Raymond James Financial, Inc. · NYSE:RJF
Raymond James Financial — Q1 2025 Earnings Presentation
27 slides from Raymond James Financial's earnings presentation, Jan 29, 2025
Slide 1: Fiscal 1Q25 Results
Fiscal 1Q25 Results January 29, 2025
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 1Q25 highlights
Fiscal 1Q25 highlights vs. vs. $ in millions, except per share amounts 1Q25 1Q24 4Q24 As reported: Net revenues RECORD $ 3,537 17% 2% Net income available to common shareholders $ 599 21% —% Earnings per common share — diluted RECORD $ 2.86 23% —% 1Q24 4Q24 Return on common equity — annualized 20.4%
Slide 5: Fiscal 1Q25 key metrics
Fiscal 1Q25 key metrics vs. vs. $ in billions 1Q25 1Q24 4Q24 Client assets under administration $ 1,557.5 14% (1)% Private Client Group (PCG) assets under administration $ 1,491.8 14% (1)% PCG assets in fee-based accounts* RECORD $ 876.6 17% —% Financial assets under management $ 243.9 13% —% Total
Slide 6: Fiscal 1Q25 segment results
Fiscal 1Q25 segment results vs. vs. $ in millions 1Q25 1Q24 4Q24 Net revenues: Private Client Group RECORD $ 2,548 14% 3% Capital Markets $ 480 42% (1)% Asset Management RECORD $ 294 25% 7% Bank $ 425 (4)% (2)% Consolidated net revenues RECORD $ 3,537 17% 2% Pre-tax income: Private Client Group $ 46
Slide 7: Financial Review
Financial Review Butch Oorlog Chief Financial Officer, Raymond James Financial 7
Slide 8: Consolidated net revenues
Consolidated net revenues vs. vs. $ in millions 1Q25 1Q24 4Q24 Asset management and related administrative fees $ 1,743 24% 5% Brokerage revenues 559 7% —% Account and service fees 342 7% 3% Investment banking 325 80% 3% Interest income 1,027 (2)% (4)% Other 39 3% (35)% Total revenues 4,035 15% 1% I
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) 4.8% 4.6% 4.3% 4.3% 4.2% 58.0 58.2 5
Slide 10: Net interest income & RJBDP fees (third-party banks)
Net interest income & RJBDP fees (third-party banks) $ IN MILLIONS 698 689 672 678 673 152 160 149 146 144 546 529 523 532 529 1Q24 2Q24 3Q24 4Q24 1Q25 Firmwide Net Interest Income RJBDP Fees (Third-Party Banks)* Year-over-year change: (4)% Sequential change: (1)% NET INTEREST MARGIN (NIM) AVERAGE Y
Slide 11: Consolidated expenses
Consolidated expenses TOTAL COMPENSATION RATIO* vs. vs. 1Q25 1Q24 4Q24 65.5% $ in millions 64.7% 64.2% Compensation, commissions and benefits $ 2,272 18% 5% 63.8% 65.2% 64.4% 62.4% Non-compensation expenses: 64.0% 63.4% Communications and information processing 178 19% (2)% 62.1% 1Q24 2Q24 3Q24 4Q24
Slide 12: Consolidated pre-tax margin
Consolidated pre-tax margin 22.7% 21.7% 21.7% 20.4% 20.7% 22.0% 20.9% 21.2% 20.0% 19.5% 1Q24 2Q24 3Q24 4Q24 1Q25 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 13: Other financial information
Other financial information vs. vs. $ in millions, except per share amounts 1Q25 1Q24 4Q24 Total assets $ 82,282 3% (1)% RJF corporate cash* $ 2,339 12% 8% Total common equity attributable to RJF $ 11,844 11% 2% Book value per share $ 57.89 13% 2% Tangible book value per share** $ 49.49 16% 2% Weigh
Slide 14: Capital management
Capital management DIVIDENDS PAID AND SHARE REPURCHASES $ IN MILLIONS Share Repurchases* Dividends Paid** 394 337 302 94 94 $1.4B 245 95 of dividends paid and 95 154 share repurchases over 300 243 the past 5 quarters 150 207 104 50 1Q24 2Q24 3Q24 4Q24 1Q25 $1.45B Number of Shares remains under curre
Slide 15: Bank segment key credit trends
Bank segment key credit trends vs. vs. $ in millions 1Q25 1Q24 4Q24 Bank loan provision for credit losses $ — NM NM Net charge-offs $ 4 (50)% (80)% 1Q24 4Q24 Nonperforming assets as a % of total assets 0.26% 0.27% 0.28% Bank loan allowance for credit losses as a % of loans held for investment 0.95%
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 2023 2024 2024 2024 2024 Net income available to common shareholders $ 497 $ 474 $ 491 $ 601 $ 599 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, 2023 2024 2024 2024 2024 Pre-tax margin (3) 20.9 % 19.5 % 20.0 % 22.0 % 21.2 % 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 2023 2024 2024 2024 2024 Compensation, commissions and benefits expense $ 1,921 $ 2,043 $ 2,090 $ 2,159 $ 2,272 (1) Less: A
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 (5) 2023 2024 2024 Basic $ 2.38 $ 2.93 $ 2.94 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 (5) 2023 2024 2024 Diluted $ 2.32 $ 2.86 $ 2.86 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 2023 2024 2024 Total common equity attributable to Raymond James Financial, Inc. $ 10,711 $ 11,594 $ 11,844
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 2023 2024 2024 Average common equity (7) $ 10,423 $ 11,356 $ 11,719 Impact of non-GAAP adjustments on average common e
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 2023 2024 2024 Average common equity (7) $ 10,423 $ 11,356 $ 11,719 Less: Average goodwill and identifiable i
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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