Raymond James Financial, Inc. · NYSE:RJF
Raymond James Financial — Investor Day (May 2015)
110 slides from Raymond James Financial's investor day presentation, May 12, 2015
Slide 1: Raymond James Financial Analyst & Investor Day
Raymond James Financial Analyst & Investor Day May 12, 2015 1
Slide 2: Agenda
2 AGENDA 8:30 AM – 9:00 AM Welcome & General Overview Paul Reilly CEO, Raymond James Financial 9:00 AM – 9:30 AM Private Client Group Tash Elwyn President, Raymond James & Associates – PCG 9:30 AM – 10:00 AM Equity Capital Markets Jeff Trocin President, Global Equities and Investment Banking 10:00 A
Slide 3: Forward Looking Statements
3 FORWARD LOOKING STATEMENTS Certain statements made in this presentation and the associated webcast may constitute “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information concerning future strategic objectives, business
Slide 4: Welcome and General Overview
4 WELCOME AND GENERAL OVERVIEW Paul Reilly CEO, Raymond James Financial
Slide 5: Overview of Raymond James Financial
Private Client Group $3,267mm 67% Capital Markets $966mm 20% Asset Mgmt. $370mm 8% RJ Bank $352mm 7% FY 2014 Net Revenues* $4,861,369,000 OVERVIEW OF RAYMOND JAMES FINANCIAL KEY FACTS (as of March 31, 2015) • Headquartered in St. Petersburg, FL • Founded in 1962; public in 1983 • Approximately 2,600
Slide 6: Continued Profitability
CONTINUED PROFITABILITY 6 Trailing 10 Years E a rni n gs P e r Sha re (B a si c ) 109 Consecutive Profitable Quarters $0.00 $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 J u n -0 5 S e p -0 5 D ec-0 5 M a r- 0 6 J u n -0 6 S e p -0 6 Dec-0 6 M a r- 0 7 J u n -0 7 S e p -0 7 Dec-0 7 M a r- 0 8 J u n -0 8 S e p
Slide 7: RJF Stock Price vs. Sector, Five-Year Change
7 RJF Stock Price vs. Sector, Five-Year Change CONTINUED PROFITABILITY Pe rcen t Cha n g e Five Years Ended March 31, 2015
Slide 8: Values-Based Culture
VALUES-BASED CULTURE 8 INTEGRITY INDEPENDENCE CONSERVATISM CLIENT FIRST
Slide 9: Financial Stability
FINANCIAL STABILITY TOTAL CAPITAL RATIO 20% 2X Regulatory Requirement OVER $1 Billion Cash 9
Slide 10: The Premier Alternative to Wall Street
THE PREMIER ALTERNATIVE TO WALL STREET 10
Slide 11: Strategy
STRATEGY 11 STRENGTHEN Invest in people, processes and technology GROW Refine and expand our offerings, recruit and acquire PROTECT Focus on clients, thoughtful risk management, long-term success
Slide 12: Strengthen: Advisor Retention
STRENGTHEN: ADVISOR RETENTION 12 REGRETTED ATTRITION
Slide 13: Strengthen: Technology Investment
STRENGTHEN: TECHNOLOGY INVESTMENT 13
Slide 14: Grow: Private Client Group
GROW: PRIVATE CLIENT GROUP 14
Slide 15: Grow: Capital Markets
GROW: CAPITAL MARKETS 15 $1,858,550,000 The Regents of the University of California General Revenue Bonds 2013 AI-AK September 2013 PUBLIC FINANCE EXPANSION INVESTMENT BANKING PRACTICE EXPANSION $135,830,000 Los Angeles Unified School District 2014 General Obligation Bonds August 2014
Slide 16: Grow: Asset Management
GROW: ASSET MANAGEMENT 16 INCREASE INTERNAL USE INSTITUTIONAL CONSULTING
Slide 17: Grow: Raymond James Bank
GROW: RAYMOND JAMES BANK 17 SECURITIES-BASED LENDING CANADIAN OPPORTUNITIES TAX-EXEMPT LENDING
Slide 18: Grow: Acquisitions
GROW: ACQUISITIONS RAYMOND JAMES”
Slide 19: Protect: Regulatory Environment
PROTECT: REGULATORY ENVIRONMENT 19
Slide 20: Protect: Values-Based Culture
PROTECT: VALUES-BASED CULTURE 20 INTEGRITY INDEPENDENCE CONSERVATISM CLIENT FIRST
Slide 21: Looking Forward
LOOKING FORWARD RAYMOND JAMES®
Slide 22: Challenges
CHALLENGES RAYMOND JAMES°
Slide 23: Client of the Future
CLIENT OF THE FUTURE RAYMOND JAMES°
Slide 24: Technology Platform of the Future
TECHNOLOGY PLATFORM OF THE FUTURE 24
Slide 25: Advice of the Future
ADVICE OF THE FUTURE RAYMOND JAMES°
Slide 26: Advisor of the Future
ADVISOR OF THE FUTURE RAYMOND JAMES®
Slide 27: The Bionic Advisor
THE BIONIC ADVISOR RAYMOND JAMES®
