Raymond James Financial, Inc. · NYSE:RJF
Raymond James Financial — Q1 FY2022 Earnings Presentation
21 slides from Raymond James Financial's earnings presentation, Jan 26, 2022
Slide 1: Fiscal 1Q22 Results
Fiscal 1Q22 Results January 26, 2022
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 Chairman & CEO, Raymond James Financial 3
Slide 4: Fiscal 1Q22 highlights
Fiscal 1Q22 highlights 4 Note: All share and per share information has been retroactively adjusted to reflect the September 21, 2021 3-for-2 stock split. * 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 dir
Slide 5: Fiscal 1Q22 key metrics
Fiscal 1Q22 key metrics 5 $ in billions 1Q22 vs. 1Q21 vs. 4Q21 Client assets under administration RECORD $ 1,257.8 23% 7% Private Client Group (PCG) assets under administration RECORD $ 1,199.8 23% 8% PCG assets in fee-based accounts RECORD $ 677.8 27% 8% Financial assets under management RECORD $ 2
Slide 6: Fiscal 1Q22 segment results
Fiscal 1Q22 segment results 6 $ in millions 1Q22 vs. 1Q21 vs. 4Q21 Net revenues: Private Client Group RECORD $ 1,839 25% 2% Capital Markets RECORD $ 614 36% 11% Asset Management $ 236 21% (1)% Raymond James Bank $ 183 10% 4% Consolidated net revenues RECORD $ 2,781 25% 3% Pre-tax income: Private Cli
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 1Q22 vs. 1Q21 vs. 4Q21 Asset management and related administrative fees $ 1,382 30% 1% Brokerage revenues 558 6% 3% Account and service fees 177 22% 4% Investment banking 425 63% 17% Interest income 225 11% 5% Other* 51 (9)% (31)% Total revenues 2,818 25% 3%
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) 26.7 28.2 29.3 31.4 33.1 26.1 25.1 25.1 24.5 24.3 8.8 9.5
Slide 10: Net interest income & RJBDP fees (third-party banks)
Net interest income & RJBDP fees (third-party banks) 10 * 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 balances
Slide 11: Consolidated expenses
Consolidated expenses 11 $ in millions 1Q22 vs. 1Q21 vs. 4Q21 Compensation, commissions and benefits $ 1,884 26% 6% Non-compensation expenses: Communications and information processing 112 13% (2)% Occupancy and equipment 59 4% (2)% Business development 35 52% (3)% Investment sub-advisory fees 38 36
Slide 12: Consolidated pre-tax margin
Consolidated pre-tax margin 12 18.0% 18.8% 15.6% 20.8% 20.1% 19.8% 21.2% 20.3% Pre-Tax Margin (GAAP) Pre-Tax Margin (Adjusted) 1Q21 2Q21 3Q21 4Q21 1Q22 (1) 3Q21 included certain acquisition-related expenses in our Capital Markets and Other segments and losses on extinguishment of debt in our Other s
Slide 13: Other financial information
Other financial information 13 Note: All share and per share information has been retroactively adjusted to reflect the September 21, 2021 3-for-2 stock split. * 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 inve
Slide 14: Capital management
$395M of dividends paid and share repurchases over the past 5 quarters Capital management 14 DIVIDENDS PAID AND SHARE REPURCHASES* $ IN MILLIONS 65 114 102 54 60 10 60 48 55 54 54 54 60 Share Repurchases* Dividends Paid 1Q21 2Q21 3Q21 4Q21 1Q22 Number of Shares Repurchased* (thousands) 162 750 563 —
Slide 15: Raymond James Bank key credit trends
Raymond James Bank key credit trends 15 $ in millions 1Q22 vs. 1Q21 vs. 4Q21 Bank loan provision/(benefit) for credit losses $ (11) NM NM Net charge-offs $ 1 NM (86)% 1Q21 4Q21 Nonperforming assets as a % of total assets 0.19 % 0.09% 0.20% Bank loan allowance for credit losses as a % of loans held f
Slide 16: Outlook
Outlook RAYMOND JAMES
Slide 17: Appendix
Appendix RAYMOND JAMES
Slide 18: Reconciliation of non-GAAP financial measures to GAAP financial measures
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 separatel
Slide 19: Reconciliation of non-GAAP financial measures to GAAP financial measures
Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited) 19 Note: Please refer to the footnotes on slide 21 for additional information. Three months ended Earnings per common share (4) (5) December 31, 2020 September 30, 2021 December 31, 2021 Basic $ 1.52 $ 2.08 $ 2.16 N
Slide 20: Reconciliation of non-GAAP financial measures to GAAP financial measures
Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited) 20 Note: Please refer to the footnotes on slide 21 for additional information. Return on equity Three months ended $ in millions December 31, 2020 September 30, 2021 December 31, 2021 Average equity (7) $ 7,239 $ 8,
Slide 21: Footnotes
Footnotes 21 (1) Losses on extinguishment of debt 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 5.625% senior notes due 2024 and our $500 million of 3.625% senior
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