EX-99.12rjf20240930q424earnings.htmEX-99.1 PRESS RELEASE DATED OCTOBER 23, 2024 Document
October 23, 2024
FOR IMMEDIATE RELEASE
Media Contact: Steve Hollister, 727.567.2824
Investor Contact: Kristina Waugh, 727.567.7654
raymondjames.com/news-and-media/press-releases
RAYMOND JAMES FINANCIAL REPORTS FISCAL FOURTH QUARTER AND
FISCAL 2024 RESULTS
•Record annual net revenues of $12.82 billion and record net income available to common shareholders of $2.06 billion for fiscal 2024, up 10% and 19%, respectively, over fiscal 2023
•Return on common equity of 18.9% and adjusted return on tangible common equity of 23.3%(1) for fiscal 2024
•Record quarterly net revenues of $3.46 billion, up 13% over the prior year’s fiscal fourth quarter and 7% over the preceding quarter
•Record quarterly net income available to common shareholders of $601 million, or $2.86 per diluted share; record quarterly adjusted net income available to common shareholders of $621 million(1), or $2.95 per diluted share(1)
•Record client assets under administration of $1.57 trillion and record Private Client Group assets in fee-based accounts of $875.2 billion, up 25% and 28%, respectively, over September 2023
•Domestic Private Client Group net new assets(2) of $13.0 billion for the fiscal fourth quarter and $60.7 billion for fiscal 2024, annualized growth from beginning of period assets of 4.0% and 5.5%, respectively
•Total clients’ domestic cash sweep and Enhanced Savings Program (“ESP”) balances of $57.9 billion, up 3% compared to both September 2023 and June 2024
•Returned approximately $1.3 billion of capital to shareholders through the combination of share repurchases and dividends in fiscal 2024
ST. PETERSBURG, Fla – Raymond James Financial, Inc. (NYSE: RJF) today reported record net revenues of $3.46 billion and net income available to common shareholders of $601 million, or $2.86 per diluted share, for the fiscal fourth quarter ended September 30, 2024. Excluding $25 million of expenses related to acquisitions, quarterly adjusted net income available to common shareholders was $621 million(1), or $2.95 per diluted share(1).
Record quarterly net revenues increased 13% over the prior year’s fiscal fourth quarter and 7% over the preceding quarter, primarily driven by higher asset management and related administrative fees and investment banking revenues. Record quarterly net income available to common shareholders increased 39% over the prior year’s fiscal fourth quarter largely due to higher net revenues and lower provisions for legal and regulatory matters.
For the fiscal year, record net revenues of $12.82 billion increased 10%, record earnings per diluted share of $9.70 increased 22%, and record adjusted earnings per diluted share of $10.05(1) increased 21% over fiscal 2023. The Private Client Group and Asset Management segments generated record net revenues and pre-tax income for the fiscal year. Return on common equity was 18.9% and adjusted return on tangible common equity was 23.3%(1) for fiscal 2024.
Please refer to the footnotes at the end of this press release for additional information.
1
“We generated record net revenues and record net income for the fourth quarter and fiscal year 2024,” said Chair and CEO Paul Reilly. “Our record performance highlights the strength of our diverse and complementary businesses. We are well positioned entering fiscal 2025 with record client asset levels, healthy pipelines for growth across the business and ample funding to support balance sheet growth. We are focused on maintaining strong capital ratios and a flexible balance sheet to support our results in any market environment.”
Segment Results
Private Client Group
•Record quarterly net revenues of $2.48 billion, up 9% over the prior year’s fiscal fourth quarter and 2% over the preceding quarter
•Quarterly pre-tax income of $461 million, down 3% compared to the prior year’s fiscal fourth quarter and up 5% over the preceding quarter
•Record annual net revenues of $9.46 billion and record annual pre-tax income of $1.79 billion, up 9% and 1%, respectively, over fiscal 2023
•Record Private Client Group assets under administration of $1.51 trillion, up 25% over September 2023 and 6% over June 2024
•Record Private Client Group assets in fee-based accounts of $875.2 billion, up 28% over September 2023 and 7% over June 2024
•Domestic Private Client Group net new assets(2) of $13.0 billion for the fiscal fourth quarter, or annualized growth from beginning of period assets of 4.0%; Domestic Private Client Group net new assets(2) of $60.7 billion for fiscal 2024, or growth from beginning of year assets of 5.5%
•Total clients’ domestic cash sweep and ESP balances of $57.9 billion, up 3% over both the prior year’s fiscal fourth quarter and the preceding quarter
Record quarterly net revenues grew 9% year-over-year and 2% sequentially primarily driven by higher asset management and related administrative fees and brokerage revenues, reflecting growth of client assets during the year.
“The Private Client Group achieved record results in fiscal 2024 as client assets exceeded $1.5 trillion driven by strong equity markets and net new asset growth,” said Reilly. “In the fiscal year, we generated domestic net new assets of $60.7 billion(2), a growth rate of 5.5%, as we remain focused on retaining, supporting and attracting high-quality financial advisors across our multiple affiliation options.”
Capital Markets
•Quarterly net revenues of $483 million, up 42% over the prior year’s fiscal fourth quarter and 46% over the preceding quarter
•Quarterly pre-tax income of $95 million
•Quarterly investment banking revenues of $306 million, up 58% over the prior year’s fiscal fourth quarter and 77% over the preceding quarter
•Annual net revenues of $1.47 billion, up 21% over fiscal 2023; Annual pre-tax income of $67 million
Quarterly net revenues grew 42% year-over-year and 46% sequentially primarily the result of higher investment banking revenues. M&A and advisory revenues of $205 million grew 45% over the prior year’s fiscal fourth quarter.
“Investment banking results increased significantly driven by robust M&A and advisory revenues as the market environment became more constructive in support of transaction closings in the quarter,” said Reilly. “Our M&A pipeline remains healthy, and we are optimistic investments in our platform and people should drive growth in fiscal 2025.”
Please refer to the footnotes at the end of this press release for additional information.
2
Asset Management
•Record quarterly net revenues of $275 million, up 17% over the prior year’s fiscal fourth quarter and 4% over the preceding quarter
•Record quarterly pre-tax income of $116 million, up 16% over the prior year’s fiscal fourth quarter and 4% over the preceding quarter
•Record annual net revenues of $1.03 billion and record annual pre-tax income of $421 million, up 16% and 20%, respectively, over fiscal 2023
•Record financial assets under management of $244.8 billion, up 25% over September 2023 and 7% over June 2024
Record quarterly net revenues grew 17% year-over-year and 4% sequentially largely attributable to higher financial assets under management due to higher equity markets and net inflows into fee-based accounts in the Private Client Group.
Bank
•Quarterly net revenues of $433 million, down 4% compared to the prior year’s fiscal fourth quarter and up 4% over the preceding quarter
•Quarterly pre-tax income of $98 million, up 26% over the prior year’s fiscal fourth quarter and down 15% compared to the preceding quarter
•Annual net revenues of $1.72 billion and annual pre-tax income of $380 million, down 15% and up 2% compared to fiscal 2023, respectively
•Bank segment net interest margin (“NIM”) of 2.62% for the quarter, down 25 basis points compared to the prior year’s fiscal fourth quarter and 2 basis points compared to the preceding quarter
•Record net loans of $46.0 billion, up 5% over September 2023 and 2% over June 2024
Quarterly pre-tax income increased 26% year-over-year predominantly driven by lower expenses which more than offset a decline in net revenues, which was mostly due to lower NIM. Sequentially, pre-tax income declined 15% as a higher bank loan provision for credit losses more than offset growth in net revenues, which included higher net interest income driven largely by loan growth in both securities-based loans and residential mortgage loans.
The credit quality of the loan portfolio remained solid. Criticized loans as a percent of total loans held for investment ended the quarter at 1.47%, up from 1.15% in the preceding quarter. Bank loan allowance for credit losses as a percent of total loans held for investment was 0.99%, and bank loan allowance for credit losses on corporate loans as a percent of corporate loans held for investment was 1.99%, each relatively flat with the preceding quarter.
