Raymond James Financial, Inc. · NYSE:RJF

Raymond James Financial — Q2 2023 Earnings Presentation

29 slides from Raymond James Financial's earnings presentation, Apr 26, 2023

  1. Slide 1: Fiscal 2Q23 Results

    Fiscal 2Q23 Results April 26, 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 2Q23 highlights

    Fiscal 2Q23 highlights vs. vs. $ in millions, except per share amounts 2Q23 2Q22 1Q23 As reported: Net revenues RECORD $ 2,873 7% 3% Net income available to common shareholders $ 425 32% (16)% Earnings per common share - diluted $ 1.93 27% (16)% 2Q22 1Q23 Return on common equity 17.3% 15.0% 21.3% vs

  5. Slide 5: Fiscal 2Q23 key metrics

    Fiscal 2Q23 key metrics vs. vs. $ in billions 2Q23 2Q22 1Q23 Client assets under administration $ 1,224.4 (3)% 5% Private Client Group (PCG) assets under administration $ 1,171.1 (2)% 5% PCG assets in fee-based accounts $ 666.3 (2)% 5% Financial assets under management $ 194.4 —% 5% Domestic PCG net

  6. Slide 6: Fiscal 2Q23 segment results

    Fiscal 2Q23 segment results vs. vs. $ in millions 2Q23 2Q22 1Q23 Net revenues: Private Client Group RECORD $ 2,144 12% 4% Capital Markets $ 302 (27)% 2% Asset Management $ 216 (8)% 4% Bank RECORD $ 540 174% 6% Consolidated net revenues $ 2,873 7% 3% Pre-tax income/(loss): Private Client Group RECORD

  7. Slide 7: FYTD 2023 highlights (6 months)

    FYTD 2023 highlights (6 months) vs. $ in millions, except per share amounts FYTD 2023 FYTD 2022 As reported: Net revenues RECORD $ 5,659 4% Net income available to common shareholders RECORD $ 932 21% Earnings per common share - diluted RECORD $ 4.23 17% FYTD 2022 Return on common equity 19.3% 18.1%

  8. Slide 8: FYTD 2023 segment results (6 months)

    FYTD 2023 segment results (6 months) vs. $ in millions FYTD 2022 FYTD 2022 Net revenues: Private Client Group RECORD $ 4,207 12% Capital Markets $ 597 (42)% Asset Management $ 423 (10)% Bank RECORD $ 1,048 176% Consolidated net revenues RECORD $ 5,659 4% Pre-tax income/(loss): Private Client Group R

  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 2Q23 2Q22 1Q23 Asset management and related administrative fees $ 1,302 (11)% 5% Brokerage revenues 496 (12)% 2% Account and service fees 258 44% (11)% Investment banking 154 (34)% 9% Interest income 915 278% 11% Other 32 19% (27)% Total revenues 3,157

  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) 7.8% Cash Sweep & ESP Balances as a % of Domestic PCG Clients' Domestic Cash Sweep & ESP Balances ($B) 7.0% 7.0% 5.9% 76.5 75.8 67.1 4

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

    Net interest income & RJBDP fees (third-party banks) $ IN MILLIONS 723 731 606 137 100 109 370 56 224 586 631 20 497 314 204 2Q22 3Q22 4Q22 1Q23 2Q23 Firmwide Net Interest Income RJBDP Fees (Third-Party Banks)* Year-over-year change: 226% Sequential change: 1% NET INTEREST MARGIN (NIM) AVERAGE YIELD

  13. Slide 13: Consolidated expenses

    Consolidated expenses TOTAL COMPENSATION RATIO** vs. vs. 69.3% $ in millions 2Q23 2Q22 1Q23 67.5% 68.8% 63.3% Compensation, commissions and benefits $ 1,820 (2)% 5% 66.8% 62.1% 62.3% Non-compensation expenses: 62.8% 61.5% 61.7% Communications and information processing 153 20% 10% 2Q22 3Q22 4Q22 1Q2

  14. Slide 14: Consolidated pre-tax margin

    Consolidated pre-tax margin 23.4% 22.8% 23.3% 20.4% 21.8% 17.4% 17.7% 19.4% 16.2% 15.3% 2Q22 3Q22 4Q22 1Q23 2Q23 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

  15. Slide 15: Other financial information

    Other financial information vs. vs. $ in millions, except per share amounts 2Q23 2Q22 1Q23 Total assets $ 79,180 8% 3% RJF corporate cash* $ 1,833 (18)% (9)% Total common equity attributable to RJF $ 9,875 15% 1% Book value per share $ 46.67 13% 3% Tangible book value per share** $ 38.14 5% 3% Weigh

  16. Slide 16: Capital management

    Capital management DIVIDENDS PAID AND SHARE REPURCHASES $ IN MILLIONS Share Repurchases* Dividends Paid** 441 91 $1B 217 of dividends paid and 171 135 79 350 share repurchases over 71 the past 5 quarters 71 73 138 71 100 62 — 2Q22 3Q22 4Q22 1Q23 2Q23 $1.1B Number of Shares remains under current Repu

  17. Slide 17: Bank segment key credit trends

    Bank segment key credit trends vs. vs. $ in millions 2Q23 2Q22 1Q23 Bank loan provision for credit losses $ 28 33% 100% Net charge-offs $ 20 1,900% 900% 2Q22 1Q23 Nonperforming assets as a % of total assets 0.16% 0.27% 0.11% Bank loan allowance for credit losses as a % of loans held for investment 0

  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 Six months ended March 31, June 30, September 30, December 31, March 31, March 31, March 31, $ in millions 2022 2022 2022 2022 2023 2022 2023 Net income available to common shareholders $ 323 $ 29

  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 Six months ended March 31, June 30, September 30, December 31, March 31, March 31, March 31, 2022 2022 2022 2022 2023 2022 2023 Pre-tax margin (5) 16.2 % 15.3 % 21.8 % 23.4 % 19.4 % 18.2 % 21.4 %

  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, $ in millions March 31, 2022 June 30, 2022 2022 December 31, 2022 March 31, 2023 Compensation, commissions and benefits expense 1,852 $ 1,834 $ 1,759 1,736 1,820 Acquisition-related

  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 Six months ended March 31, December 31, March 31, March 31, March 31, Earnings per common share (7) 2022 2022 2023 2022 2023 Basic $ 1.56 $ 2.36 $ 1.97 $ 3.71 $ 4.33 Impact of non-GAAP adjustments

  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 Six months ended March 31, December 31, March 31, March 31, March 31, Earnings per common share (7) 2022 2022 2023 2022 2023 Diluted $ 1.52 $ 2.30 $ 1.93 $ 3.61 $ 4.23 Impact of non-GAAP adjustmen

  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 March 31, 2022 December 31, 2022 March 31, 2023 Total common equity attributable to Raymond James Financial, Inc. $ 8,602 $ 9,736 $ 9,875 Less non-G

  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 Six months ended March 31, December 31, March 31, March 31, March 31, $ in millions 2022 2022 2023 2022 2023 Average common equity (9) $ 8,601 $ 9,537 $ 9,806 $ 8,482 $ 9,6

  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 Six months ended March 31, December 31, March 31, March 31, March 31, $ in millions 2022 2022 2023 2022 2023 Average common equity (9) $ 8,601 $ 9,537 $ 9,806 $ 8,

  29. Slide 29: Footnotes

    Footnotes (1) Includes acquisition-related compensation expenses 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 t

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