EX-99.2 3 rjf0331q222supplement.htm EX-99.2 FINANCIAL SUPPLEMENT FISCAL SECOND QUARTER 2022 OF RJF

EARNINGS RELEASE FINANCIAL SUPPLEMENT

SECOND QUARTER

OF FISCAL 2022 RESULTS

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RAYMOND JAMES FINANCIAL, INC.             

Consolidated Statements of Income (Unaudited)

						Three months ended																														% change from												Six months ended
in millions, except per share amounts						March 31, 2021						June 30, 2021						September 30, 2021						December 31, 2021						March 31, 2022						March 31, 2021						December 31, 2021						March 31, 2021						March 31, 2022						% change
Revenues:
Asset management and related administrative fees						$	1,173					$	1,262					$	1,366					$	1,382					$	1,464					25		%				6		%				$	2,240					$	2,846					27		%
Brokerage revenues:
Securities commissions						443						415						412						425						422						(5)		%				(1)		%				824						847						3		%
Principal transactions						148						137						129						133						142						(4)		%				7		%				295						275						(7)		%
Total brokerage revenues						591						552						541						558						564						(5)		%				1		%				1,119						1,122						—		%
Account and service fees						159						161						170						177						179						13		%				1		%				304						356						17		%
Investment banking						242						276						364						425						235						(3)		%				(45)		%				503						660						31		%
Interest income						200						205						215						225						242						21		%				8		%				403						467						16		%
Other (1)						44						55						74						51						27						(39)		%				(47)		%				100						78						(22)		%
Total revenues						2,409						2,511						2,730						2,818						2,711						13		%				(4)		%				4,669						5,529						18		%
Interest expense						(37)						(40)						(35)						(37)						(38)						3		%				3		%				(75)						(75)						—		%
Net revenues						2,372						2,471						2,695						2,781						2,673						13		%				(4)		%				4,594						5,454						19		%
Non-interest expenses:
Compensation, commissions and benefits						1,648						1,661						1,774						1,884						1,852						12		%				(2)		%				3,148						3,736						19		%
Non-compensation expenses:
Communications and information processing						107						109						114						112						127						19		%				13		%				206						239						16		%
Occupancy and equipment						57						58						60						59						62						9		%				5		%				114						121						6		%
Business development						21						31						36						35						34						62		%				(3)		%				44						69						57		%
Investment sub-advisory fees						31						34						37						38						40						29		%				5		%				59						78						32		%
Professional fees						24						26						32						26						22						(8)		%				(15)		%				54						48						(11)		%
Bank loan provision/(benefit) for credit losses						(32)						(19)						5						(11)						21						NM						NM						(18)						10						NM
Losses on extinguishment of debt (2)						—						98						—						—						—						—		%				—		%				—						—						—		%
Acquisition-related expenses (3)						—						7						10						6						11						NM						83		%				2						17						750		%
Other (1)						69						81						67						74						71						3		%				(4)		%				139						145						4		%
Total non-compensation expenses						277						425						361						339						388						40		%				14		%				600						727						21		%
Total non-interest expenses						1,925						2,086						2,135						2,223						2,240						16		%				1		%				3,748						4,463						19		%
Pre-tax income						447						385						560						558						433						(3)		%				(22)		%				846						991						17		%
Provision for income taxes						92						78						131						112						110						20		%				(2)		%				179						222						24		%
Net income						$	355					$	307					$	429					$	446					$	323					(9)		%				(28)		%				$	667					$	769					15		%
Earnings per common share – basic (4) (5)						$	1.72					$	1.49					$	2.08					$	2.16					$	1.56					(9)		%				(28)		%				$	3.23					$	3.71					15		%
Earnings per common share – diluted (4) (5)						$	1.68					$	1.45					$	2.02					$	2.10					$	1.52					(10)		%				(28)		%				$	3.16					$	3.61					14		%
Weighted-average common shares outstanding – basic (5)						206.7						205.8						205.5						206.3						207.7						—		%				1		%				206.0						207.0						—		%
Weighted-average common and common equivalent shares outstanding – diluted (5)						211.8						211.7						211.7						212.4						213.0						1		%				—		%				210.6						212.6						1		%

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

2

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RAYMOND JAMES FINANCIAL, INC.             

