Raymond James Financial, Inc. · NYSE:RJF

Raymond James Financial — Q4 2023 Earnings Presentation

29 slides from Raymond James Financial's earnings presentation, Oct 25, 2023

  1. Slide 1: Fourth Quarter & Fiscal 2023 Results

    Fourth Quarter & Fiscal 2023 Results October 25, 2023

  2. Slide 2: Forward-looking statements

    Forward-looking statements Certain statements made in this presentation and the associated conference call may constitute “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information concerning future strategic objectives, bu

  3. Slide 3: Overview of Results

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

  4. Slide 4: Fiscal 4Q23 highlights

    Fiscal 4Q23 highlights vs. vs. $ in millions, except per share amounts 4Q23 4Q22 3Q23 As reported: Net revenues RECORD $ 3,053 8% 5% Net income available to common shareholders $ 432 (1)% 17% Earnings per common share - diluted $ 2.02 2% 18% 4Q22 3Q23 Return on common equity 17.3% 18.7% 14.9% vs. vs

  5. Slide 5: Fiscal 4Q23 key metrics

    Fiscal 4Q23 key metrics vs. vs. $ in billions 4Q23 4Q22 3Q23 Client assets under administration $ 1,256.5 15% (2)% Private Client Group (PCG) assets under administration $ 1,201.2 16% (2)% PCG assets in fee-based accounts $ 683.2 17% (2)% Financial assets under management $ 196.4 13% (2)% Total clie

  6. Slide 6: Fiscal 4Q23 segment results

    Fiscal 4Q23 segment results vs. vs. $ in millions 4Q23 4Q22 3Q23 Net revenues: Private Client Group RECORD $ 2,265 14% 4% Capital Markets $ 341 (15)% 24% Asset Management $ 236 9% 4% Bank $ 451 5% (12)% Consolidated net revenues RECORD $ 3,053 8% 5% Pre-tax income/(loss): Private Client Group RECORD

  7. Slide 7: FY 2023 highlights

    FY 2023 highlights vs. $ in millions, except per share amounts FY 2023 FY 2022 As reported: Net revenues RECORD $ 11,619 6% Net income available to common shareholders RECORD $ 1,733 15% Earnings per common share - diluted RECORD $ 7.97 14% FY 2022 Return on common equity 17.7% 17.0% vs. FY 2022 Non

  8. Slide 8: FY 2023 segment results

    FY 2023 segment results vs. $ in millions FY 2023 FY 2022 Net revenues: Private Client Group RECORD $ 8,654 12% Capital Markets $ 1,214 (33)% Asset Management $ 885 (3)% Bank RECORD $ 2,013 86% Consolidated net revenues RECORD $ 11,619 6% Pre-tax income/(loss): Private Client Group RECORD $ 1,763 71

  9. Slide 9: Financial Review

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

  10. Slide 10: Consolidated net revenues

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

  11. Slide 11: Domestic cash sweep and ESP balances

    Domestic cash sweep and ESP balances CLIENTS' DOMESTIC CASH SWEEP & ENHANCED SAVINGS PROGRAM (ESP)* BALANCES AS A % OF DOMESTIC PCG ASSETS UNDER ADMINISTRATION (AUA) Cash Sweep & ESP Balances as a % of Domestic PCG Clients' Domestic Cash Sweep & ESP Balances ($B) 7.0% 5.9% 67.1 5.2% 5.1% 4.9% 60.4 6

  12. Slide 12: Net interest income & RJBDP fees (third-party banks)

    Net interest income & RJBDP fees (third-party banks) $ IN MILLIONS 723 731 708 711 606 137 100 107 154 109 586 631 601 557 497 4Q22 1Q23 2Q23 3Q23 4Q23 Firmwide Net Interest Income RJBDP Fees (Third-Party Banks)* Year-over-year change: 17% Sequential change: —% NET INTEREST MARGIN (NIM) AVERAGE YIEL

  13. Slide 13: Consolidated expenses

    Consolidated expenses TOTAL COMPENSATION RATIO** vs. vs. $ in millions 4Q23 4Q22 3Q23 63.3% 63.7% Compensation, commissions and benefits $ 1,892 8% 2% 62.1% 62.3% 62.0% Non-compensation expenses: 62.8% 62.7% 61.5% 61.7% 61.4% Communications and information processing 158 14% 6% 4Q22 1Q23 2Q23 3Q23 4

