Document


	Three months ended										% change from
in millions, except per share amounts	December 31, 2019		March 31, 2020		June 30, 2020		September 30, 2020		December 31, 2020		December 31, 2019		September 30, 2020
Revenues:
Asset management and related administrative fees	$	955	$	1,006	$	867	$	1,006	$	1,067	12	%	6	%
Brokerage revenues:
Securities commissions	363		410		343		352		381		5	%	8	%
Principal transactions	97		105		143		143		147		52	%	3	%
Total brokerage revenues	460		515		486		495		528		15	%	7	%
Account and service fees	178		172		134		140		145		(19)	%	4	%
Investment banking	141		148		139		222		261		85	%	18	%
Interest income	297		285		217		201		203		(32)	%	1	%
Other (1)	29		(15)		33		57		56		93	%	(2)	%
Total revenues	2,060		2,111		1,876		2,121		2,260		10	%	7	%
Interest expense	(51)		(43)		(42)		(42)		(38)		(25)	%	(10)	%
Net revenues	2,009		2,068		1,834		2,079		2,222		11	%	7	%
Non-interest expenses:
Compensation, commissions and benefits	1,351		1,422		1,277		1,415		1,500		11	%	6	%
Non-compensation expenses:
Communications and information processing	94		99		100		100		99		5	%	(1)	%
Occupancy and equipment	57		56		55		57		57		—		—
Business development	44		41		21		28		23		(48)	%	(18)	%
Investment sub-advisory fees	26		26		23		26		28		8	%	8	%
Professional fees	21		23		24		23		30		43	%	30	%
Bank loan provision/(benefit) for credit losses (2)	(2)		109		81		45		14		NM		(69)	%
Acquisition and disposition-related expenses (3)	—		—		—		7		2		NM		(71)	%
Reduction in workforce expenses (4)	—		—		—		46		—		—		(100)	%
Other (1)	59		53		55		76		70		19	%	(8)	%
Total non-compensation expenses	299		407		359		408		323		8	%	(21)	%
Total non-interest expenses	1,650		1,829		1,636		1,823		1,823		10	%	—
Pre-tax income	359		239		198		256		399		11	%	56	%
Provision for income taxes	91		70		26		47		87		(4)	%	85	%
Net income	$	268	$	169	$	172	$	209	$	312	16	%	49	%

Earnings per common share – basic (5)	$	1.93	$	1.22	$	1.25	$	1.53	$	2.27	18	%	48	%
Earnings per common share – diluted (5)	$	1.89	$	1.20	$	1.23	$	1.50	$	2.23	18	%	49	%
Weighted-average common shares outstanding – basic	138.3		138.4		137.1		136.9		136.8		(1)	%	—
Weighted-average common and common equivalent shares outstanding – diluted	141.5		141.1		139.4		139.6		139.7		(1)	%	—


	As of																% change from
$ in millions, except per share amounts	December 31, 2019			March 31, 2020			June 30, 2020			September 30, 2020			December 31, 2020				December 31, 2019		September 30, 2020
Total assets	$	40,154		$	49,809		$	44,682		$	47,482		$	53,657			34	%	13	%
Total equity attributable to Raymond James Financial, Inc.	$	6,842		$	6,798		$	6,965		$	7,114		$	7,363			8	%	4	%
Book value per share (6)	$	49.26		$	49.69		$	50.84		$	52.08		$	53.59			9	%	3	%
Tangible book value per share (6) (7)	$	45.10		$	45.50		$	46.69		$	47.94		$	47.93			6	%	—

Capital ratios:
Tier 1 capital	24.8		%	24.1		%	24.8		%	24.2		%	23.4		%	(8)
Total capital	25.7		%	25.3		%	26.0		%	25.4		%	24.6		%	(8)
Tier 1 leverage	15.8		%	14.2		%	14.5		%	14.2		%	12.9		%	(8)


	Three months ended												% change from
$ in millions	December 31, 2019		March 31, 2020		June 30, 2020		September 30, 2020			December 31, 2020			December 31, 2019		September 30, 2020
Adjusted pre-tax income (7)	NA		NA		NA		$	309		$	401		12	%	30	%
Adjusted net income (7)	NA		NA		NA		$	249		$	314		17	%	26	%
Adjusted earnings per common share - basic (5) (7)	NA		NA		NA		$	1.82		$	2.29		19	%	26	%
Adjusted earnings per common share - diluted (5) (7)	NA		NA		NA		$	1.78		$	2.24		19	%	26	%
Return on equity (9)	16.0	%	9.9	%	10.0	%	11.9		%	17.2		%
Adjusted return on equity (7) (9)	NA		NA		NA		14.1		%	17.3		%
Return on tangible common equity (7) (9)	17.5	%	10.8	%	10.9	%	12.9		%	19.0		%
Adjusted return on tangible common equity (7) (9)	NA		NA		NA		15.3		%	19.1		%
Pre-tax margin (10)	17.9	%	11.6	%	10.8	%	12.3		%	18.0		%
Adjusted pre-tax margin (7) (10)	NA		NA		NA		14.9		%	18.0		%
Total compensation ratio (11)	67.2	%	68.8	%	69.6	%	68.1		%	67.5		%
Effective tax rate	25.3	%	29.3	%	13.1	%	18.4		%	21.8		%


