Stifel Financial Corporation · NYSE:SF

Stifel Financial — JMP Securities Financial Services Conference 2018

39 slides from Stifel Financial's conference presentation, Jun 19, 2018

  1. Slide 1: Investor Presentation – JMP Securities Financial Services Conference

    Investor Presentation JMP Securities Financial Services Conference June 19, 2018

  2. 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

  3. Slide 3: Our Strategy

    Our Strategy STIFEL

  4. Slide 4: Strategic Vision

    Strategic Vision To build a premier wealth management and investment banking firm Global Wealth Management Institutional Private Asset Bank Equities Fixed Investment Research Client Management Sales + Income Banking Trading Sales + Trading 2,266 financial $29B in total $15B in assets Experienced sal

  5. Slide 5: A History of Growth

    A History of Growth 2018 2017 Ziegler Wealth 2016 City 2015 Eaton Partners Securities Management Business Barclays Wealth & ISM Capital Bancshares Inc. 2014 Investment Management, De La Rosa, Sterne Agee, Oriel Securities, 2013 1919 Investment Counsel, Acacia Bank & Ziegler Merchant Capital 2013 Lot

  6. Slide 6: 10 Years of Substantial Growth

    10 Years of Substantial Growth Revenue % of % of Ratios & Metrics 2017 Revenue 2007 Revenue Change 2017 2007 Change Income Statement Expense Ratios* Total net revenue $2,928 $763 284% Total comp. ratio 61.2% 64.7% -350 bps Brokerage $1,076 37% $455 60% 137% Total non-comp. ratio 21.7% 20.8% 90 bps G

  7. Slide 7: Driving Shareholder Value Through Deal Integration & Balance Sheet Growth

    Driving Shareholder Value Through Deal Integration & Balance Sheet Growth 7

  8. Slide 8: Balance Sheet Growth

    Balance Sheet Growth $25,000 $21,715 $21,384 $20,000 $19,129 Total Assets in Millions $15,000 Infrastructure $13,326 Build $9,518 $10,000 $9,009 $6,966 $4,952 $5,000 $4,213 $3,167 $1,558 $- 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1Q18 ` 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1Q1

  9. Slide 9: Bank Drove Significant Balance Sheet & Revenue Growth

    Bank Drove Significant Balance Sheet & Revenue Growth Impact of Bank Growth LTM on Consolidated Results Bank growth has been balanced between loans and investments: (mil.) 3/31/2017 3/31/2018 Loans: Total consolidated assets $19,136 $21,715 • Comprised of securities based loans, C&I, and Investment

  10. Slide 10: Stifel Overview

    Stifel Overview STIFEL 10

  11. Slide 11: Stifel – Premier Investment Bank and Wealth Management Firm

    Stifel – Premier Investment Bank and Wealth Management Firm Stifel at a Glance 2017 GAAP Net Revenue - $2.9 billion Global Wealth Management (GWM) Institutional Group (IG) 2017 Net Revenue - $1.8 billion 2017 Net Revenue - $1.1billion  Private Client  Equity & Fixed Income Capital Raising  Stifel

  12. Slide 12: 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  Firm focus  Large distribution  Good research  Size / scale  Trading  Growth investor access  Firm focus  Retail Issues  Stability (financial & pers

  13. Slide 13: 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 institu

  14. Slide 14: A Stable Track Record Through Multiple Business Cycles

    A Stable Track Record Through Multiple Business Cycles Non-GAAP Net Revenues(1) ($MM) Total Equity ($MM) $3,000 $2,928 $3,200 $2,862$2,918 $2,580 $2,738 $2,800 $2,500 $2,335 $2,492 $2,213 $2,320 $2,400 $1,978 $2,059 $2,000 $2,000 $1,594 $1,500 $1,384 $1,417 $1,600 $1,495 $1,254$1,302 $1,091 $1,200 $

  15. Slide 15: Global Wealth Management

    Global Wealth Management STIFEL

  16. Slide 16: Global Wealth Management (GWM)

    Global Wealth Management (GWM) Provides Securities Brokerage Services and Stifel Bank Products Overview National Presence  Grown from 600+ financial advisors in 2005 to 2,266 financial advisors currently  Proven organic growth and acquirer of private client business  Strategy of recruiting experi

