Stifel Financial Corporation · NYSE:SF

Stifel Financial — Investor Presentation (September 2019)

38 slides from Stifel Financial's investor presentation, September 2019

1. Slide 1: Investor Presentation September 2019

   Investor Presentation September 2019

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 2,193 financial $33B in total $16.6B 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 2018 GAAP Net Revenue - $3.0 billion Global Wealth Management (GWM) Institutional Group (IG) 2018 Net Revenue - $2.0 billion 2018 Net Revenue - $1.1 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)(2) ($MM) Total Equity(1) ($MM) $3,500 $3,500 $3,429 $3,168 $3,025 $2,928 $3,000 $3,000 $2,862 $2,738 $2,580 $2,492 $2,500 $2,335 $2,500 $2,320 $2,213 $2,059 $1,978 $2,000 $2,000 $1,594 $1,417 $1,495 $1,500 $1,384 $1,500

11. Slide 11: Balance Sheet Growth

    Balance Sheet Growth $24,520 $24,184 $24,344 $25,000 $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 ` 2008 2009 2010 2011 2012 2013 2014 2015 2016 201

12. Slide 12: Bank Drove Significant Balance Sheet & Revenue Growth

    Bank Drove Significant Balance Sheet & Revenue Growth Impact of Bank Growth LTM on Consolidated Results Bank growth has been balanced between loans and investments: (mil.) 6/30/2018 6/30/2019 Loans: Total consolidated assets $22,608 $24,344 • Comprised of securities based loans, C&I, and Investment

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 2,193 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 $2Billion Revenue Segment

    Building Scale and Capabilities into a $2Billion Revenue Segment Private Client Asset Management Bank 56 UBS Branches 15

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 2,282 400 377 2,244 2,193 361 360 369 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 $16,646 chartered commercial bank, in April 2007 Total deposits 14,901  Stifel Financial became a bank holding company and Total equity 1,236 financial services h

18. Slide 18: Growing Asset Management Capabilities

    Growing Asset Management Capabilities Asset Management Subsidiaries with $33.2 Billion in Client Assets Assets $12.1 Billion $13.4 Billion $4.2 Billion $3.4 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)(4)  Provides securities brokerage, trading, research, underwriting and $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 Equity trading platform in the U.

21. Slide 21: Building Scale and Capabilities into a $1Billion Revenue Segment

    Building Scale and Capabilities into a $1Billion Revenue Segment Investment Banking Fixed Income Equities Knight 21

22. Slide 22: Institutional Group – Advisory

    Institutional Group – Advisory 2010-2019 YTD: 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 425 299 724

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 2,057 $1,089.

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. Small & Mid-cap Equity Research² Rank Fir m Over al l Mid Cap Sm al l Cap 1 Stifel / KB W 1 ,2 1 9 445 341  #1 U

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  65 person sales force  21 sales traders located in Baltimore, New York, Boston, San  Experts in small and mid cap growth and value Francisco, and London 

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 Public Finance has ranked #1  Specialty sectors: nationally in senior managed, negotiated Education municipal issues for each of the past five  years, including again in 2018.  Local Government/Municipal Healthcare  More than one in every 10

28. Slide 28: Second Quarter 2019 Results

    Second Quarter 2019 Results 28

29. Slide 29: Highlights & Second Quarter Results

    Highlights & Second Quarter Results • Net Revenue of $801 million, up 8% Y/Y. • Record Fee-Based Assets of $104 billion, up 14% Y/Y • Record Global Wealth Management Net Revenue of $532 million, up • Non-GAAP Pre-tax Margin of 19.8%, up 130 bps Y/Y 7% Y/Y. • Non-GAAP ROCE of 14.3% & Non-GAAP ROTCE o

30. Slide 30: Investment Banking Revenue

    Investment Banking Revenue Investment banking: Three Months Ended YTD (000s) 2Q19 2Q18 % Change 1Q19 % Change 2019 2018 % Change Capital raising: Global Wealth Management revenue $10,559 $7,968 33% $8,223 28% $18,781 $15,656 20% Equity Capital Markets 59,156 44,087 34% 27,859 112% 87,015 96,794 -10%

31. Slide 31: Brokerage Revenue and Asset Management & Service Fees

    Brokerage Revenue and Asset Management & Service Fees Brokerage Revenue Three Months Ended YTD (000s) 2Q19 2Q18 % Change 1Q19 % Change 2019 2018 % Change Global Wealth Management brokerage revenue $162,388 $159,290 2% $153,194 6% $315,582 $322,024 -2% Institutional brokerage: Equity Capital Markets

32. Slide 32: Net Interest Income

    Net Interest Income Average Yields on Balance Sheet Net Interest Income Growth 2Q19 2Q18 Change 1Q19 %Change $160 $142 $135 Assets: $140 $127 $117 $121 Bank loans 4.21% 3.63% 58 bps 4.15% 6 bps Net Interest Income (mil.) $120 $100 Commercial 4.95% 4.36% 59 bps 4.78% 17 bps $80 Securities based 4.21%

33. Slide 33: Segments, Balance Sheet, & Expenses

    Segments, Balance Sheet, & Expenses 33

34. Slide 34: Global Wealth Management Pre-tax Contribution

    Global Wealth Management GWM Net Revenue Y/Y Sequential YTD $600 millions 2Q19 Change Change 2019 Change $500 Global Wealth Management Revenue Net Revenue (mil) $400 Commissions $120 2% 9% $230 -3% $300 Principal Transactions $42 2% -3% $85 1% $200 Brokerage $162 2% 6% $316 -2% $100 Asset Management

35. Slide 35: Institutional Group

    Institutional Group Institutional Group Net Revenue Y/Y Sequential YTD $350 millions 2Q19 Change Change 2019 Change GAAP Net Revenue (mil.) $300 Ins titutional Revenue $250 Adv iso ry $83 -5% -21% $188 2% $200 Equity $150 Underwriting $59 34% 112% $87 -10% $100 $50 Brokerage $41 -10% 5% $80 -15% $0

36. Slide 36: Balance Sheet

    Balance Sheet $24,520 $24,184 $24,344 $25,000 $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 ` 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

37. Slide 37: Stifel Bancorp, Inc.

    Stifel Bancorp, Inc. % % (mil. except for %'s) 2Q19 2Q18 Change 1Q19 Change Assets: Mortgage Loans 2,985 2,704 10% 2,928 2% Commercial Loans 3,338 2,677 25% 3,315 1% Securities Based Loans 1,963 1,845 6% 1,861 5% Commercial Real Estate 367 127 189% 362 1% Loans Held for Sale 164 211 -22% 144 14% Tot

38. Slide 38: Expenses

    Expenses Non-GAAP Expenses & Three Months Ended YTD Compensation Ratio Pre-tax Income % % % 60.0% 59.0% 59.0% 2Q19 2Q18 Change 1Q19 Change 2019 2018 Change 59.0% 57.9% (millions) 58.0% Compensation $464 $438 6% $454 2% #DIV/0! $918 $892 3% 57.0% 56.5% 56.0% Non-compensation $179 $167 7% $170 5% #DIV

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