Last month, BCS made a push into the private credit market. The company, along with AGL Credit Management, announced a cooperation agreement and the launch of a private credit investment platform, AGL Private Credit. Likewise, this February, GS entered into a partnership with Mubadala Investment, an Abu Dhabi sovereign wealth fund, to invest $1 billion in private credit deals in multiple Asia-Pacific markets. Raymond James (RJF) is set to enter into the lucrative private credit business. Through its Investm ...

PART I. FINANCIAL INFORMATION [ITEM 1. FINANCIAL STATEMENTS (Unaudited)](index=3&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS%20(Unaudited)) Presents the company's unaudited condensed consolidated financial statements and detailed explanatory notes [Condensed Consolidated Statements of Financial Condition (Unaudited)](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Financial%20Condition%20(Unaudited)) Condensed Consolidated Statements of Financial Condition (Unaudited) | Metric | March 31, 2024 ($ in millions) | September 30, 2023 ($ in millions) | Change ($ in millions) | | :--- | :--- | :--- | :--- | | Total Assets | 81,232 | 78,360 | 2,872 | | Total Liabilities | 70,253 | 68,173 | 2,080 | | Total Shareholders' Equity | 10,979 | 10,187 | 792 | [Condensed Consolidated Statements of Income and Comprehensive Income (Unaudited)](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20and%20Comprehensive%20Income%20(Unaudited)) Condensed Consolidated Statements of Income (Unaudited) - Three Months Ended March 31 | Metric | 2024 ($ in millions) | 2023 ($ in millions) | Change ($ in millions) | % Change | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | 3,638 | 3,157 | 481 | 15.2% | | Net Revenues | 3,118 | 2,873 | 245 | 8.5% | | Net Income available to common shareholders | 474 | 425 | 49 | 11.5% | | Earnings per common share – diluted | 2.22 | 1.93 | 0.29 | 15.0% | Condensed Consolidated Statements of Income (Unaudited) - Six Months Ended March 31 | Metric | 2024 ($ in millions) | 2023 ($ in millions) | Change ($ in millions) | % Change | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | 7,158 | 6,184 | 974 | 15.7% | | Net Revenues | 6,131 | 5,659 | 472 | 8.3% | | Net Income available to common shareholders | 971 | 932 | 39 | 4.2% | | Earnings per common share – diluted | 4.54 | 4.23 | 0.31 | 7.3% | [Condensed Consolidated Statements of Changes in Shareholders' Equity (Unaudited)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity%20(Unaudited)) Condensed Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - Six Months Ended March 31 | Metric | 2024 ($ in millions) | 2023 ($ in millions) | Change ($ in millions) | | :--- | :--- | :--- | :--- | | Total shareholders' equity (End of period) | 10,979 | 9,969 | 1,010 | | Retained earnings (End of period) | 10,988 | 9,590 | 1,398 | | Treasury stock (End of period) | (2,547) | (1,954) | (593) | [Condensed Consolidated Statements of Cash Flows (Unaudited)](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20(Unaudited)) Condensed Consolidated Statements of Cash Flows (Unaudited) - Six Months Ended March 31 | Metric | 2024 ($ in millions) | 2023 ($ in millions) | Change ($ in millions) | | :--- | :--- | :--- | :--- | | Net cash provided by/(used in) operating activities | 934 | (3,760) | 4,694 | | Net cash used in investing activities | (109) | (319) | 210 | | Net cash provided by financing activities | 266 | 2,522 | (2,256) | | Cash and cash equivalents, including segregated for regulatory purposes and restricted cash at end of period | 13,706 | 13,360 | 346 | [Notes to Condensed Consolidated Financial Statements (Unaudited)](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) [Note 1 - Organization and basis of presentation](index=8&type=section&id=NOTE%201%20%E2%80%93%20ORGANIZATION%20AND%20BASIS%20OF%20PRESENTATION) - Raymond James Financial, Inc (RJF) is a financial holding company engaged in **diverse financial services**, including investment management, M&A advisory, securities brokerage, and corporate/retail banking services[19](index=19&type=chunk) - The unaudited condensed consolidated financial statements include RJF and its controlled subsidiaries, including **Variable Interest Entities (VIEs)** where RJF is the primary beneficiary[20](index=20&type=chunk) - Interim financial statements are condensed and rely on **management estimates and assumptions**, which may differ from actual results[21](index=21&type=chunk)[22](index=22&type=chunk) [Note 2 - Update of significant accounting policies](index=9&type=section&id=NOTE%202%20%E2%80%93%20UPDATE%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) - **No significant changes** to accounting policies occurred during the three and six months ended March 31, 2024, other than the adoption of new or amended accounting guidance[24](index=24&type=chunk) - The company adopted ASU 2022-02 related to troubled debt restructurings (TDRs) and credit loss disclosures on October 1, 2023, which did **not have a material impact** on its financial position or results of operations[25](index=25&type=chunk) [Note 3 - Fair value](index=10&type=section&id=NOTE%203%20%E2%80%93%20FAIR%20VALUE) Assets at Fair Value on a Recurring Basis (March 31, 2024) | Level | Amount ($ in millions) | | :--- | :--- | | Level 1 | 1,545 | | Level 2 | 9,621 | | Level 3 | 33 | | **Total** | **11,096** | Liabilities at Fair Value on a Recurring Basis (March 31, 2024) | Level | Amount ($ in millions) | | :--- | :--- | | Level 1 | 385 | | Level 2 | 1,088 | | Level 3 | 0 | | **Total** | **1,388** | - As of March 31, 2024, **14% of assets and 2% of liabilities** were measured at fair value on a recurring basis, with Level 3 assets representing less than 1% of assets measured at fair value on a recurring basis[42](index=42&type=chunk) Private Equity Investments Measured at NAV (March 31, 2024) | Metric | Amount ($ in millions) | | :--- | :--- | | Recorded value | 99 | | Unfunded commitment | 26 | [Note 4 - Available-for-sale securities](index=16&type=section&id=NOTE%204%20%E2%80%93%20AVAILABLE-FOR-SALE%20SECURITIES) Available-for-Sale Securities (March 31, 2024 vs September 30, 2023) | Metric | March 31, 2024 ($ in millions) | September 30, 2023 ($ in millions) | | :--- | :--- | :--- | | Total Fair Value | 9,031 | 9,181 | | Total Gross Unrealized Gains | 3 | 0 | | Total Gross Unrealized Losses | (931) | (1,252) | | Total Cost Basis | 9,959 | 10,433 | - The available-for-sale securities portfolio primarily consists of **agency residential MBS, agency commercial MBS, agency CMOs, and U.S. Treasuries**[54](index=54&type=chunk) - As of March 31, 2024, the weighted-average life of the available-for-sale securities portfolio, after factoring in estimated prepayments, was approximately **3.9 years**, with a weighted-average yield of **2.25%**[57](index=57&type=chunk)[58](index=58&type=chunk) - **No sales** of available-for-sale securities occurred during the three and six months ended March 31, 2024 and 2023[63](index=63&type=chunk) [Note 5 - Derivative assets and derivative liabilities](index=19&type=section&id=NOTE%205%20%E2%80%93%20DERIVATIVE%20ASSETS%20AND%20DERIVATIVE%20LIABILITIES) Derivative Balances (March 31, 2024) | Metric | Derivative Assets ($ in millions) | Derivative Liabilities ($ in millions) | Notional Amount ($ in millions) | | :--- | :--- | :--- | :--- | | Derivatives not designated as hedging instruments | 403 | 447 | 20,791 | | Derivatives designated as hedging instruments | 5 | 3 | 2,498 | | **Total Gross Fair Value/Notional Amount** | **408** | **450** | **23,289** | | Net amounts presented on the Condensed Consolidated Statements of Financial Condition | 206 | 365 | N/A | Gains/(Losses) on Derivatives Not Designated as Hedging Instruments (Six Months Ended March 31) | Type | 2024 ($ in millions) | 2023 ($ in millions) | | :--- | :--- | :--- | | Interest rate | 4 | 11 | | Foreign exchange | (8) | (36) | | Other | 0 | (1) | - Certain derivative contracts contain credit-risk-related contingent features; the aggregate fair value of those in a liability position was **$2 million** as of March 31, 2024[74](index=74&type=chunk) [Note 6 - Collateralized agreements and financings](index=21&type=section&id=NOTE%206%20%E2%80%93%20COLLATERALIZED%20AGREEMENTS%20AND%20FINANCINGS) Collateralized Agreements and Financings (March 31, 2024) | Type | Gross Amounts ($ in millions) | | :--- | :--- | | **Collateralized Agreements:** || | Reverse repurchase agreements | 449 | | Securities borrowed | 278 | | **Total Collateralized Agreements** | **727** | | **Collateralized Financings:** || | Repurchase agreements | 371 | | Securities loaned | 584 | | **Total Collateralized Financings** | **955** | - Collateral received that was available to be delivered or repledged totaled **$3,464 million** as of March 31, 2024[84](index=84&type=chunk) Assets Pledged with FHLB or FRB (March 31, 2024) | Asset Type | Amount ($ in millions) | | :--- | :--- | | Available-for-sale securities | 3,796 | | Bank loans | 10,483 | | **Total Assets Pledged** | **14,279** | [Note 7 - Bank loans, net](index=23&type=section&id=NOTE%207%20%E2%80%93%20BANK%20LOANS,%20NET) Bank Loans, Net (March 31, 2024 vs September 30, 2023) | Metric | March 31, 2024 ($ in millions) | September 30, 2023 ($ in millions) | | :--- | :--- | :--- | | Total Loans Held for Investment | 44,424 | 44,104 | | Held for Sale Loans | 146 | 145 | | Allowance for Credit Losses (ACL) | (471) | (474) | | **Bank Loans, Net** | **44,099** | **43,775** | | ACL as a % of total loans held for investment | 1.06% | 1.07% | Changes in Allowance for Credit Losses (ACL) on Held for Investment Bank Loans (Six Months Ended March 31, 2024) | Metric | Amount ($ in millions) | | :--- | :--- | | Balance at beginning of period | 474 | | Provision for credit losses | 33 | | Net charge-offs | (36) | | Balance at end of period | 471 | | ACL by loan portfolio segment as a % of total ACL: C&I loans (41.7%), CRE loans (38.4%), Residential mortgage loans (14.2%) | N/A | Nonaccrual Loans (March 31, 2024) | Loan Portfolio Segment | Amount ($ in millions) | | :--- | :--- | | C&I loans | 66 | | CRE loans | 103 | | Residential mortgage loans | 0 | | **Total Nonaccrual Loans** | **169** | *Note: $103 million of these nonaccrual loans were current per their contractual terms* [Note 8 - Loans to financial advisors, net](index=30&type=section&id=NOTE%208%20%E2%80%93%20LOANS%20TO%20FINANCIAL%20ADVISORS,%20NET) Loans to Financial Advisors, Net (March 31, 2024 vs September 30, 2023) | Metric | March 31, 2024 ($ in millions) | September 30, 2023 ($ in millions) | | :--- | :--- | :--- | | Total Loans to Financial Advisors | 1,223 | 1,168 | | Allowance for Credit Losses | (33) | (32) | | **Loans to Financial Advisors, Net** | **1,190** | **1,136** | | ACL as a percent of total loans to financial advisors | 2.70% | 2.74% | - Loans to affiliated financial advisors were **predominantly current**, while loans to non-affiliated advisors were mostly past due for 180 days or more[122](index=122&type=chunk)[123](index=123&type=chunk) [Note 9 - Variable interest entities](index=30&type=section&id=NOTE%209%20%E2%80%93%20VARIABLE%20INTEREST%20ENTITIES) Consolidated VIEs (March 31, 2024) | Entity | Aggregate Assets ($ in millions) | Aggregate Liabilities ($ in millions) | | :--- | :--- | :--- | | LIHTC funds | 152 | 75 | | Restricted Stock Trust Fund | 28 | 28 | | **Total** | **180** | **103** | VIEs Where RJF Holds a Variable Interest but is Not the Primary Beneficiary (March 31, 2024) | Entity | Our Risk of Loss ($ in millions) | | :--- | :--- | | LIHTC funds | 67 | | Private Equity Interests | 99 | | Other | 3 | | **Total Risk of Loss** | **169** | [Note 10 - Goodwill and identifiable intangible assets, net](index=31&type=section&id=NOTE%2010%20-%20GOODWILL%20AND%20IDENTIFIABLE%20INTANGIBLE%20ASSETS,%20NET) - Goodwill and identifiable intangible assets, net, totaled **$1,894 million** as of March 31, 2024, slightly down from $1,907 million at September 30, 2023[8](index=8&type=chunk) - The company performed its latest annual impairment testing as of January 1, 2024, using qualitative assessments, and identified **no impairment**[134](index=134&type=chunk)[135](index=135&type=chunk) [Note 11 - Other assets](index=32&type=section&id=NOTE%2011%20-%20OTHER%20ASSETS) Components of Other Assets (March 31, 2024 vs September 30, 2023) | Component | March 31, 2024 ($ in millions) | September 30, 2023 ($ in millions) | | :--- | :--- | :--- | | Investments in company-owned life insurance policies | 1,312 | 1,110 | | Property and equipment, net | 596 | 561 | | Lease right-of-use ("ROU") assets | 538 | 560 | | Prepaid expenses | 258 | 209 | | **Total Other Assets** | **3,202** | **2,793** | [Note 12 - Leases](index=32&type=section&id=NOTE%2012%20%E2%80%93%20LEASES) Lease Balances (March 31, 2024 vs September 30, 2023) | Metric | March 31, 2024 ($ in millions) | September 30, 2023 ($ in millions) | | :--- | :--- | :--- | | ROU assets | 538 | 560 | | Lease liabilities | 528 | 539 | Lease Expense (Three Months Ended March 31) | Metric | 2024 ($ in millions) | 2023 ($ in millions) | | :--- | :--- | :--- | | Lease costs | 34 | 32 | | Variable lease costs | 10 | 8 | [Note 13 - Bank deposits](index=33&type=section&id=NOTE%2013%20%E2%80%93%20BANK%20DEPOSITS) Bank Deposits Summary (March 31, 2024 vs September 30, 2023) | Metric | March 31, 2024 Balance ($ in millions) | March 31, 2024 Weighted-average rate | September 30, 2023 Balance ($ in millions) | September 30, 2023 Weighted-average rate | | :--- | :--- | :--- | :--- | :--- | | Money market and savings accounts | 31,094 | 2.11% | 32,268 | 1.85% | | Interest-bearing demand deposits | 20,784 | 4.97% | 18,376 | 4.98% | | Certificates of deposit | 2,471 | 4.68% | 2,831 | 4.41% | | Non-interest-bearing demand deposits | 494 | — | 724 | — | | **Total Bank Deposits** | **54,843** | **3.32%** | **54,199** | **3.06%** | - FDIC-insured bank deposits totaled **$48,268 million**, representing **88% of total bank deposits** as of March 31, 2024[146](index=146&type=chunk) Total Interest Expense on Deposits (Three Months Ended March 31) | Metric | 2024 ($ in millions) | 2023 ($ in millions) | | :--- | :--- | :--- | | Money market and savings accounts | 159 | 128 | | Interest-bearing demand deposits | 252 | 62 | | Certificates of deposit | 30 | 16 | | **Total Interest Expense on Deposits** | **441** | **206** | [Note 14 - Other borrowings](index=34&type=section&id=NOTE%2014%20%E2%80%93%20OTHER%20BORROWINGS) Other Borrowings (March 31, 2024 vs September 30, 2023) | Metric | March 31, 2024 Balance ($ in millions) | September 30, 2023 Balance ($ in millions) | | :--- | :--- | :--- | | FHLB advances | 1,000 | 1,000 | | Subordinated notes | 99 | 100 | | Unsecured lines of credit | 200 | 0 | | **Total Other Borrowings** | **1,299** | **1,100** | - FHLB advances include floating-rate term (**5.65% weighted-average interest rate**) and fixed-rate (**4.77% weighted-average interest rate**) advances[152](index=152&type=chunk) - RJF and RJ&A have a **$750 million revolving credit facility** with no outstanding borrowings as of March 31, 2024[154](index=154&type=chunk) [Note 15 - Income taxes](index=35&type=section&id=NOTE%2015%20%E2%80%93%20INCOME%20TAXES) - The effective income tax rate for the six months ended March 31, 2024, was **21.4%**, a decrease from 23.7% for fiscal year 2023[158](index=158&type=chunk) - The decrease was primarily due to a larger tax benefit from **nontaxable valuation gains** on company-owned life insurance policies and lower nondeductible fines and penalties[158](index=158&type=chunk) - It is reasonably possible that the uncertain tax position liability balance may decrease by up to **$6 million** within the next 12 months due to the expiration of statutes of limitations[159](index=159&type=chunk) [Note 16 - Commitments, contingencies and guarantees](index=35&type=section&id=NOTE%2016%20%E2%80%93%20COMMITMENTS,%20CONTINGENCIES%20AND%20GUARANTEES) Lending Commitments and Other Credit-Related Off-Balance Sheet Financial Instruments (March 31, 2024) | Type | Amount ($ in millions) | | :--- | :--- | | SBL and other consumer lines of credit | 41,269 | | Commercial lines of credit | 4,482 | | Unfunded lending commitments | 749 | | Standby letters of credit | 125 | - Unfunded commitments for loans to financial advisors totaled **$27 million** as of March 31, 2024[167](index=167&type=chunk) - The company reached a settlement in principle with the SEC for a **$50 million civil monetary penalty** related to records preservation requirements, which was accrued as of March 31, 2024[174](index=174&type=chunk) - The estimated upper end of the range of reasonably possible aggregate loss for other legal and regulatory matters was approximately **$30 million** in excess of the aggregate accruals as of March 31, 2024[177](index=177&type=chunk) [Note 17 - Shareholders' equity](index=38&type=section&id=NOTE%2017%20%E2%80%93%20SHAREHOLDERS'%20EQUITY) Preferred Stock (March 31, 2024) | Metric | Amount | | :--- | :--- | | Shares outstanding | 80,500 | | Carrying value ($ in millions) | 79 | | Aggregate liquidation preference ($ in millions) | 81 | Common Stock Repurchases (Six Months Ended March 31, 2024) | Metric | Amount | | :--- | :--- | | Shares repurchased (in millions) | 3.1 | | Total cost ($ in millions) | 357 | | Average price per share | $114.96 | Common Stock Dividends Declared (Six Months Ended March 31) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Dividends per common share | $0.90 | $0.84 | | Dividend payout ratio | 19.8% | 19.9% | - Accumulated other comprehensive loss (AOCI) improved from **$(971) million** at September 30, 2023, to **$(724) million** at March 31, 2024[8](index=8&type=chunk)[190](index=190&type=chunk) [Note 18 - Revenues](index=41&type=section&id=NOTE%2018%20%E2%80%93%20REVENUES) Total Revenues by Segment (Three Months Ended March 31) | Segment | 2024 ($ in millions) | 2023 ($ in millions) | % Change | | :--- | :--- | :--- | :--- | | Private Client Group | 2,371 | 2,173 | 9% | | Capital Markets | 345 | 322 | 7% | | Asset Management | 252 | 216 | 17% | | Bank | 879 | 759 | 16% | | Other and intersegment eliminations | (209) | (313) | (33)% | | **Total Revenues** | **3,638** | **3,157** | **15%** | Total Revenues by Segment (Six Months Ended March 31) | Segment | 2024 ($ in millions) | 2023 ($ in millions) | % Change | | :--- | :--- | :--- | :--- | | Private Client Group | 4,623 | 4,258 | 9% | | Capital Markets | 705 | 640 | 10% | | Asset Management | 487 | 423 | 15% | | Bank | 1,766 | 1,452 | 22% | | Other and intersegment eliminations | (423) | (589) | (28)% | | **Total Revenues** | **7,158** | **6,184** | **16%** | - Net receivables related to contracts with customers were **$576 million** as of March 31, 2024, up from $519 million at September 30, 2023[199](index=199&type=chunk) [Note 19 - Interest income and interest expense](index=45&type=section&id=NOTE%2019%20%E2%80%93%20INTEREST%20INCOME%20AND%20INTEREST%20EXPENSE) Interest Income and Expense (Three Months Ended March 31) | Metric | 2024 ($ in millions) | 2023 ($ in millions) | | :--- | :--- | :--- | | Total Interest Income | 1,049 | 915 | | Total Interest Expense | 520 | 284 | | **Net Interest Income** | **529** | **631** | | Bank loan provision for credit losses | (21) | (28) | | **Net Interest Income after bank loan provision for credit losses** | **508** | **603** | Interest Income and Expense (Six Months Ended March 31) | Metric | 2024 ($ in millions) | 2023 ($ in millions) | | :--- | :--- | :--- | | Total Interest Income | 2,102 | 1,742 | | Total Interest Expense | 1,027 | 525 | | **Net Interest Income** | **1,075** | **1,217** | | Bank loan provision for credit losses | (33) | (42) | | **Net Interest Income after bank loan provision for credit losses** | **1,042** | **1,175** | [Note 20 - Share-based compensation](index=45&type=section&id=NOTE%2020%20%E2%80%93%20SHARE-BASED%20COMPENSATION) - During the six months ended March 31, 2024, approximately **1.8 million Restricted Stock Units (RSUs)** were granted with a weighted-average grant-date fair value of **$107.21**[204](index=204&type=chunk) Share-based Compensation Amortization (Three Months Ended March 31) | Metric | 2024 ($ in millions) | 2023 ($ in millions) | | :--- | :--- | :--- | | RSUs | 53 | 54 | | Restricted Stock Awards (RSAs) | 2 | 2 | - As of March 31, 2024, **$377 million** of total pre-tax compensation costs for RSUs and **$8 million** for RSAs were not yet recognized, expected to be recognized over weighted-average periods of three and two years, respectively[205](index=205&type=chunk)[206](index=206&type=chunk) [Note 21 - Regulatory capital requirements](index=46&type=section&id=NOTE%2021%20%E2%80%93%20REGULATORY%20CAPITAL%20REQUIREMENTS) - RJF, Raymond James Bank, and TriState Capital Bank were all categorized as **"well-capitalized"** as of March 31, 2024, exceeding minimum regulatory capital requirements[209](index=209&type=chunk) RJF Regulatory Capital Ratios (March 31, 2024) | Metric | Actual Ratio | Requirement for Capital Adequacy | To be Well-Capitalized | | :--- | :--- | :--- | :--- | | Tier 1 leverage | 12.3% | 4.0% | 5.0% | | Tier 1 capital | 21.9% | 6.0% | 8.0% | | CET1 | 21.8% | 4.5% | 6.5% | | Total capital | 23.3% | 8.0% | 10.0% | - RJF has elected the **AOCI opt-out** for regulatory capital purposes, excluding certain elements of Accumulated Other Comprehensive Income (AOCI) from capital calculations[210](index=210&type=chunk)[360](index=360&type=chunk) - Proposed U.S. banking rules, if enacted, could result in **higher capital requirements** and the elimination of the AOCI opt-out election, with a three-year transition period[210](index=210&type=chunk)[361](index=361&type=chunk) Raymond James & Associates, Inc. (RJ&A) Net Capital (March 31, 2024) | Metric | Amount ($ in millions) | | :--- | :--- | | Net capital | 993 | | Required net capital | (59) | | Excess net capital | 934 | [Note 22 - Earnings per share](index=48&type=section&id=NOTE%2022%20%E2%80%93%20EARNINGS%20PER%20SHARE) Earnings Per Common Share (Three Months Ended March 31) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Basic | $2.27 | $1.97 | | Diluted | $2.22 | $1.93 | Earnings Per Common Share (Six Months Ended March 31) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Basic | $4.65 | $4.33 | | Diluted | $4.54 | $4.23 | - Weighted-average common and common equivalent shares outstanding (diluted) for the three months ended March 31, 2024, were **213.4 million**, down from 219.2 million in the prior-year period[219](index=219&type=chunk) [Note 23 - Segment information](index=49&type=section&id=NOTE%2023%20%E2%80%93%20SEGMENT%20INFORMATION) Net Revenues by Segment (Three Months Ended March 31, 2024) | Segment | Amount ($ in millions) | | :--- | :--- | | Private Client Group | 2,341 | | Capital Markets | 321 | | Asset Management | 252 | | Bank | 424 | | Other | 17 | | Intersegment eliminations | (237) | | **Total Net Revenues** | **3,118** | Pre-tax Income/(Loss) by Segment (Three Months Ended March 31, 2024) | Segment | Amount ($ in millions) | | :--- | :--- | | Private Client Group | 444 | | Capital Markets | (17) | | Asset Management | 100 | | Bank | 75 | | Other | 7 | | **Total Pre-tax Income** | **609** | Net Revenues by Geographic Area (Three Months Ended March 31, 2024) | Geographic Area | Amount ($ in millions) | | :--- | :--- | | U.S. | 2,846 | | Canada | 155 | | Europe | 117 | | **Total Net Revenues** | **3,118** | [ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=51&type=section&id=ITEM%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Provides management's perspective on financial condition, operational results, and risk management strategies [Factors affecting "forward-looking statements"](index=52&type=section&id=Factors%20affecting%20%22forward-looking%20statements%22) - Forward-looking statements in this report concern future strategic objectives, business prospects, financial results, market conditions, acquisitions, litigation, regulatory developments, and general economic conditions[236](index=236&type=chunk) - These statements are **not guarantees** and involve risks, uncertainties, and assumptions, with actual results potentially differing materially from those expressed[236](index=236&type=chunk) - Investors are cautioned not to rely unduly on forward-looking statements and to carefully consider the risks described in the company's SEC filings[236](index=236&type=chunk) [Introduction](index=52&type=section&id=Introduction) - The MD&A supplements the condensed consolidated financial statements and accompanying