Stifel Financial Corporation · NYSE:SF
Stifel Financial — Investor Presentation (November 2013)
36 slides from Stifel Financial's investor presentation, Nov 19, 2013
Slide 1: Stifel Investor Presentation
Exhibit 99.1 Stifel Investor Presentation November 2013
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: Market Overview
STIFEL Market Overview
Slide 4: Market Overview: Domestic Equity Flows, Equity Risk Premium
Market Overview Domestic Equity Flows Equity Risk Premium 4
Slide 5: Stifel Overview
STIFEL Stifel Overview
Slide 6: Stifel Overview
Stifel Overview Stifel Financial (NYSE: SF) Global Wealth Management Institutional Group Private Client Independent Research Stifel Bank & Trust Institutional Equity & Fixed Income Customer Financing Brokerage Asset Management Equity & Fixed Income Capital Raising M&A Advisory / Restructuring Nation
Slide 7: Stifel's Market Opportunity
Stifel’s Market Opportunity Stifel’s Differentiated Value Proposition: Growth, Scale, and Stability Bulge Bracket Middle Market Size / scale Size / scale Firm focus Large distribution Firm focus Good research Trading Stability (financial & Growth investor access Retail personnel) Large distribution
Slide 8: Strategy: Building the Premier Investment Bank
Strategy: Building the Premier Investment Bank Position Stifel to Take Advantage of Opportunities Unburdened by capital constraints Low leverage business model and conservative risk management Built the Company through 12 acquisitions since 2005; prudently evaluate all opportunities Capitalize on he
Slide 9: A Growth Story…
A Growth Story… Net Revenues ($MM) (1) Core Net Income ($MM) (1) Total Equity ($MM) (2) Financial Advisors (3) (4) Total Client Assets ($BN) Book Value Per Share _________________________________________________________ (1) CAGR reflects years 2006 to 2012. (2) Client assets - Includes FDIC-insured
Slide 10: Building Scale…
Building Scale… Each merger has been accretive to Stifel Retention remains high Asset Management Growth Focused Announced October 2013 Investment Banking Research, Sales and Trading Achieved cost efficiencies July 2010 Clean portfolio of 1-4 family Private Client residential mortgages 56 UBS Branche
Slide 11: Stability Achieved Through A Balanced Business Model
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 Contribution 9 mo 2012 9 mo 2013 9 mo 20
Slide 12: Strong Balance Sheet Facilitates Growth
Strong Balance Sheet Facilitates Growth As September 30, 2013 Total Assets ($ in Billions) Total Capitalization ($ in Billions) Leverage Ratio Book Value Per Share (1) (1)Per share information adjusted for April 2011 three-for-two stock split 12
Slide 13: Top Performing Stock
Top Performing Stock Cumulative Price Appreciation As of November 12, 2013 Since 12/31/12 Since 12/31/07 Since 12/31/00 Morgan Stanley 55.65% Stifel Financial Corp. 82.97% Stifel Financial Corp. 1027.47% Stifel Financial Corp. 33.72% Raymond James Financial 40.63% Raymond James Financial 196.32% Gol
Slide 14: Opportunities Drive our Growth
Opportunities Drive our Growth Initiatives Attract and retain high-quality talent Continue to expand our private client footprint in the U.S. Continue to expand fixed income businesses Continue to expand investment banking capabilities Focus on quality asset generation within Stifel Bank Expand trad
Slide 15: Recent Merger Updates
STIFEL Recent Merger Updates
Slide 16: Recent Merger Updates
Recent Merger Updates We announced KBW transaction November 5, 2012 and closed February 15, 2013. Integration has gone very well. YTD advisory success: #1 by number of bank mergers (1) #1 by number of Insurance mergers (2) #2 by number of FIG mergers (1) #3 by bank deal value (1) Seeing increased ma
Slide 17: Recent Merger Updates
Recent Merger Updates Previously announced acquisition of Acacia Federal Savings Bank ($525mm in assets) by Stifel Bank & Trust closed on October 31, 2013 at an attractive discount to tangible book value. All non-performing loans were excluded from transaction Expect significant synergies in connect
Slide 18: Global Wealth Management
STIFEL Global Wealth Management
Slide 19: Global Wealth Management
Global Wealth Management Provides Securities Brokerage Services and Stifel Bank Products Overview Grown from 600+ financial advisors in 2005 to over 2,000 (1) financial advisors currently Proven organic growth and acquirer of private client business (56 UBS branches, Butler Wick, Ryan Beck) Retail i
Slide 20: Global Wealth Management: Opportunity Through Growth
Global Wealth Management Opportunity Through Growth GWM Broker Growth (1) GWM Branch Growth GWM Account Growth GWM Assets Under Management Growth ($MM) (2) _________________________________________________________ (1) Includes Independent Contractors. (2) Client assets include FDIC-insured products
