Stifel Financial Corporation · NYSE:SF

Stifel Financial — Goldman Sachs US Financial Services Conference 2017

37 slides from Stifel Financial's conference presentation, Dec 6, 2017

  1. Slide 1: Investor Presentation

    Investor Presentation Goldman Sachs US Financial Services Conference December 6, 2017

  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 2,252 financial $29B in total $14.5B in assets Experienced s

  5. Slide 5: A History of Growth

    A History of Growth 2015 2016 2017 Barclays Wealth & Investment Eaton Partners City Securities Management, ISM Capital Ziegler Wealth Sterne Agee, Management 2014 Sidoti Joint Venture, De La Rosa, Leumi Partners Collaboration Oriel Securities, Agreement 1919 Investment Counsel, Merchant Capital 2013

  6. Slide 6: Driving Shareholder Value Through Deal Integration & Balance Sheet Growth

    Driving Shareholder Value Through Deal Integration & Balance Sheet Growth 6

  7. Slide 7: Balance Sheet Growth

    Balance Sheet Growth $22,000 $20,484 $19,534 $20,000 $19,129 $19,136 $18,000 $17,205 $15,386 $16,000 Infrastructure $14,214 Build Total Assets in Millions $14,000 $13,326 $12,000 $9,518 $9,359 $10,000 $9,009 $8,000 $6,966 $6,000 $4,952 $4,213 $4,000 $3,167 $1,558 $2,000 $- 2008 2009 2010 2011 2012 2

  8. Slide 8: 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.) 9/30/2016 9/30/2017 Loans: Total consolidated assets $17,205 $20,484 • Comprised of securities based loans, C&I, and Investment

  9. Slide 9: Stifel Overview

    Stifel Overview STIFEL

  10. Slide 10: Stifel – Premier Investment Bank and Wealth Management Firm

    Stifel – Premier Investment Bank and Wealth Management Firm Stifel at a Glance 2016 GAAP Net Revenue - $2.6 billion Global Wealth Management (GWM) Institutional Group (IG) 2016 Net Revenue - $1.6 billion 2016 Net Revenue - $1.0 billion  Private Client  Equity & Fixed Income Capital Raising  Stife

  11. Slide 11: 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

  12. Slide 12: 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

  13. Slide 13: A Stable Track Record Through Multiple Business Cycles

    A Stable Track Record Through Multiple Business Cycles Non-GAAP Net Revenues(1) ($MM) Total Equity ($MM) $3,000 $2,932 $2,738 $2,800 $2,581 $2,492 $2,500 $2,335 $2,400 $2,320 $2,213 $1,978 $2,059 $2,000 $2,124 $2,000 $1,594 $1,417 $1,600 $1,495 $1,500 $1,384 $1,254$1,302 $1,091 $1,200 $870 $1,000 $7

  14. Slide 14: Global Wealth Management

    Global Wealth Management STIFEL

  15. Slide 15: 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 more than 2,250 financial advisors currently  Proven organic growth and acquirer of private client business  Strategy of recruit

  16. Slide 16: Building Scale and Capabilities into a $1.6B Revenue Segment

    Building Scale and Capabilities into a $1.6B Revenue Segment  ~60 advisors managing ~$5B in AUM  Expected Closing first quarter 2018  ~40 advisors managing ~$4B in AUM  January 2017  ~100 advisors managing over $20B in AUM  December 2015 Private Client  ~130 advisors managing ~ $10B in AUM 

  17. Slide 17: GWM - Private Client Group

    GWM - Private Client Group Key Operating Metrics Financial Advisors(1) Branches(1) 2,500 2,291 2,282 400 2,252 361 360 356 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 1,163 196 200 1,000 148 150 735 111 100 500 50 0 0 2006 2007 2008 2009 2010 2011 2012 2

  18. Slide 18: GWM – Stifel Bank & Trust

    GWM – Stifel Bank & Trust Overview Key Statistics (000s) (3)  Acquired FirstService Bank, a St. Louis-based, Missouri- Total assets $14,539,000 chartered commercial bank, in April 2007 Total deposits 12,884,000  Stifel Financial became a bank holding company and Total equity 1,019,000 financial se

  19. Slide 19: Growing Asset Management Capabilities

    Growing Asset Management Capabilities Asset Management Subsidiaries with $28.8 Billion in Client Assets Assets $11.7 Billion $11.3 Billion $3.5 Billion $2.0 Billion Chicago Baltimore St. Louis Birmingham, AL Offices Milwaukee Cincinnati Baltimore Florham Park, NJ New York New York San Francisco Phil

  20. Slide 20: Institutional Group

    Institutional Group STIFEL

  21. Slide 21: Institutional Group

    Institutional Group Overview Net Revenues ($MM)(2)(3)(4) Provides securities brokerage, trading, research, underwriting and $1,200  corporate advisory services $1,014 $997 $976 $900 $861  Largest provider of U.S. Equity Research $668 2nd largest Equity trading platform in the U.S. outside of the B

