EX-99.1 2 rjf20230630q323earnings.htm EX-99.1 PRESS RELEASE DATED JULY 26, 2023

July 26, 2023						FOR IMMEDIATE RELEASE
						Media Contact: Steve Hollister, 727.567.2824
						Investor Contact: Kristina Waugh, 727.567.7654
						raymondjames.com/news-and-media/press-releases

RAYMOND JAMES FINANCIAL REPORTS THIRD QUARTER OF

FISCAL 2023 RESULTS

•Domestic Private Client Group net new assets(1)(2) of $14.4 billion for the fiscal third quarter, 5.4% annualized growth rate from beginning of period assets

•Record quarterly net revenues of $2.91 billion, up 7% over the prior year’s fiscal third quarter and 1% over the preceding quarter

•Quarterly net income available to common shareholders of $369 million, or $1.71 per diluted share, and quarterly adjusted net income available to common shareholders of $399 million(3), or $1.85 per diluted share(3)

•Record client assets under administration of $1.28 trillion and financial assets under management of $200.7 billion

•Net interest income and Raymond James Bank Deposit Program (“RJBDP”) fees from third-party banks of $708 million during the quarter, up 91% over the prior year’s fiscal third quarter and down 3% compared to the preceding quarter

•Record net revenues of $8.57 billion and record net income available to common shareholders of $1.30 billion for the first nine months of fiscal 2023, up 5% and 22%, respectively, over the first nine months of fiscal 2022

•Annualized return on common equity of 17.9% and annualized adjusted return on tangible common equity of 22.7%(3) for the first nine months of fiscal 2023

ST. PETERSBURG, Fla – Raymond James Financial, Inc. (NYSE: RJF) today reported record net revenues of $2.91 billion and net income available to common shareholders of $369 million, or $1.71 per diluted share, for the fiscal third quarter ended June 30, 2023. Excluding $40 million of expenses related to acquisitions, quarterly adjusted net income available to common shareholders was $399 million(3), or $1.85 per diluted share(3).

Record quarterly net revenues increased 7% over the prior year’s fiscal third quarter. The benefit of higher short-term interest rates on net interest income and RJBDP fees from third-party banks more than offset declines in investment banking revenues, brokerage revenues, and asset management and related administrative fees. The 1% sequential increase in quarterly net revenues was primarily due to higher asset management and related administrative fees.

Quarterly net income available to common shareholders increased 23% over the prior year’s fiscal third quarter, driven primarily by higher net interest income and RJBDP fees from third-party banks which were partially offset by elevated provisions for legal and regulatory matters. Sequentially, net income available to common shareholders decreased 13%. Quarterly results were negatively impacted by elevated provisions for legal and regulatory matters of approximately $65 million and bank loan provision for credit losses of $54 million.

For the first nine months of the fiscal year, record net revenues of $8.57 billion increased 5%, record earnings per diluted common share of $5.95 increased 19%, and adjusted earnings per diluted common share of $6.17(3) increased 14% over the first nine months of fiscal 2022. The Private Client Group segment generated record net

Please refer to the footnotes at the end of this press release for additional information.

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revenues and record pre-tax income during the first nine months of the fiscal year. Annualized return on common equity was 17.9% and annualized adjusted return on tangible common equity was 22.7%(3).

“Through the strength of our businesses and perseverance of our advisors and associates, we generated record net revenues and record net income to common shareholders during the first nine months of the fiscal year, up 5% and 22%, respectively, over fiscal 2022 despite challenging macroeconomic conditions,” said Chair and CEO Paul Reilly. “Importantly, our strong capital ratios and flexible balance sheet keep us well-positioned as we look forward.”

Segment Results

Private Client Group

•Domestic Private Client Group net new assets(1)(2) of $14.4 billion for the fiscal third quarter, 5.4% annualized growth rate from beginning of period assets

•Record quarterly net revenues of $2.18 billion, up 11% over the prior year’s fiscal third quarter and 2% over the preceding quarter

•Quarterly pre-tax income of $411 million, up 64% over the prior year’s fiscal third quarter and down 7% compared to the preceding quarter

•Record Private Client Group assets under administration of $1.23 trillion, up 15% compared to June 2022 and 5% over March 2023

•Record Private Client Group assets in fee-based accounts of $697.0 billion, up 15% compared to June 2022 and 5% over March 2023

•Total clients’ domestic cash sweep and Enhanced Savings Program (“ESP”) balances of $58.0 billion, down 24% compared to June 2022 and up 11% over March 2023

The year-over-year growth in quarterly net revenues and pre-tax income was driven primarily by increases in RJBDP fees and net interest income, which more than offset market-driven declines in asset management and related administrative fees and brokerage revenues. Sequentially, quarterly net revenues grew 2% driven by higher asset management and related administrative fees, which were offset by a decline in RJBDP fees due to lower cash sweep balances, and lower brokerage revenues. However, quarterly pre-tax income declined 7% compared to the preceding quarter driven by higher provisions for legal and regulatory matters and seasonally higher advisor recognition events and conference expenses.

Total clients’ domestic cash sweep and ESP balances grew 11% over March 2023. The increase reflects strong growth in ESP balances which more than offset a modest decline in cash sweep balances largely due to quarterly fee billings and income tax payments. Reflecting higher short-term interest rates, the average yield on RJBDP third-party bank balances increased 12 basis points to 3.37% in the fiscal third quarter.

“Financial advisor retention and recruiting are strong across our multiple affiliation options driven by our advisor and client-focused culture and leading technology and product solutions,” said Reilly. “For example, our recently-launched Enhanced Savings Program ended the quarter at $11.2 billion, as advisors and their clients continue to value this attractive offering.”

Please refer to the footnotes at the end of this press release for additional information.

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Capital Markets

•Quarterly net revenues of $276 million, down 28% compared to the prior year’s fiscal third quarter and 9% compared to the preceding quarter

•Quarterly pre-tax loss of $34 million

•Quarterly investment banking revenues of $141 million, down 35% compared to the prior year’s fiscal third quarter and 3% compared to the preceding quarter

The year-over-year decline in quarterly net revenues and pre-tax income was largely attributable to lower investment banking and fixed income brokerage revenues. Compensation expense declined 9% driven by lower variable compensation, partially offset by amortization of deferred compensation and additional compensation related to growth investments.

“Investment banking activity across the industry remains muted,” said Reilly. “While the investment banking pipeline remains healthy and new business activity is solid, the timing of closings is largely dependent on improving market conditions.”

Asset Management

•Quarterly net revenues of $226 million, down 1% compared to the prior year’s fiscal third quarter and up 5% over the preceding quarter

•Quarterly pre-tax income of $89 million, down 4% compared to the prior year’s fiscal third quarter and up 9% over the preceding quarter

•Financial assets under management of $200.7 billion, up 10% over June 2022 and 3% over March 2023

Financial assets under management of $200.7 billion grew 10% over the prior-year quarter and 3% over the preceding quarter. The increase in financial assets under management was primarily the result of higher equity markets, along with net inflows into fee-based accounts in the Private Client Group.

Bank

•Quarterly net revenues of $514 million, up 86% over the prior year’s fiscal third quarter and down 5% compared to the preceding quarter

•Quarterly pre-tax income of $66 million, down 11% compared to the prior year’s fiscal third quarter and 27% compared to the preceding quarter

•Bank segment net interest margin (“NIM”) of 3.26% for the quarter, up 85 basis points over the prior year’s fiscal third quarter and down 37 basis points compared to the preceding quarter

•Net loans of $43.3 billion, up 4% over June 2022 and down 1% compared to March 2023

Quarterly net revenues increased over the prior-year quarter driven by higher asset balances and the favorable impact from higher short-term interest rates. Sequentially, quarterly net revenues declined 5% due to lower net interest income. The Bank segment’s NIM decreased 37 basis points during the quarter to 3.26%, primarily due to increased interest expense from higher-cost funding as ESP balances replaced a portion of lower-cost RJBDP client cash sweep balances. Net loans increased 4% over the prior-year quarter and declined 1% compared to the preceding quarter primarily driven by lower corporate loans. Quarterly bank loan provision for credit losses of $54 million increased over the preceding quarter primarily due to weaker macroeconomic assumptions for the Moody’s CRE Price Index in the Current Expected Credit Loss (“CECL”) model. Despite a higher provision, the credit quality of the loan portfolio is solid, with criticized loans as a percent of total loans held for investment ending the quarter at 0.94%, down from 1.63% at June 2022 and up slightly from 0.92% at March 2023. Bank loan allowance for credit losses as a percent of total loans held for investment was 1.04%, and bank loan allowance for credit losses on corporate loans as a percent of corporate loans held for investment was 1.90%.

