Slide 1: Second Quarter 2023 Financial Results Presentation
Second Quarter 2023 Financial Results Presentation July 26, 2023 Quarterly Earnings Report
Slide 2: Second Quarter Snapshot
Second Quarter Snapshot 2Q23 RESULTS millions, except per share and ratios NET REVENUE NET EARNINGS EPS 2Q23: GAAP & NON-GAAP $1,051 2Q23: GAAP $125 & NON-GAAP $136 2Q23: GAAP $1.10 & NON-GAAP $1.20 YTD: GAAP & NON-GAAP $2,158 YTD: GAAP $273 & NON-GAAP $298 YTD: GAAP $2.38 & NON-GAAP $2.59 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) 2Q23 2Q23 Mean %∆ ■ Commissions & Principal Transactions: Revenues Non-GAAP ANALYST Commissions + Principal transactions
Slide 4: Recognition for Wealth Management Platform
Recognition for Wealth Management Platform Quarterly Earnings Report 3
Slide 5: Second Quarter Results
Second Quarter Results FINANCIAL RESULTS Sequential NET REVENUE millions 2Q23 Y/Y Change 2023 YTD VS 2022 YTD Change $1,400 Global Wealth Management $758 9% 0% $1,515 10% $1,200 $1,108 $1,122 $1,107 Institutional 276 -33% -17% 609 -28% $1,045 $1,051 Other 16 n/m -4% 33 n/m $1,000 Net revenue 1,051 -
Slide 6: Global Wealth Management
Global Wealth Management GLOBAL WEALTH MANAGEMENT REVENUE HIGHLIGHTS Sequential millions 2Q23 Y/Y Change Change 2023 YTD VS 2022 YTD ■ Ranked #1 by J.D. Power For Employee Advisor Transactional $158 -7% -2% $319 -8% Satisfaction Asset Management 320 -3% 1% 636 -6% ■ Record Quarterly & First Half Net
Slide 7: Strong Bank Fundamentals
Strong Bank Fundamentals NIM STABLE DESPITE RISING DEPOSIT SLOWING CASH SORTING $1,407 COSTS 6.00% $619 $586 $412M $376M 5.00% $292M $307 $202M $187 $129M $94M 3.64% 3.57% millions $42 4.00% 3.53% 3.00% ($288) 3.00% 2.53% ($673) 2.00% ($945) ($1,076) ($1,061) 1.00% ($1,619) 0.00% Jan '23 Feb '23 Mar
Slide 8: Institutional Group
Institutional Group INSTITUTIONAL GROUP REVENUE HIGHLIGHTS Sequential millions 2Q23 Y/Y Change 2023 YTD VS 2022 YTD Change Advisory $87 -57% -43% $238 -38% ■ Strongest Capital Raising Revenue Since Capital Raising $75 13% 32% $132 -2% 4Q21 Transactional $113 -20% -9% $237 -26% ■ Ranked #1 in Municip
Slide 9: Expenses
Expenses NON-GAAP EXPENSES & PRE-TAX INCOME Non-GAAP EXPENSE RATIOS 65% 25% Non-compensation Ratio millions 2Q23 2Q22 Y/Y Change 63% Compensation Ratio 20% 61% Compensation $609 $644 -5% 59% 15% Non-compensation Expense, $230 $208 11% 57% 58.1% 58.0% 58.0% 10% Ex. IB Gross Up & Credit Loss 58.0% 55%
Slide 10: Capital Utilization
Capital Utilization FIRM-WIDE ASSETS & CAPITAL RATIOS HIGHLIGHTS $40,000 22.0% $37,612 $37,196 $38,598 $37,298 ■ Total Assets Decreased $1.3 billion $38,000 $36,476 20.0% $36,000 ■ Bank Funding Increased at CAGR of 12% Since 2019 $34,000 18.0% $32,000 18.0% 17.6% 16.0% ■ Repurchased 1.5 million Shar
Slide 11: Outlook Illustrates Operating Leverage
Outlook Illustrates Operating Leverage Actuals Guidance millions 2022 1H23 2H23 2023 Operating Net Revenue $3,482 $1,565 $1,700 - $1,850 $3,260 - $3,425 Global Wealth Management $1,946 $956 $1,000 - $1,050 $1,950 - $2,010 Institutional $1,536 $609 $700 - $800 $1,310 - $1,415 Net Interest Income $898
Slide 12: Concluding Remarks
Concluding Remarks Quarterly Earnings Report
Slide 13: Second Quarter 2023 Financial Results Presentation
Second Quarter 2023 Financial Results Presentation July 26, 2023 Quarterly Earnings Report
Slide 14: 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