Stifel Financial Corporation · NYSE:SF
Stifel Financial — Goldman Sachs US Financial Services Conference 2016
37 slides from Stifel Financial's conference presentation, Dec 7, 2016
Slide 1: Investor Presentation, Goldman Sachs US Financial Services Conference
Investor Presentation Goldman Sachs US Financial Services Conference December 7, 2016 Exhibit 99.1
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: Our Strategy
Our Strategy STIFEL
Slide 4: Strategic Vision
Strategic Vision To build a premier wealth management and investment banking firm Global Wealth Management Institutional Private Client 2,280 financial advisors in nearly 359 branches with more than $200B in client assets Asset Management $27B in total assets managed through various strategies Bank
Slide 5: A History of Growth
A History of Growth 2005 Legg Mason’s Capital Markets Division 2008 Butler Wick 2009 56 UBS Private Client Branches 2010 Thomas Weisel Partners 2007 Ryan Beck Acquisition Stifel Bank & Trust 2011 Stone & Youngberg 2012 Miller Buckfire 2013 Knight Capital Group’s Fixed Income Division 2014 De La Rosa
Slide 6: Driving Shareholder Value Through Deal Integration & Balance Sheet Growth
Driving Shareholder Value Through Deal Integration & Balance Sheet Growth
Slide 7: Infrastructure Build and Balance Sheet Growth
139% Growth 92% Growth Infrastructure Build Balance Sheet Growth
Slide 8: Bank Drove Significant Balance Sheet & Revenue Growth
Bank Drove Significant Balance Sheet & Revenue Growth Bank growth has been balanced between loans and investments: Loans: Comprised of securities based loans, C&I, and residential mortgages Focused lending to high net worth retail clients Effective duration of approximately 1.5 years as of 9/30/16 A
Slide 9: Stifel Overview
Stifel Overview STIFEL a
Slide 10: Stifel – Premier Investment Bank and Wealth Management Firm
Stifel – Premier Investment Bank and Wealth Management Firm Stifel at a Glance GAAP Net Revenue - $2,495 million (Q3’16 LTM) Global Wealth Management (GWM) Net Revenue - $1,503 million (Q3’16 LTM) Institutional Group (IG) Net Revenue - $1,007 million (Q3’16 LTM) Private Client Stifel Bank & Trust Ma
Slide 11: Leading broker-dealer providing wealth management and institutional services
Leading broker-dealer providing wealth management and institutional services to consumers and companies Bulge Bracket Boutique Size / scale Large distribution Trading Retail Issues Lack of focus Banker turnover Lack of commitment Research indifference Lack of growth investors Firm focus Good researc
Slide 12: Well-diversified, Low Risk Business Model
Well-diversified, Low Risk Business Model with Balanced Retail and Institutional Exposure Unburdened by capital constraints Low leverage business model and conservative risk management Limited balance sheet risk Stable wealth management business is augmented by profitable and growing institutional b
Slide 13: A Stable Track Record Through Multiple Business Cycles
A Stable Track Record Through Multiple Business Cycles Non-GAAP Net Revenues ($MM)(1) (2) Non-GAAP Net Income ($MM)(1)(2) Total Equity ($MM) (1)(2) Total Client Assets(1) (3) ($BN) Book Value Per Share(1) (4) CAGR reflects years 2006 through Q3’16 YTD Annualized, 2016 results based on annualized 3QT
Slide 14: Global Wealth Management
Global Wealth Management SHIFEL
Slide 15: Global Wealth Management (GWM) Overview
Global Wealth Management (GWM) Provides Securities Brokerage Services and Stifel Bank Products Overview National Presence Grown from 600+ financial advisors in 2005 to nearly 2,300 financial advisors currently Proven organic growth and acquirer of private client business Strategy of recruiting exper
Slide 16: Building Scale and Capabilities into a $1.5B Revenue Segment
Building Scale and Capabilities into a $1.5B Revenue Segment Private Client Asset Management Bank 56 UBS Branches Private Client – 350 financial advisors and support Revenue production has exceeded expectations October 2009 Private Client – 75 financial advisors Public Finance December 2008 Private
Slide 17: GWM - Private Client Group Key Operating Metrics
GWM - Private Client Group Key Operating Metrics Accounts(1) Financial Advisors(1) Total Client Assets(1) ($MM) Branches(1) Excludes Legacy Sterne Agee Independent Contractor Business.
