Stifel Financial Corporation · NYSE:SF
Stifel Financial — Q1 2016 Earnings Presentation
18 slides from Stifel Financial's earnings presentation, May 9, 2016
Slide 1: 1st Quarter 2016 Financial Results Presentation
1st Quarter 2016 Financial Results Presentation May 9, 2016
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: 1st Quarter Highlights
1st Quarter Highlights 1st Quarter Highlights: Record total net revenue of $620 mil. up 7% sequentially & 11% Y/Y Record total Global Wealth Management net revenue of $380 mil. up 9% sequentially & 15% Y/Y Record total Stifel Bank & Trust net revenue of $53 mil. up 34% sequentially & 49% Y/Y
Slide 4: Revenue & Segment Results
Revenue & Segment Results 3
Slide 5: Core Revenue Growth
Core Revenue Growth Core Net Revenue (mil.) • Total net revenue of $620 mil. up 7% sequentially and 11% Y/Y driven by: • Brokerage revenue increased 8% sequentially & 14% Y/Y • Asset Management revenue increased 12% sequentially & 27% Y/Y • Net Interest Income increased 35% Core Segment Net Revenue
Slide 6: Global Wealth Management
Global Wealth Management GWM Core Net Revenue (mil.) • Total net revenue in the GWM segment was $380 mil., up 9% sequentially & 15% Y/Y • Brokerage revenue increased 4% sequentially & 10% Y/Y • Asset management revenue increased 11% sequentially & 27% Y/Y • Net interest income increased 23% sequenti
Slide 7: Stifel Bank & Trust
Stifel Bank & Trust Net Revenue (mil.) • Total net revenue at Stifel Bank & Trust was $53.4 mil., up 34% sequentially & 49% Y/Y • Total bank loans of $3.7 bil. increased 8% sequentially & 49% Y/Y • Total investment securities of $4.2 bil. increased 19% sequentially & 60% Y/Y • NIM of 2.48% was down
Slide 8: Institutional Group
Institutional Group Net Revenue • Total net revenue of $ 241 mil. was down 2% sequentially but up 1% Y/Y • Investment banking revenue of $92 mil. declined 1% sequentially & 20% Y/Y • Advisory revenue of $47 mil. increased 54% sequentially but declined 4% Y/Y • Brokerage revenue of $146 mil. increase
Slide 9: Institutional Brokerage & Investment Banking
Institutional Brokerage & Investment Banking Equity & Fixed Income Brokerage Net Revenue • Brokerage revenue of $146 mil. • Equity brokerage revenue of $62 mil. was up 14% sequentially & 1% Y/Y • Fixed income brokerage revenue of $84 mil. was up 14% sequentially and 38% Y/Y • Underwriting revenue of
Slide 10: Expense & Balance Sheet
Expense & Balance Sheet 9
Slide 11: Stifel Financial Corp. Results
Stifel Financial Corp. Results Three months ended March 31, 2016 Three Months Ended March 31, 2016 Three Months Ended (1) (2) (2) ($ in thousands, except per share amounts) Non‐GAAP Adjustments GAAP 3/31/15 % Change 12/31/15 % Change Total revenues $ 634,085 $ ‐ $ 634,085 $ 574,001 10.5% $ 594,403 6
Slide 12: Non-GAAP Deal Integration Costs
Non-GAAP Deal Integration Costs 11
Slide 13: Balance Sheet & Capital Return
Balance Sheet & Capital Return Net Interest Income Drivers • Balance Sheet: • Total assets increased to $14.2 bil. up 7% sequentially & 52% Y/Y • Average interest earning assets increased to $9.7 bil. up 24% sequentially & 51% Y/Y • NIM increased to 201 bps , up 5 bps sequentially & 16 bps Y/Y. • Ti
Slide 14: Interest Rate Sensitivity
Interest Rate Sensitivity • Maintaining annual guidance of $66 mil. incremental pre-tax income for first 100bps Fed Funds increase. • First 25 bps increase in December • Generated incremental $3.7 mil. of pre-tax income in 1Q16 vs. 4Q15 in Asset Management & Service Fee revenue from the insured bank
Slide 15: Outlook & Key Drivers
Outlook & Key Drivers 14
Slide 16: Balance Sheet Growth
Balance Sheet Growth Ratio 2008 2009 2010 2011 2012 2013 2014 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Illustrative Tier 1 Leverage 32.3 30.5 25.6 21.4 17.5 15.4 16.5 17.5 18.3 16.5 16.6 11.6 9.1 Tier 1 Risk Based Capital 49.4 40.3 29.1 27.6 26.6 26.7 25.0 29.6 29.4 29.4 26.3 21.3 18.1 Risk Weighting Assets De
Slide 17: Core & GAAP EPS to Converge As Deal Charges Realized
Core & GAAP EPS to Converge As Deal Charges Realized Deal related pre-tax expenses totaled $46.5 mil. and $152 mil. in 2014 and 2015, respectively. The increase in 2015 resulted in a $1.24 differential between Core EPS and GAAP EPS. $141 mil. of non-core deal related expenses forecasted for 20
Slide 18: Q&A
O&A