Stifel Financial Corporation · NYSE:SF
Stifel Financial — Q3 2018 Earnings Presentation
17 slides from Stifel Financial's earnings presentation, Oct 30, 2018
Slide 1: 3rd Quarter Financial Results Presentation
3rd Quarter Financial Results Presentation October 30, 2018
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: Highlights & Third Quarter Results
Highlights & Third Quarter Results • Non-GAAP Net Revenue of $738 million, up 2% Y/Y. • Non-GAAP ROE of 15.5% & Non-GAAP ROTCE of 25.2% • Record Asset Management & Services Fees of $201 million, up • Added 31 Net New Advisors in Quarter 12% Y/Y. • Record Client AUA of $289 billion • Record Net Inter
Slide 4: Highlights & Nine Month Results
Highlights & Nine Month Results • GAAP EPS of $3.35, up 52% • Record Net Interest Income of $350 million, up 26% • Non-GAAP EPS of $3.72, up 48% • Non-GAAP Comp. Ratio of 58.7%, down 290 bps • Non-GAAP Net Revenue of $2.23 billion, up 5% • Non-GAAP Pre-tax Margin of 18.8%, up 280 bps • Record Asset
Slide 5: Fourth Quarter 2018 & Initial 2019 Outlook
Fourth Quarter 2018 & Initial 2019 Outlook millions 3Q18 Actual 4Q18 Estimate 2018 Estimate 2019 Estimate Operating Net Revenue $617 $637 - $673 $2,519- $2,555 $2,470 - $2,800 Net Interest Income $121 $123 - $127 $473 - $477 $530 - $550 Net Revenue $738 $760 - $800 $2,992 - $3,032 $3,000 - $3,350 Co
Slide 6: Segment Results
Segment Results 5
Slide 7: Global Wealth Management
Global Wealth Management Y/Y Sequential YTD millions 3Q18 Change Change 2018 Change Gl obal We al th Manageme nt Re venue Commissions $118 2% 0% $355 0% Principal Transactions $41 -4% 0% $126 -11% Brokerage $159 0% 0% $481 -3% Asset Management & Service Fees $201 12% 1% $596 16% Net Interest $127 24
Slide 8: Institutional Group
Institutional Group Y/Y Sequen tial YTD Institutional Group Net Revenue millions 3Q18 Change Chan ge 2018 Chan ge In s titution al Rev en ue $350 Equit y GAAP Net Revenue (mil.) $300 Advisory $73 -23% -9% $250 10% $250 Underwriting $65 50% 48% $162 30% $200 Brokerage $44 -3% -3% $137 -8% $150 Equity
Slide 9: Revenue & Expenses
Revenue & Expenses 8
Slide 10: Brokerage Revenue and Asset Management & Service Fees
Brokerage Revenue and Asset Management & Service Fees B roker age Revenue Three Months Ended YTD (0 00s) 3Q1 8 3Q17 % Change 2 Q18 % Change 201 8 2 017 % Change Global Wealth Management brokerage revenue $158,818 $158,334 0% $159,290 0% $480,842 $497,913 -3% Institutional brokerage: Equity Capital M
Slide 11: Investment Banking Revenue
Investment Banking Revenue Investment banking: Three Months Ended YTD (00 0s) 3Q18 3 Q17 % Change 2Q18 % Change 20 18 2 017 % Change Capital raising: Global Wealth Management revenue $7,722 $9,072 -15% $7,968 -3% $23,378 $31,567 -26% Equity Capital Markets 65,000 43,277 50% 44,087 47% 161,793 124,92
Slide 12: Net Interest Income
Net Interest Income Average Yields on Balance Sheet Net Interest Income Growth 3Q18 3Q17 % Change 2Q18 % Change $140 $117 $121 Assets: $120 $107 $111 Bank loans 3.88% 3.10% 78 bps 3.63% 25 bps Net Interest Income (mil.) $100 $100 Commercial 4.62% 3.96% 66 bps 4.36% 26 bps $80 Securities based 3.94%
Slide 13: Stifel Bancorp, Inc.
Stifel Bancorp, Inc. % % (mil. except for %'s) 3Q18 3Q17 Change 2Q18 Change Assets: Mortgage Loans 2,792 2,518 11% 2,704 3% Commercial Loans 3,127 2,380 31% 2,677 17% Securities Based Loans 1,836 1,840 0% 1,846 -1% Commercial Real Estate 329 79 316% 127 159% Loans Held for Sale 262 166 58% 211 24% T
Slide 14: Expenses
Expenses Non-GAAP Expenses & Thr ee Months Ended Compensation Ratio 62.0% Pre-tax Income % % 61.1% 61.0% 60.0% 60.5% 3Q18 3Q17 Change 2Q18 Change 60.0% 59.0% (millions) 59.0% 58.0% Compensation $417 $440 -5% $438 -5%/ 57.0% 56.5% 56.0% Non-compensation $169 $160 6% $167 1%/ 55.0% 54.0% Pre-tax I nco
Slide 15: Balance Sheet
Balance Sheet 14
Slide 16: Balance Sheet
Balance Sheet Infrastructure Build ` 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1Q18 2Q18 3Q18 Tier 1 Leverage 32.3% 30.5% 25.6% 21.4% 17.7% 15.4% 16.5% 16.6% 10.2% 9.5% 9.6% 9.5% 9.6% Tier 1 Risk Based Capital 49.4% 40.5% 29.1% 27.4% 26.8% 26.7% 25.0% 26.3% 20.3% 19.0% 18.7% 18.4% 17.9% Risk
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