	As of										% change from
	December 31, 2019		March 31, 2020		June 30, 2020		September 30, 2020		December 31, 2020		December 31, 2019		September 30, 2020
Client asset metrics ($ in billions):
Client assets under administration	$	896.0	$	773.9	$	876.9	$	930.1	$	1,024.8	14	%	10	%
Private Client Group assets under administration	$	855.2	$	734.0	$	833.1	$	883.3	$	974.2	14	%	10	%
Private Client Group assets in fee-based accounts	$	444.2	$	383.5	$	443.0	$	475.3	$	532.7	20	%	12	%
Financial assets under management	$	151.7	$	128.2	$	145.4	$	153.1	$	169.6	12	%	11	%

Clients' domestic cash sweep balances ($ in millions):
Raymond James Bank Deposit Program (“RJBDP”): (12)
Raymond James Bank	$	21,891	$	28,711	$	24,101	$	25,599	$	26,697	22	%	4	%
Third-party banks	15,061		20,379		24,661		25,998		26,142		74	%	1	%
Subtotal RJBDP	36,952		49,090		48,762		51,597		52,839		43	%	2	%

Client Interest Program	2,528		3,782		3,157		3,999		8,769		247	%	119	%
Total clients’ domestic cash sweep balances	$	39,480	$	52,872	$	51,919	$	55,596	$	61,608	56	%	11	%


	Three months ended										% change from
$ in millions	December 31, 2019		March 31, 2020		June 30, 2020		September 30, 2020		December 31, 2020		December 31, 2019		September 30, 2020
Revenues:
Asset management and related administrative fees	$	782	$	833	$	715	$	832	$	885	13	%	6	%
Brokerage revenues:
Mutual and other fund products	144		163		131		129		148		3	%	15	%
Insurance and annuity products	101		99		88		109		98		(3)	%	(10)	%
Equities, ETFs, and fixed income products	102		122		100		95		107		5	%	13	%
Total brokerage revenues	347		384		319		333		353		2	%	6	%
Account and service fees:
Mutual fund and annuity service fees	90		88		82		88		94		4	%	7	%
RJBDP fees: (12)
Third-party banks	58		51		20		21		21		(64)	%	—
Raymond James Bank	47		48		43		42		43		(9)	%	2	%
Client account and other fees	29		35		32		33		32		10	%	(3)	%
Total account and service fees	224		222		177		184		190		(15)	%	3	%
Investment banking	11		11		7		12		6		(45)	%	(50)	%
Interest income	49		45		31		30		30		(39)	%	—
All other	9		7		4		7		5		(44)	%	(29)	%
Total revenues	1,422		1,502		1,253		1,398		1,469		3	%	5	%
Interest expense	(8)		(7)		(4)		(4)		(2)		(75)	%	(50)	%
Net revenues	1,414		1,495		1,249		1,394		1,467		4	%	5	%
Non-interest expenses:
Financial advisor compensation and benefits	857		915		783		873		931		9	%	7	%
Administrative compensation and benefits	247		245		235		244		249		1	%	2	%
Total compensation, commissions and benefits	1,104		1,160		1,018		1,117		1,180		7	%	6	%
Non-compensation expenses	157		165		140		152		147		(6)	%	(3)	%
Total non-interest expenses	1,261		1,325		1,158		1,269		1,327		5	%	5	%
Pre-tax income	$	153	$	170	$	91	$	125	$	140	(8)	%	12	%