  22. Slide 22: Building Scale and Capabilities into a $1.0B Revenue Segment

    Building Scale and Capabilities into a $1.0B Revenue Segment  Growth Focused Investment Banking, Research, Sales and Trading  July 2010  Core of our Institutional sales, trading and research group  December 2005  Enhances European debt capital markets capabilities  February 2016 Equities  Hig

  23. Slide 23: Institutional Group – Advisory

    Institutional Group – Advisory 2010-2017 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 363 235 598

  24. Slide 24: 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 1,689 $924.4

  25. Slide 25: Institutional Group – Research

    Institutional Group – Research Largest U.S. Equity Research Platform U.S. Equity Research Coverage (1)(2) Stifel Research Highlights Largest provider of U.S. Equity Research Companies Under Coverage Rank Firm Overall Mid Cap Small Cap  1 Stifel/KBW 1,148 414 308 2 JPMorgan 1,123 400 138  Largest p

  26. Slide 26: Institutional Group – Equity Sales and Trading

    Institutional Group – Equity Sales and Trading Powerful Platform Spanning North America and Europe Institutional Equity Sales Equity Trading  80 person sales force, commission-based  28 sales traders located in  Experts in small and mid cap growth and value  Baltimore, New York, Boston, Dallas,

  27. Slide 27: Institutional Group – Fixed Income Capital Markets

    Institutional Group – Fixed Income Capital Markets Strong Fixed Income Brokerage Capabilities Overview Client Distribution (1)(2)  Comprehensive platform Other, 9% Hedge Fund, 11% Insurance Government, 2%  125 traders with annual client trade volume approaching Company, 7% $500 billion Broker/Deal

  28. Slide 28: Institutional Group – Public Finance

    Institutional Group – Public Finance Overview  Stifel has ranked in the top ten nationally  Specialty sectors: for senior managed negotiated Education underwritings for the past five years, and  Stifel has ranked #1 nationally for senior  Local Government/Municipal managed K-12 negotiated underw

  29. Slide 29: Third Quarter Review

    Third Quarter Review STIFEL 29

  30. Slide 30: Third Quarter Results

    Third Quarter Results Three Months Ended Three Months Ended Financial Highlights Non-GAAP U.S. GAAP (000s, except per share data) 3Q17 3Q16 % Change 2Q17 % Change 3Q17 3Q16 % Change 2Q17 % Change Net revenues $721,169 $645,767 12% $725,647 -1% $721,169 $641,986 12% $725,647 -1% Compensation ratio 61

  31. Slide 31: Investment Banking, Brokerage Revenue, & Asset Management & Service Fees

    Investment Banking, Brokerage Revenue, & Asset Management & Service Fees Investment banking: Three Months Ended (000s) 3Q17 3Q16 % Change 2Q17 % Change Capital raising: Global Wealth Management revenue $9,072 $12,212 -26% $10,641 -15% Equity 43,277 20,782 108% 45,664 -5% Fixed income 27,573 25,483 8

  32. Slide 32: GAAP to Non-GAAP Reconciliation

    GAAP to Non-GAAP Reconciliation Three months ended September 30, 2017 Three months GAAP to Non-GAAP Reconciliation for Third Quarter 2017 GAAP Results ended (000s) 09/30/17 (000s) 09/30/17 GAAP Net Income $66,536 Total GAAP Compensation & benefits expense $448,410 Preferred Dividend 2,343 GAAP comp.

  33. Slide 33: Balance Sheet & Net Interest Margin

    Balance Sheet & Net Interest Margin Average Yields on Balance Sheet Net Interest Income Growth 3Q'17 3Q'16 % Change 2Q'17 % Change $120 $100 Assets: $100 $92 Bank loans 3.27% 2.93% 34 bps 3.10% 17 bps Net Interest Income (mil.) $85 $80 $75 Commercial 3.96% 3.52% 44 bps 3.76% 20 bps $55 Securities ba

  34. Slide 34: Segment Results

    Segment Results STIFEL

  35. Slide 35: Global Wealth Management

    Global Wealth Management $500 GWM Net Revenue Y/Y Sequential millions 3Q17 Change Change $400 Net Revenue (mil) Global Wealth Management Revenue $300 Commissions $115 -2% -4% $200 Principal Transactions $43 -10% -10% $100 Brokerage $158 -4% -6% Asset Management & Service Fees $180 26% 4% $0 Net Inte

  36. Slide 36: Stifel Bank & Trust

    Stifel Bank & Trust % % (mil. except for %'s) 3Q17 3Q16 Change 2Q17 Change Assets: Investments $7,238 $5,377 35% $6,753 7% Mortgage Loans 2,518 1,804 40% 2,249 12% Commercial Loans 2,380 1,558 53% 2,064 15% Securities Based Loans 1,840 1,453 27% 1,756 5% Total Loans, net $6,783 $4,957 37% $6,160 10%

  37. Slide 37: Institutional Group

    Institutional Group Institutional Group Net Revenue Y/Y Sequential $300 millions 3Q17 Change Change GAAP Net Revenue (mil.) $250 Ins titutional Revenue $200 Equity $150 Advisory $95 13% 17% $100 Underwriting $43 108% -5% $50 Brokerage $45 -11% -11% $0 3Q16 4Q16 1Q17 2Q17 3Q17 Total Equity Capital Ma

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