Stifel Financial Corporation · NYSE:SF
Stifel Financial — Q2 2018 Earnings Presentation
15 slides from Stifel Financial's earnings presentation, Jul 30, 2018
Slide 1: 2nd Quarter Financial Results Presentation
2nd Quarter Financial Results Presentation July 30, 2018
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 & Second Quarter Results
Highlights & Second Quarter Results • Non-GAAP Net Revenue of $743 million, up 2% Y/Y. • GAAP EPS of $1.04, up 65% Y/Y • Record Asset Management & Services Fees of $200 million, up • Non-GAAP ROE of 14.5% & Non-GAAP ROTE of 24% 15% Y/Y. • Bank NIM of 2.97%, 20 bps Y/Y • Record Net Interest Income of
Slide 4: Revenue & Expenses
Revenue & Expenses 3
Slide 5: Brokerage Revenue & Asset Management & Service Fees
Brokerage Revenue & Asset Management & Service Fees Brokerage Revenue Three Months Ended (000s) 2Q18 2Q17 % Change 1Q18 % Change Global Wealth Management brokerage revenue $159,290 $168,085 -5% $162,734 -2% Institutional brokerage: Equity Capital Markets 45,266 50,869 -11% 48,085 -6% Fixed Income Ca
Slide 6: Investment Banking Revenue
Investment Banking Revenue Investment banking: Three Months Ended (000s) 2Q18 2Q17 % Change 1Q18 % Change Capital raising: Global Wealth Management revenue $7,968 $10,641 -25% $7,688 4% Equity Capital Markets 44,087 45,664 -3% 52,707 -16% Fixed Income Capital Markets 22,025 46,495 -53% 18,294 20% To
Slide 7: Net Interest Income
Net Interest Income Average Yields on Balance Sheet Net Interest Income Growth 2Q18 2Q17 % Change 1Q18 % Change $140 $117 Assets: $120 $107 $111 Bank loans 3.63% 3.10% 53 bps 3.50% 13 bps Net Interest Income (mil.) $100 $100 $92 Commercial 4.36% 3.76% 60 bps 4.30% 6 bps $80 Securities based 3.74% 2.
Slide 8: Expenses
Expenses Non-GAAP Expenses & Three Months Ended Compensation Ratio 62.0% Pre-tax Income % % 61.4% 61.5% 61.1% 2Q18 2Q17 Change 1Q18 Change 61.0% 60.5% 60.5% (millions) 60.0% 60.0% 59.5% Compensation $438 $446 -2% $454 -4%/ 59.0% 59.0% 58.5% Non-compensation $167 $162 3% $167 0%/ 58.0% 57.5% Pre-tax
Slide 9: Segment Results
Segment Results 8
Slide 10: Global Wealth Management
Global Wealth Management Y/Y Sequential millions 2Q18 Change Change Global Wealth Management Revenue Commissions $118 -2% -1% Principal Transactions $41 -14% -5% Brokerage $159 -5% -2% Asset Management & Service Fees $200 15% 2% Net Interest $125 31% 6% Investment Banking $8 -24% 5% Other $5 16% 499
Slide 11: Stifel Bank & Trust
Stifel Bank & Trust % % (mil. except for %'s) 2Q18 2Q17 Change 1Q18 Change Assets: CLO $4,957 $3,764 32% $4,503 10% Agency MBS 1,562 1,773 -12% 1,556 0% Corporates 1,269 1,009 26% 1,280 -1% Other 198 206 -4% 200 -1% T otal Investments $7,985 $6,753 18% $7,549 6% Mortgage Loans 2,704 2,249 20% 2,634
Slide 12: Institutional Group
Institutional Group Y/Y S equ en tial Institutional Group Net Revenue millions 2Q18 Change Change $350 Ins t it ut ion al Rev enu e GAAP Net Revenue (mil.) $300 Equit y $250 Advisory $80 -1% -17% $200 Underwriting $44 -4% -16% $150 Brokerage $45 -11% -6% $100 Equity Capital Markets Net Revenue $170
Slide 13: Balance Sheet
Balance Sheet 12
Slide 14: Balance Sheet
Balance Sheet Infrastructure Build ` 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1Q18 2Q18 Tier 1 Leverage 32.3% 30.5% 25.6% 21.4% 17.7% 15.4% 16.5% 16.6% 10.2% 9.5% 9.6% 9.5% 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% 18.7% 18.4% Risk Weighting Asset
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