EX-99.1 2 rjf20220930q422earnings.htm EX-99.1 PRESS RELEASE DATED OCTOBER 26, 2022

October 26, 2022						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 FISCAL FOURTH QUARTER AND

FISCAL 2022 RESULTS

•Domestic Private Client Group net new asset(1) growth of 9.0% for the fiscal year and 8.3% annualized for the fiscal fourth quarter

•Record quarterly net revenues of $2.83 billion, up 5% over the prior year’s fiscal fourth quarter and 4% over the preceding quarter

•Quarterly net income available to common shareholders of $437 million, or $1.98 per diluted share, and quarterly adjusted net income available to common shareholders of $459 million(2), or $2.08 per diluted share(2)

•Record annual net revenues of $11.0 billion, record annual net income available to common shareholders of $1.51 billion, or $6.98 per diluted share, and record annual adjusted net income available to common shareholders of $1.62 billion(2), or $7.49 per diluted share(2)

•Client assets under administration of $1.09 trillion and financial assets under management of $173.8 billion

•Record net loans in the Bank segment of $43.2 billion, up 73% over September 2021 and 3% over June 2022

•Net interest income and Raymond James Bank Deposit Program (“RJBDP”) fees from third-party banks of $606 million during the quarter, up 206% over the prior year’s fiscal fourth quarter and 64% over the preceding quarter

•Annualized return on common equity for the quarter of 18.7% and annualized adjusted return on tangible common equity for the quarter of 24.1%(2)

ST. PETERSBURG, Fla. – Raymond James Financial, Inc. (NYSE: RJF) today reported net revenues of $2.83 billion and net income available to common shareholders of $437 million, or $1.98 per diluted share, for the fiscal fourth quarter ended September 30, 2022. Excluding $30 million of expenses related to acquisitions, quarterly adjusted net income available to common shareholders was $459 million(2), or $2.08 per diluted share(2).

Quarterly net revenues grew 5% over the prior year’s fiscal fourth quarter and 4% over the preceding quarter, largely driven by the benefit of higher short-term interest rates on net interest income and RJBDP fees from third-party banks, which more than offset declines in asset management and related administrative fees and total brokerage revenues largely attributable to the decline in equity markets.

Quarterly net income available to common shareholders increased 2% compared to the prior year’s fiscal fourth quarter reflecting the aforementioned revenue growth which was partially offset by higher non-compensation expenses and a higher effective tax rate. The fiscal fourth quarter included a full quarter of results for TriState Capital(3) and SumRidge Partners(4) which added approximately $25 million of incremental non-compensation expenses sequentially, excluding bank loan provision for credit losses. The effective tax rate for the quarter increased to 28.7%, primarily attributable to nondeductible losses on the corporate owned life insurance portfolio.

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

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Compared to the prior fiscal year, record net revenues of $11.0 billion increased 13%, record pre-tax income increased 13%, record earnings per diluted share of $6.98 increased 5%, and adjusted earnings per diluted share of $7.49(2) increased 3%. Return on common equity for the fiscal year was 17.0% and adjusted return on tangible common equity was 21.1%(2).

“Notwithstanding the challenging and volatile market environment during the fiscal year, we generated record results with annual net revenues and pre-tax income growth of 13%, which was driven by strong organic growth, particularly in the Private Client Group segment, the benefit of higher short-term interest rates and, most importantly, our advisors’ and associates’ unwavering focus on always putting their clients first,” said Chair and CEO Paul Reilly. “We also made significant progress deploying capital over the past year, successfully completing our strategic acquisitions of Charles Stanley, TriState Capital and SumRidge Partners. We are well positioned entering fiscal 2023 with strong capital ratios and a flexible balance sheet, which should support our results in any market environment.”

Segment Results

Private Client Group

•Record quarterly net revenues of $1.99 billion, up 11% over the prior year’s fiscal fourth quarter and 2% over the preceding quarter

•Record quarterly pre-tax income of $371 million, up 67% over the prior year’s fiscal fourth quarter and 48% over the preceding quarter

•Record annual net revenues of $7.71 billion and record annual pre-tax income of $1.03 billion, up 17% and 38%, respectively, over fiscal 2021

•Private Client Group assets under administration of $1.04 trillion, down 7% compared to September 2021 and 3% compared to June 2022

•Private Client Group assets in fee-based accounts of $586.0 billion, down 7% compared to September 2021 and 3% compared to June 2022

•Private Client Group financial advisors of 8,681(5) increased 199 over September 2021 and 65 over June 2022

•Clients’ domestic cash sweep balances of $67.1 billion, up 1% over September 2021 and down 12% compared to June 2022

Growth in quarterly net revenues and pre-tax income was driven primarily by the increases in RJBDP fees and net interest income which more than offset the market-driven declines in asset management and related administrative fees and brokerage revenues.

Total clients’ domestic cash sweep balances ended the quarter at $67.1 billion, up 1% over September 2021 and down 12% compared to June 2022. The sequential decline reflects expected cash sorting activity given the higher short-term interest rate environment, which has continued in October. These balances do not include any high-yield savings deposits or money market fund balances.

“Our client-first values and leading technology and product offerings resulted in strong retention and recruitment of financial advisors in fiscal 2022, which led to robust domestic Private Client Group net new assets of approximately $95 billion, or 9% of beginning of period assets,” said Reilly. “Entering fiscal 2023, financial advisor recruiting activity remains strong across our employee, independent contractor and independent RIA affiliation options.”

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 $399 million, down 28% compared to the prior year’s fiscal fourth quarter and up 4% over the preceding quarter

•Quarterly pre-tax income of $66 million, down 64% compared to the prior year’s fiscal fourth quarter and up 8% over the preceding quarter

•Quarterly investment banking revenues of $207 million, down 41% compared to the prior year’s fiscal fourth quarter and 5% compared to the preceding quarter

•Annual net revenues of $1.81 billion and annual pre-tax income of $415 million, down 4% and 22%, respectively, compared to a record fiscal 2021

Quarterly net revenues declined 28% compared to the prior-year quarter largely driven by lower investment banking revenues and fixed income brokerage revenues. Sequentially, quarterly net revenues grew 4% as increases in the affordable housing investments business and M&A revenues offset declines in brokerage and underwriting revenues.

“Following last year’s record results, the Capital Markets segment generated its second highest revenues and pre-tax income in fiscal 2022 bolstered by record M&A revenues,” said Reilly. “Looking ahead, heightened volatility and macroeconomic uncertainties will continue to impact capital markets activity. However, investments we have made in expanding our M&A platform and adding high-quality expertise and capabilities, including the recent acquisition of technology-driven fixed income market maker SumRidge Partners, should position us well over the long term.”

Asset Management

•Quarterly net revenues of $216 million, down 9% compared to the prior year’s fiscal fourth quarter and 5% compared to the preceding quarter

•Quarterly pre-tax income of $83 million, down 27% compared to the prior year’s fiscal fourth quarter and 11% compared to the preceding quarter

•Record annual net revenues of $914 million and annual pre-tax income of $386 million, up 5% and down 1%, respectively, compared to fiscal 2021

•Financial assets under management of $173.8 billion, down 9% compared to September 2021 and 5% compared to June 2022

The decline of quarterly net revenues and pre-tax income was largely attributable to lower financial assets under management, as net inflows into fee-based accounts in the Private Client Group were offset by fixed income and equity market declines.