	Three months ended										% change from
$ in millions	December 31, 2019		March 31, 2020		June 30, 2020		September 30, 2020		December 31, 2020		December 31, 2019		September 30, 2020
Revenues:
Brokerage revenues:
Fixed income	$	81	$	90	$	125	$	125	$	131	62	%	5	%
Equity	34		40		41		35		42		24	%	20	%
Total brokerage revenues	115		130		166		160		173		50	%	8	%
Investment banking:
Merger & acquisition and advisory	60		72		60		98		149		148	%	52	%
Equity underwriting	39		43		35		68		60		54	%	(12)	%
Debt underwriting	31		22		37		43		46		48	%	7	%
Total investment banking	130		137		132		209		255		96	%	22	%
Interest income	8		10		4		3		3		(63)	%	—
Tax credit fund revenues	18		12		20		33		16		(11)	%	(52)	%
All other	3		7		3		7		7		133	%	—
Total revenues	274		296		325		412		454		66	%	10	%
Interest expense	(6)		(6)		(2)		(2)		(2)		(67)	%	—
Net revenues	268		290		323		410		452		69	%	10	%
Non-interest expenses:
Compensation, commissions and benefits	166		184		195		229		252		52	%	10	%
Non-compensation expenses (3)	73		78		66		75		71		(3)	%	(5)	%
Total non-interest expenses	239		262		261		304		323		35	%	6	%
Pre-tax income	$	29	$	28	$	62	$	106	$	129	345	%	22	%


	Three months ended										% change from
$ in millions	December 31, 2019		March 31, 2020		June 30, 2020		September 30, 2020		December 31, 2020		December 31, 2019		September 30, 2020
Revenues:
Asset management and related administrative fees:
Managed programs	$	125	$	124	$	109	$	123	$	129	3	%	5	%
Administration and other	51		53		48		55		59		16	%	7	%
Total asset management and related administrative fees	176		177		157		178		188		7	%	6	%
Account and service fees	5		4		3		4		4		(20)	%	—
All other	3		3		3		2		3		—		50	%
Net revenues	184		184		163		184		195		6	%	6	%
Non-interest expenses:
Compensation, commissions and benefits	45		45		44		43		45		—		5	%
Non-compensation expenses	66		66		59		63		67		2	%	6	%
Total non-interest expenses	111		111		103		106		112		1	%	6	%
Pre-tax income	$	73	$	73	$	60	$	78	$	83	14	%	6	%


	Three months ended										% change from
$ in millions	December 31, 2019		March 31, 2020		June 30, 2020		September 30, 2020		December 31, 2020		December 31, 2019		September 30, 2020
Revenues:
Interest income	$	231	$	223	$	181	$	165	$	168	(27)	%	2	%
Interest expense	(21)		(18)		(12)		(11)		(11)		(48)	%	—
Net interest income	210		205		169		154		157		(25)	%	2	%
All other	6		5		9		7		10		67	%	43	%
Net revenues	216		210		178		161		167		(23)	%	4	%
Non-interest expenses:
Compensation and benefits	12		13		13		13		12		—		(8)	%
Non-compensation expenses:
Bank loan provision/(benefit) for credit losses (2)	(2)		109		81		45		14		NM		(69)	%
RJBDP fees to Private Client Group (12)	47		48		43		42		43		(9)	%	2	%
All other	24		26		27		28		27		13	%	(4)	%
Total non-compensation expenses	69		183		151		115		84		22	%	(27)	%
Total non-interest expenses	81		196		164		128		96		19	%	(25)	%
Pre-tax income	$	135	$	14	$	14	$	33	$	71	(47)	%	115	%


	Three months ended										% change from
$ in millions	December 31, 2019		March 31, 2020		June 30, 2020		September 30, 2020		December 31, 2020		December 31, 2019		September 30, 2020
Revenues:
Interest income	$	12	$	12	$	3	$	3	$	3	(75)	%	—
Gains/(losses) on private equity investments (1)	(2)		(39)		1		12		24		NM		100	%
All other	2		—		2		—		1		(50)	%	NM
Total revenues	12		(27)		6		15		28		133	%	87	%
Interest expense	(20)		(17)		(26)		(25)		(24)		20	%	(4)	%
Net revenues	(8)		(44)		(20)		(10)		4		NM		NM
Non-interest expenses:
Compensation and all other (1)	23		2		9		30		26		13	%	(13)	%
Reduction in workforce expenses (4)	—		—		—		46		—		—		(100)	%
Acquisition-related expenses (3)	—		—		—		—		2		NM		NM
Total non-interest expenses	23		2		9		76		28		22	%	(63)	%
Pre-tax loss	$	(31)	$	(46)	$	(29)	$	(86)	$	(24)	23	%	72	%