Please refer to the footnotes at the end of this press release for additional information.

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Other

During the fiscal third quarter, the firm repurchased 3.31 million shares of common stock for $300 million at an average price of $91 per share. As of July 26, 2023, approximately $750 million remained available under the Board’s approved common stock repurchase authorization. At the end of the quarter, the total capital ratio was 22.0%(4) and the tier 1 leverage ratio was 11.4%(4), both well above regulatory requirements.

A conference call to discuss the results will take place today, Wednesday, July 26, at 5:00 p.m. ET. The live audio webcast, and the presentation which management will review on the call, will be available at www.raymondjames.com/investor-relations/financial-information/quarterly-earnings. For a listen-only connection to the conference call, please dial: 877-252-3031 (conference code: 22027631). An audio replay of the call will be available at the same location until October 26, 2023.

About Raymond James Financial, Inc.

Raymond James Financial, Inc. (NYSE: RJF) is a leading diversified financial services company providing private client group, capital markets, asset management, banking and other services to individuals, corporations and municipalities. The company has approximately 8,700 financial advisors. Total client assets are $1.28 trillion. Public since 1983, the firm is listed on the New York Stock Exchange under the symbol RJF. Additional information is available at www.raymondjames.com.

Forward-Looking Statements

Certain statements made in this press release 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, liquidity, cash flow and capital expenditures), industry or market conditions, demand for and pricing of our products, acquisitions, divestitures, anticipated results of litigation, regulatory developments, and general economic conditions. In addition, future or conditional verbs such as “will,” “may,” “could,” “should,” and “would,” as well as any other statement that necessarily depends on future events, is intended to identify forward-looking statements. Forward-looking statements are not guarantees, and they involve risks, uncertainties and assumptions. Although we make such statements based on assumptions that we believe to be reasonable, there can be no assurance that actual results will not differ materially from those expressed in the forward-looking statements. We caution investors not to rely unduly on any forward-looking statements and urge you to carefully consider the risks described in our filings with the Securities and Exchange Commission (the “SEC”) from time to time, including our most recent Annual Report on Form 10-K, and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, which are available at www.raymondjames.com and the SEC’s website at www.sec.gov. We expressly disclaim any obligation to update any forward-looking statement in the event it later turns out to be inaccurate, whether as a result of new information, future events, or otherwise.

Please refer to the footnotes at the end of this press release for additional information.

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RAYMOND JAMES FINANCIAL, INC. Fiscal Third Quarter of 2023			Selected Financial Highlights (Unaudited)

Summary results of operations

$ in millions, except per share amounts						Three months ended																					% change from
						June 30, 2023						June 30, 2022						March 31, 2023									June 30, 2022						March 31, 2023
Net revenues						$	2,907					$	2,718					$	2,873								7%						1%
Pre-tax income						$	486					$	415					$	557								17%						(13)%
Net income available to common shareholders						$	369					$	299					$	425								23%						(13)%
Earnings per common share: (5)
Basic						$	1.75					$	1.41					$	1.97								24%						(11)%
Diluted						$	1.71					$	1.38					$	1.93								24%						(11)%
Non-GAAP measures: (3)
Adjusted pre-tax income						$	526					$	480					$	585								10%						(10)%
Adjusted net income available to common shareholders						$	399					$	348					$	446								15%						(11)%
Adjusted earnings per common share – basic (5)						$	1.89					$	1.65					$	2.07								15%						(9)%
Adjusted earnings per common share – diluted (5)						$	1.85					$	1.61					$	2.03								15%						(9)%

						Nine months ended
$ in millions, except per share amounts						June 30, 2023						June 30, 2022						% change
Net revenues						$	8,566					$	8,172					5%
Pre-tax income						$	1,695					$	1,406					21%
Net income available to common shareholders						$	1,301					$	1,068					22%
Earnings per common share: (5)
Basic						$	6.09					$	5.12					19%
Diluted						$	5.95					$	4.99					19%
Non-GAAP measures: (3)
Adjusted pre-tax income						$	1,760					$	1,523					16%
Adjusted net income available to common shareholders						$	1,350					$	1,156					17%
Adjusted earnings per common share – basic (5)						$	6.32					$	5.55					14%
Adjusted earnings per common share – diluted (5)						$	6.17					$	5.41					14%

Other selected financial highlights						Three months ended																					Nine months ended
						June 30, 2023						June 30, 2022						March 31, 2023									June 30, 2023						June 30, 2022
Return on common equity (6)						14.9		%				13.3		%				17.3		%							17.9		%				16.3		%
Adjusted return on common equity (3) (6)						16.1		%				15.4		%				18.2		%							18.5		%				17.6		%
Adjusted return on tangible common equity (3) (6)						19.7		%				18.1		%				22.3		%							22.7		%				20.1		%
Pre-tax margin (7)						16.7		%				15.3		%				19.4		%							19.8		%				17.2		%
Adjusted pre-tax margin (3) (7)						18.1		%				17.7		%				20.4		%							20.5		%				18.6		%
Total compensation ratio (8)						63.7		%				67.5		%				63.3		%							63.1		%				68.2		%
Adjusted total compensation ratio (3) (8)						62.7		%				66.8		%				62.8		%							62.4		%				67.6		%
Effective tax rate						24.1		%				27.5		%				23.3		%							23.0		%				23.9		%

Please refer to the footnotes at the end of this press release for additional information.

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RAYMOND JAMES FINANCIAL, INC.             

Fiscal Third Quarter of 2023

Consolidated Statements of Income (Unaudited)
						Three months ended																		% change from
$ in millions, except per share amounts						June 30, 2023						June 30, 2022						March 31, 2023						June 30, 2022						March 31, 2023
Revenues:
Asset management and related administrative fees						$	1,373					$	1,427					$	1,302					(4)%						5%
Brokerage revenues:
Securities commissions						356						385						369						(8)%						(4)%
Principal transactions						105						128						127						(18)%						(17)%
Total brokerage revenues						461						513						496						(10)%						(7)%
Account and service fees						264						211						258						25%						2%
Investment banking						151						223						154						(32)%						(2)%
Interest income						987						374						915						164%						8%
Other						57						30						32						90%						78%
Total revenues						3,293						2,778						3,157						19%						4%
Interest expense						(386)						(60)						(284)						543%						36%
Net revenues						2,907						2,718						2,873						7%						1%
Non-interest expenses:
Compensation, commissions and benefits (9)						1,851						1,834						1,820						1%						2%
Non-compensation expenses:
Communications and information processing						149						129						153						16%						(3)%
Occupancy and equipment						68						65						68						5%						—%
Business development						66						58						54						14%						22%
Investment sub-advisory fees						40						38						36						5%						11%
Professional fees						35						38						38						(8)%						(8)%
Bank loan provision for credit losses (10)						54						56						28						(4)%						93%
Other (10) (11)						158						85						119						86%						33%
Total non-compensation expenses						570						469						496						22%						15%
Total non-interest expenses						2,421						2,303						2,316						5%						5%
Pre-tax income						486						415						557						17%						(13)%
Provision for income taxes						117						114						130						3%						(10)%
Net income						369						301						427						23%						(14)%
Preferred stock dividends						—						2						2						(100)%						(100)%
Net income available to common shareholders						$	369					$	299					$	425					23%						(13)%
Earnings per common share – basic (5)						$	1.75					$	1.41					$	1.97					24%						(11)%
Earnings per common share – diluted (5)						$	1.71					$	1.38					$	1.93					24%						(11)%
Weighted-average common shares outstanding – basic						210.1						210.7						214.3						—%						(2)%
Weighted-average common and common equivalent shares outstanding – diluted						214.8						215.7						219.2						—%						(2)%

Please refer to the footnotes at the end of this press release for additional information.

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RAYMOND JAMES FINANCIAL, INC.             

