Raymond James Financial, Inc. · NYSE:RJF
Raymond James Financial — Q1 FY2023 Earnings Presentation
27 slides from Raymond James Financial's earnings presentation, Jan 25, 2023
Slide 1: Fiscal 1Q23 Results
Fiscal 1Q23 Results January 25, 2023
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
Slide 3: Overview of Results
Overview of Results Paul Reilly Chair & CEO, Raymond James Financial 3
Slide 4: Fiscal 1Q23 highlights
Fiscal 1Q23 highlights 4 *These are non-GAAP measures. See the schedules 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. Certain non-GAAP financial measures have been adjusted
Slide 5: Fiscal 1Q23 key metrics
Fiscal 1Q23 key metrics 5 $ in billions 1Q23 vs. 1Q22 vs. 4Q22 Client assets under administration $ 1,169.7 (7)% 7% Private Client Group (PCG) assets under administration $ 1,114.3 (7)% 7% PCG assets in fee-based accounts $ 633.1 (7)% 8% Financial assets under management $ 185.9 (9)% 7% Domestic PCG
Slide 6: Fiscal 1Q23 segment results
Note: Segments do not total consolidated results because of the Other segment and intersegment eliminations not shown. Starting in 3Q22, the Bank Segment results include Raymond James Bank and TriState Capital Bank. Fiscal 1Q23 segment results 6 $ in millions 1Q23 vs. 1Q22 vs. 4Q22 Net revenues: Pri
Slide 7: Financial Review
Financial Review Paul Shoukry Chief Financial Officer, Raymond James Financial 7
Slide 8: Consolidated net revenues
Consolidated net revenues 8 $ in millions 1Q23 vs. 1Q22 vs. 4Q22 Asset management and related administrative fees $ 1,242 (10)% (4)% Brokerage revenues 484 (13)% 1% Account and service fees 289 63% 9% Investment banking 141 (67)% (35)% Interest income 827 268% 24% Other 44 (14)% (45)% Total revenues
Slide 9: Domestic cash sweep balances
Domestic cash sweep balances 9 C lie nt s' D om es tic C as h S w ee p B al an ce s ($ B ) C ash S w eep B alances as a % of D om estic P C G A U A CLIENTS' DOMESTIC CASH SWEEP BALANCES AS A % OF DOMESTIC PCG ASSETS UNDER ADMINISTRATION (AUA) 33.1 33.6 36.6 38.7 39.1 24.3 25.9 25.5 22.0 18.2 16.1 17
Slide 10: Net interest income & RJBDP fees (third-party banks)
Net interest income & RJBDP fees (third-party banks) 10 Note: Starting in 3Q22, the Bank Segment results include Raymond James Bank and TriState Capital Bank. *As reported in Account and Service Fees in the PCG segment. **Computed by dividing annualized RJBDP Fees (Third-Party Banks), which are net
Slide 11: Consolidated expenses
Consolidated expenses 11 $ in millions 1Q23 vs. 1Q22 vs. 4Q22 Compensation, commissions and benefits $ 1,736 (8)% (1)% Non-compensation expenses: Communications and information processing 139 24% 1% Occupancy and equipment 66 12% —% Business development 56 60% (5)% Investment sub-advisory fees 34 (1
Slide 12: Consolidated pre-tax margin
* 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 most directly comparable GAAP measures and for more information on these measures. Consolidated pre-tax margin 12 20.1% 16.2% 15.3% 23.4% 20.8% 17.4% 17.7% 22.8%
Slide 13: Other financial information
Other financial information 13 *This amount includes cash on hand at the parent, as well as parent cash loaned to Raymond James & Associates ("RJ&A"), which RJ&A has invested on behalf of RJF in cash and cash equivalents or otherwise deployed in its normal business activities. **This is a non-GAAP m
Slide 14: Capital management
$654M of dividends paid and share repurchases over the past 5 quarters Capital management 14 DIVIDENDS PAID AND SHARE REPURCHASES $ IN MILLIONS 60 71 171 135 217 — — 100 62 138 60 71 71 73 79 Share Repurchases* Dividends Paid** 1Q22 2Q22 3Q22 4Q22 1Q23 Number of Shares Repurchased* (thousands) — — 1
Slide 15: Bank segment key credit trends
Bank segment key credit trends 15 $ in millions 1Q23 vs. 1Q22 vs. 4Q22 Bank loan provision/(benefit) for credit losses $ 14 NM (59)% Net charge-offs $ 2 100% (86)% 1Q22 4Q22 Nonperforming assets as a % of total assets 0.11 % 0.20% 0.13% Bank loan allowance for credit losses as a % of loans held for
Slide 16: Outlook
Outlook RAYMOND JAMES
Slide 17: Appendix
Appendix RAYMOND JAMES
Slide 18: Reconciliation of non-GAAP to GAAP financial measures (unaudited)
Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited) 18 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 separate
Slide 19: Reconciliation of non-GAAP to GAAP financial measures (unaudited)
Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited) Note: Please refer to the footnotes on slide 27 for additional information. continued on next slide19 Three months ended $ in millions December 31, 2021 March 31, 2022 June 30, 2022 September 30, 2022 December 31, 2
Slide 20: Reconciliation of non-GAAP to GAAP financial measures (unaudited)
Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited) Three months ended $ in millions December 31, 2021 March 31, 2022 June 30, 2022 September 30, 2022 December 31, 2022 Pre-tax margin (5) 20.1 % 16.2 % 15.3 % 21.8 % 23.4 % Impact of non-GAAP adjustments on pre-tax ma
Slide 21: Reconciliation of non-GAAP to GAAP financial measures (unaudited)
Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited) 21 Note: Please refer to the footnotes on slide 27 for additional information. continued on next slide Three months ended December 31, 2021 March 31, 2022 June 30, 2022 September 30, 2022 December 31, 2022 Total com
Slide 22: Reconciliation of non-GAAP to GAAP financial measures (unaudited)
Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited) 22 Note: Please refer to the footnotes on slide 27 for additional information. Three months ended Earnings per common share (7) December 31, 2021 September 30, 2022 December 31, 2022 Basic $ 2.16 $ 2.03 2.36 Impact
Slide 23: Reconciliation of non-GAAP to GAAP financial measures (unaudited)
Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited) 23 Note: Please refer to the footnotes on slide 27 for additional information. continued on next slide Three months ended Earnings per common share (7) December 31, 2021 September 30, 2022 December 31, 2022 Diluted
Slide 24: Reconciliation of non-GAAP to GAAP financial measures (unaudited)
Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited) 24 Note: Please refer to the footnotes on slide 27 for additional information. continued on next slide Book value per share As of $ in millions, except per share amounts December 31, 2021 September 30, 2022 December
Slide 25: Reconciliation of non-GAAP to GAAP financial measures (unaudited)
Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited) 25 Note: Please refer to the footnotes on slide 27 for additional information. Return on common equity Three months ended $ in millions December 31, 2021 September 30, 2022 December 31, 2022 Average common equity (9
Slide 26: Reconciliation of non-GAAP to GAAP financial measures (unaudited)
Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited) 26 Note: Please refer to the footnotes on slide 27 for additional information. Return on equity Three months ended $ in millions December 31, 2021 September 30, 2022 December 31, 2022 Average common equity (9) $ 8,4
Slide 27: Footnotes
Footnotes 27 (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 joine
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