Core Insights - Raymond James Ltd. has entered a strategic collaboration with FNZ to enhance its wealth management systems and improve client and advisor experiences nationwide [1][4] - The partnership will utilize FNZ's integrated wealth management platform, featuring AI-driven tools and advanced digital capabilities [2][3] - Raymond James plans to invest approximately $1 billion globally in fiscal year 2025, focusing on technology upgrades and cybersecurity [5][8] Investment and Technology Strategy - The collaboration with FNZ represents a significant investment in modern infrastructure aimed at improving efficiency and personalization in wealth management [2][3] - The new platform will provide advisors with a user-friendly interface, enhancing client interactions and offering real-time capabilities [3][4] - The investment aligns with Raymond James' goal to establish itself as a leader in financial technology and innovation [5][8] Market Position and Performance - The strategic investment reinforces Raymond James Ltd.'s position as a preferred choice for top advisors in Canada, emphasizing innovation and client service [4] - In the past three months, shares of Raymond James have increased by 6.4%, which is lower than the industry average rise of 13.2% [6]

Summary of Raymond James Financial (RJF) Conference Call Company Overview - **Company**: Raymond James Financial (RJF) - **Industry**: Financial Services - **Total Client Assets**: Over $1.5 trillion [2] Key Points and Arguments Revenue Growth Expectations - **Long-term Revenue Goal**: Exceed $20 billion by 2030, implying an 8% annual growth rate, which is slower than the 13% growth over the past five years [5][6] - **Market Conditions**: Growth expectations are conservative, factoring in potential equity market depreciation [6] Competitive Positioning - **Critical Mass and Growth Potential**: Raymond James has the necessary scale to invest in technology and products while maintaining growth potential across all business lines [7][9] - **Technology Investment**: Approximately $1 billion is being invested in technology, primarily in the wealth management sector [8][35] Value Proposition - **Best of Both Worlds**: The company aims to combine the capabilities of larger firms with the culture of smaller firms, enhancing its appeal to financial professionals [11][12] - **Recruitment Success**: The culture at Raymond James is a significant draw for advisers, with many expressing regret for not joining sooner [29][30] Market Environment and Client Behavior - **Increased Demand for Advisers**: Volatility in the market has reinforced the value of financial advisers, leading clients to remain engaged and disciplined in their long-term financial plans [15][16] - **Investment Banking Activity**: Current tariff uncertainties are dampening M&A activity, with a need for clarity around tariffs to stimulate deal-making [20][21] Growth Opportunities - **Market Share Expansion**: Significant growth opportunities exist in high-wealth markets like the Northeast and West Coast, where current market share is below national averages [24][25] - **Recruitment Strategy**: The company is focused on attracting high-quality advisers, with potential for hundreds of new recruits in targeted markets [27][28] Technology and AI Integration - **AI as a Game Changer**: The company is investing in AI to enhance adviser productivity and client service, with a dedicated team to explore AI opportunities [39][40] - **Data Quality**: Emphasis on the importance of clean and organized data for effective AI deployment [44][45] Lending and Cash Management - **Securities-Based Lending Growth**: A 15% year-over-year growth in securities-based lending has been observed, with optimism for continued recovery [50][52] - **Cash Sweep Balances**: Stability in cash sweep balances is necessary for declaring victory in this area, with a focus on increasing client cash balances [55][56] Competitive Advantages - **Strong Balance Sheet**: The firm’s solid financial position is becoming a competitive advantage as advisers seek stability in uncertain markets [63][64] - **Quality Over Quantity**: Raymond James prioritizes a high-touch service model and quality adviser relationships over sheer size [62][65] Additional Important Insights - **Cultural Importance**: The preservation of company culture is a top priority, as it significantly impacts adviser satisfaction and retention [30][31] - **Market Dynamics**: The current environment is leading advisers to reassess their affiliations, with a growing interest in firms with strong balance sheets [63][64] This summary encapsulates the key insights and strategic directions discussed during the Raymond James Financial conference call, highlighting the company's growth ambitions, competitive positioning, and market dynamics.

