Florida |
1-9109 |
59-1517485 |
||||||||||||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(I.R.S. Employer Identification No.) |
||||||||||||
880 Carillon Parkway |
St. Petersburg |
Florida |
33716 |
|||||||||||
(Address of principal executive offices) |
(Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Common Stock, $.01 par value | RJF | New York Stock Exchange | ||||||
Depositary Shares, Each Representing a 1/40th Interest in a Share of 6.75% Fixed-to-Floating Rate Series A Non-Cumulative Perpetual Preferred Stock | RJF PrA | New York Stock Exchange | ||||||
Depositary Shares, Each Representing a 1/40th Interest in a Share of 6.375% Fixed-to-Floating Rate Series B Non-Cumulative Perpetual Preferred Stock | RJF PrB | New York Stock Exchange |
RAYMOND JAMES FINANCIAL, INC. |
||||||||
Date: July 27, 2022 |
By: |
/s/ Paul M. Shoukry |
||||||
Paul M. Shoukry | ||||||||
Chief Financial Officer and Treasurer |
July 27, 2022 | FOR IMMEDIATE RELEASE | |||||||
Media Contact: Steve Hollister, 727.567.2824 | ||||||||
Investor Contact: Kristina Waugh, 727.567.7654 | ||||||||
raymondjames.com/news-and-media/press-releases |
RAYMOND JAMES FINANCIAL, INC.
Fiscal Third Quarter of 2022
|
Selected Financial Highlights (Unaudited) |
Three months ended | % change from | |||||||||||||||||||||||||||||||
$ in millions, except per share amounts | June 30, 2022 |
June 30, 2021 |
March 31, 2022 |
June 30, 2021 |
March 31, 2022 |
|||||||||||||||||||||||||||
Net revenues | $ | 2,718 | $ | 2,471 | $ | 2,673 | 10% | 2% | ||||||||||||||||||||||||
Pre-tax income | $ | 415 | $ | 385 | $ | 433 | 8% | (4)% | ||||||||||||||||||||||||
Net income available to common shareholders | $ | 299 | $ | 307 | $ | 323 | (3)% | (7)% | ||||||||||||||||||||||||
Earnings per common share: (7) (8) |
||||||||||||||||||||||||||||||||
Basic | $ | 1.41 | $ | 1.49 | $ | 1.56 | (5)% | (10)% | ||||||||||||||||||||||||
Diluted | $ | 1.38 | $ | 1.45 | $ | 1.52 | (5)% | (9)% | ||||||||||||||||||||||||
Non-GAAP measures: (2) |
||||||||||||||||||||||||||||||||
Adjusted pre-tax income |
$ | 480 | $ | 507 | $ | 464 | (5)% | 3% | ||||||||||||||||||||||||
Adjusted net income available to common shareholders | $ | 348 | $ | 399 | $ | 346 | (13)% | 1% | ||||||||||||||||||||||||
Adjusted earnings per common share – basic (7) (8) |
$ | 1.65 | $ | 1.94 | $ | 1.67 | (15)% | (1)% | ||||||||||||||||||||||||
Adjusted earnings per common share – diluted (7) (8) |
$ | 1.61 | $ | 1.88 | $ | 1.62 | (14)% | (1)% |
Nine months ended | ||||||||||||||||||||
$ in millions, except per share amounts | June 30, 2022 |
June 30, 2021 |
% change | |||||||||||||||||
Net revenues | $ | 8,172 | $ | 7,065 | 16% | |||||||||||||||
Pre-tax income | $ | 1,406 | $ | 1,231 | 14% | |||||||||||||||
Net income available to common shareholders | $ | 1,068 | $ | 974 | 10% | |||||||||||||||
Earnings per common share: (7) (8) |
||||||||||||||||||||
Basic | $ | 5.12 | $ | 4.73 | 8% | |||||||||||||||
Diluted | $ | 4.99 | $ | 4.61 | 8% | |||||||||||||||
Non-GAAP measures: (2) |
||||||||||||||||||||
Adjusted pre-tax income | $ | 1,523 | $ | 1,384 | 10% | |||||||||||||||
Adjusted net income available to common shareholders | $ | 1,156 | $ | 1,090 | 6% | |||||||||||||||
Adjusted earnings per common share – basic (7) (8) |
$ | 5.55 | $ | 5.29 | 5% | |||||||||||||||
Adjusted earnings per common share – diluted (7) (8) |
$ | 5.41 | $ | 5.16 | 5% |
Consolidated Statements of Income (Unaudited) | ||||||||||||||||||||||||||||||||
Three months ended | % change from | |||||||||||||||||||||||||||||||
in millions, except per share amounts | June 30, 2022 |
June 30, 2021 |
March 31, 2022 |
June 30, 2021 |
March 31, 2022 |
|||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
Asset management and related administrative fees | $ | 1,427 | $ | 1,262 | $ | 1,464 | 13% | (3)% | ||||||||||||||||||||||||
Brokerage revenues: | ||||||||||||||||||||||||||||||||
Securities commissions | 385 | 415 | 422 | (7)% | (9)% | |||||||||||||||||||||||||||
Principal transactions | 128 | 137 | 142 | (7)% | (10)% | |||||||||||||||||||||||||||
Total brokerage revenues | 513 | 552 | 564 | (7)% | (9)% | |||||||||||||||||||||||||||
Account and service fees | 211 | 161 | 179 | 31% | 18% | |||||||||||||||||||||||||||
Investment banking | 223 | 276 | 235 | (19)% | (5)% | |||||||||||||||||||||||||||
Interest income | 374 | 205 | 242 | 82% | 55% | |||||||||||||||||||||||||||
Other (9) |
30 | 55 | 27 | (45)% | 11% | |||||||||||||||||||||||||||
Total revenues | 2,778 | 2,511 | 2,711 | 11% | 2% | |||||||||||||||||||||||||||
Interest expense | (60) | (40) | (38) | 50% | 58% | |||||||||||||||||||||||||||
Net revenues | 2,718 | 2,471 | 2,673 | 10% | 2% | |||||||||||||||||||||||||||
Non-interest expenses: | ||||||||||||||||||||||||||||||||
Compensation, commissions and benefits (10) (11) |
1,834 | 1,661 | 1,852 | 10% | (1)% | |||||||||||||||||||||||||||
Non-compensation expenses: | ||||||||||||||||||||||||||||||||
Communications and information processing | 129 | 109 | 127 | 18% | 2% | |||||||||||||||||||||||||||
Occupancy and equipment | 65 | 58 | 62 | 12% | 5% | |||||||||||||||||||||||||||
Business development | 58 | 31 | 34 | 87% | 71% | |||||||||||||||||||||||||||
Investment sub-advisory fees | 38 | 34 | 40 | 12% | (5)% | |||||||||||||||||||||||||||
Professional fees (10) |
38 | 30 | 27 | 27% | 41% | |||||||||||||||||||||||||||
Bank loan provision/(benefit) for credit losses (12) |
56 | (19) | 21 | NM | 167% | |||||||||||||||||||||||||||
Losses on extinguishment of debt (13) |
— | 98 | — | (100)% | —% | |||||||||||||||||||||||||||
Other (9) (10) (12) |
85 | 84 | 77 | 1% | 10% | |||||||||||||||||||||||||||
Total non-compensation expenses | 469 | 425 | 388 | 10% | 21% | |||||||||||||||||||||||||||
Total non-interest expenses | 2,303 | 2,086 | 2,240 | 10% | 3% | |||||||||||||||||||||||||||
Pre-tax income |
415 | 385 | 433 | 8% | (4)% | |||||||||||||||||||||||||||
Provision for income taxes | 114 | 78 | 110 | 46% | 4% | |||||||||||||||||||||||||||
Net income | 301 | 307 | 323 | (2)% | (7)% | |||||||||||||||||||||||||||
Preferred stock dividends | 2 | — | — | NM | NM | |||||||||||||||||||||||||||
Net income available to common shareholders | $ | 299 | $ | 307 | $ | 323 | (3)% | (7)% | ||||||||||||||||||||||||
Earnings per common share – basic (7) (8) |
$ | 1.41 | $ | 1.49 | $ | 1.56 | (5)% | (10)% | ||||||||||||||||||||||||
Earnings per common share – diluted (7) (8) |
$ | 1.38 | $ | 1.45 | $ | 1.52 | (5)% | (9)% | ||||||||||||||||||||||||
Weighted-average common shares outstanding – basic (7) |
210.7 | 205.8 | 207.7 | 2% | 1% | |||||||||||||||||||||||||||
Weighted-average common and common equivalent shares outstanding – diluted (7) |
215.7 | 211.7 | 213.0 | 2% | 1% |
Consolidated Statements of Income (Unaudited) | ||||||||||||||||||||
Nine months ended | ||||||||||||||||||||
in millions, except per share amounts | June 30, 2022 |
June 30, 2021 |
% change | |||||||||||||||||
Revenues: | ||||||||||||||||||||
Asset management and related administrative fees | $ | 4,273 | $ | 3,502 | 22% | |||||||||||||||
Brokerage revenues: | ||||||||||||||||||||
Securities commissions | 1,232 | 1,239 | (1)% | |||||||||||||||||
Principal transactions | 403 | 432 | (7)% | |||||||||||||||||
Total brokerage revenues | 1,635 | 1,671 | (2)% | |||||||||||||||||
Account and service fees | 567 | 465 | 22% | |||||||||||||||||
Investment banking | 883 | 779 | 13% | |||||||||||||||||
Interest income | 841 | 608 | 38% | |||||||||||||||||
Other (9) |
108 | 155 | (30)% | |||||||||||||||||
Total revenues | 8,307 | 7,180 | 16% | |||||||||||||||||
Interest expense | (135) | (115) | 17% | |||||||||||||||||
Net revenues | 8,172 | 7,065 | 16% | |||||||||||||||||
Non-interest expenses: | ||||||||||||||||||||
Compensation, commissions and benefits (10) (11) |
5,570 | 4,809 | 16% | |||||||||||||||||
Non-compensation expenses: | ||||||||||||||||||||
Communications and information processing | 368 | 315 | 17% | |||||||||||||||||
Occupancy and equipment | 186 | 172 | 8% | |||||||||||||||||
Business development | 127 | 75 | 69% | |||||||||||||||||
Investment sub-advisory fees | 116 | 93 | 25% | |||||||||||||||||
Professional fees (10) |
93 | 85 | 9% | |||||||||||||||||
Bank loan provision/(benefit) for credit losses (12) |
66 | (37) | NM | |||||||||||||||||
Losses on extinguishment of debt (13) |
— | 98 | (100)% | |||||||||||||||||
Other (9) (10) (12) |