Slide 28: Premier Alternative to Wall Street
PREMIER ALTERNATIVE TO WALL STREET 28
Slide 29: Private Client Group
PRIVATE CLIENT GROUP Tash Elwyn President, Raymond James & Associates – PCG 29
Slide 30: Private Client Group
PRIVATE CLIENT GROUP 30 The Private Client Group segment includes multiple affiliation options – referred to as AdvisorChoice® – as well as support functions including technology, operations, and practice management.
Slide 31: One of the Largest Private Client Firms
31 Raymond James is one of the largest private client firms in the industry. PRIVATE CLIENT GROUP Rank Firm Client Assets FAs ($B) 1 Bank of America / Merrill Lynch $2,510 16,175 2 Morgan Stanley 2,047 15,915 3 Wells Fargo & Co. 1,700 15,134 4 UBS Americas 1,087 6,997 5 Edward Jones & Co. 866 14,000
Slide 32: Private Client Group Net Revenues and Pre-Tax Income
88 163 220 215 230 330 168 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FYTD 15 336* 32 1,549 1,901 2,182 2,474 2,919 3,267 1,716 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FYTD 15 * First two quarters of fiscal 2015, annualized. ** FY 2012 and 2013 results were adversely impacted by acquisition-related and redunda
Slide 33: Private Client Group Commissions and Fees
33 717 882 1,002 1,036 1,171 1,353 723 432 539 610 835 1,082 1,186 612 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FYTD 15 RJIS RJL RJA RJFS1,263 1,585 1,818 2,056 2,455 1,438 PRIVATE CLIENT GROUP * First two quarters of fiscal 2015, annualized. Notes: RJA includes MK beginning in FY 2012. Charts not to sca
Slide 34: Recurring Revenue
Fee-Based Accounts, 48.9% Mutual Funds, 24.8% Equities and Fixed Income Securities, 11.6% Insurance and Annuity Products, 11.8% New Issue Sales Credits, 2.9% PRIVATE CLIENT GROUP SECURITIES COMMISSIONS AND FEES (quarter ended March 31, 2015) 34 * 74% of PCG’s total revenue was recurring for the quar
Slide 35: PCG Client Assets and Number of Advisors
*Excludes RIAs with custody-only relationships 35 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 Q2 15 RJIS RJL RJA RJFS MK 5,154 6,210 6,265 6,384 6,197 5,182 5,216 223 249 254 368 403 451 471 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 Q2 15 PRIVATE CLIENT GROUP PCG AUA ($ billions) No. of Advisors* 15% 5-YR CAGR +1
Slide 36: Quality of Advisors Recruited vs. Lost
36 PRIVATE CLIENT GROUP . . . but Raymond James has always been more focused on quality of advisors instead of quantity of advisors. For example, in the first half of FY 2015, the average productivity of financial advisors recruited was much higher than the average productivity of financial advisors
Slide 37: Near-Term Growth Initiatives
Expand Geographic Footprint Help Advisors Grow Their Business 37 Attract and Retain Highest-Quality Advisors Expand Training Program NEAR-TERM GROWTH INITIATIVES The near-term growth initiatives for the Private Client Group are largely unchanged from last year, as we have a significant opportunity t
Slide 38: The Client of the Future
THE CLIENT OF THE FUTURE PRIVATE CLIENT GROUP . . . but we have already started thinking beyond the next 5 years, so we can begin making the investments necessary to be competitive 10 to 20+ years from now. 38
Slide 39: Generational Preferences and Technology Advances
PRIVATE CLIENT GROUP HIGH LOW C lari ty o f n e e d /c o m p le x it y V a lu e /pr ic in g p o w e r SELF- DIRECTED ADVICE- DEPENDENT Generational Preferences + Technology Advances Intrinsic advice preferences Growing market for addressing financial needs via technology alone Raymond James’ Value P
Slide 40: Private Client Group Outlook
PRIVATE CLIENT GROUP 40 OUTLOOK Strong retention and recruiting results despite competitive environment Continued success leveraging synergies with other businesses (fee based accounts, securities based loans) Intensifying regulatory environment
Slide 41: Private Client Group Values
41 PRIVATE CLIENT GROUP INTEGRITY INDEPENDENCE CONSERVATISM CLIENT FIRST
