Raymond James Financial, Inc. · NYSE:RJF
Raymond James Financial — Investor Day (May 2021)
94 slides from Raymond James Financial's investor day presentation, May 27, 2021
Slide 1: 2021 Analyst & Investor Day
RAYMOND JAMES 2021 Analyst & veo De >
Slide 2: Welcome & Agenda
2021 ANALYST & INVESTOR DAY Welcome & Agenda Kristie Waugh Vice President, Head of Investor Relations and FP&A
Slide 3: Forward-looking statements
3 Forward-looking statements Certain statements made in this presentation 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 sav
Slide 4: Agenda
4 Agenda 10:00 AM PAUL REILLY Chairman & CEO, Raymond James Financial Followed by Q&A Strategic Overview 10:30 AM BUSINESS UNIT OVERVIEWS SCOTT CURTIS President, Private Client Group Private Client Group JIM BUNN President, Global Equities & Investment Banking Global Equities & Investment Banking ST
Slide 5: Q&A sessions
5 Q&A sessions Throughout the event, please submit all questions in the Q&A section of your webinar dashboard
Slide 6: Strategic Overview
2021 ANALYST & INVESTOR DAY Strategic Overview Paul Reilly Chairman & CEO, Raymond James Financial
Slide 7: Our firm has been shaped by four core values
7 Our firm has been shaped by four core values CLIENT FIRST We put clients first. CONSERVATISM We think long-term. INDEPENDENCE We value independence. INTEGRITY We act with integrity.
Slide 8: Raymond James Financial
8 Raymond James Financial Note: Pie chart above does not include intersegment eliminations or the Other segment. BY THE NUMBERS (as of Mar. 31, 2021) Client assets under administration $1.09 trillion Over 8,300 advisors in U.S., Canada, and U.K. 133 consecutive quarters of profitability More than 2x
Slide 9: We set out to be the Premier Alternative to Wall Street
9 We set out to be the Premier Alternative to Wall Street Sc op e an d Sc al e of S er vi ce s Culture: Advisor/Client Orientation Wirehouses Custodians Regionals Boutiques RJF 2010 Independents 10+ years ago The Premier Alternative to Wall Street
Slide 10: We set out to be the Premier Alternative to Wall Street (today)
10 We set out to be the Premier Alternative to Wall Street RJF 2021 Sc op e an d Sc al e of S er vi ce s Culture: Advisor/Client Orientation Wirehouses Custodians Regionals Boutiques RJF 2010 Independents Today The Premier Alternative to Wall Street
Slide 11: This focus resulted in strong growth over the past 10 years
2,917 7,990 FY 2010 FY 2020 10.6% 10-YR CAGR 11 This focus resulted in strong growth over the past 10 years Note: 10-year CAGR for period FY 2010 – FY 2020. Charts not to scale. Client Assets Under Administration ($ billions) 249 930 FY 2010 FY 2020 14.1% 10-YR CAGR Consolidated Net Revenues ($ mill
Slide 12: A focus on technology
12 A focus on technology Serve Clients Anywhere Ease of UseIncreased Efficiency Business Growing Intuitive Advisor Productivity Customizable FlexibleBuilt for Advisors
Slide 13: Tools recognized by advisors and the industry
13 Tools recognized by advisors and the industry I love how intuitive and customizable the technology is. It's like each system is tailored to me. Made to meet my needs. Financial Advisor – California Sometimes I forget what application I’m running! RJ Tech makes it easy to focus on the tasks at han
Slide 14: Our four core businesses are diverse but complementary
RAYMOND JAMES BANK 14 ASSET MANAGEMENT CAPITAL MARKETS Loans to PCG Clients (mortgages, SBL loans, structured lending) Stable source of deposits Loans to institutional clients Research opinions Referrals Economic and industry research and perspectives Referrals Corporate executive services High-qual
Slide 15: Diversification has shown its value over the cycle
40% 41% 36% 33% 40% 40% 36% 34% 41% 40% 43% 36% 21% 15% 13% 15% 16% 12% 15% 13% 7% 8% 18% 31% 12% 12% 11% 14% 15% 16% 14% 16% 17% 17% 23% 23% 28% 32% 40% 39% 29% 32% 36% 37% 35% 35% 16% 10% FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FYTD 2021 Contribution
Slide 16: Looking ahead
Looking ahead RAYMOND JAMES
Slide 17: Growth initiatives
17 Growth initiatives Drive organic growth across core businesses Expand investments in technology Sharpen focus on strategic M&A 1 2 3
Slide 18: Drive organic growth: Private Client Group
