Stifel Financial Corporation · NYSE:SF

Stifel Financial — KBW Winter Financial Services Symposium 2020

40 slides from Stifel Financial's conference presentation, Feb 13, 2020

1. Slide 1: Investor Presentation

   Investor Presentation KBW Winter Financial Services Symposium February 13 -14, 2020

2. 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

3. Slide 3: Our Strategy

   Our Strategy STIFEL

4. Slide 4: Strategic Vision

   Strategic Vision To build a premier wealth management and investment banking firm Global Wealth Management Institutional Private Asset Bank Equities Fixed Investment Research Client Management Sales + Income Banking Trading Sales + Trading 2,222 financial $37B in total $16.9B in assets Experienced s

5. Slide 5: A History of Organic Growth & Acquisitions

   A History of Organic Growth & Acquisitions 2019 2018 First Empire Ziegler Wealth MainFirst 2017 Mooreland Partners City Management, 2016 Business GMP Eaton Partners Securities George K. Baum Bancshares Inc. 2015 ISM Capital B&F Capital Markets Barclays Wealth & 2014 Investment Management, De La Rosa

6. Slide 6: Stifel Overview

   Stifel Overview STIFEL

7. Slide 7: Stifel – Premier Investment Bank and Wealth Management Firm

   Stifel – Premier Investment Bank and Wealth Management Firm Stifel at a Glance 2019 GAAP Net Revenue - $3.3 billion Global Wealth Management (GWM) Institutional Group (IG) 2019 Net Revenue - $2.1 billion 2019 Net Revenue - $1.2 billion  Private Client  Equity & Fixed Income Capital Raising  Stife

8. Slide 8: Leading broker-dealer providing wealth management and institutional services

   Leading broker-dealer providing wealth management and institutional services to consumers and companies Bulge Bracket Boutique  Size / scale  Firm focus  Large distribution  Good research  Size / scale  Trading  Growth investor access  Firm focus  Retail Issues  Stability (financial & pers

9. Slide 9: Well-diversified, Low Risk Business Model with Balanced Retail and Institutional Exposure

   Well-diversified, Low Risk Business Model with Balanced Retail and Institutional Exposure  Unburdened by capital constraints  Low leverage business model and conservative risk management  Limited balance sheet risk  Stable wealth management business is augmented by profitable and growing institu

10. Slide 10: A Stable Track Record Through Multiple Business Cycles

    A Stable Track Record Through Multiple Business Cycles Non-GAAP Net Revenues(1) ($MM) Total Equity(1) ($MM) $3,500 $3,337 $3,615 $3,500 $3,025 $2,928 $3,168 $3,000 $2,580 $3,000 $2,862 $2,738 $2,500 $2,335 $2,492 $2,213 $2,500 $2,320 $1,978 $2,059 $2,000 $2,000 $1,594 $1,500 $1,417 $1,495 $1,384 $1,

11. Slide 11: Balance Sheet Growth

    Balance Sheet Growth $24,520 $24,184 $24,610 $24,344 $25,000 $24,161 $21,384 $20,000 $19,129 Total Assets in Millions $15,000 $13,326 $9,518 $10,000 $9,009 $6,966 $4,952 $5,000 $4,213 $3,167 $1,558 $- 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 1Q19 2Q19 3Q19 4Q19 2008 2009 2010 2011 2012

12. Slide 12: NII Expanded as Asset Growth Paused in 2019

    NII Expanded as Asset Growth Paused in 2019 Impact of Bank on LTM on Consolidated Results Bank growth has been balanced between loans and investments: (mil.) 12/31/2018 12/31/2019 Loans: Total consolidated assets $24,520 $24,610 • Comprised of securities based loans, C&I, and Investment securities $

13. Slide 13: Global Wealth Management

    Global Wealth Management STIFEL

14. Slide 14: Global Wealth Management (GWM)

    Global Wealth Management (GWM) Provides Securities Brokerage Services and Stifel Bank Products Overview National Presence  Grown from 600+ financial advisors in 2005 to 2,222 financial advisors currently  Proven organic growth and acquirer of private client business  Strategy of recruiting experi

15. Slide 15: Building Scale and Capabilities into a $2.1 Billion Revenue Segment

    Building Scale and Capabilities into a $2.1 Billion Revenue Segment Private Client Asset Management Bank 56 UBS Branches * On December 9, 2019 Stifel announced the agreement to sell Ziegler Capital Management, LLC a wholly-owned asset management subsidiary of Stifel Financial Corp., to 1251 Capital

