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0000720005false00007200052023-10-252023-10-250000720005us-gaap:CommonStockMember2023-10-252023-10-250000720005rjf:DepositarySharesSeriesBMember2023-10-252023-10-25


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

October 25, 2023
Date of Report (date of earliest event reported)

RAYMOND JAMES FINANCIAL, INC.
(Exact name of registrant as specified in its charter)

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)

(727) 567-1000
(Registrant’s telephone number, including area code)

None
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Exchange Act:
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 6.375% Fixed-to-Floating Rate Series B Non-Cumulative Perpetual Preferred Stock RJF PrB New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act (17 CFR 230.405) or Rule 12b-2 of the Exchange Act (17 CFR 240.12b-2).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.



Item 2.02 Results of Operations and Financial Condition

On October 25, 2023, Raymond James Financial, Inc. (the “Company”) issued a press release disclosing its results for the fiscal fourth quarter and year ended September 30, 2023. A copy of this press release is attached to this Current Report as Exhibit 99.1 and incorporated by reference herein. In addition, a copy of the Company’s Financial Supplement and Earnings Presentation for the fiscal fourth quarter and year ended September 30, 2023 are attached as Exhibits 99.2 and 99.3, respectively, to this Current Report and are incorporated by reference herein.

The information in this Current Report, including any exhibits hereto, is being “furnished” and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any filing of the Company with the Securities and Exchange Commission, whether made before or after the date hereof, regardless of any general incorporation language in such filings (unless the Company specifically states that the information or exhibit in this particular report is incorporated by reference).

Item 9.01 Financial Statements and Exhibits

(d) Exhibits. The following are filed as exhibits to this report:

Exhibit No.

99.1 Press release, dated October 25, 2023, issued by Raymond James Financial, Inc
99.2 Financial Supplement Fiscal Fourth Quarter 2023 & Fiscal 2023 of Raymond James Financial, Inc.
99.3 Earnings Presentation Fiscal Fourth Quarter 2023 & Fiscal 2023 of Raymond James Financial, Inc.
104 Cover Page Interactive Data File (embedded within the Inline XBRL document).


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

RAYMOND JAMES FINANCIAL, INC.
Date: October 25, 2023
By:
  /s/ Paul M. Shoukry
Paul M. Shoukry
Chief Financial Officer

EX-99.1 2 rjf20230930q423earnings.htm EX-99.1 PRESS RELEASE DATED OCTOBER 25, 2023 Document

raymondjameslogoa.jpg
October 25, 2023 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 REPORTS FISCAL FOURTH QUARTER AND
FISCAL 2023 RESULTS

•Record annual net revenues of $11.62 billion and record net income available to common shareholders of $1.73 billion for fiscal 2023, up 6% and 15%, respectively, over fiscal 2022
•Return on common equity of 17.7% and adjusted return on tangible common equity of 22.5%(1) for fiscal 2023
•Domestic Private Client Group net new assets(2)(3) of $14.2 billion for the fiscal fourth quarter and $73.3 billion for fiscal 2023, annualized growth from beginning of period assets of 5.0% and 7.7%, respectively
•Record quarterly net revenues of $3.05 billion, up 8% over the prior year’s fiscal fourth quarter and 5% over the preceding quarter
•Quarterly net income available to common shareholders of $432 million, or $2.02 per diluted share, and quarterly adjusted net income available to common shareholders of $457 million(1), or $2.13 per diluted share(1)
•Client assets under administration of $1.26 trillion and financial assets under management of $196.4 billion
•Net interest income and Raymond James Bank Deposit Program (“RJBDP”) fees from third-party banks of $711 million during the quarter, up 17% over the prior year’s fiscal fourth quarter and flat compared to the preceding quarter

ST. PETERSBURG, Fla – Raymond James Financial, Inc. (NYSE: RJF) today reported record net revenues of $3.05 billion and net income available to common shareholders of $432 million, or $2.02 per diluted share, for the fiscal fourth quarter ended September 30, 2023. Excluding $34 million of expenses related to acquisitions, quarterly adjusted net income available to common shareholders was $457 million(1), or $2.13 per diluted share(1).

Record quarterly net revenues increased 8% over the prior year’s fiscal fourth quarter primarily driven by higher asset management and related administrative fees and the benefit of higher short-term interest rates on net interest income and RJBDP fees from third-party banks. The 5% sequential increase in quarterly net revenues was primarily due to higher asset management and related administrative fees and investment banking revenues.

Quarterly earnings were negatively impacted by elevated provisions for legal and regulatory matters, including an incremental $55 million provision related to the previously-disclosed SEC industry sweep on off-platform communications.

Compared to the prior fiscal year, record net revenues of $11.62 billion increased 6%, record earnings per diluted common share of $7.97 increased 14%, and adjusted earnings per diluted common share of $8.30(1) increased 11%. The Private Client Group and Bank segments generated record net revenues and Private Client Group generated record pre-tax income for the fiscal year. Return on common equity was 17.7% and adjusted return on tangible common equity was 22.5%(1).

Please refer to the footnotes at the end of this press release for additional information.
1


“We generated record net revenues and record net income to common shareholders for fiscal year 2023, despite the challenging macroeconomic environment,” said Chair and CEO Paul Reilly. “Our third consecutive year of record results once again highlights the strength of our diverse and complementary businesses. We enter fiscal 2024 with strong client asset levels and healthy pipelines for growth across the business; however, given uncertainty around interest rates and geopolitical conditions, we remain relentlessly focused on maintaining strong capital ratios and a flexible balance sheet to support our results in any market environment.”

Segment Results
Private Client Group

•Domestic Private Client Group net new assets(2)(3) of $14.2 billion for the fiscal fourth quarter and $73.3 billion for fiscal 2023, annualized growth from beginning of period assets of 5.0% and 7.7%, respectively
•Record quarterly net revenues of $2.27 billion, up 14% over the prior year’s fiscal fourth quarter and 4% over the preceding quarter
•Record quarterly pre-tax income of $477 million, up 29% over the prior year’s fiscal fourth quarter and 16% over the preceding quarter
•Record annual net revenues of $8.65 billion and record annual pre-tax income of $1.76 billion, up 12% and 71%, respectively, over fiscal 2022
•Private Client Group assets under administration of $1.20 trillion, up 16% over September 2022 and down 2% compared to June 2023
•Private Client Group assets in fee-based accounts of $683.2 billion, up 17% over September 2022 and down 2% compared to June 2023
•Total clients’ domestic cash sweep and Enhanced Savings Program (“ESP”) balances of $56.4 billion, down 16% compared to September 2022 and 3% compared to June 2023

Record quarterly results were primarily driven by higher asset management and related administrative fees, reflecting growth of assets in fee-based accounts during the year, along with an increase in RJBDP fees due to higher short-term interest rates.

Total clients’ domestic cash sweep and ESP balances declined 3% compared to June 2023, reflecting lower cash sweep balances largely due to quarterly fee billings and cash sorting activity, which more than offset strong growth in ESP balances. Reflecting higher short-term interest rates, the average yield on RJBDP third-party bank balances of 3.60% increased 175 basis points over the prior year’s fiscal fourth quarter and 23 basis points sequentially.

“Advisors are attracted to our robust technology capabilities and client-first values, leading to strong retention and recruiting across our employee, independent contractor and independent RIA affiliation options,” said Reilly. “Furthermore, strong financial advisor retention and recruiting results helped us achieve attractive organic growth, with domestic Private Client Group net new asset(2)(3) growth of 7.7% over the prior 12 months.”

Capital Markets

•Quarterly net revenues of $341 million, down 15% compared to the prior year’s fiscal fourth quarter and up 24% over the preceding quarter
•Quarterly pre-tax loss of $7 million
•Quarterly investment banking revenues of $194 million, down 6% compared to the prior year’s fiscal fourth quarter and up 38% over the preceding quarter
•Annual net revenues of $1.21 billion, down 33% compared to fiscal 2022; Annual pre-tax loss of $91 million

The year-over-year declines in quarterly net revenues and pre-tax income were driven primarily by lower fixed income brokerage, affordable housing investments and investment banking revenues. Sequentially, net revenues grew 24% primarily driven by improved M&A and advisory revenues.

Please refer to the footnotes at the end of this press release for additional information.
2


“We are encouraged by the 38% sequential improvement in investment banking revenues during the quarter,” said Reilly. “Entering fiscal 2024, the investment banking pipeline remains healthy and new business activity is solid, however, the timing of closings is largely dependent on market conditions.”

Asset Management

•Quarterly net revenues of $236 million, up 9% over the prior year’s fiscal fourth quarter and 4% over the preceding quarter
•Quarterly pre-tax income of $100 million, up 20% over the prior year’s fiscal fourth quarter and 12% over the preceding quarter
•Annual net revenues of $885 million and annual pre-tax income of $351 million, down 3% and 9%, respectively, compared to fiscal 2022
•Financial assets under management of $196.4 billion, up 13% over September 2022 and down 2% compared to June 2023

Quarterly net revenues and pre-tax income increased over the prior year’s fiscal fourth quarter driven primarily by higher financial assets under management due to net inflows to fee-based accounts in the Private Client Group and net inflows at Raymond James Investment Management (“RJIM"), as well as market appreciation over the prior year. RJIM generated $921 million of net inflows during the fiscal fourth quarter and $2.2 billion of net inflows during the fiscal year.

Bank

•Quarterly net revenues of $451 million, up 5% over the prior year’s fiscal fourth quarter and down 12% compared to the preceding quarter
•Quarterly pre-tax income of $78 million, down 37% compared to the prior year’s fiscal fourth quarter and up 18% over the preceding quarter
•Bank segment net interest margin (“NIM”) of 2.87% for the quarter, down 4 basis points compared to the prior year’s fiscal fourth quarter and 39 basis points compared to the preceding quarter
•Record annual net revenues of $2.01 billion and annual pre-tax income of $371 million, up 86% and down 3% compared to fiscal 2022, respectively
•Net loans of $43.8 billion, up 1% over September 2022 and June 2023

Quarterly net revenues increased 5% over the prior-year quarter but declined 12% sequentially, primarily due to lower NIM. The Bank segment’s NIM decreased 39 basis points during the quarter to 2.87%, primarily due to increased interest expense from higher-cost funding as ESP balances replaced a portion of lower-cost RJBDP client cash sweep balances, which were swept to third-party banks. Quarterly bank loan provision for credit losses of $36 million primarily reflects an increase in the allowance on corporate loans. The credit quality of the loan portfolio is solid, with criticized loans as a percent of total loans held for investment ending the quarter at 1.17%. Bank loan allowance for credit losses as a percent of total loans held for investment was 1.07%, and bank loan allowance for credit losses on corporate loans as a percent of corporate loans held for investment was 2.03%.

Other
In the fiscal fourth quarter, the Other segment results include the incremental provision related to the previously-disclosed SEC industry sweep on off-platform communications of $55 million, resulting in a negative impact to earnings per diluted share during the quarter of $0.26.

During the fiscal year, the firm repurchased 8.35 million shares of common stock for $788 million at an average price of $94 per share. As of October 25, 2023, approximately $750 million remained available under the Board’s approved common stock repurchase authorization. At the end of the quarter, the total capital ratio was 22.8%(4) and the tier 1 leverage ratio was 11.9%(4), both well above regulatory requirements.

Please refer to the footnotes at the end of this press release for additional information.
3


A conference call to discuss the results will take place today, Wednesday, October 25, at 5:00 p.m. ET. The live audio webcast, and the presentation which management will review on the call, will be available at www.raymondjames.com/investor-relations/financial-information/quarterly-earnings. For a listen-only connection to the conference call, please dial: 877-400-4403 (conference code: 3778589). An audio replay of the call will be available at the same location until January 24, 2024.

About Raymond James Financial, Inc.

Raymond James Financial, Inc. (NYSE: RJF) is a leading diversified financial services company providing private client group, capital markets, asset management, banking and other services to individuals, corporations and municipalities. The company has approximately 8,700 financial advisors. Total client assets are $1.26 trillion. Public since 1983, the firm is listed on the New York Stock Exchange under the symbol RJF. Additional information is available at www.raymondjames.com.

Forward-Looking Statements

Certain statements made in this press release may constitute “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information concerning future strategic objectives, business prospects, anticipated savings, financial results (including expenses, earnings, liquidity, cash flow and capital expenditures), industry or market conditions, demand for and pricing of our products, divestitures, anticipated results of litigation, regulatory developments, and general economic conditions. In addition, future or conditional verbs such as “will,” “may,” “could,” “should,” and “would,” as well as any other statement that necessarily depends on future events, are intended to identify forward-looking statements. Forward-looking statements are not guarantees, and they involve risks, uncertainties and assumptions. Although we make such statements based on assumptions that we believe to be reasonable, there can be no assurance that actual results will not differ materially from those expressed in the forward-looking statements. We caution investors not to rely unduly on any forward-looking statements and urge you to carefully consider the risks described in our filings with the Securities and Exchange Commission (the “SEC”) from time to time, including our most recent Annual Report on Form 10-K, and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, which are available at www.raymondjames.com and the SEC’s website at www.sec.gov. We expressly disclaim any obligation to update any forward-looking statement in the event it later turns out to be inaccurate, whether as a result of new information, future events, or otherwise.

Please refer to the footnotes at the end of this press release for additional information.
4

RAYMOND JAMES FINANCIAL, INC.
Fiscal Fourth Quarter of 2023
Selected Financial Highlights
(Unaudited)

Summary results of operations

Three months ended % change from

$ in millions, except per share amounts
September 30,
2023
September 30,
2022
June 30,
2023
September 30,
2022
June 30,
2023
Net revenues $ 3,053  $ 2,831 

$ 2,907  8% 5%
Pre-tax income $ 585  $ 616  $ 486  (5)% 20%
Net income available to common shareholders $ 432  $ 437  $ 369  (1)% 17%
Earnings per common share: (5)
Basic $ 2.07  $ 2.03  $ 1.75  2% 18%
Diluted $ 2.02  $ 1.98  $ 1.71  2% 18%
Non-GAAP measures: (1)
Adjusted pre-tax income
$ 619  $ 646  $ 526  (4)% 18%
Adjusted net income available to common shareholders $ 457  $ 459  $ 399  —% 15%
Adjusted earnings per common share – basic (5)
$ 2.19  $ 2.13  $ 1.89  3% 16%
Adjusted earnings per common share – diluted (5)
$ 2.13  $ 2.08  $ 1.85  2% 15%

Twelve months ended
$ in millions, except per share amounts September 30,
2023
September 30,
2022
% change
Net revenues $ 11,619  $ 11,003 

6%
Pre-tax income $ 2,280  $ 2,022  13%
Net income available to common shareholders $ 1,733  $ 1,505  15%
Earnings per common share: (5)
Basic $ 8.16  $ 7.16  14%
Diluted $ 7.97  $ 6.98  14%
Non-GAAP measures: (1)
Adjusted pre-tax income $ 2,378  $ 2,169  10%
Adjusted net income available to common shareholders $ 1,806  $ 1,615  12%
Adjusted earnings per common share – basic (5)
$ 8.50  $ 7.68  11%
Adjusted earnings per common share – diluted (5)
$ 8.30  $ 7.49  11%

Other selected financial highlights Three months ended Twelve months ended
September 30,
2023
September 30,
2022
June 30,
2023
September 30,
2023
September 30,
2022
Return on common equity (6)
17.3  % 18.7  % 14.9  % 17.7  % 17.0  %
Adjusted return on common equity (1) (6)
18.3  % 19.6  % 16.1  % 18.4  % 18.2  %
Adjusted return on tangible common equity (1) (6)
22.2  % 24.1  % 19.7  % 22.5  % 21.1  %
Pre-tax margin (7)
19.2  % 21.8  % 16.7  % 19.6  % 18.4  %
Adjusted pre-tax margin (1) (7)
20.3  % 22.8  % 18.1  % 20.5  % 19.7  %
Total compensation ratio (8)
62.0  % 62.1  % 63.7  % 62.8  % 66.6  %
Adjusted total compensation ratio (1) (8)
61.4  % 61.5  % 62.7  % 62.1  % 66.1  %
Effective tax rate 25.8  % 28.7  % 24.1  % 23.7  % 25.4  %
Please refer to the footnotes at the end of this press release for additional information.
5

