Stifel Financial Corporation · NYSE:SF
Stifel Financial — Q4 2019 Earnings Presentation
18 slides from Stifel Financial's earnings presentation, Jan 30, 2020
Slide 1: 4th Quarter & Full Year 2019 Financial Results Presentation
4th Quarter & Full Year 2019 Financial Results Presentation January 30, 2020
Slide 2: 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
Slide 3: Full Year Results
Full Year Results • 24th Consecutive Year of Record Net Revenue of $3.34 billion, up 10% • Record Client Assets of $330 billion, up 22% Y/Y • Record GAAP EPS of $5.49, up 16% • Record Fee-based Assets of $117 billion, up 30%, Y/Y • Record Non-GAAP EPS of $6.10, up 16% • Recruited 150 Financial Advis
Slide 4: Four Years of Substantial Growth
Four Years of Substantial Growth 2015-2019 (millions) 2015** 2016** 2017 2018 2019 Change Inco me Stat ement * Total net rev enue $2,335 $2,580 $2,928 $3,025 $3,337 43% growth 10% 13% 3% 10% Net income av ailable to common s hareholders $149 $186 $323 $429 $480 222% growth 25% 74% 33% 12% Earnings p
Slide 5: Fourth Quarter Results
Fourth Quarter Results • Record Non-GAAP Net Revenue of $944 million, up 19% Y/Y. • Record GAAP EPS of $1.62, up 17% Y/Y • Record Asset Management & Services Fees of $224 million, up 7% • Non-GAAP Pre-tax Margin of 20.5%, up 30 bps Q/Q Y/Y. • Non-GAAP ROCE of 18.2% & Non-GAAP ROTCE of 30.6% • Record
Slide 6: Segment Results & Operating Revenue
Segment Results & Operating Revenue 5
Slide 7: Global Wealth Management
Global Wealth Management Y/Y Se quenti al YTD millions 4Q 19 Change Change 2019 Change Gl obal Weal th Manage ment Re venue Commissions $129 10% 9% $477 1% Principal Transactions $45 11% 7% $172 4% Brokerage $174 11% 9% $650 2% Asset Management & Service Fees $224 7% 3% $848 5% Net Interest $138 4%
Slide 8: Institutional Group
Institutional Group Institutional Group Net Revenue Y/Y Sequential YTD $400 millions 4Q19 Change Change 2019 Change $350 Ins titutional Revenue G AAP Net Revenue (mil.) $300 Adv iso ry $155 40% 48% $448 21% $250 $200 Equity $150 Underwriting $64 24% 22% $204 -4% $100 Brokerage $46 -6% 12% $167 -10%
Slide 9: Brokerage Revenue and Asset Management & Service Fees
Brokerage Revenue and Asset Management & Service Fees (000s) 4Q19 4Q18 % Change 3Q19 % Change 2019 2018 % Change Global Wealth Management brokerage revenue $174,000 $157,331 11% $160,117 9% $649,699 $638,173 2% Institutional brokerage: Equities 45,989 48,705 -6% 41,037 12% 166,577 185,960 -10% Fixed
Slide 10: Investment Banking Revenue
Investment Banking Revenue Investment banking: Three Months Ended YTD (000s) 4Q19 4Q18 % Change 3Q19 % Change 2019 2018 % Change Capital raising: Equities $70,461 $56,574 25% $59,968 17% $231,326 $235,508 -2% Fixed Income 51,382 33,570 53% 33,975 51% 138,116 100,680 37% Total capital raising 121,843
Slide 11: Net Interest Income, Expenses & Balance Sheet
Net Interest Income, Expenses & Balance Sheet 10
Slide 12: Net Interest Income
Net Interest Income Average Yields on Balance Sheet Net Interest Income Growth 4Q19 4Q18 Change 3Q19 %Change $160 $142 $135 $135 $136 Assets: $140 $127 Bank loans 3.88% 4.11% -23 bps 4.09% -21 bps $120 N et Interest Income (mil.) Commercial 4.37% 4.79% -42 bps 4.77% -40 bps $100 Securities based 3.5
Slide 13: Stifel Bancorp, Inc.
Stifel Bancorp, Inc. % % (mil. except for %'s) 4Q19 4Q18 Change 3Q19 Change Assets: Mortgage Loans 3,310 2,875 15% 3,043 9% Commercial Loans 3,439 3,304 4% 3,316 4% Securities Based Loans 2,098 1,787 17% 1,986 6% Commercial Real Estate 429 319 34% 388 11% Loans Held for Sale 389 206 89% 265 47% Tota
Slide 14: Expenses
Expenses Non-GAAP Expenses & Pre-tax Three Months Ended YTD Compensation Ratio Income % % % 60.0% 59.0% 4Q19 4Q18 Change 3Q19 Change 2019 2018 Change 59.0% (millions) 58.3% 57.9% 58.1% 58.0% Compensation $551 $444 24% $477 15% / $1,946 $1,753 11% 57.0% Non-compensation $200 $175 14% $179 12% $728 $6
Slide 15: Balance Sheet
Balance Sheet 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 1Q19 2Q19 3Q19 4Q19 Tier 1 Leverage 32.3% 30.5% 25.6% 21.4% 17.7% 15.4% 16.5% 16.6% 10.2% 9.5% 9.3% 9.8% 10.0% 10.0% 10.0% Tier 1 Risk Based Capital 49.4% 40.5% 29.1% 27.4% 26.8% 26.7% 25.0% 26.3% 20.3% 19.0% 18.2% 18.5% 18.0% 18.1
Slide 16: Outlook
Outlook STIFEL
Slide 17: 2019 Results & 2020 Outlook
2019 Results & 2020 Outlook millions 2019 Guidance 2019 Actual 2020 Estimate Net Revenue $3,050 - $3,350 $3,337 $3,500-$3,700 Net Interest Income $530 - $550 $547 $590 - $605 Incremental Acquisition-related Revenue NA $84 $120 - $135 Brokerage NA $34 $45 - $50 Investment Banking NA $50 $75 - $85 Com
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