Other
The effective tax rate was 20.8% for the quarter, primarily reflecting the favorable impact of non-taxable valuation gains associated with the corporate-owned life insurance portfolio. During the fiscal fourth quarter, the firm repurchased 2.6 million shares of common stock for $300 million at an average price of $115 per share. In total, the firm repurchased 7.7 million shares of common stock for $900 million at an average price of $117 per share in fiscal 2024, leaving approximately $645 million available under the Board of Directors’ approved common stock repurchase authorization. At the end of the quarter, the total capital ratio was 24.1%(3) and the tier 1 leverage ratio was 12.8%(3), both well above regulatory requirements.
A conference call to discuss the results will take place today, Wednesday, October 23, at 5:00 p.m. ET. The live audio webcast, and the presentation which management will review on the call, will be available at www.raymondjames.com/investor-relations/financial-information/quarterly-earnings. An audio replay of the call will be available at the same location until January 22, 2025. For a listen-only connection to the conference call, please dial: 800-715-9871 (conference code: 3778589).
Please refer to the footnotes at the end of this press release for additional information.
3
About Raymond James Financial, Inc.
Raymond James Financial, Inc. (NYSE: RJF) is a leading diversified financial services company providing private client group, capital markets, asset management, banking and other services to individuals, corporations and municipalities. The company has approximately 8,800 financial advisors. Total client assets are $1.57 trillion. Public since 1983, the firm is listed on the New York Stock Exchange under the symbol RJF. Additional information is available at www.raymondjames.com.
Forward-Looking Statements
Certain statements made in this press release may constitute “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information concerning future strategic objectives, business prospects, anticipated savings, financial results (including expenses, earnings, liquidity, cash flow and capital expenditures), industry or market conditions (including changes in interest rates and inflation), demand for and pricing of our products (including cash sweep and deposit offerings), anticipated timing and benefits of our acquisitions, and our level of success integrating acquired businesses, anticipated results of litigation, regulatory developments, and general economic conditions. In addition, future or conditional verbs such as “will,” “may,” “could,” “should,” and “would,” as well as any other statement that necessarily depends on future events, are intended to identify forward-looking statements.
Forward-looking statements are not guarantees, and they involve risks, uncertainties and assumptions. Although we make such statements based on assumptions that we believe to be reasonable, there can be no assurance that actual results will not differ materially from those expressed in the forward-looking statements. We caution investors not to rely unduly on any forward-looking statements and urge you to carefully consider the risks described in our filings with the Securities and Exchange Commission (the “SEC”) from time to time, including our most recent Annual Report on Form 10-K, and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, which are available at www.raymondjames.com and the SEC’s website at www.sec.gov. We expressly disclaim any obligation to update any forward-looking statement in the event it later turns out to be inaccurate, whether as a result of new information, future events, or otherwise.
Please refer to the footnotes at the end of this press release for additional information.
4
RAYMOND JAMES FINANCIAL, INC.
Fiscal Fourth Quarter of 2024
Selected Financial Highlights
(Unaudited)
Summary results of operations
Three months ended
% change from
$ in millions, except per share amounts
September 30,
2024
September 30,
2023
June 30,
2024
September 30,
2023
June 30,
2024
Net revenues
$
3,462
$
3,053
$
3,228
13%
7%
Pre-tax income
$
760
$
585
$
644
30%
18%
Net income available to common shareholders
$
601
$
432
$
491
39%
22%
Earnings per common share: (4)
Basic
$
2.93
$
2.07
$
2.37
42%
24%
Diluted
$
2.86
$
2.02
$
2.31
42%
24%
Non-GAAP measures: (1)
Adjusted pre-tax income
$
785
$
619
$
667
27%
18%
Adjusted net income available to common shareholders
$
621
$
457
$
508
36%
22%
Adjusted earnings per common share – basic (4)
$
3.03
$
2.19
$
2.45
38%
24%
Adjusted earnings per common share – diluted (4)
$
2.95
$
2.13
$
2.39
38%
23%
Twelve months ended
$ in millions, except per share amounts
September 30,
2024
September 30,
2023
% change
Net revenues
$
12,821
$
11,619
10%
Pre-tax income
$
2,643
$
2,280
16%
Net income available to common shareholders
$
2,063
$
1,733
19%
Earnings per common share: (4)
Basic
$
9.94
$
8.16
22%
Diluted
$
9.70
$
7.97
22%
Non-GAAP measures: (1)
Adjusted pre-tax income
$
2,740
$
2,378
15%
Adjusted net income available to common shareholders
$
2,137
$
1,806
18%
Adjusted earnings per common share – basic (4)
$
10.30
$
8.50
21%
Adjusted earnings per common share – diluted (4)
$
10.05
$
8.30
21%
Other selected financial highlights
Three months ended
Twelve months ended
September 30,
2024
September 30,
2023
June 30,
2024
September 30,
2024
September 30,
2023
Return on common equity (5)
21.2
%
17.3
%
17.8
%
18.9
%
17.7
%
Adjusted return on common equity (1) (5)
21.9
%
18.3
%
18.4
%
19.6
%
18.4
%
Adjusted return on tangible common equity (1) (5)
25.8
%
22.2
%
21.9
%
23.3
%
22.5
%
Pre-tax margin (6)
22.0
%
19.2
%
20.0
%
20.6
%
19.6
%
Adjusted pre-tax margin (1) (6)
22.7
%
20.3
%
20.7
%
21.4
%
20.5
%
Total compensation ratio (7)
62.4
%
62.0
%
64.7
%
64.1
%
62.8
%
Adjusted total compensation ratio (1) (7)
62.1
%
61.4
%
64.4
%
63.7
%
62.1
%
Effective tax rate
20.8
%
25.8
%
23.6
%
21.8
%
23.7
%
Please refer to the footnotes at the end of this press release for additional information.
5
RAYMOND JAMES FINANCIAL, INC.
Fiscal Fourth Quarter of 2024
Consolidated Statements of Income
(Unaudited)
Three months ended
% change from
in millions, except per share amounts
September 30,
2024
September 30,
2023
June 30,
2024
September 30,
2023
June 30,
2024
Revenues:
Asset management and related administrative fees
$
1,662
$
1,446
$
1,611
15%
3%
Brokerage revenues:
Securities commissions
438
382
416
15%
5%
Principal transactions
123
98
116
26%
6%
Total brokerage revenues
561
480
532
17%
5%
Account and service fees
332
314
328
6%
1%
Investment banking
315
202
183
56%
72%
Interest income
1,073
1,019
1,057
5%
2%
Other
60
54
51
11%
18%
Total revenues
4,003
3,515
3,762
14%
6%
Interest expense
(541)
(462)
(534)
17%
1%
Net revenues
3,462
3,053
3,228
13%
7%
Non-interest expenses:
Compensation, commissions and benefits
2,159
1,892
2,090
14%
3%
Non-compensation expenses:
Communications and information processing
181
158
166
15%
9%
Occupancy and equipment
76
69
75
10%
1%
Business development
64
66
72
(3)%
(11)%
Investment sub-advisory fees
50
41
48
22%
4%
Professional fees
47
40
38
18%
24%
Bank loan provision/(benefit) for credit losses
22
36
(10)
(39)%
NM
Other (8)
103
166
105
(38)%
(2)%
Total non-compensation expenses
543
576
494
(6)%
10%
Total non-interest expenses
2,702
2,468
2,584
9%
5%
Pre-tax income
760
585
644
30%
18%
Provision for income taxes
158
151
152
5%
4%
Net income
602
434
492
39%
22%
Preferred stock dividends
1
2
1
(50)%
—%
Net income available to common shareholders
$
601
$
432
$
491
39%
22%
Earnings per common share – basic (4)
$
2.93
$
2.07
$
2.37
42%
24%
Earnings per common share – diluted (4)
$
2.86
$
2.02
$
2.31
42%
24%
Weighted-average common shares outstanding – basic
204.7
208.3
206.8
(2)%
(1)%
Weighted-average common and common equivalent shares outstanding – diluted
210.1
213.8
212.3
(2)%
(1)%
Please refer to the footnotes at the end of this press release for additional information.
6
RAYMOND JAMES FINANCIAL, INC.