18 Drive organic growth across core businesses1 Private Client Group Best-in-class experience Leverage entire firm’s resources Strong retention and recruiting
Slide 19: Drive organic growth: Capital Markets
19 Drive organic growth across core businesses1 Capital Markets Expand M&A platform New market expansion Deepen client relationships
Slide 20: Drive organic growth: Asset Management
Expand Carillon Tower Advisers offering Enhance investment solutions Implement technology for efficiency 20 Drive organic growth across core businesses1 Asset Management
Slide 21: Drive organic growth: Raymond James Bank
21 Drive organic growth across core businesses1 Raymond James Bank Grow PCG client loans Expand securities portfolio Selectively grow corporate loans Manage credit risk
Slide 22: Expand investments in technology
22 Expand investments in technology • Artificial Intelligence • Augmented Reality • Blockchain • Data Lake • Digital Personas • Machine Learning • Real-Time Everything • Robotics • Zero Day Settlement 2
Slide 23: Strong track record and focus on strategic M&A
3 23 We have a strong track record and remain focused on strategic M&A 1999 2000 2009 2011 2012 2015 2016 2017 2019 2020 2021 Note: Periods shown above are calendar years.
Slide 24: Our approach to corporate responsibility
24 Our approach to corporate responsibility People. We cultivate a people-first workplace for associates and advisors. Sustainability. We focus on making sustainable business and operational decisions. Community. We give back to the communities in which we live and work. Governance. We have a longst
Slide 25: Q&A
2021 ANALYST & INVESTOR DAY Q & A Paul Reilly Chairman & CEO, Raymond James Financial
Slide 26: Private Client Group
2021 ANALYST & INVESTOR DAY Private Client Group Scott Curtis President, Private Client Group
Slide 27: Private Client Group Overview
Private Client Group 27 OVERVIEW #6 largest wealth manager* in U.S. Client assets under administration approximately $1.03 trillion Assets in fee-based accounts $568 billion More than 80% asset-based revenues** 8,327 advisors in U.S., Canada, and U.K. Flexible affiliation options with AdvisorChoice®
Slide 28: Long-term growth
Assets Under Administration ($ billions) Note: 5-year CAGR for period FY 2015 – FY 2020. Charts not to scale. 453.3 883.3 1,028.1 FY 2015 FY 2020 Mar. 31, 2021 179.4 475.3 567.6 FY 2015 FY 2020 Mar. 31, 2021 14.3% 5-YR CAGR 21.5% 5-YR CAGR FY 2015 FY 2020 Mar. 31, 2021 Employees Independent Contract
Slide 29: Client assets growth versus peer group
111.7% 65.9% Raymond James Peer Group Median 273.9% 146.3% Raymond James Peer Group Median 1-Year Change (March 31, 2020 - March 31, 2021) Total PCG Client Assets Under Administration 48.0% 37.3% Raymond James Peer Group Median 3-Year Change (March 31, 2018 - March 31, 2021) 5-Year Change (March 31,
Slide 30: Net revenues and pre-tax income
342 539 323 332 FY 2015 FY 2020 FYTD 2020 FYTD 2021 3,508 5,552 2,909 3,114 FY 2015 FY 2020 FYTD 2020 FYTD 2021 9.6% 5-YR CAGR 9.5% 5-YR CAGR Note: 5-year CAGR for period FY 2015 – FY 2020. FYTD 2020 as of March 31, 2020. FYTD 2021 as of March 31, 2021. Charts not to scale. Long-term growth Net Reve
Slide 31: Growth initiatives
31 Growth initiatives Our vision is to be the most advisor-centric firm Digitally enable advisors to provide best-in-class client experience Leverage entire firm’s resources in supporting advisors and clients Continue strong retention and recruiting through AdvisorChoice®P R IV AT E C LI EN T G R O
Slide 32: Core principles guiding digital innovation
Core principles guiding digital innovation 32 Operational Efficiency & Risk Management Business Growth & Client Engagement Collaborate & Track Progress Enable Digital Advice Personalize & Gamify Tools Provide Holistic Wealth Platform Mobile Office Device Agnostic Design Surface Relevant Insights Aut
Slide 33: Embracing technology for efficiency and growth
Embracing technology for efficiency and growth 33 D ig it al E na bl em en t + 34% Client Access # ACCOUNTS eDelivery + 62% eSignature USAGE Vault 35 million PAPER DOCUMENTS SAVED UPLOADS + 58%Y/YY/Y Y/Y Note: Technology utilization data through March 2021.
