Q4 2021 Earnings Supplement

EARNINGS RELEASE FINANCIAL SUPPLEMENT

FOURTH QUARTER

AND FISCAL 2021 RESULTS

RAYMOND JAMES FINANCIAL, INC.

Consolidated Statements of Income (Unaudited)

						Three months ended						% change from			Twelve months ended
in millions, except per share amounts		September 30,		December 31,		March 31,		June 30,		September 30,		September 30,		June 30,		September 30,		September 30,	%
	2020			2020			2021			2021			2021		2020		2021			2020			2021		change
Revenues:
Asset management and related administrative fees	$	1,006	$	1,067	$	1,173	$	1,262	$	1,366	36 %	8 %	$	3,834	$	4,868		27 %
Brokerage revenues:
Securities commissions		352			381			443			415			412	17 %	(1)%			1,468			1,651		12 %
Principal transactions		143			147			148			137			129	(10)%	(6)%			488			561		15 %
Total brokerage revenues		495			528			591			552			541	9 %	(2)%			1,956			2,212		13 %
Account and service fees		140			145			159			161			170	21 %	6 %			624			635		2 %
Investment banking		222			261			242			276			364	64 %	32 %			650			1,143		76 %
Interest income		201			203			200			205			215	7 %	5 %			1,000			823		(18)%
Other (1)		57			56			44			55			74	30 %	35 %			104			229		120 %
Total revenues		2,121			2,260			2,409			2,511			2,730	29 %	9 %			8,168			9,910		21 %
Interest expense		(42)			(38)			(37)			(40)			(35)	(17)%	(13)%			(178)			(150)		(16)%
Net revenues		2,079			2,222			2,372			2,471			2,695	30 %	9 %			7,990			9,760		22 %
Non-interest expenses:
Compensation, commissions and benefits		1,415			1,500			1,648			1,661			1,774	25 %	7 %			5,465			6,583		20 %
Non-compensation expenses:
Communications and information processing		100			99			107			109			114	14 %	5 %			393			429		9 %
Occupancy and equipment		57			57			57			58			60	5 %	3 %			225			232		3 %
Business development		28			23			21			31			36	29 %	16 %			134			111		(17)%
Investment sub-advisory fees		26			28			31			34			37	42 %	9 %			101			130		29 %
Professional fees		23			30			24			26			32	39 %	23 %			91			112		23 %
Bank loan provision/(benefit) for credit losses (2)		45			14			(32)			(19)			5	(89)%		NM			233			(32)		NM
Losses on extinguishment of debt (3)		-			-			-			98			-		- %	(100)%			-			98		NM
Acquisition and disposition-related expenses (4)		7			2			-			7			10	43 %	43 %			7			19		171 %
Reduction in workforce expenses (5)		46			-			-			-			-	(100)%		- %			46			-	(100)%
Other (1)		76			70			69			81			67	(12)%	(17)%			243			287		18 %
Total non-compensation expenses		408			323			277			425			361	(12)%	(15)%			1,473			1,386		(6)%
Total non-interest expenses		1,823			1,823			1,925			2,086			2,135	17 %	2 %			6,938			7,969		15 %
Pre-tax income		256			399			447			385			560	119 %	45 %			1,052			1,791		70 %
Provision for income taxes		47			87			92			78			131	179 %	68 %			234			388		66 %
Net income	$	209		$	312		$	355		$	307		$	429	105 %	40 %		$	818		$	1,403		72 %
Earnings per common share - basic (6) (7)
$	1.02		$	1.52		$	1.72		$	1.49		$	2.08	104 %	40 %		$	3.96		$	6.81		72 %
Earnings per common share - diluted (6) (7)	$	1.00	$	1.48	$	1.68	$	1.45	$	2.02	102 %	39 %	$	3.88	$	6.63		71 %
Weighted-average common shares outstanding -		205.4			205.2			206.7			205.8			205.5		- %		- %			206.4			205.7		- %
basic (7)
Weighted-average common and common		209.4			209.6			211.8			211.7			211.7	1 %		- %			210.3			211.2		- %
equivalent shares outstanding - diluted (7)

