Raymond James Financial : Q3 2022 Earnings Supplement

Quarterly Financial Supplement

Third quarter of fiscal 2022 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			Nine months ended
in millions, except per share amounts			June 30,		September 30,		December 31,			March 31,			June 30,		June 30,		March 31,			June 30,			June 30,	%
	2021			2021			2021			2022			2022		2021		2022			2021			2022		change
Revenues:
Asset management and related administrative fees	$	1,262	$	1,366	$	1,382	$	1,464	$	1,427	13 %	(3)%	$	3,502	$	4,273		22 %
Brokerage revenues:
Securities commissions		415			412			425			422			385	(7)%	(9)%			1,239			1,232		(1)%
Principal transactions		137			129			133			142			128	(7)%	(10)%			432			403		(7)%
Total brokerage revenues		552			541			558			564			513	(7)%	(9)%			1,671			1,635		(2)%
Account and service fees		161			170			177			179			211	31 %	18 %			465			567		22 %
Investment banking		276			364			425			235			223	(19)%	(5)%			779			883		13 %
Interest income		205			215			225			242			374	82 %	55 %			608			841		38 %
Other (1)		55			74			51			27			30	(45)%	11 %			155			108		(30)%
Total revenues		2,511			2,730			2,818			2,711			2,778	11 %	2 %			7,180			8,307		16 %
Interest expense		(40)			(35)			(37)			(38)			(60)	50 %	58 %			(115)			(135)		17 %
Net revenues		2,471			2,695			2,781			2,673			2,718	10 %	2 %			7,065			8,172		16 %
Non-interest expenses:
Compensation, commissions and benefits (2) (3)		1,661			1,775			1,884			1,852			1,834	10 %	(1)%			4,809			5,570		16 %
Non-compensation expenses:
Communications and information processing		109			114			112			127			129	18 %	2 %			315			368		17 %
Occupancy and equipment		58			60			59			62			65	12 %	5 %			172			186		8 %
Business development		31			36			35			34			58	87 %	71 %			75			127		69 %
Investment sub-advisory fees		34			37			38			40			38	12 %	(5)%			93			116		25 %
Professional fees (2)		30			37			28			27			38	27 %	41 %			85			93		9 %
Bank loan provision/(benefit) for credit losses (4)		(19)			5			(11)			21			56		NM	167 %			(37)			66		NM
Losses on extinguishment of debt (5)		98			-			-			-			-	(100)%		- %			98			-	(100)%
Other (1) (2)		84			71			78			77			85	1 %	10 %			224			240		7 %
Total non-compensation expenses		425			360			339			388			469	10 %	21 %			1,025			1,196		17 %
Total non-interest expenses		2,086			2,135			2,223			2,240			2,303	10 %	3 %			5,834			6,766		16 %
Pre-tax income		385			560			558			433			415	8 %	(4)%			1,231			1,406		14 %
Provision for income taxes		78			131			112			110			114	46 %	4 %			257			336		31 %
Net income		307			429			446			323			301	(2)%	(7)%			974			1,070		10 %
Preferred stock dividends		-			-			-			-			2		NM		NM			-			2		NM
Net income available to common shareholders	$	307		$	429		$	446		$	323		$	299	(3)%	(7)%		$	974		$	1,068		10 %
Earnings per common share - basic (6) (7)
$	1.49		$	2.08		$	2.16		$	1.56		$	1.41	(5)%	(10)%		$	4.73		$	5.12		8 %
Earnings per common share - diluted (6) (7)	$	1.45	$	2.02	$	2.10	$	1.52	$	1.38	(5)%	(9)%	$	4.61	$	4.99		8 %
Weighted-average common shares outstanding -		205.8			205.5			206.3			207.7			210.7	2 %	1 %			205.8			208.1		1 %
basic (6)
Weighted-average common and common		211.7			211.7			212.4			213.0			215.7	2 %	1 %			210.9			213.5		1 %
equivalent shares outstanding - diluted (6)

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

3

RAYMOND JAMES FINANCIAL, INC.

Consolidated Selected Key Metrics (Unaudited)