Summary of Raymond James Financial's Analyst and Investor Day Company Overview - **Company**: Raymond James Financial - **Event**: 2025 Analyst and Investor Day - **Location**: St. Petersburg, Florida Key Industry Insights - **Market Position**: Raymond James aims to be the best firm for financial professionals and their clients, emphasizing a culture that respects client relationships and advisor independence [10][11] - **Growth Metrics**: Over the past 15 years, client assets grew from approximately $250 billion to over $1.6 trillion, representing a compound annual growth rate (CAGR) of about 14% [12] - **Revenue Growth**: Net revenues increased from less than $3 billion to around $13 billion, reflecting an 11% growth rate [12] - **Market Capitalization**: Market cap rose from $3 billion to approximately $28-29 billion, indicating a 16% annual growth rate [13] Strategic Focus - **Client-Centric Approach**: The firm prioritizes client needs in all strategic decisions, believing that success for clients will lead to success for shareholders [14][15] - **Long-Term Vision**: Raymond James focuses on sustainable growth over short-term gains, with a commitment to long-term profitability [15][41] - **Financial Strength**: The company maintains a total capital ratio of 25%, significantly above the regulatory requirement of 10%, with $2.5 billion in excess capital [23][24] Business Segments - **Private Client Group (PCG)**: Represents about 70% of revenues, with 8,731 advisors managing $1.48 trillion in assets. Fee-based assets have grown at a 16% CAGR over the past five years [73][74] - **Capital Markets**: Opportunities for growth in investment banking and sales and trading, with a focus on expanding market share in Europe and the U.S. [60][61] - **Asset Management**: The firm has a $100 billion asset management segment with significant growth potential [61] Technology and Innovation - **Investment in Technology**: Raymond James plans to invest nearly $1 billion in technology, primarily in wealth management, to enhance competitiveness [34][46] - **Artificial Intelligence**: A Chief AI Officer role was created to focus on increasing efficiencies, data-driven insights, and cybersecurity [46][47] Mergers and Acquisitions (M&A) - **M&A Strategy**: The firm emphasizes cultural fit and strategic alignment in potential acquisitions, focusing on enhancing the overall value rather than merely increasing size [50][51] - **Market Disruption**: Ongoing M&A activity in the industry creates both challenges and opportunities for Raymond James, particularly in recruiting high-quality advisors [54][57] Competitive Landscape - **Market Share Opportunities**: Significant growth potential exists in the Northeast and West regions of the U.S., where market share is currently lower than the national average [40][60] - **Advisor Recruitment**: The firm is experiencing strong recruitment activity, particularly from advisors seeking a stable and supportive environment [58] Conclusion - **Future Goals**: Raymond James aims to exceed $20 billion in revenues by 2030, with a focus on sustainable growth and maintaining a strong cultural identity [52][53] - **Commitment to Advisors**: The firm seeks to inspire and empower financial professionals, ensuring they have the resources and support needed to succeed [76][78]

2025 Analyst & Investor Day JUNE 5, 2025 Welcome & Agenda Kristie Waugh Senior Vice President, Investor Relations and FP&A Forward-looking statements Certain statements made in this presentation and the associated conference call may constitute "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information concerning future strategic objectives, business prospects, anticipated savings, financial results (including expenses, earnings, l ...