	As of																% change from
$ in millions	December 31, 2019			March 31, 2020			June 30, 2020			September 30, 2020			December 31, 2020				December 31, 2019		September 30, 2020
Total assets	$	26,469		$	33,656		$	29,066		$	30,610		$	31,580			19	%	3	%
Total equity	$	2,300		$	2,263		$	2,279		$	2,315		$	2,364			3	%	2	%
Bank loans, net	$	21,296		$	21,788		$	21,223		$	21,195		$	21,957			3	%	4	%
Bank loan allowance for credit losses (2)	$	216		$	324		$	334		$	354		$	378			75	%	7	%
Bank loan allowance for credit losses as a % of loans held for investment (2)	1.01		%	1.47		%	1.56		%	1.65		%	1.71		%
Total nonperforming assets	$	41		$	27		$	23		$	32		$	28			(32)	%	(13)	%
Nonperforming assets as a % of total assets	0.16		%	0.08		%	0.08		%	0.10		%	0.09		%
Total criticized loans	$	349		$	387		$	733		$	933		$	899			158	%	(4)	%
Criticized loans as a % of loans held for investment	1.64		%	1.76		%	3.41		%	4.35		%	4.06		%

Capital ratios:
Tier 1 capital	13.3		%	12.7		%	12.8		%	13.0		%	13.1		%	(8)
Total capital	14.5		%	13.9		%	14.1		%	14.3		%	14.4		%	(8)
Tier 1 leverage	8.8		%	8.1		%	7.6		%	7.7		%	7.5		%	(8)

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 provides 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 for those periods which include non-GAAP adjustments.


	Three months ended
$ in millions	September 30, 2020			December 31, 2020
Net income	$	209		$	312
Non-GAAP adjustments:
Acquisition and disposition-related expenses (3)	7			2
Reduction in workforce expenses (4)	46			—

Pre-tax impact of non-GAAP adjustments	53			2
Tax effect of non-GAAP adjustments	(13)			—
Total non-GAAP adjustments, net of tax	40			2
Adjusted net income	$	249		$	314

Pre-tax income	$	256		$	399
Pre-tax impact of non-GAAP adjustments (as detailed above)	53			2
Adjusted pre-tax income	$	309		$	401

Pre-tax margin (10)	12.3		%	18.0		%
Non-GAAP adjustments:
Acquisition and disposition-related expenses (3)	0.4		%	—
Reduction in workforce expenses (4)	2.2		%	—

Total non-GAAP adjustments, net of tax	2.6		%	—
Adjusted pre-tax margin (10)	14.9		%	18.0		%


	Three months ended
Earnings per common share (5)	September 30, 2020		December 31, 2020





















Basic	$	1.53	$	2.27
Non-GAAP adjustments:
Acquisition and disposition-related expenses (3)	0.05		0.02
Reduction in workforce expenses (4)	0.34		—

Tax effect of non-GAAP adjustments	(0.10)		—
Total non-GAAP adjustments, net of tax	0.29		0.02
Adjusted basic	$	1.82	$	2.29

Diluted	$	1.50	$	2.23
Non-GAAP adjustments:
Acquisition and disposition-related expenses (3)	0.05		0.01
Reduction in workforce expenses (4)	0.33		—

Tax effect of non-GAAP adjustments	(0.10)		—
Total non-GAAP adjustments, net of tax	0.28		0.01
Adjusted diluted	$	1.78	$	2.24


Book value per share	As of
$ in millions, except per share amounts	December 31, 2019		March 31, 2020		June 30, 2020		September 30, 2020		December 31, 2020
Total equity attributable to Raymond James Financial, Inc.	$	6,842	$	6,798	$	6,965	$	7,114	$	7,363
Less non-GAAP adjustments:
Goodwill and identifiable intangible assets, net	609		603		602		600		834
Deferred tax liabilities, net	(31)		(30)		(33)		(34)		(56)
Tangible common equity attributable to Raymond James Financial, Inc.	$	6,264	$	6,225	$	6,396	$	6,548	$	6,585
Common shares outstanding	138.9		136.8		137.0		136.6		137.4
Book value per share (6)	$	49.26	$	49.69	$	50.84	$	52.08	$	53.59
Tangible book value per share (6)	$	45.10	$	45.50	$	46.69	$	47.94	$	47.93


Return on equity	Three months ended
$ in millions	December 31, 2019			March 31, 2020			June 30, 2020			September 30, 2020			December 31, 2020

Average equity (15)	$	6,712		$	6,820		$	6,882		$	7,040		$	7,239
Impact on average equity of non-GAAP adjustments:
Acquisition and disposition-related expenses (3)	NA			NA			NA			4			1
Reduction in workforce expenses (4)	NA			NA			NA			23			—

Tax effect of non-GAAP adjustments	NA			NA			NA			(7)			—
Adjusted average equity (15)	NA			NA			NA			$	7,060		$	7,240