RAYMOND JAMES FINANCIAL, INC.             
Fiscal Fourth Quarter of 2023


Consolidated Statements of Income
(Unaudited)
Three months ended % change from
$ in millions, except per share amounts September 30,
2023
September 30,
2022
June 30,
2023
September 30,
2022
June 30,
2023
Revenues:
Asset management and related administrative fees $ 1,446  $ 1,290  $ 1,373  12% 5%
Brokerage revenues:
Securities commissions 382  357  356  7% 7%
Principal transactions 98  124  105  (21)% (7)%
Total brokerage revenues 480  481  461  —% 4%
Account and service fees 314  266  264  18% 19%
Investment banking 202  217  151  (7)% 34%
Interest income 1,019  667  987  53% 3%
Other 54  80  57  (33)% (5)%
Total revenues 3,515  3,001  3,293  17% 7%
Interest expense (462) (170) (386) 172% 20%
Net revenues 3,053  2,831  2,907  8% 5%
Non-interest expenses:
Compensation, commissions and benefits (9)
1,892  1,759  1,851  8% 2%
Non-compensation expenses:
Communications and information processing 158  138  149  14% 6%
Occupancy and equipment 69  66  68  5% 1%
Business development 66  59  66  12% —%
Investment sub-advisory fees 41  36  40  14% 3%
Professional fees 40  38  35  5% 14%
Bank loan provision for credit losses 36  34  54  6% (33)%
Other (10)
166  85  158  95% 5%
Total non-compensation expenses 576  456  570  26% 1%
Total non-interest expenses 2,468  2,215  2,421  11% 2%
Pre-tax income
585  616  486  (5)% 20%
Provision for income taxes 151  177  117  (15)% 29%
Net income 434  439  369  (1)% 18%
Preferred stock dividends —  —% NM
Net income available to common shareholders $ 432  $ 437  $ 369  (1)% 17%
Earnings per common share – basic (5)
$ 2.07  $ 2.03  $ 1.75  2% 18%
Earnings per common share – diluted (5)
$ 2.02  $ 1.98  $ 1.71  2% 18%
Weighted-average common shares outstanding – basic 208.3  215.0  210.1  (3)% (1)%
Weighted-average common and common equivalent shares outstanding – diluted 213.8  220.6  214.8  (3)% —%
Please refer to the footnotes at the end of this press release for additional information.
6

RAYMOND JAMES FINANCIAL, INC.             
Fiscal Fourth Quarter of 2023


Consolidated Statements of Income
(Unaudited)
Twelve months ended
$ in millions, except per share amounts September 30,
2023
September 30,
2022
% change
Revenues:
Asset management and related administrative fees $ 5,363  $ 5,563  (4)%
Brokerage revenues:
Securities commissions 1,459  1,589  (8)%
Principal transactions 462  527  (12)%
Total brokerage revenues 1,921  2,116  (9)%
Account and service fees 1,125  833  35%
Investment banking 648  1,100  (41)%
Interest income 3,748  1,508  149%
Other 187  188  (1)%
Total revenues 12,992  11,308  15%
Interest expense (1,373) (305) 350%
Net revenues 11,619  11,003  6%
Non-interest expenses:
Compensation, commissions and benefits (9)
7,299  7,329  —%
Non-compensation expenses:
Communications and information processing 599  506  18%
Occupancy and equipment 271  252  8%
Business development 242  186  30%
Investment sub-advisory fees 151  152  (1)%
Professional fees 145  131  11%
Bank loan provision for credit losses (11)
132  100  32%
Other (10) (11) (12)
500  325  54%
Total non-compensation expenses 2,040  1,652  23%
Total non-interest expenses 9,339  8,981  4%
Pre-tax income
2,280  2,022  13%
Provision for income taxes 541  513  5%
Net income 1,739  1,509  15%
Preferred stock dividends 50%
Net income available to common shareholders $ 1,733  $ 1,505  15%
Earnings per common share – basic (5)
$ 8.16  $ 7.16  14%
Earnings per common share – diluted (5)
$ 7.97  $ 6.98  14%
Weighted-average common shares outstanding – basic 211.8  209.9  1%
Weighted-average common and common equivalent shares outstanding – diluted 216.9  215.3  1%
    

Please refer to the footnotes at the end of this press release for additional information.
7

RAYMOND JAMES FINANCIAL, INC. Consolidated Selected Key Metrics
Fiscal Fourth Quarter of 2023
(Unaudited)
As of % change from
$ in millions, except per share amounts
September 30,
2023
September 30,
2022
June 30,
2023
September 30,
2022
June 30,
2023
Total assets $ 78,360  $ 80,951  $ 77,633  (3)% 1%
Total common equity attributable to Raymond James Financial, Inc. $ 10,135  $ 9,338  $ 9,870  9% 3%
Book value per share (13)
$ 48.54  $ 43.41  $ 47.34  12% 3%
Tangible book value per share (1) (13)
$ 40.03  $ 35.02  $ 38.71  14% 3%
Capital ratios:
Tier 1 leverage 11.9  %
(4)
10.3  % 11.4  %
Tier 1 capital 21.4  %
(4)
19.2  % 20.6  %
Common equity tier 1 21.2  %
(4)
19.0  % 20.4  %
Total capital 22.8  %
(4)
20.4  % 22.0  %

Client asset metrics ($ in billions)
As of % change from
September 30,
2023
September 30,
2022
June 30,
2023
September 30,
2022
June 30,
2023
Client assets under administration $ 1,256.5  $ 1,093.1  $ 1,280.9  15% (2)%
Private Client Group assets under administration $ 1,201.2  $ 1,039.0  $ 1,227.0  16% (2)%
Private Client Group assets in fee-based accounts $ 683.2  $ 586.0  $ 697.0  17% (2)%
Financial assets under management $ 196.4  $ 173.8  $ 200.7  13% (2)%

Net new assets metrics ($ in millions)
Three months ended Twelve months ended
September 30,
2023
September 30,
2022
June 30,
2023
September 30,
2023
September 30,
2022
Domestic Private Client Group net new assets (2) (3)
$ 14,169  $ 20,184  $ 14,386  $ 73,254  $ 95,041 
Domestic Private Client Group net new assets growth — annualized (2) (3)
5.0  % 8.3  % 5.4  % 7.7  % 8.5  %

Clients’ domestic cash sweep and Enhanced Savings Program balances ($ in millions)
As of % change from
September 30,
2023
September 30,
2022
June 30,
2023
September 30,
2022
June 30,
2023
Raymond James Bank Deposit Program (“RJBDP”): (14)
Bank segment (14)
$ 25,355  $ 38,705  $ 27,915  (34)% (9)%
Third-party banks 15,858  21,964  16,923  (28)% (6)%
Subtotal RJBDP 41,213  60,669  44,838  (32)% (8)%
Client Interest Program 1,620  6,445  1,915  (75)% (15)%
Total clients’ domestic cash sweep balances
42,833  67,114  46,753  (36)% (8)%
Enhanced Savings Program (15)
13,592  —  11,225  NM 21%
Total clients’ domestic cash sweep and Enhanced Savings Program balances $ 56,425  $ 67,114  $ 57,978  (16)% (3)%

Three months ended Twelve months ended
September 30,
2023
September 30,
2022
June 30,
2023
September 30,
2023
September 30,
2022
Average yield on RJBDP - third-party banks (16)
3.60  % 1.85  % 3.37  % 3.20  % 0.82  %


Private Client Group financial advisors As of % change from
September 30,
2023
September 30,
2022
June 30,
2023
September 30,
2022
June 30,
2023
Employees 3,693  3,638  3,654  2% 1%
Independent contractors (3)
5,019  5,043  5,050  —% (1)%
Total advisors (3)
8,712  8,681  8,704  —% —%
Please refer to the footnotes at the end of this press release for additional information.
8

RAYMOND JAMES FINANCIAL, INC. Consolidated Net Interest
Fiscal Fourth Quarter of 2023
(Unaudited)

The following tables present our consolidated average interest-earning asset and interest-bearing liability balances, interest income and expense and the related rates.

  Three months ended
  September 30, 2023 September 30, 2022 June 30, 2023
$ in millions Average
balance
Interest Annualized
average
rate
Average
balance
Interest Annualized
average
rate
Average
balance
Interest Annualized
average
rate
INTEREST-EARNING ASSETS
Bank segment
Cash and cash equivalents $ 5,208  $ 71  5.36  % $ 2,177  $ 13  2.35  % $ 5,502  $ 70  5.08  %
Available-for-sale securities 10,563  56  2.12  % 11,241  52  1.84  % 10,737  56  2.07  %
Loans held for sale and investment: (17)
Loans held for investment:
Securities-based loans (“SBL”) (18)
14,307  260  7.14  % 15,290  172  4.42  % 14,200  251  7.02  %
Commercial and industrial (“C&I”) loans 10,499  201  7.49  % 10,986  128  4.52  % 10,916  202  7.33  %
Commercial real estate (“CRE”) loans 7,115  138  7.59  % 6,368  82  5.00  % 7,097  132  7.31  %
Real estate investment trust (“REIT”) loans 1,707  33  7.54  % 1,519  17  4.57  % 1,716  31  7.30  %
Residential mortgage loans 8,570  72  3.34  % 7,119  51  2.88  % 8,279  67  3.22  %
Tax-exempt loans (19)
1,512  10  3.17  % 1,503  10  3.06  % 1,629  11  3.17  %
Loans held for sale 140  8.23  % 188  4.22  % 195  9.63  %
Total loans held for sale and investment 43,850  717  6.44  % 42,973  461  4.23  % 44,032  698  6.31  %
All other interest-earning assets 201  5.94  % 126  4.92  % 126  5.56  %
Interest-earning assets — Bank segment $ 59,822  $ 847  5.58  % $ 56,517  $ 527  3.69  % $ 60,397  $ 826  5.44  %
All other segments
Cash and cash equivalents $ 3,231  $ 48  5.85  % $ 3,339  $ 19  2.24  % $ 2,820  $ 39  5.51  %
Assets segregated for regulatory purposes and restricted cash 3,510  45  5.12  % 12,332  57  1.88  % 4,236  47  4.69  %
Trading assets — debt securities 1,070  17  5.56  % 1,117  14  4.97  % 1,025  13  5.00  %
Brokerage client receivables 2,150  46  8.34  % 2,517  34  5.24  % 2,105  42  8.14  %
All other interest-earning assets 1,782  16  3.79  % 1,989  16  2.91  % 1,830  20  3.52  %
Interest-earning assets — all other segments $ 11,743  $ 172  5.75  % $ 21,294  $ 140  2.61  % $ 12,016  $ 161  5.34  %
Total interest-earning assets $ 71,565  $ 1,019  5.61  % $ 77,811  $ 667  3.40  % $ 72,413  $ 987  5.42  %
INTEREST-BEARING LIABILITIES
Bank Segment
Bank deposits:
Money market and savings accounts (14)
$ 33,447  $ 155  1.84  % $ 44,392  $ 68  0.61  % $ 38,757  $ 134  1.39  %
Interest-bearing demand deposits (15)
17,519  216  4.91  % 5,477  30  2.18  % 12,877  153  4.76  %
Certificates of deposit 2,762  30  4.35  % 1,061  1.51  % 2,806  30  4.24  %
Total bank deposits (20)
53,728  401  2.97  % 50,930  103  0.80  % 54,440  317  2.33  %
FHLB advances and all other interest-bearing liabilities 1,233  2.20  % 1,226  2.34  % 1,478  12  3.18  %
Interest-bearing liabilities — Bank segment $ 54,961  $ 408  2.95  % $ 52,156  $ 110  0.84  % $ 55,918  $ 329  2.35  %
All other segments
Trading liabilities — debt securities $ 702  $ 10  5.22  % $ 754  $ 4.84  % $ 703  $ 5.18  %
Brokerage client payables 4,620  21  1.65  % 11,901  20  0.65  % 5,184  17  1.48  %
Senior notes payable 2,039  23  4.53  % 2,038  24  4.52  % 2,038  23  4.53  %
All other interest-bearing liabilities (20)
584  —  1.17  % 529  2.90  % 579  3.88  %
Interest-bearing liabilities — all other segments $ 7,945  $ 54  2.67  % $ 15,222  $ 60  1.56  % $ 8,504  $ 57  2.68  %
Total interest-bearing liabilities $ 62,906  $ 462  2.91  % $ 67,378  $ 170  1.00  % $ 64,422  $ 386  2.39  %
Firmwide net interest income $ 557  $ 497  $ 601 
Net interest margin (net yield on interest-earning assets)
Bank segment 2.87  % 2.91  % 3.26  %
Firmwide 3.09  % 2.53  % 3.33  %
Please refer to the footnotes at the end of this press release for additional information.
9

RAYMOND JAMES FINANCIAL, INC. Consolidated Net Interest
Fiscal Fourth Quarter of 2023
(Unaudited)
  Twelve months ended
  September 30, 2023 September 30, 2022
$ in millions Average
balance
Interest Average
rate
Average
balance
Interest Average
rate
INTEREST-EARNING ASSETS
Bank segment
Cash and cash equivalents $ 4,033  $ 199  4.89  % $ 1,884  $ 18  0.98  %
Available-for-sale securities 10,805  219  2.02  % 9,651  136  1.40  %
Loans held for sale and investment: (17)
Loans held for investment:
SBL (18)
14,510  977  6.65  % 9,561  324  3.34  %
C&I loans 10,955  767  6.90  % 9,493  313  3.25  %
CRE loans 6,993  496  6.99  % 4,205  158  3.70  %
REIT loans 1,680  119  6.99  % 1,339  44  3.28  %
Residential mortgage loans 8,114  258  3.18  % 6,170  170  2.76  %
Tax-exempt loans (19)
1,596  41  3.14  % 1,355  35  3.15  %
Loans held for sale 173  13  7.61  % 229  3.24  %
Total loans held for sale and investment 44,021  2,671  6.02  % 32,352  1,051  3.24  %
All other interest-earning assets 156  5.67  % 124  3.29  %
Interest-earning assets — Bank segment $ 59,015  $ 3,098  5.21  % $ 44,011  $ 1,209  2.74  %
All other segments
Cash and cash equivalents $ 3,125  $ 159  5.08  % $ 4,114  $ 30  0.73  %
Assets segregated for regulatory purposes and restricted cash 4,722  197  4.17  % 14,826  96  0.65  %
Trading assets — debt securities 1,059  57  5.40  % 621  27  4.38  %
Brokerage client receivables 2,214  170  7.68  % 2,529  100  3.94  %
All other interest-earning assets 1,809  67  3.46  % 1,944  46  2.33  %
Interest-earning assets — all other segments $ 12,929  $ 650  4.99  % $ 24,034  $ 299  1.24  %
Total interest-earning assets $ 71,944  $ 3,748  5.17  % $ 68,045  $ 1,508  2.22  %
INTEREST-BEARING LIABILITIES
Bank Segment
Bank deposits:
Money market and savings accounts (14)
$ 40,463  $ 547  1.35  % $ 36,693  $ 81  0.22  %
Interest-bearing demand deposits (15)
10,352  473  4.57  % 2,061  39  1.88  %
Certificates of deposit 2,163  84  3.88  % 870  15  1.68  %
Total bank deposits (20)
52,978  1,104  2.08  % 39,624  135  0.34  %
FHLB advances and all other interest-bearing liabilities 1,364  37  2.67  % 1,001  21  2.15  %
Interest-bearing liabilities — Bank segment $ 54,342  $ 1,141  2.09  % $ 40,625  $ 156  0.38  %
All other segments
Trading liabilities — debt securities $ 727  $ 36  5.24  % $ 325  $ 12  3.64  %
Brokerage client payables 5,877  78  1.33  % 15,530  24  0.15  %
Senior notes payable 2,038  92  4.53  % 2,037  93  4.52  %
All other interest-bearing liabilities (20)
620  26  3.78  % 328  20  2.48  %
Interest-bearing liabilities — all other segments $ 9,262  $ 232  2.51  % $ 18,220  $ 149  0.82  %
Total interest-bearing liabilities $ 63,604  $ 1,373  2.15  % $ 58,845  $ 305  0.52  %
Firmwide net interest income $ 2,375  $ 1,203 
Net interest margin (net yield on interest-earning assets)
Bank segment 3.28  % 2.39  %
Firmwide 3.30  % 1.77  %
Please refer to the footnotes at the end of this press release for additional information.
10

RAYMOND JAMES FINANCIAL, INC. Segment Results
Fiscal Fourth Quarter of 2023
(Unaudited)

Three months ended % change from
$ in millions September 30,
2023
September 30,
2022
June 30,
2023
September 30,
2022
June 30,
2023
Net revenues:
Private Client Group $ 2,265  $ 1,991  $ 2,182  14% 4%
Capital Markets 341  399  276  (15)% 24%
Asset Management 236  216  226  9% 4%
Bank 451  428  514  5% (12)%
Other (21)
25  15  525% 67%
Intersegment eliminations (265) (207) (306) 28% (13)%
Total net revenues
$ 3,053  $ 2,831  $ 2,907  8% 5%
Pre-tax income/(loss):
Private Client Group $ 477  $ 371  $ 411  29% 16%
Capital Markets (7) 66  (34) NM 79%
Asset Management 100  83  89  20% 12%
Bank 78  123  66  (37)% 18%
Other (21)
(63) (27) (46) (133)% (37)%
Pre-tax income
$ 585  $ 616  $ 486  (5)% 20%

