Stifel Financial Corporation · NYSE:SF
Stifel Financial — Investor Presentation (September 2013)
34 slides from Stifel Financial's investor presentation, Sep 18, 2013
Slide 1: Stifel Investor Presentation
Exhibit 99.1 Stifel Investor Presentation September 2013
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: Activity Summary Second Quarter
Market Overview Activity Summary Second Quarter Volumes are in million $, except trading volumes which are in million shares. Data as of 6/30/2013. Results 2013 Q2 2013 Q1 2012 Q4 2012 Q3 2012 Q2 QoQ YoY S&P 500 1,606 1,569 1,426 1,441 1,362 2% 18% U.S. Treasury 10yr Yield 2.49% 1.85% 1.76% 1.63% 1.
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 $2.7 billion market capitalization (1) 2012 Represented Stifel’s 17 th year of consecutive record net revenues Balanced business model Top performing financial stock over the past ten years
Slide 7: Stifel's Market Opportunity
Stifel’s Market Opportunity Stifel’s Differentiated Value Proposition: Growth, Scale, and Stability Bulge Bracket Middle Market Size / scale Size / scale Firm focus Large distribution Firm focus Good research Investment Banking Stability (financial & Growth investor access Retail personnel) Trading
Slide 8: Strategy: Building the Premier Investment Bank
Strategy: Building the Premier Investment Bank Position Stifel to Take Advantage of Opportunities Unburdened by capital constraints Low leverage business model and conservative risk management Built the Company through 11 acquisitions since 2005; prudently evaluate all opportunities Capitalize on he
Slide 9: A Growth Story…
A Growth Story… Net Revenues ($MM) (1) Core Net Income ($MM) (1) Total Equity ($MM) Total Client Assets ($BN) (2) Financial Advisors (3) Book Value Per Share (4) (1) CAGR reflects years 2006 to 2012. (2) Client assets - Includes FDIC-insured products as of 6/30 for years 2008-2013 (3) Includes Indep
Slide 10: Building Scale…
Building Scale… Each merger has been accretive to Stifel Retention remains high Fixed Income Sales and Private Client Revenue production has exceeded Knight Trading – U.S. & Europe 56 UBS Branches expectations Fixed Income Research Fixed Income July 2013 October 2009 FIG Investment Banking FIG Sales
Slide 11: Stability Achieved Through A Balanced Business Model
Stability Achieved Through A Balanced Business Model Balanced business model facilitates growth during volatile markets Stable GWM business is augmented by profitable and growing Institutional Group Proven ability to grow all businesses Net Revenues Operating Contribution 6 mo 2012 6 mo 2013 6 mo 20
Slide 12: Strong Balance Sheet Facilitates Growth
Strong Balance Sheet Facilitates Growth As June 30, 2013 Total Assets ($ 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 12
Slide 13: Top Performing Stock
Top Performing Stock Cumulative Price Appreciation As of September 12, 2013 Since 12/31/12 Since 12/31/07 Since 12/31/00 FBR & Co. 70.93% Evercore Partners 132.67% Stifel Financial Corp. 1011.12% Evercore Partners 66.08% Stifel Financial Corp. 80.32% Raymond James Financial 180.32% Morgan Stanley 46
Slide 14: 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 fixed income businesses Continue to expand investment banking capabilities Focus on quality asset generation within Stifel Bank Expand trad
Slide 15: Merger With KBW
STIFEL Merger With KBW
Slide 16: KBW Merger: Non-Core Expense Projections
KBW Merger Non-Core Expense Projections Acquisition-Related Expenses Three Months Ended ($ in thousands) 6/30/13 9/30/13 12/31/13 Estimate Actual Estimate Estimate Operating expenses: Compensation $ 6,200 $ 6,000 $ 2,500 $ 400 Non-Compensation Operating Expenses 6,800 15,000 5,000 7,100 Total estima
Slide 17: KBW Update
KBW Update KBW Update First Half Performance Advisory KBW Equities #1 by number of FIG mergers Superior recognition in Greenwich Associates #1 by number of Bank mergers rankings for Research, Sales and Trading #1 by Bank deal value Representative of the acquirer or seller on 7 out of the 10 Improvin
Slide 18: Global Wealth Management
STIFEL Global Wealth Management