Slide 42: Equity Capital Markets
EQUITY CAPITAL MARKETS Jeff Trocin President, Global Equities and Investment Banking 42
Slide 43: Capital Markets Segment
ECM (US/Europe) $415mil Fixed Income $392mil Tax Credit Funds $51mil ECM (Canada/Lat- Am/Other) $108mil FY 2014 Capital Markets Segment Net Revenue 100% = $966 million CAPITAL MARKETS SEGMENT The Capital Markets segment consists of several different divisions. The focus of this presentation is the E
Slide 44: Capital Markets Net Revenues and Pre-Tax Income
537 596 691 812 938 966 467 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FYTD 15 69 79 83 76 102 131 49 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FYTD 15 98* 44 * First two quarters of fiscal 2015, annualized. Notes: Charts not to scale; FYTD 15 includes first two quarters of fiscal year 2015. Net Revenues ($ mill
Slide 45: Equity Capital Markets Net Revenues
$207 $259 $294 $281 $379 $415 $213 FY 09 FY 10 FY 11 FY 12 FY13 FY 14 FYTD 15 EQUITY CAPITAL MARKETS Equity Capital Markets (United States / Europe) Net Revenues ($ millions) 15% 5-YR CAGR . . . and net revenues for the equity capital markets business in the U.S. and Europe grew on average 15% per y
Slide 46: Equity Capital Markets Revenue Since 1996
$53 $118 $226 $207 $415 FY 95 FY 99 FY 04 FY 09 FY 14 EQUITY CAPITAL MARKETS ECM Formalized: 1996 Equity Capital Markets (United States / Europe) Net Revenues ($ millions) . . . which is up substantially from when the equity capital markets division was formalized in 1996. 46
Slide 47: U.S. Corporate Finance Revenues
$64 $109 $139 $126 $194 $215 $111 FY 09 FY 10 FY 11 FY 12 FY13 FY 14 FYTD 15 EQUITY CAPITAL MARKETS U.S. Corporate Finance Department Revenues ($ millions) 27% 5-YR CAGR A substantial driver of growth for the Equity Capital Market division has been growth in investment banking revenues, which has gr
Slide 48: M&A and Private Placement Advisory Revenues
12 19 31 29 42 46 32 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FYTD 15 Advisory Fees > $1 million $41 $59 $87 $80 $132 $148 $87 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FYTD 15 M&A/PP1 Advisory Revenues ($ millions) EQUITY CAPITAL MARKETS 1 Merger and acquisition fees and private placement advisory fees Invest
Slide 49: Common Equity Underwritings and Block Fees
13 24 25 23 42 39 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 # Common Equity Underwritings/ Registered Block Transaction Fees > $1 Million EQUITY CAPITAL MARKETS The underwriting business has also benefitted from completing larger transactions, with a notable spike in the past two fiscal years. 49
Slide 50: Recent Accolades
IB Firm of the Year: Restructuring & Turnaround 8 Deals of the Year: M&A, Advisory Services, International RECENT ACCOLADES EQUITY CAPITAL MARKETS USA M&A Investment Bank of the Year 2 Deals of the Year: M&A & Advisory Services Investment Services Provider of the Year – USA Best Real Est
Slide 51: Investment Banking Managing Directors
2012 EQUITY CAPITAL MARKETS INVESTMENT BANKING MANAGING DIRECTORS 2011 2009 Joined via Acquisition 21 Legacy Raymond James/ External Hires 54 75 Managing Directors As of February 15, 2015 Currently, there are approximately 75 managing directors in investment banking, including many high-quality addi
Slide 52: Institutional Equity Commissions
$203 $226 $261 $230 $247 $261 $130 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FYTD 15 CAPITAL MARKETS Institutional Equity Commissions ($ millions) Meanwhile, the market environment has been extremely challenging for institutional equity commissions over the past several years. $260* * First two quarters o
Slide 53: Global Equity Research
• 52 Senior Analysts • 979 Covered Companies Global Equity Research U.S. Equity Research EQUITY CAPITAL MARKETS • 16 Senior Analysts • 217 Covered Companies Canada Equity Research • 11 Senior Analysts • 119 Covered Companies Europe/LatAm Equity Research • #1 Top Conferences 1 • #1 Research Service -