Twelve months ended
$ in millions September 30,
2023
September 30,
2022
% change
Net revenues:
Private Client Group $ 8,654  $ 7,710  12%
Capital Markets 1,214  1,809  (33)%
Asset Management 885  914  (3)%
Bank 2,013  1,084  86%
Other (21)
59  (50) NM
Intersegment eliminations (1,206) (464) 160%
Total net revenues $ 11,619  $ 11,003  6%
Pre-tax income/(loss):
Private Client Group $ 1,763  $ 1,030  71%
Capital Markets (91) 415  NM
Asset Management 351  386  (9)%
Bank 371  382  (3)%
Other (12) (21)
(114) (191) 40%
Pre-tax income $ 2,280  $ 2,022  13%
Please refer to the footnotes at the end of this press release for additional information.
11

RAYMOND JAMES FINANCIAL, INC. Segment Results
Fiscal Fourth Quarter of 2023
(Unaudited)

Private Client Group
Three months ended % change from
$ in millions September 30,
2023
September 30,
2022
June 30,
2023
September 30,
2022
June 30,
2023
Revenues:  
Asset management and related administrative fees $ 1,226  $ 1,089  $ 1,164  13% 5%
Brokerage revenues:
Mutual and other fund products 142  134  135  6% 5%
Insurance and annuity products 119  108  103  10% 16%
Equities, ETFs and fixed income products 115  107  111  7% 4%
Total brokerage revenues 376  349  349  8% 8%
Account and service fees:
Mutual fund and annuity service fees 109  103  103  6% 6%
RJBDP fees: (14)
Bank segment (14)
237  179  277  32% (14)%
Third-party banks
154  109  107  41% 44%
Client account and other fees 56  59  59  (5)% (5)%
Total account and service fees 556  450  546  24% 2%
Investment banking 10  (20)% (11)%
Interest income 115  111  114  4% 1%
All other 25  —% (68)%
Total revenues 2,289  2,017  2,207  13% 4%
Interest expense (24) (26) (25) (8)% (4)%
Net revenues 2,265  1,991  2,182  14% 4%
Non-interest expenses:      
Financial advisor compensation and benefits 1,193  1,091  1,151  9% 4%
Administrative compensation and benefits 348  321  355  8% (2)%
Total compensation, commissions and benefits 1,541  1,412  1,506  9% 2%
Non-compensation expenses 247  208  265  19% (7)%
Total non-interest expenses 1,788  1,620  1,771  10% 1%
Pre-tax income $ 477  $ 371  $ 411  29% 16%


Please refer to the footnotes at the end of this press release for additional information.
12

RAYMOND JAMES FINANCIAL, INC. Segment Results
Fiscal Fourth Quarter of 2023
(Unaudited)

Private Client Group
Twelve months ended
$ in millions September 30,
2023
September 30,
2022
% change
Revenues:  
Asset management and related administrative fees $ 4,545  $ 4,710  (4)%
Brokerage revenues:
Mutual and other fund products 540  620  (13)%
Insurance and annuity products 439  438  —%
Equities, ETFs and fixed income products 455  458  (1)%
Total brokerage revenues 1,434  1,516  (5)%
Account and service fees:
Mutual fund and annuity service fees 415  428  (3)%
RJBDP fees: (14)
Bank segment (14)
1,093  357  206%
Third-party banks 498  202  147%
Client account and other fees 231  220  5%
Total account and service fees 2,237  1,207  85%
Investment banking 35  38  (8)%
Interest income 455  249  83%
All other 48  32  50%
Total revenues 8,754  7,752  13%
Interest expense (100) (42) 138%
Net revenues 8,654  7,710  12%
Non-interest expenses:    
Financial advisor compensation and benefits 4,537  4,696  (3)%
Administrative compensation and benefits 1,390  1,199  16%
Total compensation, commissions and benefits 5,927  5,895  1%
Non-compensation expenses 964  785  23%
Total non-interest expenses 6,891  6,680  3%
Pre-tax income $ 1,763  $ 1,030  71%
Please refer to the footnotes at the end of this press release for additional information.
13

RAYMOND JAMES FINANCIAL, INC. Segment Results
Fiscal Fourth Quarter of 2023
(Unaudited)

Capital Markets
Three months ended % change from
$ in millions September 30,
2023
September 30,
2022
June 30,
2023
September 30,
2022
June 30,
2023
Revenues:  
Brokerage revenues:
Fixed income $ 71  $ 96  $ 78  (26)% (9)%
Equity 30  30  32  —% (6)%
Total brokerage revenues 101  126  110  (20)% (8)%
Investment banking:
Merger & acquisition and advisory 141  152  88  (7)% 60%
Equity underwriting 16  25  25  (36)% (36)%
Debt underwriting 37  30  28  23% 32%
Total investment banking 194  207  141  (6)% 38%
Interest income 23  20  21  15% 10%
Affordable housing investments business revenues 41  56  21  (27)% 95%
All other (67)% (25)%
Total revenues 362  418  297  (13)% 22%
Interest expense (21) (19) (21) 11% —%
Net revenues 341  399  276  (15)% 24%
Non-interest expenses:
Compensation, commissions and benefits
238  238  220  —% 8%
Non-compensation expenses 110  95  90  16% 22%
Total non-interest expenses 348  333  310  5% 12%
Pre-tax income/(loss) $ (7) $ 66  $ (34) NM 79%

Twelve months ended
$ in millions September 30,
2023
September 30,
2022
% change
Revenues:  
Brokerage revenues:
Fixed income $ 345  $ 448  (23)%
Equity 130  142  (8)%
Total brokerage revenues 475  590  (19)%
Investment banking:
Merger & acquisition and advisory 418  709  (41)%
Equity underwriting 85  210  (60)%
Debt underwriting 110  143  (23)%
Total investment banking 613  1,062  (42)%
Interest income 88  36  144%
Affordable housing investments business revenues 109  127  (14)%
All other 14  21  (33)%
Total revenues 1,299  1,836  (29)%
Interest expense (85) (27) 215%
Net revenues 1,214  1,809  (33)%
Non-interest expenses:
Compensation, commissions and benefits 902  1,065  (15)%
Non-compensation expenses 403  329  22%
Total non-interest expenses 1,305  1,394  (6)%
Pre-tax income/(loss) $ (91) $ 415  NM
Please refer to the footnotes at the end of this press release for additional information.
14

RAYMOND JAMES FINANCIAL, INC. Segment Results
Fiscal Fourth Quarter of 2023
(Unaudited)

Asset Management
Three months ended % change from
$ in millions September 30,
2023
September 30,
2022
June 30,
2023
September 30,
2022
June 30,
2023
Revenues:
Asset management and related administrative fees:
Managed programs $ 153  $ 140  $ 146  9% 5%
Administration and other 73  69  71  6% 3%
Total asset management and related administrative fees
226  209  217  8% 4%
Account and service fees —% —%
All other 150% 25%
Net revenues 236  216  226  9% 4%
Non-interest expenses:
Compensation, commissions and benefits
48  52  51  (8)% (6)%
Non-compensation expenses 88  81  86  9% 2%
Total non-interest expenses 136  133  137  2% (1)%
Pre-tax income
$ 100  $ 83  $ 89  20% 12%


Twelve months ended
$ in millions September 30,
2023
September 30,
2022
% change
Revenues:
Asset management and related administrative fees:
Managed programs $ 573  $ 585  (2)%
Administration and other 273  297  (8)%
Total asset management and related administrative fees 846  882  (4)%
Account and service fees 21  22  (5)%
All other 18  10  80%
Net revenues 885  914  (3)%
Non-interest expenses:
Compensation, commissions and benefits 198  194  2%
Non-compensation expenses 336  334  1%
Total non-interest expenses 534  528  1%
Pre-tax income $ 351  $ 386  (9)%
Please refer to the footnotes at the end of this press release for additional information.
15

RAYMOND JAMES FINANCIAL, INC. Segment Results
Fiscal Fourth Quarter of 2022
(Unaudited)


Bank
Three months ended % change from
$ in millions September 30,
2023
September 30,
2022
June 30,
2023
September 30,
2022
June 30,
2023
Revenues:
Interest income $ 847  $ 527  $ 826  61% 3%
Interest expense (408) (110) (329) 271% 24%
Net interest income 439  417  497  5% (12)%
All other 12  11  17  9% (29)%
Net revenues 451  428  514  5% (12)%
Non-interest expenses:
Compensation and benefits 41  36  48  14% (15)%
Non-compensation expenses:
Bank loan provision for credit losses 36  34  54  6% (33)%
RJBDP fees to Private Client Group (14)
237  179  277  32% (14)%
All other 59  56  69  5% (14)%
Total non-compensation expenses 332  269  400  23% (17)%
Total non-interest expenses 373  305  448  22% (17)%
Pre-tax income $ 78  $ 123  $ 66  (37)% 18%


Twelve months ended
$ in millions September 30,
2023
September 30,
2022
% change
Revenues:
Interest income $ 3,098  $ 1,209  156%
Interest expense (1,141) (156) 631%
Net interest income 1,957  1,053  86%
All other 56  31  81%
Net revenues 2,013  1,084  86%
Non-interest expenses:
Compensation and benefits 177  84  111%
Non-compensation expenses:
Bank loan provision for credit losses 132  100  32%
RJBDP fees to Private Client Group (14)
1,093  357  206%
All other 240  161  49%
Total non-compensation expenses 1,465  618  137%
Total non-interest expenses 1,642  702  134%
Pre-tax income $ 371  $ 382  (3)%
Please refer to the footnotes at the end of this press release for additional information.
16

RAYMOND JAMES FINANCIAL, INC. Segment Results
Fiscal Fourth Quarter of 2023
(Unaudited)

Other (21)
Three months ended % change from
$ in millions September 30,
2023
September 30,
2022
June 30,
2023
September 30,
2022
June 30,
2023
Revenues:
Interest income $ 44  $ 15  $ 37  193% 19%
Net gains on private equity investments (89)% (50)%
All other —  —% NM
Total revenues 47  26  39  81% 21%
Interest expense (22) (22) (24) —% (8)%
Net revenues 25  15  525% 67%
Non-interest expenses:
Compensation and benefits 24  20  27  20% (11)%
All other 64  11  34  482% 88%
Total non-interest expenses 88  31  61  184% 44%
Pre-tax loss $ (63) $ (27) $ (46) (133)% (37)%


Twelve months ended
$ in millions September 30,
2023
September 30,
2022
% change
Revenues:
Interest income $ 147  $ 25  488%
Net gains on private equity investments (33)%
All other (67)%
Total revenues 156  43  263%
Interest expense (97) (93) 4%
Net revenues 59  (50) NM
Non-interest expenses:
Compensation and benefits 95  90  6%
Insurance settlement received (12)
(32) —  NM
All other 110  51  116%
Total non-interest expenses 173  141  23%
Pre-tax loss
$ (114) $ (191) 40%
Please refer to the footnotes at the end of this press release for additional information.
17

RAYMOND JAMES FINANCIAL, INC. Bank Segment Selected Key Metrics
Fiscal Fourth Quarter of 2023
(Unaudited)

Bank Segment

Our Bank segment includes Raymond James Bank and TriState Capital Bank.
As of % change from
$ in millions
September 30,
2023
September 30,
2022
June 30,
2023
September 30,
2022
June 30,
2023
Total assets $ 60,041  $ 56,737  $ 59,506  6% 1%
Bank loans, net:
Raymond James Bank $ 30,906  $ 31,109  $ 30,834  (1)% —%
TriState Capital Bank 12,869  12,130  12,511  6% 3%
Total bank loans, net $ 43,775  $ 43,239  $ 43,345  1% 1%
Bank loan allowance for credit losses $ 474  $ 396  $ 456  20% 4%
Bank loan allowance for credit losses as a % of total loans held for investment 1.07  % 0.91  % 1.04  %
Bank loan allowance for credit losses on corporate loans as a % of corporate loans held for investment (22)
2.03  % 1.73  % 1.90  %
Total nonperforming assets $ 128  $ 74  $ 127  73% 1%
Nonperforming assets as a % of total assets 0.21  % 0.13  % 0.21  %
Total criticized loans $ 518  $ 496  $ 411  4% 26%
Criticized loans as a % of loans held for investment 1.17  % 1.14  % 0.94  %
Total bank deposits $ 54,199  $ 51,357  $ 53,768  6% 1%

Three months ended % change from Twelve months ended
$ in millions September 30,
2023
September 30,
2022
June 30,
2023
September 30,
2022
June 30,
2023
September 30,
2023
September 30,
2022
% change
Bank loan provision for credit losses (11)
$ 36  $ 34  $ 54  6% (33)% $ 132  $ 100  32%
Net charge-offs $ 17  $ 14  $ 15  21% 13% $ 54  $ 26  108%

Please refer to the footnotes at the end of this press release for additional information.
18

RAYMOND JAMES FINANCIAL, INC. Non-GAAP Financial Measures
Fiscal Fourth Quarter of 2023
(Unaudited)

Reconciliation of non-GAAP financial measures to GAAP financial measures

We utilize certain non-GAAP financial measures as additional measures to aid in, and enhance, the understanding of our financial results and related measures. These non-GAAP financial measures have been separately identified in this document. We believe certain of these non-GAAP financial measures provide useful information to management and investors by excluding certain material items that may not be indicative of our core operating results. We utilize these non-GAAP financial measures in assessing the financial performance of the business, as they facilitate a comparison of current- and prior-period results. We believe that return on tangible common equity and tangible book value per share are meaningful to investors as they facilitate comparisons of our results to the results of other companies. In the following tables, the tax effect of non-GAAP adjustments reflects the statutory rate associated with each non-GAAP item. These non-GAAP financial measures should be considered in addition to, and not as a substitute for, measures of financial performance prepared in accordance with GAAP. In addition, our non-GAAP financial measures may not be comparable to similarly titled non-GAAP financial measures of other companies. The following tables provide a reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures.

Three months ended Twelve months ended
$ in millions September 30,
2023
September 30,
2022
June 30,
2023
September 30,
2023
September 30,
2022
Net income available to common shareholders $ 432  $ 437  $ 369  $ 1,733  $ 1,505 
Non-GAAP adjustments:
Expenses directly related to acquisitions included in the following financial statement line items:
Compensation, commissions and benefits:
Acquisition-related retention (9)
17  17  18  70  58 
Other acquisition-related compensation —  —  10  10 
Total “Compensation, commissions and benefits” expense 17  17  28  80  60 
Communications and information processing —  —  — 
Professional fees 12 
Bank loan provision for credit losses — Initial provision for credit losses on acquired loans (11)
—  —  —  —  26 
Other:
Amortization of identifiable intangible assets (23)
12  11  11  45  33 
Initial provision for credit losses on acquired lending commitments (11)
—  —  —  — 
All other acquisition-related expenses —  —  —  11 
Total “Other” expense 12  12  11  45  49 
Total expenses related to acquisitions 34  30  40  130  147 
Other — Insurance settlement received (12)
—  —  —  (32) — 
Pre-tax impact of non-GAAP adjustments 34  30  40  98  147 
Tax effect of non-GAAP adjustments
(9) (8) (10) (25) (37)
Total non-GAAP adjustments, net of tax
25  22  30  73  110 
Adjusted net income available to common shareholders (1)
$ 457  $ 459  $ 399  $ 1,806  $ 1,615 
Pre-tax income
$ 585  $ 616  $ 486  $ 2,280  $ 2,022 
Pre-tax impact of non-GAAP adjustments (as detailed above)
34  30  40  98  147 
Adjusted pre-tax income (1)
$ 619  $ 646  $ 526  $ 2,378  $ 2,169 
Compensation, commissions and benefits expense $ 1,892  $ 1,759  $ 1,851  $ 7,299  $ 7,329 
Less: Total compensation-related acquisition expenses (as detailed above) 17  17  28  80  60 
Adjusted “Compensation, commissions and benefits” expense (1)
$ 1,875  $ 1,742  $ 1,823  $ 7,219  $ 7,269 

Please refer to the footnotes at the end of this press release for additional information.
19

RAYMOND JAMES FINANCIAL, INC. Non-GAAP Financial Measures
Fiscal Fourth Quarter of 2023
(Unaudited)

