Stifel Financial Corporation · NYSE:SF
Stifel Financial — Q4 2012 Earnings Presentation
26 slides from Stifel Financial's earnings presentation, Feb 25, 2013
Slide 1: 4th Quarter and Full-Year 2012 Financial Results Presentation
4th Quarter and Full-Year 2012 Financial Results Presentation February 25, 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: Chairman's Comments
Chairman’s Comments “2012 represented Stifel’s 17th consecutive year of record net revenues. This is a significant accomplishment, particularly given past market cycles. We remain focused on our goal of delivering superior client services, which has benefitted all Stifel constituents: clients, share
Slide 4: Financial Results
Financial Results 3
Slide 5: Stifel Financial Corp. Results - Three months ended December 31, 2012
Stifel Financial Corp. Results Three months ended December 31, 2012 Three Months Ended ($ in thousands, except per share amounts) 12/31/12 (1) 12/31/11 % Change 9/30/12 % Change Net revenues $ 417,830 $ 356,878 17.1% $ 420,080 (0.5%) Compensation and benefits 262,213 228,743 14.6% 267,652 (2.0%) Non
Slide 6: Stifel Financial Corp. Results - Year ended December 31, 2012
Stifel Financial Corp. Results Year ended December 31, 2012 Year Ended (1) ($ in thousands, except per share amounts) 12/31/12 12/31/11 % Change Net revenues $ 1,612,650 $ 1,416,562 13.8% Compensation and benefits 1,023,943 900,421 13.7% Non-comp operating expenses 362,835 377,533 (3.9%) Total non-i
Slide 7: 2012 Legacy Business vs. Investments
2012 Legacy Business vs. Investments 2012 Investments include hiring 152 financial advisors and 77 fixed income sales and trading professionals YTD1. ($ in thousands, except per share amounts) 12M2012 2 Legacy Investments Total Net revenues 1,567,133 45,517 1,612,650 Compensation and benefits 981,11
Slide 8: Source of Revenues
Source of Revenues Quarter Ended Year Ended % % ($ in thousands) 12/31/12 12/31/11 Change 9/30/12 % Change 12/31/12 12/31/11 Change Commissions $ 134,280 $ 123,737 8.5% $ 127,966 4.9% $ 512,976 $ 561,081 (8.6%) Principal transactions 97,708 93,963 4.0% 102,979 (5.1%) 408,484 343,213 19.0% Capital ra
Slide 9: Brokerage Revenues
Brokerage Revenues Quarter Ended Year Ended ($ in thousands) 12/31/12 12/31/11 % Change 9/30/12 % Change 12/31/12 12/31/11 % Change Principal transactions: Taxable debt $ 51,621 $ 48,882 5.6% $ 55,908 (7.7%) $ 216,793 $ 185,192 17.1% Municipal debt 21,130 25,731 (17.9%) 24,412 (13.4%) 91,219 83,454
Slide 10: Non-Interest Expenses
Non-Interest Expenses Three months ended December 31, 2012 Quarter Ended % of Net revenues ($ in thousands) 12/31/12 12/31/11 % Change 9/30/12 % Change 12/31/12 12/31/11 9/30/12 Compensation and benefits 239,714 210,924 13.6% 247,964 (3.3%) 57.4% 59.1% 59.0% Transitional pay (1) 22,499 17,819 26.3%
Slide 11: Non-Interest Expenses
Non-Interest Expenses Year ended December 31, 2012 Year Ended % of Net revenues ($ in thousands) 12/31/12 12/31/11 % Change 12/31/12 12/31/11 Compensation and benefits 943,014 829,480 13.7% 58.5% 58.7% (1) Transitional pay 80,929 70,941 14.1% 5.0% 5.0% Total compensation and benefits 1,023,943 900,4
Slide 12: Segment Comparison
Segment Comparison Quarter Ended Year Ended % % % ($ in thousands) 12/31/12 12/31/11 Change 9/30/12 Change 12/31/12 12/31/11 Change Net revenues: Global Wealth Management $ 255,084 $ 224,569 13.6% $ 251,728 1.3% $ 995,189 $ 908,158 9.6% Institutional Group (1) 165,056 134,229 23.0% 169,679 (2.7%) 61
Slide 13: Global Wealth Management
Global Wealth Management Quarter Ended Year Ended ($ in thousands) 12/31/12 12/31/11 % Change 9/30/12 % Change 12/31/12 12/31/11 % Change Commi s s i ons $ 93,045 $ 83,662 11.2% $ 89,393 4.1% $ 361,884 $ 371,046 (2.5%) Pri nci pa l tra ns a cti ons 54,747 53,700 1.9% 58,801 (6.9%) 228,221 209,962 8.
