Stifel Financial Corporation · NYSE:SF
Stifel Financial — Q2 2009 Earnings Presentation
25 slides from Stifel Financial's earnings presentation, Aug 10, 2009
Slide 1: Stifel Financial 2nd Quarter 2009 Earnings Conference Call
STIFEL FINANCIAL 2nd Quarter 2009 Fiscal Year Earnings Conference Call August 10, 2009
Slide 2: Forward-Looking Statements
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 future business
Slide 3: 2nd Quarter 2009 Highlights
nd 2 Quarter 2009 Highlights Record net revenues of $261.5 million, a 25% increase from the 2nd Quarter (2Q) 2008. The Private Client Group (PCG) segment recorded record net revenues of $131.2 million, an 8% increase from the 2Q08. The Capital Markets (CM) segment recorded record net revenues of $12
Slide 4: YTD 2009 Highlights
YTD 2009 Highlights Record net revenues of $481.5 million, a 15% increase from first half of fiscal 2008 (6m08). The PCG segment recorded record net revenues of $241.7 million, a 3% increase from 6m08. The CM segment recorded record net revenues of $230.6 million, a 31% increase over 6m08. Net incom
Slide 5: Growth
Growth Total As of % YTD Business Units 2004 6/30/2009 Change Additions Firm Net Revenues (millions) . . . . . . . . . . . . . . . . . . . . . . . . $247 . . . . . . . . . . . $963 * 290% Equity Capital (millions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . $131 ....... $703 435% Share P
Slide 6: ACAT Fee Reimbursement
ACAT Fee Reimbursement 2009 2008 Reimbursed Reimbursed Qtr No. ACAT Fees No. ACAT Fees Q1 15,857 ($1,384,000) 4,872 ($406,000) Q2 39,151 (3,657,000) 7,708 (653,000) Total 55,008 ($5,041,000) 12,580 ($1,059,000) Page 5
Slide 7: Income Statements
Stifel Financial Corp. Income Statements Quarters Ended Change YTD Change ($ in thousands) 06/30/09 06/30/08 $ % 06/30/09 06/30/08 $ % Net Revenues $ 261,505 $ 208,951 $ 52,554 25% $ 481,486 $ 420,428 $ 61,058 15% Compensation and Benefits 175,881 144,795 31,086 21% 323,721 290,825 32,896 11% Non-Co
Slide 8: Normalized Pro Forma
Normalized Pro Forma Six Months ended June 30, 2009 Pre-Tax Net Operating % of ($ in thousands) Revenues Contributions Net Rev As Reported $ 481,486 $ 48,264 10% Pro Forma Adjustments Private Client Group (PCG) PCG established business 22,207 9,929 PCG new business (29,445) 6,110 Bank excess liquidi
Slide 9: Source of Revenues
Source of Revenues Quarters Ended Change YTD Change % of Net % of Net % of Net % of Net ($ in thousands) Revenues Revenues Revenues Revenues 6/30/2009 6/30/2008 $ % 6/30/2009 6/30/2008 $ % Revenues Commissions $ 80,721 30.9% $ 83,063 39.8% $ (2,342) (3%) $ 155,331 32.3% $ 168,764 40.1% $(13,433) (8%
Slide 10: Principal Transactions
Principal Transactions Quarters Ended Change YTD Change ($ in thousands) 6/30/2009 6/30/2008 $ % 6/30/2009 6/30/2008 $ % Principal transactions Taxable Debt $ 84,829 $ 36,986 $ 47,843 129% $ 149,985 $ 85,498 $ 64,487 75% Muni Debt 15,462 10,431 5,031 48% 31,917 20,402 11,515 56% Equities 12,360 11,6
Slide 11: Income Statements Non-Interest Expenses
Stifel Income Statements Non-Interest Expenses Quarters Ended Change YTD Change % of Net % of Net % of Net % of Net ($ in thousands) Revenues Revenues Revenues Revenues 6/30/2009 6/30/2008 $ % 6/30/2009 6/30/2008 $ % Net Revenues 261,505 100% 208,951 100% 52,554 25% 481,486 100% 420,428 100% 61,058
Slide 12: Segment Comparison
Segment Comparison ($ in thousands) Quarters Ended Change YTD Change Net Revenues 06/30/09 06/30/08 $ % 06/30/09 06/30/08 $ % Private Client $ 131,164 $ 120,999 $ 10,165 8% $ 241,688 $ 235,852 $ 5,836 2% Capital Markets 125,136 82,720 42,416 51% 230,608 175,950 54,658 31% Banking 4,146 3,237 909 28%
Slide 13: YTD Segment Comparison (Excludes Acquisitions)
YTD Segment Comparison (Excludes Acquisitions) Balanced business model facilitates growth during volatile markets Stable PCG business is augmented by profitable and growing Capital Markets. Revenue Operating Profit Bank Bank Bank Bank 1.6% 1.3% 3% 0.8% Cap PCG Cap Cap PCG Mkts Mkts PCG 37% Mkts 50%