notes[237](index=237&type=chunk) - The company operates as a financial holding company and bank holding company, with results **highly correlated to general economic conditions**, U.S. equity and fixed income markets, interest rates, market volatility, and credit trends[238](index=238&type=chunk) - Overall market conditions, economic, political, and regulatory trends, and industry competition are **unpredictable factors** beyond the company's control that affect financial decisions and business results[238](index=238&type=chunk) [Executive overview](index=52&type=section&id=Executive%20overview) Key Financial Highlights (Q2 FY2024 vs Q2 FY2023) | Metric | 2024 ($ in millions, except EPS) | 2023 ($ in millions, except EPS) | % Change | | :--- | :--- | :--- | :--- | | Net Revenues | 3,118 | 2,873 | 9% | | Pre-tax Income | 609 | 557 | 9% | | Net Income available to common shareholders | 474 | 425 | 12% | | Diluted EPS | 2.22 | 1.93 | 15% | | Annualized Return on Common Equity (ROCE) | 17.5% | 17.3% | 0.2 pp | | Annualized Return on Tangible Common Equity (ROTCE) | 21.0% | 21.3% | (0.3 pp) | Key Financial Highlights (H1 FY2024 vs H1 FY2023) | Metric | 2024 ($ in millions, except EPS) | 2023 ($ in millions, except EPS) | % Change | | :--- | :--- | :--- | :--- | | Net Revenues | 6,131 | 5,659 | 8% | | Pre-tax Income | 1,239 | 1,209 | 2% | | Net Income available to common shareholders | 971 | 932 | 4% | | Diluted EPS | 4.54 | 4.23 | 7% | | Annualized ROCE | 18.3% | 19.3% | (1.0 pp) | | Annualized ROTCE | 22.0% | 23.8% | (1.8 pp) | - Revenue growth was primarily driven by **higher asset management and related administrative fees**, brokerage revenues, and investment banking revenues[241](index=241&type=chunk)[247](index=247&type=chunk) - Combined net interest income and RJBDP fees declined due to a **significant increase in interest expense**, primarily from a shift in deposit mix at the Bank segment towards higher-cost ESP and certificates of deposit[241](index=241&type=chunk)[247](index=247&type=chunk) - Compensation, commissions and benefits expense **increased 12%** in Q2 FY2024 due to higher compensable revenues and annual salary increases[242](index=242&type=chunk) - The effective income tax rate **decreased to 21.8%** in Q2 FY2024, primarily due to a larger tax benefit from company-owned life insurance policies and lower nondeductible fines and penalties[243](index=243&type=chunk) - The company repurchased **1.70 million common shares for $207 million** in Q2 FY2024, with $1.14 billion remaining available under the Board's authorization as of the Form 10-Q filing date[244](index=244&type=chunk) [Reconciliation of non-GAAP financial measures to GAAP financial measures](index=55&type=section&id=Reconciliation%20of%20non-GAAP%20financial%20measures%20to%20GAAP%20financial%20measures) - The company utilizes non-GAAP financial measures to provide useful information to management and investors by **excluding certain material items** not indicative of core operating results, facilitating comparison of current- and prior-period results[251](index=251&type=chunk) Adjusted Net Income Available to Common Shareholders (Q2 FY2024 vs Q2 FY2023) | Metric | 2024 ($ in millions) | 2023 ($ in millions) | % Change | | :--- | :--- | :--- | :--- | | Net income available to common shareholders (GAAP) | 474 | 425 | 11.5% | | Total non-GAAP adjustments, net of tax | 20 | 21 | (4.8)% | | **Adjusted net income available to common shareholders** | **494** | **446** | **10.8%** | Adjusted Diluted Earnings Per Common Share (Q2 FY2024 vs Q2 FY2023) | Metric | 2024 | 2023 | % Change | | :--- | :--- | :--- | :--- | | Diluted earnings per common share (GAAP) | $2.22 | $1.93 | 15.0% | | Total non-GAAP adjustments, net of tax (per share) | $0.09 | $0.10 | (10.0)% | | **Adjusted diluted earnings per common share** | **$2.31** | **$2.03** | **13.8%** | Adjusted Return on Common Equity (ROCE) and Tangible Common Equity (ROTCE) (Q2 FY2024 vs Q2 FY2023) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Return on common equity (GAAP) | 17.5% | 17.3% | | Adjusted return on common equity | 18.3% | 18.2% | | Return on tangible common equity (GAAP) | 21.0% | 21.3% | | Adjusted return on tangible common equity | 21.8% | 22.3% | [Net interest analysis](index=58&type=section&id=Net%20interest%20analysis) - The Fed funds target rate increased from 3.00%-3.25% at September 30, 2022, to **5.25%-5.50%** at March 31, 2024, impacting the company's interest-sensitive assets and liabilities[258](index=258&type=chunk) - Combined net interest income and RJBDP fees from third-party banks declined in Q2 and H1 FY2024 due to a **significant increase in interest expense**, primarily from a shift to higher-cost deposits (ESP, CDs) in the Bank segment[260](index=260&type=chunk) Firmwide Net Interest Income and Margin (Q2 FY2024 vs Q2 FY2023) | Metric | 2024 ($ in millions) | 2023 ($ in millions) | Change ($ in millions) | | :--- | :--- | :--- | :--- | | Firmwide Net Interest Income | 529 | 631 | (102) | | Firmwide Net Interest Margin | 2.91% | 3.59% | (0.68 pp) | Firmwide Net Interest Income and Margin (H1 FY2024 vs H1 FY2023) | Metric | 2024 ($ in millions) | 2023 ($ in millions) | Change ($ in millions) | | :--- | :--- | :--- | :--- | | Firmwide Net Interest Income | 1,075 | 1,217 | (142) | | Firmwide Net Interest Margin | 2.94% | 3.38% | (0.44 pp) | [Results of operations](index=63&type=section&id=Results%20of%20operations) [Private Client Group](index=63&type=section&id=Private%20Client%20Group) PCG Operating Results (Q2 FY2024 vs Q2 FY2023) | Metric | 2024 ($ in millions) | 2023 ($ in millions) | % Change | | :--- | :--- | :--- | :--- | | Net Revenues | 2,341 | 2,144 | 9% | | Pre-tax Income | 444 | 441 | 1% | PCG Operating Results (H1 FY2024 vs H1 FY2023) | Metric | 2024 ($ in millions) | 2023 ($ in millions) | % Change | | :--- | :--- | :--- | :--- | | Net Revenues | 4,567 | 4,207 | 9% | | Pre-tax Income | 883 | 875 | 1% | - Asset management and related administrative fees **increased 16% in Q2 FY2024 and 15% in H1 FY2024**, driven by higher assets in fee-based accounts due to market appreciation and advisor recruiting[292](index=292&type=chunk)[297](index=297&type=chunk) - Brokerage revenues **increased 12% in Q2 FY2024 and 11% in H1 FY2024**, primarily due to higher client activity and asset values[293](index=293&type=chunk)[298](index=298&type=chunk) - Account and service fees **decreased 5% in Q2 FY2024 and 4% in H1 FY2024**, mainly due to lower RJBDP fees from the Bank segment, partially offset by increased fees from third-party banks and mutual fund service fees[294](index=294&type=chunk)[299](index=299&type=chunk) PCG Key Metrics (March 31, 2024 vs March 31, 2023) | Metric | March 31, 2024 | March 31, 2023 | % Change | | :--- | :--- | :--- | :--- | | Assets under administration (AUA) ($ in billions) | 1,388.8 | 1,114.3 | 24.6% | | Assets in fee-based accounts ($ in billions) | 798.8 | 633.1 | 26.2% | | Total advisors | 8,761 | 8,726 | 0.4% | | Total clients' domestic cash sweep and ESP balances ($ in millions) | 58,217 | 52,221 | 11.5% | [Capital Markets](index=67&type=section&id=Capital%20Markets) Capital Markets Operating Results (Q2 FY2024 vs Q2 FY2023) | Metric | 2024 ($ in millions) | 2023 ($ in millions) | % Change | | :--- | :--- | :--- | :--- | | Net Revenues | 321 | 302 | 6% | | Pre-tax Loss | (17) | (34) | 50% (reduced loss) | Capital Markets Operating Results (H1 FY2024 vs H1 FY2023) | Metric | 2024 ($ in millions) | 2023 ($ in millions) | % Change | | :--- | :--- | :--- | :--- | | Net Revenues | 659 | 597 | 10% | | Pre-tax Loss | (14) | (50) | 72% (reduced loss) | - Investment banking revenues **increased 18% in Q2 FY2024 and 23% in H1 FY2024**, primarily due to improved merger & acquisition and advisory revenues and higher debt underwriting revenues[306](index=306&type=chunk)[309](index=309&type=chunk) - Brokerage revenues **decreased 6% in Q2 FY2024** due to lower fixed income brokerage revenues, primarily from lower interest rate volatility[307](index=307&type=chunk) - Non-compensation expenses **decreased 7% in Q2 FY2024 and 4% in H1 FY2024**, mainly due to lower provisions for legal and regulatory matters and legal fee expenses[308](index=308&type=chunk)[310](index=310&type=chunk) [Asset Management](index=68&type=section&id=Asset%20Management) Asset Management Operating Results (Q2 FY2024 vs Q2 FY2023) | Metric | 2024 ($ in millions) | 2023 ($ in millions) | % Change | | :--- | :--- | :--- | :--- | | Net Revenues | 252 | 216 | 17% | | Pre-tax Income | 100 | 82 | 22% | Asset Management Operating Results (H1 FY2024 vs H1 FY2023) | Metric | 2024 ($ in millions) | 2023 ($ in millions) | % Change | | :--- | :--- | :--- | :--- | | Net Revenues | 487 | 423 | 15% | | Pre-tax Income | 193 | 162 | 19% | - Asset management and related administrative fees **increased 17% in Q2 FY2024 and 16% in H1 FY2024**, driven by higher beginning balances of financial assets under management (AUM) and assets in non-discretionary asset-based programs due to market appreciation[327](index=327&type=chunk)[330](index=330&type=chunk) Financial Assets Under Management (March 31, 2024 vs March 31, 2023) | Metric | March 31, 2024 ($ in billions) | March 31, 2023 ($ in billions) | % Change | | :--- | :--- | :--- | :--- | | AMS | 165.7 | 136.5 | 21.4% | | RJIM | 74.4 | 69.4 | 7.2% | | **Total Financial Assets Under Management** | **226.8** | **194.4** | **16.7%** | - Net market appreciation in asset values contributed **$30.2 billion** to financial assets under management during the six months ended March 31, 2024[318](index=318&type=chunk) - Non-compensation expenses **increased 15% in Q2 FY2024 and 13% in H1 FY2024**, largely due to higher investment sub-advisory fees[328](index=328&type=chunk)[331](index=331&type=chunk) [Bank](index=71&type=section&id=Bank) Bank Operating Results (Q2 FY2024 vs Q2 FY2023) | Metric | 2024 ($ in millions) | 2023 ($ in millions) | % Change | | :--- | :--- | :--- | :--- | | Net Revenues | 424 | 540 | (21)% | | Pre-tax Income | 75 | 91 | (18)% | Bank Operating Results (H1 FY2024 vs H1 FY2023) | Metric | 2024 ($ in millions) | 2023 ($ in millions) | % Change | | :--- | :--- | :--- | :--- | | Net Revenues | 865 | 1,048 | (17)% | | Pre-tax Income | 167 | 227 | (26)% | - Net interest income **decreased 22% in Q2 FY2024 and 18% in H1 FY2024**, primarily due to increased interest expense from a higher-cost deposit mix (ESP replacing lower-cost RJBDP balances)[335](index=335&type=chunk)[340](index=340&type=chunk) - Bank segment net interest margin **decreased to 2.66%** in Q2 FY2024 (from 3.63%) and **2.70%** in H1 FY2024 (from 3.51%)[335](index=335&type=chunk)[340](index=340&type=chunk) - Bank loan provision for credit losses was **$21 million in Q2 FY2024 (down 25%)** and **$33 million in H1 FY2024 (down 21%)**, reflecting an improved economic outlook and net loan payments, partially offset by specific reserves and loan downgrades[336](index=336&type=chunk)[341](index=341&type=chunk) - Non-compensation expenses, excluding the bank loan provision for credit losses, **decreased 25% in Q2 FY2024 and 17% in H1 FY2024**, mainly due to lower RJBDP fees paid to PCG, partially offset by increased expenses related to deposits and an $11 million FDIC special assessment in H1 FY2024[337](index=337&type=chunk)[342](index=342&type=chunk) [Other](index=74&type=section&id=Other) Other Segment Operating Results (Q2 FY2024 vs Q2 FY2023) | Metric | 2024 ($ in millions) | 2023 ($ in millions) | Change ($ in millions) | | :--- | :--- | :--- | :--- | | Pre-tax Income/(Loss) | 7 | (23) | 30 | Other Segment Operating Results (H1 FY2024 vs H1 FY2023) | Metric | 2024 ($ in millions) | 2023 ($ in millions) | Change ($ in millions) | | :--- | :--- | :--- | :--- | | Pre-tax Income/(Loss) | 10 | (5) | 15 | - Net revenues **increased $7 million in Q2 FY2024 and $24 million in H1 FY2024**, primarily due to higher interest income on corporate cash balances resulting from increased short-term interest rates[345](index=345&type=chunk)[347](index=347&type=chunk) - Non-interest expenses **decreased $23 million in Q2 FY2024**, primarily due to a net legal and regulatory reserve release[346](index=346&type=chunk) - Non-interest expenses **increased $9 million in H1 FY2024**, due to a prior-year insurance settlement and higher compensation expenses, partially offset by the current-year net legal and regulatory reserve release[348](index=348&type=chunk) [Statement of financial condition analysis](index=75&type=section&id=Statement%20of%20financial%20condition%20analysis) - Total assets **increased by $2.87 billion (4%) to $81.23 billion** as of March 31, 2024, compared to September 30, 2023[350](index=350&type=chunk) - Key asset increases included **cash and cash equivalents (+$688M)**, assets segregated for regulatory purposes (+$470M), other assets (+$409M, partially due to company-owned life insurance policies), other receivables (+$391M), bank loans, net (+$324M), and collateralized agreements (+$309M)[350](index=350&type=chunk) - Total liabilities **increased by $2.08 billion (3%) to $70.25 billion** as of March 31, 2024, compared to September 30, 2023[351](index=351&type=chunk) - Key liability increases included **bank deposits (+$644M**, driven by ESP and interest-bearing demand deposits), collateralized financings (+$618M), and brokerage client payables (+$591M)[351](index=351&type=chunk) [Liquidity and capital resources](index=76&type=section&id=Liquidity%20and%20capital%20resources) - The company prioritizes liquidity management to ensure **adequate funding** across various economic and market environments, maintaining higher liquidity levels during stress[353](index=353&type=chunk) - **Common equity** is the primary component of the capital structure, providing loss absorption and discretion over capital actions[358](index=358&type=chunk) - RJF is subject to the Fed's capital rules, requiring minimum leverage, Tier 1, CET1, and Total capital ratios, and has elected the **AOCI opt-out** for regulatory capital purposes[359](index=359&type=chunk)[360](index=360&type=chunk) - Proposed U.S. banking rules could **increase capital requirements** and eliminate the AOCI opt-out election, with a three-year transition period[361](index=361&type=chunk) - RJF corporate cash was approximately **$2.03 billion** as of March 31, 2024[366](index=366&type=chunk) - The company had **$1 billion in FHLB borrowings** outstanding and **$9.52 billion in immediate credit available** from the FHLB as of March 31, 2024[381](index=381&type=chunk)[382](index=382&type=chunk) - RJF and RJ&A have a **$750 million committed unsecured Credit Facility**, with no outstanding borrowings as of March 31, 2024[376](index=376&type=chunk) - Issuer and senior long-term debt credit ratings are **A- (Fitch), A3 (Moody's), and A (S&P)**, all with a Stable outlook as of March 2024/February 2024[389](index=389&type=chunk) - Company-owned life insurance policies had a cash surrender value of **$1.09 billion**, with **$984 million readily borrowable**, as of March 31, 2024[391](index=391&type=chunk) [Regulatory](index=82&type=section&id=Regulatory) - All active regulated domestic and international subsidiaries, including RJF, Raymond James Bank, and TriState Capital Bank, were in compliance with and exceeded all applicable regulatory capital requirements, categorized as **"well-capitalized"** as of March 31, 2024[395](index=395&type=chunk) - The SEC's final rule on **climate-related disclosures** (effective FY2026/2027) is currently stayed pending judicial review, with the company evaluating its impact[396](index=396&type=chunk) - The DOL's final rule expanding the **"investment advice fiduciary" definition** (effective September 23, 2024) may require alterations to business practices and additional costs[397](index=397&type=chunk) - The FTC's final rule prohibiting most new **non-competition agreements** (effective 120 days after Federal Register publication) is being evaluated for its impact on business practices and compensation expense recognition[398](index=398&type=chunk) [Critical accounting estimates](index=83&type=section&id=Critical%20accounting%20estimates) - The company's financial statements rely on critical accounting estimates, particularly for **loss provisions** related to legal and regulatory matters and the **allowance for credit losses (ACL)** on bank loans, which involve significant management judgment and complexity[400](index=400&type=chunk)[401](index=401&type=chunk)[402](index=402&type=chunk) - ACL estimates are based on credit risk models incorporating historical data, current conditions, and reasonable/supportable economic forecasts, with **potential for volatility**[402](index=402&type=chunk)[403](index=403&type=chunk) - A hypothetical downside economic scenario could result in an increase of approximately **$210 million** in the quantitative portion of the ACL on bank loans as of March 31, 2024[404](index=404&type=chunk) [Accounting standards update](index=85&type=section&id=Accounting%20standards%20update) - The FASB issued ASU 2023-07 (**segment reporting disclosures**), effective for annual periods beginning in fiscal 2025 and interim periods beginning in fiscal Q1 2026, which the company is evaluating[408](index=408&type=chunk) - The FASB issued ASU 2023-09 (**income tax disclosures**), effective for annual periods beginning in fiscal 2026, which the company is also evaluating[409](index=409&type=chunk) [Risk management](index=85&type=section&id=Risk%20management) - The company employs a multi-faceted **Enterprise Risk Management (ERM) program** to assess and review aggregate risks, including market, credit, liquidity, operational, model, and compliance risks[411](index=411&type=chunk)[412](index=412&type=chunk) - Risk governance involves the Board of Directors (Risk and Audit Committees) and a **three-line risk management model** (businesses, Compliance/Risk Management, Internal Audit)[413](index=413&type=chunk) [Market risk](index=86&type=section&id=Market%20risk) - The company is exposed to market risk primarily through broker-dealer trading operations and banking operations, related to **interest rates, equity prices, and foreign exchange rates**[414](index=414&type=chunk) - Interest rate risk in trading is actively managed through **hedging strategies** (e.g, U.S. Treasuries, derivatives) and position limits, with Value-at-Risk (VaR) monitored daily[417](index=417&type=chunk)[418](index=418&type=chunk)[419](index=419&type=chunk) Estimated Net Interest Income Sensitivity to Instantaneous Rate Shifts (12-month period, March 31, 2024) | Instantaneous Change in Rate (bps) | Net Interest Income ($ in millions) | Projected Change in Net Interest Income | | :--- | :--- | :--- | | +200 | $1,932 | 13% | | +100 | $1,853 | 8% | | 0 | $1,711 | —% | | -100 | $1,596 | (7)% | | -200 | $1,580 | (8)% | - As of March 31, 2024, the available-for-sale securities portfolio had a fair value of **$9.03 billion**, a weighted-average yield of 2.25%, a weighted-average life of 3.9 years, and an effective duration of approximately **3.30**[432](index=432&type=chunk) - Foreign exchange risk arises from investments in foreign subsidiaries (e.g, Canadian subsidiary with **CAD 1.35 billion in loans**) and transactions denominated in non-USD currencies[439](index=439&type=chunk) [Credit risk](index=90&type=section&id=Credit%20risk) - Credit risk is the risk of loss from adverse changes in a borrower's, issuer's, or counterparty's ability to meet financial obligations, managed through **exposure monitoring, credit reviews, and collateral**[444](index=444&type=chunk)[446](index=446&type=chunk) - The bank loan portfolio's credit risk management includes **well-defined credit policies**, uniform underwriting criteria, and ongoing risk monitoring and review processes[450](index=450&type=chunk) Net Loan (Charge-offs)/Recoveries (Six Months Ended March 31) | Loan Portfolio Segment | 2024 Amount ($ in millions) | 2024 Annualized % of Avg. Outstanding Loans | 2023 Amount ($ in millions) | 2023 Annualized % of Avg. Outstanding Loans | | :--- | :--- | :--- | :--- | :--- | | C&I loans | (29) | 0.56% | (24) | 0.43% | | CRE loans | (7) | 0.19% | 2 | 0.06% | | **Total loans held for sale and investment** | **(36)** | **0.16%** | **(22)** | **0.10%** | Nonperforming Loans and Assets (March 31, 2024 vs September 30, 2023) | Metric | March 31, 2024 ($ in millions) | September 30, 2023 ($ in millions) | | :--- | :--- | :--- | | Nonperforming loans | 187 | 128 | | Nonperforming assets | 187 | 128 | | Nonperforming loans as a % of total loans held for sale and investment | 0.42% | 0.29% | | Allowance for credit losses as a % of nonperforming loans | 252% | 370% | | Nonperforming assets as a % of Bank segment total assets | 0.31% | 0.21% | - Delinquent residential mortgage loans (two or more payments past due or in foreclosure) totaled **$7 million (0.08% of outstanding balances)** as of March 31, 2024, which compares favorably to the national average of 1.94%[462](index=462&type=chunk) - Office real estate loans within the CRE portfolio face increased risks from higher interest rates, tenant lease renewal uncertainty, and refinancing risks; **11% were criticized and 5% nonperforming** as of March 31, 2024[471](index=471&type=chunk)[472](index=472&type=chunk) [Liquidity risk](index=94&type=section&id=Liquidity%20risk) - Information regarding liquidity risk management is provided in the **"Liquidity and capital resources"** section of this Form 10-Q[474](index=474&type=chunk) [Operational risk](index=94&type=section&id=Operational%20risk) - Operational risk includes losses from business disruptions, transaction errors, technology deficiencies, and control breaches, such as **cybersecurity incidents**[475](index=475&type=chunk) - The transition to a **T+1 settlement timeframe** for securities transactions (effective late May 2024) increases operational risk but is not expected to have a material impact due to preparation efforts[476](index=476&type=chunk) - Periods of severe market volatility can lead to operational challenges and potential losses from **trade errors, failed settlements, or system interruptions**[477](index=477&type=chunk) [Model risk](index=95&type=section&id=Model%20risk) - Model risk refers to unintended business outcomes arising from the design, implementation, or use of models, managed through the company's **Model Risk Management function**[480](index=480&type=chunk) [Compliance risk](index=95&type=section&id=Compliance%20risk) - Compliance risk is the risk of legal or regulatory sanctions, financial loss, or reputational damage from **failure to comply** with applicable laws, external standards, or internal requirements[481](index=481&type=chunk) [ITEM 3. Quantitative and Qualitative Disclosures about Market Risk](index=95&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) Refers to the MD&A section for detailed quantitative and qualitative disclosures about market risk - Quantitative and qualitative disclosures about market risk are provided in **"Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations - Risk management"** of this Form 10-Q[482](index=482&type=chunk) [ITEM 4. Controls and Procedures](index=95&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Confirms the effectiveness of disclosure controls and procedures with no material changes to internal controls - Disclosure controls and procedures were evaluated under the supervision and with the participation of management, including the CEO and CFO, and concluded to be **effective** as of March 31, 2024[484](index=484&type=chunk) - There were **no changes** during the three months ended March 31, 2024, that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[485](index=485&type=chunk) PART II. OTHER INFORMATION [ITEM 1. Legal Proceedings](index=96&type=section&id=ITEM%201.%20Legal%20Proceedings) States there are no legal proceedings to report - There are **no legal proceedings** to report[487](index=487&type=chunk) [ITEM 1A. Risk Factors](index=96&type=section&id=ITEM%201A.%20Risk%20Factors) Indicates that risk factor disclosures are not applicable for this quarterly report - Risk Factors are **not applicable** for this quarterly report[488](index=488&type=chunk) [ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=96&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details common stock repurchases under the Board's authorization and notes no unregistered equity sales - The company did not have any sales of **unregistered securities** for the six months ended March 31, 2024[489](index=489&type=chunk) Common Stock Purchases (Six Months Ended March 31, 2024) | Metric | Amount | | :--- | :--- | | Total number of shares purchased | 3,227,011 | | Average price per share | $114.66 | | Number of shares purchased as part of publicly announced plans or programs | 3,103,281 | | Approximate dollar value remaining under plans or programs (at March 31, 2024) | $1,187 million | - In November 2023, the Board of Directors authorized common stock repurchases of up to **$1.5 billion**, replacing the previous authorization[490](index=490&type=chunk) - Total shares purchased also include shares for the Restricted Stock Trust Fund and shares surrendered by employees for option exercises or withholding taxes, which **do not utilize the public repurchase authorization**[491](index=491&type=chunk)[492](index=492&type=chunk) [ITEM 3. Defaults Upon Senior Securities](index=96&type=section&id=ITEM%203.%20Defaults%20Upon%20Senior%20Securities) States there are no defaults upon senior securities to report - There are **no defaults** upon senior securities to report[493](index=493&type=chunk) [ITEM 4. Mine Safety Disclosures](index=96&type=section&id=ITEM%204.%20Mine%20Safety%20Disclosures) States that mine safety disclosures are not applicable - Mine safety disclosures are **not applicable**[494](index=494&type=chunk) [ITEM 5. Other Information](index=97&type=section&id=ITEM%205.%20Other%20Information) Reports no adoption or termination of Rule 10b5-1 trading arrangements by directors or officers - None of the directors or officers adopted or terminated a **Rule 10b5-1 trading arrangement** or a non-Rule 10b5-1 trading arrangement during the three months ended March 31, 2024[495](index=495&type=chunk) [ITEM 6. Exhibits](index=97&type=section&id=ITEM%206.%20Exhibits) Lists all exhibits filed with the Form 10-Q, including certifications and XBRL-related documents - Exhibits include Amended and Restated Articles of Incorporation, By-Laws, Certifications (pursuant to Sarbanes-Oxley Act Sections 302 and 906), and **XBRL Instance, Schema, Calculation, Definition, Label, and Presentation Linkbase Documents**[496](index=496&type=chunk) [Signatures](index=98&type=section&id=Signatures) Confirms the report's authorization by the CEO and CFO on May 7, 2024 - The report was signed by **Paul C. Reilly, Chair and Chief Executive Officer**, and **Paul M. Shoukry, President and Chief Financial Officer**, on May 7, 2024[498](index=498&type=chunk)

