Stifel Financial Corporation · NYSE:SF
Stifel Financial — Q1 2013 Earnings Presentation
22 slides from Stifel Financial's earnings presentation, May 9, 2013
Slide 1: 1st Quarter 2013 Financial Results Presentation
1st Quarter 2013 Financial Results Presentation May 9, 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 “We are pleased with our performance for the quarter, which included record net revenues. While our profitability is clouded by merger-related charges, it is noteworthy that our Global Wealth Management segment posted record revenue and profitability, and our Institutional segmen
Slide 4: Market Overview
Market Overview Activity Summary First Quarter Volum es are in million $, except trading volum es w hich are in million shares. Data as of 3/31/2013 Results 2013 Q1 2012 Q4 2012 Q3 2012 Q2 2012 Q1 QoQ YoY S&P 500 1,569 1,426 1,441 1,362 1,408 10% 11% U.S. Treasury 10yr Yield 1.85% 1.76% 1.63% 1.65%
Slide 5: KBW Merger
KBW Merger 4
Slide 6: KBW Update
KBW Update Merger closed: February 15, 2013 ⁻ All client facing decisions made by deal close Back-office conversion completed: March 6, 2013 Significant steps towards achieving cost savings target Market Acceptance of Transaction KBW Investment Banking KBW Equities KBW is #1 year to date in the numb
Slide 7: Non-Core Expenses
Non-Core Expenses Acquisition-Related Expenses ($ in thousands) Q1 2013 Thereafter Total Duplicate Compensation $ 3,138 $ 9,100 $ 12,238 Stock-Based Compensation 30,648 - 30,648 Duplicate/Non-Recurring Costs 6,552 16,700 23,252 Total estimated non-core operating expenses $ 40,338 $ 25,800 $ 66,138 6
Slide 8: Non-Core Expense Projections
Non-Core Expense Projections Acquisition-Related Expenses Three Months Ended ($ in thousands) 6/30/13 9/30/13 12/31/13 Total Compensation $ 6,200 $ 2,500 $ 400 $ 9,100 Non-Compensation Operating Expenses 6,800 5,000 4,900 16,700 Total estimated non-core operating expenses 13,000 7,500 5,300 $ 25,800
Slide 9: Financial Results
Financial Results 8
Slide 10: Stifel Financial Corp. Results
Stifel Financial Corp. Results Three months ended March 31, 2013 Three Months Ended March 31, 2013 Three Months Ended (1) ($ in thousands, except per share amounts) GAAP Non-Core Non-GAAP 3/31/12 % Change 12/31/12 % Change Net revenues $ 441,780 $ 8 $ 441,788 $ 400,333 10.4% $ 417,830 5.7% Compensat
Slide 11: Source of Revenues
Source of Revenues Three Months Ended % % ($ in thousands) 3/31/13 3/31/12 Change 12/31/12 Change Commissions $ 148,648 $ 123,303 20.6% $ 134,280 10.7% Principal transactions 107,244 116,233 (7.7%) 97,708 9.8% Brokerage revenues 255,892 239,536 6.8% 231,988 10.3% Capital raising 51,199 54,833 (6.6%)
Slide 12: Brokerage Revenues by Segment
Brokerage Revenues by Segment Three Months Ended ($ in thousands) 3/31/13 3/31/12 % Change 12/31/12 % Change Private client group $ 158,392 $ 149,401 6.0% $ 147,792 7.2% Equity brokerage 52,000 44,171 17.7% 41,805 24.4% Fixed income brokerage 45,500 45,964 (1.0%) 42,391 7.3% Total Brokerage Revenues
Slide 13: Core Non-Interest Expenses
Core Non-Interest Expenses Three months ended March 31, 2013 Three Months Ended % of Net revenues (1) (1) ($ in thousands) 3/31/13 3/31/12 % Change 12/31/12 % Change 3/31/13 3/31/12 12/31/12 Net revenues $ 441,788 $ 400,333 10.4% $ 417,830 5.7% 100.0% 100.0% 100.0% Compensation and benefits 259,135
Slide 14: Segment Comparison
Segment Comparison Three Months Ended % % (1) ($ in thousands) 3/31/13 3/31/12 Change 12/31/12 Change Net revenues: Global Wealth Management $ 266,957 $ 247,608 7.8% $ 255,084 4.7% Institutional Group (2) 176,437 149,244 18.2% 165,056 6.9% Other (1,614) 3,481 (146.4%) (2,310) (30.1%) $ 441,780 $ 400
Slide 15: Global Wealth Management
Global Wealth Management Three Months Ended ($ in thousands) 3/31/13 3/31/12 % Change 12/31/12 % Change Commi s s i ons $ 102,086 $ 91,020 12.2% $ 93,045 9.7% Pri nci pa l tra ns a cti ons 56,307 58,381 (3.6%) 54,747 2.8% As s e t ma na ge me nt & s e rvi ce fe e s 68,934 60,586 13.8% 68,631 0.4% Ne
Slide 16: Stifel Bank & Trust
Stifel Bank & Trust (an operating unit of GWM) As of As of 3/31/13 3/31/12 % Change 12/31/12 % Change Assets $ 3,832,281 $ 2,611,828 46.7 $ 3,652,633 4.9 Investment securities 2,440,146 1,673,866 45.8 2,332,058 4.6 Retained loans, net 886,597 657,081 34.9 822,711 7.8 Loans held for sale 165,698 141,
Slide 17: Institutional Group
Institutional Group ` Three Months Ended ($ in thousands) 3/31/13 3/31/12 % Change 12/31/13 % Change Net revenues $ 176,437 $ 149,244 18.2% $ 165,056 6.9% Compens a ti on a nd benefi ts 107,636 94,430 14.0% 108,371 (0.7%) Non-comp opera ti ng expens es 40,664 30,810 32.0% 35,195 15.5% Total non-inte
Slide 18: Institutional Group Revenues
Institutional Group Revenues Three Months Ended ($ in thousands) 3/31/13 3/31/12 % Change 12/31/12 % Change Institutional brokerage: Equity $ 52,000 $ 44,171 17.7% $ 41,805 24.4% Fixed income 45,500 45,964 (1.0%) 42,391 7.3% 97,500 90,135 8.2% 84,196 15.8% Investment Banking: Capital raising Equity
Slide 19: Financial Condition
Financial Condition 18
Slide 20: Capital Structure
Capital Structure As of March 31, 2013 (in thousands, except ratios) ($ in thousands) Total Assets $ 8,133,755 Stockholders' Equity $ 1,903,666 6.70% senior notes, due 2022 $ 175,000 5.375% senior notes, due 2022 150,000 Non-recourse debt, 6.75%, due 2016 55,934 Debentures to Stifel Financial Capita
Slide 21: Other Financial Data
Other Financial Data As of As of 3/31/13 3/31/12 % Change 12/31/12 % Change Total assets (000s): Stifel Nicolaus & Stifel Financial $ 4,301,474 $ 2,853,866 50.7% $ 3,313,507 29.8% Stifel Bank 3,832,281 2,611,828 46.7% 3,652,633 4.9% Total assets $ 8,133,755 $ 5,465,694 48.8% $ 6,966,140 16.8% Total
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