Consolidated Selected Key Metrics (Unaudited)

						As of																														% change from
$ in millions, except per share amounts						March 31, 2021						June 30, 2021						September 30, 2021						December 31, 2021						March 31, 2022						March 31, 2021						December 31, 2021
Total assets						$	56,066					$	57,161					$	61,891					$	68,461					$	73,101					30		%				7		%
Total equity attributable to Raymond James Financial, Inc.						$	7,592					$	7,863					$	8,245					$	8,600					$	8,602					13		%				—		%
Book value per share (5) (6)						$	36.89					$	38.28					$	40.08					$	41.45					$	41.38					12		%				—		%
Tangible book value per share (5) (6) (7)						$	32.94					$	34.36					$	36.11					$	37.55					$	36.46					11		%				(3)		%
Capital ratios:
Tier 1 capital						23.6		%				24.4		%				25.0		%				25.9		%				23.9		%	(8)
Total capital						24.7		%				25.6		%				26.2		%				27.0		%				25.0		%	(8)
Tier 1 leverage						12.2		%				12.6		%				12.6		%				12.1		%				11.1		%	(8)

						Three months ended																														% change from												Six months ended
$ in millions						March 31, 2021						June 30, 2021						September 30, 2021						December 31, 2021						March 31, 2022						March 31, 2021						December 31, 2021						March 31, 2021						March 31, 2022						% change
Adjusted pre-tax income (7)						NA						$	490					$	570					$	564					$	444					(1)		%				(21)		%				$	848					$	1,008					19		%
Adjusted net income (7)						NA						$	386					$	437					$	451					$	331					(7)		%				(27)		%				$	669					$	782					17		%
Adjusted earnings per common share – basic (4) (5) (7)						NA						$	1.88					$	2.12					$	2.18					$	1.59					(8)		%				(27)		%				$	3.24					$	3.77					16		%
Adjusted earnings per common share – diluted (4) (5) (7)						NA						$	1.82					$	2.06					$	2.12					$	1.55					(8)		%				(27)		%				$	3.17					$	3.67					16		%
Return on equity (9)						19.0		%				15.9		%				21.3		%				21.2		%				15.0		%																18.1		%				18.1		%
Adjusted return on equity (7) (9)						NA						19.9		%				21.7		%				21.4		%				15.4		%																18.2		%				18.4		%
Return on tangible common equity (7) (9)						21.2		%				17.7		%				23.7		%				23.4		%				16.8		%																20.1		%				20.2		%
Adjusted return on tangible common equity (7) (9)						NA						22.2		%				24.1		%				23.7		%				17.2		%																20.2		%				20.6		%
Pre-tax margin (10)						18.8		%				15.6		%				20.8		%				20.1		%				16.2		%																18.4		%				18.2		%
Adjusted pre-tax margin (7) (10)						NA						19.8		%				21.2		%				20.3		%				16.6		%																18.5		%				18.5		%
Total compensation ratio (11)						69.5		%				67.2		%				65.8		%				67.7		%				69.3		%																68.5		%				68.5		%
Effective tax rate						20.6		%				20.3		%				23.4		%				20.1		%				25.4		%																21.2		%				22.4		%

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

3

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RAYMOND JAMES FINANCIAL, INC.             

Consolidated Selected Key Metrics (Unaudited)

						As of																																	% change from
						March 31, 2021						June 30, 2021						September 30, 2021						December 31, 2021						March 31, 2022									March 31, 2021						December 31, 2021
Client asset metrics ($ in billions):
Client assets under administration (12)						$	1,085.4					$	1,165.0					$	1,178.7					$	1,257.8					$	1,256.1								16		%				—		%
Private Client Group assets under administration (12)						$	1,028.1					$	1,102.9					$	1,115.4					$	1,199.8					$	1,198.3								17		%				—		%
Private Client Group assets in fee-based accounts (12)						$	567.6					$	616.7					$	627.1					$	677.8					$	678.0								19		%				—		%
Financial assets under management						$	178.2					$	191.0					$	191.9					$	203.2					$	193.7								9		%				(5)		%
Clients' domestic cash sweep balances ($ in millions):
Raymond James Bank Deposit Program (“RJBDP”): (13)
Raymond James Bank						$	28,174					$	29,253					$	31,410					$	33,097					$	33,570								19		%				1		%
Third-party banks						25,110						25,080						24,496						24,316						25,887									3		%				6		%
Subtotal RJBDP						53,284						54,333						55,906						57,413						59,457									12		%				4		%
Client Interest Program						9,517						8,610						10,762						16,065						17,013									79		%				6		%
Total clients’ domestic cash sweep balances						$	62,801					$	62,943					$	66,668					$	73,478					$	76,470								22		%				4		%

