Stifel Financial Corporation · NYSE:SF
Stifel Financial — Investor Presentation (May 2019)
39 slides from Stifel Financial's investor presentation, May 15, 2019
Slide 1: Investor Presentation May 2019
Investor Presentation May 2019 Exhibit 99.1
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: Our Strategy
Our Strategy STIFEL
Slide 4: Strategic Vision
Strategic Vision To build a premier wealth management and investment banking firm Global Wealth Management Institutional Private Client 2,160 financial advisors* in 371 branches with $260B in client assets Asset Management $33B in total assets managed through various strategies Bank $16.8B in assets
Slide 5: A History of Organic Growth & Acquisitions
A History of Organic Growth & Acquisitions 19% CAGR 2005 Legg Mason’s Capital Markets Division 2007 Ryan Beck Acquisition Stifel Bank & Trust 2008 Butler Wick 2009 56 UBS Private Client Branches 2010 Thomas Weisel Partners 2011 Stone & Youngberg 2012 Miller Buckfire 2013 Keefe, Bruyette & Woods Knig
Slide 6: Substantial Performance Improvement in 2018
Substantial Performance Improvement in 2018
Slide 7: Stifel Overview
Stifel Overview STIFEL
Slide 8: Stifel – Premier Investment Bank and Wealth Management Firm
Stifel – Premier Investment Bank and Wealth Management Firm Stifel at a Glance 2018 GAAP Net Revenue - $3.0 billion Global Wealth Management (GWM) 2018 Net Revenue - $2.0 billion Institutional Group (IG) 2018 Net Revenue - $1.1 billion Private Client Stifel Bancorp Margin and Securities-based Lendin
Slide 9: Leading broker-dealer providing wealth management and institutional services
Leading broker-dealer providing wealth management and institutional services to consumers and companies Bulge Bracket Boutique Size / scale Large distribution Trading Retail Issues Lack of focus Banker turnover Lack of commitment Research indifference Lack of growth investors Firm focus Good researc
Slide 10: Well-diversified, Low Risk Business Model
Well-diversified, Low Risk Business Model with Balanced Retail and Institutional Exposure Unburdened by capital constraints Low leverage business model and conservative risk management Limited balance sheet risk Stable wealth management business is augmented by profitable and growing institutional b
Slide 11: A Stable Track Record Through Multiple Business Cycles
A Stable Track Record Through Multiple Business Cycles Non-GAAP Net Revenues(1)(2) ($MM) Total Equity(1) ($MM) Total Client Assets(1)(3) ($BN) Book Value Per Share(1)(3)(4) 2019 Non-GAAP Net Revenue, Total Equity, Total Client Assets, and Book Value Per Share are as of 3/31/2019 2019 full year non-G
Slide 12: Balance Sheet Growth
Balance Sheet Growth $25,000 $20,000 $15,000 $10,000 Taal Assets in lions $5,000 Tier Leverage Tier Risk Based Capital Fisk Weighting AssetsDensity $24,520 $24,184 $19,128 $13,326 ‘$0,009 82.58 $3,167 $1,558 2008 2009 2010 2011 2013 2014 2015 08 14 323% 30.5% 256% 214% 17.7% 154% 16.5% 16.6% 9. 49.4
Slide 13: Bank Drove Significant Balance Sheet & Revenue Growth
Bank Drove Significant Balance Sheet & Revenue Growth Bank growth has been balanced between loans and investments: Loans: Comprised of securities based loans, C&I, and residential mortgages Focused lending to high net worth retail clients AFS & HTM Investments: Portfolio primarily GSE MBS, ABS, and
Slide 14: Global Wealth Management
Global Wealth Management SFE
Slide 15: Global Wealth Management (GWM) Overview
Global Wealth Management (GWM) Provides Securities Brokerage Services and Stifel Bank Products Overview National Presence Grown from 600+ financial advisors in 2005 to 2,160 financial advisors currently Proven organic growth and acquirer of private client business Strategy of recruiting experienced
Slide 16: Building Scale and Capabilities into a $2 Billion Revenue Segment
Building Scale and Capabilities into a $2Billion Revenue Segment 56 UBS Branches Private Client – 350 financial advisors and support Revenue production has exceeded expectations October 2009 Private Client – 75 financial advisors Public Finance December 2008 Private Client – 400 financial advisors C
Slide 17: GWM - Private Client Group Key Operating Metrics
GWM - Private Client Group Key Operating Metrics Accounts(1)(2) Financial Advisors(1)(2)(3) Total Client Assets(1)(2) ($MM) Branches(1)(2) 2019 Financial Advisors, Branches, Accounts, and Total Client Assets are as of 3/31/2019 Excludes Legacy Sterne Agee Independent Contractor Business. 2018 & 2019
Slide 18: GWM – Stifel Bancorp, Inc.