Fiscal Fourth Quarter of 2024
Consolidated Statements of Income
(Unaudited)
Twelve months ended
in millions, except per share amounts
September 30,
2024
September 30,
2023
% change
Revenues:
Asset management and related administrative fees
$
6,196
$
5,363
16%
Brokerage revenues:
Securities commissions
1,651
1,459
13%
Principal transactions
492
462
6%
Total brokerage revenues
2,143
1,921
12%
Account and service fees
1,314
1,125
17%
Investment banking
858
648
32%
Interest income
4,232
3,748
13%
Other
180
187
(4)%
Total revenues
14,923
12,992
15%
Interest expense
(2,102)
(1,373)
53%
Net revenues
12,821
11,619
10%
Non-interest expenses:
Compensation, commissions and benefits
8,213
7,299
13%
Non-compensation expenses:
Communications and information processing
662
599
11%
Occupancy and equipment
296
271
9%
Business development
257
242
6%
Investment sub-advisory fees
182
151
21%
Professional fees
150
145
3%
Bank loan provision for credit losses
45
132
(66)%
Other (8) (9)
373
500
(25)%
Total non-compensation expenses
1,965
2,040
(4)%
Total non-interest expenses
10,178
9,339
9%
Pre-tax income
2,643
2,280
16%
Provision for income taxes
575
541
6%
Net income
2,068
1,739
19%
Preferred stock dividends
5
6
(17)%
Net income available to common shareholders
$
2,063
$
1,733
19%
Earnings per common share – basic (4)
$
9.94
$
8.16
22%
Earnings per common share – diluted (4)
$
9.70
$
7.97
22%
Weighted-average common shares outstanding – basic
207.1
211.8
(2)%
Weighted-average common and common equivalent shares outstanding – diluted
212.3
216.9
(2)%
Please refer to the footnotes at the end of this press release for additional information.
7
RAYMOND JAMES FINANCIAL, INC.
Consolidated Selected Key Metrics
Fiscal Fourth Quarter of 2024
(Unaudited)
As of
% change from
$ in millions, except per share amounts
September 30,
2024
September 30,
2023
June 30,
2024
September 30,
2023
June 30,
2024
Total assets
$
82,992
$
78,360
$
80,628
6%
3%
Total common equity attributable to Raymond James Financial, Inc.
$
11,594
$
10,135
$
11,118
14%
4%
Book value per share (10)
$
57.03
$
48.54
$
54.08
17%
5%
Tangible book value per share (1) (10)
$
48.43
$
40.03
$
45.57
21%
6%
Capital ratios:
Tier 1 leverage
12.8
%
(3)
11.9
%
12.7
%
Tier 1 capital
22.8
%
(3)
21.4
%
22.2
%
Common equity tier 1
22.6
%
(3)
21.2
%
22.0
%
Total capital
24.1
%
(3)
22.8
%
23.6
%
As of
% change from
Client asset metrics ($ in billions)
September 30,
2024
September 30,
2023
June 30,
2024
September 30,
2023
June 30,
2024
Client assets under administration
$
1,571.1
$
1,256.5
$
1,476.2
25%
6%
Private Client Group assets under administration
$
1,507.0
$
1,201.2
$
1,415.7
25%
6%
Private Client Group assets in fee-based accounts
$
875.2
$
683.2
$
820.6
28%
7%
Financial assets under management
$
244.8
$
196.4
$
229.3
25%
7%
Three months ended
Twelve months ended
Net new assets metrics ($ in millions)
September 30,
2024
September 30,
2023
June 30,
2024
September 30,
2024
September 30,
2023
Domestic Private Client Group net new assets (2)
$
12,969
$
14,169
$
16,517
$
60,709
$
73,254
Domestic Private Client Group net new assets growth — annualized (2)
4.0
%
5.0
%
5.2
%
5.5
%
7.7
%
As of
% change from
Private Client Group financial advisors
September 30,
2024
September 30,
2023
June 30,
2024
September 30,
2023
June 30,
2024
Employees
3,826
3,693
3,812
4%
—%
Independent contractors
4,961
5,019
4,970
(1)%
—%
Total advisors (11)
8,787
8,712
8,782
1%
—%
As of
% change from
Clients’ domestic cash sweep and Enhanced Savings Program balances ($ in millions)
September 30,
2024
September 30,
2023
June 30,
2024
September 30,
2023
June 30,
2024
Raymond James Bank Deposit Program (“RJBDP”): (12)
Bank segment
$
23,978
$
25,355
$
23,371
(5)%
3%
Third-party banks
18,226
15,858
17,325
15%
5%
Subtotal RJBDP
42,204
41,213
40,696
2%
4%
Client Interest Program
1,653
1,620
1,713
2%
(4)%
Total clients’ domestic cash sweep balances
43,857
42,833
42,409
2%
3%
Enhanced Savings Program (“ESP”) (13)
14,018
13,592
14,039
3%
—%
Total clients’ domestic cash sweep and ESP balances
$
57,875
$
56,425
$
56,448
3%
3%
Net interest income and RJBDP fees
($ in millions)
Three months ended
% change from
Twelve months ended
September 30,
2024
September 30,
2023
June 30,
2024
September 30,
2023
June 30,
2024
September 30,
2024
September 30,
2023
% change
Net interest income and RJBDP fees (third-party banks)
$
678
$
711
$
672
(5)%
1%
$
2,737
$
2,873
(5)%
Average yield on RJBDP - third-party banks (14)
3.34
%
3.60
%
3.41
%
3.50
%
3.20
%
Please refer to the footnotes at the end of this press release for additional information.
8
RAYMOND JAMES FINANCIAL, INC.
Consolidated Net Interest
Fiscal Fourth Quarter of 2024
(Unaudited)
The following tables present our consolidated average interest-earning asset and interest-bearing liability balances, interest income and expense and the related rates.
Three months ended
September 30, 2024
September 30, 2023
June 30, 2024
$ in millions
Average
balance
Interest
Annualized
average
rate
Average
balance
Interest
Annualized
average
rate
Average
balance
Interest
Annualized
average
rate
INTEREST-EARNING ASSETS
Bank segment
Cash and cash equivalents
$
5,680
$
75
5.29
%
$
5,208
$
71
5.36
%
$
5,318
$
72
5.38
%
Available-for-sale securities
9,208
53
2.27
%
10,563
56
2.12
%
9,791
55
2.28
%
Loans held for sale and investment: (15)
Loans held for investment:
Securities-based loans (“SBL”) (16)
15,832
283
7.01
%
14,307
260
7.14
%
15,029
269
7.10
%
Commercial and industrial (“C&I”) loans
9,877
187
7.45
%
10,499
201
7.49
%
9,935
194
7.70
%
Commercial real estate (“CRE”) loans
7,607
145
7.47
%
7,115
138
7.59
%
7,465
142
7.52
%
Real estate investment trust (“REIT”) loans
1,800
36
7.73
%
1,707
33
7.54
%
1,731
34
7.71
%
Residential mortgage loans
9,355
89
3.76
%
8,570
72
3.34
%
9,173
83
3.66
%
Tax-exempt loans (17)
1,381
9
3.35
%
1,512
10
3.17
%
1,439
10
3.34
%
Loans held for sale
237
6
8.52
%
140
3
8.23
%
234
4
7.77
%
Total loans held for sale and investment
46,089
755
6.45
%
43,850
717
6.44
%
45,006
736
6.51
%
All other interest-earning assets
252
4
5.97
%
201
3
5.94
%
227
4
5.95
%
Interest-earning assets — Bank segment
$
61,229
$
887
5.71
%
$
59,822
$
847
5.58
%
$
60,342
$
867
5.72
%
All other segments
Cash and cash equivalents
$
3,579
$
53
5.85
%
$
3,231
$
48
5.85
%
$
3,311
$
49
5.99
%
Assets segregated for regulatory purposes and restricted cash
3,423
43
4.96
%
3,510
45
5.12
%
3,624
46
5.08
%
Trading assets — debt securities
1,344
19
5.49
%
1,070
17
5.56
%
1,425
20
5.83
%
Brokerage client receivables
2,351
47
8.03
%
2,150
46
8.34
%
2,370
48
8.13
%
All other interest-earning assets
2,421
24
4.21
%
1,782
16
3.79
%
2,426
27
4.24
%
Interest-earning assets — all other segments
$
13,118
$
186
5.67
%
$
11,743
$
172
5.75
%
$
13,156
$
190
5.78
%
Total interest-earning assets
$
74,347
$
1,073
5.70
%
$
71,565
$
1,019
5.61
%
$
73,498
$
1,057
5.73
%
INTEREST-BEARING LIABILITIES
Bank Segment
Bank deposits:
Money market and savings accounts (12)
$
31,697
$
184
2.31
%
$
33,447
$
155
1.84
%
$
31,232
$
173
2.24
%
Interest-bearing demand deposits (13)
20,559
254
4.91
%
17,519
216
4.91
%
20,261
250
4.95
%
Certificates of deposit
2,606
31
4.74
%
2,762
30
4.35
%
2,491
30
4.81
%
Total bank deposits (18)
54,862
469
3.40
%
53,728
401
2.97
%
53,984
453
3.38
%
Federal Home Loan Bank (“FHLB”) advances and all other interest-bearing liabilities
1,071
7
2.40
%
1,233
7
2.20
%
1,189
8
2.90
%
Interest-bearing liabilities — Bank segment
$
55,933
$
476
3.38
%
$
54,961
$
408
2.95
%
$
55,173
$
461
3.37
%
All other segments
Trading liabilities — debt securities
$
879
$
11
5.01
%
$
702
$
10
5.22
%
$
862
$
11
5.22
%
Brokerage client payables
4,573
20
1.77
%
4,620
21
1.65
%
4,558
22
1.93
%
Senior notes payable
2,040
23
4.48
%
2,039
23
4.53
%
2,039
23
4.50
%
All other interest-bearing liabilities (18)
1,232
11
4.14
%
584
—
1.17
%
1,522
17
4.42
%
Interest-bearing liabilities — all other segments
$
8,724
$
65
3.06
%
$
7,945
$
54
2.67
%
$
8,981
$
73
3.25
%
Total interest-bearing liabilities
$
64,657
$
541
3.34
%
$
62,906
$
462
2.91
%
$
64,154
$
534
3.35
%
Firmwide net interest income
$
532
$
557
$
523
Net interest margin (net yield on interest-earning assets)
Bank segment
2.62
%
2.87
%
2.64
%
Firmwide
2.85
%
3.09
%
2.86
%
Please refer to the footnotes at the end of this press release for additional information.
