Raymond James Financial, Inc. · NYSE:RJF

Raymond James Financial — Q3 2023 Earnings Presentation

29 slides from Raymond James Financial's earnings presentation, Jul 26, 2023

  1. Slide 1: Fiscal 3Q23 Results

    Fiscal 3Q23 Results July 26, 2023

  2. 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

  3. Slide 3: Overview of Results

    Overview of Results Paul Reilly Chair & CEO, Raymond James Financial 3

  4. Slide 4: Fiscal 3Q23 highlights

    Fiscal 3Q23 highlights vs. vs. $ in millions, except per share amounts 3Q23 3Q22 2Q23 As reported: Net revenues RECORD $ 2,907 7% 1% Net income available to common shareholders $ 369 23% (13)% Earnings per common share - diluted $ 1.71 24% (11)% 3Q22 2Q23 Return on common equity 14.9% 13.3% 17.3% vs

  5. Slide 5: Fiscal 3Q23 key metrics

    Fiscal 3Q23 key metrics vs. vs. $ in billions 3Q23 3Q22 2Q23 Client assets under administration RECORD $ 1,280.9 14% 5% Private Client Group (PCG) assets under administration RECORD $ 1,227.0 15% 5% PCG assets in fee-based accounts RECORD $ 697.0 15% 5% Financial assets under management $ 200.7 10%

  6. Slide 6: Fiscal 3Q23 segment results

    Fiscal 3Q23 segment results vs. vs. $ in millions 3Q23 3Q22 2Q23 Net revenues: Private Client Group RECORD $ 2,182 11% 2% Capital Markets $ 276 (28)% (9)% Asset Management $ 226 (1)% 5% Bank $ 514 86% (5)% Consolidated net revenues RECORD $ 2,907 7% 1% Pre-tax income/(loss): Private Client Group $ 4

  7. Slide 7: FYTD 2023 highlights (9 months)

    FYTD 2023 highlights (9 months) vs. $ in millions, except per share amounts FYTD 2023 FYTD 2022 As reported: Net revenues RECORD $ 8,566 5% Net income available to common shareholders RECORD $ 1,301 22% Earnings per common share - diluted RECORD $ 5.95 19% FYTD 2022 Return on common equity 17.9% 16.

  8. Slide 8: FYTD 2023 segment results (9 months)

    FYTD 2023 segment results (9 months) vs. $ in millions FYTD 2023 FYTD 2022 Net revenues: Private Client Group RECORD $ 6,389 12% Capital Markets $ 873 (38)% Asset Management $ 649 (7)% Bank RECORD $ 1,562 138% Consolidated net revenues RECORD $ 8,566 5% Pre-tax income/(loss): Private Client Group RE

  9. Slide 9: Financial Review

    Financial Review Paul Shoukry Chief Financial Officer, Raymond James Financial 9

  10. Slide 10: Consolidated net revenues

    Consolidated net revenues vs. vs. $ in millions 3Q23 3Q22 2Q23 Asset management and related administrative fees $ 1,373 (4)% 5% Brokerage revenues 461 (10)% (7)% Account and service fees 264 25% 2% Investment banking 151 (32)% (2)% Interest income 987 164% 8% Other 57 90% 78% Total revenues 3,293 19

  11. 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) 7.8% Cash Sweep & ESP Balances as a % of Domestic PCG Clients' Domestic Cash Sweep & ESP Balances ($B) 7.0% 5.9% 75.8 67.1 5.2% 4.9% 1

  12. Slide 12: Net interest income & RJBDP fees (third-party banks)

    Net interest income & RJBDP fees (third-party banks) $ IN MILLIONS 723 731 708 606 137 100 107 109 370 56 631 586 601 497 314 3Q22 4Q22 1Q23 2Q23 3Q23 Firmwide Net Interest Income RJBDP Fees (Third-Party Banks)* Year-over-year change: 91% Sequential change: (3%) NET INTEREST MARGIN (NIM) AVERAGE YIE

  13. Slide 13: Consolidated expenses

    Consolidated expenses TOTAL COMPENSATION RATIO** vs. vs. $ in millions 3Q23 3Q22 2Q23 67.5% 63.3% 63.7% Compensation, commissions and benefits $ 1,851 1% 2% 66.8% 62.1% 62.3% Non-compensation expenses: 62.8% 62.7% 61.5% 61.7% Communications and information processing 149 16% (3)% 3Q22 4Q22 1Q23 2Q23