240 | 224 | 7% | |||||||||||||||||
Total non-compensation expenses | 1,196 | 1,025 | 17% | |||||||||||||||||
Total non-interest expenses | 6,766 | 5,834 | 16% | |||||||||||||||||
Pre-tax income |
1,406 | 1,231 | 14% | |||||||||||||||||
Provision for income taxes | 336 | 257 | 31% | |||||||||||||||||
Net income | 1,070 | 974 | 10% | |||||||||||||||||
Preferred stock dividends | 2 | — | NM | |||||||||||||||||
Net income available to common shareholders | $ | 1,068 | $ | 974 | 10% | |||||||||||||||
Earnings per common share – basic (7) (8) |
$ | 5.12 | $ | 4.73 | 8% | |||||||||||||||
Earnings per common share – diluted (7) (8) |
$ | 4.99 | $ | 4.61 | 8% | |||||||||||||||
Weighted-average common shares outstanding – basic (7) |
208.1 | 205.8 | 1% | |||||||||||||||||
Weighted-average common and common equivalent shares outstanding – diluted (7) |
213.5 | 210.9 | 1% |
RAYMOND JAMES FINANCIAL, INC. | Consolidated Selected Key Metrics | ||||
Fiscal Third Quarter of 2022 |
(Unaudited) |
As of | % change from | ||||||||||||||||||||||||||||||||||
$ in millions, except per share amounts |
June 30, 2022 |
June 30, 2021 |
March 31, 2022 |
June 30, 2021 |
March 31, 2022 |
||||||||||||||||||||||||||||||
Total assets | $ | 86,111 | $ | 57,161 | $ | 73,101 | 51% | 18% | |||||||||||||||||||||||||||
Total common equity attributable to Raymond James Financial, Inc. | $ | 9,395 | $ | 7,863 | $ | 8,602 | 19% | 9% | |||||||||||||||||||||||||||
Book value per share (7) (14) |
$ | 43.60 | $ | 38.28 | $ | 41.38 | 14% | 5% | |||||||||||||||||||||||||||
Tangible book value per share (2) (7) (14) |
$ | 35.79 | $ | 34.36 | $ | 36.46 | 4% | (2)% | |||||||||||||||||||||||||||
Capital ratios: |
|||||||||||||||||||||||||||||||||||
Tier 1 leverage | 10.8 | % | (6) |
12.6 | % | 11.1 | % | ||||||||||||||||||||||||||||
Tier 1 capital | 20.1 | % | (6) |
24.4 | % | 23.9 | % | ||||||||||||||||||||||||||||
Common equity tier 1 | 20.1 | % | (6) |
24.4 | % | 23.9 | % | ||||||||||||||||||||||||||||
Total capital | 21.4 | % | (6) |
25.6 | % | 25.0 | % |
Three months ended | Nine months ended | ||||||||||||||||||||||||||||||||||
June 30, 2022 |
June 30, 2021 |
March 31, 2022 |
June 30, 2022 |
June 30, 2021 |
|||||||||||||||||||||||||||||||
Return on common equity (15) |
13.3 | % | 15.9 | % | 15.0 | % | 16.3 | % | 17.4 | % | |||||||||||||||||||||||||
Adjusted return on common equity (2) (15) |
15.4 | % | 20.5 | % | 16.1 | % | 17.6 | % | 19.3 | % | |||||||||||||||||||||||||
Adjusted return on tangible common
equity (2) (15)
|
18.1 | % | 22.9 | % | 18.0 | % | 20.1 | % | 21.4 | % | |||||||||||||||||||||||||
Pre-tax margin (16) |
15.3 | % | 15.6 | % | 16.2 | % | 17.2 | % | 17.4 | % | |||||||||||||||||||||||||
Adjusted pre-tax margin (2) (16) |
17.7 | % | 20.5 | % | 17.4 | % | 18.6 | % | 19.6 | % | |||||||||||||||||||||||||
Total compensation ratio (17) |
67.5 | % | 67.2 | % | 69.3 | % | 68.2 | % | 68.1 | % | |||||||||||||||||||||||||
Adjusted total compensation ratio (2) (17) |
66.8 | % | 66.7 | % | 68.8 | % | 67.6 | % | 67.6 | % | |||||||||||||||||||||||||
Effective tax rate | 27.5 | % | 20.3 | % | 25.4 | % | 23.9 | % | 20.9 | % |
Client asset metrics ($ in billions) |
As of | % change from | |||||||||||||||||||||||||||||||||
June 30, 2022 |
June 30, 2021 |
March 31, 2022 |
June 30, 2021 |
March 31, 2022 |
|||||||||||||||||||||||||||||||
Client assets under administration | $ | 1,125.3 | $ | 1,165.0 | $ | 1,256.1 | (3)% | (10)% | |||||||||||||||||||||||||||
Private Client Group assets under administration | $ | 1,068.8 | $ | 1,102.9 | $ | 1,198.3 | (3)% | (11)% | |||||||||||||||||||||||||||
Private Client Group assets in fee-based accounts | $ | 606.7 | $ | 616.7 | $ | 678.0 | (2)% | (11)% | |||||||||||||||||||||||||||
Financial assets under management (3) |
$ | 182.4 | $ | 191.0 | $ | 193.7 | (5)% | (6)% |
Clients’ domestic cash sweep balances
($ in millions)
|
As of | % change from | |||||||||||||||||||||||||||||||||
June 30, 2022 |
June 30, 2021 |
March 31, 2022 |
June 30, 2021 |
March 31, 2022 |
|||||||||||||||||||||||||||||||
Raymond James Bank Deposit
Program (“RJBDP”): (18)
|
|||||||||||||||||||||||||||||||||||
Bank segment (4) (18) |
$ | 36,646 | $ | 29,253 | $ | 33,570 | 25% | 9% | |||||||||||||||||||||||||||
Third-party banks | 25,478 | 25,080 | 25,887 | 2% | (2)% | ||||||||||||||||||||||||||||||
Subtotal RJBDP | 62,124 | 54,333 | 59,457 | 14% | 4% | ||||||||||||||||||||||||||||||
Client Interest Program | 13,717 | 8,610 | 17,013 | 59% | (19)% | ||||||||||||||||||||||||||||||
Total clients’ domestic cash sweep balances |
$ | 75,841 | $ | 62,943 | $ | 76,470 | 20% | (1)% |
Three months ended | Nine months ended | ||||||||||||||||||||||||||||||||||
June 30, 2022 |
June 30, 2021 |
March 31, 2022 |
June 30, 2022 |
June 30, 2021 |
|||||||||||||||||||||||||||||||
Average yield on RJBDP - third-party banks (19) |
0.88 | % | 0.29 | % | 0.32 | % | 0.50 | % | 0.30 | % |
Private Client Group financial advisors | As of | % change from | |||||||||||||||||||||||||||||||||
June 30, 2022 |
June 30, 2021 |
March 31, 2022 |
June 30, 2021 |
March 31, 2022 |
|||||||||||||||||||||||||||||||
Employees | 3,615 | 3,423 | 3,601 | 6% | —% | ||||||||||||||||||||||||||||||
Independent contractors (5) |
5,001 | 4,990 | 5,129 | —% | (2)% | ||||||||||||||||||||||||||||||
Total advisors (5) |
8,616 | 8,413 | 8,730 | 2% | (1)% |
RAYMOND JAMES FINANCIAL, INC. | Consolidated Net Interest | ||||
Fiscal Third Quarter of 2022 |
(Unaudited) |
Consolidated Net Interest | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2022 | June 30, 2021 | March 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ in millions | Average balance |
Interest | Annualized average rate |
Average balance |
Interest | Annualized average rate |
Average balance |
Interest | Annualized average rate |
|||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 5,548 | $ | 10 | 0.76 | % | $ | 5,644 | $ | 3 | 0.20 | % | $ | 5,919 | $ | 3 | 0.20 | % | ||||||||||||||||||||||||||||||||||||||||||||
Assets segregated for regulatory purposes and restricted cash | 17,337 | 28 | 0.63 | % | 9,016 | 3 | 0.16 | % | 19,522 | 7 | 0.15 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale securities | 9,972 | 37 | 1.47 | % | 8,041 | 20 | 0.96 | % | 8,869 | 25 | 1.16 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Brokerage client receivables | 2,555 | 24 | 3.87 | % | 2,363 | 19 | 3.33 | % | 2,558 | 21 | 3.29 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Bank loans, net of unearned income and deferred expenses: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans held for investment: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial (“C&I”) loans | 9,606 | 76 | 3.14 | % | 7,936 | 50 | 2.51 | % | 8,783 | 54 | 2.49 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate (“CRE”) loans | 4,338 | 36 | 3.30 | % | 2,748 | 18 | 2.59 | % | 3,150 | 20 | 2.56 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Real estate investment trust (“REIT”) loans | 1,379 | 11 | 3.20 | % | 1,327 | 9 | 2.53 | % | 1,324 | 9 | 2.48 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Tax-exempt loans (20) |
1,329 | 8 | 3.16 | % | 1,294 | 9 | 3.33 | % | 1,289 | 9 | 3.18 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage loans | 6,334 | 44 | 2.77 | % | 5,126 | 34 | 2.70 | % | 5,770 | 38 | 2.69 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Securities-based loans and other | 9,854 | 78 | 3.09 | % | 5,208 | 29 | 2.22 | % | 6,753 | 39 | 2.31 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Loans held for sale | 222 | 2 | 3.08 | % | 142 | 1 | 2.92 | % | 268 | 2 | 2.94 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total bank loans, net | 33,062 | 255 | 3.08 | % | 23,781 | 150 | 2.54 | % | 27,337 | 171 | 2.53 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
