Stifel Financial Corporation · NYSE:SF
Stifel Financial — KBW Winter Financial Services Symposium 2019
42 slides from Stifel Financial's conference presentation, Feb 13, 2019
Slide 1: Investor Presentation KBW Winter Financial Services Symposium
Investor Presentation KBW Winter Financial Services Symposium February 14-15, 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 2,301 financial advisors in 369 branches with than $239B in client assets Asset Management $30B in total assets managed through various strategies Bank $17.8B in as
Slide 5: A History of Growth
A History of Growth 2005 Legg Mason’s Capital Markets Division 2008 Butler Wick 2009 56 UBS Private Client Branches 2010 Thomas Weisel Partners 2007 Ryan Beck Acquisition Stifel Bank & Trust 2011 Stone & Youngberg 2012 Miller Buckfire 2013 Knight Capital Group’s Fixed Income Division 2014 De La Rosa
Slide 6: Substantial Performance Improvement in 2018
Substantial Performance Improvement in 2018
Slide 7: Driving Shareholder Value Through Deal Integration & Balance Sheet Growth
Driving Shareholder Value Through Deal Integration & Balance Sheet Growth
Slide 8: Infrastructure Build and Balance Sheet Growth
42% CAGR 27% CAGR Infrastructure Build Balance Sheet Growth
Slide 9: 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 10: Stifel Overview
Stifel Overview STIFEL 10
Slide 11: 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 - $1.1 billion Private Client Stifel Bank & Trust Margin and Securities-based L
Slide 12: Leading broker-dealer providing wealth management and institutional services
Leading broker-dealer providing wealth management and institutional services to consumers and companies Bulge Bracket Boutique Size / scale Large distribution Trading Retail Issues Lack of focus Banker turnover Lack of commitment Research indifference Lack of growth investors Firm focus Good researc
Slide 13: Well-diversified, Low Risk Business Model
Well-diversified, Low Risk Business Model with Balanced Retail and Institutional Exposure Unburdened by capital constraints Low leverage business model and conservative risk management Limited balance sheet risk Stable wealth management business is augmented by profitable and growing institutional b
Slide 14: A Stable Track Record Through Multiple Business Cycles
A Stable Track Record Through Multiple Business Cycles Non-GAAP Net Revenues ($MM) Total Equity ($MM) Total Client Assets(1) ($BN) Book Value Per Share(2) Excludes impact of sale of Sterne Agee Independent Contractor & Correspondent Clearing businesses Book Value Per Share adjusted for April 2011 th
Slide 15: Global Wealth Management
Global Wealth Management STIFEL
Slide 16: 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 2,301 financial advisors currently Proven organic growth and acquirer of private client business Strategy of recruiting experienced
Slide 17: Building Scale and Capabilities into a $2.0B Revenue Segment
Building Scale and Capabilities into a $2.0B Revenue Segment Private Client Asset Management Bank 56 UBS Branches Private Client – 75 financial advisors Public Finance December 2008 Private Client – 400 financial advisors Capital Markets February 2007 Asset Management Over $4 billion in assets Novem
Slide 18: GWM - Private Client Group Key Operating Metrics
GWM - Private Client Group Key Operating Metrics Accounts(1) Financial Advisors(1) Total Client Assets(1) ($MM) Branches(1) Excludes Legacy Sterne Agee Independent Contractor Business. * 2018 Financial Advisors, Branches, Accounts, and Total Client Assets are as of 12/31/2018
Slide 19: 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 20: Growing Asset Management Capabilities
Growing Asset Management Capabilities Asset Management Subsidiaries with Over $30 Billion in Client Assets As of December 31, 2018. Ziegler Capital Management, LLC, 1919 Investment Counsel, LLC, Choice Financial Partners, Inc. d/b/a EquityCompass Strategies, and Washington Crossing Advisors, LLC are
Slide 21: Institutional Group
Institutional Group STIFEL 2
Slide 22: Institutional Group Overview and Net Revenues
Institutional Group Net Revenues ($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 23: Building Scale and Capabilities into a $1.0B Revenue Segment
Equities Fixed Income Investment Banking Building Scale and Capabilities into a $1.0B Revenue Segment Growth Focused Investment Banking, Research, Sales and Trading July 2010 Core of our Institutional sales, trading and research group December 2005 Fixed Income IB, Sales and Trading, Private Client
Slide 24: 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 1/31/19. Note: Includes all sell-side and buy-side strategic or
Slide 25: 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 26: 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 27: 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 28: Institutional Group – Fixed Income Capital Markets
Institutional Group – Fixed Income Capital Markets Strong Fixed Income Brokerage Capabilities Overview Client Distribution (1)(2) Platform & Products Comprehensive platform 85 traders with annual client trade volume approaching $500 billion 40-person Fixed Income Research and Strategy Group Widespre
Slide 29: 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 on in every 10 transactions in the country were priced on a Stifel desk in 2018. Stifel’s K-1
Slide 30: Fourth Quarter & 2018 Results 2019 Outlook
Fourth Quarter & 2018 Results 2019 Outlook
Slide 31: Fourth Quarter & 2018 Results 2019 Outlook
Fourth Quarter & 2018 Results 2019 Outlook * All dollar amounts and ratios are non-GAAP * * 4Q18 & annual Non-Compensation ranges exclude loan loss provision expense and investment banking gross ups.
