Stifel Financial Corporation · NYSE:SF

Stifel Financial — Investor Presentation (February 2012)

27 slides from Stifel Financial's investor presentation, Feb 29, 2012

  1. Slide 1: Stifel Financial Investor Presentation

    Stifel Financial Investor Presentation February 2012

  2. Slide 2: Disclaimer

    Disclaimer Table of Contents 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 op

  3. Slide 3: I. Stifel Financial Overview

    I. Stifel Financial Overview

  4. Slide 4: Stifel Financial Overview

    Stifel Financial Overview Stifel Financial (NYSE: SF) Financial services firm demonstrating growth, scale and stability  $2.0 billion market capitalization(1)  2011 Represented our 16th year of consecutive record net revenues  Balanced business model  Top performing financial stock over the past

  5. Slide 5: A Growth Story

    Stifel Financial Overview A Growth Story… Net Revenues ($MM) Core Net Income ($MM) Total Equity ($MM) $1,500 $1,382 $1,417 $140 $1,400 $1,302 $125 $1,254 CAGR: 32% CAGR: 33% $114 CAGR: 43% $120 $1,200 $1,200 $1,091 $100 $1,000 $873 $870 $900 $80 $73 $76 $763 $67 $800 $593 $600 $60 $600 $452 $40 $425

  6. Slide 6: Building Scale: Strategic Growth Through Acquisitions

    Stifel Financial Overview Building Scale… Strategic Growth Through Acquisitions  Investment Banking  Sales and Trading 2005¹ 12/31/2011  Private Client Retail  October 2011  Financial Advisors 467 1,987 Brokerage  Private Client Branches 94 291 Network  Investment Banking  Sales and Trading

  7. Slide 7: Stability Achieved Through A Balanced Business Model

    Stifel Financial Overview 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 Contribu

  8. Slide 8: Cumulative Price Appreciation

    Stifel Financial Overview Cumulative Price Appreciation As of February 22, 2012 Since 12/31/11 Since 12/31/06 Since 12/31/01 Goldman Sachs Group 26.46% Stifel Financial Corp. 119.26% Stifel Financial Corp. 992.28% Morgan Stanley 23.79% Raymond James Financial 15.14% Raymond James Financial 121.07% G

  9. Slide 9: II. Global Wealth Management

    II. Global Wealth Management

  10. Slide 10: Global Wealth Management

    Global Wealth Management Provides Securities Brokerage Services and Stifel Bank Products Overview  Grown from 600+ financial advisors in 2005 to over 1,980(1) financial advisors currently  Proven organic growth and acquirer of private client business (56 UBS branches, Butler Wick, Ryan Beck)  Ret

  11. Slide 11: Opportunity Through Growth

    Global Wealth Management Opportunity Through Growth GWM Broker Growth (1) GWM Branch Growth 1,935 1,987 300 285 291 2,000 1,885 272 1,800 250 1,600 1,400 1,315 196 200 1,163 1,200 148 1,000 150 735 111 800 644 100 92 600 400 50 200 0 0 2005 2006 2007 2008 2009 2010 2011 2005 2006 2007 2008 2009 2010

  12. Slide 12: 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 Missouri-chartered commercial bank, in April 2007 and mortgage loans) within the GWM client base, including establ

  13. Slide 13: III. Institutional Group

    STIFEL FINANCIAL IIL. Institutional Group

  14. Slide 14: Institutional Group

    Institutional Group Overview Net Revenues ($MM)(1) $800  Provides securities brokerage, trading, research, CAGR: 11% (3) $668 underwriting and corporate advisory services $587 $626 $600 $559 $174 $84  One of the largest provider of U.S. Equity Research $507 $455 $197  2nd largest Equity trading p

  15. Slide 15: 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)  Currently cover more than 50% of the S&P 500 1 JPMorgan 1,080 194  Second largest provider of U.S. Small-Cap 2

  16. Slide 16: The Stifel Research Model

    Institutional Group – Research The Stifel Research Model The Stifel Research Model Research Accolades  >50% of analysts worked in the field they cover Proven, Consistent - Qualitative Results  Only firm ranked in the top 12 each year for the last 8  ~35% of analysts initially joined as associates