All other interest-earning assets | 2,617 | 20 | 3.19 | % | 2,288 | 10 | 1.51 | % | 2,192 | 15 | 2.64 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total interest-earning assets | $ | 71,091 | $ | 374 | 2.11 | % | $ | 51,133 | $ | 205 | 1.60 | % | $ | 66,397 | $ | 242 | 1.48 | % | ||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Bank deposits: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Savings and money market accounts | $ | 36,875 | $ | 11 | 0.12 | % | $ | 28,744 | $ | — | 0.01 | % | $ | 32,886 | $ | 1 | 0.01 | % | ||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing checking accounts | 2,126 | 6 | 1.15 | % | 164 | 1 | 1.83 | % | 211 | 1 | 1.10 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Certificates of deposit | 842 | 3 | 1.58 | % | 883 | 4 | 1.91 | % | 733 | 3 | 1.83 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total bank deposits | 39,843 | 20 | 0.21 | % | 29,791 | 5 | 0.08 | % | 33,830 | 5 | 0.06 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Brokerage client payables | 16,892 | 3 | 0.08 | % | 10,486 | 1 | 0.03 | % | 21,405 | — | 0.01 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other borrowings | 1,045 | 6 | 2.06 | % | 860 | 4 | 2.19 | % | 856 | 4 | 2.15 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Senior notes payable | 2,037 | 23 | 4.44 | % | 2,211 | 25 | 4.49 | % | 2,037 | 23 | 4.44 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
All other interest-bearing liabilities | 1,025 | 8 | 2.39 | % | 602 | 5 | 1.12 | % | 707 | 6 | 1.93 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total interest-bearing liabilities | $ | 60,842 | $ | 60 | 0.40 | % | $ | 43,950 | $ | 40 | 0.34 | % | $ | 58,835 | $ | 38 | 0.26 | % | ||||||||||||||||||||||||||||||||||||||||||||
Net interest income | $ | 314 | $ | 165 | $ | 204 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RAYMOND JAMES FINANCIAL, INC. | Consolidated Net Interest | ||||
Fiscal Third Quarter of 2022 |
(Unaudited) |
Consolidated Net Interest | |||||||||||||||||||||||||||||||||||||||||
Nine months ended | |||||||||||||||||||||||||||||||||||||||||
June 30, 2022 | June 30, 2021 | ||||||||||||||||||||||||||||||||||||||||
$ in millions | Average balance |
Interest | Annualized average rate |
Average balance |
Interest | Annualized average rate |
|||||||||||||||||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 5,819 | $ | 16 | 0.37 | % | $ | 5,548 | $ | 9 | 0.22 | % | |||||||||||||||||||||||||||||
Assets segregated for regulatory purposes and restricted cash | 15,879 | 39 | 0.32 | % | 8,307 | 11 | 0.18 | % | |||||||||||||||||||||||||||||||||
Available-for-sale securities | 9,116 | 84 | 1.23 | % | 7,837 | 64 | 1.08 | % | |||||||||||||||||||||||||||||||||
Brokerage client receivables | 2,533 | 66 | 3.50 | % | 2,222 | 56 | 3.38 | % | |||||||||||||||||||||||||||||||||
Bank loans, net of unearned income and deferred expenses: | |||||||||||||||||||||||||||||||||||||||||
Loans held for investment: | |||||||||||||||||||||||||||||||||||||||||
C&I loans | 8,989 | 185 | 2.72 | % | 7,670 | 149 | 2.57 | % | |||||||||||||||||||||||||||||||||
CRE loans | 3,476 | 76 | 2.90 | % | 2,665 | 52 | 2.57 | % | |||||||||||||||||||||||||||||||||
REIT loans | 1,278 | 27 | 2.76 | % | 1,290 | 25 | 2.49 | % | |||||||||||||||||||||||||||||||||
Tax-exempt loans (20) |
1,305 | 25 | 3.18 | % | 1,253 | 25 | 3.34 | % | |||||||||||||||||||||||||||||||||
Residential mortgage loans | 5,850 | 119 | 2.72 | % | 5,044 | 103 | 2.73 | % | |||||||||||||||||||||||||||||||||
Securities-based loans and other | 7,630 | 152 | 2.62 | % | 4,709 | 80 | 2.24 | % | |||||||||||||||||||||||||||||||||
Loans held for sale | 243 | 6 | 2.98 | % | 153 | 3 | 2.54 | % | |||||||||||||||||||||||||||||||||
Total bank loans, net | 28,771 | 590 | 2.74 | % | 22,784 | 437 | 2.57 | % | |||||||||||||||||||||||||||||||||
All other interest-earning assets | 2,472 | 46 | 2.52 | % | 2,264 | 31 | 1.79 | % | |||||||||||||||||||||||||||||||||
Total interest-earning assets | $ | 64,590 | $ | 841 | 1.74 | % | $ | 48,962 | $ | 608 | 1.66 | % | |||||||||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||||||||||||||||||||
Bank deposits: | |||||||||||||||||||||||||||||||||||||||||
Savings and money market accounts | $ | 33,807 | $ | 13 | 0.05 | % | $ | 27,573 | $ | 2 | 0.01 | % | |||||||||||||||||||||||||||||
Interest-bearing checking accounts | 833 | 8 | 1.21 | % | 159 | 2 | 1.88 | % | |||||||||||||||||||||||||||||||||
Certificates of deposit | 806 | 10 | 1.76 | % | 911 | 13 | 1.90 | % | |||||||||||||||||||||||||||||||||
Total bank deposits | 35,446 | 31 | 0.12 | % | 28,643 | 17 | 0.08 | % | |||||||||||||||||||||||||||||||||
Brokerage client payables | 16,741 | 4 | 0.03 | % | 9,765 | 3 | 0.03 | % | |||||||||||||||||||||||||||||||||
Other borrowings | 919 | 15 | 2.13 | % | 863 | 14 | 2.20 | % | |||||||||||||||||||||||||||||||||
Senior notes payable | 2,037 | 69 | 4.44 | % | 2,115 | 73 | 4.62 | % | |||||||||||||||||||||||||||||||||
All other interest-bearing liabilities | 787 | 16 | 2.08 | % | 591 | 8 | 1.05 | % | |||||||||||||||||||||||||||||||||
Total interest-bearing liabilities | $ | 55,930 | $ | 135 | 0.32 | % | $ | 41,977 | $ | 115 | 0.36 | % | |||||||||||||||||||||||||||||
Net interest income | $ | 706 | $ | 493 | |||||||||||||||||||||||||||||||||||||
RAYMOND JAMES FINANCIAL, INC. | Segment Results | ||||
Fiscal Third Quarter of 2022 |
(Unaudited) |
Three months ended | % change from | |||||||||||||||||||||||||||||||
$ in millions | June 30, 2022 |
June 30, 2021 |
March 31, 2022 |
June 30, 2021 |
March 31, 2022 |
|||||||||||||||||||||||||||
Net revenues: | ||||||||||||||||||||||||||||||||
Private Client Group | $ | 1,958 | $ | 1,696 | $ | 1,922 | 15% | 2% | ||||||||||||||||||||||||
Capital Markets | 383 | 446 | 413 | (14)% | (7)% | |||||||||||||||||||||||||||
Asset Management (4) |
228 | 225 | 234 | 1% | (3)% | |||||||||||||||||||||||||||
Bank (4) |
276 | 169 | 197 | 63% | 40% | |||||||||||||||||||||||||||
Other (21) |
(21) | 2 | (18) | NM | (17)% | |||||||||||||||||||||||||||
Intersegment eliminations | (106) | (67) | (75) | (58)% | (41)% | |||||||||||||||||||||||||||
Total net revenues |
$ | 2,718 | $ | 2,471 | $ | 2,673 | 10% | 2% | ||||||||||||||||||||||||
Pre-tax income/(loss): |
||||||||||||||||||||||||||||||||
Private Client Group | $ | 251 | $ | 195 | $ | 213 | 29% | 18% | ||||||||||||||||||||||||
Capital Markets | 61 | 115 | 87 | (47)% | (30)% | |||||||||||||||||||||||||||
Asset Management (4) |
93 | 105 | 103 | (11)% | (10)% | |||||||||||||||||||||||||||
Bank (4) |
74 | 104 | 83 | (29)% | (11)% | |||||||||||||||||||||||||||
Other (21) |
(64) | (134) | (53) | 52% | (21)% | |||||||||||||||||||||||||||
Pre-tax income |
$ | 415 | $ | 385 | $ | 433 | 8% | (4)% |
Nine months ended | ||||||||||||||||||||
$ in millions | June 30, 2022 |
June 30, 2021 |
% change | |||||||||||||||||
Net revenues: | ||||||||||||||||||||
Private Client Group | $ | 5,719 | $ | 4,810 | 19% | |||||||||||||||
Capital Markets | 1,410 | 1,331 | 6% | |||||||||||||||||
Asset Management (4) |
698 | 629 | 11% | |||||||||||||||||
Bank (4) |
656 | 496 | 32% | |||||||||||||||||
Other (21) |
(54) | (6) | (800)% | |||||||||||||||||
Intersegment eliminations | (257) | (195) | (32)% | |||||||||||||||||
Total net revenues | $ | 8,172 | $ | 7,065 | 16% | |||||||||||||||
Pre-tax income/(loss): | ||||||||||||||||||||
Private Client Group | $ | 659 | $ | 527 | 25% | |||||||||||||||
Capital Markets | 349 | 349 | —% | |||||||||||||||||
Asset Management (4) |
303 | 275 | 10% | |||||||||||||||||
Bank (4) |
259 | 286 | (9)% | |||||||||||||||||
Other (21) |
(164) | (206) | 20% | |||||||||||||||||
Pre-tax income | $ | 1,406 | $ | 1,231 | 14% |
RAYMOND JAMES FINANCIAL, INC. | Segment Results | ||||
Fiscal Third Quarter of 2022 |
(Unaudited) |
Private Client Group | ||||||||||||||||||||||||||||||||
Three months ended | % change from | |||||||||||||||||||||||||||||||
$ in millions | June 30, 2022 |
June 30, 2021 |
March 31, 2022 |
June 30, 2021 |
March 31, 2022 |
|||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
Asset management and related administrative fees | $ | 1,214 | $ | 1,050 | $ | 1,245 | 16% | (2)% | ||||||||||||||||||||||||
Brokerage revenues: | ||||||||||||||||||||||||||||||||
Mutual and other fund products | 149 | 167 | 166 | (11)% | (10)% | |||||||||||||||||||||||||||
Insurance and annuity products | 109 | 113 | 110 | (4)% | (1)% | |||||||||||||||||||||||||||
Equities, ETFs and fixed income products | 115 | 110 | 121 | 5% | (5)% | |||||||||||||||||||||||||||
Total brokerage revenues | 373 | 390 | 397 | (4)% | (6)% | |||||||||||||||||||||||||||
Account and service fees: | ||||||||||||||||||||||||||||||||
Mutual fund and annuity service fees | 102 | 105 | 109 | (3)% | (6)% | |||||||||||||||||||||||||||
RJBDP fees: (18) |
||||||||||||||||||||||||||||||||
Bank segment (18) |
79 | 47 | 49 | 68% | 61% | |||||||||||||||||||||||||||
Third-party banks |
56 | 18 | 20 | 211% | 180% | |||||||||||||||||||||||||||
