Stifel Financial Corporation · NYSE:SF
Stifel Financial — Q3 2017 Earnings Presentation
17 slides from Stifel Financial's earnings presentation, Oct 30, 2017
Slide 1: 3rd Quarter 2017 Financial Results Presentation
3rd Quarter 2017 Financial Results Presentation October 30, 2017
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: 3rd Quarter Highlights & Results
3rd Quarter Highlights & Results • Record Net Revenue for Global Wealth Management Segment of • Assets of $20.48 billion $454 million. • Bank NIM of 2.80% up 3 bps from Prior Quarter • Record Pre-Tax Operating Income for Global Wealth Management of $162 million • Consolidated NIM 240 bps up 11 bps f
Slide 4: Net Revenue Summary
Net Revenue Summary Net Revenue: Three Months Ended (000s) 3Q17 3Q16 % Change 2Q17 % Change Brokerage: Commissions $162,612 $171,272 -5.1% $172,264 -5.6% Principal transactions 87,010 117,002 -25.6% 95,703 -9.1% Total Brokerage 249,622 288,274 -13.4% 267,967 -6.8% Investment banking: Capital raising
Slide 5: Investment Banking, Brokerage, & Asset Management & Service Fees
Investment Banking, Brokerage, & Asset Management & Service Fees Investment banking: Three Months Ended (000s) 3Q17 3Q16 % Change 2Q17 % Change Capital raising: Global Wealth Management revenue $9,072 $12,212 -26% $10,641 -15% Equity 43,277 20,782 108% 45,664 -5% Fixed income 27,573 25,483 8% 46,495
Slide 6: Net Interest Income
Net Interest Income Net Interest Income Growth Average Yields on Balance Sheet $120 3Q'17 3Q'16 % Change 2Q'17 % Change $100 Assets: $100 $92 Net Interest Income (mil.) $85 $75 Bank loans 3.27% 2.93% 34 bps 3.10% 17 bps $80 $55 Commercial 3.96% 3.52% 44 bps 3.76% 20 bps $60 Securities based 3.09% 2.
Slide 7: Segment Results
Segment Results 6
Slide 8: Global Wealth Management
Global Wealth Management Y/Y Sequential millions 3Q17 Change Change Global Wealth Management Revenue Commissions $115 -2% -4% Principal Transactions $43 -10% -10% Brokerage $158 -4% -6% Asset Management & Service Fees $180 26% 4% Net Interest $103 61% 8% Investment Banking $9 -26% -15% Other $3 -33%
Slide 9: Stifel Bank & Trust
Stifel Bank & Trust % % (mil. except for %'s) 3Q17 3Q16 Change 2Q17 Change Assets: Investments $7,238 $5,377 35% $6,753 7% Mortgage Loans 2,518 1,804 40% 2,249 12% Commercial Loans 2,380 1,558 53% 2,064 15% Securities Based Loans 1,840 1,453 27% 1,756 5% Total Loans, net $6,783 $4,957 37% $6,160 10%
Slide 10: Institutional Group
Institutional Group Y/Y Sequen tial millions 3Q17 Chan ge Change In s titutional Reven ue Equit y Advisory $95 13% 17% Underwriting $43 108% -5% Brokerage $45 -11% -11% Total Equity Capital Markets Revenue $183 16% 3% Fix ed Inco me Institutional Group Pre-tax Margin & Advisory $7 228% 359% 25% Cont
Slide 11: Balance Sheet
Balance Sheet 10
Slide 12: Balance Sheet
Balance Sheet Infrastructure Build Ratio 2008 2009 2010 2011 2012 2013 2014 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 Tier 1 Leverage 32.3% 30.5% 25.6% 21.4% 17.7% 15.4% 16.5% 16.4% 16.6% 11.6% 11.5% 11.8% 10.2% 10.1% 10.3% 10.4% Tier 1 Risk Based Capital 49.4% 40.5% 29.1% 27.4% 26.8% 26.7% 25.0%
Slide 13: GAAP & Non-GAAP Reconciliation
GAAP & Non-GAAP Reconciliation 12
Slide 14: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Three months ended September 30, 2017 Three months GAAP to Non-GAAP Reconciliation for Third Quarter 2017 GAAP Resul ts ended (000s) 09/30/17 (000s) 09/30/17 GAAP Net Income $66,536 Total GAAP Compensation & benefits expense $448,410 Preferred Dividend 2,343 GAAP comp
Slide 15: Regulatory, Interest Rate Sensitivity, & Progress Update
Regulatory, Interest Rate Sensitivity, & Progress Update 14
Slide 16: Executing on Strategic Plans
Executing on Strategic Plans 3Q17 millions Annualized 2015 Change Inc ome Statement Total net revenue $2,885 $2,335 24% Institutional net revenue $1,060 $976 9% Global Wealth Management net revenue $1,816 $1,377 32% Expense Ratios Total comp. ratio 61.1% 64.5% -340 bps Total non-comp. ratio 22.1% 25
Slide 17: STIFEL
STIFEL