						Three months ended																																	Six months ended
						March 31, 2021						June 30, 2021						September 30, 2021						December 31, 2021						March 31, 2022									March 31, 2021						March 31, 2022
Average yield on RJBDP - third-party banks (14)						0.30		%				0.29		%				0.29		%				0.28		%				0.32		%							0.31		%				0.30		%

						As of																																	% change from
						March 31, 2021						June 30, 2021						September 30, 2021						December 31, 2021						March 31, 2022									March 31, 2021						December 31, 2021
Private Client Group financial advisors:
Employees						3,375						3,423						3,461						3,447						3,601									7		%				4		%
Independent contractors						4,952						4,990						5,021						5,017						5,129									4		%				2		%
Total advisors (12)						8,327						8,413						8,482						8,464						8,730									5		%				3		%

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

4

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RAYMOND JAMES FINANCIAL, INC.        

Segment Results - Private Client Group (Unaudited)

						Three months ended																														% change from												Six months ended
$ in millions						March 31, 2021						June 30, 2021						September 30, 2021						December 31, 2021						March 31, 2022						March 31, 2021						December 31, 2021						March 31, 2021						March 31, 2022						% change
Revenues:
Asset management and related administrative fees						$	979					$	1,050					$	1,142					$	1,162					$	1,245					27		%				7		%				$	1,864					$	2,407					29		%
Brokerage revenues:
Mutual and other fund products						183						167						172						171						166						(9)		%				(3)		%				331						337						2		%
Insurance and annuity products						109						113						118						111						110						1		%				(1)		%				207						221						7		%
Equities, ETFs, and fixed income products						121						110						100						115						121						—		%				5		%				228						236						4		%
Total brokerage revenues						413						390						390						397						397						(4)		%				—		%				766						794						4		%
Account and service fees:
Mutual fund and annuity service fees						99						105						110						114						109						10		%				(4)		%				193						223						16		%
RJBDP fees: (13)
Third-party banks						19						18						18						17						20						5		%				18		%				40						37						(8)		%
Raymond James Bank						44						47						49						50						49						11		%				(2)		%				87						99						14		%
Client account and other fees						42						39						44						49						53						26		%				8		%				74						102						38		%
Total account and service fees						204						209						221						230						231						13		%				—		%				394						461						17		%
Investment banking						16						11						14						13						9						(44)		%				(31)		%				22						22						—		%
Interest income						30						31						32						33						37						23		%				12		%				60						70						17		%
All other						8						7						5						7						6						(25)		%				(14)		%				13						13						—		%
Total revenues						1,650						1,698						1,804						1,842						1,925						17		%				5		%				3,119						3,767						21		%
Interest expense						(3)						(2)						(3)						(3)						(3)						—		%				—		%				(5)						(6)						20		%
Net revenues						1,647						1,696						1,801						1,839						1,922						17		%				5		%				3,114						3,761						21		%
Non-interest expenses:
Financial advisor compensation and benefits						1,040						1,082						1,151						1,187						1,231						18		%				4		%				1,971						2,418						23		%
Administrative compensation and benefits						260						251						255						283						289						11		%				2		%				509						572						12		%
Total compensation, commissions and benefits						1,300						1,333						1,406						1,470						1,520						17		%				3		%				2,480						2,990						21		%
Non-compensation expenses						155						168						173						174						189						22		%				9		%				302						363						20		%
Total non-interest expenses						1,455						1,501						1,579						1,644						1,709						17		%				4		%				2,782						3,353						21		%
Pre-tax income						$	192					$	195					$	222					$	195					$	213					11		%				9		%				$	332					$	408					23		%

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

5

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RAYMOND JAMES FINANCIAL, INC.             

Segment Results - Capital Markets (Unaudited)