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

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Bank

•Record quarterly net revenues of $428 million, up 143% over the prior year’s fiscal fourth quarter and 55% over the preceding quarter

•Quarterly pre-tax income of $123 million, up 52% over the prior year’s fiscal fourth quarter and 66% over the preceding quarter

•Bank segment net interest margin (“NIM”) of 2.91% for the quarter, up 99 basis points over the prior year’s fiscal fourth quarter and 50 basis points over the preceding quarter

•Record annual net revenues of $1.08 billion and annual pre-tax income of $382 million, up 61% and 4%, respectively, over fiscal 2021

•Record net loans of $43.2 billion, up 73% over September 2021 and 3% over June 2022

Quarterly net revenue and pre-tax income growth was primarily due to the inclusion of TriState Capital Bank for a full quarter, as well as NIM expansion. The Bank segment’s NIM increased 50 basis points during the quarter to 2.91%, reflecting higher short-term interest rates and the relatively high concentration of floating-rate assets. Net loans grew 3% over the preceding quarter primarily driven by higher residential mortgages and corporate loans. TriState Capital Bank also generated sequential growth of securities-based loans. The credit quality of the loan portfolio remained strong, with criticized loans as a percent of total loans held for investment ending the quarter at 1.14%, down from 3.27% at September 2021 and 1.63% at June 2022. Bank loan allowance for credit losses as a percent of total loans held for investment was 0.91%, and bank loan allowance for credit losses on corporate loans as a percent of corporate loans held for investment was 1.73%.

Other

The firm repurchased 600,000 shares of common stock for approximately $62 million at an average price of approximately $104 per share in the fiscal fourth quarter. Including additional share repurchases totaling $38 million in October, approximately $800 million remained available under the Board’s approved share repurchase authorization as of October 26, 2022. At the end of the quarter, the total capital ratio was 20.5%(6) and the tier 1 leverage ratio was 10.3%(6), both well above the regulatory requirements.

A conference call to discuss the results will take place tomorrow morning, Thursday, October 27, at 8:15 a.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: 800-694-6012 (conference code: 22021089). An audio replay of the call will be available at the same location until December 31, 2022.

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 $1.09 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” and “should,” as well as any other statement that necessarily depends on future events, are 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 Fourth Quarter of 2022			Selected Financial Highlights (Unaudited)

Summary results of operations

						Three months ended																		% change from
$ in millions, except per share amounts						September 30, 2022						September 30, 2021						June 30, 2022						September 30, 2021						June 30, 2022
Net revenues						$	2,831					$	2,695					$	2,718					5%						4%
Pre-tax income						$	616					$	560					$	415					10%						48%
Net income available to common shareholders						$	437					$	429					$	299					2%						46%
Earnings per common share: (7)
Basic						$	2.03					$	2.08					$	1.41					(2)%						44%
Diluted						$	1.98					$	2.02					$	1.38					(2)%						43%
Non-GAAP measures: (2)
Adjusted pre-tax income						$	646					$	587					$	480					10%						35%
Adjusted net income available to common shareholders						$	459					$	450					$	348					2%						32%
Adjusted earnings per common share – basic (7)						$	2.13					$	2.18					$	1.65					(2)%						29%
Adjusted earnings per common share – diluted (7)						$	2.08					$	2.12					$	1.61					(2)%						29%

						Twelve months ended
$ in millions, except per share amounts						September 30, 2022						September 30, 2021						% change
Net revenues						$	11,003					$	9,760					13%
Pre-tax income						$	2,022					$	1,791					13%
Net income available to common shareholders						$	1,505					$	1,403					7%
Earnings per common share: (7)
Basic						$	7.16					$	6.81					5%
Diluted						$	6.98					$	6.63					5%
Non-GAAP measures: (2)
Adjusted pre-tax income						$	2,169					$	1,971					10%
Adjusted net income available to common shareholders						$	1,615					$	1,540					5%
Adjusted earnings per common share – basic (7)						$	7.68					$	7.48					3%
Adjusted earnings per common share – diluted (7)						$	7.49					$	7.28					3%

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

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RAYMOND JAMES FINANCIAL, INC.             

Fiscal Fourth Quarter of 2022

Consolidated Statements of Income (Unaudited)
						Three months ended																		% change from
in millions, except per share amounts						September 30, 2022						September 30, 2021						June 30, 2022						September 30, 2021						June 30, 2022
Revenues:
Asset management and related administrative fees						$	1,290					$	1,366					$	1,427					(6)%						(10)%
Brokerage revenues:
Securities commissions						357						412						385						(13)%						(7)%
Principal transactions						124						129						128						(4)%						(3)%
Total brokerage revenues						481						541						513						(11)%						(6)%
Account and service fees						266						170						211						56%						26%
Investment banking						217						364						223						(40)%						(3)%
Interest income						667						215						374						210%						78%
Other (8)						80						74						30						8%						167%
Total revenues						3,001						2,730						2,778						10%						8%
Interest expense						(170)						(35)						(60)						386%						183%
Net revenues						2,831						2,695						2,718						5%						4%
Non-interest expenses:
Compensation, commissions and benefits (9) (10)						1,759						1,775						1,834						(1)%						(4)%
Non-compensation expenses:
Communications and information processing						138						114						129						21%						7%
Occupancy and equipment						66						60						65						10%						2%
Business development						59						36						58						64%						2%
Investment sub-advisory fees						36						37						38						(3)%						(5)%
Professional fees (9)						38						37						38						3%						—%
Bank loan provision/(benefit) for credit losses (11)						34						5						56						580%						(39)%
Other (8) (9) (11)						85						71						85						20%						—%
Total non-compensation expenses						456						360						469						27%						(3)%
Total non-interest expenses						2,215						2,135						2,303						4%						(4)%
Pre-tax income						616						560						415						10%						48%
Provision for income taxes						177						131						114						35%						55%
Net income						439						429						301						2%						46%
Preferred stock dividends						2						—						2						NM						—%
Net income available to common shareholders						$	437					$	429					$	299					2%						46%
Earnings per common share – basic (7)						$	2.03					$	2.08					$	1.41					(2)%						44%
Earnings per common share – diluted (7)						$	1.98					$	2.02					$	1.38					(2)%						43%
Weighted-average common shares outstanding – basic						215.0						205.5						210.7						5%						2%
Weighted-average common and common equivalent shares outstanding – diluted						220.6						211.7						215.7						4%						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 Fourth Quarter of 2022