[Part I: Financial Information](index=3&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) This section presents the unaudited financial statements and management's analysis of financial condition and operations [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements for the quarter ended March 31, 2025, with detailed notes [Condensed Consolidated Statements of Financial Condition](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Financial%20Condition) Total assets increased slightly to $83.13 billion, driven by bank loans, while liabilities decreased and equity grew to $12.23 billion Condensed Consolidated Statements of Financial Condition (in millions) | Account | March 31, 2025 | September 30, 2024 | | :--- | :--- | :--- | | **Total assets** | **$83,132** | **$82,992** | | Cash and cash equivalents | $9,662 | $10,998 | | Bank loans, net | $48,273 | $45,994 | | **Total liabilities** | **$70,905** | **$71,325** | | Bank deposits | $56,403 | $56,010 | | Accrued compensation, commissions and benefits | $1,914 | $2,325 | | **Total shareholders' equity** | **$12,227** | **$11,667** | [Condensed Consolidated Statements of Income and Comprehensive Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20and%20Comprehensive%20Income) Net revenues for Q2 2025 increased 9% to $3.40 billion, with net income rising 4% to $495 million, and diluted EPS at $2.36 Key Performance Indicators (in millions, except per share amounts) | Metric | Q2 2025 | Q2 2024 | YoY Change | Six Months 2025 | Six Months 2024 | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Net revenues | $3,403 | $3,118 | +9% | $6,940 | $6,131 | +13% | | Pre-tax income | $671 | $609 | +10% | $1,420 | $1,239 | +15% | | Net income | $495 | $476 | +4% | $1,095 | $974 | +12% | | Diluted EPS | $2.36 | $2.22 | +6% | $5.22 | $4.54 | +15% | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating activities provided $947 million in cash, while investing activities used $1.60 billion, and financing activities used $463 million Net Cash Flow for Six Months Ended March 31 (in millions) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $947 | $934 | | Net cash used in investing activities | $(1,596) | $(109) | | Net cash provided by/(used in) financing activities | $(463) | $266 | [Notes to Condensed Consolidated Financial Statements (Unaudited)](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) Detailed notes cover fair value measurements, bank loan portfolio, deposits, and regulatory capital, providing context to financial statements - As of March 31, 2025, **11% of assets and 2% of liabilities were measured at fair value** on a recurring basis. Level 3 assets represented less than 1% of assets measured at fair value[37](index=37&type=chunk) - The bank loan portfolio grew to **$48.5 billion** (held for investment) as of March 31, 2025, up from $46.3 billion at September 30, 2024. The Allowance for Credit Losses (ACL) as a percentage of total loans held for investment decreased to **0.93%** from 0.99%[80](index=80&type=chunk) - Total bank deposits increased to **$56.4 billion** as of March 31, 2025, with **86% of these deposits being FDIC-insured**[126](index=126&type=chunk)[128](index=128&type=chunk) - The company and its bank subsidiaries were categorized as 'well-capitalized' as of March 31, 2025, with RJF's CET1 ratio at **23.3%** against a 7.0% requirement[188](index=188&type=chunk)[190](index=190&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=51&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 and H1 2025 financial results, highlighting revenue growth, segment performance, liquidity, capital, and risk management practices [Executive Overview](index=53&type=section&id=Executive%20overview) Q2 2025 net revenues grew 9% to $3.40 billion, driven by asset management and investment banking, while maintaining a strong capital position Q2 2025 Financial Highlights vs. Q2 2024 (in millions, except per share) | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Net revenues | $3,403 | $3,118 | 9% | | Pre-tax income | $671 | $609 | 10% | | Net income available to common shareholders | $493 | $474 | 4% | | Earnings per common share – diluted | $2.36 | $2.22 | 6% | - Key revenue drivers for the quarter included higher asset management fees due to increased PCG client assets, stronger brokerage revenues from fixed income, and improved investment banking activity[219](index=219&type=chunk) - The firm repurchased **1.7 million shares for $250 million** in Q2 2025 and maintained a strong capital position with a Tier 1 leverage ratio of **13.3%** and **$2.5 billion in corporate cash**[223](index=223&type=chunk) [Results of Operations by Segment](index=67&type=section&id=Results%20of%20operations) Segment performance highlights include PCG revenue growth, increased Capital Markets activity, and significant pre-tax income growth in Asset Management and Bank segments Segment Pre-Tax Income for Q2 (in millions) | Segment | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Private