Client account and other fees | 59 | 39 | 53 | 51% | 11% | |||||||||||||||||||||||||||
Total account and service fees | 296 | 209 | 231 | 42% | 28% | |||||||||||||||||||||||||||
Investment banking | 6 | 11 | 9 | (45)% | (33)% | |||||||||||||||||||||||||||
Interest income | 68 | 31 | 37 | 119% | 84% | |||||||||||||||||||||||||||
All other | 11 | 7 | 6 | 57% | 83% | |||||||||||||||||||||||||||
Total revenues | 1,968 | 1,698 | 1,925 | 16% | 2% | |||||||||||||||||||||||||||
Interest expense | (10) | (2) | (3) | 400% | 233% | |||||||||||||||||||||||||||
Net revenues | 1,958 | 1,696 | 1,922 | 15% | 2% | |||||||||||||||||||||||||||
Non-interest expenses: | ||||||||||||||||||||||||||||||||
Financial advisor compensation and benefits | 1,187 | 1,082 | 1,231 | 10% | (4)% | |||||||||||||||||||||||||||
Administrative compensation and benefits | 306 | 251 | 289 | 22% | 6% | |||||||||||||||||||||||||||
Total compensation, commissions and benefits | 1,493 | 1,333 | 1,520 | 12% | (2)% | |||||||||||||||||||||||||||
Non-compensation expenses | 214 | 168 | 189 | 27% | 13% | |||||||||||||||||||||||||||
Total non-interest expenses | 1,707 | 1,501 | 1,709 | 14% | —% | |||||||||||||||||||||||||||
Pre-tax income | $ | 251 | $ | 195 | $ | 213 | 29% | 18% |
RAYMOND JAMES FINANCIAL, INC. | Segment Results | ||||
Fiscal Third Quarter of 2022 |
(Unaudited) |
Private Client Group | ||||||||||||||||||||
Nine months ended | ||||||||||||||||||||
$ in millions | June 30, 2022 |
June 30, 2021 |
% change | |||||||||||||||||
Revenues: | ||||||||||||||||||||
Asset management and related administrative fees | $ | 3,621 | $ | 2,914 | 24% | |||||||||||||||
Brokerage revenues: | ||||||||||||||||||||
Mutual and other fund products | 486 | 498 | (2)% | |||||||||||||||||
Insurance and annuity products | 330 | 320 | 3% | |||||||||||||||||
Equities, ETFs and fixed income products | 351 | 338 | 4% | |||||||||||||||||
Total brokerage revenues | 1,167 | 1,156 | 1% | |||||||||||||||||
Account and service fees: | ||||||||||||||||||||
Mutual fund and annuity service fees | 325 | 298 | 9% | |||||||||||||||||
RJBDP fees: (18) |
||||||||||||||||||||
Bank segment (18) |
178 | 134 | 33% | |||||||||||||||||
Third-party banks | 93 | 58 | 60% | |||||||||||||||||
Client account and other fees | 161 | 113 | 42% | |||||||||||||||||
Total account and service fees | 757 | 603 | 26% | |||||||||||||||||
Investment banking | 28 | 33 | (15)% | |||||||||||||||||
Interest income | 138 | 91 | 52% | |||||||||||||||||
All other | 24 | 20 | 20% | |||||||||||||||||
Total revenues | 5,735 | 4,817 | 19% | |||||||||||||||||
Interest expense | (16) | (7) | 129% | |||||||||||||||||
Net revenues | 5,719 | 4,810 | 19% | |||||||||||||||||
Non-interest expenses: | ||||||||||||||||||||
Financial advisor compensation and benefits | 3,605 | 3,053 | 18% | |||||||||||||||||
Administrative compensation and benefits | 878 | 760 | 16% | |||||||||||||||||
Total compensation, commissions and benefits | 4,483 | 3,813 | 18% | |||||||||||||||||
Non-compensation expenses | 577 | 470 | 23% | |||||||||||||||||
Total non-interest expenses | 5,060 | 4,283 | 18% | |||||||||||||||||
Pre-tax income | $ | 659 | $ | 527 | 25% |
RAYMOND JAMES FINANCIAL, INC. | Segment Results | ||||
Fiscal Third Quarter of 2022 |
(Unaudited) |
Capital Markets | ||||||||||||||||||||||||||||||||
Three months ended | % change from | |||||||||||||||||||||||||||||||
$ in millions | June 30, 2022 |
June 30, 2021 |
March 31, 2022 |
June 30, 2021 |
March 31, 2022 |
|||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
Brokerage revenues: | ||||||||||||||||||||||||||||||||
Fixed income | $ | 107 | $ | 124 | $ | 125 | (14)% | (14)% | ||||||||||||||||||||||||
Equity | 32 | 36 | 41 | (11)% | (22)% | |||||||||||||||||||||||||||
Total brokerage revenues | 139 | 160 | 166 | (13)% | (16)% | |||||||||||||||||||||||||||
Investment banking: | ||||||||||||||||||||||||||||||||
Merger & acquisition and advisory | 147 | 153 | 139 | (4)% | 6% | |||||||||||||||||||||||||||
Equity underwriting | 36 | 69 | 52 | (48)% | (31)% | |||||||||||||||||||||||||||
Debt underwriting | 34 | 43 | 35 | (21)% | (3)% | |||||||||||||||||||||||||||
Total investment banking | 217 | 265 | 226 | (18)% | (4)% | |||||||||||||||||||||||||||
Interest income | 6 | 4 | 5 | 50% | 20% | |||||||||||||||||||||||||||
Tax credit fund revenues | 21 | 17 | 15 | 24% | 40% | |||||||||||||||||||||||||||
All other | 3 | 3 | 4 | —% | (25)% | |||||||||||||||||||||||||||
Total revenues | 386 | 449 | 416 | (14)% | (7)% | |||||||||||||||||||||||||||
Interest expense | (3) | (3) | (3) | —% | —% | |||||||||||||||||||||||||||
Net revenues | 383 | 446 | 413 | (14)% | (7)% | |||||||||||||||||||||||||||
Non-interest expenses: | ||||||||||||||||||||||||||||||||
Compensation, commissions and benefits |
243 | 256 | 253 | (5)% | (4)% | |||||||||||||||||||||||||||
Non-compensation expenses | 79 | 75 | 73 | 5% | 8% | |||||||||||||||||||||||||||
Total non-interest expenses | 322 | 331 | 326 | (3)% | (1)% | |||||||||||||||||||||||||||
Pre-tax income |
$ | 61 | $ | 115 | $ | 87 | (47)% | (30)% |
Nine months ended | ||||||||||||||||||||
$ in millions | June 30, 2022 |
June 30, 2021 |
% change | |||||||||||||||||
Revenues: | ||||||||||||||||||||
Brokerage revenues: | ||||||||||||||||||||
Fixed income | $ | 352 | $ | 397 | (11)% | |||||||||||||||
Equity | 112 | 112 | —% | |||||||||||||||||
Total brokerage revenues | 464 | 509 | (9)% | |||||||||||||||||
Investment banking: | ||||||||||||||||||||
Merger & acquisition and advisory | 557 | 424 | 31% | |||||||||||||||||
Equity underwriting | 185 | 196 | (6)% | |||||||||||||||||
Debt underwriting | 113 | 126 | (10)% | |||||||||||||||||
Total investment banking | 855 | 746 | 15% | |||||||||||||||||
Interest income | 16 | 12 | 33% | |||||||||||||||||
Tax credit fund revenues | 71 | 57 | 25% | |||||||||||||||||
All other | 12 | 14 | (14)% | |||||||||||||||||
Total revenues | 1,418 | 1,338 | 6% | |||||||||||||||||
Interest expense | (8) | (7) | 14% | |||||||||||||||||
Net revenues | 1,410 | 1,331 | 6% | |||||||||||||||||
Non-interest expenses: | ||||||||||||||||||||
Compensation, commissions and benefits | 827 | 767 | 8% | |||||||||||||||||
Non-compensation expenses | 234 | 215 | 9% | |||||||||||||||||
Total non-interest expenses | 1,061 | 982 | 8% | |||||||||||||||||
Pre-tax income | $ | 349 | $ | 349 | —% |
RAYMOND JAMES FINANCIAL, INC. | Segment Results | ||||
Fiscal Third Quarter of 2022 |
(Unaudited) |
Asset Management (4) | ||||||||||||||||||||||||||||||||
Three months ended | % change from | |||||||||||||||||||||||||||||||
$ in millions | June 30, 2022 |
June 30, 2021 |
March 31, 2022 |
June 30, 2021 |
March 31, 2022 |
|||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
Asset management and related administrative fees: |
||||||||||||||||||||||||||||||||
Managed programs | $ | 145 | $ | 148 | $ | 149 | (2)% | (3)% | ||||||||||||||||||||||||
Administration and other | 75 | 70 | 77 | 7% | (3)% | |||||||||||||||||||||||||||
Total asset management and related administrative fees |
220 | 218 | 226 | 1% | (3)% | |||||||||||||||||||||||||||
Account and service fees | 5 | 4 | 6 | 25% | (17)% | |||||||||||||||||||||||||||
All other | 3 | 3 | 2 | —% | 50% | |||||||||||||||||||||||||||
Net revenues | 228 | 225 | 234 | 1% | (3)% | |||||||||||||||||||||||||||
Non-interest expenses: | ||||||||||||||||||||||||||||||||
Compensation, commissions and benefits |
49 | 43 | 47 | 14% | 4% | |||||||||||||||||||||||||||
Non-compensation expenses | 86 | 77 | 84 | 12% | 2% | |||||||||||||||||||||||||||
Total non-interest expenses | 135 | 120 | 131 | 13% | 3% | |||||||||||||||||||||||||||
Pre-tax income |
$ | 93 | $ | 105 | $ | 103 | (11)% | (10)% |
Nine months ended | ||||||||||||||||||||
$ in millions | June 30, 2022 |
June 30, 2021 |
% change | |||||||||||||||||
Revenues: | ||||||||||||||||||||
Asset management and related administrative fees: | ||||||||||||||||||||
Managed programs | $ | 445 | $ | 414 | 7% | |||||||||||||||
Administration and other | 228 | 193 | 18% | |||||||||||||||||
Total asset management and related administrative fees | 673 | 607 | 11% | |||||||||||||||||
Account and service fees | 17 | 13 | 31% | |||||||||||||||||
All other | 8 | 9 | (11)% | |||||||||||||||||
Net revenues | 698 | 629 | 11% | |||||||||||||||||
Non-interest expenses: | ||||||||||||||||||||
Compensation, commissions and benefits | 142 | 138 | 3% | |||||||||||||||||
