Stifel Financial Corporation · NYSE:SF
Stifel Financial — Q2 2015 Earnings Presentation
22 slides from Stifel Financial's earnings presentation, Aug 10, 2015
Slide 1: 2nd Quarter 2015 Financial Results Presentation
2nd Quarter 2015 Financial Results Presentation August 10, 2015 Exhibit 99.2
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 “Our record second quarter results demonstrate the strength of our platform. On June 5, 2015, we completed the acquisition of Sterne Agee, and as a result, our second quarter includes approximately one month of Sterne Agee’s financial results. We are pleased to welcome our new as
Slide 4: Market Overview
Market Overview Note: Volumes are in million $, except trading volumes which are in million shares. Source: Dealogic, SIFMA, Bloomberg, Strategic Insight Simfund and KBW Research. Market Valuations Rates Volatility / Volumes Underwriting Volumes and M&A Municipal U.S. U.S. U.S. 10yr Equity Corporate
Slide 5: Financial Results
Financial Results
Slide 6: Stifel Financial Corp. Results Three months ended June 30, 2015
Stifel Financial Corp. Results Three months ended June 30, 2015 Adjustments consist primarily of acquisition related expenses, which management believes are duplicative and will be eliminated, stock-based compensation and other expenses which in managements view are not representative of ongoing bus
Slide 7: Q2 2015 Non-GAAP Results vs. Estimates
Note: In millions, except diluted EPS and share data. Q2 2015 Non-GAAP Results vs. Estimates
Slide 8: Stifel Financial Corp. Results Six months ended June 30, 2015
Stifel Financial Corp. Results Six months ended June 30, 2015 Adjustments consist primarily of acquisition related expenses, which management believes are duplicative and will be eliminated, stock-based compensation and other expenses which in managements view are not representative of ongoing busin
Slide 9: Source of Revenues
Source of Revenues Three Months Ended Six Months Ended% % % ($ in thousands) 6/30/15 6/30/14 Change 3/31/15 Change 6/30/15 6/30/14 ChangeCommissions $ 183,770 $ 164,371 11.8% $ 180,302 1.9% $ 364,073 $ 336,614 8.2% Principal transactions 85,543 110,717 (22.7%) 100,205 (14.6%) 186,275 221,399 (15.9%)
Slide 10: Brokerage & Investment Banking Revenues
Brokerage & Investment Banking Revenues Three Months Ended Six Months Ended ($ in thousands) 6/30/15 6/30/14 % Change 3/31/15 % Change 6/30/15 6/30/14 % Change Global Wealth Management $ 158,803 $ 160,540 (1.1%) $ 157,995 0.5% $ 317,024 $ 320,840 (1.2%) Institutional Group Equity brokerage 58,551 60
Slide 11: Non-GAAP Non-Interest Expenses Three months ended June 30, 2015
Non-GAAP Non-Interest Expenses Three months ended June 30, 2015 _________________________________________________________ Excludes adjustments for duplicative items associated with the integration of acquired businesses (merger-related expenses). Transition pay includes amortization of retention awa
Slide 12: Non-GAAP Non-Interest Expenses Six months ended June 30, 2015
Non-GAAP Non-Interest Expenses Six months ended June 30, 2015 _________________________________________________________ Excludes adjustments for duplicative items associated with the integration of acquired businesses (merger-related expenses). Transition pay includes amortization of retention award
Slide 13: Non-GAAP Segment Comparison
Non-GAAP Segment Comparison Excludes the other segment. _________________________________________________________ Three Months Ended Six Months Ended % % % ($ in thousands) 6/30/15 6/30/14 Change 3/31/15 Change 6/30/15 6/30/14 Change Net revenues: Global Wealth Management $ 343,382 $ 307,247 11.8% $
Slide 14: Global Wealth Management
Global Wealth Management Three Months Ended Six Months Ended ($ in thousands) 6/30/15 6/30/14 % Change 3/31/15 % Change 6/30/15 6/30/14 % Change Commissions $ 125,121 $ 112,205 11.5% $ 116,214 7.7% $ 241,335 $ 225,202 7.2% Principal transactions 33,682 48,335 (30.3%) 41,781 (19.4%) 75,689 95,638 (20
Slide 15: Stifel Bank & Trust (an operating unit of GWM)
Stifel Bank & Trust (an operating unit of GWM) Note: Actual amounts presented above are as of period-end and yields are based off of quarter-to-date averages. Investment securities includes available-for-sale and held-to-maturity securities. Includes loans held for sale. As of 6/30/15 As of 6/30/14
Slide 16: Institutional Group
Institutional Group Three Months Ended Six Months Ended ($ in thousands) 6/30/15 6/30/14 % Change 3/31/15 % Change 6/30/15 6/30/14 % Change Net revenues $ 258,538 $ 255,670 1.1% $ 238,607 8.4% $ 497,145 $ 505,647 (1.7%) Compensation and benefits 160,077 157,500 1.6% 149,411 7.1% 309,488 311,734 (0.7
Slide 17: Financial Condition
Financial Condition
Slide 18: Capital Structure
Capital Structure (in thousands, except ratios) _________________________________________________________ Debt to equity ratio includes the debentures to Stifel Financial Capital Trusts and Senior Notes divided by stockholders’equity. As of As of ($ in thousands) 6/30/15 6/30/14 3/31/15 Total Assets
Slide 19: Other Financial Data
Other Financial Data _________________________________________________________ Includes 736, 140, and 134 independent contractors as of June 30, 2015, June 30, 2014, and March 31, 2015, respectively. As of As of 6/30/15 6/30/14 % Change 3/31/15 % Change Total assets (000s): Stifel Nicolaus & Stifel
Slide 20: Acquisition Updates
Acquisition Updates
Slide 21: Non-GAAP Deal Integration Costs
Non-GAAP Deal Integration Costs _________________________________________________________ Assumes an effective income tax rate of 40.0%. Three months ended 6/30/15 Estimate ($ in thousands) Actual Estimate 9/30/15 12/31/15 3/31/16 6/30/16 Existing acquisitions Duplicative operating expenses: Acacia
Slide 22: Q&A
Q&A