Fiscal Third Quarter of 2023

Consolidated Statements of Income (Unaudited)
						Nine months ended
$ in millions, except per share amounts						June 30, 2023						June 30, 2022						% change
Revenues:
Asset management and related administrative fees						$	3,917					$	4,273					(8)%
Brokerage revenues:
Securities commissions						1,077						1,232						(13)%
Principal transactions						364						403						(10)%
Total brokerage revenues						1,441						1,635						(12)%
Account and service fees						811						567						43%
Investment banking						446						883						(49)%
Interest income						2,729						841						224%
Other						133						108						23%
Total revenues						9,477						8,307						14%
Interest expense						(911)						(135)						575%
Net revenues						8,566						8,172						5%
Non-interest expenses:
Compensation, commissions and benefits (9)						5,407						5,570						(3)%
Non-compensation expenses:
Communications and information processing						441						368						20%
Occupancy and equipment						202						186						9%
Business development						176						127						39%
Investment sub-advisory fees						110						116						(5)%
Professional fees						105						93						13%
Bank loan provision for credit losses (10)						96						66						45%
Other (10) (11) (12)						334						240						39%
Total non-compensation expenses						1,464						1,196						22%
Total non-interest expenses						6,871						6,766						2%
Pre-tax income						1,695						1,406						21%
Provision for income taxes						390						336						16%
Net income						1,305						1,070						22%
Preferred stock dividends						4						2						100%
Net income available to common shareholders						$	1,301					$	1,068					22%
Earnings per common share – basic (5)						$	6.09					$	5.12					19%
Earnings per common share – diluted (5)						$	5.95					$	4.99					19%
Weighted-average common shares outstanding – basic						213.0						208.1						2%
Weighted-average common and common equivalent shares outstanding – diluted						218.0						213.5						2%

    

Please refer to the footnotes at the end of this press release for additional information.

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RAYMOND JAMES FINANCIAL, INC.			Consolidated Selected Key Metrics
Fiscal Third Quarter of 2023			(Unaudited)

						As of																					% change from
$ in millions, except per share amounts						June 30, 2023						June 30, 2022						March 31, 2023									June 30, 2022						March 31, 2023
Total assets						$	77,633					$	86,111					$	79,180								(10)%						(2)%
Total common equity attributable to Raymond James Financial, Inc.						$	9,870					$	9,395					$	9,875								5%						—%
Book value per share (13)						$	47.34					$	43.60					$	46.67								9%						1%
Tangible book value per share (3) (13)						$	38.71					$	35.79					$	38.14								8%						1%
Capital ratios:
Tier 1 leverage						11.4		%	(4)			10.8		%				11.5		%
Tier 1 capital						20.6		%	(4)			20.0		%				20.1		%
Common equity tier 1						20.4		%	(4)			20.0		%				19.9		%
Total capital						22.0		%	(4)			21.5		%				21.4		%

Client asset metrics ($ in billions)						As of																					% change from
						June 30, 2023						June 30, 2022						March 31, 2023									June 30, 2022						March 31, 2023
Client assets under administration						$	1,280.9					$	1,125.3					$	1,224.4								14%						5%
Private Client Group assets under administration						$	1,227.0					$	1,068.8					$	1,171.1								15%						5%
Private Client Group assets in fee-based accounts						$	697.0					$	606.7					$	666.3								15%						5%
Financial assets under management						$	200.7					$	182.4					$	194.4								10%						3%

Net new assets metrics (1)($ in millions)						Three months ended																					Nine months ended
						June 30, 2023						June 30, 2022						March 31, 2023									June 30, 2023						June 30, 2022
Domestic Private Client Group net new assets (2)						$	14,386					$	14,663					$	21,473								$	59,085					$	74,857
Domestic Private Client Group net new assets growth — annualized (2)						5.4		%				5.4		%				8.4		%							8.3		%				9.5		%

Clients’ domestic cash sweep and Enhanced Savings Program balances ($ in millions)						As of																					% change from
						June 30, 2023						June 30, 2022						March 31, 2023									June 30, 2022						March 31, 2023
Raymond James Bank Deposit Program (“RJBDP”): (14)
Bank segment (14)						$	27,915					$	36,646					$	37,682								(24)%						(26)%
Third-party banks						16,923						25,478						9,408									(34)%						80%
Subtotal RJBDP						44,838						62,124						47,090									(28)%						(5)%
Client Interest Program						1,915						13,717						2,385									(86)%						(20)%
Total clients’ domestic cash sweep balances						46,753						75,841						49,475									(38)%						(6)%
Enhanced Savings Program (15)						11,225						—						2,746									NM						309%
Total clients’ domestic cash sweep and Enhanced Savings Program balances						$	57,978					$	75,841					$	52,221								(24)%						11%

						Three months ended																					Nine months ended
						June 30, 2023						June 30, 2022						March 31, 2023									June 30, 2023						June 30, 2022
Average yield on RJBDP - third-party banks (16)						3.37		%				0.88		%				3.25		%							3.05		%				0.50		%

Private Client Group financial advisors						As of																					% change from
						June 30, 2023						June 30, 2022						March 31, 2023									June 30, 2022						March 31, 2023
Employees						3,654						3,615						3,628									1%						1%
Independent contractors (2)						5,050						5,001						5,098									1%						(1)%
Total advisors (2)						8,704						8,616						8,726									1%						—%

Please refer to the footnotes at the end of this press release for additional information.

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RAYMOND JAMES FINANCIAL, INC.			Consolidated Net Interest
Fiscal Third Quarter of 2023			(Unaudited)

The following tables present our consolidated average interest-earning asset and interest-bearing liability balances, interest income and expense and the related rates.

						Three months ended
						June 30, 2023																					June 30, 2022																					March 31, 2023
$ in millions						Average balance						Interest						Annualized average rate									Average balance						Interest						Annualized average rate									Average balance						Interest						Annualized average rate
						INTEREST-EARNING ASSETS
Bank segment
Cash and cash equivalents						$	5,502					$	70					5.08		%							$	1,603					$	3					0.94		%							$	3,093					$	36					4.64		%
Available-for-sale securities						10,737						56						2.07		%							9,972						37						1.47		%							10,869						54						2.00		%
Loans held for sale and investment: (17)
Loans held for investment:
Securities-based loans (“SBL”) (18)						14,200						251						7.02		%							9,854						78						3.09		%							14,493						240						6.63		%
Commercial and industrial (“C&I”) loans						10,916						198						7.19		%							9,606						76						3.14		%							11,236						188						6.69		%
Commercial real estate (“CRE”) loans						7,097						136						7.53		%							4,338						36						3.30		%							6,961						123						7.07		%
Real estate investment trust (“REIT”) loans						1,716						31						7.30		%							1,379						11						3.20		%							1,671						31						7.11		%
Residential mortgage loans						8,279						67						3.22		%							6,334						44						2.77		%							7,979						62						3.13		%
Tax-exempt loans (19)						1,629						11						3.17		%							1,329						8						3.16		%							1,652						10						3.16		%
Loans held for sale						195						4						9.63		%							222						2						3.08		%							170						3						7.23		%
Total loans held for sale and investment						44,032						698						6.31		%							33,062						255						3.08		%							44,162						657						5.97		%
All other interest-earning assets						126						2						5.56		%							123						1						3.13		%							153						2						5.80		%
Interest-earning assets — Bank segment						$	60,397					$	826					5.44		%							$	44,760					$	296					2.64		%							$	58,277					$	749					5.16		%
All other segments
Cash and cash equivalents						$	2,820					$	39					5.51		%							$	3,945					$	7					0.63		%							$	3,130					$	39					5.10		%
Assets segregated for regulatory purposes and restricted cash						4,236						47						4.69		%							17,337						28						0.63		%							4,856						55						4.36		%
Trading assets — debt securities						1,025						13						5.00		%							377						4						4.87		%							1,057						13						5.05		%
Brokerage client receivables						2,105						42						8.14		%							2,555						24						3.87		%							2,205						41						7.66		%
All other interest-earning assets						1,830						20						3.52		%							2,117						15						2.90		%							1,817						18						3.12		%
Interest-earning assets — all other segments						$	12,016					$	161					5.34		%							$	26,331					$	78					1.17		%							$	13,065					$	166					4.98		%
Total interest-earning assets						$	72,413					$	987					5.42		%							$	71,091					$	374					2.11		%							$	71,342					$	915					5.13		%
						INTEREST-BEARING LIABILITIES
Bank Segment
Bank deposits:
Money market and savings accounts (14)						$	38,757					$	130					1.35		%							$	37,214					$	11					0.12		%							$	44,554					$	132					1.20		%
Interest-bearing demand deposits (15)						12,877						157						4.86		%							2,216						7						1.25		%							5,620						62						4.47		%
Certificates of deposit						2,806						30						4.24		%							842						3						1.58		%							1,859						16						3.57		%
Total bank deposits (20)						54,440						317						2.33		%							40,272						21						0.21		%							52,033						210						1.64		%
FHLB advances and all other interest-bearing liabilities						1,478						12						3.18		%							1,114						5						1.73		%							1,452						9						2.80		%
Interest-bearing liabilities — Bank segment						$	55,918					$	329					2.35		%							$	41,386					$	26					0.25		%							$	53,485					$	219					1.67		%
All other segments
Trading liabilities — debt securities						$	703					$	9					5.18		%							$	164					$	1					2.76		%							$	725					$	7					4.14		%
Brokerage client payables						5,184						17						1.48		%							16,892						3						0.08		%							6,044						23						1.52		%
Senior notes payable						2,038						23						4.44		%							2,037						23						4.44		%							2,038						23						4.44		%
All other interest-bearing liabilities (20)						579						8						3.88		%							363						7						2.73		%							603						12						3.72		%
Interest-bearing liabilities — all other segments						$	8,504					$	57					2.66		%							$	19,456					$	34					0.70		%							$	9,410					$	65					2.43		%
Total interest-bearing liabilities						$	64,422					$	386					2.39		%							$	60,842					$	60					0.40		%							$	62,895					$	284					1.78		%
Firmwide net interest income												$	601																				$	314																				$	631
Net interest margin (net yield on interest-earning assets)
Bank segment																		3.26		%																			2.41		%																			3.63		%
Firmwide																		3.33		%																			1.77		%																			3.59		%

