Stifel Financial Corporation · NYSE:SF
Stifel Financial — Q4 2021 Earnings Presentation
20 slides from Stifel Financial's earnings presentation, Jan 26, 2022
Slide 1: Fourth Quarter & Full Year 2021 Financial Results Presentation
Fourth Quarter & Full Year 2021 Financial Results Presentation January 26, 2022 Exhibit 99.3
Slide 2: 26th Consecutive Year of Record Net Revenue: 2021 Snapshot
26th Consecutive Year of Record Net Revenue 2021 Snapshot 2021 Results millions, except per share and ratios HIGHLIGHTS NET REVENUE GAAP & NON-GAAP $4,737 PRE-TAX MARGIN GAAP 22.5% NON-GAAP 23.9% NET EARNINGS GAAP $789 NON-GAAP $840 EPS GAAP $6.66 NON-GAAP $7.08 ROCE GAAP 19.7% NON-GAAP 21.0% ROTCE*
Slide 3: Impressive Track Record of Growth
Impressive Track Record of Growth 2015 & 2016 exclude duplicative acquisition costs Earnings per share have been adjusted to reflect December 2020 three for two stock split Non-GAAP
Slide 4: Record Net Revenue: Fourth Quarter Snapshot
Record Net Revenue Fourth Quarter Snapshot 4Q21 Results millions, except per share and ratios HIGHLIGHTS NET REVENUE GAAP & NON-GAAP $1,304 NET EARNINGS GAAP $252 NON-GAAP $265 EPS GAAP $2.12 NON-GAAP $2.23 ANNUALIZED ROCE GAAP 23.7% NON-GAAP 25.0% ANNUALIZED ROTCE* GAAP 34.7% NON-GAAP 36.6% BOOK VA
Slide 5: Fourth Quarter Results
Fourth Quarter Results FOURTH QUARTER HIGHLIGHTS Record Quarterly: Net Revenue of $1.3 billion, up 23% Y/Y: Global Wealth Management Revenue of $674 million, up 17% Y/Y Institutional Group Revenue of $633 million, up 29% Non-GAAP Pre-tax Margin of 25.7%, up 190 bps Y/Y Fee-based Client Assets of $16
Slide 6: Global Wealth Management Highlights
HIGHLIGHTS Record Full Year Net Revenue of $2.6 billion, up 19% Y/Y Record Quarterly Revenue of $674 million, up 17% Y/Y Private Client Fee-based Assets Increased 26% Y/Y Added 34 Financial Advisors with Total Trailing Twelve Month Production of $16 million. 27 Employee Advisors, Including 16 Experi
Slide 7: Wealth Management Metrics
Wealth Management Metrics Technology to support advice-based model Stifel Wealth Tracker – online and mobile app: free/ secure / smart aggregation / budgeting tools / advice when you want it / understand the markets / understand your complete financial picture Performance reporting tools – enhanced
Slide 8: Institutional Group
Institutional Group * Includes net interest, asset management, and other income HIGHLIGHTS Record Results: Quarterly Net Revenue of $633 million, up 29% Y/Y Full Year Net Revenue of $2.152 billion, up 36% Y/Y Quarterly & Full Year Advisory Revenue Full Year Capital Raising Revenue Second Highest Ann
Slide 9: Institutional Equities & Fixed Income Highlights
highlights Record Full Year Total Fixed Income Revenue Record Quarterly Capital Raising Revenue Surpassed Prior Record by 11% (3Q21) Second Highest Full Year Transactional Revenue Ranked # 1in Public Finance Senior Managed Negotiated Issues in 2021 Institutional Equities & Fixed Income highlights Re
Slide 10: Investment Banking Revenue Highlights
Investment Banking Revenue Highlights Record Results: Full Year Investment Banking Revenue Surpassed Prior Record by 64% (2020) Quarterly Investment Banking Revenue Surpassed Prior Record by 27% (2Q21) Full Year Advisory Revenue Surpassed Prior Record by 91% (2019) Quarterly Advisory Revenue Surpass
Slide 11: Net Interest Income
Net Interest Income Net Interest commentary 4Q21 Net Interest Income Increased 31% Y/Y. Average Interest Earning Assets Increased by more than $2 billion in 4Q21. Quarter End Deposits up 28% year-on-year Balance Sheet Growth Further Increases Greater Leverage to Increased Short-term Interest Rates t
Slide 12: Stifel Bancorp Inc. Loan & Investment Portfolio
Stifel Bancorp Inc. Loan & Investment Portfolio * Total excludes $208 million of loans classified as held for sale
Slide 13: CECL & Credit Metrics
CECL & Credit Metrics ASSUMPTIONS Moody’s Forecast 40% Baseline (gradual recovery) 30% Downside (double dip recession) 30% Upside (accelerated recovery) Forecast Update for Most Recent Scenarios Broad-based Improvement of Forecasted Economic Variables Since June 30 Incorporated a Management Overlay
Slide 14: Capital Deployment
Capital Deployment HIGHLIGHTS Raising Quarterly Dividend by 100% Balance Sheet Growth of More than $7 billion in 2021 Client Cash Balances Increased $3 billion in 4Q21 Substantial Excess Capital to Pursue Continued Growth Additional Capital of $150 million Generated from Equity-based Compensation In
Slide 15: Expenses
Expenses * For reconciliation of GAAP to non-GAAP expenses, refer to our fourth quarter 2021 earnings release. Bar chart header numbers are a graphic
Slide 16: Strategic Review & Outlook
Strategic Review & Outlook STIFEL
Slide 17: 2021 Results Surpassed Guidance
2021 Results Surpassed Guidance Original 2021 Guidance Assumptions Total Net Revenue Increase of 1% - 7% Net Interest Income Growth of -2% - 9% Stable to Increasing Bank Net Interest Margin (Finished 2020 at 239 basis points) Bank Interest-Earning Asset Growth of $2 billion Institutional Group Growt
Slide 18: 2022 Guidance & Growth Drivers
2022 Guidance & Growth Drivers Net Interest Income Balance Sheet Growth of up to $6 billion Bank Net Interest Margin to Benefit from Rate Increases Approximately $7 billion in Third Party Sweep Program Excess Capital Capital Ratios Well Above Well Capitalized Levels At End of 2021, Excess Capital wa
Slide 19: Fourth Quarter & Full Year 2021 Financial Results Presentation
Fourth Quarter & Full Year 2021 Financial Results Presentation January 26, 2022
Slide 20: Disclaimer: Forward-Looking Statements
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