Financial Performance Highlights - Raymond James Financial reported record net revenues of $3.118 billion for Fiscal 2Q24, a 9% increase compared to Fiscal 2Q23 and a 3% increase compared to Fiscal 1Q24[26, 31] - The company's net income available to common shareholders was $474 million, up 12% compared to Fiscal 2Q23, but down 5% compared to Fiscal 1Q24[31] - Adjusted net income available to common shareholders was $494 million, an 11% increase compared to Fiscal 2Q23, but a 4% decrease compared to Fiscal 1Q24[31] - Diluted earnings per common share were $2.22, a 15% increase compared to Fiscal 2Q23, but a 4% decrease compared to Fiscal 1Q24[31] - Adjusted diluted earnings per common share were $2.31, a 14% increase compared to Fiscal 2Q23, but a 4% decrease compared to Fiscal 1Q24[31] Segment Results - The Private Client Group (PCG) achieved record net revenues of $2.341 billion, a 9% increase compared to Fiscal 2Q23 and a 5% increase compared to Fiscal 1Q24[26] - Asset Management also achieved record net revenues of $252 million, a 17% increase compared to Fiscal 2Q23 and a 7% increase compared to Fiscal 1Q24[26] - The Bank segment reported net revenues of $424 million, a 21% decrease compared to Fiscal 2Q23 and a 4% decrease compared to Fiscal 1Q24[26] Balance Sheet and Capital Management - Total assets reached $81.232 billion, a 3% increase compared to Fiscal 2Q23 and a 1% increase compared to Fiscal 1Q24[14] - RJF corporate cash was $2.030 billion, an 11% increase compared to Fiscal 2Q23 and a 3% decrease compared to Fiscal 1Q24[14] - Total common equity attributable to RJF was $10.905 billion, a 10% increase compared to Fiscal 2Q23 and a 2% increase compared to Fiscal 1Q24[14] - The company repurchased 2.03 million shares from January 1, 2024, through April 19, 2024, for $250 million, at an average price of $123.12 per share[9]

Financial Data and Key Metrics Changes - The company reported record quarterly net revenues of $3.12 billion, an increase of 9% year-over-year, primarily due to higher asset-based revenues [11][28] - Annualized return on common equity was 17.5%, and annualized adjusted returns on tangible common equity were 21.8% [12] - Quarterly net income available to common shareholders was $474 million, or $2.22 per diluted share, with adjusted net income of $494 million, or $2.31 per diluted share [51] Business Line Data and Key Metrics Changes - The Private Client Group generated record quarterly net revenues of $2.34 billion and pre-tax income of $444 million, driven by higher asset management fees [24] - The Capital Markets segment generated quarterly net revenues of $321 million but reported a pre-tax loss of $17 million, with revenues growing 6% year-over-year due to higher M&A and debt underwriting revenues [15] - The Asset Management segment generated pre-tax income of $100 million on record net revenues of $252 million, attributed to higher financial assets under management [26] Market Data and Key Metrics Changes - Total client assets under administration increased 6% sequentially to $1.45 trillion, with domestic net new assets of $9.6 billion, representing a 3.2% annualized growth rate [22] - Domestic net new assets worth $31.2 billion year-to-date, reflecting a 5.7% annualized growth rate on beginning-of-period domestic Private Client Group assets [14] Company Strategy and Development Direction - The company is focused on maintaining a strong competitive position across all business segments and is optimistic about long-term growth despite current economic uncertainties [38][42] - There is a commitment to invest in technology and advisor support to enhance productivity and retention, which is seen as critical for future growth [121][128] - The company is actively looking for M&A opportunities that align with its strategic goals, particularly in North America and the UK [90] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position to drive growth across all businesses despite economic challenges [38] - The Capital Markets segment is expected to see a gradual recovery influenced by market conditions, with a healthy M&A pipeline [39] - The Bank segment aims to fortify its balance sheet and prudently grow assets to meet client demand, anticipating a recovery in loan growth [41] Other Important Information - The company repurchased 1.7 million shares for $207 million during the quarter, with approximately $1.14 billion remaining under the board's approved common stock repurchase authorization [35] - The effective tax rate for the quarter was 21.8%, with an expectation of 24% for future quarters [65] Q&A Session Summary Question: Insights on cash sweep balances post-tax season - Management noted that cash sweep balances were down $1.3 billion in April, but they are hopeful that balances are stabilizing [79] Question: Update on the Department of Labor rule and its implications - Management indicated that the finalized rule appears manageable and does not seem overly problematic for the company [81][82] Question: Trends in M&A and advisor movements - Management highlighted a healthy recruiting pipeline and noted that advisor movements are competitive but favorable for the company [84][136] Question: Outlook on loan growth and demand - Management expressed optimism about future loan growth, indicating that demand is building up as clients adjust to current rates [91][135] Question: Incremental margins in the Capital Markets business - Management stated that there is significant upside potential for margins as market conditions improve [105]

[Executive Summary & Overall Financial Performance](index=1&type=section&id=Executive%20Summary%20%26%20Overall%20Financial%20Performance) [Fiscal Second Quarter 2024 Highlights](index=1&type=section&id=Fiscal%20Second%20Quarter%202024%20Highlights) Raymond James Financial reported record net revenues and increased net income for the fiscal second quarter, driven primarily by growth in asset management and related administrative fees | Metric | Q2 FY2024 (Millions) | Change YoY | Change QoQ | | :----------------------------------- | :------------------- | :--------- | :--------- | | Net Revenues | $3,120 | +9% | +3% | | Net Income Available to Common Shareholders | $474 | +12% | -5% | | Diluted EPS | $2.22 | +15% | -4% | | Adjusted Net Income Available to Common Shareholders | $494 | +11% | -4% | | Adjusted Diluted EPS | $2.31 | +14% | -4% | - Record quarterly net revenues were primarily driven by higher asset management and related administrative fees, which grew to **$1.52 billion**[2](index=2&type=chunk) - Net income available to common shareholders increased due to higher net revenues and a **$32 million** legal and regulatory net reserve release[2](index=2&type=chunk) [First Half Fiscal Year 2024 Highlights](index=1&type=section&id=First%20Half%20Fiscal%20Year%202024%20Highlights) The first six months of fiscal year 2024 saw record net revenues and earnings per diluted share, with strong contributions from Private Client Group and Asset Management segments | Metric | H1 FY2024 (Millions) | Change YoY | | :----------------------------------- | :------------------- | :--------- | | Net Revenues | $6,130 | +8% | | Diluted EPS | $4.54 | +7% | | Adjusted Diluted EPS | $4.71 | +9% | | Annualized Return on Common Equity | 18.3% | -1.0% | | Annualized Adjusted Return on Tangible Common Equity | 22.8% | -1.4% | - The Private Client Group segment generated record net revenues and pre-tax income, and the Asset Management segment produced record net revenues during the first six months[3](index=3&type=chunk) - Client assets under administration grew **18% year-over-year**, reflecting market growth and solid financial advisor retention and recruiting[3](index=3&type=chunk) [Key Consolidated Financial and Operational Metrics](index=1&type=section&id=Key%20Consolidated%20Financial%20and%20Operational%20Metrics) The company achieved record client assets under administration and in fee-based accounts, alongside significant growth in total clients' domestic cash sweep and Enhanced Savings Program balances | Metric | Value (March 31, 2024) | Change YoY | | :----------------------------------- | :--------------------- | :--------- | | Client Assets Under Administration | $1.45 trillion | +18% | | Private Client Group Assets in Fee-Based Accounts | $798.8 billion | +20% | | Total Clients' Domestic Cash Sweep and ESP Balances | $58.2 billion | +11% | [Summary Results of Operations](index=4&type=section&id=Summary%20Results%20of%20Operations) Consolidated summary results show strong quarterly and year-to-date growth in net revenues, pre-tax income, and net income, with adjusted metrics also reflecting positive trends Summary Results of Operations (Three Months Ended March 31, 2024) | Metric | March 31, 2024 ($M) | March 31, 2023 ($M) | Dec 31, 2023 ($M) | % Change YoY | % Change QoQ | | :----------------------------------- | :------------------ | :------------------ | :------------------ | :----------- | :----------- | | Net revenues | 3,118 | 2,873 | 3,013 | 9% | 3% | | Pre-tax income | 609 | 557 | 630 | 9% | (3)% | | Net income available to common shareholders | 474 | 425 | 497 | 12% | (5)% | | Diluted EPS | 2.22 | 1.93 | 2.32 | 15% | (4)% | | Adjusted diluted EPS | 2.31 | 2.03 | 2.40 | 14% | (4)% | Summary Results of Operations (Six Months Ended March 31, 2024) | Metric | March 31, 2024 ($M) | March 31, 2023 ($M) | % Change YoY | | :----------------------------------- | :------------------ | :------------------ | :----------- | | Net revenues | 6,131 | 5,659 | 8% | | Pre-tax income | 1,239 | 1,209 | 2% | | Net income available to common shareholders | 971 | 932 | 4% | | Diluted EPS | 4.54 | 4.23 | 7% | | Adjusted diluted EPS | 4.71 | 4.31 | 9% | [Key Financial Ratios and Margins](index=4&type=section&id=Key%20Financial%20Ratios%20and%20Margins) The company maintained strong profitability and efficiency ratios, with a slight increase in return on common equity and stable pre-tax margins, while the total compensation ratio saw a modest increase Key Financial Ratios (Three Months Ended March 31, 2024) | Metric | March 31, 2024 | March 31, 2023 | Dec 31, 2023 | | :----------------------------------- | :------------- | :------------- | :----------- | | Return on common equity | 17.5% | 17.3% | 19.1% | | Adjusted return on common equity | 18.3% | 18.2% | 19.7% | | Adjusted return on tangible common equity | 21.8% | 22.3% | 23.8% | | Pre-tax margin | 19.5% | 19.4% | 20.9% | | Adjusted pre-tax margin | 20.4% | 20.4% | 21.7% | | Total compensation ratio | 65.5% | 63.3% | 63.8% | | Adjusted total compensation ratio | 65.2% | 62.8% | 63.4% | | Effective tax rate | 21.8% | 23.3% | 21.0% | [Segment Performance Overview](index=2&type=section&id=Segment%20Performance%20Overview) [Private Client Group](index=2&type=section&id=Private%20Client%20Group) The Private Client Group achieved record quarterly net revenues, driven by higher asset management and administrative fees, reflecting significant growth in client assets and successful advisor recruiting Private Client Group Key Metrics (Q2 FY2024) | Metric | Value | Change YoY | Change QoQ | | :----------------------------------- | :------------------- | :--------- | :--------- | | Quarterly Net Revenues | $2.34 billion | +9% | +5% | | Quarterly Pre-tax Income | $444 million | +1% | +1% | | Assets Under Administration | $1.39 trillion | +19% | +6% | | Assets in Fee-Based Accounts | $798.8 billion | +20% | +7% | | Domestic Net New Assets (Q2) | $9.6 billion | -55% | -55% | | Domestic Net New Assets (H1) | $31.2 billion | -30% | N/A | - Growth was predominantly driven by higher asset management and related administrative fees, reflecting growth of assets in fee-based accounts and higher brokerage revenues[7](index=7&type=chunk) - Record PCG net revenues reflected **19% annual growth** of client assets, driven by rising equity markets and net new assets[8](index=8&type=chunk) [Capital Markets](index=2&type=section&id=Capital%20Markets) Capital Markets experienced year-over-year revenue growth primarily due to higher investment banking revenues, though sequential revenues declined due to lower fixed income brokerage and M&A advisory revenues Capital Markets Key Metrics (Q2 FY2024) | Metric | Value | Change YoY | Change QoQ | | :----------------------------------- | :------------------- | :--------- | :--------- | | Quarterly Net Revenues | $321 million | +6% | -5% | | Quarterly Pre-tax Loss | $17 million | N/A | N/A | | Quarterly Investment Banking Revenues | $171 million | +18% | +1% | - Investment banking revenues increased slightly from the preceding quarter driven primarily by higher debt underwriting revenues[9](index=9&type=chunk) - The M&A pipeline and new business activity remain healthy, but the timing of closings is difficult to predict[9](index=9&type=chunk) [Asset Management](index=2&type=section&id=Asset%20Management) The Asset Management segment reported record quarterly net revenues and pre-tax income, largely attributable to higher financial assets under management resulting from strong equity markets and net inflows Asset Management Key Metrics (Q2 FY2024) | Metric | Value | Change YoY | Change QoQ | | :----------------------------------- | :------------------- | :--------- | :--------- | | Quarterly Net Revenues | $252 million | +17% | +7% | | Quarterly Pre-tax Income | $100 million | +22% | +8% | | Financial Assets Under Management | $227 billion | +17% | +5% | - Record quarterly net revenues were 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[10](index=10&type=chunk) [Bank](index=3&type=section&id=Bank) The Bank segment experienced a decline in net revenues and pre-tax income, primarily due to a lower Net Interest Margin (NIM) caused by increased interest expense from higher-cost funding Bank Segment Key Metrics (Q2 FY2024) | Metric | Value | Change YoY | Change QoQ | | :----------------------------------- | :------------------- | :--------- | :--------- | | Quarterly Net Revenues | $424 million | -21% | -4% | | Quarterly Pre-tax Income | $75 million | -18% | -18% | | Bank Segment Net Interest Margin (NIM) | 2.66% | -97 bps | -8 bps | | Net Loans | $44.1 billion | +1% | -0% | | Criticized Loans as % of Total Loans | 1.21% | +0.29% | +0.15% | - The NIM decreased due to increased interest expense from higher-cost funding, as Enhanced Savings Program (ESP) balances replaced a portion of lower-cost Raymond James Bank Deposit Program (RJBDP) client cash sweep balances[14](index=14&type=chunk) - The credit quality of the loan portfolio remains solid, despite a slight increase in criticized loans as a percent of total loans held for investment[15](index=15&type=chunk) [Other Corporate Activities](index=3&type=section&id=Other%20Corporate%20Activities) The 'Other' segment reported a significant increase in net revenues and a shift to pre-tax income, benefiting from a favorable effective tax rate and strategic share repurchases Other Segment Key Metrics (Q2 FY2024) | Metric | Value | Change YoY | Change QoQ | | :----------------------------------- | :------------------- | :--------- | :--------- | | Quarterly Net Revenues | $17 million | +70% | -35% | | Quarterly Pre-tax Income/(Loss) | $7 million | N/A | +133% | | Effective Tax Rate | 21.8% | -1.5% | +0.8% | | Total Capital Ratio | 23.3% | +1.9% | +0.3% | | Tier 1 Leverage Ratio | 12.3% | +0.8% | +0.2% | - The effective tax rate for the quarter was **21.8%**, reflecting the favorable impact of nontaxable corporate owned life insurance gains[16](index=16&type=chunk) - The firm repurchased **1.70 million shares** of common stock for **$207 million** in Q2, with **$1.14 billion** remaining under the repurchase authorization[17](index=17&type=chunk) [Segment Financial Summary](index=10&type=section&id=Segment%20Financial%20Summary) A consolidated view of segment performance shows Private Client Group and Asset Management as key revenue and income drivers, while the Bank segment faced headwinds Segment Net Revenues (Three Months Ended March 31, 2024) | Segment | Net Revenues ($M) | % Change YoY | % Change QoQ | | :------------------ | :---------------- | :----------- | :----------- | | Private Client Group | 2,341 | 9% | 5% | | Capital Markets | 321 | 6% | (5)% | | Asset Management | 252 | 17% | 7% | | Bank | 424 | (21)% | (4)% | | Other | 17 | 70% | (35)% | | Intersegment eliminations | (237) | (30)% | (6)% | | **Total Net Revenues** | **3,118** | **9%** | **3%** | Segment Pre-tax Income/(Loss) (Three Months Ended March 31, 2024) | Segment | Pre-tax Income/(Loss) ($M) | % Change YoY | % Change QoQ | | :------------------ | :------------------------- | :----------- | :----------- | | Private Client Group | 444 | 1% | 1% | | Capital Markets | (17) | 50% | NM | | Asset Management | 100 | 22% | 8% | | Bank | 75 | (18)% | (18)% | | Other | 7 | NM | 133% | | **Total Pre-tax Income** | **609** | **9%** | **(3)%** | [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statements of Income (Quarterly)](index=5&type=section&id=Consolidated%20Statements%20of%20Income%20(Quarterly)) The consolidated statement of income for the quarter shows robust revenue growth across most categories, particularly in asset management fees and interest income, though interest expense significantly increased Consolidated Statements of Income (Three Months Ended March 31, 2024) | Revenue Category | March 31, 2024 ($M) | March 31, 2023 ($M) | Dec 31, 2023 ($M) | % Change YoY | % Change QoQ | | :----------------------------------- | :------------------ | :------------------ | :------------------ | :----------- | :----------- | | Asset management and related administrative fees | 1,516 | 1,302 | 1,407 | 16% | 8% | | Total brokerage revenues | 528 | 496 | 522 | 6% | 1% | | Account and service fees | 335 | 258 | 319 | 30% | 5% | | Investment banking | 179 | 154 | 181 | 16% | (1)% | | Interest income | 1,049 | 915 | 1,053 | 15% | —% | | Total revenues | 3,638 | 3,157 | 3,520 | 15% | 3% | | Interest expense | (520) | (284) | (507) | 83% | 3% | | Net revenues | 3,118 | 2,873 | 3,013 | 9% | 3% | | Compensation, commissions and benefits | 2,043 | 1,820 | 1,921 | 12% | 6% | | Total non-interest expenses | 2,509 | 2,316 | 2,383 | 8% | 5% | | Pre-tax income | 609 | 557 | 630 | 9% | (3)% | | Net income available to common shareholders | 474 | 425 | 497 | 12% | (5)% | [Consolidated Statements of Income (Six Months)](index=6&type=section&id=Consolidated%20Statements%20of%20Income%20(Six%20Months)) For the first six months, the company demonstrated strong year-over-year growth in net revenues and net income, with significant increases in asset management fees, brokerage revenues, and interest income, despite a substantial rise in interest expense Consolidated Statements of Income (Six Months Ended March 31, 2024) | Revenue Category | March 31, 2024 ($M) | March 31, 2023 ($M) | % Change YoY | | :----------------------------------- | :------------------ | :------------------ | :----------- | | Asset management and related administrative fees | 2,923 | 2,544 | 15% | | Total brokerage revenues | 1,050 | 980 | 7% | | Account and service fees | 654 | 547 | 20% | | Investment banking | 360 | 295 | 22% | | Interest income | 2,102 | 1,742 | 21% | | Total revenues | 7,158 | 6,184 | 16% | | Interest expense | (1,027) | (525) | 96% | | Net revenues | 6,131 | 5,659 | 8% | | Compensation, commissions and benefits | 3,964 | 3,556 | 11% | | Total non-interest expenses | 4,892 | 4,450 | 10% | | Pre-tax income | 1,239 | 1,209 | 2% | | Net income available to common shareholders | 971 | 932 | 4% | [Consolidated Key Metrics & Balance Sheet](index=7&type=section&id=Consolidated%20Key%20Metrics%20%26%20Balance%20Sheet) [Balance Sheet and Capital Adequacy](index=7&type=section&id=Balance%20Sheet%20and%20Capital%20Adequacy) The company's balance sheet shows growth in total assets and common equity, leading to increased book value per share, with capital ratios remaining strong and well above regulatory requirements Balance Sheet and Capital Ratios (As of March 31, 2024) | Metric | March 31, 2024 ($M) | March 31, 2023 ($M) | Dec 31, 2023 ($M) | % Change YoY | % Change QoQ | | :----------------------------------- | :------------------ | :------------------ | :------------------ | :----------- | :----------- | | Total assets | 81,232 | 79,180 | 80,130 | 3% | 1% | | Total common equity | 10,905 | 9,875 | 10,711 | 10% | 2% | | Book value per share | 52.60 | 46.67 | 51.32 | 13% | 2% | | Tangible book value per share | 44.11 | 38.14 | 42.81 | 16% | 3% | | Tier 1 leverage | 12.3% | 11.5% | 12.1% | N/A | N/A | | Total capital | 23.3% | 21.4% | 23.0% | N/A | N/A | [Client and Advisor Metrics](index=7&type=section&id=Client%20and%20Advisor%20Metrics) Client assets under administration and in fee-based accounts reached record levels, reflecting strong market performance and net new asset inflows, while the total number of financial advisors remained stable Client and Advisor Metrics (As of March 31, 2024) | Metric | March 31, 2024 | March 31, 2023 | Dec 31, 2023 | % Change YoY | % Change QoQ | | :----------------------------------- | :------------- | :------------- | :----------- | :----------- | :----------- | | Client assets under administration | $1,449.1B | $1,224.4B | $1,370.6B | 18% | 6% | | Private Client Group assets in fee-based accounts | $798.8B | $666.3B | $746.6B | 20% | 7% | | Financial assets under management | $226.8B | $194.4B | $215.0B | 17% | 5% | | Domestic Private Client Group net new assets (Q2) | $9,648M | $21,473M | $21,575M | -55% | -55% | | Total advisors | 8,761 | 8,726 | 8,710 | 0% | 1% | [Cash and Deposit Balances](index=7&type=section&id=Cash%20and%20Deposit%20Balances) Total clients' domestic cash sweep and Enhanced Savings Program (ESP) balances increased year-over-year, with a notable shift towards third-party banks for RJBDP balances and significant growth in ESP Clients' Domestic Cash Sweep and ESP Balances (As of March 31, 2024) | Metric | March 31, 2024 ($M) | March 31, 2023 ($M) | Dec 31, 2023 ($M) | % Change YoY | % Change QoQ | | :----------------------------------- | :------------------ | :------------------ | :------------------ | :----------- | :----------- | | RJBDP - Bank segment | 23,405 | 37,682 | 23,912 | (38)% | (2)% | | RJBDP - Third-party banks | 18,234 | 9,408 | 17,820 | 94% | 2% | | Total clients' domestic cash sweep balances | 43,354 | 49,475 | 43,497 | (12)% | —% | | Enhanced Savings Program (ESP) | 14,863 | 2,746 | 14,476 | 441% | 3% | | **Total clients' domestic cash sweep and ESP balances** | **58,217** | **52,221** | **57,973** | **11%** | **—%** | [Detailed Net Interest Analysis](index=8&type=section&id=Detailed%20Net%20Interest%20Analysis) [Quarterly Net Interest Income and Rates](index=8&type=section&id=Quarterly%20Net%20Interest%20Income%20and%20Rates) Consolidated net interest income decreased year-over-year and sequentially, primarily due to a significant increase in interest expense on bank deposits, despite growth in interest-earning assets Consolidated Net Interest Income (Three Months Ended March 31, 2024) | Metric | March 31, 2024 ($M) | March 31, 2023 ($M) | Dec 31, 2023 ($M) | % Change YoY | % Change QoQ | | :----------------------------------- | :------------------ | :------------------ | :------------------ | :----------- | :----------- | | Total interest-earning assets (Avg. Balance) | 73,105 | 71,342 | 73,014 | 2% | 0% | | Total interest-bearing liabilities (Avg. Balance) | 64,325 | 62,895 | 63,997 | 2% | 1% | | Total Interest Income | 1,049 | 915 | 1,053 | 15% | 0% | | Total Interest Expense | 520 | 284 | 507 | 83% | 3% | | Firmwide Net Interest Income | 529 | 631 | 546 | (16)% | (3)% | | Firmwide Net Interest Margin | 2.91% | 3.59% | 2.97% | -0.68% | -0.06% | - The average rate on total interest-bearing liabilities increased significantly from **1.80% to 3.26%** year-over-year, impacting net interest income[30](index=30&type=chunk) - Bank segment's net interest margin decreased to **2.66%** from **3.63% YoY** and **2.74% QoQ**[30](index=30&type=chunk) [Six-Month Net Interest Income and Rates](index=9&type=section&id=Six-Month%20Net%20Interest%20Income%20and%20Rates) For the first six months, firmwide net interest income decreased year-over-year, primarily due to a substantial increase in interest expense on deposits, despite a rise in interest income from earning assets Consolidated Net Interest Income (Six Months Ended March 31, 2024) | Metric | March 31, 2024 ($M) | March 31, 2023 ($M) | % Change YoY | | :----------------------------------- | :------------------ | :------------------ | :----------- | | Total interest-earning assets (Avg. Balance) | 73,068 | 72,153 | 1% | | Total interest-bearing liabilities (Avg. Balance) | 64,133 | 63,436 | 1% | | Total Interest Income | 2,102 | 1,742 | 21% | | Total Interest Expense | 1,027 | 525 | 96% | | Firmwide Net Interest Income | 1,075 | 1,217 | (12)% | | Firmwide Net Interest Margin | 2.94% | 3.38% | -0.44% | - The average rate on total interest-bearing liabilities nearly doubled from **1.64% to 3.20%** year-over-year[31](index=31&type=chunk) - Bank segment's net interest margin decreased to **2.70%** from **3.51%** year-over-year[31](index=31&type=chunk) [Detailed Segment Financials](index=11&type=section&id=Detailed%20Segment%20Financials) [Private Client Group Detailed Results](index=11&type=section&id=Private%20Client%20Group%20Detailed%20Results) The Private Client Group demonstrated strong revenue growth across most categories, particularly in asset management fees and brokerage revenues, contributing to increased pre-tax income [Quarterly Performance](index=11&type=section&id=Quarterly%20Performance) Quarterly net revenues for PCG increased 9% YoY and 5% QoQ, driven by significant growth in asset management fees (16% YoY) and brokerage revenues (12% YoY) Private Client Group Revenues (Three Months Ended March 31, 2024) | Revenue Category | March 31, 2024 ($M) | March 31, 2023 ($M) | Dec 31, 2023 ($M) | % Change YoY | % Change QoQ | | :----------------------------------- | :------------------ | :------------------ | :------------------ | :----------- | :----------- | | Asset management and related administrative fees | 1,283 | 1,102 | 1,191 | 16% | 8% | | Total brokerage revenues | 407 | 364 | 382 | 12% | 7% | | RJBDP fees: Bank segment | 206 | 311 | 223 | (34)% | (8)% | | RJBDP fees: Third-party banks | 160 | 100 | 152 | 60% | 5% | | Net revenues | 2,341 | 2,144 | 2,226 | 9% | 5% | | Total compensation, commissions and benefits | 1,664 | 1,463 | 1,569 | 14% | 6% | | Pre-tax income | 444 | 441 | 439 | 1% | 1% | [Six-Month Performance](index=12&type=section&id=Six-Month%20Performance) For the six months, PCG net revenues grew 9% YoY, driven by strong increases in asset management fees (15% YoY) and brokerage revenues (11% YoY), with compensation expenses also increasing significantly Private Client Group Revenues (Six Months Ended March 31, 2024) | Revenue Category | March 31, 2024 ($M) | March 31, 2023 ($M) | % Change YoY | | :----------------------------------- | :------------------ | :------------------ | :----------- | | Asset management and related administrative fees | 2,474 | 2,155 | 15% | | Total brokerage revenues | 789 | 709 | 11% | | RJBDP fees: Bank segment | 429 | 579 | (26)% | | RJBDP fees: Third-party banks | 312 | 237 | 32% | | Net revenues | 4,567 | 4,207 | 9% | | Total compensation, commissions and benefits | 3,233 | 2,880 | 12% | | Pre-tax income | 883 | 875 | 1% | [Capital Markets Detailed Results](index=13&type=section&id=Capital%20Markets%20Detailed%20Results) Capital Markets saw a mixed performance, with strong growth in investment banking, particularly debt underwriting, offsetting declines in fixed income brokerage and M&A advisory sequentially [Quarterly Performance](index=13&type=section&id=Quarterly%20Performance) Quarterly net revenues for Capital Markets increased 6% YoY but declined 5% QoQ, with investment banking revenues growing 18% YoY, driven by a 41% increase in debt underwriting Capital Markets Revenues (Three Months Ended March 31, 2024) | Revenue Category | March 31, 2024 ($M) | March 31, 2023 ($M) | Dec 31, 2023 ($M) | % Change YoY | % Change QoQ | | :----------------------------------- | :------------------ | :------------------ | :------------------ | :----------- | :----------- | | Total brokerage revenues | 122 | 130 | 140 | (6)% | (13)% | | M&A and advisory | 107 | 87 | 118 | 23% | (9)% | | Debt underwriting | 41 | 29 | 26 | 41% | 58% | | Total investment banking | 171 | 145 | 170 | 18% | 1% | | Net revenues | 321 | 302 | 338 | 6% | (5)% | | Pre-tax income/(loss) | (17) | (34) | 3 | 50% | NM | [Six-Month Performance](index=13&type=section&id=Six-Month%20Performance) For the six months, Capital Markets net revenues increased 10% YoY, with investment banking revenues growing 23% YoY, and the segment significantly reduced its pre-tax loss Capital Markets Revenues (Six Months Ended March 31, 2024) | Revenue Category | March 31, 2024 ($M) | March 31, 2023 ($M) | % Change YoY | | :----------------------------------- | :------------------ | :------------------ | :----------- | | Total brokerage revenues | 262 | 264 | (1)% | | M&A and advisory | 225 | 189 | 19% | | Debt underwriting | 67 | 45 | 49% | | Total investment banking | 341 | 278 | 23% | | Net revenues | 659 | 597 | 10% | | Pre-tax loss | (14) | (50) | 72% | [Asset Management Detailed Results](index=14&type=section&id=Asset%20Management%20Detailed%20Results) Asset Management continued its strong performance, with significant growth in asset management and related administrative fees, leading to increased net revenues and pre-tax income [Quarterly Performance](index=14&type=section&id=Quarterly%20Performance) Quarterly net revenues for Asset Management grew 17% YoY and 7% QoQ, primarily driven by a 17% YoY increase in total asset management and related administrative fees Asset Management Revenues (Three Months Ended March 31, 2024) | Revenue Category | March 31, 2024 ($M) | March 31, 2023 ($M) | Dec 31, 2023 ($M) | % Change YoY | % Change QoQ | | :----------------------------------- | :------------------ | :------------------ | :------------------ | :----------- | :----------- | | Managed programs | 163 | 140 | 150 | 16% | 9% | | Total asset management and related administrative fees | 242 | 206 | 224 | 17% | 8% | | Net revenues | 252 | 216 | 235 | 17% | 7% | | Pre-tax income | 100 | 82 | 93 | 22% | 8% | [Six-Month Performance](index=14&type=section&id=Six-Month%20Performance) For the six months, Asset Management net revenues increased 15% YoY, with total asset management and related administrative fees up 16% YoY, and pre-tax income grew 19% YoY Asset Management Revenues (Six Months Ended March 31, 2024) | Revenue Category | March 31, 2024 ($M) | March 31, 2023 ($M) | % Change YoY | | :----------------------------------- | :------------------ | :------------------ | :----------- | | Managed programs | 313 | 274 | 14% | | Total asset management and related administrative fees | 466 | 403 | 16% | | Net revenues | 487 | 423 | 15% | | Pre-tax income | 193 | 162 | 19% | [Bank Detailed Results](index=15&type=section&id=Bank%20Detailed%20Results) The Bank segment's net interest income declined significantly due to a sharp increase in interest expense, leading to reduced net revenues and pre-tax income, despite growth in interest income [Quarterly Performance](index=15&type=section&id=Quarterly%20Performance) Quarterly net revenues for the Bank segment declined 21% YoY and 4% QoQ, with net interest income decreasing 22% YoY due to a 108% YoY increase in interest expense Bank Segment Revenues (Three Months Ended March 31, 2024) | Revenue Category | March 31, 2024 ($M) | March 31, 2023 ($M) | Dec 31, 2023 ($M) | % Change YoY | % Change QoQ | | :----------------------------------- | :------------------ | :------------------ | :------------------ | :----------- | :----------- | | Interest income | 868 | 749 | 872 | 16% | —% | | Interest expense | (455) | (219) | (446) | 108% | 2% | | Net interest income | 413 | 530 | 426 | (22)% | (3)% | | Net revenues | 424 | 540 | 441 | (21)% | (4)% | | Bank loan provision for credit losses | 21 | 28 | 12 | (25)% | 75% | | RJBDP fees to Private Client Group | 206 | 311 | 223 | (34)% | (8)% | | Pre-tax income | 75 | 91 | 92 | (18)% | (18)% | [Six-Month Performance](index=15&type=section&id=Six-Month%20Performance) For the six months, Bank segment net revenues decreased 17% YoY, with net interest income declining 18% YoY, driven by a 123% YoY increase in interest expense Bank Segment Revenues (Six Months Ended March 31, 2024) | Revenue Category | March 31, 2024 ($M) | March 31, 2023 ($M) | % Change YoY | | :----------------------------------- | :------------------ | :------------------ | :----------- | | Interest income | 1,740 | 1,425 | 22% | | Interest expense | (901) | (404) | 123% | | Net interest income | 839 | 1,021 | (18)% | | Net revenues | 865 | 1,048 | (17)% | | Bank loan provision for credit losses | 33 | 42 | (21)% | | RJBDP fees to Private Client Group | 429 | 579 | (26)% | | Pre-tax income | 167 | 227 | (26)% | [Other Segment Detailed Results](index=16&type=section&id=Other%20Segment%20Detailed%20Results) The 'Other' segment showed a significant turnaround, moving from a pre-tax loss to a pre-tax income position, driven by increased net revenues and a substantial reduction in non-interest expenses [Quarterly Performance](index=16&type=section&id=Quarterly%20Performance) Quarterly net revenues for the 'Other' segment increased 70% YoY, while non-interest expenses decreased 70% YoY, leading to a pre-tax income of $7 million compared to a $23 million loss in the prior year Other Segment Revenues (Three Months Ended March 31, 2024) | Metric | March 31, 2024 ($M) | March 31, 2023 ($M) | Dec 31, 2023 ($M) | % Change YoY | % Change QoQ | | :----------------------------------- | :------------------ | :------------------ | :------------------ | :----------- | :----------- | | Net revenues | 17 | 10 | 26 | 70% | (35)% | | Total non-interest expenses | 10 | 33 | 23 | (70)% | (57)% | | Pre-tax income/(loss) | 7 | (23) | 3 | NM | 133% | [Six-Month Performance](index=16&type=section&id=Six-Month%20Performance) For the six months, 'Other' segment net revenues increased 126% YoY, and the segment achieved a pre-tax income of $10 million, a significant improvement from a $5 million loss in the prior year Other Segment Revenues (Six Months Ended March 31, 2024) | Metric | March 31, 2024 ($M) | March 31, 2023 ($M) | % Change YoY | | :----------------------------------- | :------------------ | :------------------ | :----------- | | Net revenues | 43 | 19 | 126% | | Total non-interest expenses | 33 | 24 | 38% | | Pre-tax income/(loss) | 10 | (5) | NM | [Bank Segment Specific Metrics](index=17&type=section&id=Bank%20Segment%20Specific%20Metrics) [Bank Segment Key Metrics](index=17&type=section&id=Bank%20Segment%20Key%20Metrics) The Bank segment maintained stable total assets and net loans, but saw an increase in nonperforming and criticized loans, with net interest margin declining and net charge-offs increasing significantly Bank Segment Key Metrics (As of March 31, 2024) | Metric | March 31, 2024 ($M) | March 31, 2023 ($M) | Dec 31, 2023 ($M) | % Change YoY | % Change QoQ | | :----------------------------------- | :------------------ | :------------------ | :------------------ | :----------- | :----------- | | Total assets | 61,038 | 60,400 | 61,517 | 1% | (1)% | | Bank loans, net | 44,099 | 43,683 | 44,182 | 1% | —% | | Bank loan allowance for credit losses | 471 | 415 | 479 | 13% | (2)% | | Total nonperforming assets | 187 | 99 | 164 | 89% | 14% | | Nonperforming assets as a % of total assets | 0.31% | 0.16% | 0.27% | N/A | N/A | | Total criticized loans | 538 | 403 | 472 | 33% | 14% | | Criticized loans as a % of loans held for investment | 1.21% | 0.92% | 1.06% | N/A | N/A | | Total bank deposits | 54,843 | 54,229 | 55,393 | 1% | (1)% | | Net interest margin | 2.66% | 3.63% | 2.74% | N/A | N/A | | Net charge-offs (Q2) | 28 | 20 | 8 | 40% | 250% | [Non-GAAP Financial Measures Reconciliation](index=18&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliation) [Adjusted Net Income and Pre-tax Income](index=18&type=section&id=Adjusted%20Net%20Income%20and%20Pre-tax%20Income) The company provides adjusted non-GAAP measures to exclude acquisition-related expenses, offering a clearer view of core operating results, with adjusted net income and pre-tax income showing higher values compared to GAAP figures Adjusted Net Income and Pre-tax Income Reconciliation (Three Months Ended March 31, 2024) | Metric | GAAP ($M) | Non-GAAP Adjustments ($M) | Adjusted ($M) | | :----------------------------------- | :-------- | :------------------------ | :---------- | | Net income available to common shareholders | 474 | 20 | 494 | | Pre-tax income | 609 | 26 | 635 | | Compensation, commissions and benefits expense | 2,043 | (11) | 2,032 | - Non-GAAP adjustments primarily include acquisition-related retention compensation, amortization of identifiable intangible assets, and other acquisition-related expenses[57](index=57&type=chunk) [Adjusted Margins and Compensation Ratios](index=19&type=section&id=Adjusted%20Margins%20and%20Compensation%20Ratios) Adjusted pre-tax margins and total compensation ratios provide insights into operational efficiency by excluding the impact of acquisition-related expenses Adjusted Margins and Compensation Ratios Reconciliation (Three Months Ended March 31, 2024) | Metric | GAAP | Non-GAAP Adjustments | Adjusted | | :----------------------------------- | :----- | :------------------- | :------- | | Pre-tax margin | 19.5% | 0.9% | 20.4% | | Total compensation ratio | 65.5% | (0.3)% | 65.2% | [Adjusted Earnings Per Share](index=20&type=section&id=Adjusted%20Earnings%20Per%20Share) Adjusted earnings per common share, both basic and diluted, are presented to reflect the company's performance excluding specific non-recurring or acquisition-related items Adjusted Earnings Per Common Share Reconciliation (Three Months Ended March 31, 2024) | Metric | GAAP | Non-GAAP Adjustments | Adjusted | | :----------------------------------- | :----- | :------------------- | :------- | | Basic EPS | $2.27 | $0.10 | $2.37 | | Diluted EPS | $2.22 | $0.09 | $2.31 | [Tangible Common Equity and Adjusted Return on Equity](index=21&type=section&id=Tangible%20Common%20Equity%20and%20Adjusted%20Return%20on%20Equity) The reconciliation of tangible common equity and adjusted return on equity provides a more comparable view of the company's financial strength and profitability by excluding goodwill and identifiable intangible assets Tangible Common Equity Reconciliation (As of March 31, 2024) | Metric | March 31, 2024 ($M) | March 31, 2023 ($M) | Dec 31, 2023 ($M) | | :----------------------------------- | :------------------ | :------------------ | :------------------ | | Total common equity | 10,905 | 9,875 | 10,711 | | Goodwill and identifiable intangible assets, net | (1,894) | (1,932) | (1,908) | | Deferred tax liabilities related to goodwill and identifiable intangible assets, net | 134 | 128 | 132 | | Tangible common equity | 9,145 | 8,071 | 8,935 | | Tangible book value per share | $44.11 | $38.14 | $42.81 | Adjusted Return on Tangible Common Equity (Three Months Ended March 31, 2024) | Metric | GAAP | Adjusted | | :----------------------------------- | :----- | :------- | | Return on common equity | 17.5% | 18.3% | | Return on tangible common equity | 21.0% | 21.8% | [Footnotes](index=23&type=section&id=Footnotes) [General Footnotes](index=23&type=section&id=General%20Footnotes) The footnotes provide essential definitions, methodologies, and additional context for the financial metrics and non-GAAP adjustments presented in the report - Footnote (1) clarifies that certain financial measures are non-GAAP and refers to reconciliation schedules[68](index=68&type=chunk) - Footnote (2) defines Domestic Private Client Group net new assets and its annualized growth calculation[68](index=68&type=chunk) - Footnote (10) explains the Raymond James Bank Deposit Program (RJBDP) and how fees are earned and accounted for[68](index=68&type=chunk) - Footnote (11) describes the Enhanced Savings Program (ESP) and its reflection in bank deposits[68](index=68&type=chunk) - Footnote (17) details the components of the 'Other' segment, including corporate cash, private equity investments, and unallocated corporate overhead costs[70](index=70&type=chunk)

PART I. FINANCIAL INFORMATION This section provides the unaudited condensed consolidated financial statements and related notes, offering a detailed view of the company's financial position, performance, and cash flows for the quarter [ITEM 1. FINANCIAL STATEMENTS](index=3&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) This section presents the unaudited condensed consolidated financial statements, including the statements of financial condition, income, changes in shareholders' equity, and cash flows, along with detailed notes providing context and breakdowns of key accounts and accounting policies [Condensed Consolidated Statements of Financial Condition (Unaudited)](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Financial%20Condition%20(Unaudited)) This statement provides a snapshot of the company's assets, liabilities, and shareholders' equity as of December 31, 2023, and September 30, 2023 Condensed Consolidated Statements of Financial Condition (Unaudited) | $ in millions, except per share amounts | December 31, 2023 | September 30, 2023 | | :-------------------------------------- | :---------------- | :----------------- | | Total assets | 80,130 | 78,360 | | Total liabilities | 69,349 | 68,173 | | Total shareholders' equity | 10,781 | 10,187 | - Total assets increased by **$1,770 million (2.26%)** from September 30, 2023, to December 31, 2023[8](index=8&type=chunk) - Total liabilities increased by **$1,176 million (1.72%)** over the same period[8](index=8&type=chunk) - Total shareholders' equity increased by **$594 million (5.83%)** from September 30, 2023, to December 31, 2023[8](index=8&type=chunk) [Condensed Consolidated Statements of Income and Comprehensive Income (Unaudited)](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20and%20Comprehensive%20Income%20(Unaudited)) This statement details the company's revenues, expenses, net income, and comprehensive income for the three months ended December 31, 2023, and 2022 Condensed Consolidated Statements of Income and Comprehensive Income (Unaudited) | in millions, except per share amounts | Three months ended December 31, 2023 | Three months ended December 31, 2022 | | :------------------------------------ | :----------------------------------- | :----------------------------------- | | Total revenues | 3,520 | 3,027 | | Interest expense | (507) | (241) | | Net revenues | 3,013 | 2,786 | | Total non-interest expenses | 2,383 | 2,134 | | Pre-tax income | 630 | 652 | | Net income | 498 | 509 | | Net income available to common shareholders | 497 | 507 | | Earnings per common share – diluted | 2.32 | 2.30 | | Total comprehensive income | 776 | 600 | - Total revenues increased by **$493 million (16.29%)** year-over-year[9](index=9&type=chunk) - Net income available to common shareholders decreased by **$10 million (1.97%)** year-over-year[9](index=9&type=chunk) - Diluted earnings per common share increased by **$0.02 (0.87%)** year-over-year[9](index=9&type=chunk) [Condensed Consolidated Statements of Changes in Shareholders' Equity (Unaudited)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity%20(Unaudited)) This statement outlines the changes in retained earnings, treasury stock, and accumulated other comprehensive loss for the periods presented Condensed Consolidated Statements of Changes in Shareholders' Equity (Unaudited) | $ in millions, except per share amounts | December 31, 2023 | December 31, 2022 | | :-------------------------------------- | :---------------- | :---------------- | | Retained earnings (end of period) | 10,609 | 9,254 | | Treasury stock (end of period) | (2,365) | (1,604) |\ | Accumulated other comprehensive loss (end of period) | (693) | (891) | | Total shareholders' equity (end of period) | 10,781 | 9,830 | - Retained earnings increased by **$396 million** during the three months ended December 31, 2023, primarily due to net income attributable to Raymond James Financial, Inc. of **$498 million**, partially offset by common and preferred stock cash dividends declared of **$102 million**[11](index=11&type=chunk) - Treasury stock increased by **$113 million** due to purchases/surrenders of **$159 million**, partially offset by reissuances of **$46 million**[11](index=11&type=chunk) - Accumulated other comprehensive loss improved by **$278 million** due to other comprehensive income, net of tax[11](index=11&type=chunk) [Condensed Consolidated Statements of Cash Flows (Unaudited)](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20(Unaudited)) This statement presents the cash flows from operating, investing, and financing activities, and the net change in cash and cash equivalents Condensed Consolidated Statements of Cash Flows (Unaudited) | $ in millions | Three months ended December 31, 2023 | Three months ended December 31, 2022 | | :------------------------------------ | :----------------------------------- | :----------------------------------- | | Net cash provided by/(used in) operating activities | 543 | (3,136) | | Net cash used in investing activities | (176) | (666) | | Net cash provided by financing activities | 907 | 221 | | Net increase/(decrease) in cash and cash equivalents, including those segregated for regulatory purposes and restricted cash | 1,389 | (3,366) | | Cash and cash equivalents, including those segregated for regulatory purposes and restricted cash at end of period | 13,937 | 11,293 | - Net cash provided by operating activities significantly improved to **$543 million** in Q1 FY2024 from a use of **$3,136 million** in Q1 FY2023[14](index=14&type=chunk)[17](index=17&type=chunk) - Net cash provided by financing activities increased to **$907 million** in Q1 FY2024 from **$221 million** in Q1 FY2023, primarily due to an increase in bank deposits[14](index=14&type=chunk)[17](index=17&type=chunk) - Total cash and cash equivalents, including segregated and restricted cash, increased by **$1,389 million** to **$13,937 million** at period-end[14](index=14&type=chunk)[17](index=17&type=chunk) [Note 1 - Organization and basis of presentation](index=8&type=section&id=Note%201%20-%20Organization%20and%20basis%20of%20presentation) This note describes Raymond James Financial, Inc.'s business as a financial holding company and the basis for preparing its unaudited consolidated financial statements - RJF is a financial holding company providing investment management, M&A