Slide 18: GWM – Stifel Bank & Trust
GWM – Stifel Bank & Trust Acquired FirstService Bank, a St. Louis-based, Missouri-chartered commercial bank, in April 2007 Stifel Financial became a bank holding company and financial services holding company Substantial Balance sheet growth with low-risk assets Funded by Stifel Nicolaus client depo
Slide 19: Growing Asset Management Capabilities
Growing Asset Management Capabilities Asset Management Subsidiaries¹ with $27.2 Billion in Client Assets ¹Stifel affiliated asset managers with greater than $1 billion in client assets as of 9/30/2016 included in table on slide EquityCompass Strategies is a research and investment advisory unit of C
Slide 20: Institutional Group
Institutional Group SHIFEL 20
Slide 21: Institutional Group Overview
Institutional Group Net Revenues ($MM)(3)(4) Fixed Income Brokerage + Investment Banking2) Overview Equity Brokerage + Investment Banking(2) Provides securities brokerage, trading, research, underwriting and corporate advisory services Largest provider of U.S. Equity Research 2nd largest Equity trad
Slide 22: Building Scale and Capabilities into a $1.0B Revenue Segment
Equities Fixed Income Investment Banking Building Scale and Capabilities into a $1.0B Revenue Segment Growth Focused Investment Banking, Research, Sales and Trading July 2010 Core of our Institutional sales, trading and research group December 2005 Knight Fixed Income IB, Sales and Trading, Private
Slide 23: Institutional Group – Investment Banking
Institutional Group – Investment Banking Accomplished U.S. Equity Underwriting Franchise – All Equity Transactions Bookrun Equity Deals Since 2010 All Managed Equity Deals Since 2010 Source: Dealogic. Rank eligible SEC registered IPOs and Follow-On offerings since 2010. Includes demutualizations. As
Slide 24: Institutional Group – Research
Institutional Group – Research Largest U.S. Equity Research Platform U.S. Equity Research Coverage (1) Coverage Balanced Across All Market Caps (1) Stifel Research Highlights Largest provider of U.S. Equity Research Largest provider of U.S. Small Cap Research² #1 U.S. provider of Financial Services
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 Extensive Distribution Network Relationships with over 3,500 institutional accounts globally Active daily market maker in over 3,700 stocks Traded over 7.4 bil
Slide 26: Institutional Group – Fixed Income Capital Markets
Institutional Group – Fixed Income Capital Markets Strong Fixed Income Brokerage Capabilities Overview Client Distribution (1)(2) Platform & Products Comprehensive platform 88 traders with annual client trade volume approaching $500 billion 57-person Fixed Income Research and Strategy Group Widespre
Slide 27: Institutional Group – Public Finance
Institutional Group – Public Finance Overview Stifel has ranked in the top ten nationally for senior managed negotiated underwritings for the past five years, and Stifel has ranked #1 nationally for senior managed K-12 negotiated underwritings for 2015. Stifel’s Public Finance Group ranked #1 in mun
Slide 28: Financial Information
Financial Information STIFEL 28
Slide 29: 3rd Quarter Highlights
3rd Quarter Highlights Completed sale of legacy Sterne Agee Clearing and Independent Broker Businesses Announced the acquisition of City Securities
Slide 30: Merger Related Expenses & Duplicative Expenses
Merger Related Expenses & Duplicative Expenses *Other Acquisition expense estimates are updated quarterly
Slide 31: Brokerage & Investment Banking Revenue
Brokerage & Investment Banking Revenue
Slide 32: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Three months ended September 30, 2016
Slide 33: Balance Sheet & Net Interest Margin
Balance Sheet & Net Interest Margin Net Interest Income Drivers: Total assets increased to $17.2 bil. up 12% sequentially & 84% Y/Y Average interest earning assets increased to $12.2 bil. up 13% sequentially & 93% Y/Y NIM increased to 178 bps , up 7 bps sequentially but down 16 bps Y/Y. NIM at Stife
Slide 34: Segment Results
Segment Results SHIFEL 2
Slide 35: Global Wealth Management
Global Wealth Management Net revenue in the GWM segment was $390 mil., up 1% sequentially & 9% Y/Y Brokerage revenue declined 4% sequentially & 2% Y/Y Ex. Sterne IBC & Clearing, Brokerage revenue increased 4% sequentially Net interest income increased 18% sequentially & 76% Y/Y 2,280 total FAs down
Slide 36: Stifel Bank & Trust Balance Sheet Summary
Investments $5377 $1,750 | 207% | $4,580] 17% Mortgage Loans 1819 272 | 569% | 1,242} 46% Commercial Loans 1824 1,261] 45% 1684] 8% Securities Based Loans 1452 1,004] 45% 1419 | 2% Consumer 93 22 | 323% 36 | 158% Total Loans, net $5,174 $2,526 | 105% | $4,338 | 19% ToansHeld for Sale 27 780 | 21% 25
Slide 37: Institutional Group
Institutional Group Total net revenue of $259 mil. decreased 1% sequentially but increased 11% Y/Y Investment banking revenue of $133 mil. increased 7% sequentially & 22% Y/Y Equity underwriting of $21 mil. decreased 23% sequentially & 33% Y/Y Debt underwriting of $25 mil. decreased 12% sequentially
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