16. Slide 16: GWM - Private Client Group

    GWM - Private Client Group Key Operating Metrics Financial Advisors(1)(2)(3) Branches(1)(2) 2,500 2,291 2,282 400 382 2,244 2,222 361 360 369 2,152 355 2,077 2,103 1,987 2,041 350 330 1,885 1,935 317 2,000 307 285 291 300 272 1,500 250 1,315 196 200 1,000 150 100 500 50 0 0 2008 2009 2010 2011 2012

17. Slide 17: GWM – Stifel Bancorp, Inc.

    GWM – Stifel Bancorp, Inc. Overview Key Statistics (000s) (1)(2)  Acquired FirstService Bank, a St. Louis-based, Missouri- Total assets $16,942 chartered commercial bank, in April 2007 Total deposits 15,333  Stifel Financial became a bank holding company and Total equity 1,207 financial services h

18. Slide 18: Growing Asset Management Capabilities

    Growing Asset Management Capabilities Asset Management Subsidiaries with $36.5 Billion in Client Assets Assets $12.4 Billion $15.5 Billion $4.3 Billion $4.3 Billion Chicago Baltimore Milwaukee Birmingham Baltimore Offices New York Cincinnati Florham Park, NJ Boston St. Louis New York San Francisco P

19. Slide 19: Institutional Group

    Institutional Group STIFEL

20. Slide 20: Institutional Group

    Institutional Group Overview Net Revenues ($MM)(2)(3) Provides securities brokerage, trading, research, underwriting and $1,214 $1,200  $1,111 $1,055 corporate advisory services $997 $976 $1,014 $900 $861  Largest provider of U.S. Equity Research $668 $626 3rd largest U.S Investment bank by U.S. e

21. Slide 21: Building Scale and Capabilities into a $1.2 Billion Revenue Segment

    Building Scale and Capabilities into a $1.2 Billion Revenue Segment Investment Banking Fixed Income Equities Knight 21

22. Slide 22: Institutional Group – Advisory

    Institutional Group – Advisory 2010-2019: Leadership in M&A of Public Companies and deals < $1bn. All Deals < $1 Billion in Value Public Deals < $1 Billion in Value Rank Investment Bank Sell-side Buy-side Total Value Rank Investment Bank Sell-side Buy-side Total Value 1 Goldman Sachs 438 312 750 $34

23. Slide 23: Institutional Group – Equity Underwriting

    Institutional Group – Equity Underwriting Accomplished U.S. Equity Underwriting Franchise – All Equity Transactions All Managed Equity Deals Since 2010 Bookrun Equity Deals Since 2010 ($ in billions) # of $ ($ in billions) # of $ Rank Firm Deals Volume Rank Firm Deals Volume 1 JPMorgan 2,138 $1,135.

24. Slide 24: Institutional Group – Research

    Institutional Group – Research Largest U.S. Equity Research Platform U.S. Equity Research Coverage (1)(2) Stifel Research Highlights Com panies Under Cover age  Largest provider of U.S. Equity Research Platform Rank Fir m Over al l Mid Cap Sm al l Cap 1 Stifel / KB W 1 ,2 0 8 433 316  #1 U.S. prov

25. Slide 25: Institutional Group – Equity Sales and Trading

    Institutional Group – Equity Sales and Trading Powerful Platform Spanning North America and Europe Institutional Equity Sales Equity Trading  82 person sales force  38 sales traders located in Baltimore, New York, Boston, San  Experts in small and mid cap growth and value Francisco, Geneva, Londo

26. Slide 26: Institutional Group – Fixed Income Capital Markets

    Institutional Group – Fixed Income Capital Markets Strong Fixed Income Brokerage Capabilities Institutional Fixed Income Sales Institutional Fixed Income Trading  Comprehensive platform  Unmatched distribution network for clients, issuers and debt  85 traders with annual client trade volume appro

27. Slide 27: Institutional Group – Public Finance

    Institutional Group – Public Finance Overview  Stifel has been growing its public finance  Total of 36 Public Finance offices practice both organically and through  Nearly 200 Public Finance professionals acquisitions over the past seven years  Specialty sectors: including De La Rosa, Merchant C

28. Slide 28: Fourth Quarter & Full Year 2019 Results

    Fourth Quarter & Full Year 2019 Results 28

29. Slide 29: 2019 Full Year Results

    2019 Full Year Results • 24th Consecutive Year of Record Net Revenue of $3.34 billion, up 10% • Record Client Assets of $330 billion, up 22% Y/Y • Record GAAP EPS of $5.49, up 16% • Record Fee-based Assets of $117 billion, up 30%, Y/Y • Record Non-GAAP EPS of $6.10, up 16% • Recruited 150 Financial