GWM – Stifel Bancorp, Inc. Acquired FirstService Bank, a St. Louis-based, Missouri-chartered commercial bank, in April 2007 Stifel Financial became a bank holding company and financial services holding company Substantial Balance sheet growth with low-risk assets Funded by Stifel Nicolaus client dep
Slide 19: Growing Asset Management Capabilities
Growing Asset Management Capabilities Asset Management Subsidiaries with Nearly $33 Billion in Client Assets As of March 31, 2019. Ziegler Capital Management, LLC, 1919 Investment Counsel, LLC, EquityCompass Investment Management LLC, and Washington Crossing Advisors, LLC are wholly-owned subsidiari
Slide 20: Institutional Group
Institutional Group STIFEL 20
Slide 21: Institutional Group Overview
Institutional Group Net Revenues ($MM)(2)(3)(4) Fixed Income Brokerage + Investment Banking (4) Overview Equity Brokerage + Investment Banking (4) Provides securities brokerage, trading, research, underwriting and corporate advisory services Largest provider of U.S. Equity Research 3rd largest Equit
Slide 22: Building Scale and Capabilities into a $1 Billion Revenue Segment
Equities Fixed Income Investment Banking Building Scale and Capabilities into a $1Billion Revenue Segment Growth Focused Investment Banking, Research, Sales and Trading July 2010 Core of our Institutional sales, trading and research group December 2005 Knight Fixed Income IB, Sales and Trading, Priv
Slide 23: Institutional Group – Advisory
Institutional Group – Advisory 2010-2019 YTD: Leadership in M&A of Public Companies and deals < $1bn. Public Deals < $1 Billion in Value All Deals < $1 Billion in Value All Firms Middle Market Firms Source: Dealogics M&A Analytics as of 4/30/19. Note: Includes all sell-side and buy-side strategic or
Slide 24: Institutional Group – Equity Underwriting
Institutional Group – Equity Underwriting Accomplished U.S. Equity Underwriting Franchise – All Equity Transactions Bookrun Equity Deals Since 2010 All Managed Equity Deals Since 2010 Source: Dealogic. Rank eligible SEC registered IPOs and Follow-On offerings since 2010. Includes demutualizations. A
Slide 25: Institutional Group – Research
Institutional Group – Research Largest U.S. Equity Research Platform U.S. Equity Research Coverage (1)(2) Coverage Balanced Across All Market Caps (1) Stifel Research Highlights Largest provider of U.S. Small & Mid-cap Equity Research² #1 U.S. provider of Financial Services coverage Ranked #3 out of
Slide 26: Institutional Group – Equity Sales and Trading
Institutional Group – Equity Sales and Trading Powerful Platform Spanning North America and Europe Institutional Equity Sales Equity Trading Extensive Distribution Network Relationships with over 3,500 institutional accounts globally Active daily market maker in over 4,000 stocks Traded over 7.3 bil
Slide 27: Institutional Group – Fixed Income Capital Markets
Institutional Group – Fixed Income Capital Markets Strong Fixed Income Brokerage Capabilities Institutional Fixed Income Sales Institutional Fixed Income Trading Platform & Products Comprehensive platform 85 traders with annual client trade volume approaching $500 billion 40-person Fixed Income Rese
Slide 28: Institutional Group – Public Finance
Institutional Group – Public Finance Overview Stifel Public Finance has ranked #1 nationally in senior managed, negotiated municipal issues for each of the past five years, including again in2018. More than one in every 10 transactions in the country were priced on a Stifel desk in 2018. Stifel’s K-
Slide 29: First Quarter 2019 Results
First Quarter 2019 Results SFE 2»
Slide 30: Highlights & First Quarter Results
Highlights & First Quarter Results Net Revenue of $770 million, up 3% Y/Y. Record Net Interest Income of $142 million, up 27% Y/Y. Record Global Wealth Management Net Revenue of $511 million, up 5% Y/Y. Record Global Wealth Management Pre-Tax Margin of 38.1% Bank Net Interest Margin of 3.17%, up 28
Slide 31: Segment Results
Segment Results STIFEL 31
Slide 32: Global Wealth Management
Global Wealth Management GWM Net Revenue $600 > tat | Sep Bn | Commissions si0 8% 8% Exo | Fingal Yansactions some a Brokeraoe 513 5% 3% 35 | set Nanagament& Senice Fees 5195 0% -% 0 | Net terest S145 23% 10% ae 2s. acts. ata. tang ne ee aie Sveateogneticenimee Sherine other 59 851% 485% eer mecmere
Slide 33: Institutional Group
Institutional Group Institutional Group NetRe venue MY Sequential 5350 119 Change Change = $300 = Institutional Revenue 9 $250 sou ivisory $105 Te 6% & s1s0 Equity ao Underwriting $2 -AT% = 48% & a BEER HE Brokerage $39 19% = 20% sow = 2a sae amas ms {Total Equity Net Revenue $67 34% 3% WAcvisory Fe
Slide 34: Revenue & Expenses
Revenue & Expenses STIFEL
Slide 35: Brokerage Revenue and Asset Management & Service Fees
Brokerage Revenue and Asset Management & Service Fees * Sum of Global Wealth Management Brokerage Revenue and Asset Management & Service Fees
Slide 36: Investment Banking Revenue
Investment Banking Revenue Investment banking: Three Months Ended (000s) 1019 118 %Change 4018 —% Change Capital raising Gobal Wealth Management revenue $8223 $7,688 1% $7,915 49% Equity Capital Markets 27859 «82,707 = 47% «= 51839 46% Fixed Income Capital Markets 20863 18294 «= 14% «= 30,300 31% FT
Slide 37: Net Interest Income
Net Interest Income *Yields for Average Assets & Liabilities include the impact of Financial Instruments Owned, Stock Loan, Stifel Capital Trusts, Cash and Other. **Net interest margin in historical periods reflect impact of reverse repos
Slide 38: Stifel Bancorp
Stifel Bancorp, Mortgage Backed Securties 1483 1697] 13%] 1551] 4% Corporates 947 1280) 26% 931] 2% 60 69] 13% 68 | -12% Totd Other Securities, 2490 3046 | 18% | 2.550] 2% Total Imestments $7,098 $7459 | 5% | $7280 | -3% Tot Aasets $16,803 $15,155 | 11% |$17.819 | -6% Liabilities: ots $15,050 $13,33
Slide 39: Expenses
Expenses * For reconciliation of GAAP to non-GAAP expenses, refer to our first quarter 2019 earnings release.