						Three months ended																														% change from												Six months ended
$ in millions						March 31, 2021						June 30, 2021						September 30, 2021						December 31, 2021						March 31, 2022						March 31, 2021						December 31, 2021						March 31, 2021						March 31, 2022						% change
Revenues:
Brokerage revenues:
Fixed income						$	142					$	124					$	118					$	120					$	125					(12)		%				4		%				$	273					$	245					(10)		%
Equity						34						36						33						39						41						21		%				5		%				76						80						5		%
Total brokerage revenues						176						160						151						159						166						(6)		%				4		%				349						325						(7)		%
Investment banking:
Merger & acquisition and advisory						122						153						215						271						139						14		%				(49)		%				271						410						51		%
Equity underwriting						67						69						89						97						52						(22)		%				(46)		%				127						149						17		%
Debt underwriting						37						43						46						44						35						(5)		%				(20)		%				83						79						(5)		%
Total investment banking						226						265						350						412						226						—		%				(45)		%				481						638						33		%
Interest income						5						4						4						5						5						—		%				—		%				8						10						25		%
Tax credit fund revenues						24						17						48						35						15						(38)		%				(57)		%				40						50						25		%
All other						4						3						4						5						4						—		%				(20)		%				11						9						(18)		%
Total revenues						435						449						557						616						416						(4)		%				(32)		%				889						1,032						16		%
Interest expense						(2)						(3)						(3)						(2)						(3)						50		%				50		%				(4)						(5)						25		%
Net revenues						433						446						554						614						413						(5)		%				(33)		%				885						1,027						16		%
Non-interest expenses:
Compensation, commissions and benefits						259						256						288						331						253						(2)		%				(24)		%				511						584						14		%
Acquisition-related expenses (3)						—						3						3						4						—						—		%				(100)		%				—						4						NM
Other non-compensation expenses						69						72						80						78						73						6		%				(6)		%				140						151						8		%
Total non-interest expenses						328						331						371						413						326						(1)		%				(21)		%				651						739						14		%
Pre-tax income						$	105					$	115					$	183					$	201					$	87					(17)		%				(57)		%				$	234					$	288					23		%

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

6

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RAYMOND JAMES FINANCIAL, INC.             

Segment Results - Asset Management (Unaudited)

						Three months ended																														% change from												Six months ended
$ in millions						March 31, 2021						June 30, 2021						September 30, 2021						December 31, 2021						March 31, 2022						March 31, 2021						December 31, 2021						March 31, 2021						March 31, 2022						% change
Revenues:
Asset management and related administrative fees:
Managed programs						$	137					$	148					$	156					$	151					$	149					9		%				(1)		%				$	266					$	300					13		%
Administration and other						64						70						74						76						77						20		%				1		%				123						153						24		%
Total asset management and related administrative fees						201						218						230						227						226						12		%				—		%				389						453						16		%
Account and service fees						5						4						5						6						6						20		%				—		%				9						12						33		%
All other						3						3						3						3						2						(33)		%				(33)		%				6						5						(17)		%
Net revenues						209						225						238						236						234						12		%				(1)		%				404						470						16		%
Non-interest expenses:
Compensation, commissions and benefits						50						43						44						46						47						(6)		%				2		%				95						93						(2)		%
Non-compensation expenses						72						77						80						83						84						17		%				1		%				139						167						20		%
Total non-interest expenses						122						120						124						129						131						7		%				2		%				234						260						11		%
Pre-tax income						$	87					$	105					$	114					$	107					$	103					18		%				(4)		%				$	170					$	210					24		%

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

7

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RAYMOND JAMES FINANCIAL, INC.             

Segment Results - Raymond James Bank (Unaudited)

						Three months ended																														% change from												Six months ended
$ in millions						March 31, 2021						June 30, 2021						September 30, 2021						December 31, 2021						March 31, 2022						March 31, 2021						December 31, 2021						March 31, 2021						March 31, 2022						% change
Revenues:
Interest income						$	165					$	172					$	179					$	187					$	199					21		%				6		%				$	333					$	386					16		%
Interest expense						(10)						(11)						(10)						(10)						(10)						—		%				—		%				(21)						(20)						(5)		%
Net interest income						155						161						169						177						189						22		%				7		%				312						366						17		%
All other						5						8						7						6						8						60		%				33		%				15						14						(7)		%
Net revenues						160						169						176						183						197						23		%				8		%				327						380						16		%
Non-interest expenses:
Compensation and benefits						13						13						13						13						14						8		%				8		%				25						27						8		%
Non-compensation expenses:
Bank loan provision/(benefit) for credit losses						(32)						(19)						5						(11)						21						NM						NM						(18)						10						NM
RJBDP fees to Private Client Group (13)						44						47						49						50						49						11		%				(2)		%				87						99						14		%
All other						24						24						28						29						30						25		%				3		%				51						59						16		%
Total non-compensation expenses						36						52						82						68						100						178		%				47		%				120						168						40		%
Total non-interest expenses						49						65						95						81						114						133		%				41		%				145						195						34		%
Pre-tax income						$	111					$	104					$	81					$	102					$	83					(25)		%				(19)		%				$	182					$	185					2		%

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

8

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RAYMOND JAMES FINANCIAL, INC.             

