Stifel Financial Corporation · NYSE:SF
Stifel Financial — Investor Presentation (September 2014)
30 slides from Stifel Financial's investor presentation, Sep 30, 2014
Slide 1: Stifel Financial Corp. September 2014
Exhibit 99.1 Stifel Financial Corp. September 2014
Slide 2: Disclaimer
Disclaimer Forward-LookingStatements 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 opportunityand future
Slide 3: Stifel Overview
Stifel Overview
Slide 4: Stifel – Premier Investment Bank and Full-Service Investment Firm
Stifel – Premier Investment Bank and Full-Service Investment Firm Stifel at a Glance Net Revenue - $1,973 million (2013) Global Wealth Management (GWM) Institutional Group (IG) Net Revenue - $1,117 million (2013) Net Revenue - $861 million (2013) Private Client Equity & Fixed Income Capital Raising
Slide 5: Significant Growth, Unwavering Commitment
Stifel Overview Significant Growth, Unwavering Commitment 2013 2013 Knight Capital Acacia Bank & 2012 Group’s Fixed 2014 #1 Ranked in Ziegler Lotsoff Income Division De La Rosa, FT/StarMine 2013 Oriel Securities 2011 Award* #2 Ranked in Stone & Youngberg 2013 & LMIC FT/StarMine Acquisition Keefe, Br
Slide 6: Building Scale
Building Scale Each merger has been accretive to Stifel and retention remains high LMIC - Customized investment advisory and trust services Fixed Income IB Pending: June 2014 Fixed Income Sales and Trading UK-based full service Private Client investment bank Seamless & efficient integration July 201
Slide 7: Stifel's Differentiated Value Proposition: Growth, Scale and Stability
Leading broker-dealer providing wealth management and institutional services to consumers and companies Stifel’s Differentiated Value Proposition: Growth, Scale and Stability Bulge Bracket Boutique Size / scale Firm focus Large distribution Good research Size / scale Trading Growth investor access F
Slide 8: Well-diversified, low risk business model with balanced retail and institutional exposure
Well-diversified, low risk business model with balanced retail and institutional exposure Unburdened by capital constraints Low leverage business model and conservative risk management Limited balance sheet risk Stable wealth management business is augmented by profitable and growing institutional b
Slide 9: Demonstrated ability to grow through all market environments
Demonstrated ability to grow through all market environments while maintaining solid profitability Core Net Revenues ($MM) (1) Core Net Income ($MM) (1) CAGR: 24% CAGR: 24% Financial Crisis Financial Crisis (1) CAGR reflects years 2006 to 2013. 9
Slide 10: Segment Overview – Global Wealth Management
Segment Overview – Global Wealth Management
Slide 11: Global Wealth Management
Global Wealth Management Provides Securities Brokerage Services and Stifel Bank Products Overview National Presence Grown from 600+ financial advisors in 2005 to over 2,000(1) financial advisors currently Proven organic growth and acquirer of private client business Retail investors are generally mi
Slide 12: Global Wealth Management Key Operating Metrics
Global Wealth Management Key Operating Metrics Brokers (1) Branches Accounts Assets Under Management ($MM) (1) Includes Independent Contractors. 12
Slide 13: Stifel Bank and Trust
Stifel Bank and 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 establishing trust services Stifel
Slide 14: Growing Asset Management Capabilities
Growing Asset Management Capabilities Assets Location Baltimore, New York, $9 Billion Cincinnati, Philadelphia $5 Billion Chicago / Milwaukee $1.5 Billion Baltimore, MD $1 Billion St. Louis, MO $1 Billion Portland, OR $700 Million Florham Park, NJ
Slide 15: Segment Overview – Institutional Group
Segment Overview – Institutional Group
Slide 16: Institutional Group
Institutional Group Overview Net Revenues ($MM) (2)(3) Provides securities brokerage, trading, research, underwriting and corporate advisory services Largest provider of U.S. Equity Research 2nd largest Equity trading platform in the U.S. outside of the Bulge Bracket (1) Full Service Investment Bank
Slide 17: Institutional Group – Research