Consolidated Statements of Income (Unaudited)
						Twelve months ended
in millions, except per share amounts						September 30, 2022						September 30, 2021						% change
Revenues:
Asset management and related administrative fees						$	5,563					$	4,868					14%
Brokerage revenues:
Securities commissions						1,589						1,651						(4)%
Principal transactions						527						561						(6)%
Total brokerage revenues						2,116						2,212						(4)%
Account and service fees						833						635						31%
Investment banking						1,100						1,143						(4)%
Interest income						1,508						823						83%
Other (8)						188						229						(18)%
Total revenues						11,308						9,910						14%
Interest expense						(305)						(150)						103%
Net revenues						11,003						9,760						13%
Non-interest expenses:
Compensation, commissions and benefits (9) (10)						7,329						6,584						11%
Non-compensation expenses:
Communications and information processing						506						429						18%
Occupancy and equipment						252						232						9%
Business development						186						111						68%
Investment sub-advisory fees						152						130						17%
Professional fees (9)						131						122						7%
Bank loan provision/(benefit) for credit losses (11)						100						(32)						NM
Losses on extinguishment of debt (12)						—						98						(100)%
Other (8) (9) (11)						325						295						10%
Total non-compensation expenses						1,652						1,385						19%
Total non-interest expenses						8,981						7,969						13%
Pre-tax income						2,022						1,791						13%
Provision for income taxes						513						388						32%
Net income						1,509						1,403						8%
Preferred stock dividends						4						—						NM
Net income available to common shareholders						$	1,505					$	1,403					7%
Earnings per common share – basic (7)						$	7.16					$	6.81					5%
Earnings per common share – diluted (7)						$	6.98					$	6.63					5%
Weighted-average common shares outstanding – basic						209.9						205.7						2%
Weighted-average common and common equivalent shares outstanding – diluted						215.3						211.2						2%

    

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

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RAYMOND JAMES FINANCIAL, INC.			Consolidated Selected Key Metrics
Fiscal Fourth Quarter of 2022			(Unaudited)

						As of																					% change from
$ in millions, except per share amounts						September 30, 2022						September 30, 2021						June 30, 2022									September 30, 2021						June 30, 2022
Total assets						$	80,951					$	61,891					$	86,111								31%						(6)%
Total common equity attributable to Raymond James Financial, Inc.						$	9,338					$	8,245					$	9,395								13%						(1)%
Book value per share (13)						$	43.41					$	40.08					$	43.60								8%						—%
Tangible book value per share (2) (13)						$	34.94					$	36.11					$	35.79								(3)%						(2)%
Capital ratios:
Tier 1 leverage						10.3		%	(6)			12.6		%				10.8		%
Tier 1 capital						19.2		%	(6)			25.0		%				20.2		%
Common equity tier 1						19.0		%	(6)			25.0		%				20.0		%
Total capital						20.5		%	(6)			26.2		%				21.5		%

						Three months ended																					Twelve months ended
						September 30, 2022						September 30, 2021						June 30, 2022									September 30, 2022						September 30, 2021
Return on common equity (14)						18.7		%				21.3		%				13.3		%							17.0		%				18.4		%
Adjusted return on common equity (2) (14)						19.6		%				22.3		%				15.4		%							18.2		%				20.0		%
Adjusted return on tangible common equity (2) (14)						24.1		%				24.8		%				18.1		%							21.1		%				22.2		%
Pre-tax margin (15)						21.8		%				20.8		%				15.3		%							18.4		%				18.4		%
Adjusted pre-tax margin (2) (15)						22.8		%				21.8		%				17.7		%							19.7		%				20.2		%
Total compensation ratio (16)						62.1		%				65.9		%				67.5		%							66.6		%				67.5		%
Adjusted total compensation ratio (2) (16)						61.5		%				65.3		%				66.8		%							66.1		%				67.0		%
Effective tax rate						28.7		%				23.4		%				27.5		%							25.4		%				21.7		%

Client asset metrics ($ in billions)						As of																					% change from
						September 30, 2022						September 30, 2021						June 30, 2022									September 30, 2021						June 30, 2022
Client assets under administration						$	1,093.1					$	1,178.7					$	1,125.3								(7)%						(3)%
Private Client Group assets under administration						$	1,039.0					$	1,115.4					$	1,068.8								(7)%						(3)%
Private Client Group assets in fee-based accounts						$	586.0					$	627.1					$	606.7								(7)%						(3)%
Financial assets under management						$	173.8					$	191.9					$	182.4								(9)%						(5)%

Clients’ domestic cash sweep balances ($ in millions)						As of																					% change from
						September 30, 2022						September 30, 2021						June 30, 2022									September 30, 2021						June 30, 2022
Raymond James Bank Deposit    Program (“RJBDP”): (17)
Bank segment (3) (17)						$	38,705					$	31,410					$	36,646								23%						6%
Third-party banks						21,964						24,496						25,478									(10)%						(14)%
Subtotal RJBDP						60,669						55,906						62,124									9%						(2)%
Client Interest Program						6,445						10,762						13,717									(40)%						(53)%
Total clients’ domestic cash sweep balances						$	67,114					$	66,668					$	75,841								1%						(12)%

						Three months ended																					Twelve months ended
						September 30, 2022						September 30, 2021						June 30, 2022									September 30, 2022						September 30, 2021
Average yield on RJBDP - third-party banks (18)						1.85		%				0.29		%				0.88		%							0.82		%				0.30		%

Private Client Group financial advisors						As of																					% change from
						September 30, 2022						September 30, 2021						June 30, 2022									September 30, 2021						June 30, 2022
Employees						3,638						3,461						3,615									5%						1%
Independent contractors (5)						5,043						5,021						5,001									—%						1%
Total advisors (5)						8,681						8,482						8,616									2%						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 Fourth Quarter of 2022			(Unaudited)