Please refer to the footnotes at the end of this press release for additional information.

9

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RAYMOND JAMES FINANCIAL, INC.			Consolidated Net Interest
Fiscal Third Quarter of 2023			(Unaudited)

						Nine months ended
						June 30, 2023																					June 30, 2022
$ in millions						Average balance						Interest						Average rate									Average balance						Interest						Average rate
						INTEREST-EARNING ASSETS
Bank segment
Cash and cash equivalents						$	3,637					$	128					4.66		%							$	1,785					$	5					0.42		%
Available-for-sale securities						10,886						163						1.99		%							9,116						84						1.23		%
Loans held for sale and investment: (17)
Loans held for investment:
SBL (18)						14,580						717						6.49		%							7,630						152						2.62		%
C&I loans						11,109						555						6.59		%							8,989						185						2.72		%
CRE loans						6,951						369						6.99		%							3,476						76						2.90		%
REIT loans						1,671						86						6.80		%							1,278						27						2.76		%
Residential mortgage loans						7,960						186						3.12		%							5,851						119						2.69		%
Tax-exempt loans (19)						1,625						31						3.13		%							1,305						25						3.18		%
Loans held for sale						184						10						7.46		%							243						6						2.98		%
Total loans held for sale and investment						44,080						1,954						5.88		%							28,772						590						2.73		%
All other interest-earning assets						141						6						5.54		%							127						3						2.66		%
Interest-earning assets — Bank segment						$	58,744					$	2,251					5.08		%							$	39,800					$	682					2.28		%
All other segments
Cash and cash equivalents						$	3,084					$	111					4.81		%							$	4,034					$	11					0.35		%
Assets segregated for regulatory purposes and restricted cash						5,125						152						3.96		%							15,879						39						0.32		%
Trading assets — debt securities						1,055						40						5.05		%							452						13						3.90		%
Brokerage client receivables						2,236						124						7.46		%							2,533						66						3.50		%
All other interest-earning assets						1,829						51						3.25		%							1,892						30						2.20		%
Interest-earning assets — all other segments						$	13,329					$	478					4.73		%							$	24,790					$	159					0.86		%
Total interest-earning assets						$	72,073					$	2,729					5.02		%							$	64,590					$	841					1.74		%
						INTEREST-BEARING LIABILITIES
Bank Segment
Bank deposits:
Money market and savings accounts (14)						$	42,828					$	383					1.20		%							$	34,099					$	12					0.05		%
Interest-bearing demand deposits (15)						7,881						266						4.49		%							909						10						1.26		%
Certificates of deposit						1,960						54						3.66		%							806						10						1.76		%
Total bank deposits (20)						52,669						703						1.78		%							35,814						32						0.12		%
FHLB advances and all other interest-bearing liabilities						1,408						30						2.82		%							928						14						2.06		%
Interest-bearing liabilities — Bank segment						$	54,077					$	733					1.81		%							$	36,742					$	46					0.17		%
All other segments
Trading liabilities — debt securities						$	736					$	26					4.80		%							$	179					$	3					1.97		%
Brokerage client payables						6,291						57						1.25		%							16,741						4						0.03		%
Senior notes payable						2,038						69						4.44		%							2,037						69						4.44		%
All other interest-bearing liabilities (20)						655						26						4.06		%							231						13						7.45		%
Interest-bearing liabilities — all other segments						$	9,720					$	178					2.38		%							$	19,188					$	89					0.61		%
Total interest-bearing liabilities						$	63,797					$	911					1.90		%							$	55,930					$	135					0.32		%
Firmwide net interest income												$	1,818																				$	706
Net interest margin (net yield on interest-earning assets)
Bank segment																		3.41		%																			2.14		%
Firmwide																		3.37		%																			1.46		%

Please refer to the footnotes at the end of this press release for additional information.

10

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RAYMOND JAMES FINANCIAL, INC.			Segment Results
Fiscal Third Quarter of 2023			(Unaudited)

						Three months ended																		% change from
$ in millions						June 30, 2023						June 30, 2022						March 31, 2023						June 30, 2022						March 31, 2023
Net revenues:
Private Client Group						$	2,182					$	1,958					$	2,144					11%						2%
Capital Markets						276						383						302						(28)%						(9)%
Asset Management						226						228						216						(1)%						5%
Bank						514						276						540						86%						(5)%
Other (21)						15						(21)						10						NM						50%
Intersegment eliminations						(306)						(106)						(339)						189%						(10)%
Total net revenues						$	2,907					$	2,718					$	2,873					7%						1%
Pre-tax income/(loss):
Private Client Group						$	411					$	251					$	441					64%						(7)%
Capital Markets						(34)						61						(34)						NM						—%
Asset Management						89						93						82						(4)%						9%
Bank						66						74						91						(11)%						(27)%
Other (21)						(46)						(64)						(23)						28%						(100)%
Pre-tax income						$	486					$	415					$	557					17%						(13)%

						Nine months ended
$ in millions						June 30, 2023						June 30, 2022						% change
Net revenues:
Private Client Group						$	6,389					$	5,719					12%
Capital Markets						873						1,410						(38)%
Asset Management						649						698						(7)%
Bank						1,562						656						138%
Other (21)						34						(54)						NM
Intersegment eliminations						(941)						(257)						266%
Total net revenues						$	8,566					$	8,172					5%
Pre-tax income/(loss):
Private Client Group						$	1,286					$	659					95%
Capital Markets						(84)						349						NM
Asset Management						251						303						(17)%
Bank						293						259						13%
Other (12) (21)						(51)						(164)						69%
Pre-tax income						$	1,695					$	1,406					21%

Please refer to the footnotes at the end of this press release for additional information.

