Raymond James Financial, Inc. · NYSE:RJF
Raymond James Financial — Q2 2024 Earnings Presentation
29 slides from Raymond James Financial's earnings presentation, Apr 24, 2024
Slide 1: Fiscal 2Q24 Results
Fiscal 2Q24 Results April 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 2Q24 highlights
Fiscal 2Q24 highlights vs. vs. $ in millions, except per share amounts 2Q24 2Q23 1Q24 As reported: Net revenues RECORD $ 3,118 9% 3% Net income available to common shareholders $ 474 12% (5)% Earnings per common share — diluted $ 2.22 15% (4)% 2Q23 1Q24 Return on common equity — annualized 17.5% 17.
Slide 5: Fiscal 2Q24 key metrics
Fiscal 2Q24 key metrics vs. vs. $ in billions 2Q24 2Q23 1Q24 Client assets under administration RECORD $ 1,449.1 18% 6% Private Client Group (PCG) assets under administration RECORD $ 1,388.8 19% 6% PCG assets in fee-based accounts RECORD $ 798.8 20% 7% Financial assets under management RECORD $ 226
Slide 6: Fiscal 2Q24 segment results
Fiscal 2Q24 segment results vs. vs. $ in millions 2Q24 2Q23 1Q24 Net revenues: Private Client Group RECORD $ 2,341 9% 5% Capital Markets $ 321 6% (5)% Asset Management RECORD $ 252 17% 7% Bank $ 424 (21)% (4)% Consolidated net revenues RECORD $ 3,118 9% 3% Pre-tax income/(loss): Private Client Group
Slide 7: FYTD 2024 highlights (6 months)
FYTD 2024 highlights (6 months) vs. $ in millions, except per share amounts FYTD 2024 FYTD 2023 As reported: Net revenues RECORD $ 6,131 8% Net income available to common shareholders RECORD $ 971 4% Earnings per common share — diluted RECORD $ 4.54 7% FYTD 2023 Return on common equity — annualized
Slide 8: FYTD 2024 segment results (6 months)
FYTD 2024 segment results (6 months) vs. $ in millions FYTD 2024 FYTD 2023 Net revenues: Private Client Group RECORD $ 4,567 9% Capital Markets $ 659 10% Asset Management RECORD $ 487 15% Bank $ 865 (17)% Consolidated net revenues RECORD $ 6,131 8% Pre-tax income/(loss): Private Client Group RECORD
Slide 9: Financial Review
Financial Review Paul Shoukry President and Chief Financial Officer, Raymond James Financial 9
Slide 10: Consolidated net revenues
Consolidated net revenues vs. vs. $ in millions 2Q24 2Q23 1Q24 Asset management and related administrative fees $ 1,516 16% 8% Brokerage revenues 528 6% 1% Account and service fees 335 30% 5% Investment banking 179 16% (1)% Interest income 1,049 15% —% Other 31 (3)% (18)% Total revenues 3,638 15% 3%
Slide 11: 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) 5.2% 5.1% 4.9% 4.8% 4.6% 58.0 56.4 5
Slide 12: Net interest income & RJBDP fees (third-party banks)
Net interest income & RJBDP fees (third-party banks) $ IN MILLIONS 731 708 711 698 689 100 107 154 152 160 631 601 557 546 529 2Q23 3Q23 4Q23 1Q24 2Q24 Firmwide Net Interest Income RJBDP Fees (Third-Party Banks)* Year-over-year change: (6)% Sequential change: (1)% NET INTEREST MARGIN (NIM) AVERAGE Y
Slide 13: Consolidated expenses
Consolidated expenses TOTAL COMPENSATION RATIO* vs. vs. $ in millions 2Q24 2Q23 1Q24 65.5% 63.3% 63.7% 63.8% Compensation, commissions and benefits $ 2,043 12% 6% 62.0% 65.2% Non-compensation expenses: 62.8% 62.7% 63.4% 61.4% Communications and information processing 165 8% 10% 2Q23 3Q23 4Q23 1Q24 2
Slide 14: Consolidated pre-tax margin
Consolidated pre-tax margin 21.7% 20.4% 20.3% 20.4% 20.9% 18.1% 19.4% 19.2% 19.5% 16.7% 2Q23 3Q23 4Q23 1Q24 2Q24 Pre-Tax Margin (GAAP) Adjusted 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 mos