Slide 21: 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 and Missouri-chartered commercial bank, in April 2007 mortgage loans) within the GWM client base, including establishi
Slide 22: Institutional Group
STIFEL Institutional Group
Slide 23: Institutional Group
Institutional Group Overview Net Revenues ($MM) (2)(3) Provides securities brokerage, trading, research, underwriting and corporate advisory services Largest providers of U.S. Equity Research nd 2 largest Equity trading platform in the U.S. outside of the Bulge Bracket (1) Full Service Investment Ba
Slide 24: Institutional Group – Research
Institutional Group – Research Largest U.S. Equity Research Platform U.S. Equity Research Coverage (1) Stifel Research Highlights Rank Firm Overall Mid Cap Small Cap 1 Stifel/KBW 1,341 499 428 Largest provider of U.S. equity research 2 BofA Merrill Lynch 1,142 448 153 3 JPMorgan 1,115 423 162 #1 in
Slide 25: Institutional Group – Equity Sales and Trading
Institutional Group – Equity Sales and Trading Powerful Platform Spanning North America and Europe Institutional Equity Sales Equity Trading 110 person sales force, commission based 53 sales traders located in Experts in small and mid cap growth and value Baltimore, New York, Boston, Dallas, San Tea
Slide 26: Institutional Group – Fixed Income
Institutional Group – Fixed Income Strong Fixed Income Capital Markets Capabilities Overview Client Distribution (1)(2) Comprehensive platform 69 traders with annual client trade volume approaching $400 billion 33-person Fixed Income Research and Strategy Group Widespread distribution More than 180
Slide 27: Investment Banking
Investment Banking Accomplished U.S. Equity Underwriting Franchise – All Equity Transactions All Managed Equity Deals Since 2010 Bookrun Equity Deals Since 2010 ($ in billions) # of $ ($ in billions) # of $ Rank Firm Deals Volume Rank Firm Deals Volume 1 Bank of America Merrill Lynch 781 $469.7 1 Ba
Slide 28: Financial Results
STIFEL Financial Results
Slide 29: Stifel Financial Results
Stifel Financial Results Three months ended September 30, 2013 _________________________________________________________ (1) Non-core adjustments consist of merger-related revenues and expenses associated with our acquisitions of KBW, the Knight Capital Fixed Income business, Miller Buckfire and a U
Slide 30: Unusual Items
Unusual Items Merger-Related Expenses, Discontinued Ops, & U.S. Tax Benefit _________________________________________________________ (1) Included in compensation expense is a $5.0 million compensation accrual as a result of the recognition of the U.S. tax benefit during the three months ended Septe
Slide 31: Discontinued Operations
Discontinued Operations STIFEL Three Months Ended Nine Months Ended (S in thousands) 9/30/13 9/30/12 6/30/13 9/30/13 9/30/12 Net revenues $ 4,696 $ 5,923 $ 5,059 |$ 12,930 $ 11,990 Non-interest expenses: Restructuring expenses 5,516 5,516 Operating expenses 4,418 5,420 6,435 14,341 16,581 Total non-
Slide 32: Stifel Financial Results
Stifel Financial Results Nine months ended September 30, 2013 _________________________________________________________ (1) Non-core adjustments consist of a charges related to expensing stock awards issued as retention in connection with the acquisitions of KBW and the Knight Capital Fixed Income b
Slide 33: Sources of Revenues
Sources of Revenues Three Months Ended Nine Months Ended % % % ($ in thousands) 9/30/13 9/30/12 Change 6/30/13 Change 9/30/13 9/30/12 Change Commissions $ 145,837 $ 125,509 16.2% $ 154,795 (5.8%) $ 446,498 $ 370,107 20.6% Principal transactions 122,583 102,474 19.6% 111,306 10.1% 341,153 311,420 9.5
Slide 34: Core Non-Interest Expenses
Core Non-Interest Expenses Three months ended September 30, 2013 Three Months Ended % of Net revenues (1) (1) ($ in thousands) 6/30/13 6/30/12 % Change 3/31/13 % Change 6/30/13 6/30/12 3/31/13 Net revenues $ 500,472 $ 374,407 33.7% $ 441,788 13.3% 100.0% 100.0% 100.0% Compensation and benefits 294,4
Slide 35: Core Non-Interest Expenses
Core Non-Interest Expenses Nine months ended September 30, 2013 Nine Months Ended % of Net revenues (1) (1) ($ in thousands) 9/30/13 9/30/12 % Change 9/30/13 9/30/12 Net revenues $ 1,413,660 $ 1,182,830 19.5% 100.0% 100.0% Compensation and benefits 826,314 699,601 18.1% 58.5% 59.1% (2) Transitional
Slide 36: Segment Comparison
Segment Comparison _________________________________________________________ (1) Core (non-GAAP) results for the three and nine months ended September 30, 2012 are the same as GAAP results. 36
Stifel Financial — Investor Presentation (November 2013) on 6ix