Slide 54: U.S. Equity Research
Financial Services 211 Technology 239 Energy 181 Consumer 107 Health Care 93 Real Estate 78 Industrial 70 Industry Focus 979 Total Companies >$5 billion 36% <$500 million 15% $500mil-$2 billion 26% $2-5 billion 23% Market-Cap Focus EQUITY CAPITAL MARKETS U.S. Equity Research As of December 31, 2014
Slide 55: 2015 Major Growth Initiatives
EQUITY CAPITAL MARKETS • Build a meaningful Life Sciences/Biotech franchise • 15-20% of recent U.S. Equity U/W fees are in the Life Sciences sector • RJ has hired a senior banking team in the last several months • RJ has hired senior specialty pharmaceuticals research analyst and now targeting biote
Slide 56: Equity Capital Markets Outlook
EQUITY CAPITAL MARKETS OUTLOOK Conducive environment for investment banking, particularly M&A Continued headwinds for institutional equity commissions Increased importance of balance sheet / lending capabilities relative to research expertise 56
Slide 57: Asset Management Group
ASSET MANAGEMENT GROUP Jeff Dowdle Executive Vice President, RJF 57
Slide 58: Asset Management Group Overview
ASSET MANAGEMENT GROUP Asset Management Services Eagle Asset Management, Inc. Raymond James Trust Co. Overview of Asset Management Segment • $44B of financial assets under management • $87 billion of assets in non- discretionary asset-based programs • Offers discretionary and non discretionary fee-b
Slide 59: Asset Management Net Revenues and Pre-Tax Income
30 47 66 67 96 128 71 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FYTD 15 142* 59 177 197 227 237 293 370 194 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FYTD 15 * First two quarters of fiscal 2015, annualized. Notes: Charts not to scale; FYTD 15 includes first two quarters of fiscal year 2015. Net Revenues ($ mill
Slide 60: Growth in Financial Assets under Management
ASSET MANAGEMENT GROUP Growth in Financial Assets under Management – Eagle1 and AMS2 as of March 31, 2015 1. Includes Eagle and all affiliates; excludes Eagle Money Market Fund assets in FY 2009 2. Excludes non-managed AMS fee-based assets 15.3 18.0 19.6 27.0 32.9 40.6 44.5 13.6 15.6 16.1 20.0 27.9
Slide 61: Eagle Assets by Strategy and Channel
Small Cap, $10.0B SMID / Mid Cap, $3.8B Large Cap, $5.5B Fixed Income, $5.9B ClariVest, $3.8B Eagle Asset Management, Inc. (and affiliates) Financial Assets under Management as of March 31, 2015 ASSET MANAGEMENT GROUP 61 Institutional, $12.4B Subadvisory, $2.6B Eagle Funds, $6.5B Retail SMA, $7.5B 3
Slide 62: Net Flows of Financial Assets under Management
For the first half of FY 2015, net flows in non-discretionary asset-based programs are annualizing at 16.4% ASSET MANAGEMENT GROUP Net Flows of Financial Assets under Management – Eagle1 and AMS2 as of March 31, 2015 1. Includes Eagle and all affiliates; excludes Eagle Money Market Fund assets in FY
Slide 63: Annualized Revenue Yield by Asset Category
ASSET MANAGEMENT GROUP Annualized Revenue Yield by Asset Category (% of Average Assets) 0.45% 0.35% 0.45% 0.18% 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% Eagle Asset Mgmt. AMS - Mgd. % of A v e ra ge A sset s Gross Investment Advisory Fees Net Fees (Net of Subadvisor Pymts.) Note: Annualized revenue yield
Slide 64: Investment Performance Highlights
Asset Management Group Investment Performance Highlights VS. PEER GROUPS FREEDOM EXCESS RETURNS 3Y 5Y 10Y Conservative Balanced (50%/50%) +1.5% +0.9% +1.2% Balanced (65/35) +0.8% +0.3% +0.9% Growth (100% Equity) +1.7% +0.9% +0.3% ASSET MANAGEMENT GROUP 64 AMS MANAGED PERFORMANCE EAGLE MANAGED PERFOR
Slide 65: Asset Management Group Growth Opportunities
Acquisitions and Lift Outs Product Development Leveraging Synergies Asset Management Group Growth Opportunities ASSET MANAGEMENT GROUP 65 There are significant growth opportunities for both AMS and Eagle.
