Raymond James Financial, Inc. · NYSE:RJF

Raymond James Financial — Q3 2024 Earnings Presentation

29 slides from Raymond James Financial's earnings presentation, Jul 24, 2024

  1. Slide 1: Fiscal 3Q24 Results

    Fiscal 3Q24 Results July 24, 2024

  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 3Q24 highlights

    Fiscal 3Q24 highlights vs. vs. $ in millions, except per share amounts 3Q24 3Q23 2Q24 As reported: Net revenues RECORD $ 3,228 11% 4% Net income available to common shareholders $ 491 33% 4% Earnings per common share — diluted $ 2.31 35% 4% 3Q23 2Q24 Return on common equity — annualized 17.8% 14.9%

  5. Slide 5: Fiscal 3Q24 key metrics

    Fiscal 3Q24 key metrics vs. vs. $ in billions 3Q24 3Q23 2Q24 Client assets under administration RECORD $ 1,476.2 15% 2% Private Client Group (PCG) assets under administration RECORD $ 1,415.7 15% 2% PCG assets in fee-based accounts RECORD $ 820.6 18% 3% Financial assets under management RECORD $ 229

  6. Slide 6: Fiscal 3Q24 segment results

    Fiscal 3Q24 segment results vs. vs. $ in millions 3Q24 3Q23 2Q24 Net revenues: Private Client Group RECORD $ 2,416 11% 3% Capital Markets $ 330 20% 3% Asset Management RECORD $ 265 17% 5% Bank $ 418 (19)% (1)% Consolidated net revenues RECORD $ 3,228 11% 4% Pre-tax income/(loss): Private Client Grou

  7. Slide 7: FYTD 2024 highlights (9 months)

    FYTD 2024 highlights (9 months) vs. $ in millions, except per share amounts FYTD 2024 FYTD 2023 As reported: Net revenues RECORD $ 9,359 9% Net income available to common shareholders RECORD $ 1,462 12% Earnings per common share — diluted RECORD $ 6.85 15% FYTD 2023 Return on common equity — annuali

  8. Slide 8: FYTD 2024 segment results (9 months)

    FYTD 2024 segment results (9 months) vs. $ in millions FYTD 2024 FYTD 2023 Net revenues: Private Client Group RECORD $ 6,983 9% Capital Markets $ 989 13% Asset Management RECORD $ 752 16% Bank $ 1,283 (18)% Consolidated net revenues RECORD $ 9,359 9% Pre-tax income/(loss): Private Client Group RECOR

  9. Slide 9: Financial Review

    Financial Review Paul Shoukry President and Chief Financial Officer, Raymond James Financial 9

  10. Slide 10: Consolidated net revenues

    Consolidated net revenues vs. vs. $ in millions 3Q24 3Q23 2Q24 Asset management and related administrative fees $ 1,611 17% 6% Brokerage revenues 532 15% 1% Account and service fees 328 24% (2)% Investment banking 183 21% 2% Interest income 1,057 7% 1% Other 51 (11)% 65% Total revenues 3,762 14% 3%

  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) Cash Sweep & ESP Balances as a % of Domestic PCG Clients' Domestic Cash Sweep & ESP Balances ($B) 5.2% 5.1% 4.8% 4.6% 4.3% 58.0 56.4 5

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

    Net interest income & RJBDP fees (third-party banks) $ IN MILLIONS 708 711 698 689 672 107 154 152 160 149 601 557 546 529 523 3Q23 4Q23 1Q24 2Q24 3Q24 Firmwide Net Interest Income RJBDP Fees (Third-Party Banks)* Year-over-year change: (5)% Sequential change: (2)% NET INTEREST MARGIN (NIM) AVERAGE Y

  13. Slide 13: Consolidated expenses

    Consolidated expenses TOTAL COMPENSATION RATIO** vs. vs. $ in millions 3Q24 3Q23 2Q24 65.5% 64.7% 63.7% 63.8% Compensation, commissions and benefits $ 2,090 13% 2% 62.0% 65.2% 64.4% Non-compensation expenses: 62.7% 63.4% 61.4% Communications and information processing 166 11% 1% 3Q23 4Q23 1Q24 2Q24