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

CONSOLIDATED NET INTEREST
						Three months ended
						September 30, 2022																					September 30, 2021																					June 30, 2022
$ 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						$	2,177					$	13					2.35		%							$	1,691					$	1					0.17		%							$	1,603					$	3					0.94		%
Available-for-sale securities						11,241						52						1.84		%							8,285						21						1.04		%							9,972						37						1.47		%
Loans held for sale and investment: (19)
Loans held for investment:
Securities-based loans (“SBL”) (20)						15,290						172						4.42		%							5,820						32						2.17		%							9,854						78						3.09		%
Commercial and industrial (“C&I”) loans						10,986						128						4.52		%							8,295						52						2.46		%							9,606						76						3.14		%
Commercial real estate (“CRE”) loans						6,368						82						5.00		%							2,817						18						2.54		%							4,338						36						3.30		%
Real estate investment trust (“REIT”) loans						1,519						17						4.57		%							1,223						7						2.47		%							1,379						11						3.20		%
Residential mortgage loans						7,119						51						2.88		%							5,305						37						2.70		%							6,334						44						2.77		%
Tax-exempt loans (21)						1,503						10						3.06		%							1,321						9						3.21		%							1,329						8						3.16		%
Loans held for sale						188						1						4.22		%							191						1						2.59		%							222						2						3.08		%
Total loans held for sale and investment						42,973						461						4.23		%							24,972						156						2.49		%							33,062						255						3.08		%
All other interest-earning assets						126						1						4.92		%							167						1						1.53		%							123						1						3.13		%
Interest-earning assets — Bank segment						$	56,517					$	527					3.69		%							$	35,115					$	179					2.03		%							$	44,760					$	296					2.64		%
All other segments
Cash and cash equivalents						$	3,339					$	19					2.24		%							$	3,910					$	2					0.20		%							$	3,945					$	7					0.63		%
Assets segregated for regulatory purposes and restricted cash						12,332						57						1.88		%							9,994						4						0.14		%							17,337						28						0.63		%
Trading assets — debt securities						1,117						14						4.97		%							401						3						3.20		%							377						4						4.87		%
Brokerage client receivables						2,517						34						5.24		%							2,452						21						3.34		%							2,555						24						3.87		%
All other interest-earning assets						1,989						16						2.91		%							1,650						6						1.47		%							2,117						15						2.90		%
Interest-earning assets — all other segments						$	21,294					$	140					2.61		%							$	18,407					$	36					0.78		%							$	26,331					$	78					1.17		%
Total interest-earning assets						$	77,811					$	667					3.40		%							$	53,522					$	215					1.59		%							$	71,091					$	374					2.11		%
						INTEREST-BEARING LIABILITIES
Bank Segment
Bank deposits:
Money market and savings accounts						$	44,392					$	68					0.61		%							$	30,258					$	1					0.01		%							$	37,214					$	11					0.12		%
Interest-bearing checking accounts						5,477						30						2.18		%							169						1						1.78		%							2,216						7						1.25		%
Certificates of deposit						1,061						5						1.51		%							885						4						1.90		%							842						3						1.58		%
Total bank deposits (22)						50,930						103						0.80		%							31,312						6						0.07		%							40,272						21						0.21		%
FHLB advances and all other interest-bearing liabilities						1,226						7						2.34		%							864						4						1.88		%							1,114						5						1.73		%
Interest-bearing liabilities — Bank segment						$	52,156					$	110					0.84		%							$	32,176					$	10					0.12		%							$	41,386					$	26					0.25		%
All other segments
Trading liabilities — debt securities						$	754					$	9					4.84		%							$	136					$	1					1.57		%							$	164					$	1					2.76		%
Brokerage client payables						11,901						20						0.65		%							11,427						—						0.03		%							16,892						3						0.08		%
Senior notes payable						2,038						24						4.44		%							2,037						23						4.44		%							2,037						23						4.44		%
All other interest-bearing liabilities (22)						159						7						4.49		%							218						1						0.59		%							363						7						2.73		%
Interest-bearing liabilities — all other segments						$	14,852					$	60					1.60		%							$	13,818					$	25					0.72		%							$	19,456					$	34					0.70		%
Total interest-bearing liabilities						$	67,008					$	170					1.01		%							$	45,994					$	35					0.30		%							$	60,842					$	60					0.40		%
Firmwide net interest income												$	497																				$	180																				$	314
Net interest margin (net yield on interest-earning assets)
Bank segment																		2.91		%																			1.92		%																			2.41		%
Firmwide																		2.53		%																			1.33		%																			1.77		%

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 Fourth Quarter of 2022			(Unaudited)

CONSOLIDATED NET INTEREST
						Twelve months ended
						September 30, 2022																					September 30, 2021
$ in millions						Average balance						Interest						Average rate									Average balance						Interest						Average rate
						INTEREST-EARNING ASSETS
Bank segment
Cash and cash equivalents						$	1,884					$	18					0.98		%							$	1,612					$	2					0.14		%
Available-for-sale securities						9,651						136						1.40		%							7,950						85						1.07		%
Loans held for sale and investment: (19)
Loans held for investment:
SBL (20)						9,561						324						3.34		%							4,989						112						2.22		%
C&I loans						9,493						313						3.25		%							7,828						201						2.54		%
CRE loans						4,205						158						3.70		%							2,703						70						2.56		%
REIT loans						1,339						44						3.28		%							1,273						32						2.48		%
Residential mortgage loans						6,170						170						2.76		%							5,110						140						2.72		%
Tax-exempt loans (21)						1,355						35						3.15		%							1,270						34						3.31		%
Loans held for sale						229						7						3.24		%							163						4						2.55		%
Total loans held for sale and investment						32,352						1,051						3.24		%							23,336						593						2.55		%
All other interest-earning assets						124						4						3.29		%							182						4						1.50		%
Interest-earning assets — Bank segment						$	44,011					$	1,209					2.74		%							$	33,080					$	684					2.07		%
All other segments
Cash and cash equivalents						$	4,114					$	30					0.73		%							$	3,949					$	10					0.25		%
Assets segregated for regulatory purposes and restricted cash						14,826						96						0.65		%							8,735						15						0.17		%
Trading assets — debt securities						621						27						4.38		%							475						13						2.67		%
Brokerage client receivables						2,529						100						3.94		%							2,280						77						3.37		%
All other interest-earning assets						1,944						46						2.33		%							1,594						24						1.54		%
Interest-earning assets — all other segments						$	24,034					$	299					1.24		%							$	17,033					$	139					0.82		%
Total interest-earning assets						$	68,045					$	1,508					2.22		%							$	50,113					$	823					1.64		%
						INTEREST-BEARING LIABILITIES
Bank Segment
Bank deposits:
Money market and savings accounts						$	36,693					$	81					0.22		%							$	28,389					$	3					0.01		%
Interest-bearing checking accounts						2,061						39						1.88		%							162						3						1.86		%
Certificates of deposit						870						15						1.68		%							904						17						1.90		%
Total bank deposits (22)						39,624						135						0.34		%							29,455						23						0.08		%
FHLB advances and all other interest-bearing liabilities						1,001						21						2.15		%							864						19						2.12		%
Interest-bearing liabilities — Bank segment						$	40,625					$	156					0.38		%							$	30,319					$	42					0.14		%
All other segments
Trading liabilities — debt securities						$	325					$	12					3.64		%							$	150					$	2					1.39		%
Brokerage client payables						15,530						24						0.15		%							10,180						3						0.03		%
Senior notes payable						2,037						93						4.44		%							2,078						96						4.58		%
All other interest-bearing liabilities (22)						257						20						2.76		%							241						7						1.14		%
Interest-bearing liabilities — all other segments						$	18,149					$	149					0.82		%							$	12,649					$	108					0.85		%
Total interest-bearing liabilities						$	58,774					$	305					0.52		%							$	42,968					$	150					0.34		%
Firmwide net interest income												$	1,203																				$	673
Net interest margin (net yield on interest-earning assets)
Bank segment																		2.39		%																			1.95		%
Firmwide																		1.77		%																			1.35		%

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 Fourth Quarter of 2022			(Unaudited)

						Three months ended																		% change from
$ in millions						September 30, 2022						September 30, 2021						June 30, 2022						September 30, 2021						June 30, 2022
Net revenues:
Private Client Group						$	1,991					$	1,801					$	1,958					11%						2%
Capital Markets (4)						399						554						383						(28)%						4%
Asset Management (3)						216						238						228						(9)%						(5)%
Bank (3)						428						176						276						143%						55%
Other (23)						4						(2)						(21)						NM						NM
Intersegment eliminations						(207)						(72)						(106)						(188)%						(95)%
Total net revenues						$	2,831					$	2,695					$	2,718					5%						4%
Pre-tax income/(loss):
Private Client Group						$	371					$	222					$	251					67%						48%
Capital Markets (4)						66						183						61						(64)%						8%
Asset Management (3)						83						114						93						(27)%						(11)%
Bank (3)						123						81						74						52%						66%
Other (23)						(27)						(40)						(64)						33%						58%
Pre-tax income						$	616					$	560					$	415					10%						48%

