Raymond James Financial, Inc. · NYSE:RJF

Raymond James Financial — Q1 FY2020 Earnings Presentation

22 slides from Raymond James Financial's earnings presentation, Jan 22, 2020

  1. Slide 1: Fiscal 1Q20 Results

    FISCAL 1Q20 RESULTS January 22, 2020

  2. Slide 2: Fiscal 1Q20 Overview

    FISCAL 1Q20 OVERVIEW Paul Reilly Chairman & CEO, Raymond James Financial 2

  3. Slide 3: Fiscal 1Q20 Highlights

    FISCAL 1Q20 HIGHLIGHTS Compared to Compared to GAAP Results Adjusted* Results vs. vs. vs. vs. $ in millions, except per share amounts 1Q20 1Q19 4Q19 1Q19 4Q19 Net revenues $ 2,009 4% (1)% NA NA Net income RECORD $ 268 8% 1% 2% (6)% Earnings per common share - diluted RECORD $ 1.89 12% 2% 6% (6)% 1Q1

  4. Slide 4: Fiscal 1Q20 Key Metrics

    FISCAL 1Q20 KEY METRICS vs. vs. $ in billions 1Q20 1Q19 4Q19 Client assets under administration RECORD $ 896.0 24% 7% Private Client Group (PCG) assets under administration RECORD $ 855.2 24% 7% PCG assets in fee-based accounts RECORD $ 444.2 31% 9% Financial assets under management RECORD $ 151.7 2

  5. Slide 5: Private Client Group

    PRIVATE CLIENT GROUP Net Revenues Pre-Tax Income $ in millions $ in millions 1,414 12.1% 1,381 10.8% 1,356 1,351 10.4% 10.4% 10.4% 1,271 164 143 153 132 140 1Q19 2Q19 3Q19 4Q19 1Q20 1Q19 2Q19 3Q19 4Q19 1Q20 Year-over-year change: 4% Year-over-year change: (7)% Sequential change: 2% Pre-Tax Income Pr

  6. Slide 6: Capital Markets

    CAPITAL MARKETS Net Revenues Pre-Tax Income $ in millions $ in millions 14.8% 302 9.6% 10.9% 10.8% 277 268 253 251 4.7% 41 33 24 29 12 1Q19 2Q19 3Q19 4Q19 1Q20 1Q19* 2Q19 3Q19 4Q19* 1Q20 Year-over-year change: 6% Year-over-year change: 142% Sequential change: (11)% Pre-Tax Income Pre-Tax Margin Sequ

  7. Slide 7: Asset Management

    ASSET MANAGEMENT Net Revenues Pre-Tax Income $ in millions $ in millions 38.8% 39.7% 184 36.8% 34.0% 36.7% 174 177 178 162 69 73 64 65 55 1Q19 2Q19 3Q19 4Q19 1Q20 1Q19 2Q19 3Q19 4Q19 1Q20 Year-over-year change: 6% Year-over-year change: 14% Sequential change: 3% Pre-Tax Income Pre-Tax Margin Sequent

  8. Slide 8: Raymond James Bank

    RAYMOND JAMES BANK Net Revenues Pre-Tax Income $ in millions $ in millions 216 216 64.2% 64.2% 62.5% 212 215 60.6% 203 54.2% 136 138 131 135 110 1Q19 2Q19 3Q19 4Q19 1Q20 1Q19 2Q19 3Q19 4Q19 1Q20 Year-over-year change: 6% Year-over-year change: 23% Sequential change: 0% Pre-Tax Income Pre-Tax Margin

  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 1Q20 1Q19 4Q19 Asset management and related administrative fees $ 955 10% 3% Brokerage revenues 460 (1)% 2% Account and service fees 178 (4)% (1)% Investment banking 141 3% (10)% Interest income 297 (6)% (7)% Other 29 (22)% (47)% Total revenues 2,060 3

  11. Slide 11: Domestic Cash Sweep Balances

    DOMESTIC CASH SWEEP BALANCES Clients' Domestic Cash Sweep Balances as a % of Domestic PCG Assets Under Administration (AUA) 7.2% A U ) A B G $ ( C s 5.8% P e c c i t n 5.1% 5.0% s a 4.9% l e a m B 46.8 o p D e f e 2.9 41.7 o w 39.5 % S 38.2 4.4 2.3 37.7 a h s 2.5 4.0 2.1 s a 2.0 a C s c e i 18.3 c t

