Stifel Financial Corporation · NYSE:SF
Stifel Financial — Q1 2019 Earnings Presentation
15 slides from Stifel Financial's earnings presentation, Apr 30, 2019
Slide 1: First Quarter Financial Results Presentation
1 Quarter st Financial Results Presentation April 30, 2019
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: Highlights & First Quarter Results
Highlights & First Quarter Results • Net Revenue of $770 million, up 3% Y/Y. • Bank Net Interest Margin of 3.17%, up 28 basis points sequentially • Record Net Interest Income of $142 million, up 27% Y/Y. • Non-GAAP Pre-tax Margin of 19%, up 170 bps Y/Y • Record Global Wealth Management Net Revenue o
Slide 4: Segment Results
Segment Results 3
Slide 5: Global Wealth Management Pre-tax Contribution
Global Wealth Management Y/Y Sequential millions 1Q19 Change Change Global Wealth Management Revenue Commissions $110 -8% -6% Principal Transactions $43 -1% 7% Brokerage $153 -6% -3% Asset Management & Service Fees $195 0% -7% Net Interest $145 23% 10% Investment Banking $8 7% 4% Other $9 851% 455%
Slide 6: Institutional Group
Institutional Group Institutional Group Net Revenue Y/Y Sequential $350 millions 1Q19 Change Change GAAP Net Revenue (mil.) $300 Ins titutional Revenue $250 Adv iso ry $105 7% -6% $200 $150 Equity $100 Underwriting $28 -47% -46% $50 Brokerage $39 -19% -20% $0 1Q18 2Q18 3Q18 4Q18 1Q19 Total Equity Ne
Slide 7: Balance Sheet, Net Interest Income, & Expenses
Balance Sheet, Net Interest Income, & Expenses 6
Slide 8: Balance Sheet
Balance Sheet ` 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 1Q19 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% 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% Risk Weighting Assets Density 64.9% 56.2%
Slide 9: Net Interest Income
Net Interest Income Average Yields on Balance Sheet Net Interest Income Growth 1Q19 1Q18 Change 4Q18 %Change $160 $142 Assets: $140 $127 $117 $121 Bank loans 4.15% 3.50% 65 bps 4.11% 4 bps Net Interest Income (mil.) $120 $111 $100 Commercial 4.78% 4.32% 46 bps 4.79% -1 bps $80 Securities based 4.25%
Slide 10: Stifel Bancorp, Inc.
Stifel Bancorp, Inc. % % (mil. except for %'s) 1Q19 1Q18 Change 4Q18 Change Assets: Mortgage Loans 2,928 2,634 11% 2,875 2% Commercial Loans 3,315 2,554 30% 3,304 0% Securities Based Loans 1,861 1,809 3% 1,787 4% Commercial Real Estate 362 102 256% 320 13% Loans Held for Sale 144 261 -45% 206 -30% T
Slide 11: Expenses
Expenses Compensation Ratio Non-GAAP Expenses & Thr ee Months Ended 60.5% 61.0% Pr e-tax Income % % 60.0% 59.0% 59.0% 59.0% 1Q19 1Q18 Change 4Q18 Change 58.0% (millions) 57.0% 56.5% 56.0% 56.0% Compensation $454 $454 0% $444 -2%/ 55.0% 54.0% Non-compensation $170 $167 2% $175 -3%/ 53.0% 1Q18 2Q18 3Q
Slide 12: Stifel
STIFEL n
Slide 13: Appendix
Appendix STIFEL
Slide 14: Brokerage Revenue and Asset Management & Service Fees
Brokerage Revenue and Asset Management & Service Fees Brokerage Revenue Three Months Ended (000s) 1Q19 1Q18 % Change 4Q18 % Change Global Wealth Management brokerage revenue $153,194 $162,734 -6% $157,331 -3% Institutional brokerage: Equity Capital Markets 38,881 48,085 -19% 48,705 -20% Fixed Income
Slide 15: Investment Banking Revenue
Investment Banking Revenue Investment banking: Three Months Ended (000s) 1Q19 1Q18 % Change 4Q18 % Change Capital raising: Global Wealth Management revenue $8,223 $7,688 7% $7,915 4% Equity Capital Markets 27,859 52,707 -47% 51,839 -46% Fixed Income Capital Markets 20,863 18,294 14% 30,390 -31% Tota