Raymond James Financial, Inc. · NYSE:RJF

Raymond James Financial — Q4 2020 Earnings Presentation

24 slides from Raymond James Financial's earnings presentation, Oct 28, 2020

  1. Slide 1: Fourth Quarter & Fiscal 2020 Results

    FOURTH QUARTER & FISCAL 2020 RESULTS October 2020

  2. Slide 2: Overview of Results

    OVERVIEW OF RESULTS Paul Reilly Chairman & CEO, Raymond James Financial 2

  3. Slide 3: Fiscal 4Q20 Highlights

    FISCAL 4Q20 HIGHLIGHTS vs. vs. $ in millions, except per share amounts 4Q20 4Q19 3Q20 As Reported: Net revenues RECORD $ 2,079 3% 13% Net income $ 209 (21)% 22% Earnings per common share - diluted $ 1.50 (19)% 22% 4Q19 3Q20 Return on equity 11.9 % 16.2% 10.0% vs. vs. 4Q19 3Q20 Non-GAAP Measures:* Ad

  4. Slide 4: FY 2020 Highlights

    FY 2020 HIGHLIGHTS vs. $ in millions, except per share amounts FY 2020 FY 2019 As Reported: Net revenues RECORD $ 7,990 3% Net income $ 818 (21)% Earnings per common share - diluted $ 5.83 (19)% FY 2019 Return on equity 11.9 % 16.2% vs. FY 2019 Non-GAAP Measures:* Adjusted net income $ 858 (20)% Adj

  5. Slide 5: Fiscal 4Q20 Key Metrics

    FISCAL 4Q20 KEY METRICS vs. vs. $ in billions 4Q20 4Q19 3Q20 Client assets under administration RECORD $ 930.1 11% 6% Private Client Group (PCG) assets under administration RECORD $ 883.3 11% 6% PCG assets in fee-based accounts RECORD $ 475.3 16% 7% Financial assets under management RECORD $ 153.1 7

  6. Slide 6: Fiscal 4Q20 Segment Results

    FISCAL 4Q20 SEGMENT RESULTS vs. vs. $ in millions 4Q20 4Q19 3Q20 Net Revenues: Private Client Group $ 1,394 1% 12% Capital Markets RECORD $ 410 36% 27% Asset Management $ 184 3% 13% Raymond James Bank $ 161 (25)% (10)% Consolidated net revenues RECORD $ 2,079 3% 13% Pre-Tax Income: Private Client Gr

  7. Slide 7: FY 2020 Segment Results

    FY 2020 SEGMENT RESULTS vs. $ in millions FY 2020 FY 2019 Net Revenues: Private Client Group RECORD $ 5,552 4% Capital Markets RECORD $ 1,291 19% Asset Management RECORD $ 715 3% Raymond James Bank $ 765 (10)% Consolidated net revenues RECORD $ 7,990 3% Pre-Tax Income: Private Client Group $ 539 (7)

  8. Slide 8: Financial Review

    FINANCIAL REVIEW Paul Shoukry Chief Financial Officer, Raymond James Financial 8

  9. Slide 9: Consolidated Net Revenues

    CONSOLIDATED NET REVENUES vs. vs. $ in millions 4Q20 4Q19 3Q20 Asset management and related administrative fees $ 1,006 9% 16% Brokerage revenues 495 10% 2% Account and service fees 140 (22)% 4% Investment banking 222 41% 60% Interest income 201 (37)% (7)% Other* 57 4% 73% Total revenues 2,121 2% 13

  10. Slide 10: Domestic Cash Sweep Balances

    DOMESTIC CASH SWEEP BALANCES Clients' Domestic Cash Sweep Balances as a % of Domestic PCG Assets Under Administration (AUA) 7.6% Ca sh Sweep Balances as a % of Domestic PCG AUA 6.6% 6.7% 5.0% 4.9% 55.6 52.9 51.9 4.0 3.8 3.2 37.7 39.5 20.4 26.0 2.0 2.5 24.7 14.0 15.1 28.7 25.6 Cl ients' Domestic Cash

  11. Slide 11: Net Interest Income & RJBDP Fees (Third-Party Banks)

    NET INTEREST INCOME & RJBDP FEES (THIRD-PARTY BANKS) Firmwide Net Interest Income RJBDP Fees (Third-Party Banks)* 323 304 293 65 58 51 195 180 20 21 $ in millions 258 246 242 175 159 4Q19 1Q20 2Q20 3Q20 4Q20 Raymond James Bank Average Yield on RJBDP Net Interest Margin** (Third-Party Banks)*** 3.30%