11

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RAYMOND JAMES FINANCIAL, INC.			Segment Results
Fiscal Third Quarter of 2023			(Unaudited)

Private Client Group
						Three months ended																		% change from
$ in millions						June 30, 2023						June 30, 2022						March 31, 2023						June 30, 2022						March 31, 2023
Revenues:
Asset management and related administrative fees						$	1,164					$	1,214					$	1,102					(4)%						6%
Brokerage revenues:
Mutual and other fund products						135						149						135						(9)%						—%
Insurance and annuity products						103						109						113						(6)%						(9)%
Equities, ETFs and fixed income products						111						115						116						(3)%						(4)%
Total brokerage revenues						349						373						364						(6)%						(4)%
Account and service fees:
Mutual fund and annuity service fees						103						102						105						1%						(2)%
RJBDP fees: (14)
Bank segment (14)						277						79						311						251%						(11)%
Third-party banks						107						56						100						91%						7%
Client account and other fees						59						59						56						—%						5%
Total account and service fees						546						296						572						84%						(5)%
Investment banking						9						6						9						50%						—%
Interest income						114						68						117						68%						(3)%
All other						25						11						9						127%						178%
Total revenues						2,207						1,968						2,173						12%						2%
Interest expense						(25)						(10)						(29)						150%						(14)%
Net revenues						2,182						1,958						2,144						11%						2%
Non-interest expenses:
Financial advisor compensation and benefits						1,151						1,187						1,118						(3)%						3%
Administrative compensation and benefits						355						306						345						16%						3%
Total compensation, commissions and benefits						1,506						1,493						1,463						1%						3%
Non-compensation expenses						265						214						240						24%						10%
Total non-interest expenses						1,771						1,707						1,703						4%						4%
Pre-tax income						$	411					$	251					$	441					64%						(7)%

Please refer to the footnotes at the end of this press release for additional information.

12

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RAYMOND JAMES FINANCIAL, INC.			Segment Results
Fiscal Third Quarter of 2023			(Unaudited)

Private Client Group
						Nine months ended
$ in millions						June 30, 2023						June 30, 2022						% change
Revenues:
Asset management and related administrative fees						$	3,319					$	3,621					(8)%
Brokerage revenues:
Mutual and other fund products						398						486						(18)%
Insurance and annuity products						320						330						(3)%
Equities, ETFs and fixed income products						340						351						(3)%
Total brokerage revenues						1,058						1,167						(9)%
Account and service fees:
Mutual fund and annuity service fees						306						325						(6)%
RJBDP fees: (14)
Bank segment (14)						856						178						381%
Third-party banks						344						93						270%
Client account and other fees						175						161						9%
Total account and service fees						1,681						757						122%
Investment banking						27						28						(4)%
Interest income						340						138						146%
All other						40						24						67%
Total revenues						6,465						5,735						13%
Interest expense						(76)						(16)						375%
Net revenues						6,389						5,719						12%
Non-interest expenses:
Financial advisor compensation and benefits						3,344						3,605						(7)%
Administrative compensation and benefits						1,042						878						19%
Total compensation, commissions and benefits						4,386						4,483						(2)%
Non-compensation expenses						717						577						24%
Total non-interest expenses						5,103						5,060						1%
Pre-tax income						$	1,286					$	659					95%

Please refer to the footnotes at the end of this press release for additional information.

13

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RAYMOND JAMES FINANCIAL, INC.			Segment Results
Fiscal Third Quarter of 2023			(Unaudited)

Capital Markets
						Three months ended																		% change from
$ in millions						June 30, 2023						June 30, 2022						March 31, 2023						June 30, 2022						March 31, 2023
Revenues:
Brokerage revenues:
Fixed income						$	78					$	107					$	96					(27)%						(19)%
Equity						32						32						34						—%						(6)%
Total brokerage revenues						110						139						130						(21)%						(15)%
Investment banking:
Merger & acquisition and advisory						88						147						87						(40)%						1%
Equity underwriting						25						36						29						(31)%						(14)%
Debt underwriting						28						34						29						(18)%						(3)%
Total investment banking						141						217						145						(35)%						(3)%
Interest income						21						6						21						250%						—%
Affordable housing investments business revenues						21						21						23						—%						(9)%
All other						4						3						3						33%						33%
Total revenues						297						386						322						(23)%						(8)%
Interest expense						(21)						(3)						(20)						600%						5%
Net revenues						276						383						302						(28)%						(9)%
Non-interest expenses:
Compensation, commissions and benefits						220						243						231						(9)%						(5)%
Non-compensation expenses						90						79						105						14%						(14)%
Total non-interest expenses						310						322						336						(4)%						(8)%
Pre-tax income/(loss)						$	(34)					$	61					$	(34)					NM						—%

						Nine months ended
$ in millions						June 30, 2023						June 30, 2022						% change
Revenues:
Brokerage revenues:
Fixed income						$	274					$	352					(22)%
Equity						100						112						(11)%
Total brokerage revenues						374						464						(19)%
Investment banking:
Merger & acquisition and advisory						277						557						(50)%
Equity underwriting						69						185						(63)%
Debt underwriting						73						113						(35)%
Total investment banking						419						855						(51)%
Interest income						65						16						306%
Affordable housing investments business revenues						68						71						(4)%
All other						11						12						(8)%
Total revenues						937						1,418						(34)%
Interest expense						(64)						(8)						700%
Net revenues						873						1,410						(38)%
Non-interest expenses:
Compensation, commissions and benefits						664						827						(20)%
Non-compensation expenses						293						234						25%
Total non-interest expenses						957						1,061						(10)%
Pre-tax income/(loss)						$	(84)					$	349					NM

Please refer to the footnotes at the end of this press release for additional information.

14

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RAYMOND JAMES FINANCIAL, INC.			Segment Results
Fiscal Third Quarter of 2023			(Unaudited)

Asset Management
						Three months ended																		% change from
$ in millions						June 30, 2023						June 30, 2022						March 31, 2023						June 30, 2022						March 31, 2023
Revenues:
Asset management and related administrative fees:
Managed programs						$	146					$	145					$	140					1%						4%
Administration and other						71						75						66						(5)%						8%
Total asset management and related administrative fees						217						220						206						(1)%						5%
Account and service fees						5						5						6						—%						(17)%
All other						4						3						4						33%						—%
Net revenues						226						228						216						(1)%						5%
Non-interest expenses:
Compensation, commissions and benefits						51						49						52						4%						(2)%
Non-compensation expenses						86						86						82						—%						5%
Total non-interest expenses						137						135						134						1%						2%
Pre-tax income						$	89					$	93					$	82					(4)%						9%

						Nine months ended
$ in millions						June 30, 2023						June 30, 2022						% change
Revenues:
Asset management and related administrative fees:
Managed programs						$	420					$	445					(6)%
Administration and other						200						228						(12)%
Total asset management and related administrative fees						620						673						(8)%
Account and service fees						16						17						(6)%
All other						13						8						63%
Net revenues						649						698						(7)%
Non-interest expenses:
Compensation, commissions and benefits						150						142						6%
Non-compensation expenses						248						253						(2)%
Total non-interest expenses						398						395						1%
Pre-tax income						$	251					$	303					(17)%

Please refer to the footnotes at the end of this press release for additional information.

15

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RAYMOND JAMES FINANCIAL, INC.						Segment Results
Fiscal Third Quarter of 2022						(Unaudited)

Bank
						Three months ended																		% change from
$ in millions						June 30, 2023						June 30, 2022						March 31, 2023						June 30, 2022						March 31, 2023
Revenues:
Interest income						$	826					$	296					$	749					179%						10%
Interest expense						(329)						(26)						(219)						1,165%						50%
Net interest income						497						270						530						84%						(6)%
All other						17						6						10						183%						70%
Net revenues						514						276						540						86%						(5)%
Non-interest expenses:
Compensation and benefits						48						21						48						129%						—%
Non-compensation expenses:
Bank loan provision for credit losses						54						56						28						(4)%						93%
RJBDP fees to Private Client Group (14)						277						79						311						251%						(11)%
All other						69						46						62						50%						11%
Total non-compensation expenses						400						181						401						121%						—%
Total non-interest expenses						448						202						449						122%						—%
Pre-tax income						$	66					$	74					$	91					(11)%						(27)%

						Nine months ended
$ in millions						June 30, 2023						June 30, 2022						% change
Revenues:
Interest income						$	2,251					$	682					230%
Interest expense						(733)						(46)						1,493%
Net interest income						1,518						636						139%
All other						44						20						120%
Net revenues						1,562						656						138%
Non-interest expenses:
Compensation and benefits						136						48						183%
Non-compensation expenses:
Bank loan provision for credit losses						96						66						45%
RJBDP fees to Private Client Group (14)						856						178						381%
All other						181						105						72%
Total non-compensation expenses						1,133						349						225%
Total non-interest expenses						1,269						397						220%
Pre-tax income						$	293					$	259					13%

Please refer to the footnotes at the end of this press release for additional information.

