Stifel Financial Corporation · NYSE:SF
Stifel Financial — Q4 2013 Earnings Presentation
26 slides from Stifel Financial's earnings presentation, Feb 24, 2014
Slide 1: 4th Quarter and Full-Year 2013 Financial Results Presentation
4th Quarter and Full-Year 2013 Financial Results Presentation February 24, 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: Chairman's Comments
Chairman’s Comments “We are very pleased to post our 18th consecutive year of record net revenues. This speaks to the dedication of our over 5,800 professionals, as well as to our balanced business model. Non-GAAP net income from continuing operations for the year improved over the prior year as a r
Slide 4: Market Overview
Market Overview Domestic Equity Flows Equity Risk Premium (1) Source: Investment Company Institute (1) Based on the Daily Treasury Yield Curve Rates I10 year) 3
Slide 5: 2013: A Year in Review
2013: A Year in Review Stifel’s 18th Consecutive Year of Record Net Revenues • Successfully completed the merger and integration with KBW. • Acquired and integrated the fixed income business of Knight Capital Group in July of 2013, adding to Stifel’s already impressive fixed income capabilities. • T
Slide 6: Stifel's Stock Performance
Stifel’s Stock Performance 5
Slide 7: Top Performing Stock
Top Performing Stock Cumulative Price Appreciation as of December 31, 2013 6
Slide 8: Financial Results
Financial Results 7
Slide 9: Stifel Financial Corp. Results
Stifel Financial Corp. Results Three months ended December 31, 2013 Three Months Ended December 31, 2013 Three Months Ended (2) (2) ($ in thousands, except per share amounts) Non-GAAP Non-Core (1) GAAP 12/31/12 % Change 9/30/13 % Change Total revenues $ 576,236 $ (2,080) $ 574,156 $ 419,885 37.2% $
Slide 10: Stifel Financial Corp. Results
Stifel Financial Corp. Results Year ended December 31, 2013 Year Ended December 31, 2013 Year Ended ($ 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 (2) 24.4% Interest expense 46,198 170 46,368 33,370 38.
Slide 11: Source of Revenues
Source 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% Bro
Slide 12: Brokerage Revenues by Segment
Brokerage Revenues by Segment 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 Private client group $ 159,958 $ 146,585 9.1% $ 158,085 1.2% $ 637,325 $ 586,878 8.6% Equity brokerage 60,204 38,659 55.7% 58,677 2.6% 232,392 151,308 5
Slide 13: Core Non-Interest Expenses
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 14: Core Non-Interest Expenses
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 15: 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 16: 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 Commi s s i ons $ 104,149 $ 93,043 11.9% $ 99,427 4.7% $ 410,238 $ 361,871 13.4% Pri nci pa l tra ns a cti ons 55,809 53,542 4.2% 58,658 (4.9%) 227,087 225,0
Slide 17: Stifel Bank & Trust
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 18: 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% Compens ati on a nd benefi ts 165,779 105,025 57.8% 119,874 38.3% 524,870 380,185
Slide 19: 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
Slide 20: Historical Investment Banking Revenues
Historical Investment Banking Revenues Year Ended ($ in thousands) 12/31/13 12/31/12 12/31/11 12/31/10 12/31/09 Investment banking 448,060 281,280 199,584 218,104 125,807 _________________________________________________________ Note: Reflects total investment banking historical revenues. 19
Slide 21: Financial Condition
Financial Condition 20
Slide 22: Capital Structure
Capital Structure As of December 31, 2013 (in thousands, except ratios) ($ in thousands) Total Assets $ 9,016,987 Stockholders' Equity $ 2,058,849 6.70% senior notes, due 2022 $ 175,000 5.375% senior notes, due 2022 150,000 Debentures to Stifel Financial Capital Trusts II, III, & IV 82,500 Total Cap
Slide 23: Other Financial Data
Other Financial Data As of As of 12/31/13 12/31/12 % Change 9/30/13 % Change Total assets (000s): Stifel Nicolaus & Stifel Financial $ 3,986,845 $ 3,313,507 20.3% $ 4,162,388 (4.2%) Stifel Bank 5,030,142 3,652,633 37.7% 4,547,071 10.6% Total assets $ 9,016,987 $ 6,966,140 29.4% $ 8,709,459 3.5% Tota
Slide 24: Recent Merger Updates
Recent Merger Updates 23
Slide 25: Recent Merger Updates
Recent Merger Updates 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 ne
Slide 26: 25
25