Stifel Financial Corporation · NYSE:SF

Stifel Financial — Q3 2019 Earnings Presentation

16 slides from Stifel Financial's earnings presentation, Oct 30, 2019

  1. Slide 1: 3rd Quarter Financial Results Presentation

    3rd Quarter Financial Results Presentation October 30, 2019

  2. 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

  3. Slide 3: Highlights & Third Quarter Results

    Highlights & Third Quarter Results • Record Net Revenue of $822 million, up 11% Y/Y. • Record Fee-Based Assets of $108 billion, up 13% Y/Y • Record Global Wealth Management Net Revenue of $535 million, up • Non-GAAP Pre-tax Margin of 20.2%, up 40 bps Q/Q 7% Y/Y. • Non-GAAP ROCE of 14.8% & Non-GAAP R

  4. Slide 4: Brokerage Revenue and Asset Management & Service Fees

    Brokerage Revenue and Asset Management & Service Fees Brokerage Revenue Three Months Ended YTD (000s) 3Q19 3Q18 % Change 2Q19 % Change 2019 2018 % Change Global Wealth Management brokerage revenue $160,117 $158,818 1% $162,388 -1% $475,699 $480,842 -1% Institutional brokerage: Equity Capital Markets

  5. Slide 5: Investment Banking Revenue

    Investment Banking Revenue Investment banking: Thr ee Months Ended YTD (0 00s) 3Q19 3Q1 8 % Change 2Q19 % Change 2 019 2018 % Change Capital raising: Global Wealth Management revenue $9,855 $7,722 28% $10,559 -7% $28,637 $23,378 22% Equity Capital Markets 53,006 65,000 -19% 59,156 -10% 140,021 161,7

  6. Slide 6: Global Wealth Management

    Global Wealth Management Y/Y Sequenti al YTD millions 3Q 19 Change Change 2019 Change Global Weal th Manage ment Revenue Commissions $118 0% -2% $348 -2% Principal Transactions $42 3% 0% $127 1% Brokerage $160 1% -1% $476 -1% Asset Management & Service Fees $218 8% 3% $624 5% Net Interest $138 8% 0%

  7. Slide 7: Institutional Group

    Institutional Group Institutional Group Net Revenue Y/Y Sequen tial YTD $350 millions 3Q19 Chan ge Chan ge 2019 Chan ge $300 In s titution al Reven ue GAAP Net Revenue (mil.) $250 Adv isory $105 39% 27% $293 12% $200 Equity $150 $100 Underwriting $53 -19% -10% $140 -14% $50 Brokerage $41 -7% 1% $121

  8. Slide 8: Acquisitions

    Acquisitions 56 UBS Branches Private Client Renamed Stifel Bank & Group Trust 2000 2005 2006 2007 2007 2008 2009 Institutional Fixed Missouri Valley Income Sales & Trading Partners 2010 2010 2011 2012 2013 2013 2013 Wealth and Investment Management, Americas Renamed 1919 Investment Counsel 2013 2014

  9. Slide 9: Net Interest Income, Balance Sheet, & Expenses

    Net Interest Income, Balance Sheet, & Expenses 8

  10. Slide 10: Net Interest Income

    Net Interest Income Average Yields on Balance Sheet Net Interest Income Growth 3Q19 3Q18 Change 2Q19 %Change $160 $142 $135 $135 Assets: $140 $127 $121 Bank loans 4.09% 3.88% 21 bps 4.21% -12 bps Net Interest Income (mil.) $120 $100 Commercial 4.77% 4.62% 15 bps 4.95% -18 bps $80 Securities based 4.

  11. Slide 11: Balance Sheet

    Balance Sheet ` 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 1Q19 2Q19 3Q19 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% 10.0% 10.0% 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% 18.0% 18.1% Risk We

  12. Slide 12: Stifel Bancorp, Inc.

    Stifel Bancorp, Inc. % % (mil. except for %'s) 3Q19 3Q18 Change 2Q19 Change Assets: Mortgage Loans 3,043 2,792 9% 2,985 2% Commercial Loans 3,316 3,127 6% 3,338 -1% Securities Based Loans 1,986 1,836 8% 1,963 1% Commercial Real Estate 388 329 18% 367 6% Loans Held for Sale 265 262 1% 164 62% Total L

  13. Slide 13: Expenses

    Expenses Non-GAAP Ex penses & Three Months Ended YTD Compensation Ratio Pre-tax Income % % % 60.0% 59.0% 3Q19 3Q18 Change 2Q19 Change 2019 2018 Change 59.0% 57.9% 58.1% (millions) 58.0% Compensation $477 $417 15% $464 3%/ $1,395 $1,309 7% 57.0% 56.5% 56.0% Non-compensation $179 $169 5% $179 0%/ $528

  14. Slide 14: STIFEL

    STIFEL

  15. Slide 15: A Five Year Quarterly Comparison

    A Five Year Quarterly Comparison (000s) 3Q'19 3Q'14 Fluctuation Net Revenues $821,572 $524,725 57% Asset Management 217,628 96,638 125% Net Interest Income 134,640 40,529 232% Advisory 104,847 50,939 106% Brokerage 261,767 260,999 0% Net Income $117,146 $48,698 141% Non-GAAP EPS $ 1.50 $ 0.64 134% D

  16. Slide 16: 15

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