Slide 34: Expanding our offering
Expanding our offering 34 Le ve ra ge E nt ir e Fi rm ’s R es ou rc es
Slide 35: Market share opportunity
Market share opportunity Note: This state view excludes Alaska and Hawaii, which have 6.1% and 8.5% market share, respectively. Data as of June 2019. Ad vi so r R et en ti on & R ec ru it in g 35
Slide 36: Positioned to capture advisor movement
Positioned to capture advisor movement Ad vi so r R et en ti on & R ec ru it in g 36 6.4% 8.3% 7.5% 4.5% 11.3% 10.4% 0% 2% 4% 6% 8% 10% 12% Wirehouse National and Regional B/D IBD Retail Bank B/D Hybrid RIA Independent RIA AUA 10-Year CAGR by Channel Affiliation* Registered Representatives by Type**
Slide 37: Retention and recruiting powered by AdvisorChoice
Retention and recruiting powered by AdvisorChoice® 37 Ad vi so r R et en ti on & R ec ru it in g RJF Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Protocol Firm Employee option(s) Independent option(s) RIA option(s) No direct to client sales No payout penalties based on client size Full su
Slide 38: Client satisfaction reaches five-year high
Client satisfaction reaches five-year high 38 Client Net Promoter Score (NPS®) 80 78 78 79 76 77 73 70 70 73 70 67 72 75 77 72 79 64 66 62 47 56 59 65 58 71 66 70 73 78 75 73 69 72 69 73 77 84 60 52 56 56 51 53 46 47 44 60 57 52 52 54 50 55 66 48 51 43 36 39 48 51 45 53 50 54 56 59 58 55 57 56 52 58
Slide 39: Culture proof points
Culture proof points ADVISORS AS CHOICE RESPONSIVE CLIENTS |NTEGRITY Lonc-TERM CLIENT FIRST CONSERVATIVE suPPoRT FREEDOM INDEPENDENCE CARING FEEDBACK PARTNERSHIP ®&sPect INCLUSIVE ACCESSIBILITY VISIBILITY COMMUNITY OF LEADERS SERVICE 1ST RAYMOND JAMES
Slide 40: Global Equities & Investment Banking
2021 ANALYST & INVESTOR DAY Global Equities & Investment Banking Jim Bunn President, Global Equities & Investment Banking
Slide 41: Capital Markets Segment Net Revenues
41 Capital Markets Segment Net Revenues* Global Equities & Investment Banking within our Capital Markets segment Note: 4-year CAGR for period FY 2016 – FY 2020. FYTD 2020 as of March 31, 2020. FYTD 2021 as of March 31, 2021. *Effective in FY 2019, we adopted ASU 2014-09 “Revenues from Contracts With
Slide 42: GEIB capabilities: investment banking, sales, trading, research
42 ECM/SYNDICATE CORPORATE ACCESS INSTITUTIONAL SALES EQUITY TRADING GEIB INVESTMENT BANKING EQUITY RESEARCH • In 2020, marketed over 950 companies and executed over 7,000 meetings across ~750 events in the U.S., Europe, Canada and Asia • Institutional Investors Conference is one of largest and olde
Slide 43: Growth initiatives
43 Growth initiatives Grow high-margin Advisory business Increase productivity (revenue per professional, average fee per transaction) Synergistic acquisitions Deepen private equity relationships Expand scope of services/business lines across Investment Banking and Equities Increase market share acr
Slide 44: Full-service investment banking capabilities
44 CONVERTIBLE FINANCING • Equity • Debt RESTRUCTURING • Reorganizations • Workouts • Financings PRIVATE CAPITAL FUND ADVISORY • GP-led Secondaries • Fund Placement • LP-led Secondaries CORPORATE & EXECUTIVE SERVICES • Share Buybacks • Equity Compensation Plan Administration • Cash Management CONSUM
Slide 45: Driving growth through consistent investment in talent
2.9 4.1 4.3 4.6 4.3 1.9 3.6 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FYTD 2020 FYTD 2021 Driving growth through consistent investment in talent 45 GEIB Investment Banking Managing Directors* (annual average) GEIB Average Revenues per Managing Director* ($ millions) 76 79 86 92 98 101 FY 2016 FY 2017
Slide 46: M&A and Advisory Revenues