Non-compensation expenses | 253 | 216 | 17% | |||||||||||||||||
Total non-interest expenses | 395 | 354 | 12% | |||||||||||||||||
Pre-tax income | $ | 303 | $ | 275 | 10% |
RAYMOND JAMES FINANCIAL, INC. | Segment Results | |||||||
Fiscal Third Quarter of 2022 |
(Unaudited) |
Bank (4) | ||||||||||||||||||||||||||||||||
Three months ended | % change from | |||||||||||||||||||||||||||||||
$ in millions | June 30, 2022 |
June 30, 2021 |
March 31, 2022 |
June 30, 2021 |
March 31, 2022 |
|||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
Interest income | $ | 296 | $ | 172 | $ | 199 | 72% | 49% | ||||||||||||||||||||||||
Interest expense | (26) | (11) | (10) | 136% | 160% | |||||||||||||||||||||||||||
Net interest income | 270 | 161 | 189 | 68% | 43% | |||||||||||||||||||||||||||
All other | 6 | 8 | 8 | (25)% | (25)% | |||||||||||||||||||||||||||
Net revenues | 276 | 169 | 197 | 63% | 40% | |||||||||||||||||||||||||||
Non-interest expenses: | ||||||||||||||||||||||||||||||||
Compensation and benefits | 21 | 13 | 14 | 62% | 50% | |||||||||||||||||||||||||||
Non-compensation expenses: | ||||||||||||||||||||||||||||||||
Bank loan provision/(benefit) for credit losses | 56 | (19) | 21 | NM | 167% | |||||||||||||||||||||||||||
RJBDP fees to Private Client Group (18) |
79 | 47 | 49 | 68% | 61% | |||||||||||||||||||||||||||
All other | 46 | 24 | 30 | 92% | 53% | |||||||||||||||||||||||||||
Total non-compensation expenses | 181 | 52 | 100 | 248% | 81% | |||||||||||||||||||||||||||
Total non-interest expenses | 202 | 65 | 114 | 211% | 77% | |||||||||||||||||||||||||||
Pre-tax income | $ | 74 | $ | 104 | $ | 83 | (29)% | (11)% |
Nine months ended | ||||||||||||||||||||
$ in millions | June 30, 2022 |
June 30, 2021 |
% change | |||||||||||||||||
Revenues: | ||||||||||||||||||||
Interest income | $ | 682 | $ | 505 | 35% | |||||||||||||||
Interest expense | (46) | (32) | 44% | |||||||||||||||||
Net interest income | 636 | 473 | 34% | |||||||||||||||||
All other | 20 | 23 | (13)% | |||||||||||||||||
Net revenues | 656 | 496 | 32% | |||||||||||||||||
Non-interest expenses: | ||||||||||||||||||||
Compensation and benefits | 48 | 38 | 26% | |||||||||||||||||
Non-compensation expenses: | ||||||||||||||||||||
Bank loan provision/(benefit) for credit losses | 66 | (37) | NM | |||||||||||||||||
RJBDP fees to Private Client Group (18) |
178 | 134 | 33% | |||||||||||||||||
All other | 105 | 75 | 40% | |||||||||||||||||
Total non-compensation expenses | 349 | 172 | 103% | |||||||||||||||||
Total non-interest expenses | 397 | 210 | 89% | |||||||||||||||||
Pre-tax income | $ | 259 | $ | 286 | (9)% |
RAYMOND JAMES FINANCIAL, INC. | Segment Results | ||||
Fiscal Third Quarter of 2022 |
(Unaudited) |
Other (21) | ||||||||||||||||||||||||||||||||
Three months ended | % change from | |||||||||||||||||||||||||||||||
$ in millions | June 30, 2022 |
June 30, 2021 |
March 31, 2022 |
June 30, 2021 |
March 31, 2022 |
|||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
Interest income | $ | 6 | $ | — | $ | 3 | NM | 100% | ||||||||||||||||||||||||
Net gains/(losses) on private equity investments (9) |
(3) | 24 | (2) | NM | (50)% | |||||||||||||||||||||||||||
All other | — | 4 | 5 | (100)% | (100)% | |||||||||||||||||||||||||||
Total revenues | 3 | 28 | 6 | (89)% | (50)% | |||||||||||||||||||||||||||
Interest expense | (24) | (26) | (24) | (8)% | —% | |||||||||||||||||||||||||||
Net revenues | (21) | 2 | (18) | NM | (17)% | |||||||||||||||||||||||||||
Non-interest expenses: | ||||||||||||||||||||||||||||||||
Compensation and all other (9) |
43 | 38 | 35 | 13% | 23% | |||||||||||||||||||||||||||
Losses on extinguishment of debt (13) |
— | 98 | — | (100)% | —% | |||||||||||||||||||||||||||
Total non-interest expenses | 43 | 136 | 35 | (68)% | 23% | |||||||||||||||||||||||||||
Pre-tax loss |
$ | (64) | $ | (134) | $ | (53) | 52% | (21)% |
Nine months ended | ||||||||||||||||||||
$ in millions | June 30, 2022 |
June 30, 2021 |
% change | |||||||||||||||||
Revenues: | ||||||||||||||||||||
Interest income | $ | 10 | $ | 6 | 67% | |||||||||||||||
Net gains on private equity investments (9) |
— | 56 | (100)% | |||||||||||||||||
All other | 7 | 7 | —% | |||||||||||||||||
Total revenues | 17 | 69 | (75)% | |||||||||||||||||
Interest expense | (71) | (75) | (5)% | |||||||||||||||||
Net revenues | (54) | (6) | (800)% | |||||||||||||||||
Non-interest expenses: | ||||||||||||||||||||
Compensation and all other (9) |
110 | 102 | 8% | |||||||||||||||||
Losses on extinguishment of debt (13) |
— | 98 | (100)% | |||||||||||||||||
Total non-interest expenses | 110 | 200 | (45)% | |||||||||||||||||
Pre-tax loss |
$ | (164) | $ | (206) | 20% |
RAYMOND JAMES FINANCIAL, INC. | Bank Segment Selected Key Metrics | ||||
Fiscal Third Quarter of 2022 |
(Unaudited) |
As of | % change from | |||||||||||||||||||||||||||||||
$ in millions |
June 30, 2022 |
June 30, 2021 |
March 31, 2022 |
June 30, 2021 |
March 31, 2022 |
|||||||||||||||||||||||||||
Total assets (3) |
$ | 55,562 | $ | 34,363 | $ | 38,167 | 62% | 46% | ||||||||||||||||||||||||
Bank loans, net: (3) |
||||||||||||||||||||||||||||||||
Raymond James Bank | $ | 30,053 | $ | 23,896 | $ | 27,883 | 26% | 8% | ||||||||||||||||||||||||
TriState Capital Bank | 11,790 | — | — | NM | NM | |||||||||||||||||||||||||||
Total bank loans, net (3) |
$ | 41,843 | $ | 23,896 | $ | 27,883 | 75% | 50% | ||||||||||||||||||||||||
Bank loan allowance for credit losses | $ | 377 | $ | 322 | $ | 328 | 17% | 15% | ||||||||||||||||||||||||
Bank loan allowance for credit losses as a % of loans held for investment | 0.90 | % | 1.34 | % | 1.17 | % | ||||||||||||||||||||||||||
Total nonperforming assets (3) |
$ | 92 | $ | 43 | $ | 104 | 114% | (12)% | ||||||||||||||||||||||||
Nonperforming assets as a % of total assets | 0.17 | % | 0.13 | % | 0.27 | % | ||||||||||||||||||||||||||
Total criticized loans (3) |
$ | 687 | $ | 980 | $ | 735 | (30)% | (7)% | ||||||||||||||||||||||||
Criticized loans as a % of loans held for investment | 1.63 | % | 4.07 | % | 2.63 | % | ||||||||||||||||||||||||||
Three months ended | % change from | Nine months ended | ||||||||||||||||||||||||||||||||||||||||||||||||
$ in millions | June 30, 2022 |
June 30, 2021 |
March 31, 2022 |
June 30, 2021 |
March 31, 2022 |
June 30, 2022 |
June 30, 2021 |
% change | ||||||||||||||||||||||||||||||||||||||||||
Bank loan provision/(benefit) for credit losses (12) |
$ | 56 | $ | (19) | $ | 21 | NM | 167% | $ | 66 | $ | (37) | NM | |||||||||||||||||||||||||||||||||||||
Net charge-offs | $ | 10 | $ | 4 | $ | 1 | NM | NM | $ | 12 | $ | 6 | 100% | |||||||||||||||||||||||||||||||||||||
Net interest margin (net yield on interest-earning assets) | 2.41 | % | 1.92 | % | 2.01 | % | 2.14 | % | 1.96 | % |
RAYMOND JAMES FINANCIAL, INC. | Non-GAAP Financial Measures | ||||
Fiscal Third Quarter of 2022 |
(Unaudited) |
Three months ended | Nine months ended | ||||||||||||||||||||||||||||||||||
$ in millions | June 30, 2022 |
June 30, 2021 |
March 31, 2022 |
June 30, 2022 |
June 30, 2021 |
||||||||||||||||||||||||||||||
Net income available to common shareholders | $ | 299 | $ | 307 | $ | 323 | $ | 1,068 | $ | 974 | |||||||||||||||||||||||||
Non-GAAP adjustments: |
|||||||||||||||||||||||||||||||||||
Expenses directly related to acquisitions included in the following financial statement line items: | |||||||||||||||||||||||||||||||||||
Compensation, commissions and benefits: | |||||||||||||||||||||||||||||||||||
Acquisition-related retention (11) |
16 | 13 | 14 | 41 | 35 | ||||||||||||||||||||||||||||||
Other acquisition-related compensation (10) |
2 | — | — | 2 | — | ||||||||||||||||||||||||||||||
Total “Compensation, commissions and benefits” expense | 18 | 13 | 14 | 43 | 35 | ||||||||||||||||||||||||||||||
Professional fees (10) |
4 | 4 | 5 | 11 | 5 | ||||||||||||||||||||||||||||||
Bank loan provision/(benefit) for credit losses — Initial provision for credit losses on acquired loans (12) |
26 | — | — | 26 | — | ||||||||||||||||||||||||||||||
Other: | |||||||||||||||||||||||||||||||||||
Amortization of identifiable intangible assets (22) |
8 | 7 | 6 | 22 | 14 | ||||||||||||||||||||||||||||||
Initial provision for credit losses on acquired lending commitments (12) |
5 | — | — | 5 | — | ||||||||||||||||||||||||||||||
All other acquisition-related expenses (10) |
4 | — | 6 | 10 | 1 | ||||||||||||||||||||||||||||||
Total “Other” expense | 17 | 7 | 12 | 37 | 15 | ||||||||||||||||||||||||||||||