advisory, securities underwriting, and banking/trust services[20](index=20&type=chunk) - Financial statements consolidate RJF and its controlled subsidiaries, including Variable Interest Entities (VIEs) where RJF is the primary beneficiary[21](index=21&type=chunk) - Interim financial statements are unaudited and reflect management's necessary adjustments and estimates, which may differ from actual results[22](index=22&type=chunk)[23](index=23&type=chunk) [Note 2 - Update of significant accounting policies](index=9&type=section&id=Note%202%20-%20Update%20of%20significant%20accounting%20policies) This note details the adoption of new accounting guidance related to troubled debt restructurings and credit losses, with no material impact on financial position or results - Adopted ASU 2022-02 on October 1, 2023, eliminating the discounted cash flow approach for TDRs and allowing a CECL approach for all loans[26](index=26&type=chunk) - New disclosures are required for loan modifications to borrowers experiencing financial difficulty and for current period gross charge-offs by year of origination[26](index=26&type=chunk) - The adoption of this guidance did not have a material impact on the company's financial position or results of operations[26](index=26&type=chunk) [Note 3 - Fair value](index=10&type=section&id=Note%203%20-%20Fair%20value) This note provides detailed fair value measurements for assets and liabilities, categorized by Level 1, 2, and 3 inputs, on a recurring and nonrecurring basis Assets at fair value on a recurring basis (December 31, 2023) | Category | Level 1 ($M) | Level 2 ($M) | Level 3 ($M) | Netting Adjustments ($M) | Total ($M) | | :---------------------------------------- | :----------- | :----------- | :----------- | :----------------------- | :----------- | | Trading assets | 80 | 1,022 | 1 | — | 1,103 | | Available-for-sale securities | 1,149 | 8,049 | — | — | 9,198 | | Derivative assets | 8 | 375 | — | (188) | 195 | | All other investments | 178 | 2 | 29 | — | 209 | | Other assets - client-owned fractional shares | 110 | — | — | — | 110 | | Private equity - measured at NAV | — | — | — | — | 101 | | **Total Assets at Fair Value** | **1,525** | **9,448** | **30** | **(188)** | **10,916** | Liabilities at fair value on a recurring basis (December 31, 2023) | Category | Level 1 ($M) | Level 2 ($M) | Level 3 ($M) | Netting Adjustments ($M) | Total ($M) | | :---------------------------------------- | :----------- | :----------- | :----------- | :----------------------- | :----------- | | Trading liabilities | 179 | 615 | — | — | 794 | | Derivative liabilities | 9 | 415 | — | (114) | 310 | | Other payables - repurchase liabilities | 110 | — | — | — | 110 | | **Total Liabilities at Fair Value** | **298** | **1,030** | **—** | **(114)** | **1,214** | - As of December 31, 2023, **14% of assets** and **2% of liabilities** were measured at fair value on a recurring basis, with Level 3 assets representing less than **1%** of recurring fair value assets[38](index=38&type=chunk) [Note 4 - Available-for-sale securities](index=15&type=section&id=Note%204%20-%20Available-for-sale%20securities) This note details the available-for-sale securities portfolio, including fair value, cost basis, and unrealized gains and losses, primarily consisting of agency MBS and U.S. Treasuries Available-for-sale securities (Fair Value) | Date | Cost Basis ($M) | Gross Unrealized Gains ($M) | Gross Unrealized Losses ($M) | Fair Value ($M) | | :----------------- | :-------------- | :-------------------------- | :--------------------------- | :-------------- | | Dec 31, 2023 | 10,092 | 3 | (897) | 9,198 | | Sep 30, 2023 | 10,433 | — | (1,252) | 9,181 | - The weighted-average life of the AFS portfolio was approximately **4.0 years** as of December 31, 2023[53](index=53&type=chunk) - As of December 31, 2023, **1,030 securities** were in a continuous unrealized loss position for greater than 12 months, totaling **$(897) million** in unrealized losses[57](index=57&type=chunk) [Note 5 - Derivative assets and derivative liabilities](index=18&type=section&id=Note%205%20-%20Derivative%20assets%20and%20derivative%20liabilities) This note outlines the fair value of derivative assets and liabilities, and their use in hedging interest rate and foreign exchange risks, with impacts on AOCI and earnings Derivative Balances (December 31, 2023) | Category | Gross Fair Value Assets ($M) | Gross Fair Value Liabilities ($M) | Notional Amount ($M) | | :---------------------------------------- | :--------------------------- | :---------------------------- | :------------------- | | Derivatives not designated as hedging instruments | 377 | 416 | 20,081 | | Derivatives designated as hedging instruments | 6 | 8 | 2,433 | | **Total Gross Fair Value/Notional** | **383** | **424** | **22,514** | | Net amounts presented on Condensed Consolidated Statements of Financial Condition | 195 | 310 | N/A | Losses Included in AOCI, Net of Taxes (Three months ended December 31) | $ in millions | 2023 | 2022 | | :------------------------------------ | :--- | :--- | | Interest rate (cash flow hedges) | (21) | (2) | | Foreign exchange (net investment hedges) | (22) | (14) | | **Total losses included in AOCI, net of taxes** | **(43)** | **(16)** | Gains/(Losses) on Derivatives Not Designated as Hedging Instruments (Three months ended December 31, 2023) | $ in millions | Location of gain/(loss) | 2023 | | :------------------------------------ | :---------------------- | :--- | | Interest rate | Principal transactions/other revenues | 1 | | Foreign exchange | Other revenues | (33) | [Note 6 - Collateralized agreements and financings](index=20&type=section&id=Note%206%20-%20Collateralized%20agreements%20and%20financings) This note details collateralized agreements and financings, including repurchase agreements and securities lending, and assets pledged with the FHLB and FRB Collateralized Agreements and Financings (December 31, 2023) | Category | Gross Amounts ($M) | Net Amounts ($M) | | :--------------------------------- | :----------------- | :--------------- | | Collateralized agreements | 454 | 12 | | Collateralized financings | 516 | 15 | Repurchase Agreements and Securities Lending Transactions by Maturity (December 31, 2023) | $ in millions | Overnight and continuous | | :--------------------------------- | :----------------------- | | Repurchase agreements | 169 | | Securities loaned | 347 | | **Total collateralized financings**| **516** | Assets Pledged with FHLB and FRB (December 31, 2023) | $ in millions | Amount | | :--------------------------------- | :----- | | Available-for-sale securities | 3,947 | | Bank loans | 10,396 |\ | **Total assets pledged** | **14,343** | [Note 7 - Bank loans, net](index=23&type=section&id=Note%207%20-%20Bank%20loans,%20net) This note provides a breakdown of bank loans, net, including changes in the allowance for credit losses and nonperforming loans, by loan category Bank Loans, Net (December 31, 2023 vs. September 30, 2023) | $ in millions | December 31, 2023 | September 30, 2023 | | :--------------------------------- | :---------------- | :----------------- | | SBL | 14,647 | 14,606 | | C&I loans | 10,503 | 10,406 | | CRE loans | 7,331 | 7,221 | | REIT loans | 1,697 | 1,668 | | Residential mortgage loans | 8,861 | 8,662 | | Tax-exempt loans | 1,411 | 1,541 | | Total loans held for investment | 44,450 | 44,104 | | Held for sale loans | 211 | 145 | | Total loans held for sale and investment | 44,661 | 44,249 | | Allowance for credit losses | (479) | (474) | | **Bank loans, net** | **44,182** | **43,775** | Allowance for Credit Losses on Held for Investment Bank Loans (Three months ended December 31, 2023) | $ in millions | SBL | C&I loans | CRE loans | REIT loans | Residential mortgage loans | Tax-exempt loans | Total | | :--------------------------------- | :-- | :-------- | :-------- | :--------- | :------------------------- | :--------------- | :---- | | Balance at beginning of period | 7 | 214 | 161 | 16 | 74 | 2 | 474 | | Provision/(benefit) for credit losses | — | 3 | 14 | 1 | (6) | — | 12 | | Net (charge-offs)/recoveries | — | (6) | (2) | — | — | — | (8) | | Balance at end of period | 7 | 211 | 174 | 17 | 68 | 2 | 479 | Nonperforming Loans and Assets (December 31, 2023 vs. September 30, 2023) | $ in millions | December 31, 2023 | September 30, 2023 | | :--------------------------------- | :---------------- | :----------------- | | Nonperforming loans | 164 | 128 | | Nonperforming assets | 164 | 128 | | Nonperforming loans as a % of total loans held for sale and investment | 0.37 % | 0.29 % | | Allowance for credit losses as a % of nonperforming loans | 292 % | 370 % | [Note 8 - Loans to financial advisors, net](index=29&type=section&id=Note%208%20-%20Loans%20to%20financial%20advisors,%20net) This note details loans to financial advisors, net, primarily for recruiting, and the associated allowance for credit losses Loans to Financial Advisors, Net (December 31, 2023 vs. September 30, 2023) | $ in millions | December 31, 2023 | September 30, 2023 | | :--------------------------------- | :---------------- | :----------------- | | Affiliated with the firm as of period-end | 1,206 | 1,158 | | No longer affiliated with the firm as of period-end | 13 | 10 | | Total loans to financial advisors | 1,219 | 1,168 | | Allowance for credit losses | (35) | (32) | | **Loans to financial advisors, net** | **1,184** | **1,136** | | Allowance for credit losses as a percent of total loans to financial advisors | 2.87 % | 2.74 % | - Loans to financial advisors affiliated with the firm were predominantly current, while those no longer affiliated were predominantly past due for **180 days or more**[119](index=119&type=chunk)[120](index=120&type=chunk) [Note 9 - Variable interest entities](index=30&type=section&id=Note%209%20-%20Variable%20interest%20entities) This note describes the company's consolidation of Variable Interest Entities (VIEs) and its variable interests in non-consolidated VIEs, primarily LIHTC funds Aggregate Assets and Liabilities of Consolidated VIEs (December 31, 2023) | $ in millions | Aggregate assets | Aggregate liabilities | | :--------------------------------- | :--------------- | :-------------------- | | LIHTC funds | 123 | 50 | | Restricted Stock Trust Fund | 29 | 29 | | **Total** | **152** | **79** | Carrying Value of Consolidated VIE Assets and Liabilities (December 31, 2023) | $ in millions | December 31, 2023 | | :--------------------------------- | :---------------- | | Assets: Cash and cash equivalents and assets segregated for regulatory purposes and restricted cash | 14 | | Other assets | 109 | | **Total assets** | **123** | | Liabilities: Other payables | 30 | | **Total liabilities** | **30** | Risk of Loss from VIEs Not Consolidated (December 31, 2023) | $ in millions | Our risk of loss | | :--------------------------------- | :--------------- | | LIHTC funds | 47 | | Private Equity Interests | 101 | | Other | 3 | | **Total** | **151** | [Note 10 - Other assets](index=31&type=section&id=Note%2010%20-%20Other%20assets) This note provides a breakdown of other assets, including investments in company-owned life insurance, property and equipment, and lease right-of-use assets Components of Other Assets (December 31, 2023 vs. September 30, 2023) | $ in millions | December 31, 2023 | September 30, 2023 | | :---------------------------------------- | :---------------- | :----------------- | | Investments in company-owned life insurance policies | 1,228 | 1,110 | | Property and equipment, net | 580 | 561 | | Lease right-of-use ("ROU") assets | 552 | 560 | | Prepaid expenses | 257 | 209 | | Investments in FHLB and FRB stock | 114 | 114 | | Client-owned fractional shares | 110 | 98 | | All other | 219 | 141 | | **Total other assets** | **3,060** | **2,793** | - Total other assets increased by **$267 million (9.56%)** from September 30, 2023, to December 31, 2023[130](index=130&type=chunk) [Note 11 - Leases](index=31&type=section&id=Note%2011%20-%20Leases) This note details lease right-of-use assets and lease liabilities, along with lease expense for the period Lease Balances (December 31, 2023 vs. September 30, 2023) | $ in millions | December 31, 2023 | September 30, 2023 | | :--------------------------------- | :---------------- | :----------------- | | ROU assets (included in "Other assets") | 552 | 560 | | Lease liabilities (included in "Other payables") | 537 | 539 | Lease Expense (Three months ended December 31) | $ in millions | 2023 | 2022 | | :--------------------------------- | :--- | :--- | | Lease costs | 35 | 31 | | Variable lease costs | 9 | 7 | - **$42 million** of minimum lease payments for legally binding but uncommenced leases are estimated to commence between fiscal year 2024 and 2025[132](index=132&type=chunk) [Note 12 - Bank deposits](index=33&type=section&id=Note%2012%20-%20Bank%20deposits) This note provides a summary of bank deposits by type, weighted-average interest rates, FDIC insurance coverage, and interest expense on deposits Summary of Bank Deposits (December 31, 2023 vs. September 30, 2023) | $ in millions | Balance (Dec 31, 2023) | Weighted-average rate (Dec 31, 2023) | Balance (Sep 30, 2023) | Weighted-average rate (Sep 30, 2023) | | :--------------------------------- | :--------------------- | :----------------------------------- | :--------------------- | :----------------------------------- | | Money market and savings accounts | 31,315 | 1.96 % | 32,268 | 1.85 % | | Interest-bearing demand deposits | 20,423 | 5.02 % | 18,376 | 4.98 % | | Certificates of deposit | 2,885 | 4.63 % | 2,831 | 4.41 % | | Non-interest-bearing demand deposits | 770 | — | 724 | — | | **Total bank deposits** | **55,393** | **3.25 %** | **54,199** | **3.06 %** | FDIC-Insured Bank Deposits (December 31, 2023 vs. September 30, 2023) | $ in millions | December 31, 2023 | September 30, 2023 | | :--------------------------------- | :---------------- | :----------------- | | FDIC-insured bank deposits | 49,152 | 48,344 | | Bank deposits exceeding FDIC insurance limit | 6,241 | 5,855 | | **Total bank deposits** | **55,393** | **54,199** | | FDIC-insured bank deposits as a % of total bank deposits | 89 % | 89 % | Total Interest Expense on Deposits (Three months ended December 31) | $ in millions | 2023 | 2022 | | :--------------------------------- | :--- | :--- | | Money market and savings accounts | 156 | 117 | | Interest-bearing demand deposits | 243 | 47 | | Certificates of deposit | 32 | 8 | | **Total interest expense on deposits** | **431** | **172** | [Note 13 - Other borrowings](index=34&type=section&id=Note%2013%20-%20Other%20borrowings) This note details other borrowings, primarily FHLB advances and subordinated notes, and the use of interest rate swaps to manage risk Components of Other Borrowings (December 31, 2023) | $ in millions | Weighted-average interest rate | Maturity date | Balance | | :--------------------------------- | :----------------------------- | :------------ | :------ | | FHLB advances - Floating rate - term | 5.71 % | March 2025 - June 2025 | 650 | | FHLB advances - Fixed rate | 4.76 % | March 2024 - December 2028 | 350 | | Subordinated notes | 5.75 % | May 2030 | 99 | | **Total other borrowings** | N/A | N/A | **1,099** | - The company uses interest rate swaps to manage the risk of increases in interest rates associated with floating-rate FHLB advances by converting them to a fixed interest rate[145](index=145&type=chunk) - No borrowings were outstanding on the **$750 million** revolving Credit Facility as of December 31, 2023[147](index=147&type=chunk) [Note 14 - Income taxes](index=36&type=section&id=Note%2014%20-%20Income%20taxes) This note explains the effective income tax rate, its drivers, and the potential decrease in uncertain tax position liability due to statute expirations - The effective income tax rate for the three months ended December 31, 2023, was **21.0%**, lower than the **23.7%** effective tax rate for fiscal year 2023 and **21.9%** for the prior-year quarter[150](index=150&type=chunk)[231](index=231&type=chunk) - The decrease in the effective income tax rate was primarily due to a larger tax benefit recognized from share-based compensation and the absence of prior-year non-deductible fines and penalties[150](index=150&type=chunk) - The uncertain tax position liability balance may decrease by up to **$6 million** within the next 12 months due to expiration of statutes of limitations[151](index=151&type=chunk) [Note 15 - Commitments, contingencies and guarantees](index=36&type=section&id=Note%2015%20-%20Commitments,%20contingencies%20and%20guarantees) This note outlines significant lending commitments, unfunded investment commitments, and the estimated range of reasonably possible losses from legal and regulatory matters Lending Commitments and Other Credit-Related Off-Balance Sheet Financial Instruments (December 31, 2023 vs. September 30, 2023) | $ in millions | December 31, 2023 | September 30, 2023 | | :--------------------------------- | :---------------- | :----------------- | | SBL and other consumer lines of credit | 39,731 | 38,791 | | Commercial lines of credit | 4,144 | 4,131 | | Unfunded lending commitments | 869 | 936 | | Standby letters of credit | 112 | 123 | - Unfunded commitments to various investments, primarily held by Raymond James Bank and TriState Capital Bank, totaled **$63 million** as of December 31, 2023[160](index=160&type=chunk) - Raymond James Affordable Housing Investments, Inc. (RJAHI) had committed approximately **$248 million** to project partnerships that had not yet been sold to LIHTC funds[161](index=161&type=chunk) - The estimated upper end of the range of reasonably possible aggregate loss for legal and regulatory matters is approximately **$35 million** in excess of the aggregate accruals for such matters as of December 31, 2023[170](index=170&type=chunk) [Note 16 - Shareholders' equity](index=40&type=section&id=Note%2016%20-%20Shareholders'%20equity) This note details changes in shareholders' equity, including common stock repurchases, dividends, and the impact of accumulated other comprehensive loss Common Shares Outstanding (Three months ended December 31) | Shares in millions | 2023 | 2022 | | :--------------------------------- | :--- | :--- | | Balance beginning of period | 208.8 | 215.1 | | Repurchases of common stock | (1.4) | (1.3) | | Issuances due to vesting of RSUs and exercise of stock options, net of forfeitures | 1.3 | 1.2 | | **Balance end of period** | **208.7** | **215.0** | - During the three months ended December 31, 2023, the company repurchased **1.41 million shares** of common stock for **$150 million** at an average price of **$106.51 per share**[176](index=176&type=chunk) - As of December 31, 2023, **$1.39 billion** remained available under the Board of Directors' common stock repurchase authorization[176](index=176&type=chunk) Common Stock Dividends and Payout Ratio (Three months ended December 31) | Metric | 2023 | 2022 | | :--------------------------------- | :--- | :--- | | Dividends per common share - declared | $0.45 | $0.42 | | Dividend payout ratio | 19.4 % | 18.3 % | - Accumulated other comprehensive loss (AOCI) improved from **$(971) million** at the beginning of the period to **$(693) million** at the end of the period, driven by **$278 million** in other comprehensive income, net of tax, for the period[181](index=181&type=chunk) [Note 17 - Revenues](index=43&type=section&id=Note%2017%20-%20Revenues) This note provides a breakdown of total revenues by type and net revenues by segment, highlighting key contributors to overall revenue growth Total Revenues by Type (Three months ended December 31) | Revenue Type | 2023 ($M) | 2022 ($M) | % Change | | :--------------------------------- | :-------- | :-------- | :------- | | Asset management and related administrative fees | 1,407 | 1,242 | 13.3% | | Brokerage revenues | 522 | 484 | 7.8% | | Account and service fees | 319 | 289 | 10.4% | | Investment banking | 181 | 141 | 28.4% | | Interest income | 1,053 | 827 | 27.3% | | Other | 38 | 44 | (13.6)% | | **Total revenues** | **3,520** | **3,027** | **16.3%**| Net Revenues by Segment (Three months ended December 31, 2023) | Segment | Net Revenues ($M) | | :------------------ | :---------------- | | Private Client Group | 2,226 | | Capital Markets | 338 | | Asset Management | 235 | | Bank | 441 | | Other | 26 | | Intersegment eliminations | (253) | | **Total net revenues** | **3,013** | [Note 18 - Interest income and interest expense](index=45&type=section&id=Note%2018%20-%20Interest%20income%20and%20interest%20expense) This note details total interest income and expense, identifying primary drivers and the resulting net interest income for the period Interest Income and Expense (Three months ended December 31) | $ in millions | 2023 | 2022 | | :--------------------------------- | :--- | :--- | | Interest income: | | | | Bank loans, net | 734 | 599 | | Total interest income | 1,053 | 827 | | Interest expense: | | | | Bank deposits | 431 | 172 | | Total interest expense | 507 | 241 | | **Net interest income** | **546** | **586** | - Total interest income increased by **$226 million (27.33%)** year-over-year, primarily from bank loans[191](index=191&type=chunk) - Total interest expense increased by **$266 million (110.37%)** year-over-year, primarily from bank deposits[191](index=191&type=chunk) - Net interest income decreased by **$40 million (6.83%)** year-over-year[191](index=191&type=chunk) [Note 19 - Share-based compensation](index=45&type=section&id=Note%2019%20-%20Share-based%20compensation) This note outlines the granting of Restricted Stock Units (RSUs), share-based compensation amortization, and unrecognized compensation costs for RSUs and RSAs - Granted approximately **1.7 million RSUs** with a weighted-average grant-date fair value of **$106.68** during the three months ended December 31, 2023, compared with **1.9 million RSUs** at **$117.66** in the prior-year quarter[193](index=193&type=chunk) - Total share-based compensation amortization related to RSUs was **$87 million** for Q1 FY2024 (vs. **$76 million** in Q1 FY2023), and for RSAs was **$2 million** (vs. **$3 million** in Q1 FY2023)[193](index=193&type=chunk)[195](index=195&type=chunk) - As of December 31, 2023, unrecognized pre-tax compensation costs were **$425 million** for RSUs (expected over three years) and **$10 million** for RSAs (expected over two years)[194](index=194&type=chunk)[195](index=195&type=chunk) [Note 20 - Regulatory capital requirements](index=46&type=section&id=Note%2020%20-%20Regulatory%20capital%20requirements) This note confirms that RJF and its banks exceeded 'well-capitalized' status, detailing regulatory capital ratios and potential impacts of proposed new rules RJF Regulatory Capital Ratios (December 31, 2023) | Ratio | Actual | Requirement for capital adequacy purposes | To be well-capitalized under regulatory provisions | | :---------------- | :----- | :---------------------------------------- | :----------------------------------------------- | | Tier 1 leverage | 12.1 % | 4.0 % | 5.0 % | | Tier 1 capital | 21.6 % | 6.0 % | 8.0 % | | CET1 | 21.5 % | 4.5 % | 6.5 % | | Total capital | 23.0 % | 8.0 % | 10.0 % | - RJF's regulatory capital increased compared with September 30, 2023, driven by an increase in equity due to positive earnings, partially offset by share repurchases and dividends[201](index=201&type=chunk) - Proposed U.S. banking regulators' rules, if enacted, could result in higher capital requirements and eliminate the AOCI opt-out election, potentially reducing regulatory capital ratios in the future[321](index=321&type=chunk) [Note 21 - Earnings per share](index=48&type=section&id=Note%2021%20-%20Earnings%20per%20share) This note presents basic and diluted earnings per common share, along with net income available to common shareholders and average shares outstanding Earnings Per Common Share (Three months ended December 31) | in millions, except per share amounts | 2023 | 2022 | | :------------------------------------ | :--- | :--- | | Net income available to common shareholders | 497 | 507 | | Average common shares in basic computation | 208.6 | 214.7 | | Average common and common equivalent shares used in diluted computation | 213.8 | 220.4 | | Earnings per common share – basic | $2.38 | $2.36 | | Earnings per common share – diluted | $2.32 | $2.30 | - Diluted earnings per common share increased by **$0.02 (0.87%)** year-over-year[209](index=209&type=chunk) [Note 22 - Segment information](index=49&type=section&id=Note%2022%20-%20Segment%20information) This note provides a detailed