Average equity (15)	$	6,712		$	6,820		$	6,882		$	7,040		$	7,239
Less:
Average goodwill and identifiable intangible assets, net	610			606			603			601			717
Average deferred tax liabilities, net	(30)			(31)			(32)			(33)			(45)

Average tangible common equity (15)	$	6,132		$	6,245		$	6,311		$	6,472		$	6,567
Impact on average equity of non-GAAP adjustments:
Acquisition and disposition-related expenses (3)	NA			NA			NA			4			1
Reduction in workforce expenses (4)	NA			NA			NA			23			—

Tax effect of non-GAAP adjustments	NA			NA			NA			(7)			—
Adjusted average tangible common equity (15)	NA			NA			NA			$	6,492		$	6,568

Return on equity (9)	16.0		%	9.9		%	10.0		%	11.9		%	17.2		%
Adjusted return on equity (9)	NA			NA			NA			14.1		%	17.3		%
Return on tangible common equity (9)	17.5		%	10.8		%	10.9		%	12.9		%	19.0		%
Adjusted return on tangible common equity (9)	NA			NA			NA			15.3		%	19.1		%

1.Other revenues included approximately $40 million of private equity valuation losses, $12 million of private equity valuation gains, and $24 million of private equity valuation gains for the three months ended March 31, 2020, three months ended September 30, 2020 and three months ended December 31, 2020, respectively, which were included in our Other segment. Of these amounts, $23 million of the losses for the three months ended March 31, 2020, $3 million of the gains for the three months ended September 30, 2020, and $10 million of the gains for the three months ended December 31, 2020 were attributable to noncontrolling interests and were offset in Other expenses.

2.The allowance for credit losses as of December 31, 2020 was determined under the current expected credit loss (“CECL”) model as a result of our October 1, 2020 adoption of new accounting guidance related to the measurement of credit losses on financial instruments. The impact of adoption on October 1, 2020 resulted in an increase in our allowance for credit losses, including reserves for unfunded lending commitments, of approximately $45 million (primarily $25 million related to loans to financial advisors in the Private Client Group and approximately $10 million related to Bank loans outstanding) and a corresponding reduction in retained earnings of approximately $35 million, net of tax. The Bank loan provision for credit losses of $14 million for the fiscal first quarter of 2021 was determined under the CECL model and represented the provision for credit losses post the CECL adoption date through December 31, 2020.

3.The three months ended September 30, 2020 included a $7 million loss in our Capital Markets segment related to the sale of our interests in certain entities that operated predominantly in France, which closed during our fiscal first quarter of 2021. The three months ended December 31, 2020 included expenses in our Other segment associated with our acquisition of NWPS Holdings, Inc. and its wholly-owned subsidiaries, which was announced and completed in December 2020, as well as our announced acquisition of Financo.

5.Earnings per common share is computed by dividing net income (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 (less allocation of earnings and dividends to participating securities) by weighted-average common shares outstanding (basic or diluted as applicable) for each respective period.

6.Book value per share is computed by dividing total 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. Tangible common equity is defined as total equity attributable to Raymond James Financial, Inc. less goodwill and intangible assets, net of related deferred taxes.

7.These are non-GAAP financial measures. See the schedules on the previous pages for a reconciliation of our non-GAAP financial measures to the most directly comparable GAAP measures and for more information on these measures. There were no non-GAAP adjustments to earnings for the three months ended December 31, 2019, March 31, 2020, and June 30, 2020; therefore, percent changes for earnings-related non-GAAP financial measures are calculated based on non-GAAP results for the three months ended December 31, 2020 as compared to GAAP results for the three months ended December 31, 2019.

9.Return on equity is computed by dividing annualized net income by average equity for each respective period or, in the case of return on tangible common equity, computed by dividing annualized net income by average tangible common equity for each respective period. Adjusted return on equity is computed by dividing annualized adjusted net income by adjusted average equity for each respective period, or in the case of adjusted return on tangible common equity, computed by dividing annualized adjusted net income by adjusted average tangible common equity for each respective period.

15.Average equity is computed by adding the total 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. Adjusted average equity is computed by adjusting for the impact on average 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.


	As of					% change from
	December 31, 2019	March 31, 2020	June 30, 2020	September 30, 2020	December 31, 2020	December 31, 2019		September 30, 2020
Private Client Group financial advisors:
Employees	3,331	3,376	3,379	3,404	3,387	2	%	—
Independent contractors	4,729	4,772	4,776	4,835	4,846	2	%	—
Total advisors	8,060	8,148	8,155	8,239	8,233	2	%	—