  14. Slide 14: Consolidated pre-tax margin

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

  15. Slide 15: Other financial information

    Other financial information vs. vs. $ in millions, except per share amounts 4Q23 4Q22 3Q23 Total assets $ 78,360 (3)% 1% RJF corporate cash* $ 2,076 9% 21% Total common equity attributable to RJF $ 10,135 9% 3% Book value per share $ 48.54 12% 3% Tangible book value per share** $ 40.03 14% 3% Weight

  16. Slide 16: Capital management

    Capital management DIVIDENDS PAID AND SHARE REPURCHASES $ IN MILLIONS Share Repurchases* Dividends Paid** 441 390 91 90 $1.3B 217 of dividends paid and 79 135 350 share repurchases over 300 88 the past 5 quarters 73 138 62 88 4Q22 1Q23 2Q23 3Q23 4Q23 $750M Number of Shares remains under current Repu

  17. Slide 17: Bank segment key credit trends

    Bank segment key credit trends vs. vs. $ in millions 4Q23 4Q22 3Q23 Bank loan provision for credit losses $ 36 6% (33)% Net charge-offs $ 17 21% 13% 4Q22 3Q23 Nonperforming assets as a % of total assets 0.21% 0.13% 0.21% Bank loan allowance for credit losses as a % of loans held for investment 1.07%

  18. Slide 18: Outlook

    Outlook RAYMOND JAMES

  19. Slide 19: Appendix

    Appendix RAYMOND JAMES

  20. Slide 20: Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited)

    Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited) We utilize certain non-GAAP financial measures as additional measures to aid in, and enhance, the understanding of our financial results and related measures. These non- GAAP financial measures have been separately

  21. Slide 21: Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited)

    Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited) Three months ended Twelve months ended September 30, December 31, March 31, June 30, September 30, September 30, September 30, $ in millions 2022 2022 2023 2023 2023 2022 2023 Net income available to common sharehol

  22. Slide 22: Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited)

    Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited) Three months ended Twelve months ended September 30, December 31, March 31, June 30, September 30, September 30, September 30, 2022 2022 2023 2023 2023 2022 2023 Pre-tax margin (5) 21.8 % 23.4 % 19.4 % 16.7 % 19.2 %

  23. Slide 23: Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited)

    Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited) Three months ended September 30, December 31, $ in millions 2022 2022 March 31, 2023 June 30, 2023 September 30, 2023 Compensation, commissions and benefits expense $ 1,759 $ 1,736 $ 1,820 $ 1,851 $ 1,892 (1) Less:

  24. Slide 24: Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited)

    Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited) Three months ended Twelve months ended September 30, June 30, September 30, September 30, September 30, Earnings per common share (7) 2022 2023 2023 2022 2023 Basic $ 2.03 $ 1.75 $ 2.07 $ 7.16 $ 8.16 Impact of non-G

  25. Slide 25: Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited)

    Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited) Three months ended Twelve months ended September 30, June 30, September 30, September 30, September 30, Earnings per common share (7) 2022 2023 2023 2022 2023 Diluted $ 1.98 $ 1.71 $ 2.02 $ 6.98 $ 7.97 Impact of non

  26. Slide 26: Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited)

    Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited) Book value per share As of $ in millions, except per share amounts September 30, 2022 June 30, 2023 September 30, 2023 Total common equity attributable to Raymond James Financial, Inc. $ 9,338 $ 9,870 $ 10,135 Less

  27. Slide 27: Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited)

    Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited) Return on common equity Three months ended Twelve months ended September 30, June 30, September 30, September 30, September 30, $ in millions 2022 2023 2023 2022 2023 Average common equity (9) $ 9,367 $ 9,873 $ 10,0

  28. Slide 28: Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited)

    Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited) Return on tangible common equity Three months ended Twelve months ended September 30, June 30, September 30, September 30, September 30, $ in millions 2022 2023 2023 2022 2023 Average common equity (9) $ 9,367 $ 9,8

  29. Slide 29: Footnotes

    Footnotes (1) Includes acquisition-related compensation expenses primarily arising from equity and cash-based retention awards issued in conjunction with acquisitions in prior years. Such retention awards are generally contingent upon the post-closing continuation of service of certain associates wh

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