Stifel Financial Corporation · NYSE:SF
Stifel Financial — Q4 2021 Earnings Presentation
20 slides from Stifel Financial's earnings presentation, Jan 26, 2021
Slide 1: Fourth Quarter & Full Year 2021 Financial Results Presentation
Fourth Quarter & Full Year 2021 Financial Results Presentation January 26, 2022 Quarterly Earnings Report
Slide 2: 2021 Snapshot
2021 Snapshot 2021 RESULTS millions, except per share and ratios NET REVENUE PRE-TAX MARGIN NET EARNINGS GAAP & NON-GAAP $4,737 GAAP 22.5% NON-GAAP 23.9% GAAP $789 NON-GAAP $840 EPS ROCE ROTCE* GAAP $6.66 NON-GAAP $7.08 GAAP 19.7% NON-GAAP 21.0% GAAP 29.1% NON-GAAP 30.9% * Please see our definition
Slide 3: Impressive Track Record of Growth
Impressive Track Record of Growth 6 yr. avg. Annual (millions) 2015(1) 2016(1) 2017 2018 2019 2020 2021 Growth 3 Total net revenue $2,335 $2,580 $2,928 $3,025 $3,337 $3,752 $4,737 13% growth 10% 13% 3% 10% 12% 26% Global Wealth Management $1,377 $1,563 $1,822 $1,990 $2,131 $2,191 $2,599 11% growth 1
Slide 4: Fourth Quarter Snapshot
Fourth Quarter Snapshot 4Q21 RESULTS millions, except per share and ratios NET REVENUE NET EARNINGS EPS GAAP & NON-GAAP $1,304 GAAP $252 NON-GAAP $265 GAAP $2.12 NON-GAAP $2.23 ANNUALIZED ROCE ANNUALIZED ROTCE* BOOK VALUE PER SHARE GAAP 23.7% NON-GAAP 25.0% GAAP 34.7% NON-GAAP 36.6% TBV $28.26 BV $4
Slide 5: Fourth Quarter Results
Fourth Quarter Results FINANCIAL RESULTS FOURTH QUARTER HIGHLIGHTS Sequential millions 4Q21 Y/Y Change 2021 VS 2020 Record Quarterly: Change ■ Global Wealth Management $674 17% 3% $2,599 19% ■ Net Revenue of $1.3 billion, up 23% Y/Y: Institutional 633 29% 29% 2,152 36% ■ Global Wealth Management Rev
Slide 6: Global Wealth Management
Global Wealth Management GLOBAL WEALTH MANAGEMENT REVENUE HIGHLIGHTS Sequential millions 4Q21 Y/Y Change 2021 VS 2020 ■ Record Full Year Net Revenue of $2.6 billion, up 19% Y/Y Change Transactional $195 5% 6% $775 13% ■ Record Quarterly Revenue of $674 million, up 17% Y/Y Asset Management 319 28% 2%
Slide 7: Wealth Management Metrics
Wealth Management Metrics RECRUITING DRIVES REVENUE GROWTH DECREASING PERCENTAGE OF TRANSACTIONAL $350 425 REVENUE 400 $300 375 100% 350 325 80% Financial Advisors $250 300 275 47% 53% 60% 66% 66% 64% 66% 250 60% millions $200 225 200 $296 $150 40% $280 175 $245 $233 150 51% $100 125 20% 46% 39% 34%
Slide 8: Institutional Group
Institutional Group INSTITUTIONAL GROUP REVENUE HIGHLIGHTS Sequential millions 4Q21 Y/Y Change 2021 VS 2020 Change ■ Record Results: Advisory $311 79% 49% $856 100% ■ Quarterly Net Revenue of $633 million, up 29% Y/Y Capital Raising $155 1% 2% $661 35% ■ Full Year Net Revenue of $2.152 billion, up 3
Slide 9: Institutional Equities & Fixed Income
Institutional Equities & Fixed Income INSTITUTIONAL EQUITIES REVENUE INSTITUTIONAL FIXED INCOME REVENUE Sequential Sequential millions 4Q21 Y/Y Change 2021 VS 2020 millions 4Q21 Y/Y Change 2021 VS 2020 Change Change Transactional $66 -5% 36% $255 -1% Transactional $95 8% 25% $361 -11% Capital Raisin
