Stifel Financial Corporation · NYSE:SF
Stifel Financial — Investor Presentation (September 2019)
38 slides from Stifel Financial's investor presentation, Sep 9, 2019
Slide 1: Investor Presentation September 2019
Investor Presentation September 2019 Exhibit 99.1
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: Our Strategy
Our Strategy STIFEL
Slide 4: Strategic Vision
Strategic Vision To build a premier wealth management and investment banking firm Global Wealth Management Institutional Private Client 2,193 financial advisors* in 377 branches with $268B in client assets Asset Management $33B in total assets managed through various strategies Bank $16.6B in assets
Slide 5: A History of Organic Growth & Acquisitions
A History of Organic Growth & Acquisitions 19% CAGR 2005 Legg Mason’s Capital Markets Division 2007 Ryan Beck Acquisition Stifel Bank & Trust 2008 Butler Wick 2009 56 UBS Private Client Branches 2010 Thomas Weisel Partners 2011 Stone & Youngberg 2012 Miller Buckfire 2013 Keefe, Bruyette & Woods Knig
Slide 6: Stifel Overview
Stifel Overview STIFEL 6
Slide 7: Stifel – Premier Investment Bank and Wealth Management Firm
Stifel – Premier Investment Bank and Wealth Management Firm Stifel at a Glance 2018 GAAP Net Revenue - $3.0 billion Global Wealth Management (GWM) 2018 Net Revenue - $2.0 billion Institutional Group (IG) 2018 Net Revenue - $1.1 billion Private Client Stifel Bancorp Margin and Securities-based Lendin
Slide 8: Leading broker-dealer providing wealth management and institutional services
Leading broker-dealer providing wealth management and institutional services to consumers and companies Bulge Bracket Boutique Size / scale Large distribution Trading Retail Issues Lack of focus Banker turnover Lack of commitment Research indifference Lack of growth investors Firm focus Good researc
Slide 9: Well-diversified, Low Risk Business Model with Balanced Retail and Institutional Exposure
Well-diversified, Low Risk Business Model with Balanced Retail and Institutional Exposure Unburdened by capital constraints Low leverage business model and conservative risk management Limited balance sheet risk Stable wealth management business is augmented by profitable and growing institutional b
Slide 10: A Stable Track Record Through Multiple Business Cycles
A Stable Track Record Through Multiple Business Cycles Non-GAAP Net Revenues(1)(2) ($MM) Total Equity(1) ($MM) Total Client Assets(1)(3) ($BN) Book Value Per Share(1)(3)(4) 2019 Non-GAAP Net Revenue, Total Equity, Total Client Assets, and Book Value Per Share are as of 6/30/2019 2019 full year non-G
Slide 11: Balance Sheet Growth
Balance Sheet Growth $24,620 $24,184 $24,044 $25,000 $21,384 $20,000 $19,129 $15,000 $13,326 $9,518 $10,000 $9,009 $6,966 $4,982 $5,000 $3,167 a 558 2016 2017 1 2a19 2008 2009 2010 2011 2012 2013 2014 2015 Total Assets inMilions “Ter t Leverage 32.9% 30.5% 25.6% 21 177% 184% 16.5% 1 2. 03% 98% 100%
Slide 12: Bank Drove Significant Balance Sheet & Revenue Growth
Bank Drove Significant Balance Sheet & Revenue Growth Bank growth has been balanced between loans and investments: Loans: Comprised of securities based loans, C&I, and residential mortgages Focused lending to high net worth retail clients AFS & HTM Investments: Portfolio primarily GSE MBS, ABS, and
Slide 13: Global Wealth Management
Global Wealth Management STIFEL
Slide 14: Global Wealth Management (GWM) Overview
Global Wealth Management (GWM) Provides Securities Brokerage Services and Stifel Bank Products Overview National Presence Grown from 600+ financial advisors in 2005 to 2,193 financial advisors currently Proven organic growth and acquirer of private client business Strategy of recruiting experienced
Slide 15: Building Scale and Capabilities into a $2 Billion Revenue Segment
Building Scale and Capabilities into a $2Billion Revenue Segment 56 UBS Branches
Slide 16: GWM - Private Client Group Key Operating Metrics
GWM - Private Client Group Key Operating Metrics Accounts(1)(2) Financial Advisors(1)(2)(3) Total Client Assets(1)(2) ($MM) Branches(1)(2) 2019 Financial Advisors, Branches, Accounts, and Total Client Assets are as of 6/30/2019 Excludes Legacy Sterne Agee Independent Contractor Business. 2018 & 2019
Slide 17: GWM – Stifel Bancorp, Inc.