9
RAYMOND JAMES FINANCIAL, INC.
Consolidated Net Interest
Fiscal Fourth Quarter of 2024
(Unaudited)
Twelve months ended
September 30, 2024
September 30, 2023
$ in millions
Average
balance
Interest
Average
rate
Average
balance
Interest
Average
rate
INTEREST-EARNING ASSETS
Bank segment
Cash and cash equivalents
$
5,694
$
307
5.37
%
$
4,033
$
199
4.89
%
Available-for-sale securities
9,852
220
2.23
%
10,805
219
2.02
%
Loans held for sale and investment: (15)
Loans held for investment:
SBL (16)
15,000
1,081
7.09
%
14,510
977
6.65
%
C&I loans
10,167
784
7.59
%
10,955
767
6.90
%
CRE loans
7,425
568
7.53
%
6,993
496
6.99
%
REIT loans
1,728
136
7.71
%
1,680
119
6.99
%
Residential mortgage loans
9,069
329
3.62
%
8,114
258
3.18
%
Tax-exempt loans (17)
1,428
38
3.30
%
1,596
41
3.14
%
Loans held for sale
194
16
8.26
%
173
13
7.61
%
Total loans held for sale and investment
45,011
2,952
6.48
%
44,021
2,671
6.02
%
All other interest-earning assets
239
15
6.06
%
156
9
5.67
%
Interest-earning assets — Bank segment
$
60,796
$
3,494
5.69
%
$
59,015
$
3,098
5.21
%
All other segments
Cash and cash equivalents
$
3,358
$
202
6.00
%
$
3,125
$
159
5.08
%
Assets segregated for regulatory purposes and restricted cash
3,583
183
5.10
%
4,722
197
4.17
%
Trading assets — debt securities
1,274
73
5.71
%
1,059
57
5.40
%
Brokerage client receivables
2,287
187
8.17
%
2,214
170
7.68
%
All other interest-earning assets
2,304
93
3.98
%
1,809
67
3.46
%
Interest-earning assets — all other segments
$
12,806
$
738
5.74
%
$
12,929
$
650
4.99
%
Total interest-earning assets
$
73,602
$
4,232
5.70
%
$
71,944
$
3,748
5.17
%
INTEREST-BEARING LIABILITIES
Bank Segment
Bank deposits:
Money market and savings accounts (12)
$
31,519
$
681
2.16
%
$
40,463
$
547
1.35
%
Interest-bearing demand deposits (13)
20,329
1,001
4.92
%
10,352
473
4.57
%
Certificates of deposit
2,633
123
4.66
%
2,163
84
3.88
%
Total bank deposits (18)
54,481
1,805
3.31
%
52,978
1,104
2.08
%
FHLB advances and all other interest-bearing liabilities
1,168
33
2.80
%
1,364
37
2.67
%
Interest-bearing liabilities — Bank segment
$
55,649
$
1,838
3.30
%
$
54,342
$
1,141
2.09
%
All other segments
Trading liabilities — debt securities
$
825
$
44
5.34
%
$
727
$
36
5.24
%
Brokerage client payables
4,663
83
1.78
%
5,877
78
1.33
%
Senior notes payable
2,039
92
4.50
%
2,038
92
4.53
%
All other interest-bearing liabilities (18)
1,157
45
4.03
%
620
26
3.78
%
Interest-bearing liabilities — all other segments
$
8,684
$
264
3.06
%
$
9,262
$
232
2.51
%
Total interest-bearing liabilities
$
64,333
$
2,102
3.27
%
$
63,604
$
1,373
2.15
%
Firmwide net interest income
$
2,130
$
2,375
Net interest margin (net yield on interest-earning assets)
Bank segment
2.67
%
3.28
%
Firmwide
2.89
%
3.30
%
Please refer to the footnotes at the end of this press release for additional information.
10
RAYMOND JAMES FINANCIAL, INC.
Segment Results
Fiscal Fourth Quarter of 2024
(Unaudited)
Three months ended
% change from
$ in millions
September 30,
2024
September 30,
2023
June 30,
2024
September 30,
2023
June 30,
2024
Net revenues:
Private Client Group
$
2,476
$
2,265
$
2,416
9%
2%
Capital Markets
483
341
330
42%
46%
Asset Management
275
236
265
17%
4%
Bank
433
451
418
(4)%
4%
Other (19)
28
25
28
12%
—%
Intersegment eliminations
(233)
(265)
(229)
(12)%
2%
Total net revenues
$
3,462
$
3,053
$
3,228
13%
7%
Pre-tax income/(loss):
Private Client Group
$
461
$
477
$
441
(3)%
5%
Capital Markets
95
(7)
(14)
NM
NM
Asset Management
116
100
112
16%
4%
Bank
98
78
115
26%
(15)%
Other (19)
(10)
(63)
(10)
84%
—%
Pre-tax income
$
760
$
585
$
644
30%
18%
Twelve months ended
$ in millions
September 30,
2024
September 30,
2023
% change
Net revenues:
Private Client Group
$
9,459
$
8,654
9%
Capital Markets
1,472
1,214
21%
Asset Management
1,027
885
16%
Bank
1,716
2,013
(15)%
Other (19)
99
59
68%
Intersegment eliminations
(952)
(1,206)
(21)%
Total net revenues
$
12,821
$
11,619
10%
Pre-tax income/(loss):
Private Client Group
$
1,785
$
1,763
1%
Capital Markets
67
(91)
NM
Asset Management
421
351
20%
Bank
380
371
2%
Other (9) (19)
(10)
(114)
91%
Pre-tax income
$
2,643
$
2,280
16%
Please refer to the footnotes at the end of this press release for additional information.
11
RAYMOND JAMES FINANCIAL, INC.