  17. Slide 17: Building Scale and Capabilities into a $1.8B Revenue Segment

    Building Scale and Capabilities into a $1.8B Revenue Segment  55 advisors managing ~$5B in AUM  March 2018  ~40 advisors managing ~$4B in AUM  January 2017  ~100 advisors managing over $20B in AUM  December 2015 Private Client  ~130 advisors managing ~ $10B in AUM  June 2015  Customized inv

  18. Slide 18: GWM - Private Client Group

    GWM - Private Client Group Key Operating Metrics Financial Advisors(1) Branches(1) 2,500 2,291 2,282 2,266 400 2,244 361 360 361 355 2,077 2,103 1,987 2,041 350 330 1,885 1,935 317 2,000 307 285 291 300 272 1,500 250 1,315 196 1,163 200 1,000 148 150 100 500 50 0 0 2007 2008 2009 2010 2011 2012 2013

  19. Slide 19: GWM – Stifel Bank & Trust

    GWM – Stifel Bank & Trust Overview Key Statistics (000s) (3)  Acquired FirstService Bank, a St. Louis-based, Missouri- Total assets $15,155 chartered commercial bank, in April 2007 Total deposits 13,330  Stifel Financial became a bank holding company and Total equity 1,081 financial services holdi

  20. Slide 20: Growing Asset Management Capabilities

    Growing Asset Management Capabilities Asset Management Subsidiaries with $29.1 Billion in Client Assets Assets $11.3 Billion $11.4 Billion $3.8 Billion $2.3 Billion Chicago Baltimore St. Louis Birmingham, AL Baltimore Offices Milwaukee Cincinnati Florham Park, NJ Boston New York New York San Francis

  21. Slide 21: Institutional Group

    Institutional Group STIFEL

  22. Slide 22: Institutional Group

    Institutional Group Overview Net Revenues ($MM)(2)(3)(4) $1,200 Provides securities brokerage, trading, research, underwriting and $1,111  $1,014 $997 corporate advisory services $976 $900 $861  Largest provider of U.S. Equity Research $668 $626 $587 $605 $600 $559 3rd largest Equity trading platf

  23. Slide 23: Building Scale and Capabilities into a $1.0B Revenue Segment

    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  Enhances European debt capital markets capabilities  February 2016 Equities  Hig

  24. Slide 24: Institutional Group – Advisory

    Institutional Group – Advisory 2010-2018 YTD: Leadership in M&A of Public Companies and deals < $1bn. All Deals < $1 Billion in Value Public Deals < $1 Billion in Value Rank Investment Bank Sell-side Buy-side Total Value Rank Investment Bank Sell-side Buy-side Total Value 1 Goldman Sachs 380 246 626

  25. Slide 25: Institutional Group – Equity Underwriting

    Institutional Group – Equity Underwriting 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 JPMorgan 1,790 $968.4

  26. Slide 26: Institutional Group – Research

    Institutional Group – Research Largest U.S. Equity Research Platform U.S. Equity Research Coverage (1)(2) Stifel Research Highlights Rank Firm Companies Under Coverage Overall Mid Cap Small Cap  Largest provider of U.S. Equity Research 1 Stifel/KBW 1,137 407 299 2 JPMorgan 1,125 395 133  Largest p

  27. Slide 27: Institutional Group – Equity Sales and Trading

    Institutional Group – Equity Sales and Trading Powerful Platform Spanning North America and Europe Institutional Equity Sales Equity Trading  78 person sales force, commission-based  27 sales traders located in  Experts in small and mid cap growth and value  Baltimore, New York, Boston,, San Fra

  28. Slide 28: Institutional Group – Fixed Income Capital Markets

    Institutional Group – Fixed Income Capital Markets Strong Fixed Income Brokerage Capabilities Overview Client Distribution (1)(2)  Comprehensive platform Other 9% Broker/Dealer  85 traders with annual client trade volume approaching 7% $600 billion Insurance Co.  45-person Fixed Income Research a