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
$ in millions, except per share amounts		September 30,			December 31,			March 31,			June 30,		September 30,
	2020			2020			2021			2021			2021
Total assets	$	47,482	$	53,657	$	56,066	$	57,161	$	61,891
Total equity attributable to Raymond James Financial, Inc.	$	7,114	$	7,363	$	7,592	$	7,863	$	8,245
Book value per share (7) (8)	$	34.72	$	35.73	$	36.89	$	38.28	$	40.08
Tangible book value per share (7) (8) (9)	$	31.96	$	31.95	$	32.94	$	34.36	$	36.11

Capital ratios:
Tier 1 capital	24.2 %	23.4 %	23.6 %	24.4 %	25.0 %
Total capital	25.4 %	24.6 %	24.7 %	25.6 %	26.2 %
Tier 1 leverage	14.2 %	12.9 %	12.2 %	12.6 %	12.6 %

% change from

September 30,		June 30,
2020		2021
30 %	8 %
16 %	5 %
15 %	5 %
13 %	5 %

(10)

(10)

(10)

						Three months ended						% change from			Twelve months ended
$ in millions		September 30,		December 31,		March 31,		June 30,		September 30,		September 30,		June 30,		September 30,		September 30,	%
	2020			2020		2021			2021			2021		2020		2021			2020			2021	change
Adjusted pre-tax income (9)	$	309	$	401		NA	$	490	$	570	84 %	16 %	$	1,105	$	1,908	73 %
Adjusted net income (9)	$	249	$	314		NA	$	386	$	437	76 %	13 %	$	858	$	1,492	74 %
Adjusted earnings per common share - basic (6) (7) (9)	$	1.21	$	1.53		NA	$	1.88	$	2.12	75 %	13 %	$	4.15	$	7.24	74 %
Adjusted earnings per common share - diluted (6) (7) (9)	$	1.19	$	1.49		NA	$	1.82	$	2.06	73 %	13 %	$	4.08	$	7.05	73 %
Return on equity (11)		11.9 %			17.2 %	19.0 %			15.9 %			21.3 %							11.9 %			18.4 %
Adjusted return on equity (9) (11)		14.1 %			17.3 %		NA			19.9 %			21.7 %							12.5 %			19.5 %
Return on tangible common equity (9) (11)		12.9 %			19.0 %	21.2 %			17.7 %			23.7 %							13.0 %			20.4 %
Adjusted return on tangible common equity (9) (11)		15.3 %			19.1 %		NA			22.2 %			24.1 %							13.6 %			21.6 %
Pre-tax margin (12)		12.3 %			18.0 %	18.8 %			15.6 %			20.8 %							13.2 %			18.4 %
Adjusted pre-tax margin (9) (12)		14.9 %			18.0 %		NA			19.8 %			21.2 %							13.8 %			19.5 %
Total compensation ratio (13)		68.1 %			67.5 %	69.5 %			67.2 %			65.8 %							68.4 %			67.4 %
Effective tax rate		18.4 %			21.8 %	20.6 %			20.3 %			23.4 %							22.2 %			21.7 %