Segment Results
Fiscal Fourth Quarter of 2024
(Unaudited)
Private Client Group
Three months ended
% change from
$ in millions
September 30,
2024
September 30,
2023
June 30,
2024
September 30,
2023
June 30,
2024
Revenues:
Asset management and related administrative fees
$
1,408
$
1,226
$
1,364
15%
3%
Brokerage revenues:
Mutual and other fund products
148
142
142
4%
4%
Insurance and annuity products
137
119
130
15%
5%
Equities, exchange-traded funds (“ETFs”) and fixed income products
148
115
137
29%
8%
Total brokerage revenues
433
376
409
15%
6%
Account and service fees:
Mutual fund and annuity service fees
122
109
118
12%
3%
RJBDP fees: (12)
Bank segment
197
237
198
(17)%
(1)%
Third-party banks
146
154
149
(5)%
(2)%
Client account and other fees
69
56
66
23%
5%
Total account and service fees
534
556
531
(4)%
1%
Investment banking
9
8
10
13%
(10)%
Interest income
119
115
121
3%
(2)%
All other
4
8
13
(50)%
(69)%
Total revenues
2,507
2,289
2,448
10%
2%
Interest expense
(31)
(24)
(32)
29%
(3)%
Net revenues
2,476
2,265
2,416
9%
2%
Non-interest expenses:
Financial advisor compensation and benefits
1,364
1,193
1,327
14%
3%
Administrative compensation and benefits
387
348
389
11%
(1)%
Total compensation, commissions and benefits
1,751
1,541
1,716
14%
2%
Non-compensation expenses
264
247
259
7%
2%
Total non-interest expenses
2,015
1,788
1,975
13%
2%
Pre-tax income
$
461
$
477
$
441
(3)%
5%
Please refer to the footnotes at the end of this press release for additional information.
12
RAYMOND JAMES FINANCIAL, INC.
Segment Results
Fiscal Fourth Quarter of 2024
(Unaudited)
Private Client Group
Twelve months ended
$ in millions
September 30,
2024
September 30,
2023
% change
Revenues:
Asset management and related administrative fees
$
5,246
$
4,545
15%
Brokerage revenues:
Mutual and other fund products
567
540
5%
Insurance and annuity products
519
439
18%
Equities, ETFs and fixed income products
545
455
20%
Total brokerage revenues
1,631
1,434
14%
Account and service fees:
Mutual fund and annuity service fees
461
415
11%
RJBDP fees: (12)
Bank segment
824
1,093
(25)%
Third-party banks
607
498
22%
Client account and other fees
264
231
14%
Total account and service fees
2,156
2,237
(4)%
Investment banking
38
35
9%
Interest income
480
455
5%
All other
27
48
(44)%
Total revenues
9,578
8,754
9%
Interest expense
(119)
(100)
19%
Net revenues
9,459
8,654
9%
Non-interest expenses:
Financial advisor compensation and benefits
5,154
4,537
14%
Administrative compensation and benefits
1,546
1,390
11%
Total compensation, commissions and benefits
6,700
5,927
13%
Non-compensation expenses
974
964
1%
Total non-interest expenses
7,674
6,891
11%
Pre-tax income
$
1,785
$
1,763
1%
Please refer to the footnotes at the end of this press release for additional information.
13
RAYMOND JAMES FINANCIAL, INC.
Segment Results
Fiscal Fourth Quarter of 2024
(Unaudited)
Capital Markets
Three months ended
% change from
$ in millions
September 30,
2024
September 30,
2023
June 30,
2024
September 30,
2023
June 30,
2024
Revenues:
Brokerage revenues:
Fixed income
$
91
$
71
$
86
28%
6%
Equity
36
30
35
20%
3%
Total brokerage revenues
127
101
121
26%
5%
Investment banking:
Merger & acquisition and advisory
205
141
91
45%
125%
Equity underwriting
49
16
33
206%
48%
Debt underwriting
52
37
49
41%
6%
Total investment banking
306
194
173
58%
77%
Interest income
28
23
32
22%
(13)%
Affordable housing investments business revenues
43
41
30
5%
43%
All other
6
3
4
100%
50%
Total revenues
510
362
360
41%
42%
Interest expense
(27)
(21)
(30)
29%
(10)%
Net revenues
483
341
330
42%
46%
Non-interest expenses:
Compensation, commissions and benefits
281
238
243
18%
16%
Non-compensation expenses
107
110
101
(3)%
6%
Total non-interest expenses
388
348
344
11%
13%
Pre-tax income/(loss)
$
95
$
(7)
$
(14)
NM
NM
Twelve months ended
$ in millions
September 30,
2024
September 30,
2023
% change
Revenues:
Brokerage revenues:
Fixed income
$
367
$
345
6%
Equity
143
130
10%
Total brokerage revenues
510
475
7%
Investment banking:
Merger & acquisition and advisory
521
418
25%
Equity underwriting
131
85
54%
Debt underwriting
168
110
53%
Total investment banking
820
613
34%
Interest income
109
88
24%
Affordable housing investments business revenues
118
109
8%
All other
18
14
29%
Total revenues
1,575
1,299
21%
Interest expense
(103)
(85)
21%
Net revenues
1,472
1,214
21%
Non-interest expenses:
Compensation, commissions and benefits
1,002
902
11%
Non-compensation expenses
403
403
—%
Total non-interest expenses
1,405
1,305
8%
Pre-tax income/(loss)
$
67
$
(91)
NM
Please refer to the footnotes at the end of this press release for additional information.
14
RAYMOND JAMES FINANCIAL, INC.
Segment Results
Fiscal Fourth Quarter of 2024
(Unaudited)
Asset Management
Three months ended
% change from
$ in millions
September 30,
2024
September 30,
2023
June 30,
2024
September 30,
2023
June 30,
2024
Revenues:
Asset management and related administrative fees:
Managed programs
$
176
$
153
$
171
15%
3%
Administration and other
87
73
83
19%
5%
Total asset management and related administrative fees
263
226
254
16%
4%
Account and service fees
6
5
5
20%
20%
All other
6
5
6
20%
—%
Net revenues
275
236
265
17%
4%
Non-interest expenses:
Compensation, commissions and benefits
56
48
56
17%
—%
Non-compensation expenses
103
88
97
17%
6%
Total non-interest expenses
159
136
153
17%
4%
Pre-tax income
$
116
$
100
$
112
16%
4%
Twelve months ended
$ in millions
September 30,
2024
September 30,
2023
% change
Revenues:
Asset management and related administrative fees:
Managed programs
$
660
$
573
15%
Administration and other
323
273
18%
Total asset management and related administrative fees
983
846
16%
Account and service fees
22
21
5%
All other
22
18
22%
Net revenues
1,027
885
16%
Non-interest expenses:
Compensation, commissions and benefits
223
198
13%
Non-compensation expenses
383
336
14%
Total non-interest expenses
606
534
13%
Pre-tax income
$
421
$
351
20%
Please refer to the footnotes at the end of this press release for additional information.
15
RAYMOND JAMES FINANCIAL, INC.
Segment Results
Fiscal Fourth Quarter of 2024
(Unaudited)
Bank
Three months ended
% change from
$ in millions
September 30,
2024
September 30,
2023
June 30,
2024
September 30,
2023
June 30,
2024
Revenues:
Interest income
$
887
$
847
$
867
5%
2%
Interest expense
(476)
(408)
(461)
17%
3%
Net interest income
411
439
406
(6)%
1%
All other
22
12
12
83%
83%
Net revenues
433
451
418
(4)%
4%
Non-interest expenses:
Compensation and benefits
44
41
45
7%
(2)%
Non-compensation expenses:
Bank loan provision/(benefit) for credit losses
22
36
(10)
(39)%
NM
RJBDP fees to Private Client Group (12)
197
237
198
(17)%
(1)%
All other
72
59
70
22%
3%
Total non-compensation expenses
291
332
258
(12)%
13%
Total non-interest expenses
335
373
303
(10)%
11%
Pre-tax income
$
98
$
78
$
115
26%
(15)%
Twelve months ended
$ in millions
September 30,
2024
September 30,
2023
% change
Revenues:
Interest income
$
3,494
$
3,098
13%
Interest expense
(1,838)
(1,141)
61%
Net interest income
1,656
1,957
(15)%
All other
60
56
7%
Net revenues
1,716
2,013
(15)%
Non-interest expenses:
Compensation and benefits
180
177
2%
Non-compensation expenses:
Bank loan provision for credit losses
45
132
(66)%
RJBDP fees to Private Client Group (12)
824
1,093
(25)%
All other
287
240
20%
Total non-compensation expenses
1,156
1,465
(21)%
Total non-interest expenses
1,336
1,642
(19)%
Pre-tax income
$
380
$
371
2%
Please refer to the footnotes at the end of this press release for additional information.
