FISCAL 1Q21 RESULTS
January 27, 2021
OVERVIEW OF RESULTS
Paul Reilly
Chairman & CEO, Raymond James Financial
2
FISCAL 1Q21 HIGHLIGHTS
1Q21 | vs. | vs. | ||||||
$ in millions, except per share amounts | 1Q20 | 4Q20 | ||||||
As Reported: | ||||||||
Net revenues | RECORD | $ | 2,222 | 11% | 7% | |||
Net income | RECORD | $ | 312 | 16% | 49% | |||
Earnings per common share - diluted | RECORD | $ | 2.23 | 18% | 49% | |||
1Q20 | 4Q20 | |||||||
Return on equity | 17.2% | 16.0% | 11.9% | |||||
vs. | vs. | |||||||
1Q20 | 4Q20 | |||||||
Non-GAAPMeasures:* | ||||||||
Adjusted net income | RECORD | $ | 314 | 17% | 26% | |||
Adjusted earnings per common share - diluted | RECORD | $ | 2.24 | 19% | 26% | |||
1Q20 | 4Q20 | |||||||
Adjusted return on equity | 17.3% | NA | 14.1% | |||||
Return on tangible common equity | 19.0% | 17.5% | 12.9% | |||||
Adjusted return on tangible common equity | 19.1% | NA | 15.3% | |||||
- * These are non-GAAP measures. See the schedule in the Appendix of this presentation for a reconciliation of our non-GAAP measures to the most directly comparable GAAP measures and for more information on these measures.
FISCAL 1Q21 KEY METRICS
1Q21 | vs. | vs. | ||||
$ in billions | 1Q20 | 4Q20 | ||||
Client assets under administration | RECORD | $ | 1,024.8 | 14% | 10% | |
Private Client Group (PCG) assets under administration | RECORD | $ | 974.2 | 14% | 10% | |
PCG assets in fee-based accounts | RECORD | $ | 532.7 | 20% | 12% | |
Financial assets under management | RECORD | $ | 169.6 | 12% | 11% | |
Total clients' domestic cash sweep balances | RECORD | $ | 61.6 | 56% | 11% | |
PCG financial advisors | 8,233 | 2% | -% | |||
Bank loans, net | RECORD | $ | 22.0 | 3% | 4% |
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FISCAL 1Q21 SEGMENT RESULTS
1Q21 | vs. | vs. | ||||
$ in millions | 1Q20 | 4Q20 | ||||
Net Revenues: | ||||||
Private Client Group | $ | 1,467 | 4% | 5% | ||
Capital Markets | RECORD | $ | 452 | 69% | 10% | |
Asset Management | RECORD | $ | 195 | 6% | 6% | |
Raymond James Bank | $ | 167 | (23)% | 4% | ||
Consolidated net revenues | RECORD | $ | 2,222 | 11% | 7% | |
Pre-Tax Income: | ||||||
Private Client Group | $ | 140 | (8)% | 12% | ||
Capital Markets(1) | RECORD | $ | 129 | 345% | 22% | |
Asset Management | RECORD | $ | 83 | 14% | 6% | |
Raymond James Bank | $ | 71 | (47)% | 115% | ||
Consolidated pre-tax income(1), (2) | RECORD | $ | 399 | 11% | 56% |
Note: Segments do not total consolidated results because of the Other segment and intersegment eliminations not shown.
- (1) 4Q20 included a $7 M loss in our Capital Markets segment related to the sale of our interests in certain entities that operated predominantly in France, which closed during 1Q21. (2) 1Q21 included expenses in our Other segment associated with our acquisition of NWPS Holdings, Inc. and its wholly-owned subsidiaries, which was announced and completed in December 2020, as well as our announced acquisition of Financo. 4Q20 included $46 M related to the reduction in workforce expenses associated with position eliminations that occurred in response to the economic environment. These expenses were included in our Other segment.
RECENT ACQUISITIONS
NWPS Holdings, Inc.
- Independent provider of retirement plan administration, consulting, actuarial and administration services
- Expands Raymond James' retirement services offerings, including retirement plan administration services, for advisors and clients
- Combined with Raymond James' scale, enables managing the end-to-end experience for plan sponsors and participants
- Over 400,000 participants with more than $35 billion in plan assets*
- Transaction closed on December 24, 2020
Financo**
- Boutique investment bank with strong expertise in a number of consumer and retail specialties
- Combined team will offer enhanced product capabilities and deliver broader and deeper market coverage under Raymond James' full service platform
- Positions the firm as a global market-leader in consumer and retail investment banking
- More than 25 experienced professionals with offices in New York and London
6 | * Plan assets held outside Raymond James and therefore not included in firm client assets under administration. |
** This transaction is anticipated to close in March or April 2021. The completion of the transaction is subject to certain regulatory and other closing conditions. |
FINANCIAL REVIEW
Paul Shoukry
Chief Financial Officer, Raymond James Financial
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Raymond James Financial Inc. published this content on 27 January 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 January 2021 21:21:07 UTC