Total expenses related to acquisitions | 65 | 24 | 31 | 117 | 55 | ||||||||||||||||||||||||||||||
Losses on extinguishment of debt (13) |
— | 98 | — | — | 98 | ||||||||||||||||||||||||||||||
Pre-tax impact of non-GAAP adjustments | 65 | 122 | 31 | 117 | 153 | ||||||||||||||||||||||||||||||
Tax effect of non-GAAP adjustments |
(16) | (30) | (8) | (29) | (37) | ||||||||||||||||||||||||||||||
Total non-GAAP adjustments, net of tax |
49 | 92 | 23 | 88 | 116 | ||||||||||||||||||||||||||||||
Adjusted net income available to common shareholders (2) |
$ | 348 | $ | 399 | $ | 346 | $ | 1,156 | $ | 1,090 | |||||||||||||||||||||||||
Pre-tax income |
$ | 415 | $ | 385 | $ | 433 | $ | 1,406 | $ | 1,231 | |||||||||||||||||||||||||
Pre-tax impact of non-GAAP adjustments (as detailed above) |
65 | 122 | 31 | 117 | 153 | ||||||||||||||||||||||||||||||
Adjusted pre-tax income (2) |
$ | 480 | $ | 507 | $ | 464 | $ | 1,523 | $ | 1,384 | |||||||||||||||||||||||||
Compensation, commissions and benefits expense | $ | 1,834 | $ | 1,661 | $ | 1,852 | $ | 5,570 | $ | 4,809 | |||||||||||||||||||||||||
Less: Total compensation-related acquisition expenses (as detailed above) | 18 | 13 | 14 | 43 | 35 | ||||||||||||||||||||||||||||||
Adjusted “Compensation, commissions and benefits” expense (2) |
$ | 1,816 | $ | 1,648 | $ | 1,838 | $ | 5,527 | $ | 4,774 | |||||||||||||||||||||||||
RAYMOND JAMES FINANCIAL, INC. | Non-GAAP Financial Measures | ||||
Fiscal Third Quarter of 2022 |
(Unaudited) |
Reconciliation of non-GAAP financial measures to GAAP financial measures | |||||||||||||||||||||||||||||||||||
(Continued from previous page) | |||||||||||||||||||||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||||||||||||||||||||
June 30, 2022 |
June 30, 2021 |
March 31, 2022 |
June 30, 2022 |
June 30, 2021 |
|||||||||||||||||||||||||||||||
Pre-tax margin (16) |
15.3 | % | 15.6 | % | 16.2 | % | 17.2 | % | 17.4 | % | |||||||||||||||||||||||||
Impact of non-GAAP adjustments on pre-tax margin: |
|||||||||||||||||||||||||||||||||||
Compensation, commissions and benefits: | |||||||||||||||||||||||||||||||||||
Acquisition-related retention (11) |
0.6 | % | 0.5 | % | 0.5 | % | 0.5 | % | 0.5 | % | |||||||||||||||||||||||||
Other acquisition-related compensation (10) |
0.1 | % | — | % | — | % | 0.1 | % | — | % | |||||||||||||||||||||||||
Total “Compensation, commissions and benefits” expense | 0.7 | % | 0.5 | % | 0.5 | % | 0.6 | % | 0.5 | % | |||||||||||||||||||||||||
Professional fees (10) |
0.1 | % | 0.2 | % | 0.2 | % | 0.1 | % | 0.1 | % | |||||||||||||||||||||||||
Bank loan provision/(benefit) for credit losses — Initial provision for credit losses on acquired loans (12) |
1.0 | % | — | % | — | % | 0.3 | % | — | % | |||||||||||||||||||||||||
Other: | |||||||||||||||||||||||||||||||||||
Amortization of identifiable intangible assets (22) |
0.3 | % | 0.3 | % | 0.2 | % | 0.2 | % | 0.2 | % | |||||||||||||||||||||||||
Initial provision for credit losses on acquired lending commitments (12) |
0.2 | % | — | % | — | % | 0.1 | % | — | % | |||||||||||||||||||||||||
All other acquisition-related expenses (10) |
0.1 | % | — | % | 0.3 | % | 0.1 | % | — | % | |||||||||||||||||||||||||
Total “Other” expense | 0.6 | % | 0.3 | % | 0.5 | % | 0.4 | % | 0.2 | % | |||||||||||||||||||||||||
Total expenses related to acquisitions | 2.4 | % | 1.0 | % | 1.2 | % | 1.4 | % | 0.8 | % | |||||||||||||||||||||||||
Losses on extinguishment of debt (13) |
— | % | 3.9 | % | — | % | — | % | 1.4 | % | |||||||||||||||||||||||||
Total non-GAAP adjustments | 2.4 | % | 4.9 | % | 1.2 | % | 1.4 | % | 2.2 | % | |||||||||||||||||||||||||
Adjusted pre-tax margin (2) (16) |
17.7 | % | 20.5 | % | 17.4 | % | 18.6 | % | 19.6 | % | |||||||||||||||||||||||||
Total compensation ratio (17) |
67.5 | % | 67.2 | % | 69.3 | % | 68.2 | % | 68.1 | % | |||||||||||||||||||||||||
Less the impact of non-GAAP adjustments on compensation ratio: |
|||||||||||||||||||||||||||||||||||
Acquisition-related retention (11) |
0.6 | % | 0.5 | % | 0.5 | % | 0.5 | % | 0.5 | % | |||||||||||||||||||||||||
Other acquisition-related compensation (10) |
0.1 | % | — | % | — | % | 0.1 | % | — | % | |||||||||||||||||||||||||
Total “Compensation, commissions and benefits” expenses related to acquisitions | 0.7 | % | 0.5 | % | 0.5 | % | 0.6 | % | 0.5 | % | |||||||||||||||||||||||||
Adjusted total compensation ratio (2) (17) |
66.8 | % | 66.7 | % | 68.8 | % | 67.6 | % | 67.6 | % |
RAYMOND JAMES FINANCIAL, INC. | Non-GAAP Financial Measures | ||||
Fiscal Third Quarter of 2022 |
(Unaudited) |
Reconciliation of non-GAAP financial measures to GAAP financial measures | |||||||||||||||||||||||||||||||||||
(Continued from previous page) | |||||||||||||||||||||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||||||||||||||||||||
Earnings per common share (7) (8) |
June 30, 2022 |
June 30, 2021 |
March 31, 2022 |
June 30, 2022 |
June 30, 2021 |
||||||||||||||||||||||||||||||
Basic | $ | 1.41 | $ | 1.49 | $ | 1.56 | $ | 5.12 | $ | 4.73 | |||||||||||||||||||||||||
Impact of non-GAAP adjustments on basic earnings per common share: |
|||||||||||||||||||||||||||||||||||
Compensation, commissions and benefits: | |||||||||||||||||||||||||||||||||||
Acquisition-related retention (11) |
0.08 | 0.06 | 0.07 | 0.20 | 0.17 | ||||||||||||||||||||||||||||||
Other acquisition-related compensation (10) |
0.01 | — | — | 0.01 | — | ||||||||||||||||||||||||||||||
Total “Compensation, commissions and benefits” expense | 0.09 | 0.06 | 0.07 | 0.21 | 0.17 | ||||||||||||||||||||||||||||||
Professional fees (10) |
0.02 | 0.02 | 0.02 | 0.05 | 0.02 | ||||||||||||||||||||||||||||||
Bank loan provision/(benefit) for credit losses — Initial provision for credit losses on acquired loans (12) |
0.12 | — | — | 0.13 | — | ||||||||||||||||||||||||||||||
Other: | |||||||||||||||||||||||||||||||||||
Amortization of identifiable intangible assets (22) |
0.04 | 0.04 | 0.03 | 0.11 | 0.07 | ||||||||||||||||||||||||||||||
Initial provision for credit losses on acquired lending commitments (12) |
0.02 | — | — | 0.02 | — | ||||||||||||||||||||||||||||||
All other acquisition-related expenses (10) |
0.02 | — | 0.03 | 0.05 | — | ||||||||||||||||||||||||||||||
Total “Other” expense | 0.08 | 0.04 | 0.06 | 0.18 | 0.07 | ||||||||||||||||||||||||||||||
Total expenses related to acquisitions | 0.31 | 0.12 | 0.15 | 0.57 | 0.26 | ||||||||||||||||||||||||||||||
Losses on extinguishment of debt (13) |
— | 0.48 | — | — | 0.48 | ||||||||||||||||||||||||||||||
Tax effect of non-GAAP adjustments |
(0.07) | (0.15) | (0.04) | (0.14) | (0.18) | ||||||||||||||||||||||||||||||
Total non-GAAP adjustments, net of tax | 0.24 | 0.45 | 0.11 | 0.43 | 0.56 | ||||||||||||||||||||||||||||||
Adjusted basic (2) |
$ | 1.65 | $ | 1.94 | $ | 1.67 | $ | 5.55 | $ | 5.29 | |||||||||||||||||||||||||
Diluted | $ | 1.38 | $ | 1.45 | $ | 1.52 | $ | 4.99 | $ | 4.61 | |||||||||||||||||||||||||
Impact of non-GAAP adjustments on diluted earnings per common share: | |||||||||||||||||||||||||||||||||||
Compensation, commissions and benefits: | |||||||||||||||||||||||||||||||||||
Acquisition-related retention (11) |
0.07 | 0.06 | 0.06 | 0.19 | 0.17 | ||||||||||||||||||||||||||||||
Other acquisition-related compensation (10) |
0.01 | — | — | 0.01 | — | ||||||||||||||||||||||||||||||
Total “Compensation, commissions and benefits” expense | 0.08 | 0.06 | 0.06 | 0.20 | 0.17 | ||||||||||||||||||||||||||||||
Professional fees (10) |
0.02 | 0.02 | 0.02 | 0.05 | 0.02 | ||||||||||||||||||||||||||||||
Bank loan provision/(benefit) for credit losses — Initial provision for credit losses on acquired loans (12) |
0.12 | — | — | 0.12 | — | ||||||||||||||||||||||||||||||
Other: | |||||||||||||||||||||||||||||||||||
Amortization of identifiable intangible assets (22) |
0.04 | 0.03 | 0.03 | 0.11 | 0.07 | ||||||||||||||||||||||||||||||
Initial provision for credit losses on acquired lending commitments (12) |
0.02 | — | — | 0.02 | — | ||||||||||||||||||||||||||||||
All other acquisition-related expenses (10) |
0.02 | — | 0.03 | 0.05 | 0.01 | ||||||||||||||||||||||||||||||
Total “Other” expense | 0.08 | 0.03 | 0.06 | 0.18 | 0.08 | ||||||||||||||||||||||||||||||
Total expenses related to acquisitions | 0.30 | 0.11 | 0.14 | 0.55 | 0.27 | ||||||||||||||||||||||||||||||
Losses on extinguishment of debt (13) |
— | 0.46 | — | — | 0.46 | ||||||||||||||||||||||||||||||