16
RAYMOND JAMES FINANCIAL, INC.
Segment Results
Fiscal Fourth Quarter of 2024
(Unaudited)
Other (19)
Three months ended
% change from
$ in millions
September 30,
2024
September 30,
2023
June 30,
2024
September 30,
2023
June 30,
2024
Revenues:
Interest income
$
53
$
44
$
47
20%
13%
All other
—
3
6
(100)%
(100)%
Total revenues
53
47
53
13%
—%
Interest expense
(25)
(22)
(25)
14%
—%
Net revenues
28
25
28
12%
—%
Non-interest expenses:
Compensation and benefits
26
24
29
8%
(10)%
All other
12
64
9
(81)%
33%
Total non-interest expenses
38
88
38
(57)%
—%
Pre-tax loss
$
(10)
$
(63)
$
(10)
84%
—%
Twelve months ended
$ in millions
September 30,
2024
September 30,
2023
% change
Revenues:
Interest income
$
193
$
147
31%
All other
6
9
(33)%
Total revenues
199
156
28%
Interest expense
(100)
(97)
3%
Net revenues
99
59
68%
Non-interest expenses:
Compensation and benefits
104
95
9%
Insurance settlement received (9)
—
(32)
100%
All other
5
110
(95)%
Total non-interest expenses
109
173
(37)%
Pre-tax loss
$
(10)
$
(114)
91%
Please refer to the footnotes at the end of this press release for additional information.
17
RAYMOND JAMES FINANCIAL, INC.
Bank Segment Selected Key Metrics
Fiscal Fourth Quarter of 2024
(Unaudited)
Bank Segment
Our Bank segment includes Raymond James Bank and TriState Capital Bank.
As of
% change from
$ in millions
September 30,
2024
September 30,
2023
June 30,
2024
September 30,
2023
June 30,
2024
Total assets
$
62,367
$
60,041
$
60,574
4%
3%
Bank loans, net
$
45,994
$
43,775
$
45,149
5%
2%
Bank loan allowance for credit losses
$
457
$
474
$
456
(4)%
—%
Bank loan allowance for credit losses as a % of total loans held for investment
0.99
%
1.07
%
1.00
%
Bank loan allowance for credit losses on corporate loans as a % of corporate loans held for investment (20)
1.99
%
2.03
%
2.00
%
Total nonperforming assets
$
175
$
128
$
160
37%
9%
Nonperforming assets as a % of total assets
0.28
%
0.21
%
0.26
%
Total criticized loans
$
679
$
518
$
523
31%
30%
Criticized loans as a % of loans held for investment
1.47
%
1.17
%
1.15
%
Total bank deposits
$
56,010
$
54,199
$
54,401
3%
3%
Three months ended
% change from
Twelve months ended
$ in millions
September 30,
2024
September 30,
2023
June 30,
2024
September 30,
2023
June 30,
2024
September 30,
2024
September 30,
2023
% change
Net interest margin (net yield on interest-earning assets)
2.62
%
2.87
%
2.64
%
2.67
%
3.28
%
Bank loan provision/(benefit) for credit losses
$
22
$
36
$
(10)
(39)%
NM
$
45
$
132
(66)%
Net charge-offs
$
20
$
17
$
6
18%
233%
$
62
$
54
15%
Please refer to the footnotes at the end of this press release for additional information.
18
RAYMOND JAMES FINANCIAL, INC.
Non-GAAP Financial Measures
Fiscal Fourth Quarter of 2024
(Unaudited)
Reconciliation of non-GAAP financial measures to GAAP financial measures
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 in this document. We believe certain of these non-GAAP financial measures provide useful information to management and investors by excluding certain material items that may not be indicative of our core operating results. We utilize these non-GAAP financial measures in assessing the financial performance of the business, as they facilitate a comparison of current- and prior-period results. We believe that return on tangible common equity and tangible book value per share are meaningful to investors as they facilitate comparisons of our results to the results of other companies.
In the following tables, the tax effect of non-GAAP adjustments reflects the statutory rate associated with each non-GAAP item. These non-GAAP financial measures should be considered in addition to, and not as a substitute for, measures of financial performance prepared in accordance with GAAP. In addition, our non-GAAP financial measures may not be comparable to similarly titled non-GAAP financial measures of other companies. The following tables provide a reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures.
Three months ended
Twelve months ended
$ in millions
September 30,
2024
September 30,
2023
June 30,
2024
September 30,
2024
September 30,
2023
Net income available to common shareholders
$
601
$
432
$
491
$
2,063
$
1,733
Non-GAAP adjustments:
Expenses related to acquisitions:
Compensation, commissions and benefits:
Acquisition-related retention (21)
9
17
11
42
70
Other acquisition-related compensation
—
—
—
—
10
Total “Compensation, commissions and benefits” expense
9
17
11
42
80
Communications and information processing
1
2
—
2
2
Professional fees
1
3
1
4
3
Other:
Amortization of identifiable intangible assets (22)
11
12
11
44
45
All other acquisition-related expenses
3
—
—
5
—
Total “Other” expense
14
12
11
49
45
Total expenses related to acquisitions
25
34
23
97
130
Other — Insurance settlement received (9)
—
—
—
—
(32)
Pre-tax impact of non-GAAP adjustments
25
34
23
97
98
Tax effect of non-GAAP adjustments
(5)
(9)
(6)
(23)
(25)
Total non-GAAP adjustments, net of tax
20
25
17
74
73
Adjusted net income available to common shareholders (1)
$
621
$
457
$
508
$
2,137
$
1,806
Pre-tax income
$
760
$
585
$
644
$
2,643
$
2,280
Pre-tax impact of non-GAAP adjustments (as detailed above)
25
34
23
97
98
Adjusted pre-tax income (1)
$
785
$
619
$
667
$
2,740
$
2,378
Compensation, commissions and benefits expense
$
2,159
$
1,892
$
2,090
$
8,213
$
7,299
Less: Total compensation-related acquisition expenses (as detailed above)
9
17
11
42
80
Adjusted “Compensation, commissions and benefits” expense (1)
$
2,150
$
1,875
$
2,079
$
8,171
$
7,219
Please refer to the footnotes at the end of this press release for additional information.
19
RAYMOND JAMES FINANCIAL, INC.
Non-GAAP Financial Measures
Fiscal Fourth Quarter of 2024
(Unaudited)
Reconciliation of non-GAAP financial measures to GAAP financial measures
(Continued from previous page)
Three months ended
Twelve months ended
September 30,
2024
September 30,
2023
June 30,
2024
September 30,
2024
September 30,
2023
Pre-tax margin (6)
22.0
%
19.2
%
20.0
%
20.6
%
19.6
%
Impact of non-GAAP adjustments on pre-tax margin:
Expenses related to acquisitions:
Compensation, commissions and benefits:
Acquisition-related retention (21)
0.3
%
0.6
%
0.3
%
0.4
%
0.6
%
Other acquisition-related compensation
—
%
—
%
—
%
—
%
0.1
%
Total “Compensation, commissions and benefits” expense
0.3
%
0.6
%
0.3
%
0.4
%
0.7
%
Communications and information processing
—
%
—
%
—
%
—
%
—
%
Professional fees
—
%
0.1
%
—
%
—
%
0.1
%
Other:
Amortization of identifiable intangible assets (22)
0.3
%
0.4
%
0.4
%
0.3
%
0.4
%
All other acquisition-related expenses
0.1
%
—
%
—
%
0.1
%
—
%
Total “Other” expense
0.4
%
0.4
%
0.4
%
0.4
%
0.4
%
Total expenses related to acquisitions
0.7
%
1.1
%
0.7
%
0.8
%
1.2
%
Other — Insurance settlement received (9)
—
%
—
%
—
%
—
%
(0.3)
%
Total non-GAAP adjustments
0.7
%
1.1
%
0.7
%
0.8
%
0.9
%
Adjusted pre-tax margin (1) (6)
22.7
%
20.3
%
20.7
%
21.4
%
20.5
%
Total compensation ratio (7)
62.4
%
62.0
%
64.7
%
64.1
%
62.8
%
Less the impact of non-GAAP adjustments on compensation ratio:
Acquisition-related retention (21)
0.3
%
0.6
%
0.3
%
0.4
%
0.6
%
Other acquisition-related compensation
—
%
—
%
—
%
—
%
0.1
%
Total “Compensation, commissions and benefits” expenses related to acquisitions
0.3
%
0.6
%
0.3
%
0.4
%
0.7
%
Adjusted total compensation ratio (1) (7)
62.1
%
61.4
%
64.4
%
63.7
%
62.1
%
Please refer to the footnotes at the end of this press release for additional information.