																			As of																% change from
	$ in millions, except per share amounts							June 30,			September 30,		December 31,			March 31,				June 30,					June 30,	March 31,
							2021					2021		2021				2022				2022					2021				2022
	Total assets			$	57,161	$	61,891	$	68,461	$	73,101	$	86,111								51 %			18 %
	Total common equity attributable to Raymond James	$	7,863	$	8,245	$	8,600	$	8,602	$	9,395								19 %			9 %
	Financial, Inc.
	Book value per share (6) (8)			$	38.28	$	40.08	$	41.45	$	41.38	$	43.60								14 %			5 %
	Tangible book value per share (6) (8) (9)			$	34.36	$	36.11	$	37.55	$	36.46	$	35.79								4 %			(2)%
	Capital ratios:
	Tier 1 leverage							12.6 %				12.6 %			12.1 %			11.1 %				10.8 % (10)
	Tier 1 capital							24.4 %				25.0 %			25.9 %			23.9 %				20.1 % (10)
	Common equity tier 1							24.4 %				25.0 %			25.9 %			23.9 %				20.1 % (10)
	Total capital							25.6 %				26.2 %			27.0 %			25.0 %				21.4 % (10)
									Three months ended									% change from					Nine months ended
	$ in millions			June 30,		September 30,	December 31,		March 31,		June 30,		June 30,				March 31,				June 30,			June 30,	%
		2021					2021				2021			2022		2022		2021				2022				2021			2022			change
	Adjusted pre-tax income (9)	$	507	$			587			$	579		$	464	$	480	(5)%		3 %	$	1,384	$	1,523	10 %
	Adjusted net income available to	$	399	$			450			$	462		$	346	$	348	(13)%		1 %	$	1,090	$	1,156	6 %
	common shareholders (9)
	Adjusted earnings per common share -	$	1.94	$			2.18			$	2.23		$	1.67	$	1.65	(15)%		(1)%	$	5.29	$	5.55	5 %
	basic (6) (7) (9)
	Adjusted earnings per common share -	$	1.88	$			2.12			$	2.17		$	1.62	$	1.61	(14)%		(1)%	$	5.16	$	5.41	5 %
	diluted (6) (7) (9)
	Return on common equity (11)		15.9 %					21.3 %				21.2 %			15.0 %			13.3 %										17.4 %			16.3 %
	Adjusted return on common equity (9) (11)		20.5 %					22.3 %				21.9 %			16.1 %			15.4 %										19.3 %			17.6 %
	Adjusted return on tangible common		22.9 %					24.8 %				24.3 %			18.0 %			18.1 %										21.4 %			20.1 %
	equity (9) (11)
	Pre-tax margin (12)		15.6 %					20.8 %				20.1 %			16.2 %			15.3 %										17.4 %			17.2 %
	Adjusted pre-tax margin (9) (12)		20.5 %					21.8 %				20.8 %			17.4 %			17.7 %										19.6 %			18.6 %
	Total compensation ratio (13)		67.2 %					65.9 %				67.7 %			69.3 %			67.5 %										68.1 %			68.2 %
	Adjusted total compensation ratio (9) (13)		66.7 %					65.3 %				67.3 %			68.8 %			66.8 %										67.6 %			67.6 %
	Effective tax rate		20.3 %					23.4 %				20.1 %			25.4 %			27.5 %										20.9 %			23.9 %

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

4

RAYMOND JAMES FINANCIAL, INC.

Consolidated Selected Key Metrics (Unaudited)

									As of									% change from
			June 30,		September 30,			December 31,			March 31,			June 30,			June 30,		March 31,
			2021			2021			2021			2022			2022		2021		2022
Client asset metrics ($ in billions):
Client assets under administration	$	1,165.0	$	1,178.7	$	1,257.8	$	1,256.1	$	1,125.3	(3)%	(10)%
Private Client Group assets under administration	$	1,102.9	$	1,115.4	$	1,199.8	$	1,198.3	$	1,068.8	(3)%	(11)%
Private Client Group assets in fee-based accounts	$	616.7	$	627.1	$	677.8	$	678.0	$	606.7	(2)%	(11)%
Financial assets under management (14)	$	191.0	$	191.9	$	203.2	$	193.7	$	182.4	(5)%	(6)%
Clients' domestic cash sweep balances ($ in millions):
Raymond James Bank Deposit Program ("RJBDP"): (15)
Bank segment (15) (16)	$	29,253	$	31,410	$	33,097	$	33,570	$	36,646	25 %	9 %
Third-party banks		25,080			24,496			24,316			25,887			25,478	2 %	(2)%
Subtotal RJBDP		54,333			55,906			57,413			59,457			62,124	14 %	4 %
Client Interest Program		8,610			10,762			16,065			17,013			13,717	59 %	(19)%
Total clients' domestic cash sweep balances	$	62,943		$	66,668		$	73,478		$	76,470		$	75,841	20 %	(1)%
						Three months ended							Nine months ended
			June 30,		September 30,			December 31,			March 31,			June 30,			June 30,		June 30,
			2021			2021			2021			2022			2022			2021		2022
Average yield on RJBDP - third-party banks (17)		0.29 %			0.29 %			0.28 %			0.32 %			0.88 %		0.30 %	0.50 %
									As of									% change from
			June 30,		September 30,			December 31,			March 31,			June 30,			June 30,		March 31,
			2021			2021			2021			2022			2022	2021	2022
Private Client Group financial advisors:
Employees		3,423			3,461			3,447			3,601			3,615	6 %		- %
Independent contractors (18)		4,990			5,021			5,017			5,129			5,001			- %	(2)%
Total advisors (18)		8,413			8,482			8,464			8,730			8,616	2 %	(1)%

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

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