Stifel Financial Corporation · NYSE:SF
Stifel Financial — Q1 2021 Earnings Presentation
15 slides from Stifel Financial's earnings presentation, Apr 27, 2021
Slide 1: First Quarter 2021 Financial Results Presentation
1 Quarter 2021 st Financial Results Presentation April 27, 2021 Quarterly Earnings Report
Slide 2: First Quarter Snapshot
First Quarter Snapshot 1Q21 RESULTS millions, except per share and ratios NET REVENUE NET EARNINGS EPS GAAP & NON-GAAP $1,135 GAAP $165 NON-GAAP $176 GAAP $1.40 NON-GAAP $1.50 ANNUALIZED ROE ANNUALIZED ROTCE BOOK VALUE PER SHARE GAAP 17.6% NON-GAAP 18.8% GAAP 26.5% NON-GAAP 28.4% TBV $23.93 BV $35.9
Slide 3: First Quarter Results
First Quarter Results FINANCIAL RESULTS FIRST QUARTER HIGHLIGHTS Sequential millions 1Q21 Y/Y Change ■ Record Quarterly: Change Global Wealth Management $631 8% 10% ■ Non-GAAP Net Revenue of $1.1 billion, up 24% Y/Y Institutional 506 52% 3% ■ Global Wealth Management Revenue of $631 million, up 8% Y
Slide 4: Global Wealth Management
Global Wealth Management GLOBAL WEALTH MANAGEMENT REVENUE HIGHLIGHTS Sequential millions 1Q21 Y/Y Change Change ■ Record Quarterly Net Revenue of $631 million, up 8% Y/Y Brokerage $201 12% 8% ■ Record Quarterly Wealth Management Revenue, ex. Stifel Bancorp Inc., of $495 million Asset Management & Se
Slide 5: Wealth Management Metrics
Wealth Management Metrics RECRUITING DRIVES REVENUE GROWTH DYNAMIC BUSINESS $250 325 300 ■ Announced renewed focus on recruiting independent FAs & 275 rebranded business to Stifel Independent Advisors $200 250 Financial Advisors 225 ■ 85% of FAs joined Stifel in past 10 years came through organic $1
Slide 6: Institutional Group
Institutional Group INSTITUTIONAL GROUP REVENUE HIGHLIGHTS Sequential millions 1Q21 Y/Y Change Change ■ Record Results: Advisory $130 72% -25% ■ Net Revenue of $506 million Capital Raising $195 110% 26% ■ Capital Raising Revenue of $195 million Brokerage $178 5% 13% ■ Institutional Equity Brokerage
Slide 7: Institutional Equities & Fixed Income
Institutional Equities & Fixed Income INSTITUTIONAL EQUITIES REVENUE INSTITUTIONAL FIXED INCOME REVENUE Sequential Sequential millions 1Q21 Y/Y Change millions 1Q21 Y/Y Change Change Change Brokerage $79 13% 14% Brokerage $98 -1% 12% Capital Raising $147 145% 42% Capital Raising $48 46% -6% Total Eq
Slide 8: Investment Banking Revenue
Investment Banking Revenue INVESTMENT BANKING REVENUE HIGHLIGHTS Sequential millions 1Q21 Y/Y Change ■ Record First Quarter Investment Banking Revenue Change ■ Record Quarterly Capital Raising Revenue, up 102% Y/Y Capital Raising: ■ Record 1st Quarter Advisory Revenue, up 72% Y/Y Equity $160 131% 44
Slide 9: Net Interest Income
Net Interest Income CONDENSED NET INTEREST INCOME NET INTEREST COMMENTARY 1Q21 Y/Y Change Sequential Change ■ 1Q21 Net Interest Income Increased 7% sequentially. Average Average Average Average Average Average Balance Interest Balance Interest Balance Interest ■ Interest Earning Assets Increased by
Slide 10: Stifel Bancorp Inc. Loan & Investment Portfolio
Stifel Bancorp Inc. Loan & Investment Portfolio LOAN PORTFOLIO COMMERCIAL PORTFOLIO BY MAJOR SECTOR % of Total millions 1Q21 Portfolio Residential Real Estate $4,158 28% Fund (PE/VC Capital Call Lines) $836 5% Securities Based Lending 2,090 14% PPP 778 5% Home Equity lines of Credit & Other $109 1%
Slide 11: CECL & Credit Metrics
CECL & Credit Metrics ASSUMPTIONS Economic Factors& Economic Factors & Economic Factors & Economic Factors & Portfolio Portfolio Portfolio Portfolio Changes Changes Changes Changes • Moody’s Forecast ($1.3) $0.0 • 40% Baseline (gradual recovery) ($5.3) • 30% Downside (double dip recession) $19.1 • 3
Slide 12: Capital & Liquidity
Capital & Liquidity FIRM-WIDE ASSETS & CAPITAL RATIOS HIGHLIGHTS $29,000 28.0% ■ Client Cash Balances Continued to Increase in 1Q20 $28,142 $28,000 26.0% ■ Capital Ratios Increased Remained Strong $27,000 $26,604 24.0% $25,896 ■ Balance Sheet Growth in 1st Quarter of $1.5 billion $25,624 $25,549 22.
Slide 13: Expenses
Expenses NON-GAAP EXPENSES & PRE-TAX INCOME EXPENSE RATIOS Sequential 63% 25% millions 1Q21 Y/Y Change Change Non-compensation Ratio 62% Compensation Ratio 20% Compensation $692 21% 13% 61% 62.5% Ex. IB Gross Up & Credit Loss 60% 60.9% 15% $184 -2% 3% 60.0% Provision 59% 59.6% 58% 10% Credit Loss Pr
Slide 14: Q&A
Q&A 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