16

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RAYMOND JAMES FINANCIAL, INC.			Segment Results
Fiscal Third Quarter of 2023			(Unaudited)

Other (21)
						Three months ended																		% change from
$ in millions						June 30, 2023						June 30, 2022						March 31, 2023						June 30, 2022						March 31, 2023
Revenues:
Interest income						$	37					$	6					$	36					517%						3%
Net gains/(losses) on private equity investments						2						(3)						1						NM						100%
Total revenues						39						3						37						1,200%						5%
Interest expense						(24)						(24)						(27)						—%						(11)%
Net revenues						15						(21)						10						NM						50%
Non-interest expenses:
Compensation and benefits						27						28						26						(4)%						4%
All other						34						15						7						127%						386%
Total non-interest expenses						61						43						33						42%						85%
Pre-tax loss						$	(46)					$	(64)					$	(23)					28%						(100)%

						Nine months ended
$ in millions						June 30, 2023						June 30, 2022						% change
Revenues:
Interest income						$	103					$	10					930%
Net gains on private equity investments						5						—						NM
All other						1						7						(86)%
Total revenues						109						17						541%
Interest expense						(75)						(71)						6%
Net revenues						34						(54)						NM
Non-interest expenses:
Compensation and benefits						71						70						1%
Insurance settlement received (12)						(32)						—						NM
All other						46						40						15%
Total non-interest expenses						85						110						(23)%
Pre-tax loss						$	(51)					$	(164)					69%

Please refer to the footnotes at the end of this press release for additional information.

17

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RAYMOND JAMES FINANCIAL, INC.			Bank Segment Selected Key Metrics
Fiscal Third Quarter of 2023			(Unaudited)

Bank Segment

Our Bank segment includes Raymond James Bank and TriState Capital Bank.

						As of																		% change from
$ in millions						June 30, 2023						June 30, 2022						March 31, 2023						June 30, 2022						March 31, 2023
Total assets						$	59,506					$	55,562					$	60,400					7%						(1)%
Bank loans, net:
Raymond James Bank						$	30,834					$	30,053					$	31,425					3%						(2)%
TriState Capital Bank						12,511						11,790						12,258						6%						2%
Total bank loans, net						$	43,345					$	41,843					$	43,683					4%						(1)%
Bank loan allowance for credit losses						$	456					$	377					$	415					21%						10%
Bank loan allowance for credit losses as a % of total loans held for investment						1.04		%				0.90		%				0.94		%
Bank loan allowance for credit losses on corporate loans as a % of corporate loans held for investment (22)						1.90		%				1.73		%				1.67		%
Total nonperforming assets						$	127					$	92					$	99					38%						28%
Nonperforming assets as a % of total assets						0.21		%				0.17		%				0.16		%
Total criticized loans						$	411					$	687					$	403					(40)%						2%
Criticized loans as a % of loans held for investment						0.94		%				1.63		%				0.92		%
Total bank deposits						$	53,768					$	49,887					$	54,229					8%						(1)%

						Three months ended																		% change from												Nine months ended
$ in millions						June 30, 2023						June 30, 2022						March 31, 2023						June 30, 2022						March 31, 2023						June 30, 2023						June 30, 2022						% change
Bank loan provision for credit losses (10)						$	54					$	56					$	28					(4)%						93%						$	96					$	66					45%
Net charge-offs						$	15					$	10					$	20					50%						(25)%						$	37					$	12					208%

Please refer to the footnotes at the end of this press release for additional information.

18

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RAYMOND JAMES FINANCIAL, INC.			Non-GAAP Financial Measures
Fiscal Third Quarter of 2023			(Unaudited)

Reconciliation of non-GAAP financial measures to GAAP financial measures

We utilize certain non-GAAP financial measures as additional measures to aid in, and enhance, the understanding of our financial results and related measures. These non-GAAP financial measures have been separately identified in this document. We believe certain of these non-GAAP financial measures provide useful information to management and investors by excluding certain material items that may not be indicative of our core operating results. We utilize these non-GAAP financial measures in assessing the financial performance of the business, as they facilitate a comparison of current- and prior-period results. We believe that return on tangible common equity and tangible book value per share are meaningful to investors as they facilitate comparisons of our results to the results of other companies. In the following tables, the tax effect of non-GAAP adjustments reflects the statutory rate associated with each non-GAAP item. These non-GAAP financial measures should be considered in addition to, and not as a substitute for, measures of financial performance prepared in accordance with GAAP. In addition, our non-GAAP financial measures may not be comparable to similarly titled non-GAAP financial measures of other companies. The following tables provide a reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures.

						Three months ended																					Nine months ended
$ in millions						June 30, 2023						June 30, 2022						March 31, 2023									June 30, 2023						June 30, 2022
Net income available to common shareholders						$	369					$	299					$	425								$	1,301					$	1,068
Non-GAAP adjustments:
Expenses directly related to acquisitions included in the following financial statement line items:
Compensation, commissions and benefits:
Acquisition-related retention (9)						18						16						17									53						41
Other acquisition-related compensation						10						2						—									10						2
Total “Compensation, commissions and benefits” expense						28						18						17									63						43
Professional fees						1						4						—									1						11
Bank loan provision for credit losses — Initial provision for credit losses on acquired loans (10)						—						26						—									—						26
Other:
Amortization of identifiable intangible assets (23)						11						8						11									33						22
Initial provision for credit losses on acquired lending commitments (10)						—						5						—									—						5
All other acquisition-related expenses						—						4						—									—						10
Total “Other” expense						11						17						11									33						37
Total expenses related to acquisitions						40						65						28									97						117
Other — Insurance settlement received (12)						—						—						—									(32)						—
Pre-tax impact of non-GAAP adjustments						40						65						28									65						117
Tax effect of non-GAAP adjustments						(10)						(16)						(7)									(16)						(29)
Total non-GAAP adjustments, net of tax						30						49						21									49						88
Adjusted net income available to common shareholders (3)						$	399					$	348					$	446								$	1,350					$	1,156
Pre-tax income						$	486					$	415					$	557								$	1,695					$	1,406
Pre-tax impact of non-GAAP adjustments (as detailed above)						40						65						28									65						117
Adjusted pre-tax income (3)						$	526					$	480					$	585								$	1,760					$	1,523
Compensation, commissions and benefits expense						$	1,851					$	1,834					$	1,820								$	5,407					$	5,570
Less: Total compensation-related acquisition expenses (as detailed above)						28						18						17									63						43
Adjusted “Compensation, commissions and benefits” expense (3)						$	1,823					$	1,816					$	1,803								$	5,344					$	5,527

Please refer to the footnotes at the end of this press release for additional information.

19

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RAYMOND JAMES FINANCIAL, INC.			Non-GAAP Financial Measures
Fiscal Third Quarter of 2023			(Unaudited)

Reconciliation of non-GAAP financial measures to GAAP financial measures
(Continued from previous page)
						Three months ended																					Nine months ended
						June 30, 2023						June 30, 2022						March 31, 2023									June 30, 2023						June 30, 2022
Pre-tax margin (7)						16.7		%				15.3		%				19.4		%							19.8		%				17.2		%
Impact of non-GAAP adjustments on pre-tax margin:
Compensation, commissions and benefits:
Acquisition-related retention (9)						0.7		%				0.6		%				0.5		%							0.6		%				0.5		%
Other acquisition-related compensation						0.3		%				0.1		%				—		%							0.1		%				0.1		%
Total “Compensation, commissions and benefits” expense						1.0		%				0.7		%				0.5		%							0.7		%				0.6		%
Professional fees						—		%				0.1		%				—		%							—		%				0.1		%
Bank loan provision for credit losses — Initial provision for credit losses on acquired loans (10)						—		%				1.0		%				—		%							—		%				0.3		%
Other:
Amortization of identifiable intangible assets (23)						0.4		%				0.3		%				0.5		%							0.4		%				0.2		%
Initial provision for credit losses on acquired lending commitments (10)						—		%				0.2		%				—		%							—		%				0.1		%
All other acquisition-related expenses						—		%				0.1		%				—		%							—		%				0.1		%
Total “Other” expense						0.4		%				0.6		%				0.5		%							0.4		%				0.4		%
Total expenses related to acquisitions						1.4		%				2.4		%				1.0		%							1.1		%				1.4		%
Other — Insurance settlement received (12)						—		%				—		%				—		%							(0.4)		%				—		%
Total non-GAAP adjustments						1.4		%				2.4		%				1.0		%							0.7		%				1.4		%
Adjusted pre-tax margin (3) (7)						18.1		%				17.7		%				20.4		%							20.5		%				18.6		%
Total compensation ratio (8)						63.7		%				67.5		%				63.3		%							63.1		%				68.2		%
Less the impact of non-GAAP adjustments on compensation ratio:
Acquisition-related retention (9)						0.7		%				0.6		%				0.5		%							0.6		%				0.5		%
Other acquisition-related compensation						0.3		%				0.1		%				—		%							0.1		%				0.1		%
Total “Compensation, commissions and benefits” expenses related to acquisitions						1.0		%				0.7		%				0.5		%							0.7		%				0.6		%
Adjusted total compensation ratio (3) (8)						62.7		%				66.8		%				62.8		%							62.4		%				67.6		%

Please refer to the footnotes at the end of this press release for additional information.