Slide 14: Private Client Group
Private Client Group Income Statements Quarters Ended Change YTD Change ($ in thousands) 6/30/09 6/30/08 $ % 6/30/09 6/30/08 $ % Net Revenues $ 131,164 $ 120,999 $ 10,165 8% $ 241,688 $ 235,852 $ 5,836 2% Compensation and Benefits 83,208 72,691 10,517 14% 155,426 145,536 9,890 7% Non-Comp Operating
Slide 15: Capital Markets
Capital Markets Income Statement Quarters Ended Change YTD Change ($ in thousands) 6/30/09 6/30/09 $ % 6/30/09 6/30/09 $ % Net Revenues $ 125,136 $ 82,720 $ 42,416 51% $ 230,608 $ 175,950 $ 54,658 31% Compensation and Benefits 74,250 52,615 21,635 41% 136,768 109,845 26,923 25% Non-Comp Operating Ex
Slide 16: Capital Markets Revenues
Capital Markets Revenues Quarters Ended Change YTD Change ($ in thousands) 6/30/09 6/30/08 $ % 6/30/09 6/30/08 $ % ECM Flow Business $ 38,078 $ 35,879 $ 2,199 6% $ 74,865 $ 70,533 $ 4,332 6% FICM Flow Business 63,054 31,318 31,736 101% 116,502 71,349 45,153 63% Total Flow Business 101,132 67,197 33,
Slide 17: Stifel Bank & Trust Income Statements
Stifel Bank & Trust Income Statements Quarters Ended Change YTD Change ($ in thousands) 6/30/09 6/30/08 $ % 6/30/09 6/30/08 $ % Net Revenues Interest $ 3,778 $ 3,811 $ (33) (1%) $ 7,434 $ 7,362 $ 72 1% Other Revenues 1,376 862 514 60% 2,046 1,109 937 84% Total Revenues 5,154 4,673 481 10% 9,480 8,47
Slide 18: Stifel Bank & Trust Balance Sheet
Stifel Bank & Trust Balance Sheet Investment portfolio grew $74 million from 3/31/09 to total $133 million as of 6/30/09 • Purchases since quarter-end added an additional $85 million, increasing the portfolio to $219 million • The $159 million in purchases represent more than a 300 basis increase in
Slide 19: Other Segment Analysis
Other Segment Analysis Quarters Ended Change YTD Change ($ in thousands) 06/30/09 06/30/08 $ % 06/30/09 06/30/08 $ % Net Revenue 1,059 1,995 (936) (47%) 1,404 3,307 (1,903) (58%) Compensation and Benefits 17,802 12,144 5,658 47% 30,495 21,043 9,452 45% Occupancy and Equipment 5,355 3,744 1,611 43% 9
Slide 20: Stifel Financial Balance Sheet Graphs
Stifel Financial Balance Sheet Graphs $785 $2,288 $2,400 $800 $677 $83 $1,800 $1,499 $1,562 $600 $520 $83 $95 $1,085 $703 $1,200 $400 $290 $595 $842 $225 $166 $425 $600 $423 $412 $382 $200 $115 $135 $70 $70 $35 $220 $35 $35 $131 $155 $80 $100 $0 $0 2002 2003 2004 2005 2006 2007 2008 Q2 2009 2002 200
Slide 21: Capital Structure
Capital Structure ($ in thousands) Total Assets $ 2,287,992 Stockholders' Equity $ 702,702 Debentures to: Stifel Financial Capital Trust II - LIBOR plus 1.70% (fixed at 6.38% until 9/30/10), due 9/30/35 $ 35,000 Stifel Financial Capital Trust III - LIBOR plus 1.85% (fixed at 6.79% until 6/6/12), due
Slide 22: Level 3 Assets
Level 3 Assets Carrying Value Change ($ in thousands) 6/30/09 12/31/08 Auction Rate Securities $ 57,078 $ 18,509 $ 38,569 Stifel Bank & Trust Investments 7,858 10,423 (2,565) Trading Securities 1,096 4,161 (3,065) Other Investments 4,829 5,169 (340) $ 70,861 $ 38,262 $ 32,599 Percentage of Equity 10
Slide 23: Other Financial Data
Other Financial Data Quarterly Data % Change vs vs Other Data 6/30/2009 3/31/2009 6/30/2008 Q1 2009 Q2 2008 Bank Assets $ 539,703 $ 529,953 $ 301,511 2% 79% SN & SF Assets 1,748,289 1,484,745 1,384,327 18% 26% Total Assets (000's) $ 2,287,992 $ 2,014,698 $ 1,685,838 14% 36% Stockholders Equity (000'
Slide 24: Stifel Outlook
Stifel Outlook Unstable conditions in the Private Client market presents opportunity for Stifel to continue to grow organically and through M&A The uncertainty surrounding the largest domestic and European private client platforms impacts thousands of US-based Financial Advisors. Success with UBS si
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