Stifel Financial Corporation · NYSE:SF
Stifel Financial — Q4 2016 Earnings Presentation
18 slides from Stifel Financial's earnings presentation, Jan 31, 2017
Slide 1: 4th Quarter & Full Year 2016 Financial Results Presentation
4th Quarter & Full Year2016 Financial Results Presentation January 31, 2017
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: 2016 Highlights
2016 Highlights • Operating Highlights: • Record Net Revenue of $2.6 billion • Record Net Revenue in our Institutional Segment of $1 billion • Record Net Revenue for Global Wealth Management Segment of $1.6 billion. • Record Pre-Tax Operating Income for Global Wealth Management of $430 million • $5.
Slide 4: 4th Quarter Results
4th Quarter Results Financial Highlights Three Months Ended Non-GAAP (000s, except per share data) 4Q16 4Q15 3Q16 4Q16 U.S. GAAP Net revenues $661,391 $581,286 $641,986 $661,392 Compensation ratio 63.6% 68.6% 67.6% 62.3% Non-compensation ratio 28.1% 29.5% 28.0% 24.2% Pre-tax operating margin 8.3% 1.
Slide 5: Brokerage & Investment Banking Revenue
Brokerage & Investment Banking Revenue 4
Slide 6: Brokerage & Investment Banking Revenue
Brokerage & Investment Banking Revenue Brokerage: Three Months Ended (000s) 4Q16 4Q15 % Change 3Q16 % Change Global Wealth Management brokerage revenue $160,017 $166,339 -3.8% $165,475 -3.3% Institutional brokerage: Equity 64,007 54,837 16.7% 51,004 25.5% Fixed income 65,712 73,574 -10.7% 71,794 -8.
Slide 7: Segment Results
Segment Results 6
Slide 8: Global Wealth Management
Global Wealth Management • Net revenue in the GWM segment was $408 mil., up 5% sequentially & 17% Y/Y • Brokerage revenue declined 3% sequentially & 4% Y/Y • Ex. Sterne IBC & Clearing, Brokerage revenue increased 6% Y/Y • Net interest income increased 23% sequentially & 87% Y/Y • 2,282 total FAs up
Slide 9: Stifel Bank & Trust
Stifel Bank & Trust Stifel Bank % % (mil. except for %'s) 4Q16 4Q15 Change 3Q16 Change Assets: Investments $6,209 $3,479 79% $5,377 15% Mortgage Loans 2,161 429 404% 1,804 20% Commercial Loans 1,710 1,217 41% 1,558 10% Securities Based Loans 1,614 1,389 16% 1,453 11% Total Loans, net $5,591 $3,144 7
Slide 10: Institutional Group
Institutional Group • Total net revenue of $253 mil. decreased 2% sequentially but increased 3% Y/Y • Investment banking revenue of $122 mil. decreased 8% sequentially but increased 32% Y/Y • Equity underwriting of $40 mil. increased 88% sequentially & 2% Y/Y • Debt underwriting of $28mil. increased
Slide 11: Balance Sheet & Net Interest Income
Balance Sheet & Net Interest Income 10
Slide 12: Balance Sheet Growth
Balance Sheet Growth Infrastructure Build Ratio 2008 2009 2010 2011 2012 2013 2014 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 4Q17E Tier 1 Leverage 32.3% 30.5% 25.6% 21.4% 17.7% 15.4% 16.5% 16.4% 16.6% 11.6% 11.5% 11.8% 10.2% 10.0% Tier 1 Risk Based Capital 49.4% 40.5% 29.1% 27.4% 26.8% 26.7% 25.0% 29.4% 26.3% 2
Slide 13: Balance Sheet & Net Interest Margin
Balance Sheet & Net Interest Margin Net Interest Income Drivers: • Total assets increased to $19.1 billion. up 11% sequentially & 44% Y/Y • Average interest earning assets increased to $15.6 billion. up 27% sequentially & 111% Y/Y • NIM increased to 191 bps , up 10 bps sequentially but down 5 bps Y/
Slide 14: GAAP & Non-GAAP Reconciliation
GAAP & Non-GAAP Reconciliation 13
Slide 15: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Three months ended December 31, 2016 Three months GAAP to Non-GAAP Reconciliation for Fourth Quarter 2016 GAAP Resul ts ended (000s) 12/31/16 (000s) 12/31/16 GAAP Net Income $26,880 Total GAAP Compensation & benefits expense $420,664 Preferred Dividend 2,343 GAAP comp
Slide 16: Department of Labor Fiduciary Rule & Interest Rate Sensitivity Update
Department of Labor Fiduciary Rule & Interest Rate Sensitivity Update 15
Slide 17: Outlook for 2017
Outlook for 2017 16
Slide 18: Stifel
STIFEL "7