Tax effect of non-GAAP adjustments |
(0.07) | (0.14) | (0.04) | (0.13) | (0.18) | ||||||||||||||||||||||||||||||
Total non-GAAP adjustments, net of tax | 0.23 | 0.43 | 0.10 | 0.42 | 0.55 | ||||||||||||||||||||||||||||||
Adjusted diluted (2) |
$ | 1.61 | $ | 1.88 | $ | 1.62 | $ | 5.41 | $ | 5.16 |
RAYMOND JAMES FINANCIAL, INC. | Non-GAAP Financial Measures | ||||
Fiscal Third Quarter of 2022 |
(Unaudited) |
Book value per share | As of | |||||||||||||||||||
$ in millions, except per share amounts | June 30, 2022 |
June 30, 2021 |
March 31, 2022 |
|||||||||||||||||
Total common equity attributable to Raymond James Financial, Inc. | $ | 9,395 | $ | 7,863 | $ | 8,602 | ||||||||||||||
Less non-GAAP adjustments: |
||||||||||||||||||||
Goodwill and identifiable intangible assets, net |
1,810 | 862 | 1,110 | |||||||||||||||||
Deferred tax liabilities related to goodwill and identifiable intangible assets, net | (128) | (56) | (88) | |||||||||||||||||
Tangible common equity attributable to Raymond James Financial, Inc. | $ | 7,713 | $ | 7,057 | $ | 7,580 | ||||||||||||||
Common shares outstanding (7) |
215.5 | 205.4 | 207.9 | |||||||||||||||||
Book value per share (7) (14) |
$ | 43.60 | $ | 38.28 | $ | 41.38 | ||||||||||||||
Tangible book value per share (2) (7) (14) |
$ | 35.79 | $ | 34.36 | $ | 36.46 |
Return on common equity | Three months ended | Nine months ended | |||||||||||||||||||||||||||||||||
$ in millions | June 30, 2022 |
June 30, 2021 |
March 31, 2022 |
June 30, 2022 |
June 30, 2021 |
||||||||||||||||||||||||||||||
Average common equity (23) |
$ | 8,999 | $ | 7,728 | $ | 8,601 | $ | 8,711 | $ | 7,483 | |||||||||||||||||||||||||
Impact of non-GAAP adjustments on average common equity: |
|||||||||||||||||||||||||||||||||||
Compensation, commissions and benefits: | |||||||||||||||||||||||||||||||||||
Acquisition-related retention (11) |
8 | 6 | 7 | 19 | 16 | ||||||||||||||||||||||||||||||
Other acquisition-related compensation (10) |
1 | — | — | 1 | — | ||||||||||||||||||||||||||||||
Total “Compensation, commissions and benefits” expense | 9 | 6 | 7 | 20 | 16 | ||||||||||||||||||||||||||||||
Professional fees (10) |
2 | 2 | 3 | 5 | 2 | ||||||||||||||||||||||||||||||
Bank loan provision/(benefit) for credit losses — Initial provision for credit losses on acquired loans (12) |
13 | — | — | 7 | — | ||||||||||||||||||||||||||||||
Other: | |||||||||||||||||||||||||||||||||||
Amortization of identifiable intangible assets (22) |
4 | 4 | 3 | 11 | 6 | ||||||||||||||||||||||||||||||
Initial provision for credit losses on acquired lending commitments (12) |
3 | — | — | 1 | — | ||||||||||||||||||||||||||||||
All other acquisition-related expenses (10) |
2 | — | 3 | 4 | 1 | ||||||||||||||||||||||||||||||
Total “Other” expense | 9 | 4 | 6 | 16 | 7 | ||||||||||||||||||||||||||||||
Total expenses related to acquisitions | 33 | 12 | 16 | 48 | 25 | ||||||||||||||||||||||||||||||
Losses on extinguishment of debt (13) |
— | 49 | — | — | 25 | ||||||||||||||||||||||||||||||
Tax effect of non-GAAP adjustments |
(8) | (15) | (4) | (12) | (12) | ||||||||||||||||||||||||||||||
Total non-GAAP adjustments, net of tax | 25 | 46 | 12 | 36 | 38 | ||||||||||||||||||||||||||||||
Adjusted average common equity (2) (23) |
$ | 9,024 | $ | 7,774 | $ | 8,613 | $ | 8,747 | $ | 7,521 |
RAYMOND JAMES FINANCIAL, INC. | Non-GAAP Financial Measures | ||||
Fiscal Third Quarter of 2022 |
(Unaudited) |
Reconciliation of non-GAAP financial measures to GAAP financial measures | |||||||||||||||||||||||||||||||||||
(Continued from previous page) | |||||||||||||||||||||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||||||||||||||||||||
$ in millions | June 30, 2022 |
June 30, 2021 |
March 31, 2022 |
June 30, 2022 |
June 30, 2021 |
||||||||||||||||||||||||||||||
Average common equity (23) |
$ | 8,999 | $ | 7,728 | $ | 8,601 | $ | 8,711 | $ | 7,483 | |||||||||||||||||||||||||
Less: |
|||||||||||||||||||||||||||||||||||
Average goodwill and identifiable intangible assets, net | 1,460 | 865 | 992 | 1,169 | 791 | ||||||||||||||||||||||||||||||
Deferred tax liabilities related to goodwill and identifiable intangible assets, net | (108) | (56) | (77) | (86) | (51) | ||||||||||||||||||||||||||||||
Average tangible common equity (2) (23) |
$ | 7,647 | $ | 6,919 | $ | 7,686 | $ | 7,628 | $ | 6,743 | |||||||||||||||||||||||||
Impact of non-GAAP adjustments on average tangible common equity: | |||||||||||||||||||||||||||||||||||
Compensation, commissions and benefits: | |||||||||||||||||||||||||||||||||||
Acquisition-related retention (11) |
8 | 6 | 7 | 19 | 16 | ||||||||||||||||||||||||||||||
Other acquisition-related compensation (10) |
1 | — | — | 1 | — | ||||||||||||||||||||||||||||||
Total “Compensation, commissions and benefits” expense | 9 | 6 | 7 | 20 | 16 | ||||||||||||||||||||||||||||||
Professional fees (10) |
2 | 2 | 3 | 5 | 2 | ||||||||||||||||||||||||||||||
Bank loan provision/(benefit) for credit losses — Initial provision for credit losses on acquired loans (12) |
13 | — | — | 7 | — | ||||||||||||||||||||||||||||||
Other: | |||||||||||||||||||||||||||||||||||
Amortization of identifiable intangible assets (22) |
4 | 4 | 3 | 11 | 6 | ||||||||||||||||||||||||||||||
Initial provision for credit losses on acquired lending commitments (12) |
3 | — | — | 1 | — | ||||||||||||||||||||||||||||||
All other acquisition-related expenses (10) |
2 | — | 3 | 4 | 1 | ||||||||||||||||||||||||||||||
Total “Other” expense | 9 | 4 | 6 | 16 | 7 | ||||||||||||||||||||||||||||||
Total expenses related to acquisitions | 33 | 12 | 16 | 48 | 25 | ||||||||||||||||||||||||||||||
Losses on extinguishment of debt (13) |
— | 49 | — | — | 25 | ||||||||||||||||||||||||||||||
Tax effect of non-GAAP adjustments |
(8) | (15) | (4) | (12) | (12) | ||||||||||||||||||||||||||||||
Total non-GAAP adjustments, net of tax | 25 | 46 | 12 | 36 | 38 | ||||||||||||||||||||||||||||||
Adjusted average tangible common equity (2) (23) |
$ | 7,672 | $ | 6,965 | $ | 7,698 | $ | 7,664 | $ | 6,781 | |||||||||||||||||||||||||
Return on common equity (15) |
13.3 | % | 15.9 | % | 15.0 | % | 16.3 | % | 17.4 | % | |||||||||||||||||||||||||
Adjusted return on common equity (2) (15) |
15.4 | % | 20.5 | % | 16.1 | % | 17.6 | % | 19.3 | % | |||||||||||||||||||||||||
Return on tangible common equity (2) (15) |
15.6 | % | 17.7 | % | 16.8 | % | 18.7 | % | 19.3 | % | |||||||||||||||||||||||||
Adjusted return on tangible common equity (2) (15) |
18.1 | % | 22.9 | % | 18.0 | % | 20.1 | % | 21.4 | % |
(1) | Domestic Private Client Group net new assets represents domestic Private Client Group client inflows, including dividends and interest, less domestic Private Client Group client outflows, including commissions, advisory fees and other fees. |
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(2) | These are non-GAAP financial measures. See the schedules on the previous pages for a reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures and for more information on these measures. Certain non-GAAP financial measures have been adjusted for additional expenses directly related to our acquisitions that we believe are not indicative of our core operating results, such as those related to amortization of identifiable intangible assets arising from acquisitions and acquisition-related retention. Prior periods have been conformed to the current period presentation. | |||||||
(3) | These metrics include the impact of the acquisition of TriState Capital Holdings, Inc. (“TriState Capital”). As of June 30, 2022, the impact was $9.4 billion on financial assets under management, $14.9 billion on Bank segment total assets, $11.8 billion on bank loans, net, $2 million on nonperforming assets, and $33 million on criticized loans. |
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(4) | On June 1, 2022, we completed our acquisition of all the outstanding shares of TriState Capital, including its wholly owned subsidiaries, TriState Capital Bank, a Pennsylvania-chartered state bank, and Chartwell Investment Partners, LLC (“Chartwell”), a registered investment adviser. As a result of our acquisition of TriState, we renamed our Raymond James Bank segment to Bank segment, which includes the results of Raymond James Bank and, since June 1, 2022, TriState Capital Bank. TriState Capital Bank will continue to operate as a separately branded firm and as an independently-chartered bank. Chartwell has been integrated into our Asset Management segment and its results of operations have been included in our results prospectively from the closing date of June 1, 2022. |
