Stifel Financial Corporation · NYSE:SF
Stifel Financial — Q1 2015 Earnings Presentation
24 slides from Stifel Financial's earnings presentation, May 12, 2015
Slide 1: 1st Quarter 2015 Financial Results Presentation
Exhibit 99.1 1st Quarter 2015 Financial Results Presentation May 11, 2015
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements This presentationmay contain “forward-lookingstatements”within the meaningof the Private SecuritiesLitigation ReformActof 1995 that involve significantrisks, assumptions,and uncertainties,including statementsrelating to the market opportunity and future business
Slide 3: Chairman's Comments
Chairman’s Comments “We are pleasedwith our first quarter results, which represent our third best revenuequarter. That said,while investmentbankingwasa goodquarter, resultscanand will be lumpy, especiallyaswe continue to build-out our capabilities. Looking forward, we are optimistic about the contin
Slide 4: Market Overview
Market Overview Market Valuations Rates Volatility / Volumes Underwriting Volumes and M&A Municipal U.S. U.S. U.S. 10yr Equity Corporate U.S. ECM U.S. DCM Bond DCM Announced Completed S&P 500 Dow Yield VIX ADV Bond ADV ($) ($) ($) M&A ($) M&A ($) 2015 Q1 2,068 17,776 1.92% 15.3 6,916 24,777 89,751 5
Slide 5: Financial Results
Financial Results
Slide 6: Stifel Financial Corp. Results
Stifel Financial Corp. Results Three months ended March 31, 2015 Three Months Ended March 31, 2015 Three Months Ended (1) (2) (2) ($ in thousands, except per share amounts) Non-GAAP Non-Core GAAP 3/31/14 % Change 12/31/14 % Change Total revenues $ 574,001 $ - $ 574,001 $ 557,342 3.0% $ 590,673 (2.8%
Slide 7: Q1 2015 Core Results vs. Estimates
Q1 2015 Core Results vs. Estimates 6
Slide 8: Source of Revenues
Source of Revenues Three Months Ended % % ($ in thousands) 3/31/15 3/31/14 Change 12/31/14 Change Commissions $ 180,302 $ 172,243 4.7% $ 174,990 3.0% Principal transactions 100,205 110,360 (9.2%) 94,109 6.5% Brokerage revenues 280,507 282,603 (0.7%) 269,099 4.2% Capital raising 75,646 76,811 (1.5%)
Slide 9: Brokerage & Investment Banking Revenues
Brokerage & Investment Banking Revenues Three Months Ended ($ in thousands) 3/31/15 3/31/14 % Change 12/31/14 % Change Global Wealth Management $ 157,995 $ 160,151 (1.3%) $ 160,022 (1.3%) Institutional Group Equity brokerage 61,803 64,456 (4.1%) 67,273 (8.1%) Fixed income brokerage 60,709 57,995 4.7
Slide 10: Core Non-Interest Expenses
Core Non-Interest Expenses Three months ended March 31, 2015 Three Months Ended % of Net revenues (1) (1) ($ in thousands) 3/31/15 3/31/14 % Change 12/31/14 % Change 3/31/15 3/31/14 12/31/14 Net revenues $ 563,694 $ 548,445 2.8% $ 578,069 (2.5%) 100.0% 100.0% 100.0% Compensation and benefits 329,228
Slide 11: Segment Comparison Core
Segment Comparison Core - Three Months Ended % ($ in thousands) 3/31/15 3/31/14 % Change 12/31/14 Change Net revenues: Global Wealth Management $ 329,410 $ 297,183 10.8% $ 310,980 5.9% Institutional Group 238,607 249,987 (4.6%) 272,686 (12.5%) Other (4,323) 1,275 nm (5,597) (22.8%) $ 563,694 $ 548,4
Slide 12: Global Wealth Management
Global Wealth Management Three Months Ended ($ in thousands) 3/31/15 3/31/14 % Change 12/31/14 % Change Commissions $ 116,214 $ 112,997 2.8% $ 115,351 0.7% Principal transactions 41,781 47,154 (11.4%) 44,671 (6.5%) Asset management & service fees 113,666 89,130 27.5% 105,511 7.7% Net interest 37,924
Slide 13: Stifel Bank & Trust
Stifel Bank & Trust (an operating unit of GWM) _________________________________________________________ Note: Actual amounts presented above are as of period-end and yields are based off of quarter-to-date averages. (1) Investment securities includes available-for-sale and held-to-maturity securiti
Slide 14: Institutional Group
Institutional Group Three Months Ended ($ in thousands) 3/31/15 3/31/14 % Change 12/31/14 % Change Net revenues $ 238,607 $ 249,987 (4.6%) $ 272,686 (12.5%) Compensation and benefits 149,411 154,234 (3.1%) 176,897 (15.5%) Non-comp operating expenses 56,865 50,830 11.9% 61,002 (6.8%) Total non-intere
Slide 15: Financial Condition
Financial Condition
Slide 16: Capital Structure
Capital Structure (in thousands, except ratios) As of As of ($ in thousands) 3/31/15 3/31/14 12/31/14 Total Assets $ 9,373,137 $ 9,387,814 $ 9,518,151 Stockholders' Equity 2,363,244 2,100,140 2,322,038 4.250% senior notes, due 2024 $ 300,000 $ - $ 300,000 5.375% senior notes, due 2022 150,000 150,00
Slide 17: Historical Asset Balances
Historical Asset Balances (in thousands) 16
Slide 18: Other Financial Data
Other Financial Data As of As of 3/31/15 3/31/14 % Change 12/31/14 % Change Total assets (000s): Stifel Nicolaus & Stifel Financial $ 4,083,788 $ 4,376,827 (6.7%) $ 4,280,181 (4.6%) Stifel Bank 5,289,349 5,010,987 5.6% 5,237,970 1.0% Total assets 9,373,137 $ 9,387,814 (0.2%) 9,518,151 (1.5%) Total s
Slide 19: Acquisition Updates
Acquisition Updates
Slide 20: Strategic Vision
Strategic Vision To buildthe premier investment banking and wealth management firm Global Wealth Management Institutional Private Client Asset Bank Equities Sales Fixed Income Investment Research Management + Trading Sales + Banking Trading Over 2,800 $20B in total $5.3B in assets Experienced sales
Slide 21: Organic vs. Acquisition Growth
Organic vs. Acquisition Growth Organic growth has accounted for approximately 45% and acquisitions have accounted for approximately 55% of Stifel’s growth since 2004 Outlook on acquisitions: Position Stifel to take advantage of opportunities Fixed Income Equities Sales Investment Revenues Total Priv
Slide 22: Sterne Agee Acquisition Update
Sterne Agee Acquisition Update Expected to close on or around the end of May 2015 100% retention of Sterne Agee’s traditional financial advisors Stifel and Sterne Agee sold Sterne Agee’s Institutional Equities business, including Equity Sales, Trading and Research to CRT Capital Group Accomplished o
Slide 23: Non-Core Deal Costs
Non-Core Deal Costs Three months ended 3/31/15 Estimate ($ in thousands) Actual Estimate 6/30/15 9/30/15 12/31/15 3/31/16 6/30/16 Existing acquisitions Duplicative operating expenses: Acacia Federal Savings Bank - - - - - - - De La Rosa & Co., Inc. 86 120 120 120 - - - Keefe, Bruyette & Woods, Inc.
Slide 24: Q&A
Q&A