Stifel Financial Corporation · NYSE:SF
Stifel Financial — FY2015 Earnings Presentation
24 slides from Stifel Financial's earnings presentation, Feb 23, 2016
Slide 1: 4th Quarter and Full-Year 2015 Financial Results Presentation
4th Quarter and Full-Year 2015 Financial Results Presentation February 23, 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: Chairman's Comments
Chairman’s Comments “We are proud to report that 2015 was our 20th consecutive year of record net revenues. We completed two acquisitions: Sterne Agee in June, which added financial advisors and fixed income capabilities, and Barclays Wealth and Investment Management, Americas in December, which sig
Slide 4: Market Overview
Market Overview Note: Volumes are in million $, except trading volumes which are in million shares. Source: Dealogic, SIFMA, Bloomberg, Strategic Insight Simfund and KBW Research.
Slide 5: Financial Results
Financial Results
Slide 6: Stifel Financial Corp. Results: Three months ended December 31, 2015
Stifel Financial Corp. Results Three months ended December 31, 2015 Adjustments consist primarily of acquisition related expenses, which management believes are duplicative and will be eliminated, stock-based compensation and other expenses which in management’s view are not representative of on-goi
Slide 7: Stifel Financial Corp. Results: Year ended December 31, 2015
Stifel Financial Corp. Results Year ended December 31, 2015 Adjustments consist primarily of acquisition related expenses, which management believes are duplicative and will be eliminated, stock-based compensation and other expenses which in management’s view are not representative of on-going busin
Slide 8: Source of Revenues
Source of Revenues Th Year Ended % % % (Sin thousands) 12/31/15 12/31/14__Change 9/30/15 Change | 12/31/15 12/31/14__ Change Commissions $ 187,287 $ 180,127 4.0% $ 194,083 (3.5%) | $ 749,536 $ 690,197 86% Principal transactions 107,464 91,617 17.3% 95,593 12.4% 389,319 409,929 5.0% Brokerage revenue
Slide 9: Brokerage & Investment Banking Revenues
Brokerage & Investment Banking Revenues
Slide 10: Non-GAAP Non-Interest Expenses
Non-GAAP Non-Interest Expenses (1) _________________________________________________________ Excludes adjustments for duplicative items associated with the integration of acquired businesses (merger-related expenses).
Slide 11: Global Wealth Management
Global Wealth Management _________________________________________________________ * Percentage not meaningful.
Slide 12: Institutional Group
Institutional Group Year Ended (Sin thousands) 1281/15 __ 12/31/14 % Change 9/30/15 % Change | 12/31/15 _12/31/14_—_~% Change Net revenues $ 206,325 $276,222 (10.8%) $232,125 6.1% $ 997,071 (2.2%) Compensation and benefits 143,162 163,226 (15.4%) 143,911 (0.5%) 612,330 (2.6%) Non-comp operating expe
Slide 13: Non-GAAP Other Segment Year-Over-Year Change
Non-GAAP Other Segment Year-Over-Year Change
Slide 14: Financial Condition
Financial Condition
Slide 15: Balance Sheet Growth Resumed Asset Growth in 4Q15
Balance Sheet Growth Resumed Asset Growth in 4Q15
Slide 16: Stifel Bank & Trust
Stifel Bank & Trust (an operating unit of GWM) Note: Actual amounts presented above are as of period-end and yields are based off of quarter-to-date averages. Investment securities includes available-for-sale and held-to-maturity securities. Includes loans held for sale. Excluding acquired loans (pu
Slide 17: Capital Structure
Capital Structure (in thousands, except ratios) _________________________________________________________ Debt to equity ratio includes the debentures to Stifel Financial Capital Trusts and Senior Notes divided by stockholders’equity.
Slide 18: Share Repurchases
Share Repurchases 9.1 Million Shares Remain Under The Current Authorization
Slide 19: Acquisition Updates
Acquisition Updates
Slide 20: Acquisition Philosophy
Acquisition Philosophy Strategic combinations need to be accretive to: Shareholders Expected revenue and EPS growth in a reasonable timeframe Financial metrics: Ascertain our view of enterprise value Determine the split of value between shareholders and employees Capitalize purchase price to shareho
Slide 21: Barclays Overview
Barclays Overview Transaction Overview $147 million total pre-tax investment, as follows: Non-GAAP charges, including stock-based compensation, assumed legacy broker notes, and integration expenses Goodwill in excess of net assets acquired $100 million total NPV after-tax investment Newly issued Sti
Slide 22: Sterne Non-GAAP Actual vs. Original Estimate
Sterne Non-GAAP Actual vs. Original Estimate (as presented on 2/23/15)
Slide 23: Non-GAAP Deal Integration Costs
Non-GAAP Deal Integration Costs
Slide 24: Q&A
Q&A