Stifel Financial Corporation · NYSE:SF
Stifel Financial — Q3 2020 Earnings Presentation
15 slides from Stifel Financial's earnings presentation, Oct 28, 2020
Slide 1: 3rd Quarter 2020 Financial Results Presentation
3rd Quarter 2020 Financial Results Presentation October 27, 2020 Quarterly Earnings Report
Slide 2: Third Quarter Snapshot
Third Quarter Snapshot 3Q20 RESULTS millions, except per share and ratios NET REVENUES NET EARNINGS EPS GAAP & NON-GAAP $883.3 GAAP $110.6 NON-GAAP $120.5 GAAP $1.46 NON-GAAP $1.59 ANNUALIZED ROE ANNUALIZED ROTCE BOOK VALUE PER SHARE GAAP 12.8% NON-GAAP 14.0% GAAP 20.4% NON-GAAP 22.2% TBV $32.34 BV
Slide 3: Third Quarter Results
Third Quarter Results FINANCIAL RESULTS THIRD QUARTER HIGHLIGHTS Sequential millions 3Q20 Y/Y Change YTD VS 2019 ■ Third quarter Non-GAAP Net Revenue of $883 million, up 8% Y/Y Change Global Wealth Management $527 -1% 4% $1,616 2% ■ Institutional Group Revenue of $363 million, up 25% Y/Y ■ Record Ca
Slide 4: Global Wealth Management
Global Wealth Management GLOBAL WEALTH MANAGEMENT REVENUE HIGHLIGHTS Sequential millions 3Q20 Y/Y Change Change YTD VS 2019 ■ Record first 9-Month Net Revenue of $1.6 billion, up 2% Y/Y Brokerage $163 2% 2% $502 6% ■ Third Quarter Pre-tax Margin of 34%, up 310 bps sequentially Asset Management & Ser
Slide 5: Wealth Management Metrics
Wealth Management Metrics RECRUITING DRIVES REVENUE GROWTH DYNAMIC BUSINESS $250 275 ■ 85% of FAs who joined Stifel in past 10 years came through 250 organic recruiting, 15% through acquisitions $200 225 Financial Advisors 200 ■ Recruiting remotely during pandemic 175 $150 millions 150 ■ Growth of a
Slide 6: Institutional Group
Institutional Group INSTITUTIONAL GROUP REVENUE HIGHLIGHTS Sequential millions 3Q20 Y/Y Change YTD VS 2019 Change ■ Record first 9-Month Revenue of $1.1 billion, up 33% Y/Y Advisory $81 -23% -17% $255 -13% ■ Record first 9-Month Capital Raising Revenue, up 52% Y/Y Capital Raising $129 54% 16% $333 5
Slide 7: Institutional Equities & Fixed Income
Institutional Equities & Fixed Income INSTITUTIONAL EQUITIES REVENUE INSTITUTIONAL FIXED INCOME REVENUE Sequential Sequential millions 3Q20 Y/Y Change YTD VS 2019 millions 3Q20 Y/Y Change YTD VS 2019 Change Change Brokerage $54 32% -14% $187 56% Brokerage $97 60% -20% $317 70% Capital Raising $78 48
Slide 8: Investment Banking Revenue
Investment Banking Revenue INVESTMENT BANKING REVENUE HIGHLIGHTS Sequential millions 3Q20 Y/Y Change YTD VS 2019 ■ Third Strongest Investment Banking Quarter Change Capital Raising: ■ Record Capital Raising Quarter ■ Strongest Verticals were Healthcare, Technology, & Industrials Equity $85 41% 21% $
Slide 9: Net Interest Income
Net Interest Income CONDENSED NET INTEREST INCOME NET INTEREST COMMENTARY 3Q20 Y/Y Change Sequential Change ■ 3Q20 NII within previous guidance range, but negatively impacted by Average Average Average Average Average Average increased cash balances. Balance Interest Balance Interest Balance Interes
Slide 10: Stifel Bancorp Inc. Loan & Investment Portfolio
Stifel Bancorp Inc. Loan & Investment Portfolio LOAN PORTFOLIO COMMERCIAL PORTFOLIO BY SECTOR % of Total millions 3Q20 Portfolio Residential Real Estate $3,805 30% Financials $852 7% Securities Based Lending 1,842 14% Industrials 665 5% Home Equity lines of Credit & Other $107 1% Consumer Discretion
Slide 11: CECL & Credit Metrics
CECL & Credit Metrics ASSUMPTIONS CECL 3Q20 FACTORS Portfolio Economic • Moody’s Forecast Economic Changes Factors • 40% Baseline (gradual recovery) Factors $5.1 ($6.4) - New loans, • 30% Downside (double dip recession) Portfolio $13.2 less - Changes to Changes macro- • 30% Upside (accelerated recov
Slide 12: Capital & Liquidity
Capital & Liquidity FIRM-WIDE ASSETS & CAPITAL RATIOS HIGHLIGHTS $25,896 $26,000 $25,624 $25,549 25.0% ■ Sweep Balances Continued to Increase in 3Q20 23.0% ■ Capital Ratios Consistent with 2Q20 $25,000 $24,610 21.0% $24,161 ■ Projecting No Material Change in the Size or Composition of the Balance 19
Slide 13: Expenses & Fourth Quarter Guidance
Expenses & Fourth Quarter Guidance NON-GAAP EXPENSES & PRE-TAX INCOME EXPENSE RATIOS Sequential millions 3Q20 Y/Y Change YTD VS 2019 63% 25% Change Non-compensation Ratio 62% 20% Compensation Ratio Compensation $527 10% -2% $1,635 17% 61% 62.5% Ex. IB Gross Up & Loan Loss Provision $173 3% 4% $527 7
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