20

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RAYMOND JAMES FINANCIAL, INC.			Non-GAAP Financial Measures
Fiscal Third Quarter of 2023			(Unaudited)

Reconciliation of non-GAAP financial measures to GAAP financial measures
(Continued from previous page)
						Three months ended																								Nine months ended
Earnings per common share (5)						June 30, 2023						June 30, 2022						March 31, 2023												June 30, 2023						June 30, 2022
Basic						$	1.75					$	1.41					$	1.97											$	6.09					$	5.12
Impact of non-GAAP adjustments on basic earnings per common share:
Compensation, commissions and benefits:
Acquisition-related retention (9)						0.09						0.08						0.08												0.25						0.20
Other acquisition-related compensation						0.05						0.01						—												0.05						0.01
Total “Compensation, commissions and benefits” expense						0.14						0.09						0.08												0.30						0.21
Professional fees						—						0.02						—												—						0.05
Bank loan provision for credit losses — Initial provision for credit losses on acquired loans (10)						—						0.12						—												—						0.13
Other:
Amortization of identifiable intangible assets (23)						0.05						0.04						0.05												0.16						0.11
Initial provision for credit losses on acquired lending commitments (10)						—						0.02						—												—						0.02
All other acquisition-related expenses						—						0.02						—												—						0.05
Total “Other” expense						0.05						0.08						0.05												0.16						0.18
Total expenses related to acquisitions						0.19						0.31						0.13												0.46						0.57
Other — Insurance settlement received (12)						—						—						—												(0.15)						—
Tax effect of non-GAAP adjustments						(0.05)						(0.07)						(0.03)												(0.08)						(0.14)
Total non-GAAP adjustments, net of tax						0.14						0.24						0.10												0.23						0.43
Adjusted basic (3)						$	1.89					$	1.65					$	2.07											$	6.32					$	5.55
Diluted						$	1.71					$	1.38					$	1.93											$	5.95					$	4.99
Impact of non-GAAP adjustments on diluted earnings per common share:
Compensation, commissions and benefits:
Acquisition-related retention (9)						0.09						0.07						0.08												0.24						0.19
Other acquisition-related compensation						0.05						0.01						—												0.05						0.01
Total “Compensation, commissions and benefits” expense						0.14						0.08						0.08												0.29						0.20
Professional fees						—						0.02						—												—						0.05
Bank loan provision for credit losses — Initial provision for credit losses on acquired loans (10)						—						0.12						—												—						0.12
Other:
Amortization of identifiable intangible assets (23)						0.05						0.04						0.05												0.15						0.11
Initial provision for credit losses on acquired lending commitments (10)						—						0.02						—												—						0.02
All other acquisition-related expenses						—						0.02						—												—						0.05
Total “Other” expense						0.05						0.08						0.05												0.15						0.18
Total expenses related to acquisitions						0.19						0.30						0.13												0.44						0.55
Other — Insurance settlement received (12)						—						—						—												(0.15)						—
Tax effect of non-GAAP adjustments						(0.05)						(0.07)						(0.03)												(0.07)						(0.13)
Total non-GAAP adjustments, net of tax						0.14						0.23						0.10												0.22						0.42
Adjusted diluted (3)						$	1.85					$	1.61					$	2.03											$	6.17					$	5.41

Please refer to the footnotes at the end of this press release for additional information.

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RAYMOND JAMES FINANCIAL, INC.			Non-GAAP Financial Measures
Fiscal Third Quarter of 2023			(Unaudited)

Reconciliation of non-GAAP financial measures to GAAP financial measures

(Continued from previous page)

Book value per share						As of
$ in millions, except per share amounts						June 30, 2023						June 30, 2022						March 31, 2023
Total common equity attributable to Raymond James Financial, Inc.						$	9,870					$	9,395					$	9,875
Less non-GAAP adjustments:
Goodwill and identifiable intangible assets, net						1,928						1,810						1,932
Deferred tax liabilities related to goodwill and identifiable intangible assets, net						(129)						(128)						(128)
Tangible common equity attributable to Raymond James Financial, Inc.						$	8,071					$	7,713					$	8,071
Common shares outstanding						208.5						215.5						211.6
Book value per share (13)						$	47.34					$	43.60					$	46.67
Tangible book value per share (3) (13)						$	38.71					$	35.79					$	38.14

Return on common equity						Three months ended																											Nine months ended
$ in millions						June 30, 2023						June 30, 2022						March 31, 2023															June 30, 2023						June 30, 2022
Average common equity (24)						$	9,873					$	8,999					$	9,806														$	9,705					$	8,711
Impact of non-GAAP adjustments on average common equity:
Compensation, commissions and benefits:
Acquisition-related retention (9)						9						8						9															27						19
Other acquisition-related compensation						4						1						—															2						1
Total “Compensation, commissions and benefits” expense						13						9						9															29						20
Professional fees						1						2						—															—						5
Bank loan provision for credit losses — Initial provision for credit losses on acquired loans (10)						—						13						—															—						7
Other:
Amortization of identifiable intangible assets (23)						6						4						6															17						11
Initial provision for credit losses on acquired lending commitments (10)						—						3						—															—						1
All other acquisition-related expenses						—						2						—															—						4
Total “Other” expense						6						9						6															17						16
Total expenses related to acquisitions						20						33						15															46						48
Other — Insurance settlement received (12)						—						—						—															(24)						—
Tax effect of non-GAAP adjustments						(5)						(8)						(4)															(5)						(12)
Total non-GAAP adjustments, net of tax						15						25						11															17						36
Adjusted average common equity (3) (24)						$	9,888					$	9,024					$	9,817														$	9,722					$	8,747

Please refer to the footnotes at the end of this press release for additional information.

22

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RAYMOND JAMES FINANCIAL, INC.			Non-GAAP Financial Measures
Fiscal Third Quarter of 2023			(Unaudited)

Reconciliation of non-GAAP financial measures to GAAP financial measures
(Continued from previous page)
						Three months ended																					Nine months ended
$ in millions						June 30, 2023						June 30, 2022						March 31, 2023									June 30, 2023						June 30, 2022
Average common equity (24)						$	9,873					$	8,999					$	9,806								$	9,705					$	8,711
Less:
Average goodwill and identifiable intangible assets, net						1,930						1,460						1,936									1,932						1,169
Average deferred tax liabilities related to goodwill and identifiable intangible assets, net						(128)						(108)						(129)									(128)						(86)
Average tangible common equity (3) (24)						$	8,071					$	7,647					$	7,999								$	7,901					$	7,628
Impact of non-GAAP adjustments on average tangible common equity:
Compensation, commissions and benefits:
Acquisition-related retention (9)						9						8						9									27						19
Other acquisition-related compensation						4						1						—									2						1
Total “Compensation, commissions and benefits” expense						13						9						9									29						20
Professional fees						1						2						—									—						5
Bank loan provision for credit losses — Initial provision for credit losses on acquired loans (10)						—						13						—									—						7
Other:
Amortization of identifiable intangible assets (23)						6						4						6									17						11
Initial provision for credit losses on acquired lending commitments (10)						—						3						—									—						1
All other acquisition-related expenses						—						2						—									—						4
Total “Other” expense						6						9						6									17						16
Total expenses related to acquisitions						20						33						15									46						48
Other — Insurance settlement received (12)						—						—						—									(24)						—
Tax effect of non-GAAP adjustments						(5)						(8)						(4)									(5)						(12)
Total non-GAAP adjustments, net of tax						15						25						11									17						36
Adjusted average tangible common equity (3) (24)						$	8,086					$	7,672					$	8,010								$	7,918					$	7,664
Return on common equity (6)						14.9		%				13.3		%				17.3		%							17.9		%				16.3		%
Adjusted return on common equity (3) (6)						16.1		%				15.4		%				18.2		%							18.5		%				17.6		%
Return on tangible common equity (3) (6)						18.3		%				15.6		%				21.3		%							22.0		%				18.7		%
Adjusted return on tangible common equity (3) (6)						19.7		%				18.1		%				22.3		%							22.7		%				20.1		%

Please refer to the footnotes at the end of this press release for additional information.

