Stifel Financial Corporation · NYSE:SF
Stifel Financial — Q1 2014 Earnings Presentation
18 slides from Stifel Financial's earnings presentation, May 8, 2014
Slide 1: 1st Quarter 2014 Financial Results Presentation
Exhibit 99.2 st 1 Quarter 2014 Financial Results Presentation May 8, 2014
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: Chairman's Comments
Chairman’s Comments “During the first quarter we delivered solid results. Contributions from Global Wealth Management and Institutional Group drove a 25% year-over-year increase in total net revenues. We continue to attract experienced financial advisors, and total client assets reached a record $16
Slide 4: Acquisition of Oriel Securities
Acquisition of Oriel Securities Stifel Europe Oriel Securities Offices in London, Geneva, Madrid and Based in London Zurich Founded in 2002, Employee owned Profitable, well capitalized and poised for 25 analysts covering 250 large, mid and small growth cap stocks across 15 sectors Provide U.S. equit
Slide 5: Financial Results
Financial Results
Slide 6: Stifel Financial Corp. Results
Stifel Financial Corp. Results Three months ended March 31, 2014 Three Months Ended March 31, 2014 Three Months Ended (1) (2) (2) ($ in thousands, except per share amounts) Non-GAAP Non-Core GAAP 3/31/13 % Change 12/31/13 % Change Total revenues $ 557,288 $ (1,910) $ 555,378 $ 449,179 24.1% $ 576,23
Slide 7: Source of Revenues
Source of Revenues Three Months Ended % % ($ in thousands) 3/31/14 3/31/13 Change 12/31/13 Change Commissions $ 159,416 $ 145,867 9.3% $ 152,451 4.6% Principal transactions 126,461 107,264 17.9% 118,815 6.4% Brokerage revenues 285,877 253,131 12.9% 271,266 5.4% Capital raising 73,804 49,849 48.1% 71
Slide 8: Core Non-Interest Expenses
Core Non-Interest Expenses Three months ended March 31, 2014 Three Months Ended % of Net revenues (1) (1) ($ in thousands) 3/31/14 3/31/13 % Change 12/31/13 % Change 3/31/14 3/31/13 12/31/13 Net revenues $ 548,435 $ 438,611 25.0% $ 564,681 (2.9%) 100.0% 100.0% 100.0% Compensation and benefits 321,03
Slide 9: Segment Comparison Core
Segment Comparison Core - Three Months Ended % % ($ in thousands) 3/31/14 3/31/13 Change 12/31/13 Change Net revenues: Global Wealth Management $ 297,183 $ 266,957 11.3% $ 292,836 1.5% Institutional Group 249,977 173,300 44.2% 267,282 (6.5%) Other 1,275 (1,645) (177.5%) 4,563 (72.1%) $ 548,435 $ 438
Slide 10: Global Wealth Management
Global Wealth Management Three Months Ended ($ in thousands) 3/31/14 3/31/13 % Change 12/31/13 % Change Commissions $ 107,739 $ 102,086 5.5% $ 104,149 3.4% Principal transactions 53,766 56,307 (4.5%) 55,809 (3.7%) Asset management & service fees 89,130 68,934 29.3% 82,964 7.4% Net interest 35,262 21
Slide 11: Stifel Bank & Trust
Stifel Bank & Trust (an operating unit of GWM) As of As of 3/31/14 3/31/13 % Change 12/31/13 % Change Assets $ 4,994,215 $ 3,832,281 30.3 $ 5,021,943 (0.6) Investment securities 3,083,902 2,440,146 26.4 3,062,549 0.7 Retained loans, net 1,495,124 886,597 68.6 1,412,136 5.9 Loans held for sale 102,36
Slide 12: Institutional Group
Institutional Group Three Months Ended ($ in thousands) 3/31/14 3/31/13 % Change 12/31/13 % Change Net revenues $ 249,977 $ 173,300 44.2% $ 267,282 (6.5%) Compensation and benefits 154,016 106,821 44.2% 165,779 (7.1%) Non-comp operating expenses 50,339 38,249 31.6% 52,913 (4.9%) Total non-interest e
Slide 13: Institutional Group Revenues
Institutional Group Revenues Three Months Ended ($ in thousands) 3/31/14 3/31/13 % Change 12/31/13 % Change Institutional brokerage: Equity $ 65,768 $ 49,238 33.6% $ 60,204 9.2% Fixed income 58,604 45,500 28.8% 51,103 14.7% 124,372 94,738 31.3% 111,307 11.7% Investment Banking: Capital raising Equit
Slide 14: Financial Condition
Financial Condition
Slide 15: Capital Structure
Capital Structure As of March 31, 2014 (in thousands, except ratios) ($ in thousands) Total Assets $ 9,387,814 Stockholders' Equity $ 2,100,140 6.70% senior notes, due 2022 $ 175,000 5.375% senior notes, due 2022 150,000 Debentures to Stifel Financial Capital Trusts II, III, & IV 82,500 Total Capita
Slide 16: Other Financial Data
Other Financial Data As of As of 3/31/14 3/31/13 % Change 12/31/13 % Change Total assets (000s): Stifel Nicolaus & Stifel Financial $ 4,393,599 $ 4,301,474 2.1% $ 3,986,927 10.2% Stifel Bank 4,994,215 3,832,281 30.3% 5,021,943 (0.6%) Total assets $ 9,387,814 $ 8,133,755 15.4% $ 9,008,870 4.2% Total
Slide 17: Alternatives to Deploy Excess Capital
Alternatives to Deploy Excess Capital With a 26%Tier1 RiskBasedCapitalRatio,Stifelis overcapitalizedrelativeto peers(1): Available Methods 1) Leverage existing capital base by growing assets: Existing Grow Assets Pro Forma SF Total Assets 9,387,815 4,519,527 13,907,342 Risk Weighted Assets 4,886,546
Slide 18: Q&A
Q&A