Reconciliation of non-GAAP financial measures to GAAP financial measures
(Continued from previous page)
Three months ended Twelve months ended
September 30,
2023
September 30,
2022
June 30,
2023
September 30,
2023
September 30,
2022
Pre-tax margin (7)
19.2  % 21.8  % 16.7  % 19.6  % 18.4  %
Impact of non-GAAP adjustments on pre-tax margin:
Compensation, commissions and benefits:
Acquisition-related retention (9)
0.6  % 0.6  % 0.7  % 0.6  % 0.5  %
Other acquisition-related compensation —  % —  % 0.3  % 0.1  % —  %
Total “Compensation, commissions and benefits” expense 0.6  % 0.6  % 1.0  % 0.7  % 0.5  %
Communications and information processing —  % —  % —  % —  % —  %
Professional fees 0.1  % —  % —  % 0.1  % 0.1  %
Bank loan provision for credit losses — Initial provision for credit losses on acquired loans (11)
—  % —  % —  % —  % 0.2  %
Other:
Amortization of identifiable intangible assets (23)
0.4  % 0.4  % 0.4  % 0.4  % 0.3  %
Initial provision for credit losses on acquired lending commitments (11)
—  % —  % —  % —  % 0.1  %
All other acquisition-related expenses —  % —  % —  % —  % 0.1  %
Total “Other” expense 0.4  % 0.4  % 0.4  % 0.4  % 0.5  %
Total expenses related to acquisitions 1.1  % 1.0  % 1.4  % 1.2  % 1.3  %
Other — Insurance settlement received (12)
—  % —  % —  % (0.3) % —  %
Total non-GAAP adjustments 1.1  % 1.0  % 1.4  % 0.9  % 1.3  %
Adjusted pre-tax margin (1) (7)
20.3  % 22.8  % 18.1  % 20.5  % 19.7  %
Total compensation ratio (8)
62.0  % 62.1  % 63.7  % 62.8  % 66.6  %
Less the impact of non-GAAP adjustments on compensation ratio:
Acquisition-related retention (9)
0.6  % 0.6  % 0.7  % 0.6  % 0.5  %
Other acquisition-related compensation —  % —  % 0.3  % 0.1  % —  %
Total “Compensation, commissions and benefits” expenses related to acquisitions 0.6  % 0.6  % 1.0  % 0.7  % 0.5  %
Adjusted total compensation ratio (1) (8)
61.4  % 61.5  % 62.7  % 62.1  % 66.1  %
Please refer to the footnotes at the end of this press release for additional information.
20

RAYMOND JAMES FINANCIAL, INC. Non-GAAP Financial Measures
Fiscal Fourth Quarter of 2023
(Unaudited)

Reconciliation of non-GAAP financial measures to GAAP financial measures
(Continued from previous page)
Three months ended Twelve months ended
Earnings per common share (5)
September 30,
2023
September 30,
2022
June 30,
2023
September 30,
2023
September 30,
2022
Basic $ 2.07  $ 2.03  $ 1.75  $ 8.16  $ 7.16 
Impact of non-GAAP adjustments on basic earnings per common share:
Compensation, commissions and benefits:
Acquisition-related retention (9)
0.08  0.08  0.09  0.33  0.28 
Other acquisition-related compensation —  —  0.05  0.05  0.01 
Total “Compensation, commissions and benefits” expense 0.08  0.08  0.14  0.38  0.29 
Communications and information processing 0.01  —  —  0.01  — 
Professional fees 0.01  —  —  0.01  0.06 
Bank loan provision for credit losses — Initial provision for credit losses on acquired loans (11)
—  —  —  —  0.12 
Other:
Amortization of identifiable intangible assets (23)
0.06  0.05  0.05  0.21  0.16 
Initial provision for credit losses on acquired lending commitments (11)
—  —  —  —  0.02 
All other acquisition-related expenses —  0.01  —  —  0.05 
Total “Other” expense 0.06  0.06  0.05  0.21  0.23 
Total expenses related to acquisitions 0.16  0.14  0.19  0.61  0.70 
Other — Insurance settlement received (12)
—  —  —  (0.15) — 
Tax effect of non-GAAP adjustments
(0.04) (0.04) (0.05) (0.12) (0.18)
Total non-GAAP adjustments, net of tax 0.12  0.10  0.14  0.34  0.52 
Adjusted basic (1)
$ 2.19  $ 2.13  $ 1.89  $ 8.50  $ 7.68 
Diluted $ 2.02  $ 1.98  $ 1.71  $ 7.97  $ 6.98 
Impact of non-GAAP adjustments on diluted earnings per common share:
Compensation, commissions and benefits:
Acquisition-related retention (9)
0.08  0.08  0.09  0.32  0.27 
Other acquisition-related compensation —  —  0.05  0.05  0.01 
Total “Compensation, commissions and benefits” expense 0.08  0.08  0.14  0.37  0.28 
Communications and information processing 0.01  —  —  0.01  — 
Professional fees 0.01  —  —  0.01  0.06 
Bank loan provision for credit losses — Initial provision for credit losses on acquired loans (11)
—  —  —  —  0.12 
Other:
Amortization of identifiable intangible assets (23)
0.05  0.05  0.05  0.21  0.15 
Initial provision for credit losses on acquired lending commitments (11)
—  —  —  —  0.02 
All other acquisition-related expenses —  0.01  —  —  0.05 
Total “Other” expense 0.05  0.06  0.05  0.21  0.22 
Total expenses related to acquisitions 0.15  0.14  0.19  0.60  0.68 
Other — Insurance settlement received (12)
—  —  —  (0.15) — 
Tax effect of non-GAAP adjustments
(0.04) (0.04) (0.05) (0.12) (0.17)
Total non-GAAP adjustments, net of tax 0.11  0.10  0.14  0.33  0.51 
Adjusted diluted (1)
$ 2.13  $ 2.08  $ 1.85  $ 8.30  $ 7.49 
Please refer to the footnotes at the end of this press release for additional information.
21

RAYMOND JAMES FINANCIAL, INC. Non-GAAP Financial Measures
Fiscal Fourth Quarter of 2023
(Unaudited)

Reconciliation of non-GAAP financial measures to GAAP financial measures
(Continued from previous page)

Book value per share As of
$ in millions, except per share amounts September 30,
2023
September 30,
2022
June 30,
2023
Total common equity attributable to Raymond James Financial, Inc. $ 10,135  $ 9,338  $ 9,870 
Less non-GAAP adjustments:
Goodwill and identifiable intangible assets, net
1,907  1,931  1,928 
Deferred tax liabilities related to goodwill and identifiable intangible assets, net (131) (126) (129)
Tangible common equity attributable to Raymond James Financial, Inc. (1)
$ 8,359  $ 7,533  $ 8,071 
Common shares outstanding 208.8  215.1  208.5 
Book value per share (13)
$ 48.54  $ 43.41  $ 47.34 
Tangible book value per share (1) (13)
$ 40.03  $ 35.02  $ 38.71 

Return on common equity Three months ended Twelve months ended
$ in millions September 30,
2023
September 30,
2022
June 30,
2023
September 30,
2023
September 30,
2022
Average common equity (24)
$ 10,003  $ 9,367  $ 9,873  $ 9,791  $ 8,836 
Impact of non-GAAP adjustments on average common equity:
Compensation, commissions and benefits:
Acquisition-related retention (9)
35  27 
Other acquisition-related compensation —  — 
Total “Compensation, commissions and benefits” expense 13  39  28 
Communications and information processing —  —  — 
Professional fees
Bank loan provision for credit losses — Initial provision for credit losses on acquired loans (11)
—  —  —  —  10 
Other:
Amortization of identifiable intangible assets (23)
22  16 
Initial provision for credit losses on acquired lending commitments (11)
—  —  —  — 
All other acquisition-related expenses —  —  —  — 
Total “Other” expense 22  24 
Total expenses related to acquisitions 18  15  20  63  68 
Other — Insurance settlement received (12)
—  —  —  (26) — 
Tax effect of non-GAAP adjustments
(5) (4) (5) (9) (17)
Total non-GAAP adjustments, net of tax 13  11  15  28  51 
Adjusted average common equity (1) (24)
$ 10,016  $ 9,378  $ 9,888  $ 9,819  $ 8,887 















Please refer to the footnotes at the end of this press release for additional information.
22

RAYMOND JAMES FINANCIAL, INC. Non-GAAP Financial Measures
Fiscal Fourth Quarter of 2023
(Unaudited)



Reconciliation of non-GAAP financial measures to GAAP financial measures
(Continued from previous page)
Three months ended Twelve months ended
$ in millions September 30,
2023
September 30,
2022
June 30,
2023
September 30,
2023
September 30,
2022
Average common equity (24)
$ 10,003  $ 9,367  $ 9,873  $ 9,791  $ 8,836 
Less:
Average goodwill and identifiable intangible assets, net 1,918  1,871  1,930  1,928  1,322 
Average deferred tax liabilities related to goodwill and identifiable intangible assets, net (130) (127) (128) (129) (94)
Average tangible common equity (1) (24)
$ 8,215  $ 7,623  $ 8,071  $ 7,992  $ 7,608 
Impact of non-GAAP adjustments on average tangible common equity:
Compensation, commissions and benefits:
Acquisition-related retention (9)
35  27 
Other acquisition-related compensation —  — 
Total “Compensation, commissions and benefits” expense 13  39  28 
Communications and information processing —  —  — 
Professional fees
Bank loan provision for credit losses — Initial provision for credit losses on acquired loans (11)
—  —  —  —  10 
Other:
Amortization of identifiable intangible assets (23)
22  16 
Initial provision for credit losses on acquired lending commitments (11)
—  —  —  — 
All other acquisition-related expenses —  —  —  — 
Total “Other” expense 22  24 
Total expenses related to acquisitions 18  15  20  63  68 
Other — Insurance settlement received (12)
—  —  —  (26) — 
Tax effect of non-GAAP adjustments
(5) (4) (5) (9) (17)
Total non-GAAP adjustments, net of tax 13  11  15  28  51 
Adjusted average tangible common equity (1) (24)
$ 8,228  $ 7,634  $ 8,086  $ 8,020  $ 7,659 
Return on common equity (6)
17.3  % 18.7  % 14.9  % 17.7  % 17.0  %
Adjusted return on common equity (1) (6)
18.3  % 19.6  % 16.1  % 18.4  % 18.2  %
Return on tangible common equity (1) (6)
21.0  % 22.9  % 18.3  % 21.7  % 19.8  %
Adjusted return on tangible common equity (1) (6)
22.2  % 24.1  % 19.7  % 22.5  % 21.1  %
Please refer to the footnotes at the end of this press release for additional information.
23

RAYMOND JAMES FINANCIAL, INC.                             
Fiscal Fourth Quarter of 2023                                 Footnotes
(1) 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.
(2)
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. The Domestic Private Client Group net new asset growth — annualized percentage is based on the beginning Domestic Private Client Group assets under administration balance for the indicated period.
(3)
These metrics include the impact of the departure of approximately 60 financial advisors and approximately $5 billion of assets under administration, representing the portion of advisors previously associated through a single relationship in the firm’s independent contractors division whose affiliation with the firm ended in the fiscal third quarter of 2023.
(4) Estimated.
(5)
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. The allocations of earnings and dividends to participating securities were $1 million for each of the three months ended September 30, 2023, September 30, 2022, and June 30, 2023, and $5 million and $3 million for the twelve months ended September 30, 2023 and 2022, respectively.
(6) 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. 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.
(7) 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.
(8) Total compensation ratio is computed by dividing compensation, commissions and benefits expense by net revenues for each respective period or, in the case of adjusted total compensation ratio, computed by dividing adjusted compensation, commissions and benefits expense by net revenues for each respective period.
(9)
Includes acquisition-related compensation expenses primarily arising from equity and cash-based retention awards issued in conjunction with acquisitions in prior years. 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.
(10) Results for fiscal 2023 included elevated provisions for legal and regulatory matters, while provisions for legal and regulatory matters did not have a significant impact on our results for the three and twelve months ended September 30, 2022.
(11) Our results for the twelve months ended September 30, 2022 included an initial provision for credit losses on loans and lending commitments acquired as part of our acquisition of TriState Capital Holdings, Inc. amounting to $26 million (included in “Bank loan provision 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.
(12)
The twelve months ended September 30, 2023 included the favorable impact of a $32 million insurance settlement received during the period related to a previously settled legal matter. This item has been reflected as an offset to Other expenses within our Other segment. In the computation of our non-GAAP financial measures, we have reversed the favorable impact of this item on adjusted pre-tax income and adjusted net income available to common shareholders. 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.
(13) 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.
(14)
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. RJBDP balances swept to our Bank segment are reflected in Bank deposits on our Consolidated Statement of Financial Condition and within money market and other savings accounts in our net interest disclosures in this release. Fees earned by the Private Client Group segment on deposits held by our Bank segment are eliminated in consolidation.
(15)
In March 2023, we launched our Enhanced Savings Program, in which Private Client Group clients may deposit cash in a high-yield Raymond James Bank account. These balances are reflected in Bank deposits on our Consolidated Statement of Financial Condition and substantially all are reflected within interest-bearing demand deposits in our net interest disclosures in this release.
(16) 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.
(17) Loans are presented net of unamortized purchase discounts or premiums, unearned income, deferred origination fees and costs, and charge-offs.
(18) Securities-based loans included loans collateralized by the borrower’s marketable securities at advance rates consistent with industry standards and, to a lesser extent, the cash surrender value of life insurance policies. An insignificant portion of our SBL portfolio is collateralized by private securities or other financial instruments with a limited trading market.

24

RAYMOND JAMES FINANCIAL, INC.                             
Fiscal Fourth Quarter of 2023                                 Footnotes
(19) The average rate on tax-exempt loans is presented on a taxable-equivalent basis utilizing the applicable federal statutory rates for each respective period.
(20)
The average balance, interest expense, and average rate for “Total bank deposits” included amounts associated with affiliate deposits. Such amounts are eliminated in consolidation and are offset in “All other interest-bearing liabilities” under “All other segments”.
(21)
The Other segment includes interest income on certain corporate cash balances, the results of our private equity investments, which predominantly consist of investments in third-party funds, certain other corporate investing activity, and certain corporate overhead costs of RJF that are not allocated to other segments including the interest costs on our public debt, certain provisions for legal and regulatory matters, and certain acquisition-related expenses.
(22) Corporate loans included commercial and industrial loans, commercial real estate loans, and real estate investment trust loans.
(23) Amortization of identifiable intangible assets, which was included in “Other” expense, includes amortization of identifiable intangible assets arising from our acquisitions.
(24)
Average common equity for the quarter-to-date period 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 five, 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 five. 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.

25
EX-99.2 3 rjf0930q423supplement.htm EX-99.2 FINANCIAL SUPPLEMENT FOURTH QUARTER AND FISCAL 2023 OF RJF rjf0930q423supplement
5 Quarterly Financial Supplement Fourth quarter and fiscal 2023 results


 
TABLE OF CONTENTS PAGE Consolidated Statements of Income (Unaudited) 3 Consolidated Selected Key Metrics (Unaudited) 4 Segment Results Private Client Group (Unaudited) 6 Capital Markets (Unaudited) 7 Asset Management (Unaudited) 8 Bank (Unaudited) 9 Other (Unaudited) 10 Bank Segment Selected Key Metrics (Unaudited) 11 Reconciliation of non-GAAP financial measures to GAAP financial measures (Unaudited) 12 Footnotes 18 RAYMOND JAMES FINANCIAL, INC.


 
Three months ended % change from Twelve months ended $ in millions, except per share amounts September 30, 2022 December 31, 2022 March 31, 2023 June 30, 2023 September 30, 2023 September 30, 2022 June 30, 2023 September 30, 2022 September 30, 2023 % change Revenues: Asset management and related administrative fees $ 1,290 $ 1,242 $ 1,302 $ 1,373 $ 1,446 12 % 5 % $ 5,563 $ 5,363 (4) % Brokerage revenues: Securities commissions 357 352 369 356 382 7 % 7 % 1,589 1,459 (8) % Principal transactions 124 132 127 105 98 (21) % (7) % 527 462 (12) % Total brokerage revenues 481 484 496 461 480 — % 4 % 2,116 1,921 (9) % Account and service fees 266 289 258 264 314 18 % 19 % 833 1,125 35 % Investment banking 217 141 154 151 202 (7) % 34 % 1,100 648 (41) % Interest income 667 827 915 987 1,019 53 % 3 % 1,508 3,748 149 % Other 80 44 32 57 54 (33) % (5) % 188 187 (1) % Total revenues 3,001 3,027 3,157 3,293 3,515 17 % 7 % 11,308 12,992 15 % Interest expense (170) (241) (284) (386) (462) 172 % 20 % (305) (1,373) 350 % Net revenues 2,831 2,786 2,873 2,907 3,053 8 % 5 % 11,003 11,619 6 % Non-interest expenses: Compensation, commissions and benefits (1) 1,759 1,736 1,820 1,851 1,892 8 % 2 % 7,329 7,299 — % Non-compensation expenses: Communications and information processing 138 139 153 149 158 14 % 6 % 506 599 18 % Occupancy and equipment 66 66 68 68 69 5 % 1 % 252 271 8 % Business development 59 56 54 66 66 12 % — % 186 242 30 % Investment sub-advisory fees 36 34 36 40 41 14 % 3 % 152 151 (1) % Professional fees 38 32 38 35 40 5 % 14 % 131 145 11 % Bank loan provision for credit losses (2) 34 14 28 54 36 6 % (33) % 100 132 32 % Other (2) (3) (4) 85 57 119 158 166 95 % 5 % 325 500 54 % Total non-compensation expenses 456 398 496 570 576 26 % 1 % 1,652 2,040 23 % Total non-interest expenses 2,215 2,134 2,316 2,421 2,468 11 % 2 % 8,981 9,339 4 % Pre-tax income 616 652 557 486 585 (5) % 20 % 2,022 2,280 13 % Provision for income taxes 177 143 130 117 151 (15) % 29 % 513 541 5 % Net income 439 509 427 369 434 (1) % 18 % 1,509 1,739 15 % Preferred stock dividends 2 2 2 — 2 — % NM 4 6 50 % Net income available to common shareholders $ 437 $ 507 $ 425 $ 369 $ 432 (1) % 17 % $ 1,505 $ 1,733 15 % Earnings per common share – basic (5) $ 2.03 $ 2.36 $ 1.97 $ 1.75 $ 2.07 2 % 18 % $ 7.16 $ 8.16 14 % Earnings per common share – diluted (5) $ 1.98 $ 2.30 $ 1.93 $ 1.71 $ 2.02 2 % 18 % $ 6.98 $ 7.97 14 % Weighted-average common shares outstanding – basic 215.0 214.7 214.3 210.1 208.3 (3) % (1) % 209.9 211.8 1 % Weighted-average common and common equivalent shares outstanding – diluted 220.6 220.4 219.2 214.8 213.8 (3) % — % 215.3 216.9 1 % RAYMOND JAMES FINANCIAL, INC. Consolidated Statements of Income (Unaudited) Please refer to the footnotes at the end of this supplement for additional information. 3


