EARNINGS RELEASE FINANCIAL SUPPLEMENT
THIRD QUARTER
OF FISCAL 2021 RESULTS
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, | % | ||||||||||||||||||
2020 | 2020 | 2020 | 2021 | 2021 | 2020 | 2021 | 2020 | 2021 | change | |||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||
Asset management and related administrative fees | $ | 867 | $ | 1,006 | $ | 1,067 | $ | 1,173 | $ | 1,262 | 46 % | 8 % | $ | 2,828 | $ | 3,502 | 24 % | |||||||||||
Brokerage revenues: | ||||||||||||||||||||||||||||
Securities commissions | 343 | 352 | 381 | 443 | 415 | 21 % | (6)% | 1,116 | 1,239 | 11 % | ||||||||||||||||||
Principal transactions | 143 | 143 | 147 | 148 | 137 | (4)% | (7)% | 345 | 432 | 25 % | ||||||||||||||||||
Total brokerage revenues | 486 | 495 | 528 | 591 | 552 | 14 % | (7)% | 1,461 | 1,671 | 14 % | ||||||||||||||||||
Account and service fees | 134 | 140 | 145 | 159 | 161 | 20 % | 1 % | 484 | 465 | (4)% | ||||||||||||||||||
Investment banking | 139 | 222 | 261 | 242 | 276 | 99 % | 14 % | 428 | 779 | 82 % | ||||||||||||||||||
Interest income | 217 | 201 | 203 | 200 | 205 | (6)% | 3 % | 799 | 608 | (24)% | ||||||||||||||||||
Other (1) | 33 | 57 | 56 | 44 | 55 | 67 % | 25 % | 47 | 155 | 230 % | ||||||||||||||||||
Total revenues | 1,876 | 2,121 | 2,260 | 2,409 | 2,511 | 34 % | 4 % | 6,047 | 7,180 | 19 % | ||||||||||||||||||
Interest expense | (42) | (42) | (38) | (37) | (40) | (5)% | 8 % | (136) | (115) | (15)% | ||||||||||||||||||
Net revenues | 1,834 | 2,079 | 2,222 | 2,372 | 2,471 | 35 % | 4 % | 5,911 | 7,065 | 20 % | ||||||||||||||||||
Non-interest expenses: | ||||||||||||||||||||||||||||
Compensation, commissions and benefits | 1,277 | 1,415 | 1,500 | 1,648 | 1,661 | 30 % | 1 % | 4,050 | 4,809 | 19 % | ||||||||||||||||||
Non-compensation expenses: | ||||||||||||||||||||||||||||
Communications and information processing | 100 | 100 | 99 | 107 | 109 | 9 % | 2 % | 293 | 315 | 8 % | ||||||||||||||||||
Occupancy and equipment | 55 | 57 | 57 | 57 | 58 | 5 % | 2 % | 168 | 172 | 2 % | ||||||||||||||||||
Business development | 21 | 28 | 23 | 21 | 31 | 48 % | 48 % | 106 | 75 | (29)% | ||||||||||||||||||
Investment sub-advisory fees | 23 | 26 | 28 | 31 | 34 | 48 % | 10 % | 75 | 93 | 24 % | ||||||||||||||||||
Professional fees | 24 | 23 | 30 | 24 | 26 | 8 % | 8 % | 68 | 80 | 18 % | ||||||||||||||||||
Bank loan provision/(benefit) for credit losses (2) | 81 | 45 | 14 | (32) | (19) | NM | NM | 188 | (37) | NM | ||||||||||||||||||
Losses on extinguishment of debt (3) | - | - | - | - | 98 | NM | NM | - | 98 | NM | ||||||||||||||||||
Acquisition and disposition-related expenses (4) | - | 7 | 2 | - | 7 | NM | NM | - | 9 | NM | ||||||||||||||||||
Reduction in workforce expenses (5) | - | 46 | - | - | - | - | - | - | - | - | ||||||||||||||||||
Other (1) | 55 | 76 | 70 | 69 | 81 | 47 % | 17 % | 167 | 220 | 32 % | ||||||||||||||||||
Total non-compensation expenses | 359 | 408 | 323 | 277 | 425 | 18 % | 53 % | 1,065 | 1,025 | (4)% | ||||||||||||||||||
Total non-interest expenses | 1,636 | 1,823 | 1,823 | 1,925 | 2,086 | 28 % | 8 % | 5,115 | 5,834 | 14 % | ||||||||||||||||||
Pre-tax income | 198 | 256 | 399 | 447 | 385 | 94 % | (14)% | 796 | 1,231 | 55 % | ||||||||||||||||||