Slide 15: Other financial information
Other financial information vs. vs. $ in millions, except per share amounts 2Q24 2Q23 1Q24 Total assets $ 81,232 3% 1% RJF corporate cash* $ 2,030 11% (3)% Total common equity attributable to RJF $ 10,905 10% 2% Book value per share $ 52.60 13% 2% Tangible book value per share** $ 44.11 16% 3% Weigh
Slide 16: Capital management
Capital management DIVIDENDS PAID AND SHARE REPURCHASES $ IN MILLIONS Share Repurchases* Dividends Paid** 441 390 91 90 302 $1.5B 245 95 of dividends paid and 95 350 share repurchases over 300 88 207 the past 5 quarters 150 88 2Q23 3Q23 4Q23 1Q24 2Q24 $1.2B Number of Shares remains under current Rep
Slide 17: Bank segment key credit trends
Bank segment key credit trends vs. vs. $ in millions 2Q24 2Q23 1Q24 Bank loan provision for credit losses $ 21 (25)% 75% Net charge-offs $ 28 40% 250% 2Q23 1Q24 Nonperforming assets as a % of total assets 0.31% 0.16% 0.27% Bank loan allowance for credit losses as a % of loans held for investment 1.0
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) 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 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 Six months ended March 31, June 30, September 30, December 31, March 31, March 31, March 31, $ in millions 2023 2023 2023 2023 2024 2023 2024 Net income available to common shareholders $ 425 $ 36
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 March 31, June 30, September 30, December 31, March 31, 2023 2023 2023 2023 2024 Pre-tax margin (4) 19.4 % 16.7 % 19.2 % 20.9 % 19.5 % Impact of non-GAAP adjustments on pre-tax margin: Expenses re
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 March 31, June 30, September 30, December 31, March 31, $ in millions 2023 2023 2023 2023 2024 Compensation, commissions and benefits expense $ 1,820 $ 1,851 $ 1,892 $ 1,921 $ 2,043 (1) Less: Tota
Slide 24: Reconciliation of non-GAAP financial measures to GAAP financial measures
Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited) Three months ended Six months ended March 31, December 31, March 31, March 31, March 31, Earnings per common share (6) 2023 2023 2024 2023 2024 Basic $ 1.97 $ 2.38 $ 2.27 $ 4.33 $ 4.65 Impact of non-GAAP adjustments
Slide 25: Reconciliation of non-GAAP financial measures to GAAP financial measures
Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited) Three months ended Six months ended March 31, December 31, March 31, March 31, March 31, Earnings per common share (6) 2023 2023 2024 2023 2024 Diluted $ 1.93 $ 2.32 $ 2.22 $ 4.23 $ 4.54 Impact of non-GAAP adjustmen
Slide 26: 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 March 31, December 31, March 31, $ in millions, except per share amounts 2023 2023 2024 Total common equity attributable to Raymond James Financial, Inc. $ 9,875 $ 10,711 $ 10,905 Less non
Slide 27: 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 Six months ended March 31, December 31, March 31, March 31, March 31, $ in millions 2023 2023 2024 2023 2024 Average common equity (8) $ 9,806 $ 10,423 $ 10,808 $ 9,650 $ 1
Slide 28: 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 Six months ended March 31, December 31, March 31, March 31, March 31, $ in millions 2023 2023 2024 2023 2024 Average common equity (8) $ 9,806 $ 10,423 $ 10,808 $
Slide 29: 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
Raymond James Financial — Q2 2024 Earnings Presentation on 6ix