  12. Slide 12: Net Interest Income & RJBDP Fees (Third-Party Banks)

    NET INTEREST INCOME & RJBDP FEES (THIRD-PARTY BANKS) Firmwide Net Interest Income RJBDP Fees (Third-Party Banks)* 329 323 311 315 304 s n 80 67 65 o 68 58 i l l i m n i $ 243 249 248 258 246 1Q19 2Q19 3Q19 4Q19 1Q20 Raymond James Bank Average Yield on RJBDP Net Interest Margin** (Third-Party Banks)*

  13. Slide 13: Consolidated Expenses

    CONSOLIDATED EXPENSES Total Compensation Ratio vs. vs. $ in millions 1Q20 1Q19 4Q19 67.2% 65.5% 65.9% 66.3% Compensation, commissions and benefits $ 1,351 7% 2% 65.2% Non-compensation expenses: Communications and information processing 94 2% (1)% Occupancy and equipment 57 12% (3)% 1Q19 2Q19 3Q19 4Q

  14. Slide 14: Consolidated Pre-Tax Margin

    CONSOLIDATED PRE-TAX MARGIN 18.7% 18.4% 18.0% 17.9% 17.7% 17.5% 17.2% 1Q19* 2Q19 3Q19 4Q19* 1Q20 Pre-tax margin (GAAP) Pre-tax margin (Adjusted)** * 1Q19 included a $15 million loss in our Capital Markets segment on the sale of our operations related to research, sales and trading of 14 European equ

  15. Slide 15: Capital Management

    CAPITAL MANAGEMENT Dividends Paid and Share Repurchases* $ in millions Share Repurchases* Dividends Paid 505 47 Total of ~$1 billion over the past 5 quarters 458 209 48 133 95 48 62** 48 161 85 47 51 1Q19 2Q19 3Q19 4Q19 1Q20 Number of Shares Repurchased* 6,053 603 1,044 2,127 126 (thousands) Average

  16. Slide 16: Outlook

    OUTLOOK RAYMOND JAMES

  17. Slide 17: Appendix

    APPENDIX " RAYMOND JAMES

  18. Slide 18: Reconciliation of GAAP Measures to Non-GAAP Financial Measures

    RECONCILIATION OF GAAP MEASURES TO NON-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 identified

  19. Slide 19: Reconciliation of GAAP Measures to Non-GAAP Financial Measures

    RECONCILIATION OF GAAP MEASURES TO NON-GAAP FINANCIAL MEASURES (UNAUDITED) Three months ended $ in millions, except per share amounts December 31, 2018 September 30, 2019 Net income $ 249 $ 265 Non-GAAP adjustments: Acquisition and disposition-related expenses (1) 15 — Goodwill impairment (2) — 19 P

  20. Slide 20: Reconciliation of GAAP Measures to Non-GAAP Financial Measures

    RECONCILIATION OF GAAP MEASURES TO NON-GAAP FINANCIAL MEASURES (UNAUDITED) Book value per share As of $ in millions, except per share amounts December 31, 2018 September 30, 2019 December 31, 2019 Total equity attributable to Raymond James Financial, Inc. $ 6,143 $ 6,581 $ 6,842 Less non-GAAP adjust

  21. Slide 21: Reconciliation of GAAP Measures to Non-GAAP Financial Measures

    RECONCILIATION OF GAAP MEASURES TO NON-GAAP FINANCIAL MEASURES (UNAUDITED) Return on equity Three months ended $ in millions December 31, 2018 September 30, 2019 December 31, 2019 Average equity (6) $ 6,256 $ 6,542 $ 6,712 Impact on average equity of non-GAAP adjustments: Acquisition and disposition

  22. Slide 22: Footnotes

    FOOTNOTES 1. The three months ended December 31, 2018 included a loss in our Capital Markets segment on the sale of our operations related to research, sales and trading of European equities. 2. The three months ended September 30, 2019 included a $19 million goodwill impairment charge associated wi

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