20
RAYMOND JAMES FINANCIAL, INC.
Non-GAAP Financial Measures
Fiscal Fourth Quarter of 2024
(Unaudited)
Reconciliation of non-GAAP financial measures to GAAP financial measures
(Continued from previous page)
Three months ended
Twelve months ended
Earnings per common share (4)
September 30,
2024
September 30,
2023
June 30,
2024
September 30,
2024
September 30,
2023
Basic
$
2.93
$
2.07
$
2.37
$
9.94
$
8.16
Impact of non-GAAP adjustments on basic earnings per common share:
Expenses related to acquisitions:
Compensation, commissions and benefits:
Acquisition-related retention (21)
0.04
0.08
0.05
0.20
0.33
Other acquisition-related compensation
—
—
—
—
0.05
Total “Compensation, commissions and benefits” expense
0.04
0.08
0.05
0.20
0.38
Communications and information processing
—
0.01
—
0.01
0.01
Professional fees
0.01
0.01
0.01
0.02
0.01
Other:
Amortization of identifiable intangible assets (22)
0.05
0.06
0.05
0.21
0.21
All other acquisition-related expenses
0.02
—
—
0.03
—
Total “Other” expense
0.07
0.06
0.05
0.24
0.21
Total expenses related to acquisitions
0.12
0.16
0.11
0.47
0.61
Other — Insurance settlement received (9)
—
—
—
—
(0.15)
Tax effect of non-GAAP adjustments
(0.02)
(0.04)
(0.03)
(0.11)
(0.12)
Total non-GAAP adjustments, net of tax
0.10
0.12
0.08
0.36
0.34
Adjusted basic (1)
$
3.03
$
2.19
$
2.45
$
10.30
$
8.50
Diluted
$
2.86
$
2.02
$
2.31
$
9.70
$
7.97
Impact of non-GAAP adjustments on diluted earnings per common share:
Expenses related to acquisitions:
Compensation, commissions and benefits:
Acquisition-related retention (21)
0.04
0.08
0.05
0.20
0.32
Other acquisition-related compensation
—
—
—
—
0.05
Total “Compensation, commissions and benefits” expense
0.04
0.08
0.05
0.20
0.37
Communications and information processing
—
0.01
—
0.01
0.01
Professional fees
—
0.01
0.01
0.02
0.01
Other:
Amortization of identifiable intangible assets (22)
0.05
0.05
0.05
0.21
0.21
All other acquisition-related expenses
0.02
—
—
0.02
—
Total “Other” expense
0.07
0.05
0.05
0.23
0.21
Total expenses related to acquisitions
0.11
0.15
0.11
0.46
0.60
Other — Insurance settlement received (9)
—
—
—
—
(0.15)
Tax effect of non-GAAP adjustments
(0.02)
(0.04)
(0.03)
(0.11)
(0.12)
Total non-GAAP adjustments, net of tax
0.09
0.11
0.08
0.35
0.33
Adjusted diluted (1)
$
2.95
$
2.13
$
2.39
$
10.05
$
8.30
Please refer to the footnotes at the end of this press release for additional information.
21
RAYMOND JAMES FINANCIAL, INC.
Non-GAAP Financial Measures
Fiscal Fourth Quarter of 2024
(Unaudited)
Reconciliation of non-GAAP financial measures to GAAP financial measures
(Continued from previous page)
Book value per share
As of
$ in millions, except per share amounts
September 30,
2024
September 30,
2023
June 30,
2024
Total common equity attributable to Raymond James Financial, Inc.
$
11,594
$
10,135
$
11,118
Less non-GAAP adjustments:
Goodwill and identifiable intangible assets, net
1,886
1,907
1,884
Deferred tax liabilities related to goodwill and identifiable intangible assets, net
(138)
(131)
(136)
Tangible common equity attributable to Raymond James Financial, Inc. (1)
$
9,846
$
8,359
$
9,370
Common shares outstanding
203.3
208.8
205.6
Book value per share (10)
$
57.03
$
48.54
$
54.08
Tangible book value per share (1) (10)
$
48.43
$
40.03
$
45.57
Return on common equity
Three months ended
Twelve months ended
$ in millions
September 30,
2024
September 30,
2023
June 30,
2024
September 30,
2024
September 30,
2023
Average common equity (23)
$
11,356
$
10,003
$
11,012
$
10,893
$
9,791
Impact of non-GAAP adjustments on average common equity:
Expenses related to acquisitions:
Compensation, commissions and benefits:
Acquisition-related retention (21)
5
9
5
22
35
Other acquisition-related compensation
—
—
—
—
4
Total “Compensation, commissions and benefits” expense
5
9
5
22
39
Communications and information processing
—
1
—
—
1
Professional fees
1
2
1
2
1
Other:
Amortization of identifiable intangible assets (22)
6
6
5
22
22
All other acquisition-related expenses
1
—
—
2
—
Total “Other” expense
7
6
5
24
22
Total expenses related to acquisitions
13
18
11
48
63
Other — Insurance settlement received (9)
—
—
—
—
(26)
Tax effect of non-GAAP adjustments
(3)
(5)
(3)
(12)
(9)
Total non-GAAP adjustments, net of tax
10
13
8
36
28
Adjusted average common equity (1) (23)
$
11,366
$
10,016
$
11,020
$
10,929
$
9,819
Please refer to the footnotes at the end of this press release for additional information.
22
RAYMOND JAMES FINANCIAL, INC.
Non-GAAP Financial Measures
Fiscal Fourth Quarter of 2024
(Unaudited)
Reconciliation of non-GAAP financial measures to GAAP financial measures
(Continued from previous page)
Three months ended
Twelve months ended
$ in millions
September 30,
2024
September 30,
2023
June 30,
2024
September 30,
2024
September 30,
2023
Average common equity (23)
$
11,356
$
10,003
$
11,012
$
10,893
$
9,791
Less:
Average goodwill and identifiable intangible assets, net
1,885
1,918
1,889
1,896
1,928
Average deferred tax liabilities related to goodwill and identifiable intangible assets, net
(137)
(130)
(135)
(134)
(129)
Average tangible common equity (1) (23)
$
9,608
$
8,215
$
9,258
$
9,131
$
7,992
Impact of non-GAAP adjustments on average tangible common equity:
Expenses related to acquisitions:
Compensation, commissions and benefits:
Acquisition-related retention (21)
5
9
5
22
35
Other acquisition-related compensation
—
—
—
—
4
Total “Compensation, commissions and benefits” expense
5
9
5
22
39
Communications and information processing
—
1
—
—
1
Professional fees
1
2
1
2
1
Other:
Amortization of identifiable intangible assets (22)
6
6
5
22
22
All other acquisition-related expenses
1
—
—
2
—
Total “Other” expense
7
6
5
24
22
Total expenses related to acquisitions
13
18
11
48
63
Other — Insurance settlement received (9)
—
—
—
—
(26)
Tax effect of non-GAAP adjustments
(3)
(5)
(3)
(12)
(9)
Total non-GAAP adjustments, net of tax
10
13
8
36
28
Adjusted average tangible common equity (1) (23)
$
9,618
$
8,228
$
9,266
$
9,167
$
8,020
Return on common equity (5)
21.2
%
17.3
%
17.8
%
18.9
%
17.7
%
Adjusted return on common equity (1) (5)
21.9
%
18.3
%
18.4
%
19.6
%
18.4
%
Return on tangible common equity (1) (5)
25.0
%
21.0
%
21.2
%
22.6
%
21.7
%
Adjusted return on tangible common equity (1) (5)
25.8
%
22.2
%
21.9
%
23.3
%
22.5
%
Please refer to the footnotes at the end of this press release for additional information.