						Twelve months ended
$ in millions						September 30, 2022						September 30, 2021						% change
Net revenues:
Private Client Group						$	7,710					$	6,611					17%
Capital Markets (4)						1,809						1,885						(4)%
Asset Management (3)						914						867						5%
Bank (3)						1,084						672						61%
Other (23)						(50)						(8)						(525)%
Intersegment eliminations						(464)						(267)						(74)%
Total net revenues						$	11,003					$	9,760					13%
Pre-tax income/(loss):
Private Client Group						$	1,030					$	749					38%
Capital Markets (4)						415						532						(22)%
Asset Management (3)						386						389						(1)%
Bank (3)						382						367						4%
Other (23)						(191)						(246)						22%
Pre-tax income						$	2,022					$	1,791					13%

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 Fourth Quarter of 2022			(Unaudited)

Private Client Group
						Three months ended																		% change from
$ in millions						September 30, 2022						September 30, 2021						June 30, 2022						September 30, 2021						June 30, 2022
Revenues:
Asset management and related administrative fees						$	1,089					$	1,142					$	1,214					(5)%						(10)%
Brokerage revenues:
Mutual and other fund products						134						172						149						(22)%						(10)%
Insurance and annuity products						108						118						109						(8)%						(1)%
Equities, ETFs and fixed income products						107						100						115						7%						(7)%
Total brokerage revenues						349						390						373						(11)%						(6)%
Account and service fees:
Mutual fund and annuity service fees						103						110						102						(6)%						1%
RJBDP fees: (17)
Bank segment (17)						179						49						79						265%						127%
Third-party banks						109						18						56						506%						95%
Client account and other fees						59						44						59						34%						—%
Total account and service fees						450						221						296						104%						52%
Investment banking						10						14						6						(29)%						67%
Interest income						111						32						68						247%						63%
All other						8						5						11						60%						(27)%
Total revenues						2,017						1,804						1,968						12%						2%
Interest expense						(26)						(3)						(10)						767%						160%
Net revenues						1,991						1,801						1,958						11%						2%
Non-interest expenses:
Financial advisor compensation and benefits						1,091						1,151						1,187						(5)%						(8)%
Administrative compensation and benefits						321						255						306						26%						5%
Total compensation, commissions and benefits						1,412						1,406						1,493						—%						(5)%
Non-compensation expenses						208						173						214						20%						(3)%
Total non-interest expenses						1,620						1,579						1,707						3%						(5)%
Pre-tax income						$	371					$	222					$	251					67%						48%

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 Fourth Quarter of 2022			(Unaudited)

Private Client Group
						Twelve months ended
$ in millions						September 30, 2022						September 30, 2021						% change
Revenues:
Asset management and related administrative fees						$	4,710					$	4,056					16%
Brokerage revenues:
Mutual and other fund products						620						670						(7)%
Insurance and annuity products						438						438						—%
Equities, ETFs and fixed income products						458						438						5%
Total brokerage revenues						1,516						1,546						(2)%
Account and service fees:
Mutual fund and annuity service fees						428						408						5%
RJBDP fees: (17)
Bank segment (17)						357						183						95%
Third-party banks						202						76						166%
Client account and other fees						220						157						40%
Total account and service fees						1,207						824						46%
Investment banking						38						47						(19)%
Interest income						249						123						102%
All other						32						25						28%
Total revenues						7,752						6,621						17%
Interest expense						(42)						(10)						320%
Net revenues						7,710						6,611						17%
Non-interest expenses:
Financial advisor compensation and benefits						4,696						4,204						12%
Administrative compensation and benefits						1,199						1,015						18%
Total compensation, commissions and benefits						5,895						5,219						13%
Non-compensation expenses						785						643						22%
Total non-interest expenses						6,680						5,862						14%
Pre-tax income						$	1,030					$	749					38%

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 Fourth Quarter of 2022			(Unaudited)

Capital Markets (4)
						Three months ended																		% change from
$ in millions						September 30, 2022						September 30, 2021						June 30, 2022						September 30, 2021						June 30, 2022
Revenues:
Brokerage revenues:
Fixed income						$	96					$	118					$	107					(19)%						(10)%
Equity						30						33						32						(9)%						(6)%
Total brokerage revenues						126						151						139						(17)%						(9)%
Investment banking:
Merger & acquisition and advisory						152						215						147						(29)%						3%
Equity underwriting						25						89						36						(72)%						(31)%
Debt underwriting						30						46						34						(35)%						(12)%
Total investment banking						207						350						217						(41)%						(5)%
Interest income						20						4						6						400%						233%
Affordable housing investments business revenues						56						48						21						17%						167%
All other						9						4						3						125%						200%
Total revenues						418						557						386						(25)%						8%
Interest expense						(19)						(3)						(3)						533%						533%
Net revenues						399						554						383						(28)%						4%
Non-interest expenses:
Compensation, commissions and benefits						238						288						243						(17)%						(2)%
Non-compensation expenses						95						83						79						14%						20%
Total non-interest expenses						333						371						322						(10)%						3%
Pre-tax income						$	66					$	183					$	61					(64)%						8%

						Twelve months ended
$ in millions						September 30, 2022						September 30, 2021						% change
Revenues:
Brokerage revenues:
Fixed income						$	448					$	515					(13)%
Equity						142						145						(2)%
Total brokerage revenues						590						660						(11)%
Investment banking:
Merger & acquisition and advisory						709						639						11%
Equity underwriting						210						285						(26)%
Debt underwriting						143						172						(17)%
Total investment banking						1,062						1,096						(3)%
Interest income						36						16						125%
Affordable housing investments business revenues						127						105						21%
All other						21						18						17%
Total revenues						1,836						1,895						(3)%
Interest expense						(27)						(10)						170%
Net revenues						1,809						1,885						(4)%
Non-interest expenses:
Compensation, commissions and benefits						1,065						1,055						1%
Non-compensation expenses						329						298						10%
Total non-interest expenses						1,394						1,353						3%
Pre-tax income						$	415					$	532					(22)%

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 Fourth Quarter of 2022			(Unaudited)

Asset Management (3)
						Three months ended																		% change from
$ in millions						September 30, 2022						September 30, 2021						June 30, 2022						September 30, 2021						June 30, 2022
Revenues:
Asset management and related administrative fees:
Managed programs						$	140					$	156					$	145					(10)%						(3)%
Administration and other						69						74						75						(7)%						(8)%
Total asset management and related administrative fees						209						230						220						(9)%						(5)%
Account and service fees						5						5						5						—%						—%
All other						2						3						3						(33)%						(33)%
Net revenues						216						238						228						(9)%						(5)%
Non-interest expenses:
Compensation, commissions and benefits						52						44						49						18%						6%
Non-compensation expenses						81						80						86						1%						(6)%
Total non-interest expenses						133						124						135						7%						(1)%
Pre-tax income						$	83					$	114					$	93					(27)%						(11)%

						Twelve months ended
$ in millions						September 30, 2022						September 30, 2021						% change
Revenues:
Asset management and related administrative fees:
Managed programs						$	585					$	570					3%
Administration and other						297						267						11%
Total asset management and related administrative fees						882						837						5%
Account and service fees						22						18						22%
All other						10						12						(17)%
Net revenues						914						867						5%
Non-interest expenses:
Compensation, commissions and benefits						194						182						7%
Non-compensation expenses						334						296						13%
Total non-interest expenses						528						478						10%
Pre-tax income						$	386					$	389					(1)%

