Stifel Financial Corporation · NYSE:SF
Stifel Financial — Goldman Sachs US Financial Services Conference 2017
37 slides from Stifel Financial's conference presentation, Dec 6, 2017
Slide 1: Investor Presentation – Goldman Sachs US Financial Services Conference
Investor Presentation Goldman Sachs US Financial Services Conference December 6, 2017 Exhibit 99.1
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: Our Strategy
Our Strategy STIFEL
Slide 4: Strategic Vision
Strategic Vision To build a premier wealth management and investment banking firm Global Wealth Management Institutional Private Client 2,252 financial advisors in 356 branches with more than $235B in client assets Asset Management $29B in total assets managed through various strategies Bank $14.5B
Slide 5: A History of Growth
A History of Growth 2005 Legg Mason’s Capital Markets Division 2008 Butler Wick 2009 56 UBS Private Client Branches 2010 Thomas Weisel Partners 2007 Ryan Beck Acquisition Stifel Bank & Trust 2011 Stone & Youngberg 2012 Miller Buckfire 2013 Knight Capital Group’s Fixed Income Division 2014 De La Rosa
Slide 6: Driving Shareholder Value Through Deal Integration & Balance Sheet Growth
Driving Shareholder Value Through Deal Integration & Balance Sheet Growth
Slide 7: Infrastructure Build and Balance Sheet Growth
139% Growth 119% Growth Infrastructure Build Balance Sheet Growth
Slide 8: Bank Drove Significant Balance Sheet & Revenue Growth
Bank Drove Significant Balance Sheet & Revenue Growth Bank growth has been balanced between loans and investments: Loans: Comprised of securities based loans, C&I, and residential mortgages Focused lending to high net worth retail clients AFS & HTM Investments: Portfolio primarily GSE MBS, ABS, and
Slide 9: Stifel Overview
Stifel Overview STIFEL 3
Slide 10: Stifel – Premier Investment Bank and Wealth Management Firm
Stifel – Premier Investment Bank and Wealth Management Firm Stifel at a Glance 2016 GAAP Net Revenue - $2.6 billion Global Wealth Management (GWM) 2016 Net Revenue - $1.6 billion Institutional Group (IG) 2016 Net Revenue - $1.0 billion Private Client Stifel Bank & Trust Margin and Securities-based L
Slide 11: Leading broker-dealer providing wealth management and institutional services
Leading broker-dealer providing wealth management and institutional services to consumers and companies Bulge Bracket Boutique Size / scale Large distribution Trading Retail Issues Lack of focus Banker turnover Lack of commitment Research indifference Lack of growth investors Firm focus Good researc
Slide 12: Well-diversified, Low Risk Business Model
Well-diversified, Low Risk Business Model with Balanced Retail and Institutional Exposure Unburdened by capital constraints Low leverage business model and conservative risk management Limited balance sheet risk Stable wealth management business is augmented by profitable and growing institutional b
Slide 13: A Stable Track Record Through Multiple Business Cycles
A Stable Track Record Through Multiple Business Cycles Non-GAAP Net Revenues(1) ($MM) Total Equity ($MM) Total Client Assets(2) ($BN) Book Value Per Share(3) 2017 Non-GAAP net revenue based on annualized results as of 9/30/2017. Excludes impact of sale of Sterne Agee Independent Contractor & Corresp
Slide 14: Global Wealth Management
Global Wealth Management STIFEL
Slide 15: Global Wealth Management (GWM) Overview
Global Wealth Management (GWM) Provides Securities Brokerage Services and Stifel Bank Products Overview National Presence Grown from 600+ financial advisors in 2005 to more than 2,250 financial advisors currently Proven organic growth and acquirer of private client business Strategy of recruiting ex
Slide 16: Building Scale and Capabilities into a $1.6B Revenue Segment
Building Scale and Capabilities into a $1.6B Revenue Segment Private Client Asset Management Bank 56 UBS Branches Private Client – 350 financial advisors and support Revenue production has exceeded expectations October 2009 Private Client – 75 financial advisors Public Finance December 2008 Private
Slide 17: GWM - Private Client Group Key Operating Metrics
GWM - Private Client Group Key Operating Metrics Accounts(1) Financial Advisors(1) Total Client Assets(1) ($MM) Branches(1) As of 9/30/2017 and excludes Legacy Sterne Agee Independent Contractor Business.