Note: 4-year CAGR for period FY 2016 – FY 2020. FYTD 2020 as of March 31, 2020. FYTD 2021 as of March 31, 2021. Charts not to scale. *Effective in FY 2019, we adopted ASU 2014-09 “Revenues from Contracts With Customers”. As a result of adoption, we changed the presentation of certain costs related t
Slide 47: Equity Underwriting Revenues
68 98 81 88 163 71 97 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FYTD 2020 FYTD 2021 47 Equity Underwriting Revenues Capital Markets Segment Results* ($ millions) 95 117 93 100 185 82 127 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FYTD 2020 FYTD 2021 Note: 4-year CAGR for period FY 2016 – FY 2020. FYTD 20
Slide 48: Equity Brokerage Revenues
48 Equity Brokerage Revenues Capital Markets Segment Results ($ millions) 192 173 156 131 150 74 76 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FYTD 2020 FYTD 2021 Note: As of March 31, 2021 unless otherwise noted. FYTD 2020 as of March 31, 2020. FYTD 2021 as of March 31, 2021. Alpha Capture • Global sa
Slide 49: Global research department supports sales efforts
Global research department supports our institutional and retail sales efforts 49 • Ranked #1 on Thematic and Forward-Looking Research Consumer 9% Energy 10% Financial Services 24% Healthcare 16% Real Estate 10% Technology & Telecommunications 24% Transportation & Industrial Services 7% Sector Focus
Slide 50: Premier research provider covering growth companies
Premier research provider covering growth companies 50 Source: Starmine North American Peer Coverage April 1, 2021. North America coverage based on covered company’s location. • The Raymond James Equity Research team is composed of nearly 60 equity analysts covering ~900 U.S. and ~250 Canadian compa
Slide 51: Successful track record of acquisitions
Successful track record of acquisitions 51 Standalone Revenue 10x Developed the #1 middle market fintech practice in the U.S. Current Tech & Services Revenue Standalone Revenue Current European IB Revenue Established one of the fastest growing European investment banking businesses 9x Standalone Rev
Slide 52: Raymond James Bank
2021 ANALYST & INVESTOR DAY Raymond James Bank Steve Raney Chairman & CEO, Raymond James Bank
Slide 53: Raymond James Bank Overview
OVERVIEW Total assets of approximately $33 billion Stable, low cost source of deposits Flexible deposit base and capital base Serve financial advisors, retail & institutional clients Diversified loan portfolio with approximately $23 billion outstanding Loan growth of 5% year-over-year Conservative c
Slide 54: Growth driven by targeted loan growth
12,988 21,195 22,879 FY 2015 FY 2020 Mar. 31, 2021 Note: 5-year CAGR for period FY 2015 – FY 2020. FYTD 2020 as of March 31, 2020. FYTD 2021 as of March 31, 2021. Charts not to scale. *FY 2015 and FY 2020 represent the twelve months ended September 30, 2015 and September 30, 2020, respectively. FYTD
Slide 55: Diversified asset portfolio with greater mix of PCG client loans
C&I Loans 23% CRE Loans 8% REIT Loans 4% Tax-Exempt Loans 4% Residential Mortgage Loans 15% SBL and Other Loans 15% Loans Held For Sale 1% Cash and Other Assets 5% Available-For- Sale Securities 25% Diversified asset portfolio with greater mix of PCG client loans and securities Asset Mix as of March
Slide 56: Loan growth
Loan growth RJ Bank Loans* 5-Year CAGRs (March 31, 2016 – March 31, 2021) *Quarter-end balances as of March 31, 2016 and March 31, 2021, respectively. **Corporate loans includes C&I, CRE and CRE construction loans for the quarter ended March 31, 2016, and includes C&I, CRE and REIT loans for the qua
Slide 57: Credit loss provisions and nonperforming assets