  14. Slide 14: Consolidated pre-tax margin

    Consolidated pre-tax margin 21.7% 20.3% 20.4% 20.7% 20.9% 18.1% 20.0% 19.2% 19.5% 16.7% 3Q23 4Q23 1Q24 2Q24 3Q24 Pre-Tax Margin (GAAP) Adjusted 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 mos

  15. Slide 15: Other financial information

    Other financial information vs. vs. $ in millions, except per share amounts 3Q24 3Q23 2Q24 Total assets $ 80,628 4% (1)% RJF corporate cash* $ 2,109 23% 4% Total common equity attributable to RJF $ 11,118 13% 2% Book value per share $ 54.08 14% 3% Tangible book value per share** $ 45.57 18% 3% Weigh

  16. Slide 16: Capital management

    Capital management DIVIDENDS PAID AND SHARE REPURCHASES $ IN MILLIONS Share Repurchases* Dividends Paid** 390 337 90 302 94 $1.4B 245 95 of dividends paid and 95 share repurchases over 300 88 243 the past 5 quarters 207 150 88 3Q23 4Q23 1Q24 2Q24 3Q24 ~$945M Number of Shares remains under current Re

  17. Slide 17: Bank segment key credit trends

    Bank segment key credit trends vs. vs. $ in millions 3Q24 3Q23 2Q24 Bank loan provision/(benefit) for credit losses $ (10) NM NM Net charge-offs $ 6 (60)% (79)% 3Q23 2Q24 Nonperforming assets as a % of total assets 0.26% 0.21% 0.31% Bank loan allowance for credit losses as a % of loans held for inve

  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 Nine months ended June 30, September 30, December 31, March 31, June 30, June 30, June 30, $ in millions 2023 2023 2023 2024 2024 2023 2024 Net income available to common shareholders $ 369 $ 432

  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 June 30, September 30, December 31, March 31, June 30, 2023 2023 2023 2024 2024 Pre-tax margin (4) 16.7 % 19.2 % 20.9 % 19.5 % 20.0 % Impact of non-GAAP adjustments on pre-tax margin: Expenses rel

  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 June 30, September 30, December 31, March 31, June 30, $ in millions 2023 2023 2023 2024 2024 Compensation, commissions and benefits expense $ 1,851 $ 1,892 $ 1,921 $ 2,043 $ 2,090 (1) Less: Total

  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 Nine months ended June 30, March 31, June 30, June 30, June 30, Earnings per common share (6) 2023 2024 2024 2023 2024 Basic $ 1.75 $ 2.27 $ 2.37 $ 6.09 $ 7.02 Impact of non-GAAP adjustments on ba

  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 Nine months ended June 30, March 31, June 30, June 30, June 30, Earnings per common share (6) 2023 2024 2024 2023 2024 Diluted $ 1.71 $ 2.22 $ 2.31 $ 5.95 $ 6.85 Impact of non-GAAP adjustments on

  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 June 30, March 31, June 30, $ in millions, except per share amounts 2023 2024 2024 Total common equity attributable to Raymond James Financial, Inc. $ 9,870 $ 10,905 $ 11,118 Less non-GAAP

  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 Nine months ended June 30, March 31, June 30, June 30, June 30, $ in millions 2023 2024 2024 2023 2024 Average common equity (8) $ 9,873 $ 10,808 $ 11,012 $ 9,705 $ 10,717

  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 Nine months ended June 30, March 31, June 30, June 30, June 30, $ in millions 2023 2024 2024 2023 2024 Average common equity (8) $ 9,873 $ 10,808 $ 11,012 $ 9,705

  29. Slide 29: Footnotes

    Footnotes (1) Includes acquisition-related compensation expenses primarily 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 wh

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