Slide 66: Asset Management Group Outlook
Attractive Growth of Fee Based Assets, Both Managed and Non-Discretionary Continued Yield Compression ASSET MANAGEMENT GROUP 66 Asset Management Group Outlook The outlook for the Asset Management segment is continued growth of assets, largely driven by growth in the Private Client Group, a structura
Slide 67: Raymond James Bank
RAYMOND JAMES BANK Steve Raney President & CEO, Raymond James Bank 67
Slide 68: Raymond James Bank Vision and Business Model
Conservative Credit Standards Prudent Financial / Capital Management Strong Internal Controls / Regulatory Compliance Sustainable, Profitable Growth Serve Financial Advisors, Retail & Institutional Clients RAYMOND JAMES BANK RJ Bank’s vision is to maximize shareholder value through prudent investing
Slide 69: Targeted Lending Strategy
Corporate (C&I) Securities Based Lending / Residential Mortgages Typically target: • Institutional / Capital Markets clients • Relatively mature industries • Near investment grade ratings • EBITDA greater than $25 - $50 million • No mezzanine lending • Mostly floating rate facilities • Target debt s
Slide 70: RJ Bank Net Revenues and Pre-Tax Income
3.50% 3.31% 3.43% 3.50% 3.25% 2.98% 3.06% 70 317 258 269 336 347 352 203 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FYTD 15 80 112 173 240 268 243 136 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FYTD 15 * First two quarters of fiscal 2015, annualized. Notes: Charts not to scale; FYTD 15 includes first two quarters
Slide 71: Net Loan Growth
6,594 6,095 6,548 7,992 8,821 10,964 12,061 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 Q2 FY 15 71 RAYMOND JAMES BANK RAYMOND JAMES BANK NET LOAN GROWTH ($ millions) RJ Bank has grown its loan portfolio nearly 11% annually since FY 2009. 11% 5 -YR CAGR
Slide 72: Loan Composition
72 RJ Bank maintains a well-diversified loan portfolio, both in terms of type of loans. . . Commercial and Industrial, 55.5% Commercial Real Estate, 14.5% Residential Mortgages, 16.1% Securities Based Loans, 10.2% Tax Exempt Loans, 3.0% Loans Held for Sale, 0.7% RAYMOND JAMES BANK LOAN COMPOSITION (
Slide 73: C&I Industry Diversification
73 RAYMOND JAMES BANK C&I INDUSTRY DIVERSIFICATION (Q2 FY 2015) RAYMOND JAMES BANK . . . and industry diversification. Industry Outstandings as % of Bank Assets Pharmaceuticals 4.0% Consumer Products & Services 3.0% Automotive/Transportation 2.9% Business Systems and Services 2.9% Power and Infrastr
Slide 74: Overview of Shared National Credits
• Established in 1977, the Shared National Credit (“SNC”) designation is a loan commitment of $20 million or more shared by three or more supervised institutions. • SNCs allow for consistent and efficient regulatory reviews and assessments of large C&I and CRE credits. • Raymond James Bank: • Indivi
Slide 75: Shared National Credits Criticized Loans
17.9% 12.7% 10.6% 10.0% 10.1% 15.7% 6.4% 5.6% 6.6% 2.6% 2010 2011 2012 2013 2014 All Shared National Credits (Industrywide) RJ Bank Shared National Credits RJ Bank Classified Loans 9.3% 3.2% 2.3% 2.1% Industrywide Classified Loans 12.1% 8.5% 7.5% 6.2% 0.8% 5.6% Source: OCC, RJF estimates and analysi
Slide 76: Credit Trends
76 The credit trends have improved significantly for RJ Bank’s loan portfolio since FY 2009. PROVISION EXPENSE ($ thousands) RAYMOND JAMES BANK NET CHARGE OFFS ($ thousands) NONPERFORMING ASSETS (% of total assets) ALLOWANCE FOR LOAN LOSSES (% of loans) 169,341 80,413 33,655 25,894 2,565 13,565 13,3
Slide 77: Raymond James Bank Growth Initiatives
77 RAYMOND JAMES BANK Expand Lending and Cash Management Solutions to Private Client Group Lending to Capital Markets Clients GROWTH INITIATIVES RJ Bank’s growth initiatives continue to be focused on strengthening relationships with clients in the Private Client Group and Capital Markets segments.