 
As of % change from $ in millions, except per share amounts September 30, 2022 December 31, 2022 March 31, 2023 June 30, 2023 September 30, 2023 September 30, 2022 June 30, 2023 Total assets $ 80,951 $ 77,047 $ 79,180 $ 77,633 $ 78,360 (3) % 1 % Total common equity attributable to Raymond James Financial, Inc. $ 9,338 $ 9,736 $ 9,875 $ 9,870 $ 10,135 9 % 3 % Book value per share (6) $ 43.41 $ 45.28 $ 46.67 $ 47.34 $ 48.54 12 % 3 % Tangible book value per share (6) (7) $ 35.02 $ 36.87 $ 38.14 $ 38.71 $ 40.03 14 % 3 % Capital ratios: Tier 1 leverage 10.3 % 11.3 % 11.5 % 11.4 % 11.9 % (8) Tier 1 capital 19.2 % 20.3 % 20.1 % 20.6 % 21.4 % (8) Common equity tier 1 19.0 % 20.0 % 19.9 % 20.4 % 21.2 % (8) Total capital 20.4 % 21.6 % 21.4 % 22.0 % 22.8 % (8) Three months ended % change from Twelve months ended $ in millions September 30, 2022 December 31, 2022 March 31, 2023 June 30, 2023 September 30, 2023 September 30, 2022 June 30, 2023 September 30, 2022 September 30, 2023 % change Adjusted pre-tax income (7) $ 646 $ 649 $ 585 $ 526 $ 619 (4) % 18 % $ 2,169 $ 2,378 10 % Adjusted net income available to common shareholders (7) $ 459 $ 505 $ 446 $ 399 $ 457 — % 15 % $ 1,615 $ 1,806 12 % Adjusted earnings per common share – basic (5) (7) $ 2.13 $ 2.35 $ 2.07 $ 1.89 $ 2.19 3 % 16 % $ 7.68 $ 8.50 11 % Adjusted earnings per common share – diluted (5) (7) $ 2.08 $ 2.29 $ 2.03 $ 1.85 $ 2.13 2 % 15 % $ 7.49 $ 8.30 11 % Return on common equity (9) 18.7 % 21.3 % 17.3 % 14.9 % 17.3 % 17.0 % 17.7 % Adjusted return on common equity (7) (9) 19.6 % 21.2 % 18.2 % 16.1 % 18.3 % 18.2 % 18.4 % Adjusted return on tangible common equity (7) (9) 24.1 % 26.1 % 22.3 % 19.7 % 22.2 % 21.1 % 22.5 % Pre-tax margin (10) 21.8 % 23.4 % 19.4 % 16.7 % 19.2 % 18.4 % 19.6 % Adjusted pre-tax margin (7) (10) 22.8 % 23.3 % 20.4 % 18.1 % 20.3 % 19.7 % 20.5 % Total compensation ratio (11) 62.1 % 62.3 % 63.3 % 63.7 % 62.0 % 66.6 % 62.8 % Adjusted total compensation ratio (7) (11) 61.5 % 61.7 % 62.8 % 62.7 % 61.4 % 66.1 % 62.1 % Effective tax rate 28.7 % 21.9 % 23.3 % 24.1 % 25.8 % 25.4 % 23.7 % RAYMOND JAMES FINANCIAL, INC. Consolidated Selected Key Metrics (Unaudited) Please refer to the footnotes at the end of this supplement for additional information. 4


 
As of % change from September 30, 2022 December 31, 2022 March 31, 2023 June 30, 2023 September 30, 2023 September 30, 2022 June 30, 2023 Client asset metrics ($ in billions): Client assets under administration $ 1,093.1 $ 1,169.7 $ 1,224.4 $ 1,280.9 $ 1,256.5 15 % (2) % Private Client Group assets under administration $ 1,039.0 $ 1,114.3 $ 1,171.1 $ 1,227.0 $ 1,201.2 16 % (2) % Private Client Group assets in fee-based accounts $ 586.0 $ 633.1 $ 666.3 $ 697.0 $ 683.2 17 % (2) % Financial assets under management $ 173.8 $ 185.9 $ 194.4 $ 200.7 $ 196.4 13 % (2) % Net new assets metrics (12) ($ in millions) Three months ended Twelve months ended September 30, 2022 December 31, 2022 March 31, 2023 June 30, 2023 September 30, 2023 September 30, 2022 September 30, 2023 Domestic Private Client Group net new assets (13) $ 20,184 $ 23,226 $ 21,473 $ 14,386 $ 14,169 $ 95,041 $ 73,254 Domestic Private Client Group net new assets growth — annualized (13) 8.3 % 9.8 % 8.4 % 5.4 % 5.0 % 8.5 % 7.7 % Clients' domestic cash sweep and Enhanced Savings Program balances ($ in millions) As of % change from September 30, 2022 December 31, 2022 March 31, 2023 June 30, 2023 September 30, 2023 September 30, 2022 June 30, 2023 Raymond James Bank Deposit Program (“RJBDP”): (14) Bank segment (14) $ 38,705 $ 39,098 $ 37,682 $ 27,915 $ 25,355 (34) % (9) % Third-party banks 21,964 18,231 9,408 16,923 15,858 (28) % (6) % Subtotal RJBDP 60,669 57,329 47,090 44,838 41,213 (32) % (8) % Client Interest Program 6,445 3,053 2,385 1,915 1,620 (75) % (15) % Total clients’ domestic cash sweep balances 67,114 60,382 49,475 46,753 42,833 (36) % (8) % Enhanced Savings Program (15) — — 2,746 11,225 13,592 NM 21 % Total clients’ domestic cash sweep and Enhanced Savings Program balances $ 67,114 $ 60,382 $ 52,221 $ 57,978 $ 56,425 (16) % (3) % Three months ended Twelve months ended September 30, 2022 December 31, 2022 March 31, 2023 June 30, 2023 September 30, 2023 September 30, 2022 September 30, 2023 Average yield on RJBDP - third-party banks (16) 1.85 % 2.72 % 3.25 % 3.37 % 3.60 % 0.82 % 3.20 % As of % change from September 30, 2022 December 31, 2022 March 31, 2023 June 30, 2023 September 30, 2023 September 30, 2022 June 30, 2023 Private Client Group financial advisors: Employees 3,638 3,631 3,628 3,654 3,693 2 % 1 % Independent contractors (13) 5,043 5,068 5,098 5,050 5,019 — % (1) % Total advisors (13) 8,681 8,699 8,726 8,704 8,712 — % — % RAYMOND JAMES FINANCIAL, INC. Consolidated Selected Key Metrics (Unaudited) Please refer to the footnotes at the end of this supplement for additional information. 5


 
Three months ended % change from Twelve months ended $ in millions September 30, 2022 December 31, 2022 March 31, 2023 June 30, 2023 September 30, 2023 September 30, 2022 June 30, 2023 September 30, 2022 September 30, 2023 % change Revenues: Asset management and related administrative fees $ 1,089 $ 1,053 $ 1,102 $ 1,164 $ 1,226 13 % 5 % $ 4,710 $ 4,545 (4) % Brokerage revenues: Mutual and other fund products 134 128 135 135 142 6 % 5 % 620 540 (13) % Insurance and annuity products 108 104 113 103 119 10 % 16 % 438 439 — % Equities, ETFs, and fixed income products 107 113 116 111 115 7 % 4 % 458 455 (1) % Total brokerage revenues 349 345 364 349 376 8 % 8 % 1,516 1,434 (5) % Account and service fees: Mutual fund and annuity service fees 103 98 105 103 109 6 % 6 % 428 415 (3) % RJBDP fees: (14) Bank segment (14) 179 268 311 277 237 32 % (14) % 357 1,093 206 % Third-party banks 109 137 100 107 154 41 % 44 % 202 498 147 % Client account and other fees 59 60 56 59 56 (5) % (5) % 220 231 5 % Total account and service fees 450 563 572 546 556 24 % 2 % 1,207 2,237 85 % Investment banking 10 9 9 9 8 (20) % (11) % 38 35 (8) % Interest income 111 109 117 114 115 4 % 1 % 249 455 83 % All other 8 6 9 25 8 — % (68) % 32 48 50 % Total revenues 2,017 2,085 2,173 2,207 2,289 13 % 4 % 7,752 8,754 13 % Interest expense (26) (22) (29) (25) (24) (8) % (4) % (42) (100) 138 % Net revenues 1,991 2,063 2,144 2,182 2,265 14 % 4 % 7,710 8,654 12 % Non-interest expenses: Financial advisor compensation and benefits 1,091 1,075 1,118 1,151 1,193 9 % 4 % 4,696 4,537 (3) % Administrative compensation and benefits 321 342 345 355 348 8 % (2) % 1,199 1,390 16 % Total compensation, commissions and benefits 1,412 1,417 1,463 1,506 1,541 9 % 2 % 5,895 5,927 1 % Non-compensation expenses 208 212 240 265 247 19 % (7) % 785 964 23 % Total non-interest expenses 1,620 1,629 1,703 1,771 1,788 10 % 1 % 6,680 6,891 3 % Pre-tax income $ 371 $ 434 $ 441 $ 411 $ 477 29 % 16 % $ 1,030 $ 1,763 71 % RAYMOND JAMES FINANCIAL, INC. Segment Results - Private Client Group (Unaudited) Please refer to the footnotes at the end of this supplement for additional information. 6


 
Three months ended % change from Twelve months ended $ in millions September 30, 2022 December 31, 2022 March 31, 2023 June 30, 2023 September 30, 2023 September 30, 2022 June 30, 2023 September 30, 2022 September 30, 2023 % change Revenues: Brokerage revenues: Fixed income $ 96 $ 100 $ 96 $ 78 $ 71 (26) % (9) % $ 448 $ 345 (23) % Equity 30 34 34 32 30 — % (6) % 142 130 (8) % Total brokerage revenues 126 134 130 110 101 (20) % (8) % 590 475 (19) % Investment banking: Merger & acquisition and advisory 152 102 87 88 141 (7) % 60 % 709 418 (41) % Equity underwriting 25 15 29 25 16 (36) % (36) % 210 85 (60) % Debt underwriting 30 16 29 28 37 23 % 32 % 143 110 (23) % Total investment banking 207 133 145 141 194 (6) % 38 % 1,062 613 (42) % Interest income 20 23 21 21 23 15 % 10 % 36 88 144 % Affordable housing investments business revenues 56 24 23 21 41 (27) % 95 % 127 109 (14) % All other 9 4 3 4 3 (67) % (25) % 21 14 (33) % Total revenues 418 318 322 297 362 (13) % 22 % 1,836 1,299 (29) % Interest expense (19) (23) (20) (21) (21) 11 % — % (27) (85) 215 % Net revenues 399 295 302 276 341 (15) % 24 % 1,809 1,214 (33) % Non-interest expenses: Compensation, commissions and benefits 238 213 231 220 238 — % 8 % 1,065 902 (15) % Non-compensation expenses 95 98 105 90 110 16 % 22 % 329 403 22 % Total non-interest expenses 333 311 336 310 348 5 % 12 % 1,394 1,305 (6) % Pre-tax income/(loss) $ 66 $ (16) $ (34) $ (34) $ (7) NM 79 % $ 415 $ (91) NM RAYMOND JAMES FINANCIAL, INC. Segment Results - Capital Markets (Unaudited) Please refer to the footnotes at the end of this supplement for additional information. 7


 
Three months ended % change from Twelve months ended $ in millions September 30, 2022 December 31, 2022 March 31, 2023 June 30, 2023 September 30, 2023 September 30, 2022 June 30, 2023 September 30, 2022 September 30, 2023 % change Revenues: Asset management and related administrative fees: Managed programs $ 140 $ 134 $ 140 $ 146 $ 153 9 % 5 % $ 585 $ 573 (2) % Administration and other 69 63 66 71 73 6 % 3 % 297 273 (8) % Total asset management and related administrative fees 209 197 206 217 226 8 % 4 % 882 846 (4) % Account and service fees 5 5 6 5 5 — % — % 22 21 (5) % All other 2 5 4 4 5 150 % 25 % 10 18 80 % Net revenues 216 207 216 226 236 9 % 4 % 914 885 (3) % Non-interest expenses: Compensation, commissions and benefits 52 47 52 51 48 (8) % (6) % 194 198 2 % Non-compensation expenses 81 80 82 86 88 9 % 2 % 334 336 1 % Total non-interest expenses 133 127 134 137 136 2 % (1) % 528 534 1 % Pre-tax income $ 83 $ 80 $ 82 $ 89 $ 100 20 % 12 % $ 386 $ 351 (9) % RAYMOND JAMES FINANCIAL, INC. Segment Results - Asset Management (Unaudited) Please refer to the footnotes at the end of this supplement for additional information. 8


 
Three months ended % change from Twelve months ended $ in millions September 30, 2022 December 31, 2022 March 31, 2023 June 30, 2023 September 30, 2023 September 30, 2022 June 30, 2023 September 30, 2022 September 30, 2023 % change Revenues: Interest income $ 527 $ 676 $ 749 $ 826 $ 847 61 % 3 % $ 1,209 $ 3,098 156 % Interest expense (110) (185) (219) (329) (408) 271 % 24 % (156) (1,141) 631 % Net interest income 417 491 530 497 439 5 % (12) % 1,053 1,957 86 % All other 11 17 10 17 12 9 % (29) % 31 56 81 % Net revenues 428 508 540 514 451 5 % (12) % 1,084 2,013 86 % Non-interest expenses: Compensation and benefits 36 40 48 48 41 14 % (15) % 84 177 111 % Non-compensation expenses: Bank loan provision for credit losses 34 14 28 54 36 6 % (33) % 100 132 32 % RJBDP fees to Private Client Group (14) 179 268 311 277 237 32 % (14) % 357 1,093 206 % All other 56 50 62 69 59 5 % (14) % 161 240 49 % Total non-compensation expenses 269 332 401 400 332 23 % (17) % 618 1,465 137 % Total non-interest expenses 305 372 449 448 373 22 % (17) % 702 1,642 134 % Pre-tax income $ 123 $ 136 $ 91 $ 66 $ 78 (37) % 18 % $ 382 $ 371 (3) % RAYMOND JAMES FINANCIAL, INC. Segment Results - Bank (Unaudited) Please refer to the footnotes at the end of this supplement for additional information. 9


 
Three months ended % change from Twelve months ended $ in millions September 30, 2022 December 31, 2022 March 31, 2023 June 30, 2023 September 30, 2023 September 30, 2022 June 30, 2023 September 30, 2022 September 30, 2023 % change Revenues: Interest income $ 15 $ 30 $ 36 $ 37 $ 44 193 % 19 % $ 25 $ 147 488 % Net gains/(losses) on private equity investments 9 2 1 2 1 (89) % (50) % 9 6 (33) % All other 2 1 — — 2 — % NM 9 3 (67) % Total revenues 26 33 37 39 47 81 % 21 % 43 156 263 % Interest expense (22) (24) (27) (24) (22) — % (8) % (93) (97) 4 % Net revenues 4 9 10 15 25 525 % 67 % (50) 59 NM Non-interest expenses: Compensation and benefits 20 18 26 27 24 20 % (11) % 90 95 6 % Insurance settlement received (3) — (32) — — — — % — % — (32) NM All other 11 5 7 34 64 482 % 88 % 51 110 116 % Total non-interest expenses 31 (9) 33 61 88 184 % 44 % 141 173 23 % Pre-tax income/(loss) $ (27) $ 18 $ (23) $ (46) $ (63) (133) % (37) % $ (191) $ (114) 40 % RAYMOND JAMES FINANCIAL, INC. Segment Results - Other (17) (Unaudited) Please refer to the footnotes at the end of this supplement for additional information. 10


