Stifel Financial Corporation · NYSE:SF
Stifel Financial — Q3 2016 Earnings Presentation
19 slides from Stifel Financial's earnings presentation, Nov 3, 2016
Slide 1: 3rd Quarter 2016 Financial Results Presentation
3rd Quarter 2016 Financial Results Presentation November 3, 2016
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
3rd Quarter Highlights Financial Highlights Three Months Ended Non-GAAP (000s, except per share data) 3Q16 3Q15 2Q16 3Q16 U.S. GAAP Net revenues $641,986 $591,575 $652,143 $645,767 Compensation ratio 67.6% 68.3% 70.5% 62.5% Non-compensation ratio 28.0% 27.9% 27.0% 23.5% Pre-tax operating margin 4.4%
Slide 4: GAAP & Non-GAAP Reconciliation
GAAP & Non-GAAP Reconciliation 3
Slide 5: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Three months ended September 30, 2016 Three months GAAP to Non-GAAP Reconciliation for Third Quarter 2016 GAAP Resul ts ended (000s) 09/30/16 (000s) 09/30/16 GAAP Net Income $17,814 Total GAAP Compensation & benefits expense $434,236 Preferred Dividend 1,563 GAAP comp
Slide 6: Merger Related Expenses & Duplicative Expenses
Merger Related Expenses & Duplicative Expenses Actual Initial Three Months Estimate (in $000s) 2015A 9/30/2016 12/31/2016E 2016E 2017E Total Total Acquisitions Barclays $12,854 $29,715 $4,900 $86,347 $15,500 $114,701 $115,000 Sterne Agee $102,037 $13,610 $44,401 $146,438 $126,500 Other* $46,391 $3,3
Slide 7: Brokerage & Investment Banking Revenue
Brokerage & Investment Banking Revenue 6
Slide 8: Brokerage & Investment Banking Revenue
Brokerage & Investment Banking Revenue Global Wealth Mangement: Three Months Ended (000s) 3Q16 3Q15 % Change 2Q16 % Change Global Wealth Mangement brokerage revenue $165,476 $169,319 -2.3% $172,178 -3.9% Institutional brokerage: Equity 51,004 59,769 -14.7% 55,008 -7.3% Fixed income 71,794 60,588 18.
Slide 9: Balance Sheet & Net Interest Income
Balance Sheet & Net Interest Income 8
Slide 10: Balance Sheet Growth
Balance Sheet Growth Infrastructure Build Ratio 2008 2009 2010 2011 2012 2013 2014 3Q15 4Q15 1Q16 2Q16 3Q16 Illustrative 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% 9.7% Tier 1 Risk Based Capital 49.4% 40.5% 29.1% 27.4% 26.8% 26.7% 25.0% 29.4% 26.3% 21.3%
Slide 11: Balance Sheet & Net Interest Margin
Balance Sheet & Net Interest Margin Net Interest Income Drivers: • Total assets increased to $17.2 bil. up 12% sequentially & 84% Y/Y • Average interest earning assets increased to $12.2 bil. up 13% sequentially & 93% Y/Y • NIM increased to 178 bps , up 7 bps sequentially but down 16 bps Y/Y. • NIM
Slide 12: Segment Results
Segment Results 11
Slide 13: Global Wealth Management
Global Wealth Management • Net revenue in the GWM segment was $390 mil., up 1% sequentially & 9% Y/Y • Brokerage revenue declined 4% sequentially & 2% Y/Y • Ex. Sterne IBC & Clearing, Brokerage revenue increased 4% sequentially • Net interest income increased 18% sequentially & 76% Y/Y • 2,280 total
Slide 14: Global Wealth Management
Global Wealth Management Three Months Ended Nine Months Ended % % % ($ in thousands) 9/30/16 9/30/15 Change 6/30/16 Change 9/30/16 9/30/15 Change Commi s s i ons $ 117,596 $ 134,476 (12.6%) $ 127,241 (7.6%) $ 376,390 $ 375,811 0.2% Pri nci pa l tra ns a cti ons 47,879 34,843 37.4% 44,938 6.5% 134,22
Slide 15: Stifel Bank & Trust
Stifel Bank & Trust Stifel Bank % % (mil. except for %'s) 3Q16 3Q15 Change 2Q16 Change Assets: Investments $5,377 $1,750 207% $4,580 17% Mortgage Loans 1,819 272 569% 1,242 46% Commercial Loans 1,824 1,261 45% 1,684 8% Securities Based Loans 1,452 1,004 45% 1,419 2% Consumer 93 22 323% 36 158% T ota
Slide 16: Institutional Group
Institutional Group Institutional Group Net Revenue $300 • Total net revenue of $259 mil. decreased 1% sequentially but increased 11% Y/Y GAAP Net Revenue (mil.) $250 • Investment banking revenue of $133 mil. increased 7% sequentially & 22% Y/Y $200 $150 • Equity underwriting of $21 mil. decreased $
Slide 17: Institutional Group
Institutional Group Three Months Ended Nine Months Ended % % % ($ in thousands) 9/30/16 9/30/15 Change 6/30/16 Change 9/30/16 9/30/15 Change Commi s s i ons $ 53,676 $ 59,607 (10.0%) $ 54,864 (2.2%) $ 174,916 $ 182,637 (4.2%) Pri nci pa l tra ns a cti ons 69,122 60,750 13.8% 81,488 (15.2%) 230,148 1
Slide 18: Department of Labor Fiduciary Rule & Interest Rate Sensitivity Update
Department of Labor Fiduciary Rule & Interest Rate Sensitivity Update 17
Slide 19: 18
18