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 Fourth Quarter of 2022						(Unaudited)

Bank (3)
						Three months ended																		% change from
$ in millions						September 30, 2022						September 30, 2021						June 30, 2022						September 30, 2021						June 30, 2022
Revenues:
Interest income						$	527					$	179					$	296					194%						78%
Interest expense						(110)						(10)						(26)						1,000%						323%
Net interest income						417						169						270						147%						54%
All other						11						7						6						57%						83%
Net revenues						428						176						276						143%						55%
Non-interest expenses:
Compensation and benefits						36						13						21						177%						71%
Non-compensation expenses:
Bank loan provision/(benefit) for credit losses						34						5						56						580%						(39)%
RJBDP fees to Private Client Group (17)						179						49						79						265%						127%
All other						56						28						46						100%						22%
Total non-compensation expenses						269						82						181						228%						49%
Total non-interest expenses						305						95						202						221%						51%
Pre-tax income						$	123					$	81					$	74					52%						66%

						Twelve months ended
$ in millions						September 30, 2022						September 30, 2021						% change
Revenues:
Interest income						$	1,209					$	684					77%
Interest expense						(156)						(42)						271%
Net interest income						1,053						642						64%
All other						31						30						3%
Net revenues						1,084						672						61%
Non-interest expenses:
Compensation and benefits						84						51						65%
Non-compensation expenses:
Bank loan provision/(benefit) for credit losses						100						(32)						NM
RJBDP fees to Private Client Group (17)						357						183						95%
All other						161						103						56%
Total non-compensation expenses						618						254						143%
Total non-interest expenses						702						305						130%
Pre-tax income						$	382					$	367					4%

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 Fourth Quarter of 2022			(Unaudited)

Other (23)
						Three months ended																		% change from
$ in millions						September 30, 2022						September 30, 2021						June 30, 2022						September 30, 2021						June 30, 2022
Revenues:
Interest income						$	15					$	2					$	6					650%						150%
Net gains/(losses) on private equity investments (8)						9						18						(3)						(50)%						NM
All other						2						(1)						—						NM						NM
Total revenues						26						19						3						37%						767%
Interest expense						(22)						(21)						(24)						5%						(8)%
Net revenues						4						(2)						(21)						NM						NM
Non-interest expenses:
Compensation and all other (8)						31						38						43						(18)%						(28)%
Total non-interest expenses						31						38						43						(18)%						(28)%
Pre-tax loss						$	(27)					$	(40)					$	(64)					33%						58%

						Twelve months ended
$ in millions						September 30, 2022						September 30, 2021						% change
Revenues:
Interest income						$	25					$	8					213%
Net gains on private equity investments (8)						9						74						(88)%
All other						9						6						50%
Total revenues						43						88						(51)%
Interest expense						(93)						(96)						(3)%
Net revenues						(50)						(8)						(525)%
Non-interest expenses:
Compensation and all other (8)						141						140						1%
Losses on extinguishment of debt (12)						—						98						(100)%
Total non-interest expenses						141						238						(41)%
Pre-tax loss						$	(191)					$	(246)					22%

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 Fourth Quarter of 2022			(Unaudited)

Bank Segment (3)

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

						As of																		% change from
$ in millions						September 30, 2022						September 30, 2021						June 30, 2022						September 30, 2021						June 30, 2022
Total assets						$	56,737					$	36,154					$	55,562					57%						2%
Bank loans, net:
Raymond James Bank						$	31,109					$	24,994					$	30,053					24%						4%
TriState Capital Bank						12,130						—						11,790						NM						3%
Total bank loans, net						$	43,239					$	24,994					$	41,843					73%						3%
Bank loan allowance for credit losses						$	396					$	320					$	377					24%						5%
Bank loan allowance for credit losses as a % of total loans held for investment						0.91		%				1.27		%				0.90		%
Bank loan allowance for credit losses on corporate loans as a % of corporate loans held for investment (24)						1.73		%				2.25		%				1.73		%
Total nonperforming assets						$	74					$	74					$	92					—%						(20)%
Nonperforming assets as a % of total assets						0.13		%				0.20		%				0.17		%
Total criticized loans						$	496					$	824					$	687					(40)%						(28)%
Criticized loans as a % of loans held for investment						1.14		%				3.27		%				1.63		%

						Three months ended																		% change from												Twelve months ended
$ in millions						September 30, 2022						September 30, 2021						June 30, 2022						September 30, 2021						June 30, 2022						September 30, 2022						September 30, 2021						% change
Bank loan provision/(benefit) for credit losses (11)						$	34					$	5					$	56					580%						(39)%						$	100					$	(32)					NM
Net charge-offs						$	14					$	7					$	10					100%						40%						$	26					$	13					100%

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 Fourth Quarter of 2022			(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 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. Beginning with our fiscal third quarter of 2022, certain of our non-GAAP financial measures have been adjusted for additional expenses directly related to our acquisitions that we believe are not indicative of our core operating results, such as those related to amortization of identifiable intangible assets arising from acquisitions and acquisition-related retention. Prior periods have been conformed to the current period presentation. 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																					Twelve months ended
$ in millions						September 30, 2022						September 30, 2021						June 30, 2022									September 30, 2022						September 30, 2021
Net income available to common shareholders						$	437					$	429					$	299								$	1,505					$	1,403
Non-GAAP adjustments:
Expenses directly related to acquisitions included in the following financial statement line items:
Compensation, commissions and benefits:
Acquisition-related retention (10)						17						13						16									58						48
Other acquisition-related compensation (9)						—						1						2									2						1
Total “Compensation, commissions and benefits” expense						17						14						18									60						49
Professional fees (9)						1						5						4									12						10
Bank loan provision/(benefit) for credit losses — Initial provision for credit losses on acquired loans (11)						—						—						26									26						—
Other:
Amortization of identifiable intangible assets (25)						11						7						8									33						21
Initial provision for credit losses on acquired lending commitments (11)						—						—						5									5						—
All other acquisition-related expenses (9)						1						1						4									11						2
Total “Other” expense						12						8						17									49						23
Total expenses related to acquisitions						30						27						65									147						82
Losses on extinguishment of debt (12)						—						—						—									—						98
Pre-tax impact of non-GAAP adjustments						30						27						65									147						180
Tax effect of non-GAAP adjustments						(8)						(6)						(16)									(37)						(43)
Total non-GAAP adjustments, net of tax						22						21						49									110						137
Adjusted net income available to common shareholders (2)						$	459					$	450					$	348								$	1,615					$	1,540
Pre-tax income						$	616					$	560					$	415								$	2,022					$	1,791
Pre-tax impact of non-GAAP adjustments (as detailed above)						30						27						65									147						180
Adjusted pre-tax income (2)						$	646					$	587					$	480								$	2,169					$	1,971
Compensation, commissions and benefits expense						$	1,759					$	1,775					$	1,834								$	7,329					$	6,584
Less: Total compensation-related acquisition expenses (as detailed above)						17						14						18									60						49
Adjusted “Compensation, commissions and benefits” expense (2)						$	1,742					$	1,761					$	1,816								$	7,269					$	6,535

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 Fourth Quarter of 2022			(Unaudited)

