Stifel Financial Corporation · NYSE:SF
Stifel Financial — Q2 2019 Earnings Presentation
14 slides from Stifel Financial's earnings presentation, Jul 30, 2019
Slide 1: 2nd Quarter Financial Results Presentation
2nd Quarter Financial Results Presentation July 30, 2019
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: 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
Slide 4: Investment Banking Revenue
Investment Banking Revenue Investment banking: Thr ee Months Ended YTD (0 00s) 2 Q19 2Q1 8 % Change 1 Q19 % 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
Slide 5: 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
Slide 6: 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%
Slide 7: Segments, Balance Sheet, & Expenses
Segments, Balance Sheet, & Expenses 6
Slide 8: Global Wealth Management
Global Wealth Management Y/Y Seque nti al YTD millions 2Q 19 Change Change 2019 Change Global Wealth Manage ment Revenue Commissions $120 2% 9% $230 -3% Principal Transactions $42 2% -3% $85 1% Brokerage $162 2% 6% $316 -2% Asset Management & Service Fees $211 6% 8% $406 3% Net Interest $138 10% -5%
Slide 9: Institutional Group
Institutional Group Institutional Group Net Revenue Y/Y Sequen tial YTD $350 millions 2Q19 Change Chan ge 2019 Chan ge GAAP Net Revenue (mil.) $300 In s titution al Reven ue $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 -1
Slide 10: Balance Sheet
Balance Sheet ` 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 1Q19 2Q19 Tier 1 Leverage 32.3% 30.5% 25.6% 21.4% 17.7% 15.4% 16.5% 16.6% 10.2% 9.5% 9.3% 9.8% 10.0% Tier 1 Risk Based Capital 49.4% 40.5% 29.1% 27.4% 26.8% 26.7% 25.0% 26.3% 20.3% 19.0% 18.2% 18.5% 18.0% Risk Weighting Assets De
Slide 11: 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
Slide 12: Expenses
Expenses Non-GAAP Ex penses & 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%/ $918 $892 3% 57.0% 56.5% 56.0% Non-compensation $179 $167 7% $170 5%/ $349 $334
Slide 13: Outlook
Outlook STIFEL
Slide 14: STIFEL
STIFEL 3