23
RAYMOND JAMES FINANCIAL, INC.
Fiscal Fourth Quarter of 2024 Footnotes
(1)
These are non-GAAP financial measures. See the schedules on the previous pages for a reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures and for more information on these measures.
(2)
Domestic Private Client Group net new assets represents domestic Private Client Group client inflows, including dividends and interest, less domestic Private Client Group client outflows, including commissions, advisory fees, and other fees. The domestic Private Client Group net new asset growth — annualized percentage is based on the beginning domestic Private Client Group assets under administration balance for the indicated period.
(3)
Estimated.
(4)
Earnings per common share is computed by dividing net income available to common shareholders (less allocation of earnings and dividends to participating securities) by weighted-average common shares outstanding (basic or diluted as applicable) for each respective period or, in the case of adjusted earnings per common share, computed by dividing adjusted net income available to common shareholders (less allocation of earnings and dividends to participating securities) by weighted-average common shares outstanding (basic or diluted as applicable) for each respective period. The allocations of earnings and dividends to participating securities were $1 million for each of the three months ended September 30, 2024, June 30, 2024, and September 30, 2023, and $4 million and $5 million for the twelve months ended September 30, 2024 and September 30, 2023, respectively.
(5)
Return on common equity is computed by dividing annualized net income available to common shareholders by average common equity for each respective period or, in the case of return on tangible common equity, computed by dividing annualized net income available to common shareholders by average tangible common equity for each respective period. Adjusted return on common equity is computed by dividing annualized adjusted net income available to common shareholders by adjusted average common equity for each respective period, or in the case of adjusted return on tangible common equity, computed by dividing annualized adjusted net income available to common shareholders by adjusted average tangible common equity for each respective period. Tangible common equity is defined as total common equity attributable to Raymond James Financial, Inc. less goodwill and identifiable intangible assets, net of related deferred taxes.
(6)
Pre-tax margin is computed by dividing pre-tax income by net revenues for each respective period or, in the case of adjusted pre-tax margin, computed by dividing adjusted pre-tax income by net revenues for each respective period.
(7)
Total compensation ratio is computed by dividing compensation, commissions and benefits expense by net revenues for each respective period or, in the case of adjusted total compensation ratio, computed by dividing adjusted compensation, commissions and benefits expense by net revenues for each respective period.
(8)
Provisions for legal and regulatory matters did not have a significant impact on our results for the three months ended September 30, 2024 and June 30, 2024. The twelve months ended September 30, 2024 included the favorable impact of a legal and regulatory reserve release. Results for the three and twelve months ended September 30, 2023 included elevated provisions for legal and regulatory matters.
(9)
The twelve months ended September 30, 2023 included the favorable impact of a $32 million insurance settlement received during the period related to a previously settled legal matter. This item has been reflected as an offset to Other expenses within our Other segment. In the computation of our non-GAAP financial measures, we have reversed the favorable impact of this item on adjusted pre-tax income and adjusted net income available to common shareholders. See the schedules on the previous pages for a reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures and for more information on these measures.
(10)
Book value per share is computed by dividing total common equity attributable to Raymond James Financial, Inc. by the number of common shares outstanding at the end of each respective period or, in the case of tangible book value per share, computed by dividing tangible common equity by the number of common shares outstanding at the end of each respective period.
(11)
This metric included the impact of the transfer of approximately 50 financial advisors to our Registered Investment Advisor & Custody Services (“RCS”) division during our fiscal third quarter of 2024, primarily related to one firm with financial advisors previously affiliated as independent contractors. Advisors in RCS are not included in the financial advisor count, although their assets are still included in client assets under administration.
(12)
We earn fees from the RJBDP, a multi-bank sweep program in which clients’ cash deposits in their brokerage accounts are swept into interest-bearing deposit accounts at Raymond James Bank and TriState Capital Bank, which are included in our Bank segment, as well as various third-party banks. RJBDP balances swept to our Bank segment are reflected in Bank deposits on our Consolidated Statement of Financial Condition and within money market and other savings accounts in our net interest disclosures in this release. RJBDP balances swept to third-party banks are not included in our bank deposit liability balance reflected on our Consolidated Statement of Financial Condition given those deposits are held by third-party banks.
Fees earned from the RJBDP are included in “Account and service fees” on our Consolidated Statements of Income, and those fees earned by the Private Client Group segment on deposits held by our Bank segment are eliminated in consolidation.
(13)
Our Enhanced Savings Program is a deposit offering in which Private Client Group clients may deposit cash in a high-yield Raymond James Bank account. ESP balances held at Raymond James Bank as of the respective period end are reflected in Bank deposits on our Consolidated Statement of Financial Condition and substantially all are reflected within interest-bearing demand deposits in our net interest disclosures in this release.
(14)
Average yield on RJBDP - third-party banks is computed by dividing annualized RJBDP fees - third-party banks, which are net of the interest expense paid to clients by the third-party banks, by the average daily RJBDP balances at third-party banks.
(15)
Loans are presented net of unamortized purchase discounts or premiums, unearned income, deferred origination fees and costs, and charge-offs.
(16)
Securities-based loans included loans collateralized by the borrower’s marketable securities at advance rates consistent with industry standards and, to a lesser extent, the cash surrender value of life insurance policies. An insignificant portion of our securities-based loans portfolio is collateralized by private securities or other financial instruments with a limited trading market.
24
RAYMOND JAMES FINANCIAL, INC.
Fiscal Fourth Quarter of 2024 Footnotes
(17)
The average rate on tax-exempt loans is presented on a taxable-equivalent basis utilizing the applicable federal statutory rates for each respective period.
(18)
The average balance, interest expense, and average rate for “Total bank deposits” included amounts associated with affiliate deposits. Such amounts are eliminated in consolidation and are offset in “All other interest-bearing liabilities” under “All other segments.”
(19)
The Other segment includes interest income on certain corporate cash balances, the results of our private equity investments, which predominantly consist of investments in third-party funds, certain other corporate investing activity, and certain corporate overhead costs of RJF that are not allocated to other segments including the interest costs on our public debt, certain provisions for legal and regulatory matters, and certain acquisition-related expenses.
(20)
Corporate loans included commercial and industrial loans, commercial real estate loans, and real estate investment trust loans.
(21)
Includes acquisition-related compensation expenses primarily arising from equity and cash-based retention awards issued in conjunction with acquisitions in prior years. Such retention awards are generally contingent upon the post-closing continuation of service of certain associates who joined the firm as part of such acquisitions and are expensed over the requisite service period.
(22)
Amortization of identifiable intangible assets, which was included in “Other” expense, includes amortization of identifiable intangible assets arising from our acquisitions.
(23)
Average common equity for the quarter-to-date period is computed by adding the total common equity attributable to Raymond James Financial, Inc. as of the date indicated to the prior quarter-end total, and dividing by two, or in the case of average tangible common equity, computed by adding tangible common equity as of the date indicated to the prior quarter-end total, and dividing by two. For the year-to-date period, average common equity is computed by adding the total common equity attributable to Raymond James Financial, Inc. as of each quarter-end date during the indicated period to the beginning of year total, and dividing by five, or in the case of average tangible common equity, computed by adding tangible common equity as of each quarter-end date during the indicated period to the beginning of year total, and dividing by five.
Adjusted average common equity is computed by adjusting for the impact on average common equity of the non-GAAP adjustments, as applicable for each respective period. Adjusted average tangible common equity is computed by adjusting for the impact on average tangible common equity of the non-GAAP adjustments, as applicable for each respective period.
25
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| Recession recession, downturn, contraction, slowdown | 0 | — | — |
| Tariffs tariff, trade war, trade barriers, trade restrictions, trade policy | 0 | — | — |
| Buybacks share repurchase, buyback program | 1 | — | — |
Underlines use the same word lists the scores use. AI, recession and tariffs follow Palanor’s word counter, so those counts match it exactly on the same text. Layoffs and buybacks use the terms the model was given. The model’s count is an estimate by meaning, not by string, so it can differ from the underlines.
Source: SEC EDGAR · public domain · Highlights by Palanor