Raymond James Financial : Q1 2023 Earnings Supplement

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Quarterly Financial Supplement

First quarter of fiscal 2023 results

RAYMOND JAMES FINANCIAL, INC.

TABLE OF CONTENTS

	PAGE
Consolidated Statements of Income (Unaudited)	3
Consolidated Selected Key Metrics (Unaudited)	4
Segment Results
Private Client Group (Unaudited)	6
Capital Markets (Unaudited)	7
Asset Management (Unaudited)	8
Bank (Unaudited)	9
Other (Unaudited)	10
Bank Segment Selected Key Metrics (Unaudited)	11
Reconciliation of non-GAAP financial measures to GAAP financial measures (Unaudited)	12
Footnotes	18

RAYMOND JAMES FINANCIAL, INC.

Consolidated Statements of Income (Unaudited)

						Three months ended						% change from
$ in millions, except per share amounts		December 31,			March 31,			June 30,		September 30,		December 31,		December 31,		September 30,
	2021			2022			2022			2022			2022		2021		2022
Revenues:
Asset management and related administrative fees	$	1,382	$	1,464	$	1,427	$	1,290	$	1,242	(10)%	(4)%
Brokerage revenues:
Securities commissions		425			422			385			357			352	(17)%	(1)%
Principal transactions		133			142			128			124			132	(1)%	6 %
Total brokerage revenues		558			564			513			481			484	(13)%	1 %
Account and service fees		177			179			211			266			289	63 %	9 %
Investment banking		425			235			223			217			141	(67)%	(35)%
Interest income		225			242			374			667			827	268 %	24 %
Other		51			27			30			80			44	(14)%	(45)%
Total revenues		2,818			2,711			2,778			3,001			3,027	7 %	1 %
Interest expense		(37)			(38)			(60)			(170)			(241)	551 %	42 %
Net revenues		2,781			2,673			2,718			2,831			2,786		- %	(2)%
Non-interest expenses:
Compensation, commissions and benefits (1)		1,884			1,852			1,834			1,759			1,736	(8)%	(1)%
Non-compensation expenses:
Communications and information processing		112			127			129			138			139	24 %	1 %
Occupancy and equipment		59			62			65			66			66	12 %		- %
Business development		35			34			58			59			56	60 %	(5)%
Investment sub-advisory fees		38			40			38			36			34	(11)%	(6)%
Professional fees		28			27			38			38			32	14 %	(16)%
Bank loan provision/(benefit) for credit losses		(11)			21			56			34			14		NM	(59)%
Other (2)		78			77			85			85			57	(27)%	(33)%
Total non-compensation expenses		339			388			469			456			398	17 %	(13)%
Total non-interest expenses		2,223			2,240			2,303			2,215			2,134	(4)%	(4)%
Pre-tax income		558			433			415			616			652	17 %	6 %
Provision for income taxes		112			110			114			177			143	28 %	(19)%
Net income		446			323			301			439			509	14 %	16 %
Preferred stock dividends		-			-			2			2			2		NM		- %
Net income available to common shareholders	$	446		$	323		$	299		$	437		$	507	14 %	16 %
Earnings per common share - basic (3)
$	2.16		$	1.56		$	1.41		$	2.03		$	2.36	9 %	16 %
Earnings per common share - diluted (3)	$	2.10	$	1.52	$	1.38	$	1.98	$	2.30	10 %	16 %
Weighted-average common shares outstanding - basic		206.3			207.7			210.7			215.0			214.7	4 %		- %
Weighted-average common and common equivalent shares outstanding - diluted															4 %		- %
	212.4			213.0			215.7			220.6			220.4

Please refer to the footnotes at the end of this supplement for additional information.

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RAYMOND JAMES FINANCIAL, INC.

Consolidated Selected Key Metrics (Unaudited)

