Stifel Financial Corporation · NYSE:SF
Stifel Financial — Investor Presentation (March 2014)
37 slides from Stifel Financial's investor presentation, Mar 19, 2014
Slide 1: Stifel Investor Presentation
Exhibit 99.1 Stifel Investor Presentation March 2014
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: Market Overview
STIFEL Market Overview
Slide 4: Market Overview: Domestic Equity Flows, Equity Risk Premium
Market Overview Domestic Equity Flows Equity Risk Premium (1) Source: Investment Company Institute. (1) Based on the Daily Treasury Yield Curve Rates, 10 year. 4
Slide 5: Stifel Overview
STIFEL Stifel Overview
Slide 6: Stifel Overview
Stifel Overview Stifel Financial (NYSE: SF) Financial services firm demonstrating growth, scale and stability $3.1 billion market capitalization (1) 2013 Represented Stifel’s 18 th year of consecutive record net revenues Balanced business model Top performing financial stock over the past ten years
Slide 7: Stifel's Market Opportunity
Stifel’s Market Opportunity Stifel’s Differentiated Value Proposition: Growth, Scale, and Stability Bulge Bracket Middle Market Size / scale Size / scale Firm focus Large distribution Firm focus Good research Trading Stability (financial & Growth investor access Retail personnel) Large distribution
Slide 8: Strategy: Building the Premier Investment Bank
Strategy: Building the Premier Investment Bank Positioned to Take Advantage of Opportunities Unburdened by capital constraints Low leverage business model and conservative risk management Built the Company through 13 acquisitions since 2005; prudently evaluate all opportunities Select growth of high
Slide 9: A Growth Story…
A Growth Story… Net Revenues ($MM) Core Net Income ($MM) (1) Total Equity ($MM) CAGR: 23% CAGR: 24% CAGR: 38% (2) Financial Advisors (3) (4) Total Client Assets ($BN) Book Value Per Share CAGR: 25% CAGR: 16% CAGR: 22% CAGR reflects years 2006 to 2013. (1) Years 2012 and 2013 represents non-GAAP net
Slide 10: Building Scale…
Building Scale… Each merger has been accretive to Stifel Retention remains high Asset Management Growth Focused November 2013 Investment Banking Research, Sales and Trading Achieved cost efficiencies July 2010 Clean portfolio of 1-4 family Private Client residential mortgages Revenue production has
Slide 11: Recent Merger Update
Recent Merger Update Announced the acquisition of De La Rosa on January 30, 2014 and is expected to close in the first quarter. Plan to integrate under Stifel brand immediately. Investment bank and bond underwriter with a 25-year operating history. Stifel will become #1 underwriter in California neg
Slide 12: IFR Awards: 2013 US Mid-Market Equity House of the Year
IFR Awards: 2013 US Mid-Market Equity House of the Year IFR Recognizes Stifel’s Leadership Position As The Premier Middle Market Investment Bank “For its leadership among mid-market firms and strong momentum in securing bookrunner roles, Stifel is IFR’s US Mid-Market Equity House of the Year” “Stife
Slide 13: Stability Achieved Through A Balanced Business Model
Stability Achieved Through A Balanced Business Model Balanced business model facilitates growth during volatile markets Stable GWM business is augmented by profitable and growing Institutional Group Proven ability to grow all businesses Net Revenues Operating Contribution 2012 2013 2012 2013 Note: N
Slide 14: Strong Balance Sheet Facilitates Growth
