Raymond James Financial, Inc. · NYSE:RJF
Raymond James Financial — Q1 FY2021 Earnings Presentation
22 slides from Raymond James Financial's earnings presentation, Jan 27, 2021
Slide 1: Fiscal 1Q21 Results
FISCAL 1Q21 RESULTS January 27, 2021
Slide 2: Overview of Results
2 Paul Reilly Chairman & CEO, Raymond James Financial OVERVIEW OF RESULTS
Slide 3: Fiscal 1Q21 Highlights
3 * 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 measures and for more information on these measures. FISCAL 1Q21 HIGHLIGHTS $ in millions, except per share amounts 1Q21 vs. 1Q20
Slide 4: Fiscal 1Q21 Key Metrics
4 FISCAL 1Q21 KEY METRICS $ in billions 1Q21 vs. 1Q20 vs. 4Q20 Client assets under administration RECORD $ 1,024.8 14% 10% Private Client Group (PCG) assets under administration RECORD $ 974.2 14% 10% PCG assets in fee-based accounts RECORD $ 532.7 20% 12% Financial assets under management RECORD $
Slide 5: Fiscal 1Q21 Segment Results
5 FISCAL 1Q21 SEGMENT RESULTS $ in millions 1Q21 vs. 1Q20 vs. 4Q20 Net Revenues: Private Client Group $ 1,467 4% 5% Capital Markets RECORD $ 452 69% 10% Asset Management RECORD $ 195 6% 6% Raymond James Bank $ 167 (23)% 4% Consolidated net revenues RECORD $ 2,222 11% 7% Pre-Tax Income: Private Clien
Slide 6: Recent Acquisitions
6 RECENT ACQUISITIONS NWPS Holdings, Inc. • Independent provider of retirement plan administration, consulting, actuarial and administration services • Expands Raymond James' retirement services offerings, including retirement plan administration services, for advisors and clients • Combined with Ra
Slide 7: Financial Review
7 Paul Shoukry Chief Financial Officer, Raymond James Financial FINANCIAL REVIEW
Slide 8: Consolidated Net Revenues
8 CONSOLIDATED NET REVENUES $ in millions 1Q21 vs. 1Q20 vs. 4Q20 Asset management and related administrative fees $ 1,067 12% 6% Brokerage revenues 528 15% 7% Account and service fees 145 (19)% 4% Investment banking 261 85% 18% Interest income 203 (32)% 1% Other* 56 93% (2)% Total revenues 2,260 10%
Slide 9: Domestic Cash Sweep Balances
9 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 10: Net Interest Income & RJBDP Fees (Third-Party Banks)
10 NET INTEREST INCOME & RJBDP FEES (THIRD-PARTY BANKS) * As reported in Account and Service Fees in the PCG segment. ** Raymond James Bank represents a significant portion, but not all, of the firmwide Net Interest Income. Raymond James Bank Net Interest Margin represents the net yield on interest-
Slide 11: Consolidated Expenses
11 CONSOLIDATED EXPENSES $ in millions 1Q21 vs. 1Q20 vs. 4Q20(1) Compensation, commissions and benefits $ 1,500 11% 6% Non-compensation expenses: Communications and information processing 99 5% (1)% Occupancy and equipment 57 —% —% Business development 23 (48)% (18)% Investment sub-advisory fees 28
Slide 12: Pre-Tax Margin
12 * 4Q20 included a $7 M 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 $46 M in our Other segment related to the reduction in workforce expenses associated with position eliminations
Slide 13: Other Financial Information
13 OTHER FINANCIAL INFORMATION $ in millions, except per share amounts 1Q21 vs. 1Q20 vs. 4Q20 Total assets $ 53,657 34% 13% RJF corporate cash* $ 1,788 25% (17)% Total equity attributable to RJF $ 7,363 8% 4% Book value per share $ 53.59 9% 3% Tangible book value per share** $ 47.93 6% —% Weighted-a
Slide 14: Capital Management
14 Dividends Paid and Share Repurchases* $ in millions 62 254 51 101 65 202 5051 52 51 51 55 Share Repurchases* Dividends Paid 1Q20 2Q20 3Q20 4Q20 1Q21 CAPITAL MANAGEMENT $740 million remains under current share repurchase authorization Number of Shares Repurchased* (thousands) 126 2,548 — 678 108 A
Slide 15: Raymond James Bank Asset Composition
15 REIT Loa… Tax-Exempt Loans: 4% Loans … Cash … RAYMOND JAMES BANK ASSET COMPOSITION * As a result of our adoption of CECL, we have redefined certain of our loan portfolio segments to align with the new methodology applied in determining the allowance for credit losses, including the combination of
Slide 16: Raymond James Bank Key Credit Trends
16 RAYMOND JAMES BANK KEY CREDIT TRENDS $ in millions 1Q21 vs. 1Q20 vs. 4Q20 Bank loan provision for credit losses* $ 14 NM (69)% Net charge-offs** $ — —% (100)% 1Q20 4Q20 Nonperforming assets as a % of total assets 0.09 % 0.16% 0.10% Bank loan allowance for credit losses as a % of loans held for in
Slide 17: Outlook
7 OUTLOOK RAYMOND JAMES
Slide 18: Appendix
APPENDIX 6 RAYMOND JAMES
Slide 19: Non-GAAP Reconciliation: Net Income and Pre-Tax Margin
19 Note: Please refer to the footnotes on slide 22 for additional information. Three months ended $ in millions September 30, 2020 December 31, 2020 Net income $ 209 $ 312 Non-GAAP adjustments: Acquisition and disposition-related expenses (1) 7 2 Reduction in workforce expenses (2) 46 — Pre-tax impa
Slide 20: Non-GAAP Reconciliation: Book Value and EPS
20 Note: Please refer to the footnotes on slide 22 for additional information. continued on next slide Book value per share As of $ in millions, except per share amounts December 31, 2019 September 30, 2020 December 31, 2020 Total equity attributable to Raymond James Financial, Inc. $ 6,842 $ 7,114
Slide 21: Non-GAAP Reconciliation: Return on Equity
21 Note: Please refer to the footnotes on slide 22 for additional information. Return on equity Three months ended $ in millions December 31, 2019 September 30, 2020 December 31, 2020 Average equity (6) $ 6,712 $ 7,040 $ 7,239 Impact on average equity of non-GAAP adjustments: Acquisition and disposi
Slide 22: Footnotes
22 FOOTNOTES 1. The three months ended September 30, 2020 included a $7 million loss in our Capital Markets segment related to the sale of our interests in certain entities that operated predominantly in France, which closed during our fiscal first quarter of 2021. The three months ended December 31
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