Bank Loan Loss Provision/(Benefit) for Credit Losses ($ millions) Note: Charts not to scale. *FYTD 2021 represents the six months ended March 31, 2021. **2Q FY21 as of March 31, 2021. 55 169 80 34 26 3 14 24 28 13 20 22 233 (18) FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19
Slide 58: Growth initiatives
58 Growth initiatives Continue to grow securities-based loans and residential mortgages to PCG clients Continue to expand the Bank’s available-for-sale securities portfolio with agency- backed securities Continue to selectively grow the corporate loan portfolio Maintain conservative underwriting sta
Slide 59: Q&A
2021 ANALYST & INVESTOR DAY Q & A Scott Curtis, President, Private Client Group Jim Bunn, President, Global Equities & Investment Banking Steve Raney, Chairman & CEO, Raymond James Bank
Slide 60: Financial Review
2021 ANALYST & INVESTOR DAY Financial Review Paul Shoukry Chief Financial Officer, Raymond James Financial
Slide 61: Focusing on financial priorities
Focusing on financial priorities Long-Term Growth Fortify the balance sheet while delivering attractive long-term returns to shareholders Capital & Liquidity Management Expense Optimization 61
Slide 62: Long-term growth: Net Revenues
Long-term growth: Net Revenues Consolidated Net Revenues ($ millions) 5,204 5,405 6,371 7,274 7,740 7,990 4,077 4,594 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FYTD 2020 FYTD 2021 9.0% 5-YR CAGR Note: 5-year CAGR for period FY 2015 – FY 2020. FYTD 2020 as of March 31, 2020. FYTD 2021 as of Mar
Slide 63: Long-term growth: Pre-Tax Income
Long-term growth: Pre-Tax Income Consolidated Adjusted Pre-Tax Income* ($ millions) 798 861 1,119 1,315 1,409 1,105 598 848 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FYTD 2020 FYTD 2021 6.7% 5-YR CAGR Note: 5-year CAGR for period FY 2015 – FY 2020. FYTD 2020 as of March 31, 2020. FYTD 2021 as
Slide 64: Long-term growth: Pre-Tax Margin
64 Long-term growth: Pre-Tax Margin 15.3% 14.8% 14.5% 18.0% 17.8% 13.2% 18.4% 15.9% 17.6% 18.1% 18.2% 13.8% 18.5% FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FYTD 2021 Pre-Tax Margin* Adjusted Pre-Tax Margin** Note: FYTD 2021 as of March 31, 2021. *Based on net revenues. **This is a non-GAAP fin
Slide 65: Long-term growth: Earnings per Share
$3.43 $6.11 $3.09 $4.76 FY 2015 FY 2020 FYTD 2020 FYTD 2021 65 Long-term growth: Earnings per Share $3.43 $5.83 $3.09 $4.74 FY 2015 FY 2020 FYTD 2020 FYTD 2021 Note: 5-Year CAGR for period FY 2015 – 2020. FYTD 2020 as of March 31, 2020. FYTD 2021 as of March 31, 2021. Charts not to scale. *Adjusted
Slide 66: Long-term growth: Return on Equity
11.5% 11.3% 12.2% 14.4% 16.2% 11.9% 18.1% 12.1% 14.5% 16.0% 16.7% 12.5% 18.2% FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FYTD 2021 Return on Equity Adjusted Return on Equity** Long-term growth: Return on Equity *Six months ended March 31, 2021, annualized. **This is a non-GAAP financial measure
Slide 67: Focusing on financial priorities
Focusing on financial priorities Long-Term Growth Fortify the balance sheet while delivering attractive long-term returns to shareholders Expense Optimization 67 Capital & Liquidity Management
Slide 68: Capital prioritization framework
Capital prioritization framework 68 Organic growth across all of our core businesses Acquisitions that represent good cultural and strategic fits Dividend target of 20-30% of earnings Share repurchases to offset share-based compensation dilution and incremental repurchases on opportunistic basis
Slide 69: Balance sheet highlights
Balance sheet highlights $ in millions, except per share amounts 2Q21 Total assets $ 56,066 RJF corporate cash* $ 1,701 Total equity attributable to RJF $ 7,592 Book value per share $ 55.34 Tangible book value per share** $ 49.42 Weighted-average common and common equivalent shares outstanding – dil
