Stifel Financial Corporation · NYSE:SF
Stifel Financial — Q2 2015 Earnings Presentation
22 slides from Stifel Financial's earnings presentation, Aug 10, 2015
Slide 1: 2nd Quarter 2015 Financial Results Presentation
2nd Quarter 2015 Financial Results Presentation August 10, 2015
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 “Our record second quarter results demonstrate the strength of our platform. On June 5, 2015, we completed the acquisition of Sterne Agee, and as a result, our second quarter includes approximately one month of Sterne Agee’s financial results. We are pleased to welcome our new as
Slide 4: Market Overview
Market Overview Market Valuations Rates Volatility / Volumes Underwriting Volumes and M&A Municipal U.S. U.S. U.S. 10yr Equity Corporate U.S. ECM U.S. DCM Bond DCM Announced Completed S&P 500 Dow Yield VIX ADV Bond ADV ($) ($) ($) M&A ($) M&A ($) 2015 Q2 2,063 17,620 2.35% 18.2 6,629 22,215 79,138 6
Slide 5: Financial Results
Financial Results 4
Slide 6: Stifel Financial Corp. Results: Three months ended June 30, 2015
Stifel Financial Corp. Results Three months ended June 30, 2015 Three Months Ended June 30, 2015 Three Months Ended (1) (2) (2) ($ in thousands, except per share amounts) Non-GAAP Adjustments GAAP 6/30/14 % Change 3/31/15 % Change Total revenues $ 607,850 $ - $ 607,850 $ 570,548 6.5% $ 574,001 5.9%
Slide 7: Q2 2015 Non-GAAP Results vs. Estimates
Q2 2015 Non-GAAP Results vs. Estimates Note: In millions, except diluted EPS and share data. 6
Slide 8: Stifel Financial Corp. Results: Six months ended June 30, 2015
Stifel Financial Corp. Results Six months ended June 30, 2015 Six Months Ended June 30, 2015 Six Months Ended (1) (2) ($ in thousands, except per share amounts) Non-GAAP Adjustments GAAP 6/30/14 % Change Total revenues $ 1,181,850 $ - $ 1,181,850 $ 1,127,890 4.8% Interest expense 20,405 2,712 23,117
Slide 9: Source of Revenues
Source of Revenues Three Months Ended Six Months Ended % % % ($ in thousands) 6/30/15 6/30/14 Change 3/31/15 Change 6/30/15 6/30/14 Change Commissions $ 183,770 $ 164,371 11.8% $ 180,302 1.9% $ 364,073 $ 336,614 8.2% Principal transactions 85,543 110,717 (22.7%) 100,205 (14.6%) 186,275 221,399 (15.9
Slide 10: Brokerage & Investment Banking Revenues
Brokerage & Investment Banking Revenues Three Months Ended Six Months Ended ($ in thousands) 6/30/15 6/30/14 % Change 3/31/15 % Change 6/30/15 6/30/14 % Change Global Wealth Management $ 158,803 $ 160,540 (1.1%) $ 157,995 0.5% $ 317,024 $ 320,840 (1.2%) Institutional Group Equity brokerage 58,551 60
Slide 11: Non-GAAP Non-Interest Expenses (Three Months)
Non-GAAP Non-Interest Expenses Three months ended June 30, 2015 Three Months Ended % of Net revenues (1) (1) ($ in thousands) 6/30/15 6/30/14 % Change 3/31/15 % Change 6/30/15 6/30/14 3/31/15 Net revenues $ 597,751 $ 561,454 6.5% $ 563,694 6.0% 100.0% 100.0% 100.0% Compensation and benefits 345,465
Slide 12: Non-GAAP Non-Interest Expenses (Six Months)
Non-GAAP Non-Interest Expenses Six months ended June 30, 2015 Six Months Ended % of Net revenues (1) (1) ($ in thousands) 6/30/15 6/30/14 % Change 6/30/15 6/30/14 Net revenues $ 1,161,445 $ 1,109,899 4.6% 100.0% 100.0% Compensation and benefits 674,693 649,633 3.9% 58.1% 58.6% Transitional pay (2) 4
Slide 13: Non-GAAP Segment Comparison
Non-GAAP Segment Comparison Three Months Ended Six Months Ended % % % ($ in thousands) 6/30/15 6/30/14 Change 3/31/15 Change 6/30/15 6/30/14 Change Net revenues: Global Wealth Management $ 343,382 $ 307,247 11.8% $ 329,410 4.2% $ 672,792 $ 604,430 11.3% Institutional Group 258,538 255,669 1.1% 238,6
Slide 14: Global Wealth Management
Global Wealth Management Three Months Ended Six Months Ended ($ in thousands) 6/30/15 6/30/14 % Change 3/31/15 % Change 6/30/15 6/30/14 % Change Commi s s i ons $ 125,121 $ 112,205 11.5% $ 116,214 7.7% $ 241,335 $ 225,202 7.2% Pri nci pa l tra ns a ctions 33,682 48,335 (30.3%) 41,781 (19.4%) 75,689
Slide 15: Stifel Bank & Trust
Stifel Bank & Trust (an operating unit of GWM) As of 6/30/15 As of 6/30/14 As of 3/31/15 % Change Actual ($) Yield (%) Actual ($) Yield (%) Actual ($) Yield (%) Q215 v Q214 Q215 v Q115 Assets Cash 116,387 0.19 132,843 0.37 48,131 0.24 (12.4) 141.8 (1) Investment securities 1,907,282 2.26 2,915,236 2
Slide 16: Institutional Group
Institutional Group Three Months Ended Six Months Ended ($ in thousands) 6/30/15 6/30/14 % Change 3/31/15 % Change 6/30/15 6/30/14 % Change Net revenues $ 258,538 $ 255,670 1.1% $ 238,607 8.4% $ 497,145 $ 505,647 (1.7%) Compens ati on a nd benefi ts 160,077 157,500 1.6% 149,411 7.1% 309,488 311,734
Slide 17: Financial Condition
Financial Condition 16
Slide 18: Capital Structure
Capital Structure (in thousands, except ratios) As of As of ($ in thousands) 6/30/15 6/30/14 3/31/15 Total Assets $10,139,542 $ 9,575,012 $ 9,373,137 Stockholders' Equity 2,520,251 2,173,191 2,363,244 4.250% senior notes, due 2024 $ 300,000 $ - $ 300,000 5.375% senior notes, due 2022 150,000 150,000
Slide 19: Other Financial Data
Other Financial Data As of As of 6/30/15 6/30/14 % Change 3/31/15 % Change Total assets (000s): Stifel Nicolaus & Stifel Financial $ 5,353,294 $ 4,535,016 18.0% $ 4,083,788 31.1% Stifel Bank 4,786,248 5,039,996 (5.0%) 5,289,349 (9.5%) Total assets 10,139,542 $ 9,575,012 5.9% 9,373,137 8.2% Total sha
Slide 20: Acquisition Updates
Acquisition Updates 19
Slide 21: Non-GAAP Deal Integration Costs
Non-GAAP Deal Integration Costs Three months ended 6/30/15 Estimate ($ in thousands) Actual Estimate 9/30/15 12/31/15 3/31/16 6/30/16 Existing acquisitions Sterne Agee - Stock-based compensation 22,837 32,000 4,000 Duplicative operating expenses: Acacia Federal Savings Bank - - - - - - De La Rosa &
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