Client Group | $431 | $444 | (3)% | | Capital Markets | $36 | $(17) | NM | | Asset Management | $121 | $100 | +21% | | Bank | $117 | $75 | +56% | - PCG client assets under administration (AUA) reached **$1.48 trillion**, with assets in fee-based accounts at **$872.8 billion** as of March 31, 2025[259](index=259&type=chunk) - Capital Markets investment banking revenues increased **21% YoY to $207 million** in Q2 2025, driven by more favorable market conditions[284](index=284&type=chunk)[285](index=285&type=chunk) - Asset Management's total financial assets under management (AUM) grew to **$245.0 billion** as of March 31, 2025, up from $226.8 billion a year prior[298](index=298&type=chunk) [Liquidity and Capital Resources](index=79&type=section&id=Liquidity%20and%20capital%20resources) The firm maintains a strong liquidity and capital position with $83.1 billion in assets, $12.2 billion in equity, and robust capital ratios RJF Regulatory Capital Ratios (March 31, 2025) | Ratio | Actual | Required | | :--- | :--- | :--- | | Tier 1 leverage | 13.3% | 4.0% | | CET1 | 23.3% | 7.0% | | Tier 1 capital | 23.5% | 8.5% | | Total capital | 24.8% | 10.5% | - As of March 31, 2025, the company had **$2.49 billion in corporate cash**, including cash held at the parent and loaned to its subsidiary RJ&A[345](index=345&type=chunk) - The company has significant available credit, with **$9.49 billion from the FHLB** and **$3.4 billion from the FRB discount window** as of March 31, 2025[359](index=359&type=chunk)[360](index=360&type=chunk) - In December 2024, the Board authorized a new **$1.5 billion share repurchase program**. As of March 31, 2025, **$1.2 billion remained available** under this authorization[167](index=167&type=chunk)[223](index=223&type=chunk) [Risk Management](index=88&type=section&id=Risk%20management) The firm employs an ERM program to manage market, credit, liquidity, and operational risks, with focus on CRE loans Daily Value-at-Risk (VaR) for Trading Portfolios (Six months ended March 31, 2025) | $ in millions | High | Low | Period-end (Mar 31, 2025) | Average | | :--- | :--- | :--- | :--- | :--- | | Daily VaR | $4 | $1 | $3 | $3 | Bank Operations Net Interest Income Sensitivity (as of March 31, 2025) | Instantaneous Rate Change (bps) | Projected Change in NII | | :--- | :--- | | +200 | +3% | | +100 | +2% | | -100 | (4)% | | -200 | (9)% | - Nonperforming loans were **$214 million**, or **0.44% of total loans** held for sale and investment, as of March 31, 2025[428](index=428&type=chunk) - The firm is closely monitoring risks in its CRE loan portfolio, especially office real estate, due to remote work policies and high interest rates. The office real estate concentration is **7% of the total corporate bank loan portfolio**[443](index=443&type=chunk)[445](index=445&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=97&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) Quantitative and qualitative disclosures about market risk are referenced to the 'Risk Management' section of the MD&A - Disclosures about market risk are provided in the MD&A section of this report[452](index=452&type=chunk) [Item 4. Controls and Procedures](index=97&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal control over financial reporting - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures are effective as of the end of the period[455](index=455&type=chunk) - No changes occurred during the quarter ended March 31, 2025, that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[456](index=456&type=chunk) [Part II: Other Information](index=100&type=section&id=PART%20II%20OTHER%20INFORMATION) This section provides additional information including legal proceedings, equity sales, and other disclosures [Item 1. Legal Proceedings](index=100&type=section&id=Item%201.%20Legal%20Proceedings) The company reported no new material legal proceedings for the period - The report states 'None' for this item, indicating no new material legal proceedings to disclose[459](index=459&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=100&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales but detailed common stock repurchases, including a new $1.5 billion authorization Share Repurchases for the Quarter Ended March 31, 2025 | Month | Total Shares Purchased | Average Price Per Share | Shares Purchased Under Program | Remaining Authorization (End of Month) | | :--- | :--- | :--- | :--- | :--- | | January 2025 | 23,435 | $162.69 | — | $1,450M | | February 2025 | 315,686 | $158.54 | 315,391 | $1,400M | | March 2025 | 1,402,024 | $142.78 | 1,399,870 | $1,200M | | **Q2 Total** | **1,741,145** | **$145.91** | **1,715,261** | **$1,200M** | [Item 5. Other Information](index=101&type=section&id=Item%205.%20Other%20Information) The company reported that none of its 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, 2025 - No directors or officers adopted or terminated a Rule 10b5-1 trading arrangement during the quarter[467](index=467&type=chunk)