Reconciliation of non-GAAP financial measures to GAAP financial measures
(Continued from previous page)
						Three months ended																					Twelve months ended
						September 30, 2022						September 30, 2021						June 30, 2022									September 30, 2022						September 30, 2021
Pre-tax margin (15)						21.8		%				20.8		%				15.3		%							18.4		%				18.4		%
Impact of non-GAAP adjustments on pre-tax margin:
Compensation, commissions and benefits:
Acquisition-related retention (10)						0.6		%				0.6		%				0.6		%							0.5		%				0.5		%
Other acquisition-related compensation (9)						—		%				—		%				0.1		%							—		%				—		%
Total “Compensation, commissions and benefits” expense						0.6		%				0.6		%				0.7		%							0.5		%				0.5		%
Professional fees (9)						—		%				0.2		%				0.1		%							0.1		%				0.1		%
Bank loan provision/(benefit) for credit losses — Initial provision for credit losses on acquired loans (11)						—		%				—		%				1.0		%							0.2		%				—		%
Other:
Amortization of identifiable intangible assets (25)						0.4		%				0.2		%				0.3		%							0.3		%				0.2		%
Initial provision for credit losses on acquired lending commitments (11)						—		%				—		%				0.2		%							0.1		%				—		%
All other acquisition-related expenses (9)						—		%				—		%				0.1		%							0.1		%				—		%
Total “Other” expense						0.4		%				0.2		%				0.6		%							0.5		%				0.2		%
Total expenses related to acquisitions						1.0		%				1.0		%				2.4		%							1.3		%				0.8		%
Losses on extinguishment of debt (12)						—		%				—		%				—		%							—		%				1.0		%
Total non-GAAP adjustments						1.0		%				1.0		%				2.4		%							1.3		%				1.8		%
Adjusted pre-tax margin (2) (15)						22.8		%				21.8		%				17.7		%							19.7		%				20.2		%
Total compensation ratio (16)						62.1		%				65.9		%				67.5		%							66.6		%				67.5		%
Less the impact of non-GAAP adjustments on compensation ratio:
Acquisition-related retention (10)						0.6		%				0.6		%				0.6		%							0.5		%				0.5		%
Other acquisition-related compensation (9)						—		%				—		%				0.1		%							—		%				—		%
Total “Compensation, commissions and benefits” expenses related to acquisitions						0.6		%				0.6		%				0.7		%							0.5		%				0.5		%
Adjusted total compensation ratio (2) (16)						61.5		%				65.3		%				66.8		%							66.1		%				67.0		%

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 Fourth Quarter of 2022			(Unaudited)

Reconciliation of non-GAAP financial measures to GAAP financial measures
(Continued from previous page)
						Three months ended																					Twelve months ended
Earnings per common share (7)						September 30, 2022						September 30, 2021						June 30, 2022									September 30, 2022						September 30, 2021
Basic						$	2.03					$	2.08					$	1.41								$	7.16					$	6.81
Impact of non-GAAP adjustments on basic earnings per common share:
Compensation, commissions and benefits:
Acquisition-related retention (10)						0.08						0.06						0.08									0.28						0.23
Other acquisition-related compensation (9)						—						0.01						0.01									0.01						0.01
Total “Compensation, commissions and benefits” expense						0.08						0.07						0.09									0.29						0.24
Professional fees (9)						—						0.02						0.02									0.06						0.05
Bank loan provision/(benefit) for credit losses — Initial provision for credit losses on acquired loans (11)						—						—						0.12									0.12						—
Other:
Amortization of identifiable intangible assets (25)						0.05						0.03						0.04									0.16						0.10
Initial provision for credit losses on acquired lending commitments (11)						—						—						0.02									0.02						—
All other acquisition-related expenses (9)						0.01						0.01						0.02									0.05						0.01
Total “Other” expense						0.06						0.04						0.08									0.23						0.11
Total expenses related to acquisitions						0.14						0.13						0.31									0.70						0.40
Losses on extinguishment of debt (12)						—						—						—									—						0.48
Tax effect of non-GAAP adjustments						(0.04)						(0.03)						(0.07)									(0.18)						(0.21)
Total non-GAAP adjustments, net of tax						0.10						0.10						0.24									0.52						0.67
Adjusted basic (2)						$	2.13					$	2.18					$	1.65								$	7.68					$	7.48
Diluted						$	1.98					$	2.02					$	1.38								$	6.98					$	6.63
Impact of non-GAAP adjustments on diluted earnings per common share:
Compensation, commissions and benefits:
Acquisition-related retention (10)						0.08						0.06						0.07									0.27						0.23
Other acquisition-related compensation (9)						—						0.01						0.01									0.01						—
Total “Compensation, commissions and benefits” expense						0.08						0.07						0.08									0.28						0.23
Professional fees (9)						—						0.02						0.02									0.06						0.05
Bank loan provision/(benefit) for credit losses — Initial provision for credit losses on acquired loans (11)						—						—						0.12									0.12						—
Other:
Amortization of identifiable intangible assets (25)						0.05						0.03						0.04									0.15						0.10
Initial provision for credit losses on acquired lending commitments (11)						—						—						0.02									0.02						—
All other acquisition-related expenses (9)						0.01						0.01						0.02									0.05						0.01
Total “Other” expense						0.06						0.04						0.08									0.22						0.11
Total expenses related to acquisitions						0.14						0.13						0.30									0.68						0.39
Losses on extinguishment of debt (12)						—						—						—									—						0.46
Tax effect of non-GAAP adjustments						(0.04)						(0.03)						(0.07)									(0.17)						(0.20)
Total non-GAAP adjustments, net of tax						0.10						0.10						0.23									0.51						0.65
Adjusted diluted (2)						$	2.08					$	2.12					$	1.61								$	7.49					$	7.28

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

21

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RAYMOND JAMES FINANCIAL, INC.			Non-GAAP Financial Measures
Fiscal Fourth Quarter of 2022			(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						September 30, 2022						September 30, 2021						June 30, 2022
Total common equity attributable to Raymond James Financial, Inc.						$	9,338					$	8,245					$	9,395
Less non-GAAP adjustments:
Goodwill and identifiable intangible assets, net						1,931						882						1,810
Deferred tax liabilities related to goodwill and identifiable intangible assets, net						(108)						(64)						(128)
Tangible common equity attributable to Raymond James Financial, Inc.						$	7,515					$	7,427					$	7,713
Common shares outstanding						215.1						205.7						215.5
Book value per share (13)						$	43.41					$	40.08					$	43.60
Tangible book value per share (2) (13)						$	34.94					$	36.11					$	35.79