breakdown of net revenues, pre-tax income, total assets, and goodwill by the company's operating segments Net Revenues and Pre-tax Income by Segment (Three months ended December 31) | $ in millions | Net revenues 2023 | Net revenues 2022 | Pre-tax income/(loss) 2023 | Pre-tax income/(loss) 2022 | | :------------------ | :---------------- | :---------------- | :------------------------- | :------------------------- | | Private Client Group | 2,226 | 2,063 | 439 | 434 | | Capital Markets | 338 | 295 | 3 | (16) | | Asset Management | 235 | 207 | 93 | 80 | | Bank | 441 | 508 | 92 | 136 | | Other | 26 | 9 | 3 | 18 | | **Total** | **3,013** | **2,786** | **630** | **652** | Total Assets by Segment (December 31, 2023 vs. September 30, 2023) | $ in millions | December 31, 2023 | September 30, 2023 | | :------------------ | :---------------- | :----------------- | | Private Client Group | 12,744 | 12,375 | | Capital Markets | 2,732 | 3,087 | | Asset Management | 569 | 567 | | Bank | 61,517 | 60,041 | | Other | 2,568 | 2,290 | | **Total** | **80,130** | **78,360** | Goodwill by Segment (December 31, 2023 vs. September 30, 2023) | $ in millions | December 31, 2023 | September 30, 2023 | | :------------------ | :---------------- | :----------------- | | Private Client Group | 571 | 564 | | Capital Markets | 275 | 275 | | Asset Management | 69 | 69 | | Bank | 529 | 529 | | **Total** | **1,444** | **1,437** | [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=47&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) This section provides a comprehensive overview of the company's financial performance and condition, including an executive summary, segment results, financial condition analysis, liquidity, capital resources, regulatory updates, and risk management strategies [Factors affecting "forward-looking statements"](index=52&type=section&id=Factors%20affecting%20%22forward-looking%20statements%22) This section cautions that forward-looking statements involve risks and uncertainties, and actual results may differ materially from expectations - Forward-looking statements involve risks, uncertainties, and assumptions, and actual results may differ materially from those expressed[225](index=225&type=chunk) - Investors are cautioned not to unduly rely on forward-looking statements and to carefully consider risks described in SEC filings[225](index=225&type=chunk) - The company expressly disclaims any obligation to update any forward-looking statement[225](index=225&type=chunk) [Introduction](index=52&type=section&id=Introduction) This introduction explains that the MD&A supplements financial statements, highlighting the impact of economic conditions and market factors on company results - The MD&A supplements the condensed consolidated financial statements to help readers understand operations and financial condition[226](index=226&type=chunk) - Company results are highly correlated to general economic conditions, U.S. equity and fixed income markets, changes in interest rates, market volatility, and credit trends[227](index=227&type=chunk) - Overall market conditions, economic, political, and regulatory trends, and industry competition are unpredictable factors beyond the company's control[227](index=227&type=chunk) [Executive overview](index=52&type=section&id=Executive%20overview) This overview summarizes key financial performance metrics for the quarter, including net revenues, pre-tax income, EPS, and return on equity Key Financial Performance (Q1 FY2024 vs. Q1 FY2023) | Metric | Q1 FY2024 ($M) | Q1 FY2023 ($M) | % Change | | :---------------------------------------- | :------------- | :------------- | :------- | | Net revenues | 3,013 | 2,786 | 8% | | Pre-tax income | 630 | 652 | (3)% | | Net income available to common shareholders | 497 | 507 | (2)% | | Diluted EPS ($) | 2.32 | 2.30 | 1% | | Annualized ROCE | 19.1% | 21.3% | (2.2) pp | | Annualized ROTCE | 23.0% | 26.2% | (3.2) pp | - Net revenue increase was driven by higher asset management fees and brokerage revenues, partially offset by a **3% decrease** in combined net interest income and RJBDP fees due to increased interest expense from a shift to higher-cost deposits[229](index=229&type=chunk) - Compensation, commissions and benefits expense increased **11%**, leading to a compensation ratio of **63.8%** (vs. **62.3%** YoY)[230](index=230&type=chunk) - Non-compensation expenses increased **16%**, partly due to a **$32 million** prior-year insurance settlement and a **$9 million** FDIC special assessment[230](index=230&type=chunk) - The company anticipates a further decline of an estimated **5%** in combined net interest income and RJBDP fees in Q2 FY2024 due to lower net interest income in the Bank segment[232](index=232&type=chunk) [Reconciliation of non-GAAP financial measures to GAAP financial measures](index=55&type=section&id=Reconciliation%20of%20non-GAAP%20financial%20measures%20to%20GAAP%20financial%20measures) This section provides a reconciliation of non-GAAP financial measures, such as adjusted net income and adjusted return on equity, to their GAAP equivalents Adjusted Net Income Available to Common Shareholders (Three months ended December 31) | $ in millions, except per share amounts | 2023 | 2022 | | :-------------------------------------- | :--- | :--- | | Net income available to common shareholders | 497 | 507 | | Total non-GAAP adjustments, net of tax | 17 | (2) | | **Adjusted net income available to common shareholders** | **514** | **505** | Adjusted Diluted Earnings Per Common Share (Three months ended December 31) | $ in millions, except per share amounts | 2023 | 2022 | | :-------------------------------------- | :--- | :--- | | Diluted earnings per common share | $2.32 | $2.30 | | Total non-GAAP adjustments, net of tax | 0.08 | (0.01) | | **Adjusted diluted earnings per common share** | **$2.40** | **$2.29** | Adjusted Return on Common Equity and Tangible Common Equity (Three months ended December 31) | Metric | 2023 | 2022 | | :-------------------------------------- | :--- | :--- | | Adjusted return on common equity | 19.7 % | 21.2 % | | Adjusted return on tangible common equity | 23.8 % | 26.1 % | [Net interest analysis](index=57&type=section&id=Net%20interest%20analysis) This analysis details the drivers of net interest income and net interest margin, including changes in interest-earning assets and interest-bearing liabilities - Combined net interest income and RJBDP fees from third-party banks decreased **3%** to **$698 million** for Q1 FY2024 compared with the prior-year quarter[241](index=241&type=chunk) - The decrease was primarily due to a significant increase in interest expense, resulting from a shift in the mix of deposit balances in the Bank segment towards higher-cost ESP balances[241](index=241&type=chunk) Consolidated Average Interest-Earning Assets and Interest-Bearing Liabilities (Q1 FY2024 vs. Q1 FY2023) | Category | Average daily balance 2023 ($M) | Annualized average rate 2023 | Average daily balance 2022 ($M) | Annualized average rate 2022 | | :------------------------------------ | :------------------------------ | :--------------------------- | :------------------------------ | :--------------------------- | | Total interest-earning assets | 73,014 | 5.69 % | 72,719 | 4.48 % | | Total interest-bearing liabilities | 63,997 | 3.15 % | 64,086 | 1.47 % | | Firmwide net interest income | 546 | N/A | 586 | N/A | | Firmwide net interest margin | 2.97 % | N/A | 3.19 % | N/A | [Results of operations](index=55&type=section&id=Results%20of%20operations) This section provides a detailed breakdown of the financial performance of each of the company's five operating segments for the quarter [Private Client Group](index=60&type=section&id=Private%20Client%20Group) This section details the operating results of the Private Client Group, including net revenues, pre-tax income, and client asset balances Private Client Group Operating Results (Three months ended December 31) | $ in millions | 2023 | 2022 | % change | | :--------------------------------- | :--- | :--- | :------- | | Net revenues | 2,226 | 2,063 | 8 % | | Pre-tax income | 439 | 434 | 1 % | | Asset management and related administrative fees | 1,191 | 1,053 | 13 % | | Total brokerage revenues | 382 | 345 | 11 % | | Total account and service fees | 546 | 563 | (3)% | PCG Client Asset Balances (As of December 31) | $ in billions | 2023 | 2022 | | :--------------------------------- | :--- | :--- | | Assets under administration ("AUA") | 1,310.5 | 1,114.3 | | Assets in fee-based accounts | 746.6 | 633.1 | - PCG AUA and PCG assets in fee-based accounts each increased **9%** compared with September 30, 2023, due to market appreciation and strong net inflows of client assets[257](index=257&type=chunk) Clients' Domestic Cash Sweep and ESP Balances (As of December 31) | $ in millions | 2023 | 2022 | | :--------------------------------- | :--- | :--- | | RJBDP: Bank segment | 23,912 | 39,098 | | RJBDP: Third-party banks | 17,820 | 18,231 | | Subtotal RJBDP | 41,732 | 57,329 | | ESP | 14,476 | — | | **Total clients' domestic cash sweep and ESP balances** | **57,973** | **60,382** | [Capital Markets](index=64&type=section&id=Capital%20Markets) This section presents the operating results for the Capital Markets segment, focusing on net revenues, pre-tax income, and investment banking performance Capital Markets Operating Results (Three months ended December 31) | $ in millions | 2023 | 2022 | % change | | :--------------------------------- | :--- | :--- | :------- | | Net revenues | 338 | 295 | 15 % | | Pre-tax income/(loss) | 3 | (16) | NM | | Total brokerage revenues | 140 | 134 | 4 % | | Total investment banking | 170 | 133 | 28 % | - Investment banking revenues increased **$37 million (28%)** compared with the prior-year quarter, reflecting improved market conditions despite ongoing uncertainty[277](index=277&type=chunk) - Compensation-related expenses increased **$25 million (12%)** primarily due to the increase in revenues and annual cost increases[277](index=277&type=chunk) [Asset Management](index=65&type=section&id=Asset%20Management) This section outlines the operating results for the Asset Management segment, including net revenues, pre-tax income, and financial assets under management Asset Management Operating Results (Three months ended December 31) | $ in millions | 2023 | 2022 | % change | | :--------------------------------- | :--- | :--- | :------- | | Net revenues | 235 | 207 | 14 % | | Pre-tax income | 93 | 80 | 16 % | | Total asset management and related administrative fees | 224 | 197 | 14 % | Financial Assets Under Management (As of December 31) | $ in billions | 2023 | 2022 | | :--------------------------------- | :--- | :--- | | AMS | 154.2 | 129.5 | | RJIM | 73.3 | 67.4 | | Subtotal financial assets under management | 227.5 | 196.9 | | Less: Assets managed for affiliated entities | (12.5) | (11.0) | | **Total financial assets under management** | **215.0** | **185.9** | - Total financial assets under management increased to **$227.5 billion** as of December 31, 2023, from **$207.9 billion** at the beginning of the period, with **$18.8 billion** in net market appreciation[286](index=286&type=chunk) - Assets held in non-discretionary asset-based programs increased to **$431.4 billion** as of December 31, 2023, from **$391.1 billion** at September 30, 2023, primarily due to market appreciation, successful financial advisor recruiting and retention, and client migration to fee-based accounts[292](index=292&type=chunk) [Bank](index=68&type=section&id=Bank) This section details the operating results for the Bank segment, including net revenues, pre-tax income, net interest income, and net interest margin Bank Operating Results (Three months ended December 31) | $ in millions | 2023 | 2022 | % change | | :--------------------------------- | :--- | :--- | :------- | | Net revenues | 441 | 508 | (13)% | | Pre-tax income | 92 | 136 | (32)% | | Net interest income | 426 | 491 | (13)% | | Bank loan provision for credit losses | 12 | 14 | (14)% | - Net interest income decreased **$65 million (13%)** primarily due to increased interest expense resulting from a higher-cost mix of deposits, as balances from the ESP replaced a portion of lower-cost RJBDP cash sweep balances[302](index=302&type=chunk) - The net interest margin decreased to **2.74%** from **3.36%** for the prior-year quarter[302](index=302&type=chunk) - Non-compensation expenses, excluding the bank loan provision for credit losses, decreased **$24 million (8%)**, primarily due to a decrease in RJBDP fees paid to PCG, partially offset by a **$9 million** FDIC special assessment[305](index=305&type=chunk) [Other](index=69&type=section&id=Other) This section covers the operating results for the 'Other' segment, including net revenues and pre-tax income, and factors influencing their changes Other Segment Operating Results (Three months ended December 31) | $ in millions | 2023 | 2022 | % change | | :--------------------------------- | :--- | :--- | :------- | | Net revenues | 26 | 9 | 189 % | | Pre-tax income | 3 | 18 | (83)% | - Pre-tax income decreased **$15 million (83%)** compared with the prior-year quarter[308](index=308&type=chunk) - Net revenues increased **$17 million** primarily due to an increase in interest income earned as a result of higher short-term interest rates applicable to corporate cash balances[308](index=308&type=chunk) - Non-interest expenses increased **$32 million**, primarily due to a **$32 million** insurance settlement received during the prior-year quarter that did not recur in the current-year quarter[309](index=309&type=chunk) [Statement of financial condition analysis](index=69&type=section&id=Statement%20of%20financial%20condition%20analysis) This analysis reviews changes in total assets and liabilities, identifying key drivers such as cash, bank loans, bank deposits, and brokerage client payables - Total assets increased **2%** to **$80.13 billion** as of December 31, 2023, from **$78.36 billion** at September 30, 2023[311](index=311&type=chunk) - Key asset increases include cash and cash equivalents (**+$893 million**), assets segregated for regulatory purposes and restricted cash (**+$496 million**), and bank loans, net (**+$407 million**)[311](index=311&type=chunk) - Total liabilities increased **2%** to **$69.35 billion** as of December 31, 2023, from **$68.17 billion** at September 30, 2023[312](index=312&type=chunk) - Key liability changes include an increase in bank deposits (**+$1.19 billion**) and brokerage client payables (**+$346 million**), partially offset by a decrease in accrued compensation, commissions, and benefits (**-$418 million**)[312](index=312&type=chunk) [Liquidity and capital resources](index=70&type=section&id=Liquidity%20and%20capital%20resources) This section discusses the company's liquidity position, capital adequacy, available credit facilities, and credit ratings, highlighting financial strength - RJF maintains substantial liquidity with **$2.08 billion** of corporate cash as of December 31, 2023[232](index=232&type=chunk)[326](index=326&type=chunk) - Liquidity is principally available from RJ&A and Raymond James Bank, both of which significantly exceed minimum regulatory capital requirements and internal targets[333](index=333&type=chunk)[334](index=334&type=chunk) - The company had **$1 billion** in FHLB borrowings outstanding at December 31, 2023, and an additional **$9.37 billion** in immediate credit available from the FHLB[340](index=340&type=chunk)[341](index=341&type=chunk) - A **$750 million** committed unsecured Credit Facility was available, with no outstanding borrowings as of December 31, 2023[337](index=337&type=chunk) Credit Ratings (As of Most Current Report) | | Fitch Ratings, Inc. | Moody's | Standard & Poor's Ratings Services | | :---------------------- | :------------------ | :------ | :--------------------------------- | | Issuer and senior long-term debt: Rating | A- | A3 | A | | Outlook | Stable | Stable | Stable | - Company-owned life insurance policies had a cash surrender value of **$1.01 billion** as of December 31, 2023, with **$909 million** readily borrowable without restriction[350](index=350&type=chunk) [Regulatory](index=76&type=section&id=Regulatory) This section confirms regulatory capital compliance for subsidiaries and discusses potential impacts of proposed new rules, such as the 'Retirement Security Rule' - All active regulated domestic and international subsidiaries had net capital in excess of minimum requirements as of December 31, 2023[354](index=354&type=chunk) - RJF, Raymond James Bank, and TriState Capital Bank were categorized as "well-capitalized" as of December 31, 2023[354](index=354&type=chunk) - The proposed "Retirement Security Rule" by the Department of Labor, if finalized, could have a material adverse effect on the company's business and results of operations[355](index=355&type=chunk) [Critical accounting estimates](index=76&type=section&id=Critical%20accounting%20estimates) This section highlights key accounting estimates requiring significant management judgment, particularly for legal and regulatory loss provisions and the allowance for credit losses - The preparation of financial statements requires significant management judgment and estimates, particularly for loss provisions related to legal and regulatory matters and the allowance for credit losses (ACL)[357](index=357&type=chunk)[358](index=358&type=chunk) - A hypothetical downside economic scenario could result in an approximate **$230 million** increase in the quantitative portion of the allowance for credit losses on bank loans[361](index=361&type=chunk) [Accounting standards update](index=77&type=section&id=Accounting%20standards%20update) This section details recent FASB Accounting Standards Updates related to segment reporting and income tax disclosures, and the company's evaluation of their impact - FASB issued ASU 2023-07 (segment reporting disclosures), effective for fiscal 2025, requiring disclosure of significant segment expenses[363](index=363&type=chunk) - FASB issued ASU 2023-09 (income tax disclosures), effective for fiscal 2026, enhancing tabular reconciliation of tax rates and disaggregating income taxes paid[364](index=364&type=chunk) - The company is evaluating the impact that this new guidance will have on its disclosures[363](index=363&type=chunk)[364](index=364&type=chunk) [Risk management](index=78&type=section&id=Risk%20management) This section describes the company's Enterprise Risk Management program, covering market, credit, liquidity, operational, model, and compliance risks - The company has a formal Enterprise Risk Management (ERM) program to assess and review aggregate risks across the firm, including market, credit, liquidity, operational, model, and compliance risks[366](index=366&type=chunk)[367](index=367&type=chunk) - Market risk from trading activities is managed through dollar-based and exposure-based limits, and Value-at-Risk (VaR) monitoring[373](index=373&type=chunk)[374](index=374&type=chunk) - Credit risk in the bank loan portfolio is managed through well-defined credit policies, uniform underwriting criteria, and ongoing risk monitoring and review processes[403](index=403&type=chunk) - The effective duration of the available-for-sale securities portfolio was approximately **3.37** as of December 31, 2023, indicating sensitivity to interest rate changes[387](index=387&type=chunk) - Delinquent residential mortgage loans (30+ days past due) were **0.09%** of outstanding balances as of December 31, 2023, comparing favorably to the national average of **1.88%**[416](index=416&type=chunk) [ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=83&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) This section refers to the "Risk management" section within Management's Discussion and Analysis for detailed quantitative and qualitative disclosures about market risk - Quantitative and qualitative disclosures about market risk are provided in the "Risk management" section of the MD&A[429](index=429&type=chunk) [ITEM 4. CONTROLS AND PROCEDURES](index=83&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management evaluated the effectiveness of disclosure controls and procedures, concluding they are effective with no material changes in internal control over financial reporting - Disclosure controls and procedures were evaluated and deemed effective as of December 31, 2023[431](index=431&type=chunk) - No material changes in internal control over financial reporting occurred during the three months ended December 31, 2023[432](index=432&type=chunk) PART II. OTHER INFORMATION This section covers legal proceedings, risk factors, equity security sales, defaults, mine safety, other information, and exhibits [ITEM 1. LEGAL PROCEEDINGS](index=83&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) This section states that there are no legal proceedings to report - No legal proceedings to report[434](index=434&type=chunk) [ITEM 1A. RISK FACTORS](index=83&type=section&id=ITEM%201A.%20RISK%20FACTORS) This section indicates that risk factors are not applicable for this quarterly report, typically referring to the annual 10-K for such disclosures - Risk factors are not applicable for this quarterly report[435](index=435&type=chunk) [ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](index=84&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) The company reported no unregistered sales of securities, but repurchased 1.49 million common shares, with a new $1.5 billion repurchase authorization approved - No unregistered sales of equity securities occurred for the three months ended December 31, 2023[436](index=436&type=chunk) Purchases of Common Stock (Three months ended December 31, 2023) | | Total number of shares purchased | Average price per share | Number of shares purchased as part of publicly announced plans or programs | Approximate dollar value (in millions) at each month-end of securities that may yet be purchased under the plans or programs | | :--------------------------------- | :----------------------- | :---------------------- | :----------------------------------------------------------------------- | :----------------------------------------------------------------------------------------------------------------------- | | October 1, 2023 – October 31, 2023 | 2,602 | $100.13 | — | $750 | | November 1, 2023 – November 30, 2023 | 516,466 | $99.63 | 439,678 | $1,500 | | December 1, 2023 – December 31, 2023 | 970,735 | $110.03 | 968,566 | $1,393 | | **First quarter** | **1,489,803** | **$106.40** | **1,408,244** | N/A | - In November 2023, the Board of Directors authorized common stock repurchases of up to **$1.5 billion**, which replaced the previous authorization[438](index=438&type=chunk) - As of December 31, 2023, **$1.39 billion** remained available[438](index=438&type=chunk) [ITEM 3. DEFAULTS UPON SENIOR SECURITIES](index=89&type=section&id=ITEM%203.%20DEFAULTS%20UPON%20SENIOR%20SECURITIES) This section states that there were no defaults upon senior securities - No defaults upon senior securities[441](index=441&type=chunk) [ITEM 4. MINE SAFETY DISCLOSURES](index=89&type=section&id=ITEM%204.%20MINE%20SAFETY%20DISCLOSURES) This section states that mine safety disclosures are not applicable - Mine safety disclosures are not applicable[442](index=442&type=chunk) [ITEM 5. OTHER INFORMATION](index=89&type=section&id=ITEM%205.%20OTHER%20INFORMATION) No directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarter - No directors or officers ado

Raymond James Financial, Inc. (NYSE:RJF) Q1 2024 Earnings Conference Call January 24, 2024 5:00 PM ET Company Participants Kristina Waugh - Senior Vice President, Investor Relations Paul Reilly - Chair and Chief Executive Officer Paul Shoukry - Chief Financial Officer Conference Call Participants Michael Cho - JPMorgan Devin Ryan - JMP Securities Dan Fannon - Jefferies Kyle Voigt - KBW Brennan Hawken - UBS Steven Chubak - Wolfe Research James Mitchell - Seaport Research Partners Mark McLaughlin - Bank of Am ...

Year-over-year change: (4)% Sequential change: 3% 9 Firmwide Net Interest Income RJBDP Fees (Third-Party Banks)* RAYMOND JAMES $ IN MILLIONS AVERAGE YIELD ON RJBDP (THIRD-PARTY BANKS)** 2.72% 3.25% 3.37% 3.60% 3.66% 1Q23 2Q23 3Q23 4Q23 1Q24 Firmwide NIM Bank Segment NIM TOTAL COMPENSATION RATIO** *The three months ended December 31, 2022 included the favorable impact of a $32 million insurance settlement received during the quarter related to a previously settled litigation matter. In the computation of our ...

