Stifel Financial Corporation · NYSE:SF
Stifel Financial — Q4 2018 Earnings Presentation
18 slides from Stifel Financial's earnings presentation, Feb 1, 2019
Slide 1: 4th Quarter & Full Year 2018 Financial Results Presentation
4th Quarter & Full Year 2018 Financial Results Presentation February 1, 2019
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: Highlights & Full Year Results
Highlights & Full Year Results • 23rd Consecutive Year of Record Net Revenue of $3.025 billion, up 3% • Non-GAAP Comp. Ratio of 58%, down 320 bps • Record GAAP EPS of $4.73, up 121% • Non-GAAP Pre-tax Margin of 19.6%, up 250 bps • Record Non-GAAP EPS of $5.28, up 32% • Repurchased nearly 3.4 million
Slide 4: Highlights & Fourth Quarter Results
Highlights & Fourth Quarter Results • Non-GAAP Net Revenue of $794 million, up 7% Q/Q. • Non-GAAP Comp. Ratio of 56%, down 400 bps Y/Y • Record Asset Management & Services Fees of $210 million, up • Non-GAAP Pre-tax Margin of 21.9%, up 180 bps Y/Y 13% Y/Y. • Non-GAAP ROCE of 16.7% & Non-GAAP ROTCE o
Slide 5: Segment Results
Segment Results 4
Slide 6: Global Wealth Management
Global Wealth Management Y/Y Sequential Y/Y millions 4Q18 Change Change 2018 Change Gl obal We al th Manageme nt Re venue Commissions $117 -1% -1% $472 -1% Principal Transactions $40 -11% -2% $166 -11% Brokerage $157 -4% -1% $638 -4% Asset Management & Service Fees $210 13% 5% $806 15% Net Interest
Slide 7: Institutional Group
Institutional Group Y/Y Sequen tial Y/Y Institutional Group Net Revenue millions 4Q18 Change Chan ge 2018 Chan ge In s titution al Rev en ue $350 Equit y GAAP Net Revenue (mil.) $300 Advisory $108 -9% 48% $358 4% $250 Underwriting $52 -10% -20% $214 17% $200 Brokerage $49 -2% 11% $186 -7% $150 Equit
Slide 8: Revenue & Expenses
Revenue & Expenses 7
Slide 9: Brokerage Revenue and Asset Management & Service Fees
Brokerage Revenue and Asset Management & Service Fees Brokerage Revenue Three Months Ended YTD (000s) 4Q18 4Q17 % Change 3Q18 % Change 2018 2017 % Change Global Wealth Management brokerage revenue $157,331 $163,421 -4% $158,818 -1% $638,173 $661,334 -4% Institutional brokerage: Equity Capital Market
Slide 10: Investment Banking Revenue
Investment Banking Revenue Investment banking: Three Months Ended YTD (00 0s) 4Q18 4 Q17 % Change 3Q18 % Change 20 18 2 017 % Change Capital raising: Global Wealth Management revenue $7,915 $8,899 -11% $7,722 3% $31,293 $40,466 -23% Equity Capital Markets 51,839 57,800 -10% 65,000 -20% 213,633 182,7
Slide 11: Net Interest Income
Net Interest Income Average Yields on Balance Sheet Net Interest Income Growth 4Q18 4Q17 Change 3Q18 %Change $140 $127 $117 $121 Assets: $120 $107 $111 Bank loans 4.11% 3.27% 84 bps 3.88% 23 bps Net Interest Income (mil.) $100 Commercial 4.79% 3.86% 93 bps 4.62% 17 bps $80 Securities based 4.18% 3.1
Slide 12: Stifel Bancorp, Inc.
Stifel Bancorp, Inc. % % (mil. except for %'s) 4Q18 4Q17 Change 3Q18 Change Assets: Mortgage Loans 2,875 2,594 11% 2,792 3% Commercial Loans 3,304 2,438 36% 3,127 6% Securities Based Loans 1,787 1,819 -2% 1,836 -3% Commercial Real Estate 319 116 175% 329 -3% Loans Held for Sale 206 226 -9% 262 -21%
Slide 13: Expenses
Expenses Non-GAAP Expenses & Three Months Ended Ful l Year Compensation Ratio Pr e-tax Inc ome % % % 61.0% 60.5% 60.0% 60.0% 4Q18 4Q17 Change 3Q18 Change 2018 2017 Change 59.0% 59.0% (millions) 58.0% Compensation $444 $483 -8% $417 7%/ $1,753 $1,791 -2% 57.0% 56.5% 56.0% 56.0% Non-compensation $175
Slide 14: Balance Sheet
Balance Sheet 13
Slide 15: Balance Sheet
Balance Sheet Infrastructure Build ` 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1Q18 2Q18 3Q18 4Q18 Tier 1 Leverage 32.3% 30.5% 25.6% 21.4% 17.7% 15.4% 16.5% 16.6% 10.2% 9.5% 9.6% 9.5% 9.6% 9.3% Tier 1 Risk Based Capital 49.4% 40.5% 29.1% 27.4% 26.8% 26.7% 25.0% 26.3% 20.3% 19.0% 18.7% 18.4%
Slide 16: Substantial Performance Improvement During 2018
Substantial Performance Improvement During 2018 millions 2018 2017 Change millions 2018 2017 Change Income Statement Balance Sheet Total net revenue $3,025 $2,928 3% Total assets $24,520 $21,384 15% Pre-tax income $592 $501 18% Bank assets $17,819 $14,996 19% Net income available to common share hol
Slide 17: Fourth Quarter & 2018 Results 2019 Outlook
Fourth Quarter & 2018 Results 2019 Outlook millions 4Q18 Actual 4Q18 Guidance 2018 Actual 2018 Guidance 2019 Estimate Operating Net Revenue $667 $637 - $673 $2,549 $2,519 - $2,555 $2,520 - $2,800 Net Interest Income $127 $123 - $127 $476 $473 - $477 $530 - $550 Net Revenue $794 $760 - $800 $3,025 $2
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