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
		September 30,			December 31,			March 31,			June 30,		September 30,			September 30,		June 30,
			2020			2020			2021			2021			2021		2020		2021
Client asset metrics ($ in billions):
Client assets under administration	$	930.1	$	1,024.8	$	1,085.4	$	1,165.0	$	1,178.7	27 %	1 %
Private Client Group assets under administration	$	883.3	$	974.2	$	1,028.1	$	1,102.9	$	1,115.4	26 %	1 %
Private Client Group assets in fee-based accounts	$	475.3	$	532.7	$	567.6	$	616.7	$	627.1	32 %	2 %
Financial assets under management	$	153.1	$	169.6	$	178.2	$	191.0	$	191.9	25 %		- %
Clients' domestic cash sweep balances ($ in millions):
Raymond James Bank Deposit Program ("RJBDP"): (14)
Raymond James Bank	$	25,599	$	26,697	$	28,174	$	29,253	$	31,410	23 %	7 %
Third-party banks		25,998			26,142			25,110			25,080			24,496	(6)%	(2)%
Subtotal RJBDP		51,597			52,839			53,284			54,333			55,906	8 %	3 %
Client Interest Program		3,999			8,769			9,517			8,610			10,762	169 %	25 %
Total clients' domestic cash sweep balances	$	55,596		$	61,608		$	62,801		$	62,943		$	66,668	20 %	6 %
						Three months ended							Twelve months ended
		September 30,			December 31,			March 31,			June 30,		September 30,			September 30,		September 30,
			2020			2020			2021			2021			2021			2020		2021
Average yield on RJBDP - third-party banks (15)		0.33 %			0.31 %			0.30 %			0.29 %			0.29 %		0.77 %	0.30 %
									As of									% change from
		September 30,			December 31,			March 31,			June 30,		September 30,			September 30,		June 30,
			2020			2020			2021			2021			2021	2020	2021
Private Client Group financial advisors:
Employees		3,404			3,387			3,375			3,423			3,461	2 %	1 %
Independent contractors		4,835			4,846			4,952			4,990			5,021	4 %	1 %
Total advisors		8,239			8,233			8,327			8,413			8,482	3 %	1 %

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

4

RAYMOND JAMES FINANCIAL, INC.

Segment Results - Private Client Group (Unaudited)

						Three months ended						% change from			Twelve months ended
$ in millions		September 30,		December 31,		March 31,			June 30,		September 30,		September 30,		June 30,		September 30,		September 30,	% change
	2020			2020			2021			2021			2021		2020		2021			2020			2021
Revenues:
Asset management and related	$	832	$	885	$	979	$	1,050	$	1,142	37 %	9 %	$	3,162	$	4,056			28 %
administrative fees
Brokerage revenues:
Mutual and other fund products		129			148			183			167			172	33 %	3 %			567			670			18 %
Insurance and annuity products		109			98			109			113			118	8 %	4 %			397			438			10 %
Equities, ETFs, and fixed income		95			107			121			110			100	5 %	(9)%			419			438			5 %
products
Total brokerage revenues		333			353			413			390			390	17 %		- %			1,383			1,546			12 %
Account and service fees:
Mutual fund and annuity service		88			94			99			105			110	25 %	5 %			348			408			17 %
fees
RJBDP fees: (14)
Third-party banks		21			21			19			18			18	(14)%		- %			150			76			(49)%
Raymond James Bank		42			43			44			47			49	17 %	4 %			180			183			2 %
Client account and other fees		33			32			42			39			44	33 %	13 %			129			157			22 %
Total account and service fees		184			190			204			209			221	20 %	6 %			807			824			2 %
Investment banking		12			6			16			11			14	17 %	27 %			41			47			15 %
Interest income		30			30			30			31			32	7 %	3 %			155			123			(21)%
All other		7			5			8			7			5	(29)%	(29)%			27			25			(7)%
Total revenues		1,398			1,469			1,650			1,698			1,804	29 %	6 %			5,575			6,621			19 %
Interest expense		(4)			(2)			(3)			(2)			(3)	(25)%	50 %			(23)			(10)			(57)%
Net revenues		1,394			1,467			1,647			1,696			1,801	29 %	6 %			5,552			6,611			19 %
Non-interest expenses:
Financial advisor compensation and		873			931			1,040			1,082			1,151	32 %	6 %			3,428			4,204			23 %
benefits
Administrative compensation and		244			249			260			251			255	5 %	2 %			971			1,015			5 %
benefits
Total compensation, commissions		1,117			1,180			1,300			1,333			1,406	26 %	5 %			4,399			5,219			19 %
and benefits
Non-compensation expenses		152			147			155			168			173	14 %	3 %			614			643			5 %
Total non-interest expenses		1,269			1,327			1,455			1,501			1,579	24 %	5 %			5,013			5,862			17 %
Pre-tax income	$	125	$	140	$	192	$	195	$	222	78 %	14 %	$	539	$	749			39 %

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

5