Stifel Financial Corporation · NYSE:SF
Stifel Financial — Q4 2023 Earnings Presentation
15 slides from Stifel Financial's earnings presentation, Jan 24, 2024
Slide 1: Fourth Quarter Financial Results Presentation
Fourth Quarter 2024 Financial Results Presentation January 24, 2024 Quarterly Earnings Report
Slide 2: 2023 Snapshot
2023 Snapshot 2023 RESULTS millions, except per share and ratios NET REVENUE PRE-TAX MARGIN (1) NET EARNINGS GAAP & NON-GAAP $4,349 GAAP 16.2% NON-GAAP 19.2% GAAP $485 NON-GAAP $532 EPS ROCE(1) ROTCE(1)* GAAP $4.28 NON-GAAP $4.68 GAAP 10.5% NON-GAAP 12.9% GAAP 15.2% NON-GAAP 18.7% (1) Non-GAAP Pre-T
Slide 3: Impressive Track Record of Growth
Impressive Track Record of Growth 8 yr. 4 yr. Growth Growth (millions) 2015 2019 2023 Rate Rate Total Net Revenue3 $2,335 $3,337 $4,349 86% 30% Global Wealth Management $1,377 $2,131 $3,050 121% 43% Net Interest Income $133 $547 $1,145 761% 109% Institutional Group $976 $1,214 $1,226 26% 1% Advisory
Slide 4: Fourth Quarter Snapshot
Fourth Quarter Snapshot 4Q23 RESULTS millions, except per share and ratios NET REVENUE NET EARNINGS EPS 4Q23: GAAP & NON-GAAP $1,146 4Q23: GAAP $153 & NON-GAAP $167 4Q23: GAAP $1.38 & NON-GAAP $1.50 ANNUALIZED ROCE ANNUALIZED ROTCE* BOOK VALUE PER SHARE 4Q23:GAAP 13.4% & NON-GAAP 14.6% 4Q23:GAAP 19.
Slide 5: Variance to Consensus Estimates
Variance to Consensus Estimates Fourth Quarter Results Variance to Consensus Estimates Commentary on Variance to Analyst Estimates (in Millions, except diluted EPS and share data) 4Q23 4Q23 Mean %Δ ■ Commissions & Principal Transactions: Revenues Operating ANALYST Commissions + Principal transaction
Slide 6: Wealth Management: A Key Growth Driver
Wealth Management: A Key Growth Driver CONSISTENT GROWTH $3,500 $3,000 Net Revenue (millions) $2,500 $2,000 $1,500 $1,000 $500 $0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Brokerage Asset Management & Service Fees Net Interest Investment Bankin g & Other *2023 GWM Net Revenue based on annual
Slide 7: Fourth Quarter Results
Fourth Quarter Results FINANCIAL RESULTS Sequential NET REVENUE millions 4Q23 Y/Y Change 2023 VS 2022 Change $1,400 Global Wealth Management $766 3% 0% $3,050 8% $1,200 $1,122 $1,107 $1,146 Institutional 359 2% 40% 1,226 -20% $1,051 $1,045 Other 21 -10% 7% 73 146% $1,000 Net revenue 1,146 2% 10% 4,3
Slide 8: Global Wealth Management
Global Wealth Management GLOBAL WEALTH MANAGEMENT REVENUE HIGHLIGHTS Sequential millions 4Q23 Y/Y Change Change 2023 VS 2022 ■ Record Annual Net Revenue Transactional $169 2% 2% $654 -2% ■ Second Highest Quarterly Net Revenue Asset Management 330 14% -1% 1,299 3% Net Interest 258 -10% -4% 1,087 24%
Slide 9: Strong Bank Fundamentals
Strong Bank Fundamentals SLOWING CASH SORTING STRONG NIM DESPITE RISING DEPOSIT $3,969 COSTS 7.00% $2,068 $1,747 6.00% $1,080 $905 millions $726 $859 $599 $614 $288 5.00% ($35) 4.00% 3.64% 3.57% 3.53% 3.43% 3.24% ($1,230) 3.00% ($2,022) ($2,494) 2.00% ($3,640) 1.00% 4Q22 1Q23 2Q23 3Q23 4Q23 0.00% Sw
Slide 10: Institutional Group
Institutional Group INSTITUTIONAL GROUP REVENUE HIGHLIGHTS Sequential millions 4Q23 Y/Y Change 2023 VS 2022 Change Advisory $129 -23% 33% $466 -35% ■ Ranked #1 in Municipal Issuance in Number of Capital Raising $72 38% 57% $249 5% Issues in2023 with 14.7% Market Share Transactional $159 23% 39% $510
Slide 11: Expenses
Expenses NON-GAAP EXPENSES & PRE-TAX INCOME Non-GAAP EXPENSE RATIOS 65% 35% Non-compensation Ratio millions 4Q23 4Q22 Y/Y Change 63% 30% Compensation Ratio 61% 25% Compensation $665 $633 5% 59% 20% Non-compensation Expense, $249 $219 14% 57% 58.0% 58.0% 15% Ex. IB Gross Up & Credit Loss 58.0% 58.0%
Slide 12: Capital Utilization
Capital Utilization FIRM-WIDE ASSETS & CAPITAL RATIOS HIGHLIGHTS $40,000 $37,196 $38,598 $37,298 $37,878 $37,727 22.0% ■ Repurchased 2.3 million Shares $38,000 20.0% $36,000 ■ 11.8 million Shares in Total Authorization $34,000 18.0% $32,000 17.6% 16.0% ■ Total Assets Decreased $150 million millions
Slide 13: 2023 Consensus & Outlook
2023 Consensus & Outlook Actual Consensus % Change From Guidance millions 2023 2024 2023 2024 Operating Net Revenue $3,204 $3,607 13% $3,550 - $3,800 Transactional $1,164 $1,224 5% Investment Banking $731 $911 25% Asset Management $1,299 $1,450 12% Other $9 $21 144% Net Interest Income $1,145 $1,065
Slide 14: Fourth Quarter 2023 Financial Results Presentation
Fourth Quarter 2023 Financial Results Presentation January 24, 2023 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