Slide 78: Raymond James Bank Outlook
Continued growth in loan portfolio with focus on expanding synergies with PCG and Capital Markets More resilient net interest margins Higher levels of bank loan loss provision expense commensurate with loan growth RAYMOND JAMES BANK OUTLOOK Intensifying regulatory environment 78
Slide 79: Summary of Strategy
79 RAYMOND JAMES BANK SUMMARY OF STRATEGY Provides Cash Management and Lending Solutions to Private Client Group Deepens Relationships with Capital Markets Clients Provides Business Diversification Attractive Risk-Adjusted Returns on Cash and Capital The long-term target is to grow RJ Bank at the sa
Slide 80: Financial Review & Closing
FINANCIAL REVIEW & CLOSING Jeff Julien CFO, Raymond James Financial 80
Slide 81: Net Revenue Growth
2,546 2,917 3,334 3,807 4,485 4,861 2,538 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FYTD 15 TRACK RECORD OF PROFITABLE GROWTH 14.6% 14.3% 14.2% 17.8% Net Revenues Recurring Revenues* (%) 52.8% 53.9% 55.0% 55.5% 56.3% * Includes fee-based accounts, investment advisory fees, interest income, cash sweep fees
Slide 82: Pre-Tax Income Growth (Non-GAAP)
249 362 503 533 644 748 383 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FYTD 15 9.8% 12.4% 15.1% 14.0% 14.4% 15.4% 15.1% Pre-Tax Income (Non-GAAP*) Pre-Tax Margin** (Non-GAAP) *For a reconciliation of the GAAP to the Non-GAAP measures, please see the schedule of Non-GAAP Information contained in the Appendi
Slide 83: Pre-Tax Income by Core Segment
TRACK RECORD OF PROFITABLE GROWTH PRE-TAX INCOME BY CORE SEGMENT ($ millions) 89 163 220 215 230 330 336 69 79 83 76 102 131 98 80 112 173 240 268 243 272 30 47 66 67 96 128 142 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FYTD 15 RJ Bank Private Client Group Capital Markets Asset Management * First two quar
Slide 84: Diluted Earnings Per Share Growth
1.25 1.83 2.19 2.20 2.58 3.32 1.64 2.39 2.51 2.95 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FYTD 15 GAAP Non-GAAP* *For a reconciliation of the GAAP to the Non-GAAP measures, please see the schedule of Non-GAAP Information contained in the Appendix. ** First two quarters of fiscal 2015, annualized TRACK R
Slide 85: Annual Return on Equity
7.9% 11.3% 9.7% 10.6% 11.3% 10.6% 12.2% 11.0% 12.0% 12.3% FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FYTD 15* GAAP NON-GAAP* *For a reconciliation of the GAAP to the Non-GAAP measures, please see the schedule of Non-GAAP Information contained in the Appendix. ** Annualized return on equity for first two qu
Slide 86: Return on Equity vs. Competitor Group
13.1 15.7 15.6 13.0 7.9 10.6 11.3 9.7 10.6 12.3 13.5 23.2 13.4 6.7 3.9 8.9 7.8 8.0 10.2 11.6 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 RJF Competitor Group Median* * Except as otherwise indicated, all numbers represented in bar chart are GAAP (for both RJF and C
Slide 87: Conservative Financial Management: Balance Sheet
CONSERVATIVE FINANCIAL MANAGEMENT Total Assets $25.0 billion Equity Attributable to RJF $4.375 billion Leverage (Assets/RJF Equity) 5.7x $1.2 billion Corporate Debt Level 3 Assets to RJF Equity Total Capital Ratio Tier 1 Leverage Ratio 8.5%* 20.1% 16.2% Regulatory Requirements** * Level 3 Assets in
Slide 88: Corporate Debt
$250 @ 4.25% 2016 2019 2024 2042* $350 @ 6.90% $300 @ 8.60% $250 @ 5.625% Maturity $ mm; Coupon * Can be called anytime after March 2017 Vintage 2011 2009 2012 2012 CORPORATE DEBT CONSERVATIVE FINANCIAL MANAGEMENT The firm maintains a conservative level of corporate debt with a staggered maturity pr