Slide 70: Simple and stable funding and capital base
Bank Deposits, 52% Brokerage Client Payables, 22% Shareholders' Equity, 14% Senior Notes Payable, 4% All Other, 8% Simple and stable funding and capital base ~90% FDIC-InsuredNo preferred equity After recent issuance and redemptions, weighted-average remaining maturity of notes outstanding of ~23 ye
Slide 71: Multiple sources of liquidity
71 Multiple sources of liquidity • $500 million* committed, unsecured corporate revolver (syndicate of 8 banks; February 2026 maturity) • $100 million committed, secured line • Over $2 billion uncommitted, secured repos / lines of inventory financing availability (well-diversified across many instit
Slide 72: Strong capital ratios
Strong capital ratios 5% 10% 15% 20% 25% 30% 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% To ta l C ap it al R at io * Tier 1 Leverage Ratio** Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 RJF Peer 1 Note: Sourced from publicly available information as of March 31, 2021. *Total Capital Ratio is equal to Total Capital div
Slide 73: Key long-term capital and liquidity targets
Key long-term capital and liquidity targets Target Current* Tier 1 leverage ratio for RJF > 10% 12.2% Tier 1 leverage ratio for RJ Bank > 7% 7.5% RJF corporate cash** > $1 B $1.7 B Total debt to book capitalization ratio*** < 32% 21.3% *As of March 31, 2021. **This amount includes cash on hand at th
Slide 74: Tier 1 leverage ratio sensitivity
Tier 1 leverage ratio sensitivity Tier 1 Regulatory Capital ($B) 6.79 6.54 6.29 6.04 5.79 5.54 A ve ra ge A ss et s ($ B ) 55.5 12.2% 11.8% 11.3% 10.9% 10.4% 10.0% 56.5 12.0% 11.6% 11.1% 10.7% 10.2% 9.8% 57.5 11.8% 11.4% 10.9% 10.5% 10.1% 9.6% 58.5 11.6% 11.2% 10.8% 10.3% 9.9% 9.5% 59.5 11.4% 11.0%
Slide 75: Returning capital to shareholders through dividends and share repurchases
Returning capital to shareholders through dividends and share repurchases 57 145 36 752 263 70 103 113 127 151 191 205 109 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FYTD 2021 Share Repurchases* Dividends Paid 1,115 3,164 - 401 9,827 3,352 608 $51.04 $45.69 - $90.59 $76.51 $78.50 $115.22 # of S
Slide 76: Focusing on financial priorities
Focusing on financial priorities Long-Term Growth Fortify the balance sheet while delivering attractive long-term returns to shareholders Expense Optimization 76 Capital & Liquidity Management
Slide 77: Consolidated Non-Interest Expenses
77 Consolidated Non-Interest Expenses* Significant portion of growth-driven variable expenses PCG Financial Advisor Compensation & Benefits, 52% Incentive Compensation, 11% All Other Compensation and Benefits, 20% Communications and Information Processing, 5% Occupancy and Equipment, 3% Business Dev
Slide 78: Advisor retention and transition assistance a significant growth investment
78 Advisor retention and transition assistance (TA) a significant growth investment 3.2% 3.2% 3.9% 3.5% 3.4% 3.4% 3.1% 166 175 246 256 266 273 143 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FYTD 2021 Financial Advisor Retention & TA Amortization Impact to RJF’s Compensation Ratio and Pre-Tax Ma
Slide 79: Financial targets
79 Financial targets < 70% Pre-Tax Margin* Compensation Ratio* Return on Equity Note: These targets are operating targets that exclude any potential non-GAAP items. Achieving these targets could be impacted by various factors. The firm targets above are based on current market / interest rate / tax
Slide 80: Domestic cash sweep balances
