Florida |
1-9109 |
59-1517485 |
||||||||||||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(I.R.S. Employer Identification No.) |
||||||||||||
880 Carillon Parkway |
St. Petersburg |
Florida |
33716 |
|||||||||||
(Address of principal executive offices) |
(Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Common Stock, $.01 par value | RJF | New York Stock Exchange | ||||||
Depositary Shares, Each Representing a 1/40th Interest in a Share of 6.375% Fixed-to-Floating Rate Series B Non-Cumulative Perpetual Preferred Stock | RJF PrB | New York Stock Exchange |
RAYMOND JAMES FINANCIAL, INC. |
||||||||
Date: October 25, 2023 |
By: |
/s/ Paul M. Shoukry |
||||||
Paul M. Shoukry | ||||||||
Chief Financial Officer |
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, INC.
Fiscal Fourth Quarter of 2023
|
Selected Financial Highlights (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 |
|||||||||||||||||||||||||||
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 | % |
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 | 2 | 2 | — | —% | 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)% | —% |
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 | 6 | 4 | 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% |
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 |
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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 | —% | —% |
RAYMOND JAMES FINANCIAL, INC. | Consolidated Net Interest | ||||
Fiscal Fourth Quarter of 2023 |
(Unaudited) |
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 |
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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 | 3 | 8.23 | % | 188 | 1 | 4.22 | % | 195 | 4 | 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 | 3 | 5.94 | % | 126 | 1 | 4.92 | % | 126 | 2 | 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 | 5 | 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 | 7 | 2.20 | % | 1,226 | 7 | 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 | $ | 9 | 4.84 | % | $ | 703 | $ | 9 | 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 | 7 | 2.90 | % | 579 | 8 | 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 | % |
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 | 7 | 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 | 9 | 5.67 | % | 124 | 4 | 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 | % |
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 | 4 | 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% |
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 | 8 | 10 | 9 | (20)% | (11)% | |||||||||||||||||||||||||||
Interest income | 115 | 111 | 114 | 4% | 1% | |||||||||||||||||||||||||||
All other | 8 | 8 | 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% |
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% |
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 | 3 | 9 | 4 | (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 |
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 | 5 | 5 | 5 | —% | —% | |||||||||||||||||||||||||||
All other | 5 | 2 | 4 | 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)% |
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)% |
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 | 1 | 9 | 2 | (89)% | (50)% | |||||||||||||||||||||||||||
All other | 2 | 2 | — | —% | NM | |||||||||||||||||||||||||||
Total revenues | 47 | 26 | 39 | 81% | 21% | |||||||||||||||||||||||||||
Interest expense | (22) | (22) | (24) | —% | (8)% | |||||||||||||||||||||||||||
Net revenues | 25 | 4 | 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 | 6 | 9 | (33)% | |||||||||||||||||
All other | 3 | 9 | (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% |
RAYMOND JAMES FINANCIAL, INC. | Bank Segment Selected Key Metrics | ||||
Fiscal Fourth Quarter of 2023 |
(Unaudited) |
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% |
RAYMOND JAMES FINANCIAL, INC. | Non-GAAP Financial Measures | ||||
Fiscal Fourth Quarter of 2023 |
(Unaudited) |
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 | 2 | ||||||||||||||||||||||||||||||
Total “Compensation, commissions and benefits” expense | 17 | 17 | 28 | 80 | 60 | ||||||||||||||||||||||||||||||
Communications and information processing | 2 | — | — | 2 | — | ||||||||||||||||||||||||||||||
Professional fees | 3 | 1 | 1 | 3 | 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) |
— | — | — | — | 5 | ||||||||||||||||||||||||||||||
All other acquisition-related expenses | — | 1 | — | — | 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 | |||||||||||||||||||||||||
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 | % | |||||||||||||||||||||||||
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 |
RAYMOND JAMES FINANCIAL, INC. | Non-GAAP Financial Measures | ||||
Fiscal Fourth Quarter of 2023 |
(Unaudited) |
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) |
9 | 9 | 9 | 35 | 27 | ||||||||||||||||||||||||||||||
Other acquisition-related compensation | — | — | 4 | 4 | 1 | ||||||||||||||||||||||||||||||
Total “Compensation, commissions and benefits” expense | 9 | 9 | 13 | 39 | 28 | ||||||||||||||||||||||||||||||
Communications and information processing | 1 | — | — | 1 | — | ||||||||||||||||||||||||||||||
Professional fees | 2 | 1 | 1 | 1 | 6 | ||||||||||||||||||||||||||||||
Bank loan provision for credit losses — Initial provision for credit losses on acquired loans (11) |
— | — | — | — | 10 | ||||||||||||||||||||||||||||||
Other: | |||||||||||||||||||||||||||||||||||
Amortization of identifiable intangible assets (23) |
6 | 5 | 6 | 22 | 16 | ||||||||||||||||||||||||||||||
Initial provision for credit losses on acquired lending commitments (11) |
— | — | — | — | 2 | ||||||||||||||||||||||||||||||
All other acquisition-related expenses | — | — | — | — | 6 | ||||||||||||||||||||||||||||||
Total “Other” expense | 6 | 5 | 6 | 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 |
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 |
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Average common equity (24) |
$ | 10,003 | $ | 9,367 | $ | 9,873 | $ | 9,791 | $ | 8,836 | |||||||||||||||||||||||||
Less: |
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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) |
9 | 9 | 9 | 35 | 27 | ||||||||||||||||||||||||||||||
Other acquisition-related compensation | — | — | 4 | 4 | 1 | ||||||||||||||||||||||||||||||
Total “Compensation, commissions and benefits” expense | 9 | 9 | 13 | 39 | 28 | ||||||||||||||||||||||||||||||
Communications and information processing | 1 | — | — | 1 | — | ||||||||||||||||||||||||||||||
Professional fees | 2 | 1 | 1 | 1 | 6 | ||||||||||||||||||||||||||||||
Bank loan provision for credit losses — Initial provision for credit losses on acquired loans (11) |
— | — | — | — | 10 | ||||||||||||||||||||||||||||||
Other: | |||||||||||||||||||||||||||||||||||
Amortization of identifiable intangible assets (23) |
6 | 5 | 6 | 22 | 16 | ||||||||||||||||||||||||||||||
Initial provision for credit losses on acquired lending commitments (11) |
— | — | — | — | 2 | ||||||||||||||||||||||||||||||
All other acquisition-related expenses | — | — | — | — | 6 | ||||||||||||||||||||||||||||||
Total “Other” expense | 6 | 5 | 6 | 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 | % |
(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. |
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(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. |
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(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. |
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(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. |
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(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. |
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(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. |
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(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. |
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(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. | |||||||
(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”. |
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(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. |
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(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. |