Stifel Financial Corporation · NYSE:SF
Stifel Financial — Q2 2021 Earnings Presentation
17 slides from Stifel Financial's earnings presentation, Jul 28, 2021
Slide 1: 2nd Quarter 2021 Financial Results Presentation
2 Quarter 2021 nd Financial Results Presentation July 28, 2021 Quarterly Earnings Report
Slide 2: Second Quarter & YTD Snapshot
Second Quarter & YTD Snapshot 2Q21 & YTD RESULTS millions, except per share and ratios NET REVENUE NET EARNINGS EPS 2Q21: GAAP & NON-GAAP $1,153 2Q21: GAAP $190 NON-GAAP $202 2Q21 GAAP $1.60 NON-GAAP $1.70 YTD: GAAP & NON-GAAP $2,288 YTD: GAAP $355 NON-GAAP $378 YTD: GAAP $3.00 NON-GAAP $3.20 ANNUAL
Slide 3: Second Quarter Results
Second Quarter Results FINANCIAL RESULTS SECOND QUARTER HIGHLIGHTS Sequential millions 2Q21 Y/Y Change YTD VS 2020 ■ Record Quarterly: Change Global Wealth Management $638 26% 1% $1,269 17% ■ Non-GAAP Net Revenue of $1.15 billion, up 29% Y/Y Institutional 521 31% 3% 1,027 41% ■ Global Wealth Managem
Slide 4: Impressive Track Record of Growth
Impressive Track Record of Growth Annualized 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 $4,576 96% growth 10% 13% 3% 10% 12% 22% Global Wealth Management $1,377 $1,563 $1,822 $1,990 $2,131 $2,191 $2,538 84% growt
Slide 5: Increased 2021 Guidance After Record First Half Results
Increased 2021 Guidance After Record First Half Results Actual Original Guidance Consensus Updated Guidance (millions) 2020 2021 2021 2021 Net Revenue $3,752 $3,800 - $4,000 $4,290 $4,500 - $4,700 Net Interest Income $458 $450 - $500 $471 $465 - $485 Compensation Ratio 59.9% 58.5% - 60.5% 59.4% 58%
Slide 6: Global Wealth Management
Global Wealth Management GLOBAL WEALTH MANAGEMENT REVENUE HIGHLIGHTS Sequential millions 2Q21 Y/Y Change Change YTD VS 2020 ■ Record First Half Net Revenue of $1.3 billion, up 17% Y/Y Brokerage $195 23% -3% $396 17% ■ Record Quarterly Net Revenue of $638 million, up 26% Y/Y Asset Management & Servic
Slide 7: Wealth Management Metrics
Wealth Management Metrics RECRUITING DRIVES REVENUE GROWTH DYNAMIC BUSINESS $300 350 325 ■ Announced renewed focus on recruiting independent FAs & $250 300 rebranded business to Stifel Independent Advisors 275 Financial Advisors 250 ■ 85% of FAs who joined Stifel in past 10 years came through organi
Slide 8: Institutional Group
Institutional Group INSTITUTIONAL GROUP REVENUE HIGHLIGHTS Sequential millions 2Q21 Y/Y Change YTD VS 2020 Change ■ Record Results: Advisory $207 111% 58% $337 94% ■ Quarterly Net Revenue of $521 million, up 31% Y/Y Capital Raising $158 42% -19% $353 73% ■ Quarterly Advisory Revenue of $207 million,
Slide 9: Institutional Equities & Fixed Income
Institutional Equities & Fixed Income INSTITUTIONAL EQUITIES REVENUE INSTITUTIONAL FIXED INCOME REVENUE Sequential Sequential millions 2Q21 Y/Y Change YTD VS 2020 millions 2Q21 Y/Y Change YTD VS 2020 Change Change Brokerage $61 -3% -22% $141 5% Brokerage $92 -24% -7% $190 -14% Capital Raising $102 6
Slide 10: Investment Banking Revenue
Investment Banking Revenue INVESTMENT BANKING REVENUE HIGHLIGHTS Sequential millions 2Q21 Y/Y Change YTD VS 2020 ■ Record Quarterly Investment Banking Revenue Change Capital Raising: ■ Record Quarterly Advisory Revenue, up 111% Y/Y ■ Record 2nd Quarter Capital Raising Revenue, up 42% Y/Y Equity $112
Slide 11: Net Interest Income
Net Interest Income CONDENSED NET INTEREST INCOME NET INTEREST COMMENTARY 2Q21 Y/Y Change Sequential Change ■ 2Q21 Net Interest Income Increased 6% sequentially. Average Average Average Average Average Average Balance Interest Balance Interest Balance Interest ■ Average Interest Earning Assets Incre
Slide 12: Stifel Bancorp Inc. Loan & Investment Portfolio
Stifel Bancorp Inc. Loan & Investment Portfolio LOAN PORTFOLIO COMMERCIAL PORTFOLIO BY MAJOR SECTOR % of Total millions 2Q21 Portfolio Residential Real Estate $4,567 29% Fund (PE/VC Capital Call Lines) $1,161 7% Securities Based Lending 2,332 15% Industrials 646 4% Home Equity lines of Credit & Othe
Slide 13: CECL & Credit Metrics
CECL & Credit Metrics ASSUMPTIONS Economic Economic Economic Economic Factors & Factors & Factors & Factors & Portfolio Portfolio Portfolio Portfolio • Moody’s Forecast Changes Changes Changes Changes ($1.3) $0.0 • 40% Baseline (gradual recovery) • 30% Downside (double dip recession) ($5.3) ($9.7) •
Slide 14: Capital & Liquidity
Capital & Liquidity FIRM-WIDE ASSETS & CAPITAL RATIOS HIGHLIGHTS $29,745 $30,000 28.0% ■ Balance Sheet Growth of $3 billion in First Half of 2021, Increase of 12% $29,000 26.0% YTD. $28,142 $28,000 24.0% ■ Client Cash Balances Continued to Increase in 3Q21 $26,604 $27,000 22.0% $25,624 ■ Capital Rat
Slide 15: Expenses
Expenses NON-GAAP EXPENSES & PRE-TAX INCOME Non-GAAP EXPENSE RATIOS Sequential 65% 25% millions 2Q21 Y/Y Change Change Non-compensation Ratio 63% Compensation Ratio 20% Compensation $686 28% -1% 61% Ex. IB Gross Up & Credit Loss 15% $185 10% 1% 60.9% Provision 59% 59.6% 60.0% 59.5% 10% Credit Loss P
Slide 16: Q&A
Q&A Quarterly Earnings Report
Slide 17: 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