Slide 14: Stifel Bank & Trust
Stifel Bank & Trust (an operating unit of GWM) For the Three Months Ended Year Ended 12/31/12 12/31/11 % Change 9/30/12 % Change 12/31/12 12/31/11 % Change (in 000s, except percentages) Net revenues $ 22,551 $ 19,449 15.9 $ 22,310 1.1 $ 79,877 $ 58,054 37.6 Income before income taxes 15,977 14,621 9
Slide 15: Institutional Group
Institutional Group Quarter Ended Year Ended ($ in thousands) 12/31/12 12/31/11 % Change 9/30/12 % Change 12/31/12 12/31/11 % Change Commi s s i ons $ 41,235 $ 40,076 2.9% $ 38,574 6.9% $ 151,093 $ 190,036 (20.5%) Principa l tra ns a cti ons 42,961 40,263 6.7% 44,178 (2.8%) 180,263 133,251 35.3% Inv
Slide 16: Institutional Group Revenues
Institutional Group Revenues Quarter Ended Year Ended ($ in thousands) 12/31/12 12/31/11 % Change 9/30/12 % Change 12/31/12 12/31/11 % Change Institutional brokerage: Equity $ 41,805 $ 40,598 3.0% $ 37,956 10.1% $ 162,399 $ 181,876 (10.7%) Fixed income 42,391 39,741 6.7% 44,796 (5.4%) 168,957 141,41
Slide 17: Financial Condition
Financial Condition 16
Slide 18: Capital Structure
Capital Structure As of December 31, 2012 (in thousands, except ratios) ($ in thousands) Total Assets $ 6,966,140 Stockholders' Equity $ 1,494,661 Corporate indebtedness 383,992 Debentures to Stifel Financial Capital Trusts II, III, & IV 82,500 Total Capitalization $ 1,961,153 Ratios: Debt to Equity
Slide 19: Other Financial Data
Other Financial Data As of As of 12/31/12 12/31/11 % Change 9/30/12 % Change Total assets (000s): Stifel Nicolaus & Stifel Financial $ 3,313,507 $ 2,676,171 23.8% $ 2,911,509 13.8% Stifel Bank 3,652,633 2,275,729 60.5% 3,228,021 13.2% Total assets $ 6,966,140 $ 4,951,900 40.7% $ 6,139,530 13.5% Tota
Slide 20: Level 3 Assets
Level 3 Assets Carrying Value ($ in thousands) 12/31/12 12/31/11 (1) Auction Rate Securities (ARS) $ 163,112 $ 181,801 Stifel Bank & Trust Investments 5,839 12,000 Trading Securities 583 3,742 (2) Other Investments 37,297 37,033 Level 3 assets (excluding ARS) 43,719 52,775 Total Level 3 assets $ 206
Slide 21: KBW Merger
KBW Merger 20
Slide 22: KBW Merger Integration Update
KBW Merger Integration Update Closed the merger February 15, 2013 Tom Michaud and Michael Zimmerman joined Stifel’s Board of Directors Key employees remain with the firm Report core vs. non-core going forward as contracts roll off until the integration is complete 21
Slide 23: KBW Merger
KBW Merger (Private Client) (Bank & Trust) (Institutional) Global Wealth Management Middle-Market Experts Financial Institution Experts Private Client Award-winning Research Focused Research Stifel Bank & Trust Institutional Equity & Fixed Focused M&A Advisory Income Brokerage Focused Institutional
Slide 24: Stifel Branding
Stifel Branding 23
Slide 25: Branding
Branding Stifel.com Redesign Commercials Target: Stifel Clients and Financial Advisors Channels: CNBC and Bloomberg TV Commencing: February 25, 2013 24
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