Group 1 - Albert Anthony is a Croatian-American media personality and analyst for financial media platforms, focusing on dividend stocks and general market commentary [1] - The author has covered over 200 companies across multiple sectors and has gained over 1,000 followers since 2023 [1] - Albert Anthony has experience as an analyst in the IT sector and has worked for a top 10 financial firm in the US [1] Group 2 - The author plans to launch a new book in 2025 on Amazon discussing his methodology for stock rating [1] - Albert Anthony & Co. is a sole proprietorship registered in Austin, Texas [1] - The author does not provide personalized financial advice and does not hold material positions in any rated stocks at the time of rating [1]

Core Viewpoint - Raymond James (RJF) reported lower-than-expected second-quarter fiscal 2025 results, leading to a 2.3% decline in shares during after-hours trading. Adjusted earnings per share were $2.42, slightly below the Zacks Consensus Estimate of $2.44, but showed a 5% increase year-over-year [1][2]. Financial Performance - Net income available to common shareholders was $493 million, or $2.36 per share, up from $474 million, or $2.22 per share, in the prior-year quarter [3]. - Quarterly net revenues reached $3.40 billion, a 9% increase year-over-year, but fell short of the Zacks Consensus Estimate of $3.43 billion. The Private Client Group saw a 6% growth in net revenues, Asset Management's revenues rose 15%, and Capital Markets' revenues jumped 23% [4]. - Non-interest expenses increased by 9% year-over-year to $2.73 billion, primarily due to higher compensation, commissions, and investment sub-advisory fees. The company recorded a bank loan provision for credit losses of $16 million, down 24% [5]. Asset Management - As of March 31, 2025, client assets under administration totaled $1.54 trillion, up 6% from the prior-year quarter, while financial assets under management grew 8% to $245 billion [6]. Balance Sheet Strength - Total assets were $83.13 billion, a 1% increase from the prior quarter, and total equity rose 2% to $12.13 billion. Book value per share increased to $59.74 from $52.60 a year ago. The total capital ratio improved to 24.8% from 23.3% year-over-year, and the Tier 1 capital ratio rose to 23.5% from 21.9% [7]. Return on Equity - Return on common equity on an annualized basis was 16.4%, down from 17.5% a year ago [8]. Share Repurchase Activity - In the reported quarter, Raymond James repurchased shares worth $250 million [9]. Strategic Outlook - The company’s global diversification efforts, strategic acquisitions, and relatively high interest rates are expected to support top-line growth, despite concerns over elevated operating expenses and macroeconomic uncertainties related to tariff negotiations [10][11].

Financial Performance Highlights - Net revenues reached $3403 million, a 9% increase compared to 2Q24 [9] - Pre-tax income was $671 million, up 10% from 2Q24 [9] - Adjusted pre-tax income was $690 million, a 9% increase compared to 2Q24 [9] - Diluted EPS was $236, a 6% increase compared to 2Q24 [9] - Adjusted diluted EPS was $242, a 5% increase compared to 2Q24 [9] Key Performance Metrics - Client assets under administration totaled $154 trillion [7] - PCG assets in fee-based accounts amounted to $873 billion [7] - Clients' domestic cash sweep and ESP balances were $578 billion [7] - The Tier 1 leverage ratio was 133% [7] - RJF corporate cash was $25 billion [7] Segment Results - Private Client Group net revenues were $2486 million, a 6% increase compared to 2Q24 [11] - Capital Markets net revenues were $396 million, a 23% increase compared to 2Q24 [11] - Asset Management net revenues were $289 million, a 15% increase compared to 2Q24 [11] - Bank net revenues were $434 million, a 2% increase compared to 2Q24 [11]

Core Insights - Raymond James Financial, Inc. reported $3.4 billion in revenue for the quarter ended March 2025, marking a year-over-year increase of 9.1% and an EPS of $2.42 compared to $2.31 a year ago, although it fell short of the Zacks Consensus Estimate of $3.43 billion by -0.72% [1] Financial Performance Metrics - Private Client Group Asset Under Management was $1.48 billion, slightly below the three-analyst average estimate of $1.49 billion [4] - Tier 1 Leverage Ratio stood at 13.3%, exceeding the three-analyst average estimate of 13.1% [4] - Private Client Group assets in Fee-based Accounts totaled $872.80 million, below the average estimate of $880.13 million [4] - Total Capital Ratio was 24.8%, surpassing the two-analyst average estimate of 24.5% [4] - Investment banking revenues were reported at $216 million, a year-over-year increase of 20.7%, but below the average estimate of $255.78 million [4] - Asset management and related administrative fees generated $1.73 billion, reflecting a year-over-year change of 13.8% and exceeding the average estimate of $1.71 billion [4] - Total brokerage revenues reached $580 million, a year-over-year increase of 9.9%, surpassing the average estimate of $562.59 million [4] - Account and service fees were $321 million, down 4.2% year-over-year and below the average estimate of $338.37 million [4] - Interest income was reported at $963 million, a decrease of 8.2% year-over-year, falling short of the average estimate of $993.09 million [4] - Other total revenues were $40 million, showing a year-over-year increase of 29%, slightly below the average estimate of $40.96 million [4] - Principal transactions generated $149 million, a year-over-year increase of 30.7%, exceeding the three-analyst average estimate of $130.55 million [4] - Net interest income was $419 million, a year-over-year increase of 1.5%, but below the average estimate of $513.85 million [4] Stock Performance - Shares of Raymond James Financial have returned -7.5% over the past month, compared to the Zacks S&P 500 composite's -6.6% change, with a Zacks Rank 4 (Sell) indicating potential underperformance in the near term [3]

Over the last four quarters, the company has surpassed consensus EPS estimates three times. Raymond James Financial, which belongs to the Zacks Financial - Investment Bank industry, posted revenues of $3.4 billion for the quarter ended March 2025, missing the Zacks Consensus Estimate by 0.72%. This compares to year-ago revenues of $3.12 billion. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the ...