Domestic cash sweep balances Clients’ Domestic Cash Sweep Balances and Corresponding Assets (March 31, 2021; $ billions) Brokerage Client Cash / Client Interest Program ($9.5) Raymond James Bank Deposit Program (RJBDP) ($53.3) Client Margin Loans & Segregated Assets ($9.53) Raymond James Bank’s Earn
Slide 81: Interest rate sensitivity: upside from increase in short-term rates
Interest rate sensitivity: upside from increase in short-term interest rates Projected Incremental Net Interest Income and RJBDP Fees from Third-Party Banks from 100 Basis Point Instantaneous Increase in Short-Term Interest Rates* ($ millions) *Reflects instantaneous static balance scenario using ba
Slide 82: Q&A
2021 ANALYST & INVESTOR DAY Q & A Paul Shoukry Chief Financial Officer, Raymond James Financial
Slide 83: Appendix
2021 ANALYST & INVESTOR DAY Appendix
Slide 84: Presenter Biographies
2021 ANALYST & INVESTOR DAY Presenter Biographies
Slide 85: Paul Reilly
Paul Reilly Paul Reilly became chief executive officer of Raymond James Financial in May 2010, after joining the firm’s management team as president and CEO-designate in May 2009. He has served on the firm’s board of directors since 2006. From July 2007 to April 2009, he was executive chairman of Ko
Slide 86: Scott Curtis
Scott Curtis Scott Curtis is president of Raymond James’ Private Client Group, leading the firm’s domestic wealth management businesses that include more than 8,000 employee and independent financial advisors and generate approximately 70% of overall firm revenues. Prior to his current role, he serv
Slide 87: Jim Bunn
Jim Bunn Jim Bunn is the president of Global Equities & Investment Banking and head of Investment Banking for Raymond James. Prior to his current role, Mr. Bunn served as the head of Investment Banking. From 2009 to 2013, Mr. Bunn was a Managing Director and Co-Head of Technology Services group for
Slide 88: Steve Raney
Steve Raney Steve Raney is the chairman and CEO of Raymond James Bank, a wholly-owned subsidiary of Raymond James Financial. Steve also serves as chairman of Raymond James Trust, and is one of the 12 members of Raymond James Financial’s Executive Committee. Steve joined Raymond James Bank in 2006 as
Slide 89: Paul Shoukry
Paul Shoukry Paul Shoukry is chief financial officer and treasurer of Raymond James Financial, Inc. (NYSE: RJF). He is responsible for the overall financial management of the company, including balance sheet management, financial reporting, investor relations, corporate tax, cash management, regulat
Slide 90: Executive Committee
90 Paul Reilly Chairman & CEO Raymond James Financial Bella Loykhter Allaire EVP, Technology & Operations Raymond James & Associates Paul Allison Chairman & CEO Raymond James Limited Steve Raney Chairman & CEO Raymond James Bank John Carson Jr. President Raymond James Financial Jonathan Santelli EVP
Slide 91: Non-GAAP Financial Measures
2021 ANALYST & INVESTOR DAY Non-GAAP Financial Measures
Slide 92: Reconciliation of non-GAAP financial measures to GAAP
Reconciliation of non-GAAP financial measures to GAAP financial measures (continued on next slide) 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 bee
Slide 93: Book value per share
Book value per share As of $ in millions, except per share amounts March 31, 2021 Total equity attributable to Raymond James Financial, Inc. $ 7,592 Less non-GAAP adjustments: Goodwill and identifiable intangible assets, net 868 Deferred tax liabilities, net (56) Tangible common equity attributable
Slide 94: Reconciliation footnotes
(1) Excludes non-controlling interests. (2) The six months ended March 31, 2021 included expenses in our Other segment associated with our acquisition of NWPS Holdings, Inc. and its wholly-owned subsidiaries, which was completed in December 2020, as well as our acquisition of Financo which was compl