Raymond James Financial(US:RJF)2023-05-08 19:10Financial Position - As of March 31, 2023, total assets at fair value on a recurring basis amounted to $11,267 million, with $1,378 million in Level 1 assets and $10,038 million in Level 2 assets[27] - The company recorded total liabilities at fair value on a recurring basis of $1,153 million, with $241 million in Level 1 liabilities and $986 million in Level 2 liabilities[28] - The fair value of bank loans, net, was $42,952 million as of March 31, 2023, compared to $42,470 million as of September 30, 2022[47] - Total assets as of March 31, 2023, were $79,180 million, a slight decrease from $80,951 million as of September 30, 2022[212] Trading and Investment Assets - Total trading assets were reported at $993 million, including $970 million in total debt securities and $10 million in equity securities[27] - The company reported available-for-sale securities totaling $9,773 million, primarily consisting of agency mortgage-backed securities and U.S. Treasury securities[27] - The fair value of available-for-sale securities included $5,272 million in agency residential MBS, with unrealized losses of $520 million as of March 31, 2023[49] - The total fair value of other investments was $219 million, including $97 million in government and agency obligations[27] Derivative Instruments - Total derivative assets were valued at $91 million, with $9 million in Level 1 and $361 million in Level 2[27] - The company held derivative assets with a gross fair value of $370 million and derivative liabilities of $429 million as of March 31, 2023, with a notional amount of $20.733 billion[60] - The total net amounts presented on the Condensed Consolidated Statements of Financial Condition for derivative assets and liabilities were $91 million and $351 million, respectively[60] Loans and Credit Management - Total loans held for investment increased to $43,979 million as of March 31, 2023, compared to $43,498 million as of September 30, 2022, reflecting a growth of 1.1%[1] - The allowance for credit losses (ACL) as a percentage of total loans held for investment rose to 0.94% from 0.91% over the same period, indicating a slight increase in credit risk management[1] - The total past due loans held for investment amounted to $66 million as of March 31, 2023, with $4 million in 30-89 days past due and $62 million in nonaccrual status[3] - The company has no loans classified as "Loss," indicating effective credit management practices[3] Revenue and Income - Total revenues for the three months ended March 31, 2023, were $3.157 billion, compared to $2.173 billion in the same period of 2022, reflecting a 45.4% increase[175] - Non-interest revenues for Q1 2023 amounted to $2.242 billion, up from $2.056 billion in Q1 2022, indicating an increase of 9.1%[175] - Interest income for Q1 2023 was $915 million, up from $117 million in Q1 2022, representing a substantial increase of 681.2%[175] - Net income available to common shareholders for the three months ended March 31, 2023, was $425 million, up 31.5% from $323 million in the same period of 2022[203] Shareholder Returns - Dividends per common share declared increased to $0.42 in Q1 2023 from $0.34 in Q1 2022, representing a 23.5% increase[168] - The dividend payout ratio for Q1 2023 was 21.8%, a slight decrease from 22.4% in Q1 2022[169] - The total preferred stock dividends declared for the three months ended March 31, 2023, amounted to $2 million[164] Capital and Regulatory Compliance - RJF's Tier 1 capital as of March 31, 2023, was $8,903 million, with a ratio of 20.1%, exceeding the minimum requirement of 6.0%[193] - Total capital for RJF as of March 31, 2023, was $9,474 million, with a ratio of 21.4%, well above the minimum requirement of 8.0%[193] - The company increased its regulatory capital levels compared to September 30, 2022, driven by positive earnings, partially offset by dividends and share repurchases[194] Strategic Outlook - Future strategic objectives include enhancing digital capabilities and expanding market presence[221] - The company anticipates continued growth in earnings, projecting a positive outlook for the upcoming quarters[221] - New product offerings are in development, aimed at meeting evolving client needs and market demands[221] - The company is exploring potential acquisitions to bolster its service offerings and market reach[221]