 
Our Bank segment includes Raymond James Bank and TriState Capital Bank. Bank Segment As of % change from $ in millions September 30, 2022 December 31, 2022 March 31, 2023 June 30, 2023 September 30, 2023 September 30, 2022 June 30, 2023 Total assets $ 56,737 $ 57,623 $ 60,400 $ 59,506 $ 60,041 6 % 1 % Bank loans, net: Raymond James Bank $ 31,109 $ 31,690 $ 31,425 $ 30,834 $ 30,906 (1) % — % TriState Capital Bank 12,130 12,376 12,258 12,511 12,869 6 % 3 % Total bank loans, net $ 43,239 $ 44,066 $ 43,683 $ 43,345 $ 43,775 1 % 1 % Bank loan allowance for credit losses $ 396 $ 408 $ 415 $ 456 $ 474 20 % 4 % Bank loan allowance for credit losses as a % of total loans held for investment 0.91 % 0.92 % 0.94 % 1.04 % 1.07 % Bank loan allowance for credit losses on corporate loans as a % of corporate loans held for investment (18) 1.73 % 1.64 % 1.67 % 1.90 % 2.03 % Total nonperforming assets $ 74 $ 61 $ 99 $ 127 $ 128 73 % 1 % Nonperforming assets as a % of total assets 0.13 % 0.11 % 0.16 % 0.21 % 0.21 % Total criticized loans $ 496 $ 447 $ 403 $ 411 $ 518 4 % 26 % Criticized loans as a % of loans held for investment 1.14 % 1.01 % 0.92 % 0.94 % 1.17 % Total bank deposits $ 51,357 $ 51,979 $ 54,229 $ 53,768 $ 54,199 6 % 1 % As of % change from $ in millions September 30, 2022 December 31, 2022 March 31, 2023 June 30, 2023 September 30, 2023 September 30, 2022 June 30, 2023 Securities-based loans (19) $ 15,297 $ 14,885 $ 14,227 $ 14,227 $ 14,606 (5) % 3 % Commercial and industrial loans 11,173 11,405 11,259 10,663 10,406 (7) % (2) % Commercial real estate loans 6,549 6,929 7,054 7,091 7,221 10 % 2 % Real estate investment trust loans 1,592 1,680 1,717 1,715 1,668 5 % (3) % Residential mortgage loans 7,386 7,818 8,079 8,422 8,662 17 % 3 % Tax-exempt loans 1,501 1,667 1,643 1,548 1,541 3 % — % Total loans held for investment 43,498 44,384 43,979 43,666 44,104 1 % 1 % Held for sale loans 137 90 119 135 145 6 % 7 % Total loans held for sale and investment 43,635 44,474 44,098 43,801 44,249 1 % 1 % Allowance for credit losses (396) (408) (415) (456) (474) 20 % 4 % Bank loans, net $ 43,239 $ 44,066 $ 43,683 $ 43,345 $ 43,775 1 % 1 % Three months ended % change from Twelve months ended $ in millions September 30, 2022 December 31, 2022 March 31, 2023 June 30, 2023 September 30, 2023 September 30, 2022 June 30, 2023 September 30, 2022 September 30, 2023 % change Bank loan provision for credit losses $ 34 $ 14 $ 28 $ 54 $ 36 6 % (33) % $ 100 $ 132 32 % Net charge-offs $ 14 $ 2 $ 20 $ 15 $ 17 21 % 13 % $ 26 $ 54 108 % Net interest margin (net yield on interest-earning assets) 2.91 % 3.36 % 3.63 % 3.26 % 2.87 % 2.39 % 3.28 % RAYMOND JAMES FINANCIAL, INC. Bank Segment Selected Key Metrics (Unaudited) Please refer to the footnotes at the end of this supplement for additional information. 11


 
Reconciliation of non-GAAP financial measures to GAAP financial measures (Unaudited) We utilize certain non-GAAP financial measures as additional measures to aid in, and enhance, the understanding of our financial results and related measures. These non-GAAP financial measures have been separately identified in this document. We believe a certain of these non-GAAP financial measures provide useful information to management and investors by excluding certain material items that may not be indicative of our core operating results. We utilize these non-GAAP financial measures in assessing the financial performance of the business, as they facilitate a comparison of current- and prior-period results. We believe that return on tangible common equity and tangible book value per share are meaningful to investors as they facilitate comparisons of our results to the results of other companies. In the following tables, the tax effect of non-GAAP adjustments reflects the statutory rate associated with each non-GAAP item. These non-GAAP financial measures should be considered in addition to, and not as a substitute for, measures of financial performance prepared in accordance with GAAP. In addition, our non-GAAP financial measures may not be comparable to similarly titled non-GAAP financial measures of other companies. The following tables provide a reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures for those periods which include non-GAAP adjustments. Three months ended Twelve months ended $ in millions September 30, 2022 December 31, 2022 March 31, 2023 June 30, 2023 September 30, 2023 September 30, 2022 September 30, 2023 Net income available to common shareholders $ 437 $ 507 $ 425 $ 369 $ 432 $ 1,505 $ 1,733 Non-GAAP adjustments: Expenses directly related to acquisitions included in the following financial statement line items: Compensation, commissions and benefits: Acquisition-related retention (1) 17 18 17 18 17 58 70 Other acquisition-related compensation — — — 10 — 2 10 Total “Compensation, commissions and benefits” expense 17 18 17 28 17 60 80 Communication and information processing — — — — 2 — 2 Professional fees 1 — — 1 3 12 3 Bank loan provision for credit losses — Initial provision for credit losses on acquired loans (2) — — — — — 26 — Other: Amortization of identifiable intangible assets (20) 11 11 11 11 12 33 45 Initial provision for credit losses on acquired lending commitments (2) — — — — — 5 — All other acquisition-related expenses 1 — — — — 11 — Total “Other” expense 12 11 11 11 12 49 45 Total expenses related to acquisitions 30 29 28 40 34 147 130 Other — Insurance settlement received (3) — (32) — — — — (32) Pre-tax impact of non-GAAP adjustments 30 (3) 28 40 34 147 98 Tax effect of non-GAAP adjustments (8) 1 (7) (10) (9) (37) (25) Total non-GAAP adjustments, net of tax 22 (2) 21 30 25 110 73 Adjusted net income available to common shareholders (7) $ 459 $ 505 $ 446 $ 399 $ 457 $ 1,615 $ 1,806 Pre-tax income $ 616 $ 652 $ 557 $ 486 $ 585 $ 2,022 $ 2,280 Pre-tax impact of non-GAAP adjustments (as detailed above) 30 (3) 28 40 34 147 98 Adjusted pre-tax income (7) $ 646 $ 649 $ 585 $ 526 $ 619 $ 2,169 $ 2,378 Compensation, commissions and benefits expense $ 1,759 $ 1,736 $ 1,820 $ 1,851 $ 1,892 $ 7,329 $ 7,299 Less: Total compensation-related acquisition expenses (as detailed above) 17 18 17 28 17 60 80 Adjusted “Compensation, commissions and benefits” expense (7) $ 1,742 $ 1,718 $ 1,803 $ 1,823 $ 1,875 $ 7,269 $ 7,219 RAYMOND JAMES FINANCIAL, INC. Please refer to the footnotes at the end of this supplement for additional information. 12


 
Reconciliation of non-GAAP financial measures to GAAP financial measures (Unaudited) (Continued from previous page) Three months ended Twelve months ended September 30, 2022 December 31, 2022 March 31, 2023 June 30, 2023 September 30, 2023 September 30, 2022 September 30, 2023 Pre-tax margin (10) 21.8 % 23.4 % 19.4 % 16.7 % 19.2 % 18.4 % 19.6 % Impact of non-GAAP adjustments on pre-tax margin: Compensation, commissions and benefits: Acquisition-related retention (1) 0.6 % 0.6 % 0.5 % 0.7 % 0.6 % 0.5 % 0.6 % Other acquisition-related compensation — % — % — % 0.3 % — % — % 0.1 % Total “Compensation, commissions and benefits” expense 0.6 % 0.6 % 0.5 % 1.0 % 0.6 % 0.5 % 0.7 % Communications and information processing — % — % — % — % — % — % — % Professional fees — % — % — % — % 0.1 % 0.1 % 0.1 % Bank loan provision for credit losses — Initial provision for credit losses on acquired loans (2) — % — % — % — % — % 0.2 % — % Other: Amortization of identifiable intangible assets (20) 0.4 % 0.4 % 0.5 % 0.4 % 0.4 % 0.3 % 0.4 % Initial provision for credit losses on acquired lending commitments (2) — % — % — % — % — % 0.1 % — % All other acquisition-related expenses — % — % — % — % — % 0.1 % — % Total “Other” expense 0.4 % 0.4 % 0.5 % 0.4 % 0.4 % 0.5 % 0.4 % Total expenses related to acquisitions 1.0 % 1.0 % 1.0 % 1.4 % 1.1 % 1.3 % 1.2 % Other — Insurance settlement received (3) — % (1.1) % — % — % — % — % (0.3) % Total non-GAAP adjustments 1.0 % (0.1) % 1.0 % 1.4 % 1.1 % 1.3 % 0.9 % Adjusted pre-tax margin (7) (10) 22.8 % 23.3 % 20.4 % 18.1 % 20.3 % 19.7 % 20.5 % Total compensation ratio (11) 62.1 % 62.3 % 63.3 % 63.7 % 62.0 % 66.6 % 62.8 % Less the impact of non-GAAP adjustments on compensation ratio: Acquisition-related retention (1) 0.6 % 0.6 % 0.5 % 0.7 % 0.6 % 0.5 % 0.6 % Other acquisition-related compensation — % — % — % 0.3 % — % — % 0.1 % Total “Compensation, commissions and benefits” expenses related to acquisitions 0.6 % 0.6 % 0.5 % 1.0 % 0.6 % 0.5 % 0.7 % Adjusted total compensation ratio (7) (11) 61.5 % 61.7 % 62.8 % 62.7 % 61.4 % 66.1 % 62.1 % RAYMOND JAMES FINANCIAL, INC. Please refer to the footnotes at the end of this supplement for additional information. 13


 
Reconciliation of non-GAAP financial measures to GAAP financial measures (Unaudited) (Continued from previous page) Three months ended Twelve months ended Earnings per common share (5) September 30, 2022 December 31, 2022 March 31, 2023 June 30, 2023 September 30, 2023 September 30, 2022 September 30, 2023 Basic $ 2.03 $ 2.36 $ 1.97 $ 1.75 $ 2.07 $ 7.16 $ 8.16 Impact of non-GAAP adjustments on basic earnings per common share: Compensation, commissions and benefits: Acquisition-related retention (1) 0.08 0.08 0.08 0.09 0.08 0.28 0.33 Other acquisition-related compensation — — — 0.05 — 0.01 0.05 Total “Compensation, commissions and benefits” expense 0.08 0.08 0.08 0.14 0.08 0.29 0.38 Communication and information processing — — — — 0.01 — 0.01 Professional fees — — — — 0.01 0.06 0.01 Bank loan provision for credit losses — Initial provision for credit losses on acquired loans (2) — — — — — 0.12 — Other: Amortization of identifiable intangible assets (20) 0.05 0.06 0.05 0.05 0.06 0.16 0.21 Initial provision for credit losses on acquired lending commitments (2) — — — — — 0.02 — All other acquisition-related expenses 0.01 — — — — 0.05 — Total “Other” expense 0.06 0.06 0.05 0.05 0.06 0.23 0.21 Total expenses related to acquisitions 0.14 0.14 0.13 0.19 0.16 0.70 0.61 Other — Insurance settlement received (3) — (0.15) — — — — (0.15) Tax effect of non-GAAP adjustments (0.04) — (0.03) (0.05) (0.04) (0.18) (0.12) Total non-GAAP adjustments, net of tax 0.10 (0.01) 0.10 0.14 0.12 0.52 0.34 Adjusted basic (7) $ 2.13 $ 2.35 $ 2.07 $ 1.89 $ 2.19 $ 7.68 $ 8.50 RAYMOND JAMES FINANCIAL, INC. Please refer to the footnotes at the end of this supplement for additional information. 14


 
Reconciliation of non-GAAP financial measures to GAAP financial measures (Unaudited) (Continued from previous page) Three months ended Twelve months ended Earnings per common share (5) September 30, 2022 December 31, 2022 March 31, 2023 June 30, 2023 September 30, 2023 September 30, 2022 September 30, 2023 Diluted $ 1.98 $ 2.30 $ 1.93 $ 1.71 $ 2.02 $ 6.98 $ 7.97 Impact of non-GAAP adjustments on diluted earnings per common share: Compensation, commissions and benefits: Compensation, commissions and benefits — Acquisition-related retention (1) 0.08 0.08 0.08 0.09 0.08 0.27 0.32 Other acquisition-related compensation — — — 0.05 — 0.01 0.05 Total “Compensation, commissions and benefits” expense 0.08 0.08 0.08 0.14 0.08 0.28 0.37 Communications and information processing — — — — 0.01 — 0.01 Professional fees — — — — 0.01 0.06 0.01 Bank loan provision for credit losses — Initial provision for credit losses on acquired loans (2) — — — — — 0.12 — Other: Amortization of identifiable intangible assets (20) 0.05 0.06 0.05 0.05 0.05 0.15 0.21 Initial provision for credit losses on acquired lending commitments (2) — — — — — 0.02 — All other acquisition-related expenses 0.01 — — — — 0.05 — Total “Other” expense 0.06 0.06 0.05 0.05 0.05 0.22 0.21 Total expenses related to acquisitions 0.14 0.14 0.13 0.19 0.15 0.68 0.60 Other — Insurance settlement received (3) — (0.15) — — — — (0.15) Tax effect of non-GAAP adjustments (0.04) — (0.03) (0.05) (0.04) (0.17) (0.12) Total non-GAAP adjustments, net of tax 0.10 (0.01) 0.10 0.14 0.11 0.51 0.33 Adjusted diluted (7) $ 2.08 $ 2.29 $ 2.03 $ 1.85 $ 2.13 $ 7.49 $ 8.30 Book value per share As of $ in millions, except per share amounts September 30, 2022 December 31, 2022 March 31, 2023 June 30, 2023 September 30, 2023 Total common equity attributable to Raymond James Financial, Inc. $ 9,338 $ 9,736 $ 9,875 $ 9,870 $ 10,135 Less non-GAAP adjustments: Goodwill and identifiable intangible assets, net 1,931 1,938 1,932 1,928 1,907 Deferred tax liabilities related to goodwill and identifiable intangible assets, net (126) (129) (128) (129) (131) Tangible common equity attributable to Raymond James Financial, Inc. (7) $ 7,533 $ 7,927 $ 8,071 $ 8,071 $ 8,359 Common shares outstanding 215.1 215.0 211.6 208.5 208.8 Book value per share (6) $ 43.41 $ 45.28 $ 46.67 $ 47.34 $ 48.54 Tangible book value per share (6) (7) $ 35.02 $ 36.87 $ 38.14 $ 38.71 $ 40.03 RAYMOND JAMES FINANCIAL, INC. Please refer to the footnotes at the end of this supplement for additional information. 15


 
Reconciliation of non-GAAP financial measures to GAAP financial measures (Unaudited) (Continued from previous page) Return on common equity Three months ended Twelve months ended $ in millions September 30, 2022 December 31, 2022 March 31, 2023 June 30, 2023 September 30, 2023 September 30, 2022 September 30, 2023 Average common equity (21) $ 9,367 $ 9,537 $ 9,806 $ 9,873 $ 10,003 $ 8,836 $ 9,791 Impact of non-GAAP adjustments on average common equity: Compensation, commissions and benefits: Acquisition-related retention (1) 9 9 9 9 9 27 35 Other acquisition-related compensation — — — 4 — 1 4 Total “Compensation, commissions and benefits” expense 9 9 9 13 9 28 39 Communications and information processing — — — — 1 — 1 Professional fees 1 — — 1 2 6 1 Bank loan provision for credit losses — Initial provision for credit losses on acquired loans (2) — — — — — 10 — Other: Amortization of identifiable intangible assets (20) 5 5 6 6 6 16 22 Initial provision for credit losses on acquired lending commitments (2) — — — — — 2 — All other acquisition-related expenses — — — — — 6 — Total “Other” expense 5 5 6 6 6 24 22 Total expenses related to acquisitions 15 14 15 20 18 68 63 Other — Insurance settlement received (3) — (16) — — — — (26) Tax effect of non-GAAP adjustments (4) 1 (4) (5) (5) (17) (9) Total non-GAAP adjustments, net of tax 11 (1) 11 15 13 51 28 Adjusted average common equity (7) (21) $ 9,378 $ 9,536 $ 9,817 $ 9,888 $ 10,016 $ 8,887 $ 9,819 RAYMOND JAMES FINANCIAL, INC. Please refer to the footnotes at the end of this supplement for additional information. 16