												As of															% change from
$ in millions, except per share amounts			December 31,			March 31,					June 30,			September 30,		December 31,		December 31,	September 30,
	2021				2022					2022				2022			2022			2021			2022
Total assets	$	68,461		$	73,101			$	86,111	$	80,951	$	77,047			13 %			(5)%
Total common equity attributable to Raymond James Financial,	$	8,600		$	8,602			$	9,395	$	9,338	$	9,736			13 %			4 %
Inc.
Book value per share (4)	$	41.45		$	41.38			$	43.60	$	43.41	$	45.28			9 %			4 %
Tangible book value per share (4) (5)	$	37.55		$	36.46			$	35.79	$	35.02	$	36.87			(2)%			5 %
Capital ratios:
Tier 1 leverage		12.1 %			11.1 %			10.8 %			10.3 %			11.3 % (6)
Tier 1 capital		25.9 %			23.9 %			20.2 %			19.2 %			20.3 % (6)
Common equity tier 1		25.9 %			23.9 %			20.0 %			19.0 %			20.0 % (6)
Total capital		27.0 %			25.0 %			21.5 %			20.4 %			21.5 % (6)
												Three months ended									% change from
$ in millions					December 31,				March 31,	June 30,			September 30,			December 31,		December 31,		September 30,
					2021					2022			2022			2022			2022			2021				2022
Adjusted pre-tax income (5)				$	579	$			464		$	480	$	646	$	649	12 %		- %
Adjusted net income available to common shareholders (5)				$	462	$			346		$	348	$	459	$	505	9 %	10 %
Adjusted earnings per common share - basic (3) (5)				$	2.23	$			1.67		$	1.65	$	2.13	$	2.35	5 %	10 %
Adjusted earnings per common share - diluted (3) (5)				$	2.17	$			1.62		$	1.61	$	2.08	$	2.29	6 %	10 %
Return on common equity (7)						21.2 %					15.0 %			13.3 %			18.7 %			21.3 %
Adjusted return on common equity (5) (7)						21.9 %					16.1 %			15.4 %			19.6 %			21.2 %
Adjusted return on tangible common equity (5) (7)						24.3 %					18.0 %			18.1 %			24.1 %			26.1 %
Pre-tax margin (8)						20.1 %					16.2 %			15.3 %			21.8 %			23.4 %
Adjusted pre-tax margin (5) (8)						20.8 %					17.4 %			17.7 %			22.8 %			23.3 %
Total compensation ratio (9)						67.7 %					69.3 %			67.5 %			62.1 %			62.3 %
Adjusted total compensation ratio (5) (9)						67.3 %					68.8 %			66.8 %			61.5 %			61.7 %
Effective tax rate						20.1 %					25.4 %			27.5 %			28.7 %			21.9 %

Please refer to the footnotes at the end of this supplement for additional information.

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RAYMOND JAMES FINANCIAL, INC.

Consolidated Selected Key Metrics (Unaudited)

									As of								% change from
			December 31,			March 31,			June 30,		September 30,		December 31,		December 31,		September 30,
			2021			2022			2022			2022			2022		2021		2022
Client asset metrics ($ in billions):
Client assets under administration	$	1,257.8	$	1,256.1	$	1,125.3	$	1,093.1	$	1,169.7	(7)%	7 %
Private Client Group assets under administration	$	1,199.8	$	1,198.3	$	1,068.8	$	1,039.0	$	1,114.3	(7)%	7 %
Private Client Group assets in fee-based accounts	$	677.8	$	678.0	$	606.7	$	586.0	$	633.1	(7)%	8 %
Financial assets under management	$	203.2	$	193.7	$	182.4	$	173.8	$	185.9	(9)%	7 %

Net new assets metrics (10) ($ in millions)																			Three months ended
											December 31,			March 31,				June 30,			September 30,		December 31,
												2021					2022						2022						2022					2022
Domestic Private Client Group net new assets								$	36,101	$	24,093	$	14,663				$	20,184			$	23,226
Domestic Private Client Group net new assets growth - annualized											13.7 %			8.6 %			5.4 %			8.3 %			9.8 %
									As of																	% change from
			December 31,			March 31,			June 30,		September 30,	December 31,		December 31,		September 30,
			2021			2022			2022			2022						2022						2021					2022
Clients' domestic cash sweep balances ($ in millions):
Raymond James Bank Deposit Program ("RJBDP"): (11)
Bank segment (11)	$	33,097	$	33,570	$				36,646	$			38,705			$			39,098						18 %					1 %
Third-party banks		24,316			25,887						25,478					21,964						18,231						(25)%					(17)%
Subtotal RJBDP		57,413			59,457						62,124					60,669						57,329						- %			(6)%
Client Interest Program		16,065			17,013						13,717					6,445						3,053						(81)%					(53)%
Total clients' domestic cash sweep balances	$	73,478		$	76,470		$				75,841		$			67,114			$			60,382						(18)%					(10)%
																	Three months ended
									December 31,		March 31,			June 30,	September 30,		December 31,
									2021			2022						2022						2022					2022
Average yield on RJBDP - third-party banks (12)											0.28 %					0.32 %						0.88 %						1.85 %					2.72 %
									As of																	% change from
			December 31,			March 31,			June 30,		September 30,	December 31,		December 31,		September 30,
			2021			2022			2022			2022						2022						2021					2022
Private Client Group financial advisors:
Employees		3,447			3,601						3,615					3,638						3,631						5 %					- %
Independent contractors		5,017			5,129						5,001					5,043						5,068						1 %					- %
Total advisors		8,464			8,730						8,616					8,681						8,699						3 %					- %

Please refer to the footnotes at the end of this supplement for additional information.

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