Slide 18: GWM – Stifel Bank & Trust
GWM – Stifel Bank & Trust Acquired FirstService Bank, a St. Louis-based, Missouri-chartered commercial bank, in April 2007 Stifel Financial became a bank holding company and financial services holding company Substantial Balance sheet growth with low-risk assets Funded by Stifel Nicolaus client depo
Slide 19: Growing Asset Management Capabilities
Growing Asset Management Capabilities Asset Management Subsidiaries with $28.8 Billion in Client Assets As of September 30, 2017. Ziegler Capital Management, LLC, 1919 Investment Counsel, LLC, Choice Financial Partners, Inc. d/b/a EquityCompass Strategies, and Washington Crossing Advisors, LLC are w
Slide 20: Institutional Group
Institutional Group STIFEL 20
Slide 21: Institutional Group Net Revenues and Overview
Institutional Group Net Revenues ($MM)(2)(3)(4) Fixed Income Brokerage + Investment Banking (4) Overview Equity Brokerage + Investment Banking (4) Provides securities brokerage, trading, research, underwriting and corporate advisory services Largest provider of U.S. Equity Research 2nd largest Equit
Slide 22: Building Scale and Capabilities into a $1.0B Revenue Segment
Equities Fixed Income Investment Banking Building Scale and Capabilities into a $1.0B Revenue Segment Growth Focused Investment Banking, Research, Sales and Trading July 2010 Core of our Institutional sales, trading and research group December 2005 Knight Fixed Income IB, Sales and Trading, Private
Slide 23: Institutional Group – Advisory
Institutional Group – Advisory 2010-2017 YTD: Leadership in M&A of Public Companies and deals < $1bn. Public Deals < $1 Billion in Value All Deals < $1 Billion in Value Source: Dealogics M&A Analytics as of October 31,2017. Note: Includes all sell-side and buy-side strategic or sponsor-backed disclo
Slide 24: Institutional Group – Equity Underwriting
Institutional Group – Equity Underwriting Accomplished U.S. Equity Underwriting Franchise – All Equity Transactions Bookrun Equity Deals Since 2010 All Managed Equity Deals Since 2010 Source: Dealogic. Rank eligible SEC registered IPOs and Follow-On offerings since 2010. Includes demutualizations. A
Slide 25: Institutional Group – Research
Institutional Group – Research Largest U.S. Equity Research Platform U.S. Equity Research Coverage (1)(2) Coverage Balanced Across All Market Caps (1) Stifel Research Highlights Largest provider of U.S. Equity Research Largest provider of U.S. Small Cap Research² #1 U.S. provider of Financial Servic
Slide 26: Institutional Group – Equity Sales and Trading
Institutional Group – Equity Sales and Trading Powerful Platform Spanning North America and Europe Institutional Equity Sales Equity Trading Extensive Distribution Network Relationships with over 3,500 institutional accounts globally Active daily market maker in over 3,700 stocks Traded over 6.7 bil
Slide 27: Institutional Group – Fixed Income Capital Markets
Institutional Group – Fixed Income Capital Markets Strong Fixed Income Brokerage Capabilities Overview Client Distribution (1)(2) Platform & Products Comprehensive platform 125 traders with annual client trade volume approaching $500 billion 50-person Fixed Income Research and Strategy Group Widespr
Slide 28: Institutional Group – Public Finance
Institutional Group – Public Finance Overview Stifel has ranked in the top ten nationally for senior managed negotiated underwritings for the past five years, and Stifel has ranked #1 nationally for senior managed K-12 negotiated underwritings for 2016 & YTD 2017. Stifel’s Public Finance Group ranke
Slide 29: Third Quarter Review
Third Quarter Review STIFEL
Slide 30: Third Quarter Results
Third Quarter Results Financia Hohlights (000s, except per share deta) Net revenues $721,169 $645767 12% $725,647 -1%| |$721,169 $641,986 12% $725,647 196) (Compensation ratio 62.5% -140bps 61.4% 30 bps| 676% S40bps 625% 30 bps| Non-compensation ratio 22.1% 235% -140bps 22.3% ©—-20bps| | 22.8% 28.0%
Slide 31: Investment Banking, Brokerage Revenue, & Asset Management & Service Fees
Investment Banking, Brokerage Revenue, & Asset Management & Service Fees
Slide 32: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Three months ended September 30, 2017
Slide 33: Balance Sheet & Net Interest Margin
Balance Sheet & Net Interest Margin
Slide 34: Segment Results
Segment Results STIFEL 4
Slide 35: Global Wealth Management
Global Wealth Management $600 GWM Net Revenue WY Sequent for 3Q17 Change Chan: =8400 a ial = (Global Wealth Management Revenue 5300 ‘Commissions S115 2% 4% Es200 Piincipal Transactions $43 10% © -10% 3 S100 Brokerage $198 4% = 6% [Asset Management & Service Fees $180 26% 4% so Net interest $103 61%
Slide 36: Stifel Bank & Trust
Stifel Bank & Trust (mil. except for %' 3017 3Q16 Change 2017 $7238 $5,377 | 35% | $6,753) 7% 2380 1,558] 53% | 2064] 15% 1840 1453} 27% 1756 | 5% $6,783 $4,957 | 37% | $6,160 | 10% 166 217 | 24% 7140 | 19% $14,539 $11,019 | 32% |$13,598 | 7% Liabilities: Deposits $12,884 $9,885 | 30% |$12,050 | 7%
Slide 37: Institutional Group
Institutional Group Institutional Group Net Revenue YIY Sequential $300 3Q17 Change Change Institutional Revenue Equity Advisory $95 13% 17% Underwriting $43 108% 5% Brokerage $45 11% 11% 3016 ais 1017 2017 3017 Tota Equity Capital Markets Revenue $183 16% 3% Brokerage Capital Raising Ml Advisory Fe
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