Stifel Financial Corporation · NYSE:SF
Stifel Financial — Q1 2023 Earnings Presentation
19 slides from Stifel Financial's earnings presentation, Apr 26, 2023
Slide 1: First Quarter 2023 Financial Results Presentation
First Quarter 2023 Financial Results Presentation April 26, 2023 Quarterly Earnings Report
Slide 2: First Quarter Snapshot
First Quarter Snapshot 1Q23 RESULTS millions, except per share and ratios NET REVENUE NET EARNINGS EPS GAAP & NON-GAAP $1,107 GAAP $148 NON-GAAP $161 GAAP $1.28 NON-GAAP $1.40 ANNUALIZED ROCE ANNUALIZED ROTCE* BOOK VALUE PER SHARE GAAP 12.7% NON-GAAP 13.9% GAAP 18.3% NON-GAAP 19.9% TBV $30.08 BV $43
Slide 3: The Strength & Stability of Stifel
The Strength & Stability of Stifel Stifel Stifel KRX Financial Financial Median HIGHLIGHTS 1Q23 4Q22 Profitability ■ Balanced Earnings Power Across Multiple Core ROAA 1.7% 2.1% 1.4% Business Lines Designed to Perform Through All Core ROTCE 19.9% 22.9% 19.0% Business Cycles NIM 3.57% 3.64% 3.62% Capi
Slide 4: Diversified Deposit Portfolio
Diversified Deposit Portfolio TOTAL DEPOSITS HIGHLIGHTS $40,000 $35,000 ■ Highly Diversified Deposit Base $30,000 ■ Client Cash Remained at Stifel $25,000 ■ Provide Incremental FDIC Insurance millions $20,000 $15,000 ■ Deposit Beta a Function of Cash Sorting $10,000 ■ Deposit Beta Cycle-To-Date of 4
Slide 5: Complimentary Nature of Institutional Group Revenue & Net Interest Income
Complimentary Nature of Institutional Group Revenue & Net Interest Income Rate Increase Positively Impacted NII & Dampened Institutional Margins $350 Significant Operating Leverage $300 Exists $250 millions $200 $150 $100 $50 $0 Institutional Group Pre-tax Income Net Interest Income Non-GAAP Pre-tax
Slide 6: Long-term Strategic Objectives
Long-term Strategic Objectives Global Wealth Management ■ Achieve $1 Trillion in Client Assets Solidify our Position ■ Recruiting & Acquisitions Technology as Premier Wealth ■ ■ Continue to Build Stifel Bank Management Firm & ■ Expand Client Deposits Smart Rate Investment Bank ■ ■ Corporate Deposits
Slide 7: First Quarter Results
First Quarter Results FINANCIAL RESULTS Sequential NET REVENUE millions 1Q23 Y/Y Change Change $1,400 Global Wealth Management $757 11% 2% $1,200 $1,117 $1,108 $1,122 $1,107 Institutional 333 -23% -6% $1,045 Other 17 407% -27% $1,000 Net revenue 1,107 -1% -1% millions $800 Compensation expense 642 -
Slide 8: Global Wealth Management
Global Wealth Management GLOBAL WEALTH MANAGEMENT REVENUE HIGHLIGHTS Sequential millions 1Q23 Y/Y Change Change ■ Record Quarterly Net Revenue Transactional $161 -9% -3% ■ Second Highest Quarterly Net Interest Income Asset Management 316 -8% 9% Net Interest 282 80% -1% ■ Asset Management Revenue Inc
Slide 9: Wealth Management Metrics
Wealth Management Metrics RECRUITING DRIVES REVENUE GROWTH INCREASING PERCENTAGE OF RECURRING REVENUE $400 600 100% 550 $350 90% 500 24% 22% $300 450 80% 34% 32% 33% 32% Financial Advisors 39% 400 46% $250 70% 51% millions 350 $200 300 60% 250 50% $150 200 40% 76% 78% $100 150 66% 66% 66% 30% 60% 64
Slide 10: Net Interest Income
Net Interest Income CONDENSED NET INTEREST INCOME NET INTEREST COMMENTARY 1Q23 Y/Y Change Sequential Change Average Average Average Average Average Average ■ 1Q23 Net Interest Income Increased 90% Y/Y. Balance Interest Balance Interest Balance Interest Interest-earning Cash & Fed Funds Sold $1,990 4
Slide 11: Stifel Bancorp Inc. Loan & Investment Portfolio
Stifel Bancorp Inc. Loan & Investment Portfolio LOAN PORTFOLIO COMMERCIAL PORTFOLIO BY MAJOR SECTOR % of Total millions 1Q23 Portfolio Residential Real Estate $7,495 28% Industrials $1,128 4% Securities Based Lending $2,558 9% Financials 870 3% Home Equity lines of Credit & Other $159 1% Consumer Di
Slide 12: CECL & Credit Metrics
CECL & Credit Metrics Economic Economic Economic Economic Economic Factors & Factors & Factors & Factors & Factors & ASSUMPTIONS Portfolio Changes, net of Portfolio Changes, net of Portfolio Changes, net of Portfolio Changes, net of Portfolio Changes, net of charge offs charge offs charge offs charg
Slide 13: Institutional Group
Institutional Group INSTITUTIONAL GROUP REVENUE HIGHLIGHTS Sequential millions 1Q23 Y/Y Change Change Advisory $151 -17% -10% ■ Third Highest First Quarter Institutional Revenue Capital Raising $57 -17% 9% ■ Second Highest First Quarter Advisory Revenue Transactional $124 -31% -4% Total Institutiona
Slide 14: Institutional Equities & Fixed Income
Institutional Equities & Fixed Income INSTITUTIONAL EQUITIES REVENUE INSTITUTIONAL FIXED INCOME REVENUE Sequential Sequential millions 1Q23 Y/Y Change millions 1Q23 Y/Y Change Change Change Transactional $52 -7% 1% Transactional $71 -42% -8% Capital Raising $25 -16% 2% Capital Raising $32 -18% 15% T
Slide 15: Expenses
Expenses NON-GAAP EXPENSES & PRE-TAX INCOME Non-GAAP EXPENSE RATIOS 65% 25% Non-compensation Ratio millions 1Q23 1Q22 Y/Y Change 63% 20% Compensation Ratio 61% Compensation $642 $664 -3% 59% 15% Non-compensation Expense, $227 $197 15% 57% 59.5% 58.1% 10% Ex. IB Gross Up & Credit Loss Provision 58.0%
Slide 16: Capital Utilization
Capital Utilization FIRM-WIDE ASSETS & CAPITAL RATIOS HIGHLIGHTS $40,000 22.0% $38,000 $37,612 $37,196 $38,598 ■ Total Assets Increased $1.4 billion $36,476 20.0% $35,088 $36,000 ■ Corporate Cash Increased $600 million $34,000 18.0% 18.6% $32,000 18.0% 17.6% 16.0% ■ Bank Funding Increased at CAGR of
Slide 17: Concluding Remarks
Concluding Remarks Quarterly Earnings Report
Slide 18: First Quarter 2023 Financial Results Presentation
First Quarter 2023 Financial Results Presentation April 26, 2023 Quarterly Earnings Report
Slide 19: 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