Stifel Financial Corporation · NYSE:SF
Stifel Financial — Q2 2017 Earnings Presentation
16 slides from Stifel Financial's earnings presentation, Jul 31, 2017
Slide 1: 2nd Quarter 2017 Financial Results Presentation
2nd Quarter 2017 Financial Results Presentation July 31, 2017
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: 2nd Quarter Highlights & Results
2nd Quarter Highlights & Results • Record GAAP Net Revenue of $726 million • Record Investment Banking Revenue of $185 • Record Net Revenue for Global Wealth million Management Segment of $452 million. • Total Assets of $19.53 billion • Record Pre-Tax Operating Income for Global • Bank NIM of 2.77%
Slide 4: Investment Banking & Brokerage Revenue
Investment Banking & Brokerage Revenue 3
Slide 5: Investment Banking & Brokerage Revenue
Investment Banking & Brokerage Revenue Investment banking: Three Months Ended (000s) 2Q17 2Q16 % Change 1Q17 % Change Investment banking: Capital raising: Equity $56,970 $37,638 51.4% $45,649 24.8% Fixed income 45,830 28,774 59.3% 28,267 62.1% Total capital raising 102,800 66,412 54.8% 73,916 39.1%
Slide 6: Segment Results
Segment Results 5
Slide 7: Global Wealth Management
Global Wealth Management • Net revenue in the GWM segment was $452 mil., up 2% sequentially & 17% Y/Y • Brokerage revenue declined 4% sequentially & Y/Y • Ex. Sterne IBC & Clearing, Brokerage revenue increased 13% Y/Y • Net interest income increased 7% sequentially & 76% Y/Y • 2,277 total FAs down s
Slide 8: Stifel Bank & Trust
Stifel Bank & Trust % % (mil. except for %'s) 2Q17 2Q16 Change 1Q17 Change Assets: Investments $6,753 $4,580 47% $6,557 3% Mortgage Loans 2,249 1,228 83% 2,214 2% Commercial Loans 2,064 1,425 45% 1,831 13% Securities Based Loans 1,756 1,419 24% 1,729 2% Total Loans, net $6,160 $4,170 48% $5,865 5% L
Slide 9: Institutional Group
Institutional Group Sequen tial Y/Y millions 2Q17 Chan ge Chan ge In s titutional Reven ue Equit y Advisory $81 58% 26% Underwriting $46 27% 69% Brokerage $51 -6% -8% Total Equity Capital Markets Revenue $178 25% 21% Fix ed Inco me Institutional Group Pre-tax Margin & Advisory $2 1% 0% 20% Contribut
Slide 10: Balance Sheet & Net Interest Income
Balance Sheet & Net Interest Income 9
Slide 11: Balance Sheet Growth
Balance Sheet Growth Infrastructure Build Ratio 2008 2009 2010 2011 2012 2013 2014 3Q15 2015 2016 1Q17 2Q17 2018E Tier 1 Leverage 32.3% 30.5% 25.6% 21.4% 17.7% 15.4% 16.5% 16.4% 16.6% 10.2% 10.1% 10.3% 10.0% Tier 1 Risk Based Capital 49.4% 40.5% 29.1% 27.4% 26.8% 26.7% 25.0% 29.4% 26.3% 20.3% 20.8%
Slide 12: Balance Sheet & Net Interest Margin
Balance Sheet & Net Interest Margin Net Interest Income Drivers: • Total assets of $19.53 billion were up 2% sequentially & 27% Y/Y • Average interest earning assets increased to $15.4 billion up 3% sequentially & 46% Y/Y • NIM increased to 235 bps , up 11 bps sequentially & 55 bps Y/Y • NIM at Stif
Slide 13: GAAP & Non-GAAP Reconciliation
GAAP & Non-GAAP Reconciliation 12
Slide 14: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Three months ended June 30, 2017 Three months GAAP to Non-GAAP Reconciliation for Second Quarter 2017 GAAP Resul ts ended (000s) 06/30/17 (000s) 06/30/17 GAAP Net Income $52,811 Total GAAP Compensation & benefits expense $453,876 Preferred Dividend 2,344 GAAP comp. ra
Slide 15: Regulatory & Interest Rate Sensitivity Update
Regulatory & Interest Rate Sensitivity Update 14
Slide 16: 15
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