PART I. [Item 1. Business](index=3&type=section&id=Item%201.%20Business) Raymond James Financial, Inc. (RJF) is a diversified financial services company operating primarily in the U.S., Canada, and the U.K., offering private client, capital markets, asset management, and banking services - RJF is a leading diversified financial services company providing private client group, capital markets, asset management, banking and other services, operating predominantly in the U.S., Canada, and the U.K.[11](index=11&type=chunk) - RJF operates through five segments: Private Client Group (PCG), Capital Markets, Asset Management, Bank, and Other[15](index=15&type=chunk) - As of September 30, 2023, RJF had approximately **18,000 associates** (including **3,693 employee financial advisors**) and **5,019 independent advisors**, reflecting a growth of approximately **1,000 associates** from the prior year[51](index=51&type=chunk) - The financial services industry is intensely competitive, with RJF competing on the basis of quality of associates, services, product selection, performance, location, and reputation, facing competition from larger firms, web-based services, and fintechs[65](index=65&type=chunk) - RJF is subject to extensive regulation by U.S. federal and state laws, as well as international laws, including supervision by the Federal Reserve, FDIC, SEC, FINRA, and foreign regulatory bodies like the FCA and CIRO[68](index=68&type=chunk)[69](index=69&type=chunk)[70](index=70&type=chunk)[93](index=93&type=chunk)[100](index=100&type=chunk)[101](index=101&type=chunk)[102](index=102&type=chunk) [Item 1A. Risk factors](index=21&type=section&id=Item%201A.%20Risk%20factors) RJF's operations and financial results are exposed to various risks, including reputational damage, cyber-attacks, funding issues, credit defaults, market volatility, and regulatory changes - Damage to RJF's reputation, stemming from issues like conflicts of interest, regulatory non-compliance, ethical concerns, cybersecurity breaches, or associate misconduct, could significantly harm business prospects and client relationships[122](index=122&type=chunk) - Cyber-attacks or security breaches of technology systems, including those of third-party vendors, pose significant liability and reputational harm, with increasing sophistication of attacks and new SEC disclosure requirements effective December 18, 2023[123](index=123&type=chunk)[124](index=124&type=chunk)[125](index=125&type=chunk)[126](index=126&type=chunk)[127](index=127&type=chunk)[128](index=128&type=chunk)[129](index=129&type=chunk) - An inability to maintain adequate funding and liquidity, or access to capital, could negatively affect RJF's financial condition, potentially requiring scaling back operations, selling assets, or limiting shareholder distributions[130](index=130&type=chunk)[131](index=131&type=chunk) - RJF is exposed to credit risk from third parties failing to meet obligations, including clients with margin loans and borrowers of SBL, C&I, CRE, REIT, residential mortgage, and tax-exempt loans, with concentrations in specific activities or geographies exacerbating this risk[142](index=142&type=chunk)[143](index=143&type=chunk)[144](index=144&type=chunk)[145](index=145&type=chunk) - Market risk, particularly interest rate risk, can adversely affect asset and liability values, trading inventories, and net interest spread, with rising rates increasing interest income and servicing fees but also increasing funding costs[146](index=146&type=chunk)[147](index=147&type=chunk)[148](index=148&type=chunk)[149](index=149&type=chunk) - The financial services industry is intensely competitive, with new entrants like fintechs and evolving technology requiring continuous adaptation and potentially leading to pricing pressures and increased costs[168](index=168&type=chunk)[169](index=169&type=chunk)[170](index=170&type=chunk)[171](index=171&type=chunk) - Regulatory actions, including new and proposed regulations (e.g., CRA amendments, Volcker Rule, standard of care for broker-dealers), can increase compliance costs, limit business opportunities, and result in significant fines or sanctions[190](index=190&type=chunk)[191](index=191&type=chunk)[192](index=192&type=chunk)[193](index=193&type=chunk)[194](index=194&type=chunk)[195](index=195&type=chunk)[196](index=196&type=chunk)[197](index=197&type=chunk)[198](index=198&type=chunk)[199](index=199&type=chunk)[200](index=200&type=chunk)[201](index=201&type=chunk)[202](index=202&type=chunk)[203](index=203&type=chunk)[204](index=204&type=chunk)[205](index=205&type=chunk)[206](index=206&type=chunk) [Item 1B. Unresolved staff comments](index=35&type=section&id=Item%201B.%20Unresolved%20staff%20comments) There are no unresolved staff comments to report [Item 2. Properties](index=35&type=section&id=Item%202.%20Properties) RJF operates its principal business from an owned 1.25 million square foot office space in St. Petersburg, Florida, with additional owned facilities and leased spaces across the U.S., Canada, and Europe - RJF's principal operations are located in St. Petersburg, Florida (**1.25 million sq ft owned**), with other owned facilities in Southfield, Michigan (**90,000 sq ft**), and a data center in Denver, Colorado (**40,000 sq ft**)[213](index=213&type=chunk) - The company leases premises in major metropolitan areas across the U.S. (e.g., Memphis, New York City, Pittsburgh, Chicago, Houston, Boston), Canada (Toronto, Vancouver), the U.K. (London), and Germany, with lease expiration dates through fiscal year 2036[214](index=214&type=chunk) - RJF owns approximately **65 acres of land** in Pasco County, Florida, for potential future development[214](index=214&type=chunk) [Item 3. Legal proceedings](index=36&type=section&id=Item%203.%20Legal%20proceedings) RJF is routinely involved in various legal actions and regulatory reviews, with outcomes inherently unpredictable but not expected to materially affect consolidated financial condition - RJF is a defendant in various legal actions, including arbitrations and class actions, and is subject to regular reviews and investigations by regulatory authorities and self-regulatory organizations[215](index=215&type=chunk)[216](index=216&type=chunk) - The level of litigation and investigatory activity in the financial services industry remains significant, with potential sanctions ranging from non-monetary censures to fines and business suspensions[216](index=216&type=chunk)[217](index=217&type=chunk) - Management believes the outcome of current litigation and regulatory proceedings will not materially adversely affect the consolidated financial condition, but could be material to operating results and cash flows for a specific future period[218](index=218&type=chunk) [Item 4. Mine safety disclosures](index=36&type=section&id=Item%204.%20Mine%20safety%20disclosures) This item is not applicable to Raymond James Financial, Inc PART II. [Item 5. Market for registrant's common equity, related shareholder matters and issuer purchases of equity securities](index=36&type=section&id=Item%205.%20Market%20for%20registrant's%20common%20equity%2C%20related%20shareholder%20matters%20and%20issuer%20purchases%20of%20equity%20securities) RJF's common stock trades on the NYSE, with a $1.5 billion repurchase program authorized in December 2022, and 8.35 million shares repurchased in FY2023 - RJF's common stock is traded on the NYSE under the symbol **'RJF'**. As of November 17, 2023, there were **343 holders of record** and **208,606,759 shares outstanding**[5](index=5&type=chunk)[222](index=222&type=chunk) - In December 2022, the Board of Directors authorized common stock repurchases of up to **$1.5 billion**, replacing the previous authorization[226](index=226&type=chunk) Common Stock Repurchases (Fiscal Year Ended September 30, 2023) | Period | Total Shares Purchased | Average Price Per Share | Shares Purchased Under Publicly Announced Plans | Approximate Dollar Value Remaining Under Plans (in millions) | | :--------------------------------- | :--------------------- | :---------------------- | :-------------------------------------------- | :---------------------------------------------------------- | | October 1, 2022 – October 31, 2022 | 358,103 | $105.94 | 354,313 | $800 | | November 1, 2022 – November 30, 2022 | 78,798 | $120.60 | — | $800 | | December 1, 2022 – December 31, 2022 | 937,747 | $106.64 | 937,737 | $1,400 | | **First quarter** | **1,374,648** | **$107.26** | **1,292,050** | | | January 1, 2023 – January 31, 2023 | 53,430 | $114.90 | — | $1,400 | | February 1, 2023 – February 28, 2023 | 13,586 | $113.49 | — | $1,400 | | March 1, 2023 – March 31, 2023 | 3,745,485 | $93.45 | 3,745,388 | $1,050 | | **Second quarter** | **3,812,501** | **$93.82** | **3,745,388** | | | April 1, 2023 – April 30, 2023 | 111,500 | $89.67 | 111,500 | $1,040 | | May 1, 2023 – May 31, 2023 | 2,069,035 | $87.79 | 2,069,035 | $858 | | June 1, 2023 – June 30, 2023 | 1,135,079 | $95.55 | 1,133,895 | $750 | | **Third quarter** | **3,315,614** | **$90.51** | **3,314,430** | | | July 1, 2023 – July 31, 2023 | — | $— | — | $750 | | August 1, 2023 – August 31, 2023 | — | $— | — | $750 | | September 1, 2023 – September 30, 2023 | 928 | $90.15 | — | $750 | | **Fourth quarter** | **928** | **$90.15** | **—** | | | **Fiscal year total** | **8,503,691** | **$95.43** | **8,351,868** | | - During the twelve months ended September 30, 2023, RJF repurchased **8.35 million shares** of common stock for **$788 million** at an average price of **$94 per share**, with **$750 million** remaining under the authorization[240](index=240&type=chunk) [Item 6. Reserved](index=37&type=section&id=Item%206.%20Reserved) This item is reserved and contains no information [Item 7. Management's discussion and analysis of financial condition and results of operations](index=38&type=section&id=Item%207.%20Management's%20discussion%20and%20analysis%20of%20financial%20condition%20and%20results%20of%20operations) This section discusses RJF's financial condition and results, highlighting macroeconomic impacts, interest rate changes, and strong capital positions, with a cautious future outlook Key Financial Highlights (Fiscal Year Ended September 30, 2023 vs. 2022) | Metric | FY2023 | FY2022 | Change (%) | | :------------------------------------ | :------------- | :------------- | :--------- | | Net Revenues | $11.62 billion | $11.00 billion | 6% | | Pre-tax Income | $2.28 billion | $2.02 billion | 13% | | Net Income Available to Common Shareholders | $1.73 billion | $1.50 billion | 15% | | Earnings Per Diluted Share | $7.97 | $6.98 | 14% | | Return on Common Equity (ROCE) | 17.7% | 17.0% | 0.7 pp | | Return on Tangible Common Equity (ROTCE) | 21.7% | 19.8% | 1.9 pp | | Adjusted Net Income Available to Common Shareholders | $1.81 billion | $1.62 billion | 12% | | Adjusted Earnings Per Diluted Share | $8.30 | $7.49 | 11% | | Adjusted ROCE | 18.4% | 18.2% | 0.2 pp | | Adjusted ROTCE | 22.5% | 21.1% | 1.4 pp | | Compensation Ratio | 62.8% | 66.6% | (3.8) pp | | Adjusted Compensation Ratio | 62.1% | 66.1% | (4.0) pp | - The increase in net revenues was primarily driven by significantly higher short-term interest rates benefiting net interest income and RJBDP fees, along with incremental revenues from prior-year acquisitions (Charles Stanley, TriState Capital, SumRidge Partners)[235](index=235&type=chunk) - Non-compensation expenses increased by **$388 million (23%)**, mainly due to elevated provisions for legal and regulatory matters (**$175 million**, including SEC off-platform communications sweep), acquisition-related expenses, and increases in communications, information processing, and business development expenses[238](index=238&type=chunk) - The bank loan provision for credit losses increased to **$132 million** in FY2023 from **$100 million** in FY2022, reflecting a weakened macroeconomic outlook for certain loan portfolios (especially commercial real estate prices), charge-offs, and loan downgrades[238](index=238&type=chunk) - As of September 30, 2023, RJF's **Tier 1 leverage ratio was 11.9%** and **Total capital ratio was 22.8%**, both more than double the regulatory requirements for being considered well-capitalized[241](index=241&type=chunk) - RJF had substantial liquidity with **$2.08 billion of corporate cash** and access to nearly **$9.3 billion of FHLB borrowing capacity** in the Bank segment as of September 30, 2023[241](index=241&type=chunk) - The firm expects economic uncertainty in the near term, anticipating negative impacts on Q1 2024 asset management fees (due to lower fee-based account balances), a **5% decline** in combined net interest income and RJBDP fees (due to higher funding costs), and continued headwinds for investment banking and fixed income brokerage revenues[241](index=241&type=chunk) [Introduction](index=45&type=section&id=Introduction) RJF's financial performance is closely tied to general economic conditions, U.S. equity and fixed income markets, interest rates, market volatility, and lending markets - RJF operates as a financial holding company and bank holding company, with results highly correlated to general economic conditions, U.S. equity and fixed income markets, interest rate changes, market volatility, and corporate/mortgage lending markets[234](index=234&type=chunk) [Executive overview](index=45&type=section&id=Executive%20overview) RJF's FY2023 saw increased net revenues and net income driven by higher interest rates and acquisitions, despite rising non-compensation expenses and credit loss provisions Key Financial Highlights (Fiscal Year Ended September 30, 2023 vs. 2022) | Metric | FY2023 | FY2022 | Change (%) | | :------------------------------------ | :------------- | :------------- | :--------- | | Net Revenues | $11.62 billion | $11.00 billion | 6% | | Pre-tax Income | $2.28 billion | $2.02 billion | 13% | | Net Income Available to Common Shareholders | $1.73 billion | $1.50 billion | 15% | | Earnings Per Diluted Share | $7.97 | $6.98 | 14% | | Return on Common Equity (ROCE) | 17.7% | 17.0% | 0.7 pp | | Return on Tangible Common Equity (ROTCE) | 21.7% | 19.8% | 1.9 pp | | Adjusted Net Income Available to Common Shareholders | $1.81 billion | $1.62 billion | 12% | | Adjusted Earnings Per Diluted Share | $8.30 | $7.49 | 11% | | Adjusted ROCE | 18.4% | 18.2% | 0.2 pp | | Adjusted ROTCE | 22.5% | 21.1% | 1.4 pp | | Compensation Ratio | 62.8% | 66.6% | (3.8) pp | | Adjusted Compensation Ratio | 62.1% | 66.1% | (4.0) pp | - Net revenues increased due to higher short-term interest rates impacting net interest income and RJBDP fees, and incremental revenues from prior-year acquisitions (Charles Stanley, TriState Capital, SumRidge Partners)[235](index=235&type=chunk) - Compensation, commissions, and benefits expense remained flat year-over-year, as decreased compensable revenues were offset by acquisition-related expenses and growth-driven compensation costs[236](index=236&type=chunk) - Non-compensation expenses rose by **$388 million (23%)**, primarily due to elevated legal and regulatory provisions (**$175 million**, including SEC off-platform communications sweep), acquisition-related expenses, and increases in communications, information processing, and business development[238](index=238&type=chunk) - The bank loan provision for credit losses was **$132 million** in FY2023, up from **$100 million** in FY2022, reflecting a weakened macroeconomic outlook for certain loan portfolios (e.g., commercial real estate prices), charge-offs, and loan downgrades[238](index=238&type=chunk) - The effective income tax rate decreased to **23.7%** in FY2023 from **25.4%** in FY2022, mainly due to non-taxable valuation gains on company-owned life insurance policies, partially offset by non-deductible fines and penalties[239](index=239&type=chunk) - RJF repurchased **8.35 million common shares** for **$788 million** in FY2023, with **$750 million** remaining under the **$1.5 billion** authorization, and plans to continue repurchases in FY2024 to offset dilution[240](index=240&type=chunk) - As of September 30, 2023, RJF's **Tier 1 leverage ratio was 11.9%** and **Total capital ratio was 22.8%**, both significantly above regulatory requirements, supported by **$2.08 billion in corporate cash** and **$9.3 billion in FHLB borrowing capacity**[241](index=241&type=chunk) - Outlook for Q1 2024 includes anticipated negative impacts on asset management fees (due to lower fee-based account balances), a **5% decline** in combined net interest income and RJBDP fees (due to higher funding costs from ESP), and continued market uncertainty affecting investment banking and fixed income brokerage revenues[241](index=241&type=chunk) [Reconciliation of non-GAAP financial measures to GAAP financial measures](index=47&type=section&id=Reconciliation%20of%20non-GAAP%20financial%20measures%20to%20GAAP%20financial%20measures) RJF uses non-GAAP financial measures to provide clearer insights into core operating results by excluding certain material items - RJF uses non-GAAP financial measures like ROTCE, adjusted net income, adjusted EPS, adjusted ROCE, adjusted ROTCE, and adjusted compensation ratio to provide useful information to management and investors by excluding certain material items not indicative of core operating results[243](index=243&type=chunk) Reconciliation of Net Income Available to Common Shareholders (in millions) | Metric | FY2023 | FY2022 | FY2021 | | :------------------------------------------ | :------- | :------- | :------- | | Net income available to common shareholders | $1,733 | $1,505 | $1,403 | | Total non-GAAP adjustments, net of tax | $73 | $110 | $137 | | **Adjusted net income available to common shareholders** | **$1,806** | **$1,615** | **$1,540** | Reconciliation of Diluted Earnings Per Common Share | Metric | FY2023 | FY2022 | FY2021 | | :------------------------------------------ | :------- | :------- | :------- | | Diluted earnings per common share | $7.97 | $6.98 | $6.63 | | Total non-GAAP adjustments, net of tax | $0.33 | $0.51 | $0.65 | | **Adjusted diluted earnings per common share** | **$8.30** | **$7.49** | **$7.28** | Reconciliation of Return on Common Equity and Tangible Common Equity | Metric | FY2023 | FY2022 | FY2021 | | :------------------------------------ | :------- | :------- | :------- | | Return on common equity | 17.7% | 17.0% | 18.4% | | Adjusted return on common equity | 18.4% | 18.2% | 20.0% | | Return on tangible common equity | 21.7% | 19.8% | 20.4% | | Adjusted return on tangible common equity | 22.5% | 21.1% | 22.2% | [Net interest analysis](index=50&type=section&id=Net%20interest%20analysis) Rapid Federal Reserve rate hikes significantly increased RJF's combined net interest income and RJBDP fees in FY2023, despite rising deposit costs in the latter half - The Federal Reserve rapidly increased its benchmark short-term interest rates from **0.25%-0.50%** in March 2022 to **5.25%-5.50%** by September 30, 2023, significantly impacting RJF's interest-sensitive assets and liabilities[250](index=250&type=chunk) Federal Funds Target Rate Schedule (Fiscal Years 2022-2023) | RJF Fiscal Quarter Ended | Effective Date of Interest Rate Action | Increase in Interest Rates (in basis points) | Federal Funds Target Rate | | :----------------------- | :----------------------------------- | :----------------------------------------- | :------------------------ | | March 31, 2022 | March 17, 2022 | 25 | 0.25% - 0.50% | | June 30, 2022 | May 5, 2022 | 50 | 0.75% - 1.00% | | June 30, 2022 | June 16, 2022 | 75 | 1.50% - 1.75% | | September 30, 2022 | July 28, 2022 | 75 | 2.25% - 2.50% | | September 30, 2022 | September 22, 2022 | 75 | 3.00% - 3.25% | | December 31, 2022 | November 3, 2022 | 75 | 3.75% - 4.00% | | December 31, 2022 | December 15, 2022 | 50 | 4.25% - 4.50% | | March 31, 2023 | February 2, 2023 | 25 | 4.50% - 4.75% | | March 31, 2023 | March 23, 2023 | 25 | 4.75% - 5.00% | | June 30, 2023 | May 4, 2023 | 25 | 5.00% - 5.25% | | September 30, 2023 | July 27, 2023 | 25 | 5.25% - 5.50% | - Combined net interest income and RJBDP fees from third-party banks increased by **$1.47 billion (104%)** in fiscal 2023 compared to the prior year, driven by higher short-term interest rates[252](index=252&type=chunk) - Despite overall rate increases, net interest income and net interest margin decreased in the second half of fiscal 2023 compared to the first half, due to a more rapid increase in deposit costs, primarily from the Enhanced Savings Program[252](index=252&type=chunk) Firmwide Net Interest Income and Margin (FY2023 vs. FY2022) | Metric | FY2023 | FY2022 | Change | | :------------------------------------ | :------------- | :------------- | :------------- | | Total interest-earning assets (average) | $71,944 million | $68,045 million | +$3,899 million | | Total interest-bearing liabilities (average) | $63,604 million | $58,845 million | +$4,759 million | | Firmwide net interest income | $2,375 million | $1,203 million | +$1,172 million | | Firmwide net interest margin | 3.30% | 1.77% | +1.53 pp | | Bank segment net interest margin | 3.28% | 2.39% | +0.89 pp | [Results of Operations](index=47&type=section&id=Results%20of%20Operations) This section details the financial performance of RJF's operating segments, including Private Client Group, Capital Markets, Asset Management, Bank, and Other [Private Client Group](index=47&type=section&id=Private%20Client%20Group) PCG net revenues and pre-tax income significantly increased in FY2023, driven by higher interest rates impacting account and service fees, despite lower asset management and brokerage revenues PCG Segment Net Revenues (FY2023 vs. FY2022) | Revenue Category | FY2023 (in millions) | FY2022 (in millions) | Change (%) | | :------------------------------------ | :------------------- | :------------------- | :--------- | | Asset management and related administrative fees | $4,545 | $4,710 | (4)% | | Total brokerage revenues | $1,434 | $1,516 | (5)% | | Total account and service fees | $2,237 | $1,207 | 85% | | Investment banking | $35 | $38 | (8)% | | Interest income | $455 | $249 | 83% | | All other | $48 | $32 | 50% | | **Total revenues** | **$8,754** | **$7,752** | **13%** | | Interest expense | ($100) | ($42) | 138% | | **Net revenues** | **$8,654** | **$7,710** | **12%** | - PCG net revenues increased **12% to $8.65 billion**, and pre-tax income increased **71% to $1.76 billion** in FY2023 compared to FY2022[283](index=283&type=chunk) - Asset management and related administrative fees decreased **4%** due to lower fee-based account balances at the start of quarterly billing periods, partially offset by Charles Stanley acquisition revenues[284](index=284&type=chunk) - Brokerage revenues decreased **5%**, primarily from lower trailing revenues from mutual fund and annuity products (market-driven) and reduced sales of equity, mutual/other fund, variable annuity, and insurance products, partially offset by higher fixed annuity and fixed income sales[285](index=285&type=chunk) - Account and service fees surged **85%** due to significantly higher short-term interest rates impacting RJBDP fees from both the Bank segment and third-party banks, despite a decline in average RJBDP balances[286](index=286&type=chunk) - Net interest income increased **83%** due to higher short-term interest rates on cash, segregated cash, and client margin account balances, partially offset by lower average balances[287](index=287&type=chunk) PCG Client Asset Balances (as of September 30) | Metric (in billions) | 2023 | 2022 | 2021 | | :------------------------------------ | :----- | :----- | :----- | | Assets Under Administration (AUA) | $1,201.2 | $1,039.0 | $1,115.4 | | RIA and Custody Services (RCS) AUA | $133.3 | $108.5 | $92.7 | | Assets in fee-based accounts | $683.2 | $586.0 | $627.1 | | RCS assets in fee-based accounts | $111.7 | $89.9 | $77.2 | | Percent of AUA in fee-based accounts | 56.9% | 56.4% | 56.2% | - PCG AUA and fee-based assets increased **16%** and **17%** respectively, driven by net equity market appreciation and strong net inflows from recruiting[272](index=272&type=chunk) PCG Financial Advisors (as of September 30) | Category | 2023 | 2022 | 2021 | | :----------------------- | :----- | :----- | :----- | | Employees | 3,693 | 3,638 | 3,461 | | Independent contractors | 5,019 | 5,043 | 5,021 | | **Total advisors** | **8,712** | **8,681** | **8,482** | - The total number of financial advisors increased to **8,712**, driven by new recruits and trainees exceeding departures[277](index=277&type=chunk) Clients' Domestic Cash Sweep and ESP Balances (as of September 30, in millions) | Category | 2023 | 2022 | 2021 | | :------------------------------------------ | :--------- | :--------- | :--------- | | RJBDP: Bank segment | $25,355 | $38,705 | $31,410 | | RJBDP: Third-party banks | $15,858 | $21,964 | $24,496 | | Subtotal RJBDP | $41,213 | $60,669 | $55,906 | | Client Interest Program (CIP) | $1,620 | $6,445 | $10,762 | | **Total clients' domestic cash sweep balances** | **$42,833** | **$67,114** | **$66,668** | | Enhanced Savings Program (ESP) | $13,592 | — | — | | **Total clients' domestic cash sweep and ESP balances** | **$56,425** | **$67,114** | **$66,668** | - Total clients' domestic cash sweep and ESP balances decreased **16%** due to client cash sorting to higher-yielding alternatives, partially offset by the launch of the ESP in March 2023, which attracted **$13.59 billion**[282](index=282&type=chunk) [Capital Markets](index=58&type=section&id=Capital%20Markets) Capital Markets experienced a significant decline in net revenues and a pre-tax loss in FY2023, primarily due to macroeconomic uncertainties impacting investment banking and brokerage activities Capital Markets Segment Net Revenues (FY2023 vs. FY2022) | Revenue Category | FY2023 (in millions) | FY2022 (in millions) | Change (%) | | :------------------------------------ | :------------------- | :------------------- | :--------- | | Total brokerage revenues | $475 | $590 | (19)% | | Total investment banking | $613 | $1,062 | (42)% | | Interest income | $88 | $36 | 144% | | Affordable housing investments business revenues | $109 | $127 | (14)% | | All other | $14 | $21 | (33)% | | **Total revenues** | **$1,299** | **$1,836** | **(29)%** | | Interest expense | ($85) | ($27) | 215% | | **Net revenues** | **$1,214** | **$1,809** | **(33)%** | | Pre-tax income/(loss) | ($91) | $415 | NM | | Compensation, commissions and benefits | $902 | $1,065 | (15)% | | Total non-compensation expenses | $403 | $329 | 22% | - Capital Markets net revenues decreased **33% to $1.21 billion**, resulting in a pre-tax loss of **$91 million** in FY2023, compared to a pre-tax income of **$415 million** in FY2022[297](index=297&type=chunk) - Investment banking revenues declined **42%** due to macroeconomic uncertainties and higher interest rates dampening capital markets activity, though activity improved in the fiscal fourth quarter[298](index=298&type=chunk) - Brokerage revenues decreased **19%**, primarily from lower fixed income brokerage activity due to challenging market conditions for depository institution clients, partially offset by incremental revenues from the SumRidge Partners acquisition[299](index=299&type=chunk) - Compensation-related expenses decreased **15%** due to lower revenues, partially offset by growth investments (including SumRidge Partners), higher salaries (inflationary/market pressures), and increased share-based compensation amortization[300](index=300&type=chunk) - Non-compensation expenses increased **22%**, mainly due to SumRidge Partners-related expenses, higher legal and regulatory provisions, and increased travel, event, and professional fees[301](index=301&type=chunk) [Asset