Raymond James Financial, Inc. · NYSE:RJF
Raymond James Financial — Q4 FY2021 Earnings Presentation
23 slides from Raymond James Financial's earnings presentation, Oct 27, 2021
Slide 1: Fourth Quarter & Fiscal 2021 Results
FOURTH QUARTER & FISCAL 2021 RESULTS October 27, 2021
Slide 2: Forward-Looking Statements
2 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,
Slide 3: Overview of Results
3 Paul Reilly Chairman & CEO, Raymond James Financial OVERVIEW OF RESULTS
Slide 4: Fiscal 4Q21 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 directly comparable GAAP m
Slide 5: Fiscal 4Q21 Key Metrics
5 FISCAL 4Q21 KEY METRICS $ in billions 4Q21 vs. 4Q20 vs. 3Q21 Client assets under administration RECORD $ 1,178.7 27% 1% Private Client Group (PCG) assets under administration RECORD $ 1,115.4 26% 1% PCG assets in fee-based accounts RECORD $ 627.1 32% 2% Financial assets under management RECORD $ 1
Slide 6: Fiscal 4Q21 Segment Results
6 FISCAL 4Q21 SEGMENT RESULTS $ in millions 4Q21 vs. 4Q20 vs. 3Q21 Net Revenues: Private Client Group RECORD $ 1,801 29% 6% Capital Markets RECORD $ 554 35% 24% Asset Management RECORD $ 238 29% 6% Raymond James Bank $ 176 9% 4% Consolidated net revenues RECORD $ 2,695 30% 9% Pre-Tax Income: Private
Slide 7: FY 2021 Highlights
7 FY 2021 HIGHLIGHTS $ in millions, except per share amounts FY 2021 vs. FY 2020 As Reported: Net revenues RECORD $ 9,760 22% Net income RECORD $ 1,403 72% Earnings per common share - diluted RECORD $ 6.63 71% FY 2020 Return on equity 18.4 % 11.9% vs. FY 2020 Non-GAAP Measures:* Adjusted net income
Slide 8: FY 2021 Segment Results
8 FY 2021 SEGMENT RESULTS $ in millions FY 2021 vs. FY 2020 Net Revenues: Private Client Group RECORD $ 6,611 19% Capital Markets RECORD $ 1,885 46% Asset Management RECORD $ 867 21% Raymond James Bank $ 672 (12)% Consolidated net revenues RECORD $ 9,760 22% Pre-Tax Income: Private Client Group RECO
Slide 9: Financial Review
9 Paul Shoukry Chief Financial Officer, Raymond James Financial FINANCIAL REVIEW
Slide 10: Consolidated Net Revenues
10 CONSOLIDATED NET REVENUES $ in millions 4Q21 vs. 4Q20 vs. 3Q21 Asset management and related administrative fees $ 1,366 36% 8% Brokerage revenues 541 9% (2)% Account and service fees 170 21% 6% Investment banking 364 64% 32% Interest income 215 7% 5% Other* 74 30% 35% Total revenues 2,730 29% 9%
Slide 11: Domestic Cash Sweep Balances
11 Note: May not total due to rounding. * Raymond James Bank Deposit Program (RJBDP) is a multi-bank sweep program in which clients' cash deposits in their brokerage accounts are swept into interest-bearing deposit accounts at Raymond James Bank and various third-party banks. C lie nt s' D om es tic
Slide 12: Net Interest Income & RJBDP Fees (Third-Party Banks)
12 NET INTEREST INCOME & RJBDP FEES (THIRD-PARTY BANKS) * 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
13 CONSOLIDATED EXPENSES $ in millions 4Q21 vs. 4Q20 vs. 3Q21 Compensation, commissions and benefits $ 1,774 25% 7% Non-compensation expenses: Communications and information processing 114 14% 5% Occupancy and equipment 60 5% 3% Business development 36 29% 16% Investment sub-advisory fees 37 42% 9%
Slide 14: Pre-Tax Margin and Compensation Trends
14 * 4Q20 included a $7M loss in our Capital Markets segment related to the sale of our interests in certain entities that operated predominantly in France, which closed during 1Q21, and $46M in our Other segment related to the reduction in workforce expenses associated with position eliminations th
Slide 15: Other Financial Information
15 OTHER FINANCIAL INFORMATION $ in millions, except per share amounts 4Q21 vs. 4Q20 vs. 3Q21 Total assets $ 61,891 30% 8% RJF corporate cash* $ 1,157 (47)% (26)% Total equity attributable to RJF $ 8,245 16% 5% Book value per share $ 40.08 15% 5% Tangible book value per share** $ 36.11 13% 5% Weight
Slide 16: Capital Management
16 Dividends Paid and Share Repurchases* $ in millions 101 65 114 102 54 50 10 60 48 51 55 54 54 54 Share Repurchases* Dividends Paid 4Q20 1Q21 2Q21 3Q21 4Q21 CAPITAL MANAGEMENT $632 million remains under current share repurchase authorization Number of Shares Repurchased* (thousands) 1,017 162 750
Slide 17: Raymond James Bank Key Credit Trends
17 RAYMOND JAMES BANK KEY CREDIT TRENDS $ in millions 4Q21 vs. 4Q20 vs. 3Q21 Bank loan provision/(benefit) for credit losses* $ 5 (89)% NM Net charge-offs: Charge-offs related to loan sales $ 1 (96)% —% All other 6 NM 100% Total net charge-offs $ 7 (73)% 75% 4Q20 3Q21 Nonperforming assets as a % of
Slide 18: Outlook
18 OUTLOOK RAYMOND JAMES
Slide 19: Appendix
APPENDIX * RAYMOND JAMES
Slide 20: Non-GAAP Reconciliation: Adjusted Net Income
20 Note: Please refer to the footnotes on slide 23 for additional information. Three months ended Twelve months ended $ in millions September 30, 2020 December 31, 2020 June 30, 2021 September 30, 2021 September 30, 2020 September 30, 2021 Net income $ 209 $ 312 $ 307 $ 429 $ 818 $ 1,403 Non-GAAP ad
Slide 21: Book Value per Share and Earnings per Share Reconciliation
21 Book value per share (6) (7) As of $ in millions, except per share amounts September 30, 2020 June 30, 2021 September 30, 2021 Total equity attributable to Raymond James Financial, Inc. $ 7,114 $ 7,863 $ 8,245 Less non-GAAP adjustments: Goodwill and identifiable intangible assets, net 600 862 882
Slide 22: Return on Equity Reconciliation
22 Return on equity Three months ended Twelve months ended $ in millions September 30, 2020 June 30, 2021 September 30, 2021 September 30, 2020 September 30, 2021 Average equity (8) $ 7,040 $ 7,728 $ 8,054 $ 6,860 $ 7,635 Impact on average equity of non-GAAP adjustments: Losses on extinguishment of
Slide 23: Footnotes
23 FOOTNOTES (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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