Raymond James Financial, Inc. · NYSE:RJF
Raymond James Financial — Q4 FY2022 Earnings Presentation
29 slides from Raymond James Financial's earnings presentation, Oct 26, 2022
Slide 1: Fourth Quarter & Fiscal 2022 Results
Fourth Quarter & Fiscal 2022 Results October 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 Chair & CEO, Raymond James Financial 3
Slide 4: Fiscal 4Q22 highlights
Fiscal 4Q22 highlights 4 *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 directly comparable GAAP measures and for more information on these measures. Certain non-GAAP financial measures have been adjusted
Slide 5: Fiscal 4Q22 key metrics
Fiscal 4Q22 key metrics 5 $ in billions 4Q22 vs. 4Q21 vs. 3Q22 Client assets under administration $ 1,093.1 (7)% (3)% Private Client Group (PCG) assets under administration $ 1,039.0 (7)% (3)% PCG assets in fee-based accounts $ 586.0 (7)% (3)% Financial assets under management* $ 173.8 (9)% (5)% Tot
Slide 6: Fiscal 4Q22 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 4Q22 segment results 6 $ in millions 4Q22 vs. 4Q21 vs. 3Q22 Net revenues: Pri
Slide 7: FY 2022 highlights
FY 2022 highlights 7 * 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 directly comparable GAAP measures and for more information on these measures. Certain non-GAAP financial measures have been adjusted fo
Slide 8: FY 2022 segment results
FY 2022 segment results 8 $ in millions FY 2022 vs. FY 2021 Net revenues: Private Client Group RECORD $ 7,710 17% Capital Markets $ 1,809 (4)% Asset Management RECORD $ 914 5% Bank RECORD $ 1,084 61% Consolidated net revenues RECORD $ 11,003 13% Pre-tax income: Private Client Group RECORD $ 1,030 38
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 4Q22 vs. 4Q21 vs. 3Q22 Asset management and related administrative fees $ 1,290 (6)% (10)% Brokerage revenues 481 (11)% (6)% Account and service fees 266 56% 26% Investment banking 217 (40)% (3)% Interest income 667 210% 78% Other* 80 8% 167% Total revenues
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) 31.4 33.1 33.6 36.6 38.7 24.5 24.3 25.9 25.5 22.0 10.8 1
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 4Q22 vs. 4Q21 vs. 3Q22 Compensation, commissions and benefits $ 1,759 (1)% (4)% Non-compensation expenses: Communications and information processing 138 21% 7% Occupancy and equipment 66 10% 2% Business development 59 64% 2% Investment sub-advisory fees 36 (3)%
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 20.8% 20.1% 16.2% 15.3% 21.8% 21.8% 20.8% 17.4%
Slide 15: Other financial information
Other financial information 15 *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 invested on behalf of RJF in cash and cash equivalents or otherwise deployed in its normal business activities. **This is a non-GAAP m
Slide 16: Capital management
$491M of dividends paid and share repurchases over the past 5 quarters Capital management 16 DIVIDENDS PAID AND SHARE REPURCHASES* $ IN MILLIONS 54 60 71 171 135 — — — 100 6254 60 71 71 73 Share Repurchases* Dividends Paid** 4Q21 1Q22 2Q22 3Q22 4Q22 Number of Shares Repurchased* (thousands) — — — 1,
Slide 17: Bank segment key credit trends
Bank segment key credit trends 17 $ in millions 4Q22 vs. 4Q21 vs. 3Q22 Bank loan provision/(benefit) for credit losses $ 34 580% (39)% Net charge-offs $ 14 100% 40% 4Q21 3Q22 Nonperforming assets as a % of total assets 0.13 % 0.20% 0.17% 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 to GAAP financial measures (unaudited)
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 to GAAP financial measures (unaudited)
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 Twelve months ended $ in millions September 30, 2021 December 31, 2021 March 31, 2022 June 30,
Slide 22: Reconciliation of non-GAAP to GAAP financial measures (unaudited)
Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited) Three months ended Twelve months ended $ in millions September 30, 2021 December 31, 2021 March 31, 2022 June 30, 2022 September 30, 2022 September 30, 2021 September 30, 2022 Pre-tax margin (6) 20.8 % 20.1 % 16.2 %
Slide 23: Reconciliation of non-GAAP to GAAP financial measures (unaudited)
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 September 30, 2021 December 31, 2021 March 31, 2022 June 30, 2022 September 30, 2022 Total co
Slide 24: Reconciliation of non-GAAP to GAAP financial measures (unaudited)
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 Twelve months ended Earnings per common share (8) September 30, 2021 June 30, 2022 September 30, 2022 September 30, 2
Slide 25: Reconciliation of non-GAAP to GAAP financial measures (unaudited)
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 Twelve months ended Earnings per common share (8) September 30, 2021 June 30, 2022 September
Slide 26: Reconciliation of non-GAAP to GAAP financial measures (unaudited)
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 September 30, 2021 June 30, 2022 September 30
Slide 27: Reconciliation of non-GAAP to GAAP financial measures (unaudited)
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 Twelve months ended $ in millions September 30, 2021 June 30, 2022 September 30, 2022 Septemb
Slide 28: Reconciliation of non-GAAP to GAAP financial measures (unaudited)
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 Twelve months ended $ in millions September 30, 2021 June 30, 2022 September 30, 2022 September 30,
Slide 29: Footnotes
Footnotes 29 (1) Includes acquisition-related compensation expenses arising from equity and cash-based retention awards issued in conjunction with acquisitions in the current year and in prior years. Such retention awards are generally contingent upon the post-closing continuation of service of cert
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