Stifel Financial Corporation · NYSE:SF
Stifel Financial — Q4 2011 Earnings Presentation
19 slides from Stifel Financial's earnings presentation, Feb 15, 2012
Slide 1: 4th Quarter and Full-Year 2011 Financial Results Presentation
4th Quarter and Full-Year 2011 Financial Results Presentation February 15, 2012
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 to report that 2011 represented our 16th consecutive year of record net revenues. This is significant given continued headwinds and uncertainty in the marketplace, particularly in the second half of the year. We thank our clients for their support and our dedicate
Slide 4: Financial Results
Financial Results
Slide 5: Stifel Financial Corp. Results - Three months ended December 31, 2011
Stifel Financial Corp. Results Three months ended December 31, 2011 Three Months Ended (2) (2) GAAP % Core GAAP % ($ in thousands, except per share amounts) 12/31/11 12/31/10 Change 12/31/10 9/30/11 Change Net revenues $ 356,878 $ 401,599 (11.1%) $ 402,787 $ 334,214 6.8% Compensation and benefits 22
Slide 6: Stifel Financial Corp. Results - Year ended December 31, 2011
Stifel Financial Corp. Results Year ended December 31, 2011 Year Ended December 31, 2011 Year Ended 12/31/10 % (1) (2) ($ in thousands, except per share amounts) GAAP Non-core Core (Core) Change Net revenues $ 1,416,562 $ 112 $ 1,416,674 $ 1,384,152 2.3% Compensation and benefits 900,421 (1,722) 898
Slide 7: Source of Revenues
Source of Revenues(1) Quarter Ended Year Ended % % ($ in thousands) 12/31/11 12/31/10 Change 9/30/11 % Change 12/31/11 12/31/10 Change Commissions $ 123,737 $ 139,605 (11.4%) $ 143,243 (13.6%) $ 561,081 $ 445,260 26.0% Principal transactions 93,963 89,996 4.4% 76,650 22.6% 343,213 453,533 (24.3%) As
Slide 8: Brokerage Revenues
Brokerage Revenues Quarter Ended Year Ended % % % ($ in thousands) 12/31/11 12/31/10 Change 9/30/11 Change 12/31/11 12/31/10 Change Taxable debt $ 48,882 $ 46,924 4.2% $ 41,871 16.7% $ 185,192 $ 231,930 (20.2%) Municipal debt 25,731 18,520 38.9% 19,335 33.1% 83,454 75,484 10.6% Equities 7,920 11,396
Slide 9: Core Compensation & Benefits
Core Compensation & Benefits(1) (% of Net Revenue) (1) Core (non-GAAP) compensation and benefits excludes merger-related expenses and charges for the modification of the Company’s deferred compensation plan. 8
Slide 10: Core Non Comp Operating Expenses
Core Non Comp Operating Expenses(1) ($ Millions) (1) Core (non-GAAP) non-compensation operating expenses exclude litigation-related expenses associated with the civil lawsuit and related regulatory investigation in connection with the ongoing matter with five southeastern Wisconsin school districts
Slide 11: Core Segment Comparison
Core(1) Segment Comparison Quarter Ended Year Ended % % % ($ in thousands) 12/31/11 12/31/10 Change 9/30/11 Change 12/31/11 12/31/10 Change Net revenues: Global Wealth Management $ 224,569 $ 236,424 (5.0%) $ 219,498 2.3% $ 908,158 $ 843,269 7.7% Institutional Group 134,229 165,902 (19.1%) 113,259 18
Slide 12: Global Wealth Management
Global Wealth Management Quarter Ended Year Ended ($ in thousands) 12/31/11 12/31/10 % Change 9/30/11 % Change 12/31/11 12/31/10 % Change Commi s s i ons $ 83,662 $ 92,558 (9.6%) $ 92,029 (9.1%) $ 371,046 $ 321,541 15.4% Pri nci pa l tra ns a cti ons 53,700 58,520 (8.2%) 48,836 10.0% 209,962 239,851
Slide 13: Stifel Bank & Trust
Stifel Bank & Trust (an operating unit of GWM) Quarter Ended Year Ended ($ in thousands) 12/31/11 12/31/10 % Change 9/30/11 % Change 12/31/11 12/31/10 % Change Net revenues: Interest 17,121 9,287 84.4% 15,230 12.4% 56,975 35,146 62.1% Other income 6,400 3,553 80.1% 6,536 (2.1%) 17,810 8,652 105.8% T
Slide 14: Stifel Bank & Trust: Low Risk Asset Growth Strategy & Opportunity
Stifel Bank & Trust (an operating unit of GWM) Low Risk Asset Growth Strategy & Opportunity Assets of $2.3 billion as of December 31 2011, an increase of 28% Maintain solid asset quality: from December 31, 2010. Non-performing loans to gross loans of 0.39% Investment portfolio of $1.4 billio
Slide 15: Institutional Group
Institutional Group Quarter Ended Year Ended ($ in thousands) 12/31/11 12/31/10 % Change 9/30/11 % Change 12/31/11 12/31/10 % Change Commi s s i ons $ 40,076 $ 47,047 (14.8%) $ 51,214 (21.7%) $ 190,036 $ 123,719 53.6% Pri nci pa l tra ns a cti ons 40,263 35,564 13.2% 27,815 44.8% 133,251 217,770 (38
Slide 16: Institutional Group Revenues
Institutional Group Revenues Quarter Ended Year Ended ($ in thousands) 12/31/11 12/31/10 % Change 9/30/11 % Change 12/31/11 12/31/10 % Change Sales and trading: Equity $ 40,598 $ 46,521 (12.7%) $ 47,185 (14.0%) $ 181,876 $ 172,983 5.1% Fixed income 39,741 36,090 10.1% 31,844 24.8% 141,411 168,506 (1
Slide 17: Financial Condition
Financial Condition
Slide 18: Other Financial Data
Other Financial Data As of As of 12/31/11 12/31/10 % Change 9/30/11 % Change Total assets (000s): Stifel Nicolaus & Stifel Financial $ 2,676,171 $ 2,439,395 9.7% $ 2,630,993 1.7% Stifel Bank 2,275,729 1,773,720 28.3% 2,311,371 (1.5%) Total assets $ 4,951,900 $ 4,213,115 17.5% $ 4,942,364 0.2% Total
Slide 19: Level 3 Assets
Level 3 Assets Carrying Value ($ in thousands) 12/31/11 12/31/10 (1) Auction Rate Securities (ARS) $ 181,801 $ 94,795 Stifel Bank & Trust Investments 12,000 - Trading Securities 3,742 40,243 (2) Other Investments 37,033 38,502 Level 3 assets (excluding ARS) 52,775 78,745 Total Level 3 assets $ 234,5