Slide 89: Capital Discussion
CAPITAL DISCUSSION CONSERVATIVE FINANCIAL MANAGEMENT 89 23.7% 17.1% 19.8% 22.2% 18.8% 17.0% 20.7% 23.4% Q3 FY 2013 Q4 FY 2013 Q1 FY 2014 Q2 FY 2014 Q3 FY 2014 Q4 FY 2014 Q1 FY 2015 Q2 FY 2015 $0.59 $0.82 Earnings per Diluted Share (GAAP) $0.14 $0.14 Dividend per Share* Average Dividend Payout 20.1%
Slide 90: Client Cash Balances to Total Client Assets
6.0% 6.5% 7.0% 7.5% 8.0% 8.5% 9.0% 9.5% 10.0% Oc t-0 9 Dec-0 9 F e b -1 0 A p r-1 0 J u n -1 0 A u g -1 0 Oc t-1 0 Dec-1 0 F e b -1 1 A p r-1 1 J u n -1 1 A u g -1 1 Oc t-1 1 Dec-1 1 F e b -1 2 A p r-1 2 J u n -1 2 A u g -1 2 Oc t-1 2 Dec-1 2 F e b -1 3 A p r-1 3 J u n -1 3 A u g -1 3 Oc t-1 3 Dec-1
Slide 91: Client Cash Balances and Corresponding Assets
91 CONSERVATIVE FINANCIAL MANAGEMENT Brokerage Client Cash / Cash Interest Program (~$3 B) Raymond James Bank Deposit Program (RJBDP) (~$28 B) Client Margin Loans (~$2 B) Raymond James Bank’s Earning Assets (~$11 B***) Off-Balance Sheet Assets Earning Fees (~$19 B) Segregated Assets (~$2 B) to Raymo
Slide 92: Projected Earnings Increase from 100 bps Rate Rise
92 ~$20 mm ~$40 mm ~$70 mm ~$130 mm Raymond James Bank Rest of Firm* (excl. Raymond James Bank) Account and Service Fees in PCG (RJBDP to Unaffiliated Banks & Money Market Funds) Projected Incremental Pre-Tax Earnings CONSERVATIVE FINANCIAL MANAGEMENT NET INTEREST INCOME * Mostly attributable to PCG
Slide 93: Financial Targets
FINANCIAL TARGETS 93 FIRM TARGETS: PRE-TAX MARGIN*, COMPENSATION RATIO, AND RETURN ON EQUITY Metric Target** Commentary Pre-Tax Margin* >15% • Assumes similar revenue level and mix as FYTD 2015 • Targets by segment: PCG (10%), Capital Markets (15%), Asset Management (30%+) • A 100 bps increase in sh
Slide 94: Financial Summary: Key Takeaways
FINANCIAL SUMMARY WELL CAPITALIZED (LOW LEVERAGE) AMPLE LIQUIDITY RELATIVELY LOW VOLATILITY OF EARNINGS TRACK RECORD OF PROFITABLE GROWTH KEY TAKEAWAYS 94
Slide 95: Appendix
Appendix RAYMOND JAMES®
Slide 96: Schedule of Non-GAAP Information
SCHEDULE OF NON-GAAP INFORMATION (continued on next slide) 2011 2012 2013 Pre-tax income attributable to RJF, Inc. - GAAP basis 461,247$ 471,525$ 564,187$ Non-GAAP adjustments: Acquisition related expenses (1) - 59,284 73,454 RJF's share of Raymond James European Securities ("RJES") goodwill impairm
Slide 97: Non-GAAP Footnote Explanations
Footnote Explanations: 1. The non-GAAP adjustment adds back to pre-tax income one-time acquisition and integration expenses associated with acquisitions that were incurred during each respective period. 2. The non-GAAP adjustment adds back to pre-tax income RJF’s share of the total goodwill impairme
Slide 98: Executive Committee Bios
EXECUTIVE COMMITTEE BIOS RAYMOND JAMES®
Slide 99: Paul Reilly, Chief Executive Officer
EXECUTIVE COMMITTEE BIOS 99 Paul Reilly Chief Executive Officer Raymond James Financial Presenting Paul Reilly became chief executive officer of Raymond James Financial in May 2010, after joining the firm’s management team as president and CEO-designate in May 2009. He has served on the firm’s board
Slide 100: Tash Elwyn, President, Raymond James & Associates
100 Prior to being appointed to his current position, Elwyn served for five years as divisional director, senior vice president of the Atlantic Division of RJ&A. In that role, he devoted his energies to attracting new advisors to the firm and supporting advisors’ growth plans and adoption of best pr