Provision for income taxes | 26 | 47 | 87 | 92 | 78 | 200 % | (15)% | 187 | 257 | 37 % | ||||||||||||||||||
Net income | $ | 172 | $ | 209 | $ | 312 | $ | 355 | $ | 307 | 78 % | (14)% | $ | 609 | $ | 974 | 60 % | |||||||||||
Earnings per common share - basic (6) | ||||||||||||||||||||||||||||
$ | 1.25 | $ | 1.53 | $ | 2.27 | $ | 2.58 | $ | 2.24 | 79 % | (13)% | $ | 4.41 | $ | 7.09 | 61 % | ||||||||||||
Earnings per common share - diluted (6) | $ | 1.23 | $ | 1.50 | $ | 2.23 | $ | 2.51 | $ | 2.18 | 77 % | (13)% | $ | 4.33 | $ | 6.92 | 60 % | |||||||||||
Weighted-average common shares outstanding - | 137.1 | 136.9 | 136.8 | 137.8 | 137.2 | - | - | 137.9 | 137.2 | (1)% | ||||||||||||||||||
basic | ||||||||||||||||||||||||||||
Weighted-average common and common | ||||||||||||||||||||||||||||
139.4 | 139.6 | 139.7 | 141.2 | 141.1 | 1 % | - | 140.5 | 140.6 | - | |||||||||||||||||||
equivalent shares outstanding - diluted | ||||||||||||||||||||||||||||
Please refer to the footnotes at the end of this supplement for additional information.
2
RAYMOND JAMES FINANCIAL, INC. Consolidated Selected Key Metrics (Unaudited)
As of | |||||||||||||||
$ in millions, except per share amounts | June 30, | September 30, | December 31, | March 31, | June 30, | ||||||||||
2020 | 2020 | 2020 | 2021 | 2021 | |||||||||||
Total assets | $ | 44,682 | $ | 47,482 | $ | 53,657 | $ | 56,066 | $ | 57,161 | |||||
Total equity attributable to Raymond James Financial, Inc. | $ | 6,965 | $ | 7,114 | $ | 7,363 | $ | 7,592 | $ | 7,863 | |||||
Book value per share (7) | $ | 50.84 | $ | 52.08 | $ | 53.59 | $ | 55.34 | $ | 57.44 | |||||
Tangible book value per share (7) (8) | $ | 46.69 | $ | 47.94 | $ | 47.93 | $ | 49.42 | $ | 51.55 |
Capital ratios: | |||||
Tier 1 capital | 24.8 % | 24.2 % | 23.4 % | 23.6 % | 24.3 % |
Total capital | 26.0 % | 25.4 % | 24.6 % | 24.7 % | 25.5 % |
Tier 1 leverage | 14.5 % | 14.2 % | 12.9 % | 12.2 % | 12.6 % |
% change from
June 30, | March 31, | |
2020 | 2021 | |
28 % | 2 % | |
13 % | 4 % | |
13 % | 4 % | |
10 % | 4 % |
(9)
(9)
(9)
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, | % change | ||||||||||||||
2020 | 2020 | 2020 | 2021 | 2021 | 2020 | 2021 | 2020 | 2021 | ||||||||||||||||
Adjusted pre-tax income (8) | NA | $ | 309 | $ | 401 | NA | $ | 490 | 147 % | 10 % | NA | $ | 1,338 | 68 % | ||||||||||
Adjusted net income (8) | NA | $ | 249 | $ | 314 | NA | $ | 386 | 124 % | 9 % | NA | $ | 1,055 | 73 % | ||||||||||
Adjusted earnings per common share - basic (6) (8) | NA | $ | 1.82 | $ | 2.29 | NA | $ | 2.81 | 125 % | 9 % | NA | $ | 7.68 | 74 % | ||||||||||
Adjusted earnings per common share - diluted (6) (8) | NA | $ | 1.78 | $ | 2.24 | NA | $ | 2.74 | 123 % | 9 % | NA | $ | 7.50 | 73 % | ||||||||||
Return on equity (10) | 10.0 % | 11.9 % | 17.2 % | 19.0 % | 15.9 % | 11.9 % | 17.4 % | |||||||||||||||||
Adjusted return on equity (8) (10) | NA | 14.1 % | 17.3 % | NA | 19.9 % | NA | 18.7 % | |||||||||||||||||
Return on tangible common equity (8) (10) | 10.9 % | 12.9 % | 19.0 % | 21.2 % | 17.7 % | 13.1 % | 19.3 % | |||||||||||||||||
