Raymond James Financial : Q1 2022 Earnings Supplement

EARNINGS RELEASE FINANCIAL SUPPLEMENT

FIRST QUARTER

OF FISCAL 2022 RESULTS

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,
	2020			2021			2021			2021			2021		2020		2021
Revenues:
Asset management and related administrative fees	$	1,067	$	1,173	$	1,262	$	1,366	$	1,382	30 %	1 %
Brokerage revenues:
Securities commissions		381			443			415			412			425	12 %	3 %
Principal transactions		147			148			137			129			133	(10)%	3 %
Total brokerage revenues		528			591			552			541			558	6 %	3 %
Account and service fees		145			159			161			170			177	22 %	4 %
Investment banking		261			242			276			364			425	63 %	17 %
Interest income		203			200			205			215			225	11 %	5 %
Other (1)		56			44			55			74			51	(9)%	(31)%
Total revenues		2,260			2,409			2,511			2,730			2,818	25 %	3 %
Interest expense		(38)			(37)			(40)			(35)			(37)	(3)%	6 %
Net revenues		2,222			2,372			2,471			2,695			2,781	25 %	3 %
Non-interest expenses:
Compensation, commissions and benefits		1,500			1,648			1,661			1,774			1,884	26 %	6 %
Non-compensation expenses:
Communications and information processing		99			107			109			114			112	13 %	(2)%
Occupancy and equipment		57			57			58			60			59	4 %	(2)%
Business development		23			21			31			36			35	52 %	(3)%
Investment sub-advisory fees		28			31			34			37			38	36 %	3 %
Professional fees		30			24			26			32			26	(13)%	(19)%
Bank loan provision/(benefit) for credit losses		14			(32)			(19)			5			(11)		NM		NM
Losses on extinguishment of debt (2)		-			-			98			-			-		- %		- %
Acquisition-related expenses (3)		2			-			7			10			6	200 %	(40)%
Other (1)		70			69			81			67			74	6 %	10 %
Total non-compensation expenses		323			277			425			361			339	5 %	(6)%
Total non-interest expenses		1,823			1,925			2,086			2,135			2,223	22 %	4 %
Pre-tax income		399			447			385			560			558	40 %		- %
Provision for income taxes		87			92			78			131			112	29 %	(15)%
Net income	$	312		$	355		$	307		$	429		$	446	43 %	4 %
Earnings per common share - basic (4) (5)
$	1.52		$	1.72		$	1.49		$	2.08		$	2.16	42 %	4 %
Earnings per common share - diluted (4) (5)	$	1.48	$	1.68	$	1.45	$	2.02	$	2.10	42 %	4 %
Weighted-average common shares outstanding - basic (5)		205.2			206.7			205.8			205.5			206.3	1 %		- %
Weighted-average common and common equivalent shares		209.6			211.8			211.7			211.7			212.4	1 %		- %
outstanding - diluted (5)

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			December 31,			March 31,			June 30,		September 30,		December 31,
	2020			2021			2021			2021			2021
Total assets	$	53,657	$	56,066	$	57,161	$	61,891	$	68,461
Total equity attributable to Raymond James Financial, Inc.	$	7,363	$	7,592	$	7,863	$	8,245	$	8,600
Book value per share (5) (6)	$	35.73	$	36.89	$	38.28	$	40.08	$	41.45
Tangible book value per share (5) (6) (7)	$	31.95	$	32.94	$	34.36	$	36.11	$	37.55

Capital ratios:
Tier 1 capital	23.4 %	23.6 %	24.4 %	25.0 %	25.8 %
Total capital	24.6 %	24.7 %	25.6 %	26.2 %	26.9 %
Tier 1 leverage	12.9 %	12.2 %	12.6 %	12.6 %	12.1 %

% change from

December 31,		September 30,
2020		2021
28 %	11 %
17 %	4 %
16 %	3 %
18 %	4 %

(8)

(8)

(8)

					Three months ended						% change from
$ in millions			December 31,		March 31,			June 30,		September 30,		December 31,		December 31,		September 30,
	2020		2021			2021			2021			2021		2020		2021
Adjusted pre-tax income (7)	$	401		NA	$	490	$	570	$	564	41 %	(1)%
Adjusted net income (7)	$	314		NA	$	386	$	437	$	451	44 %	3 %
Adjusted earnings per common share - basic (4) (5) (7)	$	1.53		NA	$	1.88	$	2.12	$	2.18	42 %	3 %
Adjusted earnings per common share - diluted (4) (5) (7)	$	1.49		NA	$	1.82	$	2.06	$	2.12	42 %	3 %
Return on equity (9)		17.2 %	19.0 %			15.9 %			21.3 %			21.2 %
Adjusted return on equity (7) (9)		17.3 %		NA			19.9 %			21.7 %			21.4 %
Return on tangible common equity (7) (9)		19.0 %	21.2 %			17.7 %			23.7 %			23.4 %
Adjusted return on tangible common equity (7) (9)		19.1 %		NA			22.2 %			24.1 %			23.7 %
Pre-tax margin (10)		18.0 %	18.8 %			15.6 %			20.8 %			20.1 %
Adjusted pre-tax margin (7) (10)		18.0 %		NA			19.8 %			21.2 %			20.3 %
Total compensation ratio (11)		67.5 %	69.5 %			67.2 %			65.8 %			67.7 %
Effective tax rate		21.8 %	20.6 %			20.3 %			23.4 %			20.1 %