GWM – Stifel Bancorp, Inc. Acquired FirstService Bank, a St. Louis-based, Missouri-chartered commercial bank, in April 2007 Stifel Financial became a bank holding company and financial services holding company Substantial Balance sheet growth with low-risk assets Funded by Stifel Nicolaus client dep
Slide 18: Growing Asset Management Capabilities
Growing Asset Management Capabilities Asset Management Subsidiaries with $33.2 Billion in Client Assets As of June 30, 2019. Ziegler Capital Management, LLC, 1919 Investment Counsel, LLC, EquityCompass Investment Management, LLC,, and Washington Crossing Advisors, LLC are wholly-owned subsidiaries a
Slide 19: Institutional Group
Institutional Group STIFEL 19
Slide 20: Institutional Group Net Revenues
Institutional Group Net Revenues ($MM)(2)(3)(4) Fixed Income Brokerage + Investment Banking (4) Overview Equity Brokerage + Investment Banking (4) Provides securities brokerage, trading, research, underwriting and corporate advisory services Largest provider of U.S. Equity Research 3rd largest Equit
Slide 21: Building Scale and Capabilities into a $1 Billion Revenue Segment
Building Scale and Capabilities into a $1Billion Revenue Segment Investment Banking Fixed Income Equities Knight
Slide 22: Institutional Group – Advisory
Institutional Group – Advisory 2010-2019 YTD: Leadership in M&A of Public Companies and deals < $1bn. Public Deals < $1 Billion in Value All Deals < $1 Billion in Value All Firms Middle Market Firms Source: Dealogics M&A Analytics as of 7/31/19. Note: Includes all sell-side and buy-side strategic or
Slide 23: Institutional Group – Equity Underwriting
Institutional Group – Equity Underwriting Accomplished U.S. Equity Underwriting Franchise – All Equity Transactions Bookrun Equity Deals Since 2010 All Managed Equity Deals Since 2010 Source: Dealogic. Rank eligible SEC registered IPOs and Follow-On offerings since 2010. Includes demutualizations. A
Slide 24: Institutional Group – Research
Institutional Group – Research Largest U.S. Equity Research Platform U.S. Equity Research Coverage (1)(2) Coverage Balanced Across All Market Caps (1) Stifel Research Highlights Largest provider of U.S. Small & Mid-cap Equity Research² #1 U.S. provider of Financial Services coverage Ranked #3 out of
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 Extensive Distribution Network Relationships with over 3,500 institutional accounts globally Active daily market maker in over 4,000 stocks Traded over 7.3 bil
Slide 26: Institutional Group – Fixed Income Capital Markets
Institutional Group – Fixed Income Capital Markets Strong Fixed Income Brokerage Capabilities Institutional Fixed Income Sales Institutional Fixed Income Trading Platform & Products Comprehensive platform 85 traders with annual client trade volume approaching $500 billion 45-person Fixed Income Rese
Slide 27: Institutional Group – Public Finance
Institutional Group – Public Finance Overview Stifel Public Finance has ranked #1 nationally in senior managed, negotiated municipal issues for each of the past five years, including again in 2018. More than one in every 10 transactions in the country were priced on a Stifel desk in 2018. Stifel’s K
Slide 28: Second Quarter 2019 Results
Second Quarter 2019 Results STIFEL 28
Slide 29: Highlights & Second Quarter Results
Highlights & Second Quarter Results Net Revenue of $801 million, up 8% Y/Y. Record Global Wealth Management Net Revenue of $532 million, up 7% Y/Y. Institutional Group Net Revenue of $271 million, up 7% Y/Y Record Client Assets of $305 billion, up 10% Y/Y Record Fee-Based Assets of $104 billion, up
Slide 30: Investment Banking Revenue
Investment Banking Revenue * Excludes Other Segment revenue
Slide 31: Brokerage Revenue and Asset Management & Service Fees
Brokerage Revenue and Asset Management & Service Fees * Sum of Global Wealth Management Brokerage Revenue and Asset Management & Service Fees
Slide 32: Net Interest Income
Net Interest Income *Yields for Average Assets & Liabilities include the impact of Financial Instruments Owned, Stock Loan, Stifel Capital Trusts, Cash and Other. **Net interest margin in historical periods reflect impact of reverse repos
Slide 33: Segments, Balance Sheet, & Expenses
Segments, Balance Sheet, & Expenses
Slide 34: Global Wealth Management
Global Wealth Management WY Change 50 [Gobal Wealth Management Revenue Esco | canes sm mew | sam as pe Pringipal Transactions $42 2% 3% | 851% 5200 + Brokerage sez 2% ow | sate am 3 ss00 [Acct Management 8 Senice Fes sot 0% «=a | S406 3% so 4 Netrterest si 10% 5% | $283 16% soe dare 1492s Imvestmert
Slide 35: Institutional Group
Institutional Group 2019 Change Institutional Revenue lAdvisory sas 5% 21% =| $188 2% equity Underwriting $59 34% 112% | $87 10% erage so 10% 5% | $80 15% otal Equity 101 12% 51% «| $167 12% \Fxed income Um Advsory Fees MCopkal Raising m Brokerage m Other pre nines a tut f Boo $58 14% 13% | $126 21%
Slide 36: Balance Sheet
Balance Sheet * 2Q19 Capital ratios are estimated
Slide 37: Stifel Bancorp
Stifel Bancorp, (il exceptfor 95) 1019 ets: oI 2985 2,704 10% | 2928] 2% Commercial Loans 3338 -2677| 25% 315 | 1% i Loans 1963 1845] 6% | 1861] 5% e 127| 199% | 362 1% Loans Held for Sade 4 1| 22% 144| 14% ta! Loans, net 39,128 $7,558 | 21% | ses51 | 3% ‘set Backed Secures $4387 $4.987| 11% | $4508
Slide 38: Expenses
Expenses * For reconciliation of GAAP to non-GAAP expenses, refer to our second quarter 2019 earnings release.
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