Adjusted return on tangible common equity (8) (10) | NA | 15.3 % | 19.1 % | NA | 22.2 % | NA | 20.8 % | |||||||||||||||||
Pre-tax margin (11) | 10.8 % | 12.3 % | 18.0 % | 18.8 % | 15.6 % | 13.5 % | 17.4 % | |||||||||||||||||
Adjusted pre-tax margin (8) (11) | NA | 14.9 % | 18.0 % | NA | 19.8 % | NA | 18.9 % | |||||||||||||||||
Total compensation ratio (12) | 69.6 % | 68.1 % | 67.5 % | 69.5 % | 67.2 % | 68.5 % | 68.1 % | |||||||||||||||||
Effective tax rate | 13.1 % | 18.4 % | 21.8 % | 20.6 % | 20.3 % | 23.5 % | 20.9 % |
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 | |||||||||||||||||||
June 30, | September 30, | December 31, | March 31, | June 30, | June 30, | March 31, | ||||||||||||||
2020 | 2020 | 2020 | 2021 | 2021 | 2020 | 2021 | ||||||||||||||
Client asset metrics ($ in billions): | ||||||||||||||||||||
Client assets under administration | $ | 876.9 | $ | 930.1 | $ | 1,024.8 | $ | 1,085.4 | $ | 1,165.0 | 33 % | 7 % | ||||||||
Private Client Group assets under administration | $ | 833.1 | $ | 883.3 | $ | 974.2 | $ | 1,028.1 | $ | 1,102.9 | 32 % | 7 % | ||||||||
Private Client Group assets in fee-based accounts | $ | 443.0 | $ | 475.3 | $ | 532.7 | $ | 567.6 | $ | 616.7 | 39 % | 9 % | ||||||||
Financial assets under management | $ | 145.4 | $ | 153.1 | $ | 169.6 | $ | 178.2 | $ | 191.0 | 31 % | 7 % | ||||||||
Clients' domestic cash sweep balances ($ in millions): | ||||||||||||||||||||
Raymond James Bank Deposit Program ("RJBDP"): (13) | ||||||||||||||||||||
Raymond James Bank | $ | 24,101 | $ | 25,599 | $ | 26,697 | $ | 28,174 | $ | 29,253 | 21 % | 4 % | ||||||||
Third-party banks | 24,661 | 25,998 | 26,142 | 25,110 | 25,080 | 2 % | - | |||||||||||||
Subtotal RJBDP | 48,762 | 51,597 | 52,839 | 53,284 | 54,333 | 11 % | 2 % | |||||||||||||
Client Interest Program | 3,157 | 3,999 | 8,769 | 9,517 | 8,610 | 173 % | (10)% | |||||||||||||
Total clients' domestic cash sweep balances | $ | 51,919 | $ | 55,596 | $ | 61,608 | $ | 62,801 | $ | 62,943 | 21 % | - | ||||||||
Three months ended | Nine months ended | |||||||||||||||||||
June 30, | September 30, | December 31, | March 31, | June 30, | June 30, | June 30, | ||||||||||||||
2020 | 2020 | 2020 | 2021 | 2021 | 2020 | 2021 | ||||||||||||||
Average yield on RJBDP - third-party banks (14) | 0.33 % | 0.33 % | 0.31 % | 0.30 % | 0.29 % | 0.97 % | 0.30 % | |||||||||||||
As of | % change from | |||||||||||||||||||
June 30, | September 30, | December 31, | March 31, | June 30, | June 30, | March 31, | ||||||||||||||
2020 | 2020 | 2020 | 2021 | 2021 | 2020 | 2021 | ||||||||||||||
Private Client Group financial advisors: | ||||||||||||||||||||
Employees | 3,379 | 3,404 | 3,387 | 3,375 | 3,423 | 1 % | 1 % | |||||||||||||
Independent contractors | 4,776 | 4,835 | 4,846 | 4,952 | 4,990 | 4 % | 1 % | |||||||||||||
Total advisors | 8,155 | 8,239 | 8,233 | 8,327 | 8,413 | 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 | Nine months ended | |||||||||||||||||||||||||
$ in millions | June 30, | September 30, | December 31, | March 31, | June 30, | June 30, | March 31, | June 30, | June 30, | % change | |||||||||||||||||
2020 | 2020 | 2020 | 2021 | 2021 | 2020 | 2021 | 2020 | 2021 | |||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||