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,
			2020			2021			2021			2021			2021		2020		2021
Client asset metrics ($ in billions):
Client assets under administration	$	1,024.8	$	1,085.4	$	1,165.0	$	1,178.7	$	1,257.8	23 %	7 %
Private Client Group assets under administration	$	974.2	$	1,028.1	$	1,102.9	$	1,115.4	$	1,199.8	23 %	8 %
Private Client Group assets in fee-based accounts	$	532.7	$	567.6	$	616.7	$	627.1	$	677.8	27 %	8 %
Financial assets under management	$	169.6	$	178.2	$	191.0	$	191.9	$	203.2	20 %	6 %
Clients' domestic cash sweep balances ($ in millions):
Raymond James Bank Deposit Program ("RJBDP"): (12)
Raymond James Bank	$	26,697	$	28,174	$	29,253	$	31,410	$	33,097	24 %	5 %
Third-party banks		26,142			25,110			25,080			24,496			24,316	(7)%	(1)%
Subtotal RJBDP		52,839			53,284			54,333			55,906			57,413	9 %	3 %
Client Interest Program		8,769			9,517			8,610			10,762			16,065	83 %	49 %
Total clients' domestic cash sweep balances	$	61,608		$	62,801		$	62,943		$	66,668		$	73,478	19 %	10 %
						Three months ended
			December 31,			March 31,			June 30,		September 30,		December 31,
			2020			2021			2021			2021			2021
Average yield on RJBDP - third-party banks (13)		0.31 %			0.30 %			0.29 %			0.29 %			0.28 %
									As of								% change from
			December 31,			March 31,			June 30,		September 30,		December 31,		December 31,		September 30,
			2020			2021			2021			2021			2021	2020	2021
Private Client Group financial advisors:
Employees		3,387			3,375			3,423			3,461			3,447	2 %		- %
Independent contractors		4,846			4,952			4,990			5,021			5,017	4 %		- %
Total advisors		8,233			8,327			8,413			8,482			8,464	3 %		- %

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

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RAYMOND JAMES FINANCIAL, INC.

Segment Results - Private Client Group (Unaudited)

						Three months ended						% change from
$ in millions			December 31,			March 31,			June 30,		September 30,		December 31,		December 31,		September 30,
	2020			2021			2021			2021			2021		2020		2021
Revenues:
Asset management and related administrative fees	$	885	$	979	$	1,050	$	1,142	$	1,162	31 %	2 %
Brokerage revenues:
Mutual and other fund products		148			183			167			172			171	16 %	(1)%
Insurance and annuity products		98			109			113			118			111	13 %	(6)%
Equities, ETFs, and fixed income products		107			121			110			100			115	7 %	15 %
Total brokerage revenues		353			413			390			390			397	12 %	2 %
Account and service fees:
Mutual fund and annuity service fees		94			99			105			110			114	21 %	4 %
RJBDP fees: (12)
Third-party banks		21			19			18			18			17	(19)%	(6)%
Raymond James Bank		43			44			47			49			50	16 %	2 %
Client account and other fees		32			42			39			44			49	53 %	11 %
Total account and service fees		190			204			209			221			230	21 %	4 %
Investment banking		6			16			11			14			13	117 %	(7)%
Interest income		30			30			31			32			33	10 %	3 %
All other		5			8			7			5			7	40 %	40 %
Total revenues		1,469			1,650			1,698			1,804			1,842	25 %	2 %
Interest expense		(2)			(3)			(2)			(3)			(3)	50 %		- %
Net revenues		1,467			1,647			1,696			1,801			1,839	25 %	2 %
Non-interest expenses:
Financial advisor compensation and benefits		931			1,040			1,082			1,151			1,187	27 %	3 %
Administrative compensation and benefits		249			260			251			255			283	14 %	11 %
Total compensation, commissions and benefits		1,180			1,300			1,333			1,406			1,470	25 %	5 %
Non-compensation expenses		147			155			168			173			174	18 %	1 %
Total non-interest expenses		1,327			1,455			1,501			1,579			1,644	24 %	4 %
Pre-tax income	$	140	$	192	$	195	$	222	$	195	39 %	(12)%

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

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