  17. Slide 17: Institutional Group – Equity Sales and Trading

    Institutional Group – Equity Sales and Trading Powerful Platform Spanning North America and Europe Institutional Equity Sales Equity Trading  130 person sales force, commission based  40 coverage traders located in  Experts in small and mid cap growth and value  Baltimore, New York, Boston, Dall

  18. Slide 18: Institutional Group – Fixed Income

    Institutional Group – Fixed Income Strong Fixed Income Capital Markets Capabilities Overview Client Distribution  Comprehensive platform  Approximately 50 traders averaging 14 years of experience  Annual client trade volume approaching $300 billion  Institutional Investor All-Star nominated team

  19. Slide 19: Institutional Group – Investment Banking

    Institutional Group – Investment Banking Accomplished U.S. Equity Underwriting Franchise – All Equity Transactions All Managed Equity Deals Since 2005 Bookrun Equity Deals Since 2005 ($ in billions) # of $ ($ in billions) # of % $ Rank Firm Deals Volume Rank Firm Deals Bookrun Volume 1 Bank of Ameri

  20. Slide 20: IV. Financial Results

    STIFEL FINANCIAL IV. Financial Results

  21. Slide 21: Stifel Financial Corp. Results

    Stifel Financial Corp. Results Year ended December 31, 2011 Year Ended December 31, 2011 Year Ended 12/31/10 % ($ in thousands, except per share amounts) GAAP Non-core (1) Non-GAAP (Non-GAAP) Change (2) Net revenues $ 1,416,562 $ 112 $ 1,416,674 $ 1,384,152 2.3% Compensation and benefits 900,421 (1,

  22. Slide 22: Sources of Revenues

    Sources of Revenues Year Ended % ($ in thousands) 12/31/11 12/31/10 Change Commissions $ 561,081 $ 445,260 26.0% Principal transactions 343,213 453,533 (24.3%) Asset mgt and service fees 228,834 193,159 18.5% Capital raising 124,648 135,898 (8.3%) Advisory 74,936 82,206 (8.8%) Investment banking 199

  23. Slide 23: Brokerage Revenues

    Brokerage Revenues Year Ended % ($ in thousands) 12/31/11 12/31/10 Change Taxable debt $ 185,192 $ 231,930 (20.2%) Municipal debt 83,454 75,484 10.6% Equities 34,837 90,739 (61.6%) Other 39,730 55,380 (28.3%) Principal transactions $ 343,213 $ 453,533 (24.3%) Commissions 561,081 445,260 26.0% $ 904,

  24. Slide 24: Core Segment Comparison

    Core Segment Comparison Year Ended % ($ in thousands) 12/31/11 12/31/10 Change Net revenues: Global Wealth Management $ 908,158 $ 843,269 7.7% Institutional Group 507,397 541,839 (6.4%) Other 1,119 (956) nm $ 1,416,674 $ 1,384,152 2.3% Operating contribution: Global Wealth Management $ 235,267 $ 194

  25. Slide 25: Statement of Financial Condition

    Statement of Financial Condition As of December 31, 2011 Total Assets ($ in Billions) Total Capitalization ($ in Billions) $5.0 $1.5 $1.4 $5.0 $1.3 $0.1 $0.1 $4.2 $1.2 $4.0 $1.0 $3.2 $0.9 $0.1 $3.0 $0.7 $0.6 $0.5 $0.1 $1.3 $1.3 $2.0 $1.5 $1.6 $0.1 $0.9 $1.1 $0.3 $1.0 $0.8 $0.3 $0.3 $0.6 $0.1 $0.4 $0

  26. Slide 26: V. Conclusion

    STIFEL FINANCIAL

  27. Slide 27: Opportunities Drive our Growth

    Opportunities Drive our Growth Stifel is Well-Positioned to Take Advantage of Opportunities Strategic Initiatives  Attract and retain high-quality talent  Continue building client facing, agency-only businesses  Continue to expand private client footprint in the U.S.  Continue to expand institut

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