Slide 10: Investment Banking Revenue
Investment Banking Revenue INVESTMENT BANKING REVENUE HIGHLIGHTS Sequential millions 4Q21 Y/Y Change 2021 VS 2020 Change ■ Record Results: Capital Raising:* ■ Full Year Investment Banking Revenue Surpassed Prior Record by 64% (2020) Equity $100 -10% -4% $476 42% ■ Quarterly Investment Banking Revenu
Slide 11: Net Interest Income
Net Interest Income CONDENSED NET INTEREST INCOME NET INTEREST COMMENTARY 4Q21 Y/Y Change Sequential Change ■ 4Q21 Net Interest Income Increased 31% Y/Y. Average Average Average Average Average Average Balance Interest Balance Interest Balance Interest ■ Average Interest Earning Assets Increased by
Slide 12: Stifel Bancorp Inc. Loan & Investment Portfolio
Stifel Bancorp Inc. Loan & Investment Portfolio LOAN PORTFOLIO COMMERCIAL PORTFOLIO BY MAJOR SECTOR % of Total millions 4Q21 Portfolio Residential Real Estate $5,482 28% Fund (PE/VC Capital Call Lines) $3,133 16% Securities Based Lending 2,880 15% Industrials 811 4% Home Equity lines of Credit & Oth
Slide 13: CECL & Credit Metrics
CECL & Credit Metrics Economic Economic Economic Economic ASSUMPTIONS Factors & Factors & Factors & Factors & Portfolio Portfolio Portfolio Portfolio Changes Changes Changes Changes • Moody’s Forecast • 40% Baseline (gradual recovery) ($5.3) • 30% Downside (double dip recession) • 30% Upside (accele
Slide 14: Capital Deployment
Capital Deployment FIRM-WIDE ASSETS & CAPITAL RATIOS HIGHLIGHTS $34,050 ■ Raising Quarterly Dividend by 100% $34,000 ■ Balance Sheet Growth of More than $7 billion in 2021 30.0% $32,000 $30,820 $29,745 ■ Client Cash Balances Increased $3 billion in 4Q21 $30,000 $28,142 25.0% ■ Substantial Excess Cap
Slide 15: Expenses
Expenses Non-GAAP EXPENSE RATIOS NON-GAAP EXPENSES & PRE-TAX INCOME 62.0% 25.0% Non-Compensation Ratio Sequential 61.0% Compensation Ratio millions 4Q21 Y/Y Change 20.0% Change 61.2% 60.0% 15.0% Compensation $750 22% 13% 59.0% 59.9% 59.0% 10.0% Non-compensation Expense, 58.0% $203 13% 5% 58.3% Ex. I
Slide 16: Strategic Review & Outlook
Strategic Review & Outlook Quarterly Earnings Report
Slide 17: 2021 Results Surpassed Guidance
2021 Results Surpassed Guidance Actual Original Guidance Updated Guidance Actual (millions) 2020 2021 2021 2021 Net Revenue $3,752 $3,800 - $4,000 $4,500 - $4,700 $4,737 Net Interest Income $458 $450 - $500 $465 - $485 $503 Compensation Ratio 59.9% 58.5% - 60.5% 58% - 60% 59.0% 1 Operating Non-Compe
Slide 18: 2022 Guidance & Growth Drivers
2022 Guidance & Growth Drivers Actual Consensus Guidance (millions) 2021 2022 2022 Net Revenue $4,737 $4,886 $4,900 - $5,200 Net Interest Income $503 $611 $650 - $750 Compensation Ratio 59.0% 58.8% 57% - 59% Operating Non-Compensation Ratio1 16.1% 17.5% 16% - 17% Tax Rate 22.7% 24.9% 24% - 26% (1) O
Slide 19: Fourth Quarter & Full Year 2021 Financial Results Presentation
Fourth Quarter & Full Year 2021 Financial Results Presentation January 26, 2022 Quarterly Earnings Report
Slide 20: 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