Stifel Financial Corporation · NYSE:SF
Stifel Financial — Q1 2012 Earnings Presentation
18 slides from Stifel Financial's earnings presentation, May 9, 2012
Slide 1: 1st Quarter 2012 Financial Results Presentation
1st Quarter 2012 Financial Results Presentation May 9, 2012
Slide 2: Forward-Looking Statements
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 future business
Slide 3: Chairman's Comments
Chairman’s Comments “The first quarter of 2012 proved to be our second best quarter in terms of net revenues, net income and diluted EPS. The overall improvement in the economy positively impacted both our Global Wealth Management and Institutional Group’s businesses during the quarter, particularly
Slide 4: Financial Results
Financial Results
Slide 5: Stifel Financial Corp. Results
Stifel Financial Corp. Results Three months ended March 31, 2012 Three Months Ended ($ in thousands, except per share amounts) 3/31/12 3/31/11 Change 12/31/11 Change Net revenues $ 400,333 $ 366,613 9.2% $ 356,878 12.2% Compensation and benefits 254,704 231,166 10.2% 228,743 11.3% Non-comp operating
Slide 6: Source of Revenues
Source of Revenues Quarter Ended % ($ in thousands) 3/31/12 3/31/11 Change 12/31/11 % Change Commissions $ 123,303 $ 155,786 (20.9%) $ 123,737 (0.4%) Principal transactions 116,233 92,859 25.2% 93,963 23.7% Capital raising 54,833 32,358 69.5% 27,347 100.5% Advisory 15,605 9,060 72.2% 28,728 (45.7%)
Slide 7: Brokerage Revenues
Brokerage Revenues Quarter Ended % % ($ in thousands) 3/31/12 3/31/11 Change 12/31/11 Change Taxable debt $ 61,433 $ 51,419 19.5% $ 48,882 25.7% Municipal debt 21,826 19,538 11.7% 25,731 (15.2%) Equities 21,108 11,623 81.6% 7,920 166.5% Other 11,866 10,279 15.4% 11,430 3.8% Principal transactions $
Slide 8: Non-Interest Expenses
Non-Interest Expenses Three months ended March 31, 2012 Quarter Ended % of Net revenues ($ in thousands) 3/31/12 3/31/11 % Change 12/31/11 % Change 3/31/12 3/31/11 12/31/11 Compensation and benefits 236,332 212,405 11.3% 210,924 12.0% 59.0% 57.9% 59.1% (1) Transitional pay 18,372 18,761 (2.1%) 17,81
Slide 9: Segment Comparison
Segment Comparison Quarter Ended % % ($ in thousands) 3/31/12 3/31/11 Change 12/31/11 Change Net revenues: Global Wealth Management $ 248,348 $ 238,446 4.2% $ 224,569 10.6% Institutional Group 148,504 126,994 16.9% 134,229 10.6% Other 3,481 1,173 196.8% (1,920) 281.3% $ 400,333 $ 366,613 9.2% $ 356,
Slide 10: Global Wealth Management
Global Wealth Management Quarter Ended ($ in thousands) 3/31/12 3/31/11 % Change 12/31/11 % Change Commi s s i ons $ 91,023 $ 101,762 (10.6%) $ 83,662 8.8% Pri nci pa l tra ns a cti ons 59,045 56,163 5.1% 53,700 10.0% As s et ma na gement & s ervi ce fees 60,586 57,530 5.3% 55,691 8.8% Net i nteres
Slide 11: Stifel Bank & Trust
Stifel Bank & Trust (an operating unit of GWM) ($ in thousands) 3/31/12 3/31/11 % Change 12/31/11 % Change Net revenues: Interest 17,480 11,203 56.0% 17,121 2.1% Other income 2,602 1,932 34.7% 6,400 (59.3%) Total revenues 20,082 13,135 52.9% 23,521 (14.6%) Interest expense 4,064 4,237 (4.1%) 4,072 (
Slide 12: Stifel Bank & Trust
Stifel Bank & Trust (an operating unit of GWM) Low Risk Asset Growth Strategy & Opportunity Assets of $2.6 billion as of March 31 2012, an increase of 15% from Maintain solid asset quality: $2.3 billion as of December 31, 2011. Non-performing loans to gross loans of 0.32% Investment portfoli
Slide 13: Institutional Group
Institutional Group Quarter Ended ($ in thousands) 3/31/12 3/31/11 % Change 12/31/11 % Change Commi s s i ons $ 32,280 $ 54,025 (40.2%) $ 40,076 (19.5%) Pri nci pa l tra ns a cti ons 57,188 36,696 55.8% 40,263 42.0% Inves tment ba nki ng 57,968 35,106 65.1% 52,059 11.4% (1) Other i ncome 1,068 1,167
Slide 14: Institutional Group Revenues
Institutional Group Revenues ($ in thousands) 3/31/12 3/31/11 % Change 12/31/11 % Change Sales and trading: Equity $ 44,172 $ 52,398 (15.7%) $ 40,598 8.8% Fixed income 45,296 38,323 18.2% 39,741 14.0% 89,468 90,721 (1.4%) 80,339 11.4% Investment Banking: Capital raising Equity 31,550 23,005 37.1% 10
Slide 15: Financial Condition
Financial Condition
Slide 16: Capital Structure
Capital Structure As of March 31, 2012 (in thousands, except ratios) Total Assets $ 5,465,694 Stockholders' Equity $ 1,342,942 Debentures to: Stifel Financial Capital Trust II - LIBOR plus 1.70%, due 9/30/35 $ 35,000 Stifel Financial Capital Trust III - LIBOR plus 1.85% (fixed at 6.79% until 6/6/12)
Slide 17: Other Financial Data
Other Financial Data As of As of 3/31/12 3/31/11 % Change 12/31/11 % Change Total assets (000s): Stifel Nicolaus & Stifel Financial $ 2,853,866 $ 2,749,674 3.8% $ 2,676,171 6.6% Stifel Bank 2,611,828 1,787,531 46.1% 2,275,729 14.8% Total assets $ 5,465,694 $ 4,537,205 20.5% $ 4,951,900 10.4% Total s
Slide 18: Level 3 Assets
Level 3 Assets Carrying Value ($ in thousands) 3/31/12 12/31/11 (1) Auction Rate Securities (ARS) $ 170,340 $ 181,801 Stifel Bank & Trust Investments 12,000 12,000 Trading Securities 6,697 3,742 (2) Other Investments 37,982 37,033 Level 3 assets (excluding ARS) 56,679 52,775 Total Level 3 assets $ 2