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RAYMOND JAMES FINANCIAL, INC.                             

Fiscal Third Quarter of 2023                                 Footnotes

(1)						Domestic Private Client Group net new assets represents domestic Private Client Group client inflows, including dividends and interest, less domestic Private Client Group client outflows, including commissions, advisory fees and other fees. The Domestic Private Client Group net new asset growth — annualized percentage is based on the beginning Domestic Private Client Group assets under administration balance for the indicated period.
(2)						These metrics include the impact of the departure of 60 financial advisors and approximately $4.6 billion of assets under administration, representing the portion of advisors previously associated through a single relationship in the firm’s independent contractors division whose affiliation with the firm ended in the fiscal third quarter of 2023.
(3)						These are non-GAAP financial measures. See the schedules on the previous pages for a reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures and for more information on these measures.
(4)						Estimated.
(5)						Earnings per common share is computed by dividing net income available to common shareholders (less allocation of earnings and dividends to participating securities) by weighted-average common shares outstanding (basic or diluted as applicable) for each respective period or, in the case of adjusted earnings per common share, computed by dividing adjusted net income available to common shareholders (less allocation of earnings and dividends to participating securities) by weighted-average common shares outstanding (basic or diluted as applicable) for each respective period. The allocations of earnings and dividends to participating securities were $1 million for each of the three months ended June 30, 2023 and June 30, 2022, $2 million for the three months ended March 31, 2023, $4 million for the nine months ended June 30, 2023, and $2 million for the nine months ended June 30, 2022.
(6)						Return on common equity is computed by dividing annualized net income available to common shareholders by average common equity for each respective period or, in the case of return on tangible common equity, computed by dividing annualized net income available to common shareholders by average tangible common equity for each respective period. Adjusted return on common equity is computed by dividing annualized adjusted net income available to common shareholders by adjusted average common equity for each respective period, or in the case of adjusted return on tangible common equity, computed by dividing annualized adjusted net income available to common shareholders by adjusted average tangible common equity for each respective period. Tangible common equity is defined as total common equity attributable to Raymond James Financial, Inc. less goodwill and intangible assets, net of related deferred taxes.
(7)						Pre-tax margin is computed by dividing pre-tax income by net revenues for each respective period or, in the case of adjusted pre-tax margin, computed by dividing adjusted pre-tax income by net revenues for each respective period.
(8)						Total compensation ratio is computed by dividing compensation, commissions and benefits expense by net revenues for each respective period. Adjusted total compensation ratio is computed by dividing adjusted compensation, commissions and benefits expense by net revenues for each respective period.
(9)						Includes acquisition-related compensation expenses primarily arising from equity and cash-based retention awards issued in conjunction with acquisitions in prior years. Such retention awards are generally contingent upon the post-closing continuation of service of certain associates who joined the firm as part of such acquisitions and are expensed over the requisite service period.
(10)						Our results for the three and nine months ended June 30, 2022 included an initial provision for credit losses on loans and lending commitments acquired as part of our TriState Capital acquisition of $26 million (included in “Bank loan provision for credit losses”) and $5 million (included in “Other” expense), respectively. These provisions were required under U.S. generally accepted accounting principles to be recorded in earnings in the reporting period following the acquisition date.
(11)						The three and nine months ended June 30, 2023 and three months ended March 31, 2023 included the unfavorable impact of elevated provisions for legal and regulatory matters, which amounted to approximately $65 million, $100 million, and $25 million, respectively. Provisions for legal and regulatory matters did not have a significant impact on our results for the three and nine months ended June 30, 2022.
(12)						The nine months ended June 30, 2023 included the favorable impact of a $32 million insurance settlement received during the period related to a previously settled legal matter. This item has been reflected as an offset to Other expenses within our Other segment. In the computation of our non-GAAP financial measures, we have reversed the favorable impact of this item on adjusted pre-tax income and adjusted net income available to common shareholders. See the schedules on the previous pages for a reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures and for more information on these measures.
(13)						Book value per share is computed by dividing total common equity attributable to Raymond James Financial, Inc. by the number of common shares outstanding at the end of each respective period or, in the case of tangible book value per share, computed by dividing tangible common equity by the number of common shares outstanding at the end of each respective period.
(14)						We earn fees from RJBDP, a multi-bank sweep program in which clients’ cash deposits in their brokerage accounts are swept into interest-bearing deposit accounts at Raymond James Bank and TriState Capital Bank, which are included in our Bank segment, as well as various third-party banks. RJBDP balances swept to our Bank segment are reflected in Bank deposits on our Consolidated Statement of Financial Condition and within money market and other savings accounts in our net interest disclosures in this release. Fees earned by the Private Client Group segment on deposits held by our Bank segment are eliminated in consolidation.
(15)						In March 2023, we launched our Enhanced Savings Program, in which Private Client Group clients may deposit cash in a high-yield Raymond James Bank account. These balances are reflected in Bank deposits on our Consolidated Statement of Financial Condition and within interest-bearing demand deposits in our net interest disclosures in this release.
(16)						Average yield on RJBDP - third-party banks is computed by dividing annualized RJBDP fees - third-party banks, which are net of the interest expense paid to clients by the third-party banks, by the average daily RJBDP balances at third-party banks.
(17)						Loans are presented net of unamortized discounts, unearned income, and deferred loan fees and costs.

24

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RAYMOND JAMES FINANCIAL, INC.                             

Fiscal Third Quarter of 2023                                 Footnotes

(18)						Securities-based loans included loans collateralized by the borrower’s marketable securities at advance rates consistent with industry standards and, to a lesser extent, the cash surrender value of life insurance policies.
(19)						The average yield is presented on a taxable-equivalent basis for each respective period.
(20)						The average balance, interest expense, and average rate for “Total bank deposits” included amounts associated with affiliate deposits. Such amounts are eliminated in consolidation and are offset in “All other interest-bearing liabilities” under “All other segments”.
(21)						The Other segment includes the results of our private equity investments, interest income on certain corporate cash balances, certain acquisition-related expenses, and certain corporate overhead costs of RJF, including the interest costs on certain of our public debt, as well as certain provisions for legal and regulatory matters.
(22)						Corporate loans included commercial and industrial loans, commercial real estate loans, and real estate investment trust loans.
(23)						Amortization of identifiable intangible assets, which was included in “Other” expense, includes amortization of identifiable intangible assets arising from our acquisitions.
(24)						Average common equity for the quarter-to-date period is computed by adding the total common equity attributable to Raymond James Financial, Inc. as of the date indicated to the prior quarter-end total, and dividing by two, or in the case of average tangible common equity, computed by adding tangible common equity as of the date indicated to the prior quarter-end total, and dividing by two. For the year-to-date period, average common equity is computed by adding the total common equity attributable to Raymond James Financial, Inc. as of each quarter-end date during the indicated period to the beginning of year total, and dividing by four, or in the case of average tangible common equity, computed by adding tangible common equity as of each quarter-end date during the indicated period to the beginning of year total, and dividing by four. Adjusted average common equity is computed by adjusting for the impact on average common equity of the non-GAAP adjustments, as applicable for each respective period. Adjusted average tangible common equity is computed by adjusting for the impact on average tangible common equity of the non-GAAP adjustments, as applicable for each respective period.

25