Management](index=60&type=section&id=Asset%20Management) Asset Management net revenues and pre-tax income decreased in FY2023 due to lower fee-based assets, despite an increase in total financial assets under management from market appreciation and net inflows Asset Management Segment Net Revenues (FY2023 vs. FY2022) | Revenue Category | FY2023 (in millions) | FY2022 (in millions) | Change (%) | | :------------------------------------------ | :------------------- | :------------------- | :--------- | | Total asset management and related administrative fees | $846 | $882 | (4)% | | Account and service fees | $21 | $22 | (5)% | | All other | $18 | $10 | 80% | | **Net revenues** | **$885** | **$914** | **(3)%** | | Pre-tax income | $351 | $386 | (9)% | | Compensation, commissions and benefits | $198 | $194 | 2% | | Total non-compensation expenses | $336 | $334 | 1% | - Asset Management net revenues decreased **3% to $885 million**, and pre-tax income decreased **9% to $351 million** in FY2023 compared to FY2022[321](index=321&type=chunk) - Asset management and related administrative fees decreased **4%** due to lower assets in non-discretionary asset-based programs and AMS financial assets under management (market-driven depreciation), partially offset by incremental revenues from the Chartwell acquisition[322](index=322&type=chunk) Financial Assets Under Management (AUM) (as of September 30, in billions) | Category | 2023 | 2022 | 2021 | | :------------------------------------ | :----- | :----- | :----- | | AMS | $139.2 | $119.8 | $134.4 | | Raymond James Investment Management | $68.7 | $64.2 | $67.8 | | **Subtotal financial assets under management** | **$207.9** | **$184.0** | **$202.2** | | Less: Assets managed for affiliated entities | ($11.5) | ($10.2) | ($10.3) | | **Total financial assets under management** | **$196.4** | **$173.8** | **$191.9** | - Total financial assets under management increased to **$196.4 billion** as of September 30, 2023, from **$173.8 billion** in 2022, driven by **$15.7 billion in net market appreciation** and **$8.2 billion in net inflows** (AMS and Raymond James Investment Management)[313](index=313&type=chunk) Raymond James Investment Management AUM by Objective (as of September 30, 2023, in billions) | Objective | AUM | Average Fee Rate | | :---------- | :---- | :--------------- | | Equity | $23.0 | 0.56% | | Fixed income | $37.8 | 0.20% | | Balanced | $7.9 | 0.33% | | **Total** | **$68.7** | **0.34%** | [Bank](index=63&type=section&id=Bank) The Bank segment saw an 86% increase in net revenues driven by higher interest rates, but pre-tax income slightly decreased due to a significant rise in interest expense and credit loss provisions Bank Segment Net Revenues (FY2023 vs. FY2022) | Revenue Category | FY2023 (in millions) | FY2022 (in millions) | Change (%) | | :------------------------------------------ | :------------------- | :------------------- | :--------- | | Interest income | $3,098 | $1,209 | 156% | | Interest expense | ($1,141) | ($156) | 631% | | **Net interest income** | **$1,957** | **$1,053** | **86%** | | All other | $56 | $31 | 81% | | **Net revenues** | **$2,013** | **$1,084** | **86%** | | Pre-tax income | $371 | $382 | (3)% | | Compensation and benefits | $177 | $84 | 111% | | Bank loan provision/(benefit) for credit losses | $132 | $100 | 32% | | RJBDP fees to PCG | $1,093 | $357 | 206% | | All other non-compensation expenses | $240 | $161 | 49% | - Bank segment net revenues increased **86% to $2.01 billion**, while pre-tax income decreased **3% to $371 million** in FY2023 compared to FY2022[327](index=327&type=chunk) - Net interest income increased **86%** due to significantly higher short-term interest rates and increased average interest-earning assets, along with incremental income from the TriState Capital Bank acquisition, partially offset by higher interest expense from diversified funding sources like the Enhanced Savings Program and certificates of deposit[328](index=328&type=chunk) - The net interest margin increased to **3.28%** in FY2023 from **2.39%** in FY2022[328](index=328&type=chunk) - The bank loan provision for credit losses increased to **$132 million** in FY2023 from **$100 million** in FY2022, reflecting a weakened macroeconomic outlook for certain loan portfolios (e.g., commercial real estate prices), charge-offs, and loan downgrades[330](index=330&type=chunk) - Compensation expenses increased **111%** due to incremental expenses from the TriState Capital Bank acquisition, increased headcount, and annual salary increases[331](index=331&type=chunk) - Non-compensation expenses (excluding bank loan provision) increased **157%**, primarily due to a **206% increase** in RJBDP and other fees paid to PCG, driven by higher short-term interest rates[332](index=332&type=chunk) [Other](index=64&type=section&id=Other) The Other segment's pre-tax loss decreased in FY2023, driven by higher interest income on corporate cash, despite increased non-interest expenses from regulatory provisions Other Segment Net Revenues (FY2023 vs. FY2022) | Revenue Category | FY2023 (in millions) | FY2022 (in millions) | Change (%) | | :------------------------------------ | :------------------- | :------------------- | :--------- | | Interest income | $147 | $25 | 488% | | Net gains on private equity investments | $6 | $9 | (33)% | | All other | $3 | $9 | (67)% | | **Total revenues** | **$156** | **$43** | **263%** | | Interest expense | ($97) | ($93) | 4% | | **Net revenues** | **$59** | **($50)** | **NM** | | Pre-tax loss | ($114) | ($191) | 40% | | Compensation and benefits | $95 | $90 | 6% | | Insurance settlement received | ($32) | — | NM | | Losses on extinguishment of debt | — | — | — | | All other non-compensation expenses | $110 | $51 | 116% | - The Other segment's pre-tax loss decreased by **$77 million to $114 million** in FY2023 compared to FY2022[336](index=336&type=chunk) - Net revenues increased by **$109 million**, primarily due to higher interest income earned on corporate cash balances as a result of increased short-term interest rates[336](index=336&type=chunk) - Non-interest expenses increased by **$32 million (23%)**, mainly due to a provision related to the SEC industry sweep on off-platform communications, partially offset by a **$32 million insurance settlement received** and a **$22 million decrease** in acquisition-related expenses[337](index=337&type=chunk) [Statement of financial condition analysis](index=59&type=section&id=Statement%20of%20financial%20condition%20analysis) RJF's total assets and liabilities decreased in FY2023, driven by lower client cash sweep balances and brokerage client payables, partially offset by increased bank deposits and cash equivalents Consolidated Statements of Financial Condition (as of September 30, in millions) | Category | 2023 | 2022 | Change ($) | Change (%) | | :------------------------------------------ | :------- | :------- | :--------- | :--------- | | Total Assets | $78,360 | $80,951 | ($2,591) | (3)% | | Cash and cash equivalents | $9,313 | $6,178 | $3,135 | 51% | | Assets segregated for regulatory purposes and restricted cash | $3,235 | $8,481 | ($5,246) | (62)% | | Bank loans, net | $43,775 | $43,239 | $536 | 1% | | Total Liabilities | $68,173 | $71,519 | ($3,346) | (5)% | | Bank deposits | $54,199 | $51,357 | $2,842 | 6% | | Brokerage client payables | $5,447 | $11,446 | ($5,999) | (52)% | | Total Shareholders' Equity | $10,187 | $9,432 | $755 | 8% | - Total assets decreased by **$2.59 billion (3%) to $78.36 billion**, primarily due to a **$5.25 billion decrease** in assets segregated for regulatory purposes (driven by lower client cash sweep balances), partially offset by a **$3.14 billion increase** in cash and cash equivalents in the Bank segment[340](index=340&type=chunk) - Total liabilities decreased by **$3.35 billion (5%) to $68.17 billion**, mainly due to a **$6.0 billion decline** in brokerage client payables (related to lower CIP balances), partially offset by a **$2.84 billion increase** in bank deposits (driven by the Enhanced Savings Program launch)[341](index=341&type=chunk) [Liquidity and capital resources](index=65&type=section&id=Liquidity%20and%20capital%20resources) RJF maintains robust liquidity and capital, exceeding regulatory requirements, supported by corporate cash, FHLB capacity, and the Enhanced Savings Program, while monitoring potential future capital rule changes - RJF's liquidity management aims to ensure adequate funding across various economic and market environments, including stress events, by maintaining higher capital and liquidity levels, especially in the Bank segment[342](index=342&type=chunk) - Contingency funding plans include reallocating client cash in RJBDP, increasing FHLB borrowings, accessing credit lines, and potentially capital markets or Federal Reserve borrowings[343](index=343&type=chunk) - The Enhanced Savings Program (ESP), launched in March 2023, provides an additional source of funding by allowing PCG clients to deposit cash in high-yield Raymond James Bank accounts[344](index=344&type=chunk) - As of September 30, 2023, RJF had **$2.08 billion in corporate cash** and access to a **$750 million committed unsecured revolving credit facility** (undrawn)[356](index=356&type=chunk)[367](index=367&type=chunk) - Raymond James Bank and TriState Capital Bank maintained higher cash balances in FY2023, a combined increase of **$3.3 billion**, as part of liquidity management strategies during market volatility[359](index=359&type=chunk) - RJF, Raymond James Bank, and TriState Capital Bank exceeded all 'well-capitalized' regulatory requirements as of September 30, 2023, with strong capital ratios[350](index=350&type=chunk)[903](index=903&type=chunk) RJF Regulatory Capital Ratios (as of September 30) | Ratio | 2023 Actual | 2023 Well-Capitalized Requirement | 2022 Actual | 2022 Well-Capitalized Requirement | | :---------------- | :---------- | :-------------------------------- | :---------- | :-------------------------------- | | Tier 1 leverage | 11.9% | 5.0% | 10.3% | 5.0% | | Tier 1 capital | 21.4% | 8.0% | 19.2% | 8.0% | | CET1 | 21.2% | 6.5% | 19.0% | 6.5% | | Total capital | 22.8% | 10.0% | 20.4% | 10.0% | - Proposed rules by U.S. banking regulators on July 27, 2023, could lead to higher capital requirements and eliminate the AOCI opt-out election, potentially reducing regulatory capital ratios, especially if RJF exceeds **$100 billion** in average total consolidated assets[352](index=352&type=chunk) - RJF had **$1.00 billion in FHLB borrowings outstanding** at September 30, 2023, and an additional **$9.25 billion in immediate credit available** from the FHLB based on pledged collateral[371](index=371&type=chunk)[372](index=372&type=chunk) - Aggregate outstanding senior notes payable totaled **$2.04 billion** as of September 30, 2023, with estimated future contractual interest payments of approximately **$1.9 billion** through 2051[377](index=377&type=chunk) RJF Credit Ratings (as of November 21, 2023) | Rating Agency | Issuer and Senior Long Term Debt Rating | Issuer and Senior Long Term Debt Outlook | Preferred Stock Rating | | :-------------- | :-------------------------------------- | :--------------------------------------- | :--------------------- | | Fitch Ratings, Inc. | A- | Stable | BB+ | | Moody's | A3 | Stable | Baa3 (hyb) | | Standard & Poor's Ratings Services | A | Stable | Not rated | [Regulatory](index=72&type=section&id=Regulatory) RJF and its subsidiaries consistently exceed all 'well-capitalized' regulatory capital requirements, despite a U.K. subsidiary facing a temporary restriction on new branch onboarding - RJF and its regulated subsidiaries (Raymond James Bank, TriState Capital Bank, broker-dealers, trust subsidiaries) are subject to various regulatory capital requirements, all of which were exceeded as of September 30, 2023, maintaining a 'well-capitalized' status[386](index=386&type=chunk) - Raymond James Investment Services Limited, a U.K. subsidiary, agreed to a Voluntary Application for Imposition of Requirements (VREQ) with the FCA in August 2023, prohibiting new branch or financial advisor onboarding without prior FCA consent, which is not expected to materially impact consolidated results[387](index=387&type=chunk) [Critical accounting estimates](index=72&type=section&id=Critical%20accounting%20estimates) Financial statement preparation involves significant management judgment, particularly for loss provisions related to legal/regulatory matters and the allowance for credit losses, which is sensitive to economic forecasts - The preparation of consolidated financial statements requires significant management judgment in making estimates and assumptions, particularly for loss provisions related to legal/regulatory matters and the allowance for credit losses[388](index=388&type=chunk)[389](index=389&type=chunk) - The allowance for credit losses (ACL) is a critical estimate, involving complex analysis of quantitative and qualitative factors, including historical losses, current conditions, and reasonable/supportable economic forecasts (e.g., GDP, equity markets, unemployment, real estate prices)[391](index=391&type=chunk)[393](index=393&type=chunk) - A hypothetical downside economic scenario would increase the quantitative portion of the ACL on bank loans by approximately **$235 million**, while an upside scenario would reduce it by **$50 million**, demonstrating sensitivity to macroeconomic forecasts[394](index=394&type=chunk) [Accounting standards update](index=74&type=section&id=Accounting%20standards%20update) RJF adopted amended guidance related to troubled debt restructurings and financing receivables disclosures on October 1, 2023, with no material financial impact - RJF adopted amended guidance (ASU 2022-02) related to troubled debt restructurings and disclosures for financing receivables on October 1, 2023, which did not have a material impact on financial position or results of operations[396](index=396&type=chunk) [Risk management](index=74&type=section&id=Risk%20management) RJF employs a comprehensive Enterprise Risk Management program, overseen by the Board, to manage market, credit, liquidity, operational, model, and compliance risks through policies, monitoring, and diversification - RJF employs a formal Enterprise Risk Management (ERM) program to assess and review aggregate risks, with oversight from the Board of Directors and senior management committees, and a three-line-of-defense model (businesses, Compliance/Risk Management, Internal Audit)[398](index=398&type=chunk)[400](index=400&type=chunk) - Primary risks include market, credit, liquidity, operational, model, and compliance risks[399](index=399&type=chunk) - Market risk arises from changes in market prices affecting trading inventory, derivatives, and investments, with primary exposures to interest rates, equity prices, and foreign exchange rates[401](index=401&type=chunk) - RJF manages interest rate risk in trading activities through hedging strategies and limits (dollar-based, exposure-based, issuer concentration), and monitors Value-at-Risk (VaR) daily, which was higher in FY2023 due to increased market volatility and acquisitions[404](index=404&type=chunk)[405](index=405&type=chunk)[410](index=410&type=chunk) Banking Operations Estimated Net Interest Income Sensitivity (12-month period) | Instantaneous Change in Rate (basis points) | Projected Change in Net Interest Income (%) | | :---------------------------------------- | :---------------------------------------- | | +200 | 13% | | +100 | 6% | | 0 | —% | | -100 | (6)% | | -200 | (11)% | - Credit risk is managed through well-defined credit policies, underwriting criteria, ongoing risk monitoring, and diversification across loan types, geographies, and industries, with specific policies for SBL, C&I, CRE, REIT, residential mortgage, and tax-exempt loans[437](index=437&type=chunk)[438](index=438&type=chunk)[439](index=439&type=chunk)[440](index=440&type=chunk)[441](index=441&type=chunk)[442](index=442&type=chunk)[443](index=443&type=chunk)[444](index=444&type=chunk) Net Loan (Charge-offs)/Recoveries by Portfolio Segment (in millions) | Loan Portfolio Segment | FY2023 Net Loan (Charge-off)/Recovery Amount | FY2023 % of Avg. Outstanding Loans | FY2022 Net Loan (Charge-off)/Recovery Amount | FY2022 % of Avg. Outstanding Loans | | :----------------------- | :------------------------------------------- | :--------------------------------- | :------------------------------------------- | :--------------------------------- | | C&I loans | ($44) | 0.40% | ($28) | 0.29% | | CRE loans | ($10) | 0.14% | $1 | 0.02% | | Residential mortgage loans | — | —% | $1 | 0.02% | | **Total loans held for sale and investment** | **($54)** | **0.12%** | **($26)** | **0.08%** | Nonperforming Assets and Key Credit Ratios (as of September 30, in millions) | Metric | 2023 | 2022 | | :------------------------------------------ | :----- | :----- | | Nonperforming loans | $128 | $74 | | Nonperforming assets | $128 | $74 | | Nonperforming loans as a % of total loans held for sale and investment | 0.29% | 0.17% | | Allowance for credit losses as a % of nonperforming loans | 370% | 535% | | Nonperforming assets as a % of Bank segment total assets | 0.21% | 0.13% | - Operational risk is managed through policies, procedures, and business continuity plans to address business disruptions, transaction errors, system deficiencies, and cybersecurity incidents[472](index=472&type=chunk) - Model risk, the possibility of unintended business outcomes from model design or use, is managed by an independent Model Risk Management department through governance, inventory, validation, and monitoring[476](index=476&type=chunk)[477](index=477&type=chunk) - Compliance risk is managed through a framework that identifies, assesses, controls, measures, monitors, and reports on compliance with laws, standards, and internal requirements, supported by the Compliance department[478](index=478&type=chunk)[479](index=479&type=chunk) [Item 7A. Quantitative and qualitative disclosures about market risk](index=79&type=section&id=Item%207A.%20Quantitative%20and%20qualitative%20disclosures%20about%20market%20risk) This section refers to the detailed quantitative and qualitative disclosures about market risk provided within 'Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations - Risk management' of this Form 10-K - Quantitative and qualitative disclosures about market risk are provided in 'Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations - Risk management'[480](index=480&type=chunk) [Item 8. Financial statements and supplementary data](index=80&type=section&id=Item%208.%20Financial%20statements%20and%20supplementary%20data) This section presents RJF's audited consolidated financial statements for fiscal years 2021-2023, including statements of financial condition, income, comprehensive income, changes in equity, and cash flows, with detailed notes - The consolidated financial statements for Raymond James Financial, Inc. and subsidiaries for the fiscal years ended September 30, 2023, 2022, and 2021, have been audited by KPMG LLP, who expressed an unqualified opinion[485](index=485&type=chunk) Consolidated Statements of Financial Condition (as of September 30, in millions) | Category | 2023 | 2022 | | :------------------------------------------ | :------- | :------- | | Cash and cash equivalents | $9,313 | $6,178 | | Assets segregated for regulatory purposes and restricted cash | $3,235 | $8,481 | | Total Assets | $78,360 | $80,951 | | Bank deposits | $54,199 | $51,357 | | Brokerage client payables | $5,447 | $11,446 | | Total Liabilities | $68,173 | $71,519 | | Total Shareholders' Equity | $10,187 | $9,432 | Consolidated Statements of Income and Comprehensive Income (Year ended September 30, in millions) | Category | 2023 | 2022 | 2021 | | :------------------------------------------ | :------- | :------- | :------- | | Total revenues | $12,992 | $11,308 | $9,910 | | Net revenues | $11,619 | $11,003 | $9,760 | | Total non-interest expenses | $9,339 | $8,981 | $7,969 | | Pre-tax income | $2,280 | $2,022 | $1,791 | | Net income available to common shareholders | $1,733 | $1,505 | $1,403 | | Earnings per common share – diluted | $7.97 | $6.98 | $6.63 | | Total comprehensive income | $1,750 | $568 | $1,351 | Consolidated Statements of Cash Flows (Year ended September 30, in millions) | Category | 2023 | 2023 | 2021 | | :------------------------------------------ | :------- | :------- | :------- | | Net cash provided by/(used in) operating activities | ($3,514) | $72 | $6,647 | | Net cash used in investing activities | ($274) | ($7,151) | ($5,140) | | Net cash provided by financing activities | $1,438 | $5,879 | $5,232 | | Net increase/(decrease) in cash and cash equivalents, including those segregated for regulatory purposes and restricted cash | ($2,111) | ($1,790) | $6,815 | | Cash and cash equivalents, including those segregated for regulatory purposes and restricted cash at end of year | $12,548 | $14,659 | $16,449 | [Item 9. Changes in and disagreements with accountants on accounting and financial disclosure](index=164&type=section&id=Item%209.%20Changes%20in%20and%20disagreements%20with%20accountants%20on%20accounting%20and%20financial%20disclosure) There have been no changes in or disagreements with accountants on accounting and financial disclosure [Item 9A. Controls and procedures](index=164&type=section&id=Item%209A.%20Controls%20and%20procedures) RJF's management and external auditors concluded that disclosure controls and internal control over financial reporting were effective as of September 30, 2023, with no material changes - RJF's disclosure controls and procedures were evaluated as effective by management, including the CEO and CFO, as of September 30, 2023[946](index=946&type=chunk) - No material changes in internal control over financial reporting occurred during the three months ended September 30, 2023[947](index=947&type=chunk) - Management concluded that internal control over financial reporting was effective as of September 30, 2023, based on the COSO framework[949](index=949&type=chunk) - KPMG LLP issued an unqualified opinion on the effectiveness of RJF's internal control over financial reporting as of September 30, 2023[951](index=951&type=chunk) [Item 9B. Other information](index=166&type=section&id=Item%209B.%20Other%20information) No directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the three months ended September 30, 2023 - No directors or officers adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during the three months ended September 30, 2023[959](index=959&type=chunk) [Item 9C. Disclosure regarding foreign jurisdictions that prevent inspections](index=166&type=section&id=Item%209C.%20Disclosure%20regarding%20foreign%20jurisdictions%20that%20prevent%20inspections) This item is not applicable to Raymond James Financial, Inc PART III. [Item 10. Directors, executive officers and corporate governance](index=166&type=section&id=Item%2010.%20Directors%2C%20executive%20officers%20and%20corporate%20governance) Information on directors, executive officers, and corporate governance is incorporated by reference from the 2024 Annual Meeting of Shareholders proxy statement, with executive officers also listed in Part I, Item 1 - Information on directors, executive officers, and corporate governance is incorporated by reference from the definitive proxy statement for the 2024 Annual Meeting of Shareholders[962](index=962&type=chunk) - A list of executive officers is included in Part I, Item 1 of this report[962](index=962&type=chunk) [Item 11. Executive compensation](index=166&type=section&id=Item%2011.%20Executive%20compensation) Information regarding executive compensation is incorporated by reference from the definitive proxy statement for the 2024 Annual Meeting of Shareholders - Information on executive compensation is incorporated by reference from the definitive proxy statement for the 2024 Annual Meeting of Shareholders[963](index=963&type=chunk) [Item 12. Security ownership of certain beneficial owners and management and related shareholder matters](index=166&type=section&id=Item%2012.%20Security%20ownership%20of%20certain%20beneficial%20owners%20and%20management%20and%20related%20shareholder%20matters) Information on security ownership of certain beneficial owners and management is incorporated by reference from the definitive proxy statement for the 2024 Annual Meeting of Shareholders - Information on security ownership of certain beneficial owners and management is incorporated by reference from the definitive proxy statement for the 2024 Annual Meeting of Shareholders[963](index=963&type=chunk) [Item 13. Certain relationships and related transactions, and director independence](index=166&type=section&id=Item%2013.%20Certain%20relationships%20and%20related%20transactions%2C%20and%20director%20independence) Information on certain relationships, related transactions, and director independence is incorporated by reference from the definitive proxy statement for the 2024 Annual Meeting of Shareholders - Information on certain relationships and related transactions, and director independence, is incorporated by reference from the definitive proxy statement for the 2024 Annual Meeting of Shareholders[963](index=963&type=chunk) [Item 14. Principal accountant fees and services](index=166&type=section&id=Item%2014.%20Principal%20accountant%20fees%20and%20services) Information on principal accountant fees and services is incorporated by reference from the definitive proxy statement for the 2024 Annual Meeting of Shareholders - Information on principal accountant fees and services is incorporated by reference from the definitive proxy statement for the 2024 Annual Meeting of Shareholders[963](index=963&type=chunk) PART IV. [Item 15. Exhibits and financial statement schedules](index=166&type=section&id=Item%2015.%20Exhibits%20and%20financial%20statement%20schedules) This section lists financial statements and schedules, along with a comprehensive exhibit listing, many incorporated by reference from previous SEC filings - Financial statements are included under Item 8 of this Annual Report on Form 10-K, with schedules omitted if not required or redundant[965](index=965&type=chunk) - A comprehensive exhibit listing is provided, detailing various corporate documents, agreements, and plans, many of which are incorporated by reference from prior SEC filings[965](index=965&type=chunk)[966](index=966&type=chunk)[968](index=968&type=chunk) [Item 16. Form 10-K summary](index=180&type=section&id=Item%2016.%20Form%2010-K%20summary) This item indicates that no Form 10-K summary is provided [Signatures](index=181&type=section&id=Signatures) The Annual Report on Form 10-K is duly signed by RJF's Chair and CEO, CFO, SVP and Chief Accounting Officer, and other directors on November 21, 2023 - The report is signed by Paul C. Reilly (Chair and CEO), Paul M. Shoukry (CFO), Jonathan W. Oorlog, Jr. (SVP and Chief Accounting Officer), and other directors on November 21, 2023[973](index=973&type=chunk)[974](index=974&type=chunk)[975](index=975&type=chunk)

Raymond James Financial, Inc. (NYSE:RJF) Q4 2023 Earnings Conference Call October 25, 2023 5:00 PM ET Company Participants Kristina Waugh - Senior Vice President, Investor Relations Paul Reilly - Chair and Chief Executive Officer Paul Shoukry - Chief Financial Officer Conference Call Participants Dan Fannon - Jefferies Kyle Voigt - KBW Benjamin Rubin - UBS Steven Chubak - Wolfe Research Mark McLaughlin - Bank of America James Mitchell - Seaport Global Devin Ryan - JMP Securities Michael Cyprys - Morgan Stan ...