  29. Slide 29: Institutional Group – Public Finance

    Institutional Group – Public Finance Overview  Stifel has ranked in the top ten nationally  Specialty sectors: for senior managed negotiated Education underwritings for the past five years, and  Stifel has ranked #1 nationally for senior  Local Government/Municipal managed K-12 negotiated underw

  30. Slide 30: Second Quarter Update & First Quarter Review

    Second Quarter Update & First Quarter Review 30

  31. Slide 31: Second Quarter Financial Update

    Second Quarter Financial Update Updated Guidance from First Quarter Earnings Conference Call: • Institutional Segment: • At this time, we estimate that second quarter 2018 Investment Banking revenues could be down between 10% - 20% from first quarter 2018 levels primarily as a result of the timing o

  32. Slide 32: First Quarter Results

    First Quarter Results Three Months Ended Three Months Ended Financial Highlights Non-GAAP U.S. GAAP (000s, except per share data) 1Q18 1Q17 % Change 4Q17 % Change 1Q18 1Q17 4Q17 Net revenues $750,549 $677,515 11% $804,085 -7% $750,358 $675,531 $804,085 Compensation ratio 60.5% 62.3% -180 bps 60.0% 5

  33. Slide 33: Investment Banking, Brokerage Revenue, & Asset Management & Service Fees

    Investment Banking, Brokerage Revenue, & Asset Management & Service Fees Investment banking: Three Months Ended (000s) 1Q18 1Q17 % Change 4Q17 % Change Capital raising: Global Wealth Management revenue $7,688 $11,854 -35% $8,899 -14% Equity Capital Markets 52,707 35,981 47% 57,800 -9% Fixed Income C

  34. Slide 34: GAAP to Non-GAAP Reconciliation

    GAAP to Non-GAAP Reconciliation Three months ended March 31, 2018 Three months GAAP to Non-GAAP Reconciliation for First Quarter 2018 GAAP Results ended (000s) 03/31/18 (000s) 03/31/18 GAAP Net Income $88,761 Total GAAP Compensation & benefits expense $457,893 Preferred Dividend 2,344 GAAP comp. rat

  35. Slide 35: Balance Sheet & Net Interest Margin

    Balance Sheet & Net Interest Margin Average Yields on Balance Sheet Net Interest Income Growth 1Q18 1Q17 % Change 4Q17 % Change $120 $111 $107 Assets: $100 $100 $92 Bank loans 3.50% 3.00% 50 bps 3.27% 23 bps Net Interest Income (mil.) $85 $80 Commercial 4.30% 3.90% 40 bps 3.86% 44 bps Securities bas

  36. Slide 36: Segment Results

    Segment Results STIFEL

  37. Slide 37: Global Wealth Management

    Global Wealth Management GWM Net Revenue Y/Y Sequential $500 millions 1Q18 Change Change $400 Global Wealth Management Revenue Net Revenue (mil) Commissions $119 -1% 1% $300 Principal Transactions $44 -15% -4% $200 Brokerage $163 -5% 0% Asset Management & Service Fees $196 20% 5% $100 Net Interest $

  38. Slide 38: Stifel Bank & Trust

    Stifel Bank & Trust % % (mil. except for %'s) 1Q18 1Q17 Change 4Q17 Change Assets: Investments $7,549 $6,557 15% $7,461 1% Mortgage Loans 2,634 2,214 19% 2,594 2% Commercial Loans 2,554 1,831 39% 2,438 5% Securities Based Loans 1,809 1,729 5% 1,819 -1% Consumer 25 43 -42% 92 -73% Total Loans, net $7

  39. Slide 39: Institutional Group

    Institutional Group Institutional Group Net Revenue Y/Y Sequential $350 millions 1Q18 Change Change GAAP Net Revenue (mil.) $300 Ins titutional Revenue $250 $200 Equity $150 Advisory $97 89% -18% $100 Underwriting $53 47% -9% $50 Brokerage $48 -11% -3% $0 1Q17 2Q17 3Q17 4Q17 1Q18 Total Equity Capita

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