Strong Balance Sheet Facilitates Growth As December 31, 2013 Total Assets ($ in Billions) Total Capitalization ($ in Billions) Leverage Ratio Book Value Per Share (1) (1)Per share information adjusted for April 2011 three-for-two stock split 14
Slide 15: Top Performing Stock
Top Performing Stock Cumulative Price Appreciation As of December 31, 2013 15
Slide 16: Opportunities Drive our Growth
Opportunities Drive our Growth Initiatives Attract and retain high-quality talent Continue to expand our private client footprint in the U.S. Continue to expand investment banking capabilities Focus on quality asset generation within Stifel Bank Expand traditional asset management capabilities Appro
Slide 17: Global Wealth Management
STIFEL Global Wealth Management
Slide 18: Global Wealth Management
Global Wealth Management Provides Securities Brokerage Services and Stifel Bank Products Overview Grown from 600+ financial advisors in 2005 to over 2,000(1) financial advisors currently Proven organic growth and acquirer of private client business (56 UBS branches, Butler Wick, Ryan Beck) Retail in
Slide 19: Global Wealth Management: Opportunity Through Growth
Global Wealth Management Opportunity Through Growth GWM Broker Growth (1) GWM Branch Growth GWM Account Growth GWM Assets Under Management Growth ($MM) (2) (1) Includes Independent Contractors. (2) Client assets include FDIC-insured products as of 12/31/13 for years 2008-2013. 19
Slide 20: Global Wealth Management – Stifel Bank & Trust
Global Wealth Management – Stifel Bank & Trust Overview Strength of Brokerage Position Acquired FirstService Bank, a St. Louis-based, Offers banking products (securities based loans and Missouri-chartered commercial bank, in April 2007 mortgage loans) within the GWM client base, including establishi
Slide 21: Institutional Group
STIFEL Institutional Group
Slide 22: Institutional Group
Institutional Group Overview Net Revenues ($MM) (2)(3) Provides securities brokerage, trading, research, underwriting and corporate advisory services Largest providers of U.S. Equity Research 2 nd largest Equity trading platform in the U.S. outside of the Bulge Bracket (1) Full Service Investment Ba
Slide 23: Institutional Group – Research
Institutional Group – Research Largest U.S. Equity Research Platform U.S. Equity Research Coverage (1) Stifel Research Highlights Companies Under Coverage (2) Rank Firm Overall Small Cap Largest provider of U.S. equity research 1 Stifel / Keefe, Bruyette & Woods 1,376 426 2 Bank of America Merrill L
Slide 24: Institutional Group – Equity Sales and Trading
Institutional Group – Equity Sales and Trading Powerful Platform Spanning North America and Europe Institutional Equity Sales Equity Trading 100 person sales force, commission based 53 sales traders located in Experts in small and mid cap growth and value Baltimore, New York, Boston, Dallas, San Tea
Slide 25: Institutional Group – Fixed Income
Institutional Group – Fixed Income Strong Fixed Income Capital Markets Capabilities Overview Client Distribution (1)(2) Comprehensive platform 90 traders with annual client trade volume approaching $400 billion 28-person Fixed Income Research and Strategy Group 9 person US Debt Capital Markets Group
Slide 26: Investment Banking
Investment Banking Accomplished U.S. Equity Underwriting Franchise – All Equity Transactions All Managed Equity Deals Since 2010 Bookrun Equity Deals Since 2010 ($ in billions) # of $ ($ in billions) # of $ Rank Firm Deals Volume Rank Firm Deals Volume 1 Bank of America Merrill Lynch 893 $524.7 1 Ba
Slide 27: Financial Results
STIFEL Financial Results
