAP $5.32 NON-GAAP $5.74 GAAP 13.9% NON-GAAP 15.0% GAAP 20.2% NON-GAAP 21.8% * Please see our definition
Slide 3: Impressive Track Record of Growth
Impressive Track Record of Growth 7 yr. 2 yr. Growth Growth (millions) 2015 2020 2022 Rate Rate Total Net Revenue3 $2,335 $3,752 $4,391 88% 17% Global Wealth Management $1,377 $2,191 $2,826 105% 29% Net Interest Income $133 $458 $898 575% 96% Institutional Group $976 $1,583 $1,536 57% -3% Advisory $
Slide 4: Long-term Strategic Objectives
Long-term Strategic Objectives Global Wealth Management ■ Achieve $1 Trillion in Client Assets Solidify our Position ■ Recruiting & Acquisitions Technology as Premier Wealth ■ ■ Continue to Build Stifel Bank Management Firm & ■ Expand Client Deposits Smart Rate Investment Bank ■ ■ Corporate Deposits
Slide 5: Capital Utilization
Capital Utilization FIRM-WIDE ASSETS & CAPITAL RATIOS HIGHLIGHTS $40,000 $37,612 $37,196 24.0% ■ Balance Sheet Flat in 4Q22 $38,000 $36,476 22.0% $36,000 $34,050 $35,088 ■ Total Loans Declined by 1% sequentially $34,000 20.0% $32,000 18.0% ■ Capital Ratios Remained Strong millions 18.7% 18.6% $30,00
Slide 6: Valuation & Performance Comparison
Valuation & Performance Comparison SF RJF MS Price1 $62.97 $117.00 $95.51 Price/Tangible Book Value2 2.1X 3.3X 2.4X Price / Trailing Earnings Per Share3 9.8X 15.6X 13.9X Price / Forward Earnings Per Share4 8.9X 11.4X 13.1X Earnings Growth5 142% 100% 125% Tangible Book Value Growth6 79% 51% 19% Retur
Slide 7: 2023 Consensus & Outlook
2023 Consensus & Outlook % Change From millions 2022 Consensus 2023 2022 2023 Guidance Operating Net Revenue $3,494 $3,561 2% $3,400 - $3,700 Transactional $1,240 $1,216 -2% Investment Banking $971 $1,052 8% Asset Management $1,263 $1,263 0% Other $20 $30 50% Net Interest Income $898 $1,254 40% $1,2
Slide 8: Fourth Quarter Snapshot
Fourth Quarter Snapshot 4Q22 RESULTS millions, except per share and ratios NET REVENUE NET EARNINGS EPS GAAP & NON-GAAP $1,122 GAAP $167 NON-GAAP $185 GAAP $1.43 NON-GAAP $1.58 ANNUALIZED ROCE ANNUALIZED ROTCE* BOOK VALUE PER SHARE GAAP 14.5% NON-GAAP 16.0% GAAP 20.7% NON-GAAP 22.9% TBV $30.83 BV $4
Slide 9: Fourth Quarter Results
Fourth Quarter Results FINANCIAL RESULTS Sequential NET REVENUE millions 4Q22 Y/Y Change 2022 VS 2021 Change $1,400 $1,304 Global Wealth Management $744 10% 6% $2,826 9% $1,200 $1,117 $1,108 $1,122 Institutional 354 -44% 4% 1,536 -29% $1,045 Other 23 n/m n/m 30 n/m $1,000 Net revenue 1,122 -14% 7% 4
Slide 10: Global Wealth Management
Global Wealth Management GLOBAL WEALTH MANAGEMENT REVENUE HIGHLIGHTS Sequential millions 4Q22 Y/Y Change Change 2022 VS 2021 ■ Record Quarterly & Full Year Net Revenue Transactional $166 -15% 6% $669 -14% ■ Record Quarterly & Full Year Net Interest Income Asset Management 289 -9% -4% 1,263 5% ■ Reco
Slide 11: Wealth Management Metrics
Wealth Management Metrics RECRUITING DRIVES REVENUE GROWTH INCREASING PERCENTAGE OF RECURRING REVENUE $400 600 100% 550 90% $350 24% 500 34% 32% 32% 80% 39% 33% $300 450 46% Financial Advisors 70% 51% 400 $250 millions 350 60% $200 300 50% 250 $150 40% 200 76% 30% 60% 66% 66% 64% 66% $100 150 47% 53
Slide 12: Institutional Group
Institutional Group INSTITUTIONAL GROUP REVENUE HIGHLIGHTS Sequential millions 4Q22 Y/Y Change 2022 VS 2021 Change Advisory $167 -46% 0% $715 -17% ■ Third Highest Full Year Institutional Revenue Capital Raising $52 -67% 3% $237 -64% ■ Second Highest Full Year Advisory Revenue Transactional $129 -20%
Slide 13: Institutional Equities & Fixed Income
Institutional Equities & Fixed Income INSTITUTIONAL EQUITIES REVENUE INSTITUTIONAL FIXED INCOME REVENUE Sequential Sequential millions 4Q22 Y/Y Change 2022 VS 2021 millions 4Q22 Y/Y Change 2022 VS 2021 Change Change Transactional $52 -21% 13% $201 -21% Transactional $77 -19% 4% $370 3% Capital Raisi
Slide 14: Net Interest Income
Net Interest Income CONDENSED NET INTEREST INCOME NET INTEREST COMMENTARY 4Q22 Y/Y Change Sequential Change ■ 4Q22 Net Interest Income Increased 119% Y/Y. Average Average Average Average Average Average Balance Interest Balance Interest Balance Interest ■ Average Interest Earning Assets Increased $6
Slide 15: Stifel Bancorp Inc. Loan & Investment Portfolio
Stifel Bancorp Inc. Loan & Investment Portfolio LOAN PORTFOLIO COMMERCIAL PORTFOLIO BY MAJOR SECTOR % of Total millions 4Q22 Portfolio Residential Real Estate $7,372 28% Fund (PE/VC Capital Call Lines) $4,175 16% Securities Based Lending 2,725 10% Industrials 1,124 4% Home Equity lines of Credit & O
Slide 16: CECL & Credit Metrics
CECL & Credit Metrics Economic Economic Economic Economic Economic Factors & Factors & Factors & Factors & Factors & ASSUMPTIONS Portfolio Changes, net of Portfolio Changes, net of Portfolio Changes, net of Portfolio Changes, net of Portfolio Changes, net of charge offs charge offs charge offs charg
Slide 17: Expenses and Non-compensation Ratio
Expenses NON-GAAP EXPENSES & PRE-TAX INCOME Non-GAAP EXPENSE RATIOS 65% 25% Non-compensation Ratio millions 4Q22 4Q21 Y/Y Change 63% 20% Compensation Ratio 61% Compensation $633 $750 -16% 59% 15% Non-compensation Expense, 59.5% $219 $203 8% 57% 58.0% 10% Ex. IB Gross Up & Credit Loss 58.1% 55% 57.5%
Slide 18: Concluding Remarks
Concluding Remarks Quarterly Earnings Report
Slide 19: Fourth Quarter & Full Year 2022 Financial Results Presentation
Fourth Quarter & Full Year 2022 Financial Results Presentation January 25, 2023 Quarterly Earnings Report
Slide 20: 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