Raymond James Financial, Inc. · NYSE:RJF
Raymond James Financial — Q3 FY2021 Earnings Presentation
22 slides from Raymond James Financial's earnings presentation, Jul 28, 2021
Slide 1: Fiscal 3Q21 Results
FISCAL 3Q21 RESULTS July 28, 2021
Slide 2: Overview of Results
2 Paul Reilly Chairman & CEO, Raymond James Financial OVERVIEW OF RESULTS
Slide 3: Fiscal 3Q21 Highlights
3 * These are non-GAAP measures. See the schedule in the Appendix of this presentation for a reconciliation of our non-GAAP measures to the most directly comparable GAAP measures and for more information on these measures. There were no non-GAAP adjustments to earnings in 3Q20 and 2Q21; therefore pe
Slide 4: Fiscal 3Q21 Key Metrics
4 FISCAL 3Q21 KEY METRICS $ in billions 3Q21 vs. 3Q20 vs. 2Q21 Client assets under administration RECORD $ 1,165.0 33% 7% Private Client Group (PCG) assets under administration RECORD $ 1,102.9 32% 7% PCG assets in fee-based accounts RECORD $ 616.7 39% 9% Financial assets under management RECORD $ 1
Slide 5: Fiscal 3Q21 Segment Results
5 FISCAL 3Q21 SEGMENT RESULTS $ in millions 3Q21 vs. 3Q20 vs. 2Q21 Net Revenues: Private Client Group RECORD $ 1,696 36% 3% Capital Markets $ 446 38% 3% Asset Management RECORD $ 225 38% 8% Raymond James Bank $ 169 (5)% 6% Consolidated net revenues RECORD $ 2,471 35% 4% Pre-Tax Income: Private Clien
Slide 6: FYTD 2021 Highlights (9 months)
6 FYTD 2021 HIGHLIGHTS (9 months) $ in millions, except per share amounts FYTD 2021 vs. FYTD 2020 As Reported: Net revenues RECORD $ 7,065 20% Net income RECORD $ 974 60% Earnings per common share - diluted RECORD $ 6.92 60% FYTD 2020 Return on equity 17.4 % 11.9% vs. FYTD 2020 Non-GAAP Measures:* A
Slide 7: FYTD 2021 Segment Results (9 months)
7 FYTD 2021 SEGMENT RESULTS (9 months) $ in millions FYTD 2021 vs. FYTD 2020 Net Revenues: Private Client Group RECORD $ 4,810 16% Capital Markets RECORD $ 1,331 51% Asset Management RECORD $ 629 18% Raymond James Bank $ 496 (18)% Consolidated net revenues RECORD $ 7,065 20% Pre-Tax Income: Private
Slide 8: Financial Review
8 Paul Shoukry Chief Financial Officer, Raymond James Financial FINANCIAL REVIEW
Slide 9: Consolidated Net Revenues
9 CONSOLIDATED NET REVENUES $ in millions 3Q21 vs. 3Q20 vs. 2Q21 Asset management and related administrative fees $ 1,262 46% 8% Brokerage revenues 552 14% (7)% Account and service fees 161 20% 1% Investment banking 276 99% 14% Interest income 205 (6)% 3% Other* 55 67% 25% Total revenues 2,511 34% 4
Slide 10: Domestic Cash Sweep Balances
10 Note: May not total due to rounding. * Raymond James Bank Deposit Program (RJBDP) is 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 various third-party banks. C lie nt s' D om es tic
Slide 11: Net Interest Income & RJBDP Fees (Third-Party Banks)
11 NET INTEREST INCOME & RJBDP FEES (THIRD-PARTY BANKS) * As reported in Account and Service Fees in the PCG segment. ** 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 balance
Slide 12: Consolidated Expenses
12 CONSOLIDATED EXPENSES $ in millions 3Q21 vs. 3Q20 vs. 2Q21 Compensation, commissions and benefits $ 1,661 30% 1% Non-compensation expenses: Communications and information processing 109 9% 2% Occupancy and equipment 58 5% 2% Business development 31 48% 48% Investment sub-advisory fees 34 48% 10%
Slide 13: Consolidated Pre-Tax Margin
13 * 4Q20 included a $7M loss in our Capital Markets segment related to the sale of our interests in certain entities that operated predominantly in France, which closed during 1Q21, and $46M in our Other segment related to the reduction in workforce expenses associated with position eliminations th
Slide 14: Other Financial Information
14 OTHER FINANCIAL INFORMATION $ in millions, except per share amounts 3Q21 vs. 3Q20 vs. 2Q21 Total assets $ 57,161 28% 2% RJF corporate cash* $ 1,557 (27)% (8)% Total equity attributable to RJF $ 7,863 13% 4% Book value per share $ 57.44 13% 4% Tangible book value per share** $ 51.55 10% 4% Weighte
Slide 15: Capital Management
15 Dividends Paid and Share Repurchases* $ in millions 51 101 65 114 102 50 10 60 4851 51 55 54 54 Share Repurchases* Dividends Paid 3Q20 4Q20 1Q21 2Q21 3Q21 CAPITAL MANAGEMENT $632 million remains under current share repurchase authorization Number of Shares Repurchased* (thousands) — 678 108 500 3
Slide 16: Raymond James Bank Key Credit Trends
16 RAYMOND JAMES BANK KEY CREDIT TRENDS $ in millions 3Q21 vs. 3Q20 vs. 2Q21 Bank loan provision/(benefit) for credit losses* $ (19) NM NM Net charge-offs: Charge-offs related to loan sales $ 1 (98)% (50)% All other 3 (73)% NM Total net charge-offs $ 4 (94)% 100% 3Q20 2Q21 Nonperforming assets as a
Slide 17: Outlook
7 OUTLOOK RAYMOND JAMES
Slide 18: Appendix
APPENDIX 6 RAYMOND JAMES
Slide 19: Non-GAAP Reconciliation: Net Income and Pre-Tax Income
19 Note: Please refer to the footnotes on slide 22 for additional information. Three months ended Nine months ended $ in millions September 30, 2020 December 31, 2020 June 30, 2021 June 30, 2019 June 30, 2021 Net income $ 209 $ 312 $ 307 $ 769 $ 974 Non-GAAP adjustments: Losses on extinguishment of
Slide 20: Book Value per Share and Earnings per Share Reconciliation
20 Book value per share (6) As of $ in millions, except per share amounts June 30, 2020 March 31, 2021 June 30, 2021 Total equity attributable to Raymond James Financial, Inc. $ 6,965 $ 7,592 $ 7,863 Less non-GAAP adjustments: Goodwill and identifiable intangible assets, net 602 868 862 Deferred tax
Slide 21: Return on Equity Reconciliation
21 Return on equity Three months ended Nine months ended $ in millions June 30, 2020 March 31, 2021 June 30, 2021 June 30, 2020 June 30, 2021 Average equity (7) $ 6,882 $ 7,478 $ 7,728 $ 6,797 $ 7,483 Impact on average equity of non-GAAP adjustments: Losses on extinguishment of debt (1) NA NA 49 NA
Slide 22: Footnotes
22 FOOTNOTES (1) Losses on extinguishment of debt as presented in the Condensed Consolidated Statements of Income include make-whole premiums, the accelerated amortization of debt issuance costs, and certain legal and other professional fees associated with the redemptions of our $250 million of 5.6
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