 
Reconciliation of non-GAAP financial measures to GAAP financial measures (Unaudited) (Continued from previous page) Return on tangible common equity Three months ended Twelve months ended $ in millions September 30, 2022 December 31, 2022 March 31, 2023 June 30, 2023 September 30, 2023 September 30, 2022 September 30, 2023 Average common equity (21) $ 9,367 $ 9,537 $ 9,806 $ 9,873 $ 10,003 $ 8,836 $ 9,791 Less: Average goodwill and identifiable intangible assets, net 1,871 1,935 1,936 1,930 1,918 1,322 1,928 Average deferred tax liabilities related to goodwill and identifiable intangible assets, net (127) (128) (129) (128) (130) (94) (129) Average tangible common equity (7) (21) $ 7,623 $ 7,730 $ 7,999 $ 8,071 $ 8,215 $ 7,608 $ 7,992 Impact of non-GAAP adjustments on average tangible common equity: Compensation, commissions and benefits: Acquisition-related retention (1) 9 9 9 9 9 27 35 Other acquisition-related compensation — — — 4 — 1 4 Total “Compensation, commissions and benefits” expense 9 9 9 13 9 28 39 Communications and information processing — — — — 1 — 1 Professional fees 1 — — 1 2 6 1 Bank loan provision for credit losses — Initial provision for credit losses on acquired loans (2) — — — — — 10 — Other: Amortization of identifiable intangible assets (20) 5 5 6 6 6 16 22 Initial provision for credit losses on acquired lending commitments (2) — — — — — 2 — All other acquisition-related expenses — — — — — 6 — Total “Other” expense 5 5 6 6 6 24 22 Total expenses related to acquisitions 15 14 15 20 18 68 63 Other — Insurance settlement received (3) — (16) — — — — (26) Tax effect of non-GAAP adjustments (4) 1 (4) (5) (5) (17) (9) Total non-GAAP adjustments, net of tax 11 (1) 11 15 13 51 28 Adjusted average tangible common equity (7) (21) $ 7,634 $ 7,729 $ 8,010 $ 8,086 $ 8,228 $ 7,659 $ 8,020 Return on common equity (9) 18.7 % 21.3 % 17.3 % 14.9 % 17.3 % 17.0 % 17.7 % Adjusted return on common equity (7) (9) 19.6 % 21.2 % 18.2 % 16.1 % 18.3 % 18.2 % 18.4 % Return on tangible common equity (7) (9) 22.9 % 26.2 % 21.3 % 18.3 % 21.0 % 19.8 % 21.7 % Adjusted return on tangible common equity (7) (9) 24.1 % 26.1 % 22.3 % 19.7 % 22.2 % 21.1 % 22.5 % RAYMOND JAMES FINANCIAL, INC. Please refer to the footnotes at the end of this supplement for additional information. 17


 
Footnotes (1) Includes acquisition-related compensation expenses primarily arising from equity and cash-based retention awards issued in conjunction with acquisitions in prior years. 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. (2) Our results for the twelve months ended September 30, 2022 included an initial provision for credit losses on loans and lending commitments acquired as part of our acquisition of TriState Capital Holdings, Inc. amounting to $26 million (included in “Bank loan provision 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. (3) The three months ended December 31, 2022 and twelve months ended September 30, 2023 included the favorable impact of a $32 million insurance settlement received during the period related to a previously settled legal matter. This item has been reflected as an offset to Other expenses within our Other segment. In the computation of our non-GAAP financial measures, we have reversed the favorable impact of this item on adjusted pre-tax income and adjusted net income available to common shareholders. 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. (4) Results for fiscal 2023 included elevated provisions for legal and regulatory matters, while provisions for legal and regulatory matters did not have a significant impact on our results for the three and twelve months ended September 30, 2022. (5) 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. The allocations of earnings and dividends to participating securities were $1 million for each of the three months ended September 30, 2022, December 31, 2022, June 30, 2023, and September 30, 2023, $2 million for the three months ended March 31, 2023, $3 million for the twelve months ended September 30, 2022, and $5 million for the twelve months ended September 30, 2023. (6) 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. (7) 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. (8) Estimated. (9) 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. 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. (10) 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. (11) Total compensation ratio is computed by dividing compensation, commissions and benefits expense by net revenues for each respective period or, in the case of adjusted total compensation ratio, computed by dividing adjusted compensation, commissions and benefits expense by net revenues for each respective period. (12) 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. The Domestic Private Client Group net new asset growth — annualized percentage is based on the beginning Domestic Private Client Group assets under administration balance for the indicated period. (13) These metrics include the impact of the departure of approximately 60 financial advisors and approximately $5 billion of assets under administration, representing the portion of advisors previously associated through a single relationship in the firm’s independent contractors division whose affiliation with the firm ended in the fiscal third quarter of 2023. (14) 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. RJBDP balances swept to our Bank segment are reflected in Bank deposits on our Consolidated Statement of Financial Condition. Fees earned by the Private Client Group segment on deposits held by our Bank segment are eliminated in consolidation. (15) In March 2023, we launched our Enhanced Savings Program, in which Private Client Group clients may deposit cash in a high-yield Raymond James Bank account. These balances are reflected in Bank deposits on our Consolidated Statement of Financial Condition. (16) 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. (17) The Other segment includes interest income on certain corporate cash balances, the results of our private equity investments, which predominantly consist of investments in third-party funds, certain other corporate investing activity, and certain corporate overhead costs of RJF that are not allocated to other segments including the interest costs on our public debt, certain provisions for legal and regulatory matters, and certain acquisition-related expenses. (18) Corporate loans included commercial and industrial loans, commercial real estate loans, and real estate investment trust loans. RAYMOND JAMES FINANCIAL, INC. 18


 
(19) Securities-based loans included loans collateralized by the borrower’s marketable securities at advance rates consistent with industry standards and, to a lesser extent, the cash surrender value of life insurance policies. An insignificant portion of our SBL portfolio is collateralized by private securities or other financial instruments with a limited trading market. (20) Amortization of identifiable intangible assets, which was included in “Other” expense, includes amortization of identifiable intangible assets arising from our acquisitions. (21) Average common equity for the quarter-to-date period 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 five, 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 five. 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. RAYMOND JAMES FINANCIAL, INC. 19


 
EX-99.3 4 rjf0930q423presentation.htm EX-99.3 EARNINGS PRESENTATION FISCAL FOURTH QUARTER AND FISCAL 2023 OF RJF rjf0930q423presentation
Fourth Quarter & Fiscal 2023 Results October 25, 2023


 
Forward-looking statements Certain statements made in this presentation and the associated conference call may constitute “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information concerning future strategic objectives, business prospects, anticipated savings, financial results (including expenses, earnings, liquidity, cash flow and capital expenditures), industry or market conditions, demand for and pricing of our products, acquisitions, divestitures, anticipated results of litigation, regulatory developments, and general economic conditions. In addition, words such as “believes,” “expects,” “anticipates,” “intends,” “plans,” “estimates,” “projects,” “forecasts,” and future or conditional verbs such as “will,” “may,” “could,” “should,” and “would,” as well as any other statement that necessarily depends on future events, is intended to identify forward-looking statements. Forward-looking statements are not guarantees, and they involve risks, uncertainties and assumptions. Although we make such statements based on assumptions that we believe to be reasonable, there can be no assurance that actual results will not differ materially from those expressed in the forward-looking statements. We caution investors not to rely unduly on any forward-looking statements and urge you to carefully consider the risks described in our filings with the Securities and Exchange Commission (the “SEC”) from time to time, including our most recent Annual Report on Form 10-K, and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, which are available at www.raymondjames.com and the SEC’s website at www.sec.gov. We expressly disclaim any obligation to update any forward-looking statement in the event it later turns out to be inaccurate, whether as a result of new information, future events, or otherwise. 2


 
Overview of Results Paul Reilly Chair & CEO, Raymond James Financial 3


 
4 *These are non-GAAP measures. See the schedules in the Appendix of this presentation for a reconciliation of our non-GAAP measures to the most directly comparable GAAP measures and for more information on these measures. $ in millions, except per share amounts 4Q23 vs. 4Q22 vs. 3Q23 As reported: Net revenues RECORD $ 3,053 8% 5% Net income available to common shareholders $ 432 (1)% 17% Earnings per common share - diluted $ 2.02 2% 18% 4Q22 3Q23 Return on common equity 17.3 % 18.7% 14.9% vs. 4Q22 vs. 3Q23 Non-GAAP measures*: Adjusted net income available to common shareholders $ 457 —% 15% Adjusted earnings per common share - diluted $ 2.13 2% 15% 4Q22 3Q23 Adjusted return on common equity 18.3 % 19.6% 16.1% Adjusted return on tangible common equity 22.2 % 24.1% 19.7% Fiscal 4Q23 highlights


 
Fiscal 4Q23 key metrics 5 $ in billions 4Q23 vs. 4Q22 vs. 3Q23 Client assets under administration $ 1,256.5 15% (2)% Private Client Group (PCG) assets under administration $ 1,201.2 16% (2)% PCG assets in fee-based accounts $ 683.2 17% (2)% Financial assets under management $ 196.4 13% (2)% Total clients’ domestic cash sweep and ESP balances* $ 56.4 (16)% (3)% PCG financial advisors 8,712 —% —% Bank loans, net $ 43.8 1% 1% 4Q22 3Q23 Domestic PCG net new assets** $ 14.2 $ 20.2 $ 14.4 Domestic PCG net new assets growth — annualized** 5.0 % 8.3 % 5.4 % *In March 2023, we launched our Enhanced Savings Program (ESP), in which Private Client Group clients may deposit cash in a high-yield Raymond James Bank account. **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. The Domestic Private Client Group net new asset growth — annualized percentage is based on the beginning Domestic Private Client Group assets under administration balance for the indicated period.


 
Note: Segments do not total consolidated results because of the Other segment and intersegment eliminations not shown. Fiscal 4Q23 segment results 6 $ in millions 4Q23 vs. 4Q22 vs. 3Q23 Net revenues: Private Client Group RECORD $ 2,265 14% 4% Capital Markets $ 341 (15)% 24% Asset Management $ 236 9% 4% Bank $ 451 5% (12)% Consolidated net revenues RECORD $ 3,053 8% 5% Pre-tax income/(loss): Private Client Group RECORD $ 477 29% 16% Capital Markets $ (7) NM 79% Asset Management $ 100 20% 12% Bank $ 78 (37)% 18% Consolidated pre-tax income $ 585 (5)% 20%


 
FY 2023 highlights 7 *These are non-GAAP measures. See the schedules in the Appendix of this presentation for a reconciliation of our non-GAAP measures to the most directly comparable GAAP measures and for more information on these measures. $ in millions, except per share amounts FY 2023 vs. FY 2022 As reported: Net revenues RECORD $ 11,619 6% Net income available to common shareholders RECORD $ 1,733 15% Earnings per common share - diluted RECORD $ 7.97 14% FY 2022 Return on common equity 17.7 % 17.0% vs. FY 2022 Non-GAAP measures*: Adjusted net income available to common shareholders RECORD $ 1,806 12% Adjusted earnings per common share - diluted RECORD $ 8.30 11% FY 2022 Adjusted return on common equity 18.4 % 18.2% Adjusted return on tangible common equity 22.5 % 21.1%


 
FY 2023 segment results 8 $ in millions FY 2023 vs. FY 2022 Net revenues: Private Client Group RECORD $ 8,654 12% Capital Markets $ 1,214 (33)% Asset Management $ 885 (3)% Bank RECORD $ 2,013 86% Consolidated net revenues RECORD $ 11,619 6% Pre-tax income/(loss): Private Client Group RECORD $ 1,763 71% Capital Markets $ (91) NM Asset Management $ 351 (9)% Bank $ 371 (3)% Consolidated pre-tax income RECORD $ 2,280 13% Note: Segments do not total consolidated results because of the Other segment and intersegment eliminations not shown.


 
Financial Review Paul Shoukry Chief Financial Officer, Raymond James Financial 9


 
Consolidated net revenues 10 $ in millions 4Q23 vs. 4Q22 vs. 3Q23 Asset management and related administrative fees $ 1,446 12% 5% Brokerage revenues 480 —% 4% Account and service fees 314 18% 19% Investment banking 202 (7)% 34% Interest income 1,019 53% 3% Other 54 (33)% (5)% Total revenues 3,515 17% 7% Interest expense (462) 172% 20% Net revenues $ 3,053 8% 5%


 
Domestic cash sweep and ESP balances 11 C lie nt s' D om es tic C as h S w ee p & E S P B al an ce s ($ B ) C ash S w eep & E S P B alances as a % of D om estic P C G A U A CLIENTS' DOMESTIC CASH SWEEP & ENHANCED SAVINGS PROGRAM (ESP)* BALANCES AS A % OF DOMESTIC PCG ASSETS UNDER ADMINISTRATION (AUA) 38.7 39.1 37.7 27.9 25.4 22.0 18.2 9.4 16.9 15.9 6.4 3.1 2.4 1.9 1.6 11.2 13.6 67.1 60.4 52.2 58.0 56.4 7.0% 5.9% 4.9% 5.2% 5.1% RJBDP - Bank Segment** RJBDP - Third-Party Banks** Client Interest Program ESP* 4Q22 1Q23 2Q23 3Q23 4Q23 Note: May not total due to rounding. *In March 2023, we launched our Enhanced Savings Program, in which Private Client Group clients may deposit cash in a high-yield Raymond James Bank account. **Raymond James Bank Deposit Program (RJBDP) is a multi-bank sweep program in which clients' cash deposits in their brokerage accounts are swept into interest- bearing deposit accounts at our Bank segment, which includes Raymond James Bank and TriState Capital Bank, as well as various third-party banks. Year-over-year change: (16)% Sequential change: (3)% 2.7


 
Net interest income & RJBDP fees (third-party banks) 12 *As reported in Account and Service Fees in the PCG segment. **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. $ IN MILLIONS 606 723 731 708 711 497 586 631 601 557 109 137 100 107 154 Firmwide Net Interest Income RJBDP Fees (Third-Party Banks)* 4Q22 1Q23 2Q23 3Q23 4Q23 NET INTEREST MARGIN (NIM) 2.91% 3.36% 3.63% 3.26% 2.87% 2.53% 3.19% 3.59% 3.33% 3.09% Firmwide NIM Bank Segment NIM 4Q22 1Q23 2Q23 3Q23 4Q23 AVERAGE YIELD ON RJBDP (THIRD-PARTY BANKS)** 1.85% 2.72% 3.25% 3.37% 3.60% 4Q22 1Q23 2Q23 3Q23 4Q23 Year-over-year change: 17% Sequential change: —%


 
Consolidated expenses 13 $ in millions 4Q23 vs. 4Q22 vs. 3Q23 Compensation, commissions and benefits $ 1,892 8% 2% Non-compensation expenses: Communications and information processing 158 14% 6% Occupancy and equipment 69 5% 1% Business development 66 12% —% Investment sub-advisory fees 41 14% 3% Professional fees 40 5% 14% Bank loan provision for credit losses 36 6% (33)% Other* 166 95% 5% Total non-compensation expenses 576 26% 1% Total non-interest expenses $ 2,468 11% 2% *Results for fiscal 2023 include elevated provisions for legal and regulatory matters. **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. ***This is a non-GAAP financial measure. See the schedules in the Appendix of this presentation for a reconciliation of our non-GAAP measures to the most directly comparable GAAP measures and for more information on these measures. TOTAL NON-COMPENSATION EXPENSES $ IN MILLIONS 456 398 496 570 576 4Q22 1Q23 2Q23 3Q23 4Q23 TOTAL COMPENSATION RATIO** 62.1% 62.3% 63.3% 63.7% 62.0% 61.5% 61.7% 62.8% 62.7% 61.4% Adjusted Total Compensation Ratio*** Total Compensation Ratio 4Q22 1Q23 2Q23 3Q23 4Q23 * * *


 
*This is a non-GAAP measure. See the schedules in the Appendix of this presentation for a reconciliation of our non-GAAP measures to the most directly comparable GAAP measures and for more information on these measures. Consolidated pre-tax margin 14 21.8% 23.4% 19.4% 16.7% 19.2% 22.8% 23.3% 20.4% 18.1% 20.3% Pre-Tax Margin (GAAP) Pre-Tax Margin (Adjusted)* 4Q22 1Q23 2Q23 3Q23 4Q23


 
Other financial information 15 *This amount includes cash on hand at the parent, as well as parent cash loaned to Raymond James & Associates ("RJ&A"), which RJ&A has invested on behalf of RJF in cash and cash equivalents or otherwise deployed in its normal business activities. **This is a non-GAAP measure. See the schedules in the Appendix of this presentation for a reconciliation of our non- GAAP measures to the most directly comparable GAAP measures and for more information on these measures. ***Estimated. $ in millions, except per share amounts 4Q23 vs. 4Q22 vs. 3Q23 Total assets $ 78,360 (3)% 1% RJF corporate cash* $ 2,076 9% 21% Total common equity attributable to RJF $ 10,135 9% 3% Book value per share $ 48.54 12% 3% Tangible book value per share** $ 40.03 14% 3% Weighted-average common and common equivalent shares outstanding – diluted 213.8 (3)% —% 4Q22 3Q23 Tier 1 leverage ratio*** 11.9 % 10.3% 11.4% Tier 1 capital ratio*** 21.4 % 19.2% 20.6% Common equity tier 1 ratio*** 21.2 % 19.0% 20.4% Total capital ratio*** 22.8 % 20.4% 22.0% Effective tax rate 25.8 % 28.7% 24.1%


 
$1.3B of dividends paid and share repurchases over the past 5 quarters Capital management 16 DIVIDENDS PAID AND SHARE REPURCHASES $ IN MILLIONS 135 217 441 390 88 62 138 350 300 73 79 91 90 88 Share Repurchases* Dividends Paid** 4Q22 1Q23 2Q23 3Q23 4Q23 Number of Shares Repurchased* (thousands) 600 1,292 3,745 3,314 N/A Average Share Price of Shares Repurchased* $104.07 $106.46 $93.45 $90.51 N/A *Under the Board of Director's common stock repurchase authorization. **Reflects dividends paid to holders of common shares. ***Indicates amount remaining as of September 30, 2023 under the Board of Director's $1.5 billion common stock repurchase authorization approved on December 1, 2022. $750M remains under current common stock repurchase authorization***


 
Bank segment key credit trends 17 $ in millions 4Q23 vs. 4Q22 vs. 3Q23 Bank loan provision for credit losses $ 36 6% (33)% Net charge-offs $ 17 21% 13% 4Q22 3Q23 Nonperforming assets as a % of total assets 0.21 % 0.13% 0.21% Bank loan allowance for credit losses as a % of loans held for investment 1.07 % 0.91% 1.04% Bank loan allowance for credit losses on corporate loans as a % of corporate loans held for investment* 2.03 % 1.73% 1.90% Criticized loans as a % of loans held for investment 1.17 % 1.14% 0.94% Note: Our Bank segment includes Raymond James Bank and TriState Capital Bank. *Corporate loans include commercial and industrial loans, commercial real estate loans, and real estate investment trust loans.


