Stifel Financial Corporation · NYSE:SF
Stifel Financial — Q1 2017 Earnings Presentation
16 slides from Stifel Financial's earnings presentation, May 1, 2017
Slide 1: 1st Quarter 2017 Financial Results Presentation
1st Quarter 2017 Financial Results Presentation May 1, 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: 1st Quarter Highlights & Results
1st Quarter Highlights & Results • Record GAAP Net Revenue of $676 million • Total Assets of $19.14 billion • Record Net Revenue for Global Wealth • Bank NIM of 2.66% up 42 bps from Prior Management Segment of $443 million. Quarter • Record Pre-Tax Operating Income for Global Wealth Management of $1
Slide 4: Brokerage & Investment Banking Revenue
Brokerage & Investment Banking Revenue 3
Slide 5: Brokerage & Investment Banking Revenue
Brokerage & Investment Banking Revenue Brokerage: Three Months Ended (000s) 1Q17 1Q16 % Change 4Q16 % Change Global Wealth Management brokerage revenue $171,494 $172,965 -0.9% $160,017 7.2% Institutional brokerage: Equity 53,820 62,273 -13.6% 64,007 -15.9% Fixed income 66,817 83,640 -20.1% 65,712 1.
Slide 6: Segment Results
Segment Results 5
Slide 7: Global Wealth Management
Global Wealth Management • Net revenue in the GWM segment was $443 mil., up 9% sequentially & 17% Y/Y • Brokerage revenue increased 7% sequentially but declined 1% Y/Y • Ex. Sterne IBC & Clearing, Brokerage revenue increased 9% Y/Y • Net interest income increased 14% sequentially & 73% Y/Y • 2,299 t
Slide 8: Stifel Bank & Trust
Stifel Bank & Trust % % (mil. except for %'s) 1Q17 1Q16 Change 4Q16 Change Assets: Investments $6,557 $4,148 58% $6,209 6% Mortgage Loans 2,214 731 203% 2,161 2% Commercial Loans 1,831 1,295 41% 1,710 7% Securities Based Loans 1,729 1,346 28% 1,614 7% Total Loans, net $5,865 $3,467 69% $5,591 5% Loa
Slide 9: Institutional Group
Institutional Group • Total net revenue of $237 mil. decreased 6% sequentially & 2% Y/Y • Investment banking revenue of $115 mil. decreased 6% sequentially but increased 25% Y/Y • Equity underwriting of $37 mil. decreased 5% sequentially but increased 97% Y/Y • Debt underwriting of $25mil. decreased
Slide 10: Balance Sheet & Net Interest Income
Balance Sheet & Net Interest Income 9
Slide 11: Balance Sheet Growth
Balance Sheet Growth Infrastructure Build Ratio 2008 2009 2010 2011 2012 2013 2014 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2018E 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% 10.0% Tier 1 Risk Based Capital 49.4% 40.5% 29.1% 27.4% 26.8% 26.7% 25.0% 29
Slide 12: Balance Sheet & Net Interest Margin
Balance Sheet & Net Interest Margin Net Interest Income Drivers: • Total assets of $19.14 billion were flat sequentially but increased 35% Y/Y • Average interest earning assets decreased to $15.2 billion down 3% sequentially but up 55% Y/Y • NIM increased to 224 bps , up 33 bps sequentially & 26 bps
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 March 31, 2017 Three months GAAP to Non-GAAP Reconciliation for Fourth Quarter 2016 GAAP Resul ts ended (000s) 03/31/17 (000s) 03/31/17 GAAP Net Income $65,512 Total GAAP Compensation & benefits expense $436,387 Preferred Dividend 2,344 GAAP comp. r
Slide 15: Department of Labor Fiduciary Rule & Interest Rate Sensitivity Update
Department of Labor Fiduciary Rule & Interest Rate Sensitivity Update 14
Slide 16: Stifel
STIFEL