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(5) | This metric includes the impact of the transfer of one firm with 166 financial advisors previously affiliated as independent contractors to our Registered Investment Advisor & Custody Services (“RCS”) division during our fiscal third quarter of 2022. Advisors in RCS are not included in the financial advisor count, although their assets are still included in client assets under administration. |
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(6) | Estimated. | |||||||
(7) | During our fiscal fourth quarter of 2021 the Board of Directors approved a 3-for-2 stock split, effected in the form of a 50% stock dividend, paid on September 21, 2021. All share and per share information has been retroactively adjusted to reflect this stock split. | |||||||
(8) | Earnings per common share is computed by dividing net income available to common shareholders (less allocation of earnings and dividends to participating securities) by weighted-average common shares outstanding (basic or diluted as applicable) for each respective period or, in the case of adjusted earnings per common share, computed by dividing adjusted net income available to common shareholders (less allocation of earnings and dividends to participating securities) by weighted-average common shares outstanding (basic or diluted as applicable) for each respective period. | |||||||
(9) | Other revenues included $24 million and $56 million of private equity gains for the three and nine months ended June 30, 2021, respectively, which were included in our Other segment. Of these amounts, $10 million and $20 million for the three and nine months ended June 30, 2021, respectively, were attributable to noncontrolling interests and were offset in Other expenses. |
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(10) | Beginning with our fiscal third quarter of 2022, we reclassified acquisition-related expenses which were previously reported in “Acquisition-related expenses” on our Consolidated Statements of Income into the respective income statement line items that align to their expense categories, including “Compensation, commissions, and benefits”, “Professional fees” (primarily legal fees), and “Other” expenses. Prior periods have been conformed to the current presentation. |
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(11) | Includes acquisition-related compensation expenses arising from equity and cash-based retention awards issued in conjunction with our current and prior-year acquisitions. Such retention awards are generally contingent upon the post-closing continuation of service of certain associates who joined the firm as part of such acquisitions and are expensed over the requisite service period. |
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(12) | Our results for the three and nine months ended June 30, 2022 included an initial provision for credit losses on loans and lending commitments acquired as part of our TriState Capital acquisition of $26 million (included in “Bank loan provision/(benefit) for credit losses”) and $5 million (included in “Other” expense), respectively. These provisions were required under U.S. generally accepted accounting principles to be recorded in earnings in the reporting period following the acquisition date. |
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(13) | Losses on extinguishment of debt include make-whole premiums, the accelerated amortization of debt issuance costs, and certain legal and other professional fees associated with the redemptions of our $250 million of 5.625% senior notes due 2024 and our $500 million of 3.625% senior notes due 2026 which occurred during our fiscal third quarter of 2021. |
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(14) | Book value per share is computed by dividing total common equity attributable to Raymond James Financial, Inc. by the number of common shares outstanding at the end of each respective period or, in the case of tangible book value per share, computed by dividing tangible common equity by the number of common shares outstanding at the end of each respective period. Tangible common equity is defined as total common equity attributable to Raymond James Financial, Inc. less goodwill and intangible assets, net of related deferred taxes. | |||||||
(15) | Return on common equity is computed by dividing annualized net income available to common shareholders by average common equity for each respective period or, in the case of return on tangible common equity, computed by dividing annualized net income available to common shareholders by average tangible common equity for each respective period. Adjusted return on common equity is computed by dividing annualized adjusted net income available to common shareholders by adjusted average common equity for each respective period, or in the case of adjusted return on tangible common equity, computed by dividing annualized adjusted net income available to common shareholders by adjusted average tangible common equity for each respective period. | |||||||
(16) | Pre-tax margin is computed by dividing pre-tax income by net revenues for each respective period or, in the case of adjusted pre-tax margin, computed by dividing adjusted pre-tax income by net revenues for each respective period. | |||||||
(17) | Total compensation ratio is computed by dividing compensation, commissions and benefits expense by net revenues for each respective period. Adjusted total compensation ratio is computed by dividing adjusted compensation, commissions and benefits expense by net revenues for each respective period. | |||||||
(18) | We earn fees from RJBDP, a multi-bank sweep program in which clients’ cash deposits in their brokerage accounts are swept into interest-bearing deposit accounts at Raymond James Bank and TriState Capital Bank, which are included in our Bank segment, as well as various third-party banks. Fees earned by the Private Client Group on deposits held by our Bank segment are eliminated in consolidation. | |||||||
(19) | Average yield on RJBDP - third-party banks is computed by dividing annualized RJBDP fees - third-party banks, which are net of the interest expense paid to clients by the third-party banks, by the average daily RJBDP balances at third-party banks. | |||||||
(20) | The average yield is presented on a tax-equivalent basis for each respective period. | |||||||
(21) | The Other segment includes the results of our private equity investments, interest income on certain corporate cash balances, certain acquisition-related expenses, and certain corporate overhead costs of RJF, including the interest costs on certain of our public debt. |
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(22) | Amortization of identifiable intangible assets, which was included in “Other” expense, includes amortization of identifiable intangible assets arising from our acquisitions. | |||||||
(23) | Average common equity is computed by adding the total common equity attributable to Raymond James Financial, Inc. as of the date indicated to the prior quarter-end total, and dividing by two, or in the case of average tangible common equity, computed by adding tangible common equity as of the date indicated to the prior quarter-end total, and dividing by two. For the year-to-date period, average common equity is computed by adding the total common equity attributable to Raymond James Financial, Inc. as of each quarter-end date during the indicated period to the beginning of year total, and dividing by four, or in the case of average tangible common equity, computed by adding tangible common equity as of each quarter-end date during the indicated period to the beginning of year total, and dividing by four. Adjusted average common equity is computed by adjusting for the impact on average common equity of the non-GAAP adjustments, as applicable for each respective period. Adjusted average tangible common equity is computed by adjusting for the impact on average tangible common equity of the non-GAAP adjustments, as applicable for each respective period. |
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