Institutional Group – Research Largest U.S. Equity Research Platform U.S. Equity Research Coverage (1) Stifel Research Highlights Rank Firm Overall Mid Cap Small Cap Largest provider of U.S. Equity Research 1 Stifel / KBW 1,415 510 457 2 BofA Merrill Lynch 1,166 449 147 Largest provider of U.S. Smal
Slide 18: Institutional Group – Equity Sales and Trading
Institutional Group – Equity Sales and Trading Powerful Platform Spanning North America and Europe Institutional Equity Sales Equity Trading 100 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 19: Institutional Group – Fixed Income
Institutional Group – Fixed Income Strong Fixed Income Brokerage Capabilities Overview Client Distribution (1)(2) Comprehensive platform 85 traders with annual client trade volume approaching $400 billion 27-person Fixed Income Research and Strategy Group 7 person US Corporate Debt Capital Markets G
Slide 20: Institutional Group – Public Finance
Institutional Group – Public Finance Overview National K-12 2014YTD Negotiated Deal Rankings Par Amount Number of Stifel has ranked in the top ten nationally for senior managed negotiated underwritings for the past Rank Book Runner (US$ mil) Issues three years, and Stifel has ranked number one 1 Sti
Slide 21: 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 1,034 $597.2 1
Slide 22: Financial Overview
Financial Overview
Slide 23: Selected Financial Highlights
Selected Financial Highlights Core Net Revenues ($MM) (1) Core Net Income ($MM) (1) Total Equity ($MM) CAGR: 24% CAGR: 24% CAGR: 37% Total Client Assets ($BN) Book Value Per Share (2) CAGR: 24% CAGR: 21% (1) CAGR reflects years 2006 to 2013. (2) Book Value Per Share adjusted for April 2011 three-for
Slide 24: Stifel Financial Results – Three months ended June 30, 2014
Stifel Financial Results Three months ended June 30, 2014 Three Months Ended June 30, 2014 Three Months Ended (1) (2) (2) ($ in thousands, except per share amounts) Non-GAAP Non-Core GAAP 6/30/13 % Change 3/31/14 % Change Total revenues $ 570,543 $ (1,554) $ 568,989 $ 508,022 12.3% $ 557,288 2.4% In
Slide 25: Stifel Financial Results – Six months ended June 30, 2014
Stifel Financial Results Six months ended June 30, 2014 Six Months Ended June 30, 2014 Six Months Ended ($ in thousands, except per share amounts) Non-GAAP Non-Core(1) GAAP 6/30/13 (2) % Change Total revenues $ 1,127,831 $ (3,465) $ 1,124,366 $ 957,202 17.8% Interest expense 17,901 (428) 17,473 23,1
Slide 26: Sources of Revenues
Sources of Revenues Three Months Ended Six Months Ended % % % ($ in thousands) 6/30/14 6/30/13 Change 3/31/14 Change 6/30/14 6/30/13 Change Commissions $ 152,712 $ 154,795 (1.3%) $ 159,416 (4.2%) $ 312,128 $ 300,662 3.8% Principal transactions 125,676 111,306 12.9% 126,461 (0.6%) 252,137 218,570 15.
Slide 27: Brokerage & Investment Banking Revenues
Brokerage & Investment Banking Revenues Three Months Ended Six Months Ended ($ in thousands) 6/30/14 6/30/13 % Change 3/31/14 % Change 6/30/14 6/30/13 % Change Global Wealth Management $ 161,780 $ 160,889 0.6% $ 161,505 0.2% $ 323,285 $ 319,262 1.3% Institutional Group Equity brokerage 62,087 64,273
Slide 28: Core Non-Interest Expenses – Three months
Core Non-Interest Expenses Three months ended June 30, 2014 Three Months Ended % of Net revenues (1) (1) ($ in thousands) 6/30/14 6/30/13 % Change 3/31/14 % Change 6/30/14 6/30/13 3/31/14 Net revenues $ 561,495 $ 495,414 13.3% $ 548,435 2.4% 100.0% 100.0% 100.0% Compensation and benefits 328,380 290
Slide 29: Core Non-Interest Expenses – Six months
Core Non-Interest Expenses Six months ended June 30, 2014 Six Months Ended % of Net revenues (1) (1) ($ in thousands) 6/30/14 6/30/13 % Change 6/30/14 6/30/13 Net revenues $ 1,109,930 $ 934,026 18.8% 100.0% 100.0% Compensation and benefits 649,415 550,812 17.9% 58.5% 59.1% (2) Transitional pay 48,82
Slide 30: Segment Comparison - Core
Segment Comparison - Core Three and six months ended June 30, 2014 Three Months Ended Six Months Ended % % % ($ in thousands) 6/30/14 6/30/13 Change 3/31/14 Change 6/30/14 6/30/13 Change Net revenues: Global Wealth Management $ 307,247 $ 282,717 8.7% $ 297,183 3.4% $ 604,430 $ 549,674 10.0% Institut
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