Raymond James Financial, Inc. · NYSE:RJF
Raymond James Financial — Q2 FY2022 Earnings Presentation
23 slides from Raymond James Financial's earnings presentation, Apr 27, 2022
Slide 1: Fiscal 2Q22 Results
Fiscal 2Q22 Results April 27, 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 Chair & CEO, Raymond James Financial 3
Slide 4: Fiscal 2Q22 highlights
Fiscal 2Q22 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 schedules in the Appendix of this presentation for a reconciliation of our non-GAAP measures to the most di
Slide 5: Fiscal 2Q22 key metrics
Fiscal 2Q22 key metrics 5 $ in billions 2Q22 vs. 2Q21 vs. 1Q22 Client assets under administration* $ 1,256.1 16% 0% Private Client Group (PCG) assets under administration* $ 1,198.3 17% 0% PCG assets in fee-based accounts* RECORD $ 678.0 19% 0% Financial assets under management $ 193.7 9% (5)% Total
Slide 6: Fiscal 2Q22 segment results
Fiscal 2Q22 segment results 6 $ in millions 2Q22 vs. 2Q21 vs. 1Q22 Net revenues: Private Client Group RECORD $ 1,922 17% 5% Capital Markets $ 413 (5)% (33)% Asset Management $ 234 12% (1)% Raymond James Bank $ 197 23% 8% Consolidated net revenues $ 2,673 13% (4)% Pre-tax income: Private Client Group
Slide 7: FYTD 2022 highlights (6 months)
FYTD 2022 highlights (6 months) 7 Note: FYTD 2022 is from the period October 1, 2021 to March 31, 2022. FYTD 2021 is from the period October 1, 2020 to March 31, 2021. All share and per share information has been retroactively adjusted to reflect the September 21, 2021 3-for-2 stock split. * These a
Slide 8: FYTD 2022 segment results (6 months)
FYTD 2022 segment results (6 months) 8 $ in millions FYTD 2022 vs. FYTD 2021 Net Revenues: Private Client Group RECORD $ 3,761 21% Capital Markets RECORD $ 1,027 16% Asset Management RECORD $ 470 16% Raymond James Bank $ 380 16% Consolidated net revenues RECORD $ 5,454 19% Pre-Tax Income: Private Cl
Slide 9: Financial Review
Financial Review Paul Shoukry Chief Financial Officer, Raymond James Financial 9
Slide 10: Consolidated net revenues
Consolidated net revenues 10 $ in millions 2Q22 vs. 2Q21 vs. 1Q22 Asset management and related administrative fees $ 1,464 25% 6% Brokerage revenues 564 (5)% 1% Account and service fees 179 13% 1% Investment banking 235 (3)% (45)% Interest income 242 21% 8% Other 27 (39)% (47)% Total revenues 2,711
Slide 11: Domestic cash sweep balances
Domestic cash sweep balances 11 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) 28.2 29.3 31.4 33.1 33.6 25.1 25.1 24.5 24.3 25.9 9.5 8.
Slide 12: Net interest income & RJBDP fees (third-party banks)
Net interest income & RJBDP fees (third-party banks) 12 * 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 13: Consolidated expenses
Consolidated expenses 13 $ in millions 2Q22 vs. 2Q21 vs. 1Q22 Compensation, commissions and benefits $ 1,852 12% (2)% Non-compensation expenses: Communications and information processing 127 19% 13% Occupancy and equipment 62 9% 5% Business development 34 62% (3)% Investment sub-advisory fees 40 29%
Slide 14: Consolidated pre-tax margin
Consolidated pre-tax margin 14 18.8% 15.6% 20.8% 20.1% 16.2% 19.8% 21.2% 20.3% 16.6% Pre-Tax Margin (GAAP) Pre-Tax Margin (Adjusted) 2Q21 3Q21 4Q21 1Q22 2Q22 (1) 3Q21 included certain acquisition-related expenses in our Capital Markets and Other segments and losses on extinguishment of debt in our O
Slide 15: Other financial information
Other financial information 15 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 16: Capital management: dividends paid and share repurchases
$401M of dividends paid and share repurchases over the past 5 quarters Capital management 16 DIVIDENDS PAID AND SHARE REPURCHASES* $ IN MILLIONS 114 102 54 60 71 60 48 54 54 54 60 71 Share Repurchases* Dividends Paid 2Q21 3Q21 4Q21 1Q22 2Q22 Number of Shares Repurchased* (thousands) 750 563 — — — Av
Slide 17: Raymond James Bank key credit trends
Raymond James Bank key credit trends 17 $ in millions 2Q22 vs. 2Q21 vs. 1Q22 Bank loan provision/(benefit) for credit losses $ 21 NM NM Net charge-offs $ 1 (50)% —% 2Q21 1Q22 Nonperforming assets as a % of total assets 0.27 % 0.09% 0.19% Bank loan allowance for credit losses as a % of loans held for
Slide 18: Outlook
Outlook RAYMOND JAMES
Slide 19: Appendix
Appendix RAYMOND JAMES
Slide 20: Reconciliation of non-GAAP financial measures to GAAP
Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited) 20 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 21: Reconciliation of non-GAAP financial measures to GAAP
Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited) 21 Note: Please refer to the footnotes on slide 23 for additional information. Three months ended Six months ended Earnings per common share (4) (5) December 31, 2021 March 31, 2022 March 31, 2021 March 31, 2022 Bas
Slide 22: Reconciliation of non-GAAP financial measures to GAAP
Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited) 22 Note: Please refer to the footnotes on slide 23 for additional information. Return on equity Three months ended Six months ended $ in millions March 31, 2021 December 31, 2021 March 31, 2022 March 31, 2021 March
Slide 23: Footnotes
Footnotes 23 (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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