  14. Slide 14: Consolidated pre-tax margin

    Consolidated pre-tax margin 23.4% 22.8% 23.3% 20.4% 21.8% 17.7% 18.1% 19.4% 16.7% 15.3% 3Q22 4Q22 1Q23 2Q23 3Q23 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

  15. Slide 15: Other financial information

    Other financial information vs. vs. $ in millions, except per share amounts 3Q23 3Q22 2Q23 Total assets $ 77,633 (10)% (2)% RJF corporate cash* $ 1,718 (15)% (6)% Total common equity attributable to RJF $ 9,870 5% —% Book value per share $ 47.34 9% 1% Tangible book value per share** $ 38.71 8% 1% We

  16. Slide 16: Capital management

    Capital management DIVIDENDS PAID AND SHARE REPURCHASES $ IN MILLIONS Share Repurchases* Dividends Paid** 441 390 91 90 $1.4B 217 of dividends paid and 171 79 350 135 share repurchases over 71 300 the past 5 quarters 73 138 100 62 3Q22 4Q22 1Q23 2Q23 3Q23 $750M Number of Shares remains under current

  17. Slide 17: Bank segment key credit trends

    Bank segment key credit trends vs. vs. $ in millions 3Q23 3Q22 2Q23 Bank loan provision for credit losses $ 54 (4)% 93% Net charge-offs $ 15 50% (25)% 3Q22 2Q23 Nonperforming assets as a % of total assets 0.21% 0.17% 0.16% Bank loan allowance for credit losses as a % of loans held for investment 1.0

  18. Slide 18: Outlook

    Outlook RAYMOND JAMES

  19. Slide 19: Appendix

    Appendix RAYMOND JAMES

  20. Slide 20: Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited)

    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

  21. Slide 21: Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited)

    Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited) Three months ended Nine months ended June 30, September 30, December 31, March 31, June 30, June 30, June 30, $ in millions 2022 2022 2022 2023 2023 2022 2023 Net income available to common shareholders $ 299 $ 437

  22. Slide 22: Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited)

    Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited) Three months ended Nine months ended June 30, September 30, December 31, March 31, June 30, June 30, June 30, 2022 2022 2022 2023 2023 2022 2023 Pre-tax margin (5) 15.3 % 21.8 % 23.4 % 19.4 % 16.7 % 17.2 % 19.8 % Im

  23. Slide 23: Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited)

    Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited) Three months ended September 30, December 31, $ in millions June 30, 2022 2022 2022 March 31, 2023 June 30, 2023 Compensation, commissions and benefits expense $ 1,834 $ 1,759 $ 1,736 $ 1,820 $ 1,851 (1) Less: Total

  24. Slide 24: Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited)

    Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited) Three months ended Nine months ended June 30, March 31, June 30, June 30, June 30, Earnings per common share (7) 2022 2023 2023 2022 2023 Basic $ 1.41 $ 1.97 $ 1.75 $ 5.12 $ 6.09 Impact of non-GAAP adjustments on ba

  25. Slide 25: Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited)

    Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited) Three months ended Nine months ended June 30, March 31, June 30, June 30, June 30, Earnings per common share (7) 2022 2023 2023 2022 2023 Diluted $ 1.38 $ 1.93 $ 1.71 $ 4.99 $ 5.95 Impact of non-GAAP adjustments on

  26. Slide 26: Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited)

    Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited) Book value per share As of $ in millions, except per share amounts June 30, 2022 March 31, 2023 June 30, 2023 Total common equity attributable to Raymond James Financial, Inc. $ 9,395 $ 9,875 $ 9,870 Less non-GAAP a

  27. Slide 27: Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited)

    Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited) Return on common equity Three months ended Nine months ended June 30, March 31, June 30, June 30, June 30, $ in millions 2022 2023 2023 2022 2023 Average common equity (9) $ 8,999 $ 9,806 $ 9,873 $ 8,711 $ 9,705 Imp

  28. Slide 28: Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited)

    Reconciliation of non-GAAP financial measures to GAAP financial measures (unaudited) Return on tangible common equity Three months ended Nine months ended June 30, March 31, June 30, June 30, June 30, $ in millions 2022 2023 2023 2022 2023 Average common equity (9) $ 8,999 $ 9,806 $ 9,873 $ 8,711 $

  29. 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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