Slide 32: Highlights & Full Year Results
Highlights & Full Year Results 23rd Consecutive Year of Record Net Revenue of $3.025 billion, up 3% Record GAAP EPS of $4.73, up 121% Record Non-GAAP EPS of $5.28, up 32% Record Asset Management & Services Fees of $806 million, up 15% Record Net Interest Income of $476 million, up 24% Non-GAAP Comp.
Slide 33: Highlights & Fourth Quarter Results
Highlights & Fourth Quarter Results Non-GAAP Net Revenue of $794 million, up 7% Q/Q. Record Asset Management & Services Fees of $210 million, up 13% Y/Y. Record Net Interest Income of $127 million, up 19% Y/Y. Second Strongest Investment Banking Quarter at $201 million Record Non-GAAP Net Income Ava
Slide 34: Segment Results
Segment Results STIFEL a
Slide 35: Global Wealth Management
Global Wealth Management GWM Net Revenue WATT VAT $500 mins 4a18 Change Change 2018 Change $400 [ciobal Wealth Management Revenue onrissons siz mt | sar2 1% PincpalWansacions so 11% 2m | S166 11% Brokerage sis7 4% 1% | $638 4% Asset Manageent& Senice Fees soto 13% «= 5% | $008 15% Net interest 312 1
Slide 36: Institutional Group
Institutional Group WY Sequer MY 4Q18 Change Change 2018 Change Equity nayctavatasniomne «soe ak «wm | se se income vty sae aoe | su tem ieteeg so am am | so ame jomiboorecxitiintesttsowme $70 am aim | amram ti git $287 14% 17% ($1,056 5% 25% Contribution $80 lcomp. Ratio 62.0% 230bps 260bps | 60.0%
Slide 37: Revenue & Expenses
Revenue & Expenses STIFEL
Slide 38: 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 39: Investment Banking Revenue
Investment Banking Revenue Investment banking: ‘Three Months Ended YD (000s) 4018 4Q17 —%Change 3Q18 —%Change} 2018 2017 _% Chango Copital raising: Gobal Wealth Management revenue $7915 $8899 11% == $7,722 3%|| $31293 $40,466 23% Equity Capital Markets 51839 57800 10% © 65000» -20%|| 213633182728 17
Slide 40: 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 41: Stifel Bancorp, Inc
Stifel Bancorp, Inc 4018 4Q17_— Change Mortgage Loans 2875 2594] 11% | 2792] 3% Commercial Loans 3304 ©2438 | 36% | 3,127! 6% ‘Securities Based Loans 17e7 1819] 2% | 1836] 3% Commercial Real Estate 319 116 | 175% 329| 3% LoansHeld for Sale 206 226 | 9% 262| 21% Total Loans, net $8,723 $7,174 | 22% |
Slide 42: Expenses
Expenses * For reconciliation of GAAP to non-GAAP expenses, refer to our fourth quarter 2018 earnings release.
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