  12. Slide 12: Consolidated Expenses

    CONSOLIDATED EXPENSES vs. vs. $ in millions 4Q20 4Q19 3Q20 Total Compensation Ratio Compensation, commissions and benefits $ 1,415 7% 11% 68.8% 69.6% Non-compensation expenses: 65.2% 67.2% 68.1% Communications and information processing 100 5% —% Occupancy and equipment 57 (3)% 4% Business developme

  13. Slide 13: PCG Administrative Compensation & Benefits Expense

    PCG ADMINISTRATIVE COMPENSATION & BENEFITS EXPENSE PCG Administrative Compensation & Benefits Expense Year-Over-Year Change 20% 17% 12% 8% 4% FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 13

  14. Slide 14: Consolidated Pre-Tax Margin

    CONSOLIDATED PRE-TAX MARGIN 18.4% 17.9% 17.5% 14.9% 12.3% 11.6% 10.8% 4Q19* 1Q20 2Q20 3Q20 4Q20** Pre-Tax Margin (GAAP) Pre-Tax Margin (Adjusted)*** * 4Q19 included a $19 million goodwill impairment charge associated with our Canadian Capital Markets business. ** 4Q20 included a $7 million loss in o

  15. Slide 15: Other Financial Information

    OTHER FINANCIAL INFORMATION vs. vs. $ in millions, except per share amounts 4Q20 4Q19 3Q20 Total assets $ 47,482 22% 6% RJF corporate cash* $ 2,163 60% 2% Total equity attributable to RJF $ 7,114 8% 2% Book value per share $ 52.08 9% 2% Tangible book value per share** $ 47.94 10% 3% Weighted-average

  16. Slide 16: Capital Management

    CAPITAL MANAGEMENT Dividends Paid and Share Repurchases* $ in millions Share Repurchases* Dividends Paid Total of ~$677 million over the past 5 quarters 254 209 52 48 101 202 161 62** 51 51 51 51 50 4Q19 1Q20 2Q20 3Q20 4Q20 Number of Shares Repurchased* 2,127 126 2,548 — 678 (thousands) Average Shar

  17. Slide 17: Raymond James Bank Asset Composition

    RAYMOND JAMES BANK ASSET COMPOSITION Asset Mix Commercial & Industrial Portfolio (C&I) as of September 30, 2020 • All senior positions; no mezzanine lending • Highly diversified with no industry category representing more than 3.5% of total loans Cash and (e.g. Energy ~1.6%, Restaurants ~1.3%, Airli

  18. Slide 18: Raymond James Bank Key Credit Trends

    RAYMOND JAMES BANK KEY CREDIT TRENDS vs. vs. $ in millions 4Q20 4Q19 3Q20 Bank loan loss provision $ 45 650% (44)% Net charge-offs* $ 26 1,200% (64)% 4Q19 3Q20 Nonperforming assets as a % of total assets 0.10 % 0.18% 0.08% Allowance for loan losses as a % of loans held for investment 1.65 % 1.04% 1.

  19. Slide 19: Outlook

    OUTLOOK RAYMOND JAMES

  20. Slide 20: Appendix

    APPENDIX % RAYMOND JAMES

  21. Slide 21: Reconciliation of GAAP Measures to Non-GAAP Financial Measures

    RECONCILIATION OF GAAP MEASURES TO NON-GAAP FINANCIAL MEASURES (UNAUDITED) We utilize certain non-GAAP financial measures as additional measures to aid in, and enhance, the understanding of our financial results and related measures. These non-GAAP financial measures have been separately identified

  22. Slide 22: Reconciliation of GAAP Measures to Non-GAAP Financial Measures

    RECONCILIATION OF GAAP MEASURES TO NON-GAAP FINANCIAL MEASURES (UNAUDITED) Three months ended Twelve months ended Earnings per common share (5) September 30, 2019 September 30, 2020 September 30, 2019 September 30, 2020 Basic $ 1.90 $ 1.53 $ 7.32 $ 5.94 Non-GAAP adjustments: (1) Acquisition and disp

  23. Slide 23: Reconciliation of GAAP Measures to Non-GAAP Financial Measures

    RECONCILIATION OF GAAP MEASURES TO NON-GAAP FINANCIAL MEASURES (UNAUDITED) Return on equity Three months ended Twelve months ended $ in millions September 30, 2019 June 30, 2020 September 30, 2020 September 30, 2019 September 30, 2020 Average equity (7) $ 6,542 $ 6,882 $ 7,040 $ 6,392 $ 6,860 Impact

  24. Slide 24: Footnotes

    FOOTNOTES 1. The three and twelve months ended September 30, 2020 included a $7 million loss in our Capital Markets segment related to the pending sale of our interests in certain entities that operate predominantly in France. The twelve months ended September 30, 2019 included a $15 million loss in

Raymond James Financial — Q4 2020 Earnings Presentation on 6ix