Raymond James Financial, Inc. · NYSE:RJF
Raymond James Financial — Q1 2024 Earnings Presentation
27 slides from Raymond James Financial's earnings presentation, Jan 24, 2024
Slide 1: Fiscal 1Q24 Results
Fiscal 1Q24 Results January 24, 2024
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 1Q24 highlights
Fiscal 1Q24 highlights vs. vs. $ in millions, except per share amounts 1Q24 1Q23 4Q23 As reported: Net revenues $ 3,013 8% (1)% Net income available to common shareholders $ 497 (2)% 15% Earnings per common share - diluted RECORD $ 2.32 1% 15% 1Q23 4Q23 Return on common equity 19.1% 21.3% 17.3% vs.
Slide 5: Fiscal 1Q24 key metrics
Fiscal 1Q24 key metrics vs. vs. $ in billions 1Q24 1Q23 4Q23 Client assets under administration RECORD $ 1,370.6 17% 9% Private Client Group (PCG) assets under administration RECORD $ 1,310.5 18% 9% PCG assets in fee-based accounts RECORD $ 746.6 18% 9% Financial assets under management RECORD $ 215
Slide 6: Fiscal 1Q24 segment results
Fiscal 1Q24 segment results vs. vs. $ in millions 1Q24 1Q23 4Q23 Net revenues: Private Client Group $ 2,226 8% (2)% Capital Markets $ 338 15% (1)% Asset Management $ 235 14% —% Bank $ 441 (13)% (2)% Consolidated net revenues $ 3,013 8% (1)% Pre-tax income: Private Client Group $ 439 1% (8)% Capital
Slide 7: Financial Review
Financial Review Paul Shoukry Chief Financial Officer, Raymond James Financial 7
Slide 8: Consolidated net revenues
Consolidated net revenues vs. vs. $ in millions 1Q24 1Q23 4Q23 Asset management and related administrative fees $ 1,407 13% (3)% Brokerage revenues 522 8% 9% Account and service fees 319 10% 2% Investment banking 181 28% (10)% Interest income 1,053 27% 3% Other 38 (14)% (30)% Total revenues 3,520 16
Slide 9: Domestic cash sweep and ESP balances
Domestic cash sweep and ESP balances CLIENTS' DOMESTIC CASH SWEEP & ENHANCED SAVINGS PROGRAM (ESP)* BALANCES AS A % OF DOMESTIC PCG ASSETS UNDER ADMINISTRATION (AUA) Cash Sweep & ESP Balances as a % of Domestic PCG Clients' Domestic Cash Sweep & ESP Balances ($B) 5.9% 5.2% 5.1% 4.9% 4.8% 60.4 58.0 5
Slide 10: Net interest income & RJBDP fees (third-party banks)
Net interest income & RJBDP fees (third-party banks) $ IN MILLIONS 723 731 708 711 698 137 100 107 154 152 586 631 601 557 546 1Q23 2Q23 3Q23 4Q23 1Q24 Firmwide Net Interest Income RJBDP Fees (Third-Party Banks)* Year-over-year change: (3)% Sequential change: (2)% NET INTEREST MARGIN (NIM) AVERAGE Y
Slide 11: Consolidated expenses
Consolidated expenses TOTAL COMPENSATION RATIO** vs. vs. $ in millions 1Q24 1Q23 4Q23 63.3% 63.7% 63.8% Compensation, commissions and benefits $ 1,921 11% 2% 62.3% 62.0% Non-compensation expenses: 62.8% 62.7% 63.4% 61.7% 61.4% Communications and information processing 150 8% (5)% 1Q23 2Q23 3Q23 4Q23
Slide 12: Consolidated pre-tax margin
Consolidated pre-tax margin 23.4% 21.7% 23.3% 20.4% 20.3% 20.9% 18.1% 19.4% 19.2% 16.7% 1Q23 2Q23 3Q23 4Q23 1Q24 Pre-Tax Margin (GAAP) Pre-Tax Margin (Adjusted)* *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 m
Slide 13: Other financial information
Other financial information vs. vs. $ in millions, except per share amounts 1Q24 1Q23 4Q23 Total assets $ 80,130 4% 2% RJF corporate cash* $ 2,084 3% —% Total common equity attributable to RJF $ 10,711 10% 6% Book value per share $ 51.32 13% 6% Tangible book value per share** $ 42.81 16% 7% Weighted
Slide 14: Capital management
Capital management DIVIDENDS PAID AND SHARE REPURCHASES $ IN MILLIONS Share Repurchases* Dividends Paid** 441 390 91 90 $1.4B 217 245 of dividends paid and 79 95 350 share repurchases over 300 88 the past 5 quarters 150 138 88 1Q23 2Q23 3Q23 4Q23 1Q24 $1.4B Number of Shares remains under current Rep
Slide 15: Bank segment key credit trends
