STIFEL FINANCIAL CORP Q1 FY2025 earnings call

• Stifel's core operating strength was evident with $1.3 billion net revenue in first quarter despite volatile market, highest first quarter revenue and third strongest overall, driven by record asset management revenue in Global Wealth Management and robust advisory and transactional revenue from Institutional Equities. • Excluding legal charge, operating EPS was $1.65, an 11% increase year-over-year, record first quarter earnings per share. • Adopted more conservative market outlook after two consecutive years of >20% S&P 500 gains, with S&P 500 at 5,288 down ~10% YTD. • Global Wealth Management asset management revenues up 11% vs last year, added 52 total advisors during the quarter, ended with fee-based assets of $190 billion and total client assets of $486 billion. • Institutional Group total revenue up 10% Y/Y, investment banking revenue $238 million, advisory revenue up 15% to $137 million, equity underwriting up 22% Y/Y, fixed income underwriting down 9% Y/Y, equity and fixed income transactional revenues up 10% and 1% Y/Y respectively.

Global Wealth Management revenue was $851 million. Pre-tax margins, excluding legal charge impact, were 36% with record asset management revenue and second highest first quarter transactional revenue. Added 52 total advisors during the quarter, ended with fee-based assets of $190 billion and total client assets of $486 billion. Institutional Group total revenue was $385 million in the quarter, up 10% year-on-year. Firm-wide investment banking revenue totaled $238 million, with advisory revenue up 15% from last year to $137 million. Equity underwriting was $49 million, up 22% year-on-year. Fixed income underwriting revenue was $46 million, down 9% year-on-year. Equity transactional revenue was $60 million, up 10% year-on-year. Fixed income transactional revenue was $89 million, up 1% year-on-year.

• Not revising 2025 financial guidance currently, remain confident in positioning and long-term growth strategy. • Prepared to revisit full year forecast if current conditions persist. • May moderate loan growth and prioritize share repurchase given current market conditions and share price levels. • First quarter buyback activity reflects this approach and will continue to evaluate strategic capital uses.

• Market volatility impacting investor confidence and slowing activity across certain market segments. • Uncertainty over global capital flows and disagreement between administration and Federal Reserve on monetary policy contributing to increased market volatility. • Legal charge related to recent FINRA arbitration panel ruling, limited ability to discuss further due to ongoing nature. • Impact of equity markets not rebounding on asset management revenues in future quarters for 2025.

Q: On advisor recruiting, given acquisitions in the space and volatile markets, sense of advisor motion and recruiting pipeline expectations for 2025?

A: Ron is pleased with recruiting, pleased with high-quality teams this quarter, encouraged by recruiting activity as markets go through volatility, focuses on productivity rather than just headcount; Jim mentions closing B. Riley transaction in early April added 36 financial advisors and ~$4 billion of AUM Q: On wealth commissions being softer than modelled, what happened in first quarter and trajectory?

A: Jim says a bit of both, some trailing commissions declining and some hesitancy with volatility, seen some pickup in client engagement and portfolio repositioning after end of quarter Q: On M&A activity in bank space, view on consolidation trend, timeline for deals?

A: Ron says deals announced now could close this year, banking M&A driven by various factors, FIG segment advisory side expected to be stronger; Jim says bank deals approved in as little as four months, positive feedback from regulators Q: On NII near-term outlook for Q2 and full year, cash balances in April?

A: Jim says gave range for NII Q2 $260 million to $270 million, outlook dependent on loan growth mix and volume, Ron mentions evaluating trade-off between repurchases and loan growth; Jim says cash sweeps still down since end of March, smart rate also down, majority seasonality related to tax payments, venture and fund banking deposits increasing Q: On bank NIM contraction, timing-related impacts?

A: Jim says CLO book reprice over 90 days, repricing lag, loan growth lower than anticipated, success fees having outsized impact, still happy with 3.10% bank NIM; Ron says caution not to think success fees cause permanent compression Q: On public finance and fixed income brokerage outlook?

A: Ron says public finance murky due to tax bill uncertainty but infrastructure needs remain; Jim says public finance underwriting calendar busy, fixed income trading 1Q seasonally slow, second quarter flat to up from here with optimistic outlook Q: On capital management and M&A focus?

A: Ron says activity back-half weighted, always looking at M&A, B. Riley was nice bolt-on, pricing a factor, rely on return on investment calculator; Jim adds on FICC brokerage, FICC underwriting mainly public finance and investment-grade activity, 1Q generally softer quarter