Raymond James Financial, Inc. · NYSE:RJF
Raymond James Financial — Q4 2024 Earnings Presentation
29 slides from Raymond James Financial's earnings presentation, Oct 23, 2024
Slide 1: Fourth Quarter & Fiscal 2024 Results
Fourth Quarter & Fiscal 2024 Results October 23, 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 4Q24 highlights
Fiscal 4Q24 highlights vs. vs. $ in millions, except per share amounts 4Q24 4Q23 3Q24 As reported: Net revenues RECORD $ 3,462 13% 7% Net income available to common shareholders RECORD $ 601 39% 22% Earnings per common share — diluted RECORD $ 2.86 42% 24% 4Q23 3Q24 Return on common equity — annuali
Slide 5: Fiscal 4Q24 key metrics
Fiscal 4Q24 key metrics vs. vs. $ in billions 4Q24 4Q23 3Q24 Client assets under administration RECORD $ 1,571.1 25% 6% Private Client Group (PCG) assets under administration RECORD $ 1,507.0 25% 6% PCG assets in fee-based accounts RECORD $ 875.2 28% 7% Financial assets under management RECORD $ 244
Slide 6: Fiscal 4Q24 segment results
Fiscal 4Q24 segment results vs. vs. $ in millions 4Q24 4Q23 3Q24 Net revenues: Private Client Group RECORD $ 2,476 9% 2% Capital Markets $ 483 42% 46% Asset Management RECORD $ 275 17% 4% Bank $ 433 (4)% 4% Consolidated net revenues RECORD $ 3,462 13% 7% Pre-tax income: Private Client Group $ 461 (3
Slide 7: FY 2024 highlights
FY 2024 highlights vs. $ in millions, except per share amounts FY 2024 FY 2023 As reported: Net revenues RECORD $ 12,821 10% Net income available to common shareholders RECORD $ 2,063 19% Earnings per common share — diluted RECORD $ 9.70 22% FY 2023 Return on common equity 18.9% 17.7% vs. FY 2023 No
Slide 8: FY 2024 segment results
FY 2024 segment results vs. $ in millions FY 2024 FY 2023 Net revenues: Private Client Group RECORD $ 9,459 9% Capital Markets $ 1,472 21% Asset Management RECORD $ 1,027 16% Bank $ 1,716 (15)% Consolidated net revenues RECORD $ 12,821 10% Pre-tax income: Private Client Group RECORD $ 1,785 1% Capit
Slide 9: Financial Review
Financial Review Butch Oorlog Chief Financial Officer, Raymond James Financial 9
Slide 10: Consolidated net revenues
Consolidated net revenues vs. vs. $ in millions 4Q24 4Q23 3Q24 Asset management and related administrative fees $ 1,662 15% 3% Brokerage revenues 561 17% 5% Account and service fees 332 6% 1% Investment banking 315 56% 72% Interest income 1,073 5% 2% Other 60 11% 18% Total revenues 4,003 14% 6% Inte
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) 5.1% 4.8% 4.6% 4.3% 4.2% 56.4 58.0 5
Slide 12: Net interest income & RJBDP fees (third-party banks)
Net interest income & RJBDP fees (third-party banks) $ IN MILLIONS 711 698 689 672 678 154 152 160 149 146 557 546 529 523 532 4Q23 1Q24 2Q24 3Q24 4Q24 Firmwide Net Interest Income RJBDP Fees (Third-Party Banks)* Year-over-year change: (5)% Sequential change: 1% NET INTEREST MARGIN (NIM) AVERAGE YIE
Slide 13: Consolidated expenses
Consolidated expenses TOTAL COMPENSATION RATIO** vs. vs. $ in millions 4Q24 4Q23 3Q24 65.5% 64.7% 63.8% Compensation, commissions and benefits $ 2,159 14% 3% 62.0% 62.4% 65.2% 64.4% Non-compensation expenses: 63.4% 62.1% 61.4% Communications and information processing 181 15% 9% 4Q23 1Q24 2Q24 3Q24
Slide 14: Consolidated pre-tax margin
Consolidated pre-tax margin 22.7% 21.7% 20.3% 20.4% 20.7% 22.0% 20.9% 20.0% 19.2% 19.5% 4Q23 1Q24 2Q24 3Q24 4Q24 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 4Q24 4Q23 3Q24 Total assets $ 82,992 6% 3% RJF corporate cash* $ 2,162 4% 3% Total common equity attributable to RJF $ 11,594 14% 4% Book value per share $ 57.03 17% 5% Tangible book value per share** $ 48.43 21% 6% Weighted
Slide 16: 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 share repurchases over 300 88 243 the past 5 quarters 150 207 88 4Q23 1Q24 2Q24 3Q24 4Q24 ~$645M Number of Shares remains under current Re
Slide 17: Bank segment key credit trends
Bank segment key credit trends vs. vs. $ in millions 4Q24 4Q23 3Q24 Bank loan provision for credit losses $ 22 (39)% NM Net charge-offs $ 20 18% 233% 4Q23 3Q24 Nonperforming assets as a % of total assets 0.28% 0.21% 0.26% Bank loan allowance for credit losses as a % of loans held for investment 0.99
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 Twelve months ended September 30, December 31, March 31, June 30, September 30, September 30, September 30, $ in millions 2023 2023 2024 2024 2024 2023 2024 Net income available to common sharehol
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 September 30, December 31, March 31, June 30, September 30, 2023 2023 2024 2024 2024 Pre-tax margin (4) 19.2 % 20.9 % 19.5 % 20.0 % 22.0 % Impact of non-GAAP adjustments on pre-tax margin: Expense
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 September 30, December 31, March 31, June 30, September 30, $ in millions 2023 2023 2024 2024 2024 Compensation, commissions and benefits expense $ 1,892 $ 1,921 $ 2,043 $ 2,090 $ 2,159 (1) Less:
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 Twelve months ended September 30, June 30, September 30, September 30, September 30, Earnings per common share (6) 2023 2024 2024 2023 2024 Basic $ 2.07 $ 2.37 $ 2.93 $ 8.16 $ 9.94 Impact of non-G
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 Twelve months ended September 30, June 30, September 30, September 30, September 30, Earnings per common share (6) 2023 2024 2024 2023 2024 Diluted $ 2.02 $ 2.31 $ 2.86 $ 7.97 $ 9.70 Impact of non
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 September 30, June 30, September 30, $ in millions, except per share amounts 2023 2024 2024 Total common equity attributable to Raymond James Financial, Inc. $ 10,135 $ 11,118 $ 11,594 Les
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 Twelve months ended September 30, June 30, September 30, September 30, September 30, $ in millions 2023 2024 2024 2023 2024 Average common equity (8) $ 10,003 $ 11,012 $ 11
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 Twelve months ended September 30, June 30, September 30, September 30, September 30, $ in millions 2023 2024 2024 2023 2024 Average common equity (8) $ 10,003 $ 11
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
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