Slide 101: Jeffrey Trocin, President, Global Equities and Investment Banking
101 Jeffrey Trocin President Raymond James & Associates Global Equities and Investment Banking Mr. Trocin joined Raymond James & Associates in 1986 and has directed the firm’s Equity Capital Markets group, which includes the firm’s investment banking, research, institutional sales, trading and syndi
Slide 102: Jeff Dowdle, Executive Vice President
102 Presenting Serving as executive vice president of Raymond James Financial Inc.’s asset management group, Jeff Dowdle oversees the firm’s investment management subsidiaries and fee-based advisory programs. A 23-year veteran of Raymond James, Mr. Dowdle was previously president of the Asset Manage
Slide 103: Steven Raney, President and CEO, Raymond James Bank
103 Presenting Steven Raney is a Tampa native and has worked in the area’s banking community since 1988. He is currently the president and CEO of Raymond James Bank, a wholly-owned subsidiary of Raymond James Financial. RJ Bank’s core business includes a residential lending platform that supports th
Slide 104: Jeff Julien, Chief Financial Officer
104 Presenting In addition to his positions as executive vice president of finance and chief financial officer of Raymond James Financial, Inc., Jeff Julien serves as Chairman of the Board of both Raymond James Trust Company and Raymond James Bank. He also serves in a director capacity for many of t
Slide 105: Bella Allaire, EVP Technology and Operations
105 Not Presenting Bella Allaire Executive Vice President Technology and Operations As executive vice president of technology and operations for Raymond James, Bella Loykhter Allaire oversees the firm’s technology and operations functions, including client service and the technology platforms for ou
Slide 106: Paul Allison, Chairman and CEO, Raymond James Ltd.
Paul Allison Chairman and CEO Raymond James Ltd. 106 Not Presenting As chairman and chief executive officer of Raymond James Ltd., Paul Allison oversees business-building efforts and strategic leadership of the firm’s Canadian operations, including Equity Capital Markets, Private Client and Corporat
Slide 107: John Carson, President
107 Not Presenting John Carson is president of Raymond James Financial, Inc. and a member of the firm’s executive committee. He also serves as head of the fixed income and public finance divisions. Mr. Carson joined Raymond James in April 2012 when Morgan Keegan was acquired by Raymond James. He joi
Slide 108: President, Raymond James Financial Services
108 Not Presenting As president of Raymond James Financial Services, Mr. Curtis directs Raymond James’ independent contractor business that includes approximately 3,200 retail financial advisors. He was promoted to his current position following six years as senior vice president of Raymond James &
Slide 109: Tom James, Executive Chairman
Tom James Executive Chairman Raymond James Financial 109 Not Presenting Thomas A. James is executive chairman of Raymond James Financial, Inc. (NYSE-RJF), and chairman of its subsidiary, Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. Until May of 2010, he served as chief exec
Slide 110: Dennis Zank, Chief Operating Officer
Dennis Zank Chief Operating Officer Raymond James Financial Chief Executive Officer Raymond James & Associates 110 Not Presenting Dennis Zank serves as chief operating officer of Raymond James Financial, Inc. as well as Chief Executive Officer of Raymond James & Associates (RJA). In his current role