30. Slide 30: Four Years of Substantial Growth

    Four Years of Substantial Growth 2015-2019 (millions) 2015** 2016** 2017 2018 2019 Change Inco me Statement* Total net revenue $2,335 $2,580 $2,928 $3,025 $3,337 43% growth 10% 13% 3% 10% Net income available to common s hareholders $149 $186 $323 $429 $480 222% growth 25% 74% 33% 12% Earnings per s

31. Slide 31: Fourth Quarter 2019 Results

    Fourth Quarter 2019 Results • Record Non-GAAP Net Revenue of $944 million, up 19% Y/Y. • Record GAAP EPS of $1.62, up 17% Y/Y • Record Asset Management & Services Fees of $224 million, up 7% • Non-GAAP Pre-tax Margin of 20.5%, up 30 bps Q/Q Y/Y. • Non-GAAP ROCE of 18.2% & Non-GAAP ROTCE of 30.6% • R

32. Slide 32: Global Wealth Management

    Global Wealth Management Y/Y Sequential YTD GWM Net Revenue millions 4Q19 Change Change 2019 Change $600 Global Wealth Management Revenue $500 Commissions $129 10% 9% $477 1% Net Revenue (mil) $400 Principal Transactions $45 11% 7% $172 4% $300 Brokerage $174 11% 9% $650 2% $200 Asset Management & S

33. Slide 33: Institutional Group

    Institutional Group Institutional Group Net Revenue Y/Y Sequential YTD $400 millions 4Q19 Change Change 2019 Change $350 Ins titutional Revenue G AAP Net Revenue (mil.) $300 Adv iso ry $155 40% 48% $448 21% $250 $200 Equity $150 Underwriting $64 24% 22% $204 -4% $100 $50 Brokerage $46 -6% 12% $167 -

34. Slide 34: Brokerage Revenue and Asset Management & Service Fees

    Brokerage Revenue and Asset Management & Service Fees (000s) 4Q19 4Q18 % Change 3Q19 % Change 2019 2018 % Change Global Wealth Management brokerage revenue $174,000 $157,331 11% $160,117 9% $649,699 $638,173 2% Institutional brokerage: Equities 45,989 48,705 -6% 41,037 12% 166,577 185,960 -10% Fixed

35. Slide 35: Investment Banking Revenue

    Investment Banking Revenue Investment banking: Three Months Ended YTD (000s) 4Q19 4Q18 % Change 3Q19 % Change 2019 2018 % Change Capital raising: Equities $70,461 $56,574 25% $59,968 17% $231,326 $235,508 -2% Fixed Income 51,382 33,570 53% 33,975 51% 138,116 100,680 37% Total capital raising 121,843

36. Slide 36: Net Interest Income

    Net Interest Income Average Yields on Balance Sheet Net Interest Income Growth 4Q19 4Q18 Change 3Q19 %Change $160 $142 $135 $135 $136 Assets: $140 $127 Bank loans 3.88% 4.11% -23 bps 4.09% -21 bps $120 N et Interest Income (mil.) $100 Commercial 4.37% 4.79% -42 bps 4.77% -40 bps $80 Securities based

37. Slide 37: Stifel Bancorp, Inc.

    Stifel Bancorp, Inc. % % (mil. except for %'s) 4Q19 4Q18 Change 3Q19 Change Assets: Mortgage Loans 3,310 2,875 15% 3,043 9% Commercial Loans 3,439 3,304 4% 3,316 4% Securities Based Loans 2,098 1,787 17% 1,986 6% Commercial Real Estate 429 319 34% 388 11% Loans Held for Sale 389 206 89% 265 47% Tota

38. Slide 38: Expenses

    Expenses Non-GAAP Expenses & Pre-tax Three Months Ended YTD Compensation Ratio Income % % % 60.0% 59.0% 4Q19 4Q18 Change 3Q19 Change 2019 2018 Change 59.0% 58.3% (millions) 57.9% 58.1% 58.0% Compensation $551 $444 24% $477 15% #DIV/0! $1,946 $1,753 11% 57.0% Non-compensation $200 $175 14% $179 12% $

39. Slide 39: Outlook

    Outlook STIFEL

40. Slide 40: 2019 Results & 2020 Outlook

    2019 Results & 2020 Outlook millions 2019 Guidance 2019 Actual 2020 Estimate Net Revenue $3,050 - $3,350 $3,337 $3,500-$3,700 Net Interest Income $530 - $550 $547 $590 - $605 Incremental Acquisition-related Revenue NA $84 $120 - $135 Brokerage NA $34 $45 - $50 Investment Banking NA $50 $75 - $85 Com

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