Raymond James Financial, Inc. · NYSE:RJF
Raymond James Financial — Q2 FY2021 Earnings Presentation
22 slides from Raymond James Financial's earnings presentation, Apr 28, 2021
Slide 1: Fiscal 2Q21 Results
FISCAL 2Q21 RESULTS April 28, 2021
Slide 2: Overview of Results
2 Paul Reilly Chairman & CEO, Raymond James Financial OVERVIEW OF RESULTS
Slide 3: Fiscal 2Q21 Highlights
3 * This is a non-GAAP measure. 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. FISCAL 2Q21 HIGHLIGHTS $ in millions, except per share amounts 2Q21 vs. 2Q20 v
Slide 4: Fiscal 2Q21 Key Metrics
4 FISCAL 2Q21 KEY METRICS $ in billions 2Q21 vs. 2Q20 vs. 1Q21 Client assets under administration RECORD $ 1,085.4 40% 6% Private Client Group (PCG) assets under administration RECORD $ 1,028.1 40% 6% PCG assets in fee-based accounts RECORD $ 567.6 48% 7% Financial assets under management RECORD $ 1
Slide 5: Fiscal 2Q21 Segment Results
5 FISCAL 2Q21 SEGMENT RESULTS $ in millions 2Q21 vs. 2Q20 vs. 1Q21 Net Revenues: Private Client Group RECORD $ 1,647 10% 12% Capital Markets $ 433 49% (4)% Asset Management RECORD $ 209 14% 7% Raymond James Bank $ 160 (24)% (4)% Consolidated net revenues RECORD $ 2,372 15% 7% Pre-Tax Income: Private
Slide 6: FYTD 2021 Highlights (6 months)
6 FYTD 2021 HIGHLIGHTS (6 months) $ in millions, except per share amounts FYTD 2021 vs. FYTD 2020 As Reported: Net revenues RECORD $ 4,594 13% Net income RECORD $ 667 53% Earnings per common share - diluted RECORD $ 4.74 53% FYTD 2020 Return on equity 18.1 % 13.0% vs. FYTD 2020 Non-GAAP Measures:* A
Slide 7: FYTD 2021 Segment Results (6 months)
7 FYTD 2021 SEGMENT RESULTS (6 months) $ in millions FYTD 2021 vs. FYTD 2020 Net Revenues: Private Client Group RECORD $ 3,114 7% Capital Markets RECORD $ 885 59% Asset Management RECORD $ 404 10% Raymond James Bank $ 327 (23)% Consolidated net revenues RECORD $ 4,594 13% Pre-Tax Income: Private Cli
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 2Q21 vs. 2Q20 vs. 1Q21 Asset management and related administrative fees $ 1,173 17% 10% Brokerage revenues 591 15% 12% Account and service fees 159 (8)% 10% Investment banking 242 64% (7)% Interest income 200 (30)% (1)% Other 44 NM (21)% Total revenues 2,409
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 2Q21 vs. 2Q20 vs. 1Q21 Compensation, commissions and benefits $ 1,648 16% 10% Non-compensation expenses: Communications and information processing 107 8% 8% Occupancy and equipment 57 2% —% Business development 21 (49)% (9)% Investment sub-advisory fees 31 19%
Slide 13: Consolidated Pre-Tax Margin
13 * 4Q20 included a $7 M 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 $46 M in our Other segment related to the reduction in workforce expenses associated with position eliminations
Slide 14: Other Financial Information
14 OTHER FINANCIAL INFORMATION $ in millions, except per share amounts 2Q21 vs. 2Q20 vs. 1Q21 Total assets $ 56,066 13% 4% RJF corporate cash* $ 1,701 (12)% (5)% Total equity attributable to RJF $ 7,592 12% 3% Book value per share $ 55.34 11% 3% Tangible book value per share** $ 49.42 9% 3% Weighted
Slide 15: Capital Management
15 Dividends Paid and Share Repurchases* $ in millions 254 51 101 65 114 202 50 60 52 51 51 55 54 Share Repurchases* Dividends Paid 2Q20 3Q20 4Q20 1Q21 2Q21 CAPITAL MANAGEMENT $680 million remains under current share repurchase authorization Number of Shares Repurchased* (thousands) 2,548 — 678 108
Slide 16: Raymond James Bank Key Credit Trends
16 RAYMOND JAMES BANK KEY CREDIT TRENDS $ in millions 2Q21 vs. 2Q20 vs. 1Q21 Bank loan provision/(benefit) for credit losses* $ (32) NM NM Net charge-offs: Charge-offs related to loan sales $ 2 NM NM All other — — — Total net charge-offs $ 2 NM NM 2Q20 1Q21 Nonperforming assets as a % of total asset
Slide 17: Outlook
7 OUTLOOK RAYMOND JAMES
Slide 18: Appendix
APPENDIX 6 RAYMOND JAMES
Slide 19: Non-GAAP Reconciliation: Net Income and Pre-Tax Margin
19 Note: Please refer to the footnotes on slide 22 for additional information. Three months ended Six months ended $ in millions September 30, 2020 December 31, 2020 March 31, 2021 Net income $ 209 $ 312 $ 667 Non-GAAP adjustments: Acquisition and disposition-related expenses (1) 7 2 2 Reduction in
Slide 20: Non-GAAP Reconciliation: Book Value and Earnings per Share
20 Note: Please refer to the footnotes on slide 22 for additional information. Book value per share As of $ in millions, except per share amounts March 31, 2020 December 31, 2020 March 31, 2021 Total equity attributable to Raymond James Financial, Inc. $ 6,798 $ 7,363 $ 7,592 Less non-GAAP adjustmen
Slide 21: Non-GAAP Reconciliation: Return on Equity
21 Note: Please refer to the footnotes on slide 22 for additional information. Return on equity Three months ended Six months ended $ in millions March 31, 2020 December 31, 2020 March 31, 2021 March 31, 2020 March 31, 2021 Average equity (6) $ 6,820 $ 7,239 $ 7,478 $ 6,740 $ 7,356 Impact on average
Slide 22: Footnotes
22 FOOTNOTES (1) The three months ended September 30, 2020 included a $7 million loss in our Capital Markets segment related to the sale of our interests in certain entities that operated predominantly in France, which closed during our fiscal first quarter of 2021. The three months ended December 3
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