Return on common equity						Three months ended																					Twelve months ended
$ in millions						September 30, 2022						September 30, 2021						June 30, 2022									September 30, 2022						September 30, 2021
Average common equity (26)						$	9,367					$	8,054					$	8,999								$	8,836					$	7,635
Impact of non-GAAP adjustments on average common equity:
Compensation, commissions and benefits:
Acquisition-related retention (10)						9						6						8									27						23
Other acquisition-related compensation (9)						—						1						1									1						—
Total “Compensation, commissions and benefits” expense						9						7						9									28						23
Professional fees (9)						1						3						2									6						4
Bank loan provision/(benefit) for credit losses — Initial provision for credit losses on acquired loans (11)						—						—						13									10						—
Other:
Amortization of identifiable intangible assets (25)						5						3						4									16						9
Initial provision for credit losses on acquired lending commitments (11)						—						—						3									2						—
All other acquisition-related expenses (9)						—						1						2									6						1
Total “Other” expense						5						4						9									24						10
Total expenses related to acquisitions						15						14						33									68						37
Losses on extinguishment of debt (12)						—						—						—									—						39
Tax effect of non-GAAP adjustments						(4)						(3)						(8)									(17)						(18)
Total non-GAAP adjustments, net of tax						11						11						25									51						58
Adjusted average common equity (2) (26)						$	9,378					$	8,065					$	9,024								$	8,887					$	7,693

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 Fourth Quarter of 2022			(Unaudited)

Reconciliation of non-GAAP financial measures to GAAP financial measures
(Continued from previous page)
						Three months ended																					Twelve months ended
$ in millions						September 30, 2022						September 30, 2021						June 30, 2022									September 30, 2022						September 30, 2021
Average common equity (26)						$	9,367					$	8,054					$	8,999								$	8,836					$	7,635
Less:
Average goodwill and identifiable intangible assets, net						1,871						872						1,460									1,322						809
Deferred tax liabilities related to goodwill and identifiable intangible assets, net						(118)						(60)						(108)									(91)						(53)
Average tangible common equity (2) (26)						$	7,614					$	7,242					$	7,647								$	7,605					$	6,879
Impact of non-GAAP adjustments on average tangible common equity:
Compensation, commissions and benefits:
Acquisition-related retention (10)						9						6						8									27						23
Other acquisition-related compensation (9)						—						1						1									1						—
Total “Compensation, commissions and benefits” expense						9						7						9									28						23
Professional fees (9)						1						3						2									6						4
Bank loan provision/(benefit) for credit losses — Initial provision for credit losses on acquired loans (11)						—						—						13									10						—
Other:
Amortization of identifiable intangible assets (25)						5						3						4									16						9
Initial provision for credit losses on acquired lending commitments (11)						—						—						3									2						—
All other acquisition-related expenses (9)						—						1						2									6						1
Total “Other” expense						5						4						9									24						10
Total expenses related to acquisitions						15						14						33									68						37
Losses on extinguishment of debt (12)						—						—						—									—						39
Tax effect of non-GAAP adjustments						(4)						(3)						(8)									(17)						(18)
Total non-GAAP adjustments, net of tax						11						11						25									51						58
Adjusted average tangible common equity (2) (26)						$	7,625					$	7,253					$	7,672								$	7,656					$	6,937
Return on common equity (14)						18.7		%				21.3		%				13.3		%							17.0		%				18.4		%
Adjusted return on common equity (2) (14)						19.6		%				22.3		%				15.4		%							18.2		%				20.0		%
Return on tangible common equity (2) (14)						23.0		%				23.7		%				15.6		%							19.8		%				20.4		%
Adjusted return on tangible common equity (2) (14)						24.1		%				24.8		%				18.1		%							21.1		%				22.2		%

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

23

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RAYMOND JAMES FINANCIAL, INC.                             

Fiscal Fourth Quarter of 2022                                 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.
(2)						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. Beginning with our fiscal third quarter of 2022, certain non-GAAP financial measures were adjusted for additional expenses directly related to our acquisitions that we believe are not indicative of our core operating results, such as those related to amortization of identifiable intangible assets arising from acquisitions and acquisition-related retention. Prior periods have been conformed to the current period presentation.
(3)						On June 1, 2022, we completed our acquisition of all the outstanding shares of TriState Capital, including its wholly-owned subsidiaries TriState Capital Bank, a Pennsylvania-chartered state bank, and Chartwell Investment Partners, LLC (“Chartwell”), a registered investment adviser. TriState Capital Bank and Chartwell have been integrated into our Bank and Asset Management segments, respectively, and their results of operations have been included in our results prospectively from the closing date of June 1, 2022. TriState Capital Bank will continue to operate as a separately branded firm and as an independently-chartered bank.
(4)						On July 1, 2022, we completed our acquisition of SumRidge Partners, LLC (“SumRidge Partners”). SumRidge Partners has been integrated into our Capital Markets segment, and its results of operations have been included in our results prospectively from the closing date of July 1, 2022.
(5)						This metric includes the impact of the transfer of one firm with 166 financial advisors previously affiliated as independent contractors to our Registered Investment Advisor & Custody Services (“RCS”) division during our fiscal third quarter of 2022. Advisors in RCS are not included in the financial advisor count, although their assets are still included in client assets under administration.
(6)						Estimated.
(7)						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 September 30, 2022, June 30, 2022, and September 30, 2021, and $3 million and $2 million for the twelve months ended September 30, 2022 and 2021, respectively.
(8)						Other revenues included $9 million and $18 million of net private equity gains and $3 million of net private equity losses for the three months ended September 30, 2022, September 30, 2021, and June 30, 2022, respectively, and $9 million and $74 million of net private equity gains for the years ended September 30, 2022 and 2021, respectively. These amounts were included in our Other segment. For the three months and year ended September 30, 2021, $5 million and $25 million, respectively, of such gains were attributable to noncontrolling interests and were offset in “Other” expenses. Amounts attributable to noncontrolling interests were insignificant for the three months ended September 30, 2022 and June 30, 2022, and the year ended September 30, 2022.
(9)						Beginning with our fiscal third quarter of 2022, we reclassified acquisition-related expenses which were previously reported in “Acquisition-related expenses” on our Consolidated Statements of Income into the respective income statement line items that align to their expense categories, including “Compensation, commissions, and benefits”, “Professional fees” (primarily legal fees), and “Other” expenses. Prior periods have been conformed to the current presentation.
(10)						Includes acquisition-related compensation expenses arising from equity and cash-based retention awards issued in conjunction with acquisitions in the current year and 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.
(11)						Our results for the three months ended June 30, 2022 and twelve months ended September 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/(benefit) 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.
(12)						Losses on extinguishment of debt include make-whole premiums, the accelerated amortization of debt issuance costs, and certain legal and other professional fees associated with the redemptions of our $250 million of 5.625% senior notes due 2024 and our $500 million of 3.625% senior notes due 2026, which occurred during our fiscal third quarter of 2021.
(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. 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.
(14)						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.
(15)						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.

24

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RAYMOND JAMES FINANCIAL, INC.                             

Fiscal Fourth Quarter of 2022                                 Footnotes

(16)						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.
(17)						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. Fees earned by the Private Client Group on deposits held by our Bank segment are eliminated in consolidation.
(18)						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.
(19)						Loans are presented net of unamortized discounts, unearned income, and deferred loan fees and costs.
(20)						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.
(21)						The average yield is presented on a tax-equivalent basis for each respective period.
(22)						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”.
(23)						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 and any losses on the extinguishment of such debt.
(24)						Corporate loans included commercial and industrial loans, commercial real estate loans, and real estate investment trust loans.
(25)						Amortization of identifiable intangible assets, which was included in “Other” expense, includes amortization of identifiable intangible assets arising from our acquisitions.
(26)						Average common equity 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 fiscal year, 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 five, 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 five. 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.

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