Slide 28: Stifel Financial Results: Three Months Ended December 31, 2013
Stifel Financial Results Three months ended December 31, 2013 Three Months Ended December 31, 2013 Three Months Ended (1) (2) (2) ($ in thousands, except per share amounts) Non-GAAP Non-Core GAAP 12/31/12 % Change 9/30/13 % Change Total revenues $ 576,236 $ (2,080) $ 574,156 $ 419,885 37.2% $ 491,16
Slide 29: Stifel Financial Results: Year Ended December 31, 2013
Stifel Financial Results Year ended December 31, 2013 Year Ended December 31, 2013 Year Ended (1) (2) ($ in thousands, except per share amounts) Non-GAAP Non-Core GAAP 12/31/12 % Change Total revenues $ 2,024,538 $ (4,724) $ 2,019,814 $ 1,627,483 24.4% Interest expense 46,198 170 46,368 33,370 38.4%
Slide 30: Sources of Revenues
Sources of Revenues Three Months Ended Year Ended % % % ($ in thousands) 12/31/13 12/31/12 Change 9/30/13 Change 12/31/13 12/31/12 Change Commissions $ 152,451 $ 131,327 16.1% $ 145,837 4.5% $ 598,949 $ 501,434 19.4% Principal transactions 118,815 97,515 21.8% 122,583 (3.1%) 459,968 408,935 12.5% Br
Slide 31: Core Non-Interest Expenses (Quarter)
Core Non-Interest Expenses Three months ended December 31, 2013 Three Months Ended % of Net revenues (1) (1) ($ in thousands) 12/31/13 12/31/12 % Change 9/30/13 % Change 12/31/13 12/31/12 9/30/13 Net revenues $ 564,681 $ 411,283 37.3% $ 479,634 17.7% 100.0% 100.0% 100.0% Compensation and benefits 32
Slide 32: Core Non-Interest Expenses (Year)
Core Non-Interest Expenses Year ended December 31, 2013 Year Ended % of Net revenues (1) (1) ($ in thousands) 12/31/13 12/31/12 % Change 12/31/13 12/31/12 Net revenues $ 1,978,340 $ 1,594,113 24.1% 100.0% 100.0% Compensation and benefits 1,150,883 937,066 22.8% 58.2% 58.8% Transitional pay 86,108 73
Slide 33: Segment Comparison - Core
Segment Comparison - Core Three Months Ended Year Ended (1) % % (1) % ($ in thousands) 12/31/13 12/31/12 Change 9/30/13 Change 12/31/13 12/31/12 Change Net revenues: Global Wealth Management $ 292,836 $ 253,775 15.4% $ 274,669 6.6% $ 1,117,179 $ 991,597 12.7% Institutional Group 267,282 160,693 66.3
Slide 34: Global Wealth Management
Global Wealth Management Three Months Ended Year Ended ($ in thousands) 12/31/13 12/31/12 % Change 9/30/13 % Change 12/31/13 12/31/12 % Change Commissions $ 104,149 $ 93,043 11.9% $ 99,427 4.7% $ 410,238 $ 361,871 13.4% Principal transactions 55,809 53,542 4.2% 58,658 (4.9%) 227,087 225,007 0.9% Ass
Slide 35: Stifel Bank & Trust (an operating unit of GWM)
Stifel Bank & Trust (an operating unit of GWM) As of As of 12/31/13 12/31/12 % Change 9/30/13 % Change Assets $ 5,027,023 $ 3,650,235 37.7 $ 4,547,071 10.6 Investment securities 3,062,549 2,327,316 31.6 2,949,080 3.8 Retained loans, net 1,412,136 822,711 71.6 1,061,313 33.1 Loans held for sale 109,1
Slide 36: Institutional Group
Institutional Group Three Months Ended Year Ended ($ in thousands) 12/31/13 12/31/12 % Change 9/30/13 % Change 12/31/13 12/31/12 % Change Net revenues $ 267,282 $ 160,693 66.3% $ 205,132 30.3% $ 861,158 $ 604,654 42.4% Compensation and benefits 165,779 105,025 57.8% 119,874 38.3% 524,870 380,185 38.
Slide 37: Institutional Group Revenues
Institutional Group Revenues Three Months Ended Year Ended ($ in thousands) 12/31/13 12/31/12 % Change 9/30/13 % Change 12/31/13 12/31/12 % Change Institutional brokerage: Equity $ 60,204 $ 38,659 55.7% $ 58,677 2.6% $ 232,392 $ 151,308 53.6% Fixed income 51,103 43,598 17.2% 51,658 (1.1%) 189,200 17
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