Slide 19: 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 20: 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 ($MM) (2) (1) Includes Independent Contractors. (2) Client assets include FDIC-insured products as of 6/30/13 for years 2008-2013. 20
Slide 21: Global Wealth Management – Stifel Bank & Trust
Global Wealth Management – Stifel Bank & Trust Overview Strength of Brokerage Position Acquired FirstService Bank, a St. Louis-based, Offers banking products (securities based loans and Missouri-chartered commercial bank, in April 2007 mortgage loans) within the GWM client base, including establishi
Slide 22: Institutional Group
STIFEL Institutional Group
Slide 23: Institutional Group
Institutional Group Overview Net Revenues ($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 24: Institutional Group – Research
Institutional Group – Research Largest U.S. Equity Research Platform U.S. Equity Research Coverage (1) Stifel Research Highlights Companies Under Coverage Rank Firm Overall Small Cap (2) Largest provider of U.S. equity research 1 Stifel / Keefe, Bruyette & Woods 1,307 432 2 Bank of America Merrill L
Slide 25: Institutional Group – Equity Sales and Trading
Institutional Group – Equity Sales and Trading Powerful Platform Spanning North America and Europe Institutional Equity Sales Equity Trading 110 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 26: Institutional Group – Fixed Income
Institutional Group – Fixed Income Strong Fixed Income Capital Markets Capabilities Overview Client Distribution (1)(2) Comprehensive platform 69 traders with annual client trade volume approaching $400 billion 33-person Fixed Income Research and Strategy Group Widespread distribution More than 180
Slide 27: Investment Banking
Investment Banking Accomplished U.S. Equity Underwriting Franchise – All Equity Transactions All Managed Equity Deals Since 2010 Bookrun Equity Deals Since 2010 ($ in billions) # of $ ($ in billions) # of $ Rank Firm Deals Volume Rank Firm Deals Volume 1 Bank of America Merrill Lynch 755 $461.5 1 Ba
Slide 28: Financial Results
STIFEL Financial Results
Slide 29: Stifel Financial Results: Three months ended June 30, 2013
Stifel Financial Results Three months ended June 30, 2013 Three Months Ended June 30, 2013 Three Months Ended ($ in thousands, except per share amounts) GAAP Non-Core Non-GAAP 6/30/12 % Change 3/31/13 % Change Net revenues 498,736 1,736 500,472 374,407 33.7% $ 441,780 13.3% (1) Compensation and bene
Slide 30: Stifel Financial Results: Six months ended June 30, 2013
Stifel Financial Results Six months ended June 30, 2013 Six Months Ended June 30, 2013 Six Months Ended ($ in thousands, except per share amounts) GAAP Non-Core Non-GAAP 6/30/12 % Change Total revenues $ 964,661 $ 1,744(1) $ 966,405 $ 793,607 21.8% Interest expense 24,145 - 24,145 18,867 28.0% Net r
Slide 31: Sources of Revenues
Sources of Revenues Three Months Ended Six Months Ended % % % ($ in thousands) 6/30/13 6/30/12 Change 3/31/13 Change 6/30/13 6/30/12 Change Commissions $ 157,168 $ 127,427 23.3% $ 148,648 5.7% $ 305,816 $ 250,730 22.0% Principal transactions 111,448 91,564 21.7% 107,244 3.9% 218,692 207,797 5.2% Bro
Slide 32: Core Non-Interest Expenses: Three months ended June 30, 2013
Core Non-Interest Expenses Three months ended June 30, 2013 Three Months Ended % of Net revenues (1) (1) ($ in thousands) 6/30/13 6/30/12 % Change 3/31/13 % Change 6/30/13 6/30/12 3/31/13 Net revenues $ 500,472 $ 374,407 33.7% $ 441,788 13.3% 100.0% 100.0% 100.0% Compensation and benefits 294,446 21
Slide 33: Core Non-Interest Expenses: Six months ended June 30, 2013
Core Non-Interest Expenses Six months ended June 30, 2013 Six Months Ended % of Net revenues (1) (1) ($ in thousands) 6/30/13 6/30/12 % Change 6/30/13 6/30/12 Net revenues $ 942,260 $ 774,740 21.6% 100.0% 100.0% Compensation and benefits 555,424 455,336 22.0% 58.9% 58.8% (2) Transitional pay 41,830
Slide 34: Segment Comparison
Segment Comparison Three Months Ended Six Months Ended % % % (1) (1) ($ in thousands) 6/30/13 6/30/12 Change 3/31/13 Change 6/30/13 6/30/12 Change Net revenues: Global Wealth Management$ 282,717 $ 239,300 18.1% $ 266,957 5.9% $ 549,674 $ 486,908 12.9% Institutional Group 220,476 136,026 62.1% 176,43
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