Asset management and related | $ | 715 | $ | 832 | $ | 885 | $ | 979 | $ | 1,050 | 47 % | 7 % | $ | 2,330 | $ | 2,914 | 25 % | ||||||||||
administrative fees | |||||||||||||||||||||||||||
Brokerage revenues: | |||||||||||||||||||||||||||
Mutual and other fund products | 131 | 129 | 148 | 183 | 167 | 27 % | (9)% | 438 | 498 | 14 % | |||||||||||||||||
Insurance and annuity products | 88 | 109 | 98 | 109 | 113 | 28 % | 4 % | 288 | 320 | 11 % | |||||||||||||||||
Equities, ETFs, and fixed income | 100 | 95 | 107 | 121 | 110 | 10 % | (9)% | 324 | 338 | 4 % | |||||||||||||||||
products | |||||||||||||||||||||||||||
Total brokerage revenues | 319 | 333 | 353 | 413 | 390 | 22 % | (6)% | 1,050 | 1,156 | 10 % | |||||||||||||||||
Account and service fees: | |||||||||||||||||||||||||||
Mutual fund and annuity service | 82 | 88 | 94 | 99 | 105 | 28 % | 6 % | 260 | 298 | 15 % | |||||||||||||||||
fees | |||||||||||||||||||||||||||
RJBDP fees: (13) | |||||||||||||||||||||||||||
Third-party banks | 20 | 21 | 21 | 19 | 18 | (10)% | (5)% | 129 | 58 | (55)% | |||||||||||||||||
Raymond James Bank | 43 | 42 | 43 | 44 | 47 | 9 % | 7 % | 138 | 134 | (3)% | |||||||||||||||||
Client account and other fees | 32 | 33 | 32 | 42 | 39 | 22 % | (7)% | 96 | 113 | 18 % | |||||||||||||||||
Total account and service fees | 177 | 184 | 190 | 204 | 209 | 18 % | 2 % | 623 | 603 | (3)% | |||||||||||||||||
Investment banking | 7 | 12 | 6 | 16 | 11 | 57 % | (31)% | 29 | 33 | 14 % | |||||||||||||||||
Interest income | 31 | 30 | 30 | 30 | 31 | - | 3 % | 125 | 91 | (27)% | |||||||||||||||||
All other | 4 | 7 | 5 | 8 | 7 | 75 % | (13)% | 20 | 20 | - | |||||||||||||||||
Total revenues | 1,253 | 1,398 | 1,469 | 1,650 | 1,698 | 36 % | 3 % | 4,177 | 4,817 | 15 % | |||||||||||||||||
Interest expense | (4) | (4) | (2) | (3) | (2) | (50)% | (33)% | (19) | (7) | (63)% | |||||||||||||||||
Net revenues | 1,249 | 1,394 | 1,467 | 1,647 | 1,696 | 36 % | 3 % | 4,158 | 4,810 | 16 % | |||||||||||||||||
Non-interest expenses: | |||||||||||||||||||||||||||
Financial advisor compensation and | 783 | 873 | 931 | 1,040 | 1,082 | 38 % | 4 % | 2,555 | 3,053 | 19 % | |||||||||||||||||
benefits | |||||||||||||||||||||||||||
Administrative compensation and | 235 | 244 | 249 | 260 | 251 | 7 % | (3)% | 727 | 760 | 5 % | |||||||||||||||||
benefits | |||||||||||||||||||||||||||
Total compensation, commissions | 1,018 | 1,117 | 1,180 | 1,300 | 1,333 | 31 % | 3 % | 3,282 | 3,813 | 16 % | |||||||||||||||||
and benefits | |||||||||||||||||||||||||||
Non-compensation expenses | 140 | 152 | 147 | 155 | 168 | 20 % | 8 % | 462 | 470 | 2 % | |||||||||||||||||
Total non-interest expenses | 1,158 | 1,269 | 1,327 | 1,455 | 1,501 | 30 % | 3 % | 3,744 | 4,283 | 14 % | |||||||||||||||||
Pre-tax income | $ | 91 | $ | 125 | $ | 140 | $ | 192 | $ | 195 | 114 % | 2 % | $ | 414 | $ | 527 | 27 % | ||||||||||
Please refer to the footnotes at the end of this supplement for additional information.
5
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Raymond James Financial Inc. published this content on 28 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 July 2021 20:23:20 UTC.