 
Outlook 18


 
Appendix 19


 
Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited) 20 We utilize certain non-GAAP financial measures as additional measures to aid in, and enhance, the understanding of our financial results and related measures. These non- GAAP financial measures have been separately identified in this document. We believe certain of these non-GAAP financial measures provide useful information to management and investors by excluding certain material items that may not be indicative of our core operating results. We utilize these non-GAAP financial measures in assessing the financial performance of the business, as they facilitate a comparison of current- and prior-period results. We believe that return on tangible common equity and tangible book value per share are meaningful to investors as they facilitate comparisons of our results to the results of other companies. In the following tables, the tax effect of non-GAAP adjustments reflects the statutory rate associated with each non-GAAP item. These non-GAAP financial measures should be considered in addition to, and not as a substitute for, measures of financial performance prepared in accordance with GAAP. In addition, our non-GAAP financial measures may not be comparable to similarly titled non-GAAP financial measures of other companies. The following tables provide a reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures. Note: Please refer to the footnotes on slide 29 for additional information. continued on next slide


 
Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited) Note: Please refer to the footnotes on slide 29 for additional information. continued on next slide21 Three months ended Twelve months ended $ in millions September 30, 2022 December 31, 2022 March 31, 2023 June 30, 2023 September 30, 2023 September 30, 2022 September 30, 2023 Net income available to common shareholders $ 437 $ 507 $ 425 $ 369 $ 432 $ 1,505 $ 1,733 Non-GAAP adjustments: Expenses directly related to acquisitions included in the following financial statement line items: Compensation, commissions and benefits: Acquisition-related retention (1) 17 18 17 18 17 58 70 Other acquisition-related compensation — — — 10 — 2 10 Total “Compensation, commissions and benefits” expense 17 18 17 28 17 60 80 Communication and information processing — — — — 2 — 2 Professional fees 1 — — 1 3 12 3 Bank loan provision for credit losses — Initial provision for credit losses on acquired loans (2) — — — — — 26 — Other Amortization of identifiable intangible assets (3) 11 11 11 11 12 33 45 Initial provision for credit losses on acquired lending commitments (2) — — — — — 5 — All other acquisition-related expenses 1 — — — — 11 — Total “Other” expense 12 11 11 11 12 49 45 Total expenses related to acquisitions 30 29 28 40 34 147 130 Other — Insurance settlement received (4) — (32) — — — — (32) Pre-tax impact of non-GAAP adjustments 30 (3) 28 40 34 147 98 Tax effect of non-GAAP adjustments (8) 1 (7) (10) (9) (37) (25) Total non-GAAP adjustments, net of tax 22 (2) 21 30 25 110 73 Adjusted net income available to common shareholders $ 459 $ 505 $ 446 $ 399 $ 457 $ 1,615 $ 1,806 Pre-tax income $ 616 $ 652 $ 557 $ 486 $ 585 $ 2,022 $ 2,280 Pre-tax impact of non-GAAP adjustments (as detailed above) 30 (3) 28 40 34 147 98 Adjusted pre-tax income $ 646 $ 649 $ 585 $ 526 $ 619 $ 2,169 $ 2,378


 
Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited) Three months ended Twelve months ended September 30, 2022 December 31, 2022 March 31, 2023 June 30, 2023 September 30, 2023 September 30, 2022 September 30, 2023 Pre-tax margin (5) 21.8 % 23.4 % 19.4 % 16.7 % 19.2 % 18.4 % 19.6 % Impact of non-GAAP adjustments on pre-tax margin: Compensation, commissions and benefits: Acquisition-related retention (1) 0.6 % 0.6 % 0.5 % 0.7 % 0.6 % 0.5 % 0.6 % Other acquisition-related compensation — % — % — % 0.3 % — % — % 0.1 % Total “Compensation, commissions and benefits” expense 0.6 % 0.6 % 0.5 % 1.0 % 0.6 % 0.5 % 0.7 % Communication and information processing — % — % — % — % — % — % — % Professional fees — % — % — % — % 0.1 % 0.1 % 0.1 % Bank loan provision for credit losses — Initial provision for credit losses on acquired loans (2) — % — % — % — % — % 0.2 % — % Other: Amortization of identifiable intangible assets (3) 0.4 % 0.4 % 0.5 % 0.4 % 0.4 % 0.3 % 0.4 % Initial provision for credit losses on acquired lending commitments (2) — % — % — % — % — % 0.1 % — % All other acquisition-related expenses — % — % — % — % — % 0.1 % — % Total “Other” expense 0.4 % 0.4 % 0.5 % 0.4 % 0.4 % 0.5 % 0.4 % Total expenses related to acquisitions 1.0 % 1.0 % 1.0 % 1.4 % 1.1 % 1.3 % 1.2 % Other — Insurance settlement received (4) — % (1.1) % — % — % — % — % (0.3) % Total non-GAAP adjustments 1.0 % (0.1) % 1.0 % 1.4 % 1.1 % 1.3 % 0.9 % Adjusted pre-tax margin (5) 22.8 % 23.3 % 20.4 % 18.1 % 20.3 % 19.7 % 20.5 % Note: Please refer to the footnotes on slide 29 for additional information. continued on next slide22


 
Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited) 23 Note: Please refer to the footnotes on slide 29 for additional information. continued on next slide Three months ended September 30, 2022 December 31, 2022 March 31, 2023 June 30, 2023 September 30, 2023 Total compensation ratio (6) 62.1 % 62.3 % 63.3 % 63.7 % 62.0 % Less the impact of non-GAAP adjustments on compensation ratio: Acquisition-related retention (1) 0.6 % 0.6 % 0.5 % 0.7 % 0.6 % Other acquisition-related compensation — % — % — % 0.3 % — % Total “Compensation, commissions and benefits” expenses related to acquisitions 0.6 % 0.6 % 0.5 % 1.0 % 0.6 % Adjusted total compensation ratio (6) 61.5 % 61.7 % 62.8 % 62.7 % 61.4 % Three months ended $ in millions September 30, 2022 December 31, 2022 March 31, 2023 June 30, 2023 September 30, 2023 Compensation, commissions and benefits expense $ 1,759 $ 1,736 $ 1,820 $ 1,851 $ 1,892 Less: Total compensation-related acquisition expenses (1) 17 18 17 28 17 Adjusted compensation, commissions and benefits expense $ 1,742 $ 1,718 $ 1,803 $ 1,823 $ 1,875


 
Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited) 24 Note: Please refer to the footnotes on slide 29 for additional information. Three months ended Twelve months ended Earnings per common share (7) September 30, 2022 June 30, 2023 September 30, 2023 September 30, 2022 September 30, 2023 Basic $ 2.03 $ 1.75 $ 2.07 $ 7.16 $ 8.16 Impact of non-GAAP adjustments on basic earnings per common share: Compensation, commissions and benefits: Acquisition-related retention (1) 0.08 0.09 0.08 0.28 0.33 Other acquisition-related compensation — 0.05 — 0.01 0.05 Total “Compensation, commissions and benefits” expense 0.08 0.14 0.08 0.29 0.38 Communication and information processing — — 0.01 — 0.01 Professional fees — — 0.01 0.06 0.01 Bank loan provision for credit losses — Initial provision for credit losses on acquired loans (2) — — — 0.12 — Other: Amortization of identifiable intangible assets (3) 0.05 0.05 0.06 0.16 0.21 Initial provision for credit losses on acquired lending commitments (2) — — — 0.02 — All other acquisition-related expenses 0.01 — — 0.05 — Total “Other” expense 0.06 0.05 0.06 0.23 0.21 Total expenses related to acquisitions 0.14 0.19 0.16 0.70 0.61 Other — Insurance settlement received (4) — — — — (0.15) Tax effect of non-GAAP adjustments (0.04) (0.05) (0.04) (0.18) (0.12) Total non-GAAP adjustments, net of tax 0.10 0.14 0.12 0.52 0.34 Adjusted basic $ 2.13 $ 1.89 $ 2.19 $ 7.68 $ 8.50 continued on next slide


 
Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited) 25 Note: Please refer to the footnotes on slide 29 for additional information. continued on next slide Three months ended Twelve months ended Earnings per common share (7) September 30, 2022 June 30, 2023 September 30, 2023 September 30, 2022 September 30, 2023 Diluted $ 1.98 $ 1.71 $ 2.02 $ 6.98 $ 7.97 Impact of non-GAAP adjustments on diluted earnings per common share: Compensation, commissions and benefits: Acquisition-related retention (1) 0.08 0.09 0.08 0.27 0.32 Other acquisition-related compensation — 0.05 — 0.01 0.05 Total “Compensation, commissions and benefits” expense 0.08 0.14 0.08 0.28 0.37 Communication and information processing — — 0.01 — 0.01 Professional fees — — 0.01 0.06 0.01 Bank loan provision for credit losses — Initial provision for credit losses on acquired loans (2) — — — 0.12 — Other: Amortization of identifiable intangible assets (3) 0.05 0.05 0.05 0.15 0.21 Initial provision for credit losses on acquired lending commitments (2) — — — 0.02 — All other acquisition-related expenses 0.01 — — 0.05 — Total “Other” expense 0.06 0.05 0.05 0.22 0.21 Total expenses related to acquisitions 0.14 0.19 0.15 0.68 0.60 Other — Insurance settlement received (4) — — — — (0.15) Tax effect of non-GAAP adjustments (0.04) (0.05) (0.04) (0.17) (0.12) Total non-GAAP adjustments, net of tax 0.10 0.14 0.11 0.51 0.33 Adjusted diluted $ 2.08 $ 1.85 $ 2.13 $ 7.49 $ 8.30


 
Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited) 26 Note: Please refer to the footnotes on slide 29 for additional information. continued on next slide Book value per share As of $ in millions, except per share amounts September 30, 2022 June 30, 2023 September 30, 2023 Total common equity attributable to Raymond James Financial, Inc. $ 9,338 $ 9,870 $ 10,135 Less non-GAAP adjustments: Goodwill and identifiable intangible assets, net 1,931 1,928 1,907 Deferred tax liabilities related to goodwill and identifiable intangible assets, net (126) (129) (131) Tangible common equity attributable to Raymond James Financial, Inc. $ 7,533 $ 8,071 $ 8,359 Common shares outstanding 215.1 208.5 208.8 Book value per share (8) $ 43.41 $ 47.34 $ 48.54 Tangible book value per share (8) $ 35.02 $ 38.71 $ 40.03


 
Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited) 27 Note: Please refer to the footnotes on slide 29 for additional information. Return on common equity Three months ended Twelve months ended $ in millions September 30, 2022 June 30, 2023 September 30, 2023 September 30, 2022 September 30, 2023 Average common equity (9) $ 9,367 $ 9,873 $ 10,003 $ 8,836 $ 9,791 Impact of non-GAAP adjustments on average common equity: Compensation, commissions and benefits: Acquisition-related retention (1) 9 9 9 27 35 Other acquisition-related compensation — 4 — 1 4 Total “Compensation, commissions and benefits” expense 9 13 9 28 39 Communication and information processing — — 1 — 1 Professional fees 1 1 2 6 1 Bank loan provision for credit losses — Initial provision for credit losses on acquired loans (2) — — — 10 — Other: Amortization of identifiable intangible assets (3) 5 6 6 16 22 Initial provision for credit losses on acquired lending commitments (2) — — — 2 — All other acquisition-related expenses — — — 6 — Total “Other” expense 5 6 6 24 22 Total expenses related to acquisitions 15 20 18 68 63 Other — Insurance settlement received (4) — — — — (26) Tax effect of non-GAAP adjustments (4) (5) (5) (17) (9) Total non-GAAP adjustments, net of tax 11 15 13 51 28 Adjusted average common equity (9) $ 9,378 $ 9,888 $ 10,016 $ 8,887 $ 9,819 continued on next slide


 
Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited) 28 Note: Please refer to the footnotes on slide 29 for additional information. Return on tangible common equity Three months ended Twelve months ended $ in millions September 30, 2022 June 30, 2023 September 30, 2023 September 30, 2022 September 30, 2023 Average common equity (9) $ 9,367 $ 9,873 $ 10,003 $ 8,836 $ 9,791 Less: Average goodwill and identifiable intangible assets, net 1,871 1,930 1,918 1,322 1,928 Average deferred tax liabilities related to goodwill and identifiable intangible assets, net (127) (128) (130) (94) (129) Average tangible common equity (9) $ 7,623 $ 8,071 $ 8,215 $ 7,608 $ 7,992 Impact of non-GAAP adjustments on average tangible common equity: Compensation, commissions and benefits: Acquisition-related retention (1) 9 9 9 27 35 Other acquisition-related compensation — 4 — 1 4 Total “Compensation, commissions and benefits” expense 9 13 9 28 39 Communication and information processing — — 1 — 1 Professional fees 1 1 2 6 1 Bank loan provision for credit losses — Initial provision for credit losses on acquired loans (2) — — — 10 — Other: Amortization of identifiable intangible assets (3) 5 6 6 16 22 Initial provision for credit losses on acquired lending commitments (2) — — — 2 — All other acquisition-related expenses — — — 6 — Total “Other” expense 5 6 6 24 22 Total expenses related to acquisitions 15 20 18 68 63 Other — Insurance settlement received (4) — — — — (26) Tax effect of non-GAAP adjustments (4) (5) (5) (17) (9) Total non-GAAP adjustments, net of tax 11 15 13 51 28 Adjusted average tangible common equity (9) $ 7,634 $ 8,086 $ 8,228 $ 7,659 $ 8,020 Return on common equity (10) 18.7 % 14.9 % 17.3 % 17.0 % 17.7 % Adjusted return on common equity (10) 19.6 % 16.1 % 18.3 % 18.2 % 18.4 % Return on tangible common equity (10) 22.9 % 18.3 % 21.0 % 19.8 % 21.7 % Adjusted return on tangible common equity (10) 24.1 % 19.7 % 22.2 % 21.1 % 22.5 %


 
Footnotes 29 (1) Includes acquisition-related compensation expenses primarily arising from equity and cash-based retention awards issued in conjunction with acquisitions in prior years. 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. (2) Our results for the twelve months ended September 30, 2022 included an initial provision for credit losses on loans and lending commitments acquired as part of our acquisition of TriState Capital Holdings, Inc. amounting to $26 million (included in “Bank loan provision 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. (3) Amortization of identifiable intangible assets, which was included in “Other” expense, includes amortization of identifiable intangible assets arising from our acquisitions. (4) The three months ended December 31, 2022 and twelve months ended September 30, 2023 included the favorable impact of a $32 million insurance settlement received during the period related to a previously settled legal matter. This item has been reflected as an offset to Other expenses within our Other segment. In the computation of our non-GAAP financial measures, we have reversed the favorable impact of this item on adjusted pre-tax income and adjusted net income available to common shareholders. 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. (5) 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. (6) Total compensation ratio is computed by dividing compensation, commissions and benefits expense by net revenues for each respective period or, in the case of adjusted total compensation ratio, computed by dividing adjusted compensation, commissions and benefits expense by net revenues for each respective period. (7) 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. The allocations of earnings and dividends to participating securities were $1 million for each of the three months ended September 30, 2022, June 30, 2023, and September 30, 2023, and $3 million and $5 million for the twelve months ended September 30, 2022 and 2023, respectively. (8) 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. (9) Average common equity for the quarter-to-date period 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 five, 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 five. 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. (10) 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. 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.