Raymond James Financial, Inc. · NYSE:RJF
Raymond James Financial — Q3 FY2022 Earnings Presentation
29 slides from Raymond James Financial's earnings presentation, Jul 27, 2022
Slide 1: Fiscal 3Q22 Results
Fiscal 3Q22 Results July 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 3Q22 highlights
Fiscal 3Q22 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 dir
Slide 5: Fiscal 3Q22 key metrics
Fiscal 3Q22 key metrics 5 $ in billions 3Q22 vs. 3Q21 vs. 2Q22 Client assets under administration $ 1,125.3 (3)% (10)% Private Client Group (PCG) assets under administration $ 1,068.8 (3)% (11)% PCG assets in fee-based accounts $ 606.7 (2)% (11)% Financial assets under management* $ 182.4 (5)% (6)%
Slide 6: Fiscal 3Q22 segment results
Note: Segments do not total consolidated results because of the Other segment and intersegment eliminations not shown. Starting in 3Q22, the Bank Segment results include Raymond James Bank and TriState Capital Bank. Fiscal 3Q22 segment results 6 $ in millions 3Q22 vs. 3Q21 vs. 2Q22 Net revenues: Pri
Slide 7: FYTD 2022 highlights (9 months)
FYTD 2022 highlights (9 months) 7 Note: FYTD 2022 is from the period October 1, 2021 to June 30, 2022. FYTD 2021 is from the period October 1, 2020 to June 30, 2021. All share and per share information has been retroactively adjusted to reflect the September 21, 2021 3-for-2 stock split. * These are
Slide 8: FYTD 2022 segment results (9 months)
FYTD 2022 segment results (9 months) 8 $ in millions FYTD 2022 vs. FYTD 2021 Net revenues: Private Client Group RECORD $ 5,719 19% Capital Markets RECORD $ 1,410 6% Asset Management RECORD $ 698 11% Bank RECORD $ 656 32% Consolidated net revenues RECORD $ 8,172 16% Pre-tax income: Private Client Gro
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 3Q22 vs. 3Q21 vs. 2Q22 Asset management and related administrative fees $ 1,427 13% (3)% Brokerage revenues 513 (7)% (9)% Account and service fees 211 31% 18% Investment banking 223 (19)% (5)% Interest income 374 82% 55% Other 30 (45)% 11% Total revenues 2,
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) 29.3 31.4 33.1 33.6 36.6 25.1 24.5 24.3 25.9 25.5 8.6 10
Slide 12: Net interest income & RJBDP fees (third-party banks)
Net interest income & RJBDP fees (third-party banks) 12 Note: Starting in 3Q22, the Bank Segment results include Raymond James Bank and TriState Capital Bank. *As reported in Account and Service Fees in the PCG segment. **Computed by dividing annualized RJBDP Fees (Third-Party Banks), which are net
Slide 13: Consolidated expenses
Consolidated expenses 13 $ in millions 3Q22 vs. 3Q21 vs. 2Q22 Compensation, commissions and benefits $ 1,834 10% (1)% Non-compensation expenses: Communications and information processing 129 18% 2% Occupancy and equipment 65 12% 5% Business development 58 87% 71% Investment sub-advisory fees 38 12%
Slide 14: Consolidated 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 most directly comparable GAAP measures and for more information on these measures. Consolidated pre-tax margin 14 15.6% 20.8% 20.1% 16.2% 15.3% 20.5% 21.8% 20.8%
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 inves
Slide 16: Capital management
$458M of dividends paid and share repurchases over the past 5 quarters Capital management 16 DIVIDENDS PAID AND SHARE REPURCHASES* $ IN MILLIONS 102 54 60 71 171 48 100 54 54 60 71 71 Share Repurchases* Dividends Paid 3Q21 4Q21 1Q22 2Q22 3Q22 Number of Shares Repurchased* (thousands) 563 — — — 1,136
Slide 17: Bank segment key credit trends
Bank segment key credit trends 17 $ in millions 3Q22 vs. 3Q21 vs. 2Q22 Bank loan provision/(benefit) for credit losses* $ 56 NM 167% Net charge-offs $ 10 NM NM 3Q21 2Q22 Nonperforming assets as a % of total assets 0.17 % 0.13% 0.27% Bank loan allowance for credit losses as a % of loans held for inve
Slide 18: Outlook
Outlook RAYMOND JAMES
Slide 19: Appendix
Appendix RAYMOND JAMES
Slide 20: Reconciliation of non-GAAP financial measures to GAAP financial measures
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 separate
Slide 21: Reconciliation of non-GAAP financial measures to GAAP financial measures
Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited) Note: Please refer to the footnotes on slide 29 for additional information. continued on next slide21 Three months ended Nine months ended $ in millions June 30, 2021 September 30, 2021 December 31, 2021 March 31, 2
Slide 22: Reconciliation of non-GAAP financial measures to GAAP financial measures
Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited) Three months ended Nine months ended $ in millions June 30, 2021 September 30, 2021 December 31, 2021 March 31, 2022 June 30, 2022 June 30, 2021 June 30, 2022 Pre-tax margin (6) 15.6 % 20.8 % 20.1 % 16.2 % 15.3 % 17
Slide 23: Reconciliation of non-GAAP financial measures to GAAP financial measures
Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited) 23 Note: Please refer to the footnotes on slide 29 for additional information. continued on next slide Three months ended June 30, 2021 September 30, 2021 December 31, 2021 March 31, 2022 June 30, 2022 Total compens
Slide 24: Reconciliation of non-GAAP financial measures to GAAP financial measures
Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited) 24 Note: Please refer to the footnotes on slide 29 for additional information. Three months ended Nine months ended Earnings per common share (8) (9) June 30, 2021 March 31, 2022 June 30, 2022 June 30, 2021 June 30,
Slide 25: Reconciliation of non-GAAP financial measures to GAAP financial measures
Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited) 25 Note: Please refer to the footnotes on slide 29 for additional information. continued on next slide Three months ended Nine months ended Earnings per common share (8) (9) June 30, 2021 March 31, 2022 June 30, 202
Slide 26: Reconciliation of non-GAAP financial measures to GAAP financial measures
Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited) 26 Note: Please refer to the footnotes on slide 29 for additional information. continued on next slide Book value per share As of $ in millions, except per share amounts June 30, 2021 March 31, 2022 June 30, 2022 To
Slide 27: Reconciliation of non-GAAP financial measures to GAAP financial measures
Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited) 27 Note: Please refer to the footnotes on slide 29 for additional information. Return on common equity Three months ended Nine months ended $ in millions June 30, 2021 March 31, 2022 June 30, 2022 June 30, 2021 June
Slide 28: Reconciliation of non-GAAP financial measures to GAAP financial measures
Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited) 28 Note: Please refer to the footnotes on slide 29 for additional information. Return on equity Three months ended Nine months ended $ in millions June 30, 2021 March 31, 2022 June 30, 2022 June 30, 2021 June 30, 20
Slide 29: Footnotes
Footnotes 29 (1) Includes acquisition-related compensation expenses arising from equity and cash-based retention awards issued in conjunction with our current and prior-year acquisitions. Such retention awards are generally contingent upon the post-closing continuation of service of certain associat
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