Bank segment key credit trends vs. vs. $ in millions 1Q24 1Q23 4Q23 Bank loan provision for credit losses $ 12 (14)% (67)% Net charge-offs $ 8 300% (53)% 1Q23 4Q23 Nonperforming assets as a % of total assets 0.27% 0.11% 0.21% Bank loan allowance for credit losses as a % of loans held for investment
Slide 16: Outlook
Outlook RAYMOND JAMES
Slide 17: Appendix
Appendix RAYMOND JAMES
Slide 18: Reconciliation of non-GAAP financial measures to GAAP financial measures
Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited) 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 separately
Slide 19: Reconciliation of non-GAAP financial measures to GAAP financial measures
Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited) Three months ended December 31, March 31, June 30, September 30, December 31, $ in millions 2022 2023 2023 2023 2023 Net income available to common shareholders $ 507 $ 425 $ 369 $ 432 $ 497 Non-GAAP adjustments: Ex
Slide 20: Reconciliation of non-GAAP financial measures to GAAP financial measures
Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited) Three months ended December 31, March 31, June 30, September 30, December 31, 2022 2023 2023 2023 2023 Pre-tax margin (4) 23.4 % 19.4 % 16.7 % 19.2 % 20.9 % Impact of non-GAAP adjustments on pre-tax margin: Expenses
Slide 21: Reconciliation of non-GAAP financial measures to GAAP financial measures
Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited) Three months ended December 31, March 31, June 30, September 30, December 31, $ in millions 2022 2023 2023 2023 2023 Compensation, commissions and benefits expense $ 1,736 $ 1,820 $ 1,851 $ 1,892 $ 1,921 (1) Less: T
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 December 31, September 30, December 31, Earnings per common share (6) 2022 2023 2023 Basic $ 2.36 $ 2.07 $ 2.38 Impact of non-GAAP adjustments on basic earnings per common share: Expenses related
Slide 23: Reconciliation of non-GAAP financial measures to GAAP financial measures
Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited) Three months ended December 31, September 30, December 31, Earnings per common share (6) 2022 2023 2023 Diluted $ 2.30 $ 2.02 $ 2.32 Impact of non-GAAP adjustments on diluted earnings per common share: Expenses rela
Slide 24: Reconciliation of non-GAAP financial measures to GAAP financial measures
Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited) Book value per share As of December 31, September 30, December 31, $ in millions, except per share amounts 2022 2023 2023 Total common equity attributable to Raymond James Financial, Inc. $ 9,736 $ 10,135 $ 10,711 L
Slide 25: Reconciliation of non-GAAP financial measures to GAAP financial measures
Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited) Return on common equity Three months ended December 31, September 30, December 31, $ in millions 2022 2023 2023 Average common equity (8) $ 9,537 $ 10,003 $ 10,423 Impact of non-GAAP adjustments on average common eq
Slide 26: Reconciliation of non-GAAP financial measures to GAAP financial measures
Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited) Return on tangible common equity Three months ended December 31, September 30, December 31, $ in millions 2022 2023 2023 Average common equity (8) $ 9,537 $ 10,003 $ 10,423 Less: Average goodwill and identifiable in
Slide 27: Footnotes
Footnotes (1) Includes acquisition-related compensation expenses primarily arising from equity and cash-based retention awards issued in conjunction with acquisitions in prior years. Such retention awards are generally contingent upon the post-closing continuation of service of certain associates wh
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