Segment Results - Other (15) (Unaudited)

						Three months ended																														% change from												Six months ended
$ in millions						March 31, 2021						June 30, 2021						September 30, 2021						December 31, 2021						March 31, 2022						March 31, 2021						December 31, 2021						March 31, 2021						March 31, 2022						% change
Revenues:
Interest income						$	3					$	—					$	2					$	1					$	3					—		%				200		%				$	6					$	4					(33)		%
Net gains/(losses) on private equity investments (1)						8						24						18						5						(2)						NM						NM						32						3						(91)		%
All other						2						4						(1)						2						5						150		%				150		%				3						7						133		%
Total revenues						13						28						19						8						6						(54)		%				(25)		%				41						14						(66)		%
Interest expense						(25)						(26)						(21)						(23)						(24)						(4)		%				4		%				(49)						(47)						(4)		%
Net revenues						(12)						2						(2)						(15)						(18)						(50)		%				(20)		%				(8)						(33)						(313)		%
Non-interest expenses:
Compensation and all other (1)						36						34						31						30						24						(33)		%				(20)		%				62						54						(13)		%
Losses on extinguishment of debt (2)						—						98						—						—						—						—		%				—		%				—						—						—		%
Acquisition-related expenses (3)						—						4						7						2						11						NM						450		%				2						13						550		%
Total non-interest expenses						36						136						38						32						35						(3)		%				9		%				64						67						5		%
Pre-tax loss						$	(48)					$	(134)					$	(40)					$	(47)					$	(53)					(10)		%				(13)		%				$	(72)					$	(100)					(39)		%

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

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RAYMOND JAMES FINANCIAL, INC.             

Raymond James Bank Selected Key Metrics (Unaudited)

The following metrics are attributable to our Raymond James Bank banking subsidiary, which is a component of our Raymond James Bank segment.

						As of																														% change from
$ in millions						March 31, 2021						June 30, 2021						September 30, 2021						December 31, 2021						March 31, 2022						March 31, 2021						December 31, 2021
Total assets						$	33,221					$	34,576					$	36,481					$	38,107					$	38,579					16		%				1		%
Total equity						$	2,409					$	2,532					$	2,594					$	2,597					$	2,383					(1)		%				(8)		%
Bank loans, net						$	22,879					$	23,896					$	24,994					$	26,132					$	27,883					22		%				7		%
Bank loan allowance for credit losses						$	345					$	322					$	320					$	308					$	328					(5)		%				6		%
Bank loan allowance for credit losses as a % of loans held for investment						1.50		%				1.34		%				1.27		%				1.18		%				1.17		%
Total nonperforming assets						$	31					$	43					$	74					$	74					$	104					235		%				41		%
Nonperforming assets as a % of total assets						0.09		%				0.12		%				0.20		%				0.19		%				0.27		%
Total criticized loans						$	1,001					$	980					$	824					$	735					$	735					(27)		%				—		%
Criticized loans as a % of loans held for investment						4.35		%				4.07		%				3.27		%				2.75		%				2.63		%
Capital ratios:
Tier 1 capital						13.1		%				13.5		%				13.4		%				13.3		%				12.6		%	(8)
Total capital						14.4		%				14.7		%				14.6		%				14.6		%				13.9		%	(8)
Tier 1 leverage						7.5		%				7.5		%				7.4		%				7.2		%				7.2		%	(8)

						As of																														% change from
$ in millions						March 31, 2021						June 30, 2021						September 30, 2021						December 31, 2021						March 31, 2022						March 31, 2021						December 31, 2021
Commercial and industrial loans						$	7,816					$	8,011					$	8,440					$	8,608					$	9,067					16		%				5		%
Commercial real estate loans						2,710						2,728						2,872						2,992						3,321						23		%				11		%
Real estate investment trust loans						1,380						1,270						1,112						1,189						1,408						2		%				18		%
Tax-exempt loans						1,223						1,320						1,321						1,290						1,287						5		%				—		%
Residential mortgage loans						5,001						5,170						5,318						5,568						5,945						19		%				7		%
Securities-based loans and other						4,891						5,582						6,106						6,563						6,904						41		%				5		%
Total loans held for investment						23,021						24,081						25,169						26,210						27,932						21		%				7		%
Held for sale loans						203						137						145						230						279						37		%				21		%
Total loans held for sale and investment						23,224						24,218						25,314						26,440						28,211						21		%				7		%
Allowance for credit losses						(345)						(322)						(320)						(308)						(328)						(5)		%				6		%
Bank loans, net						$	22,879					$	23,896					$	24,994					$	26,132					$	27,883					22		%				7		%

						Three months ended																														% change from												Six months ended
$ in millions						March 31, 2021						June 30, 2021						September 30, 2021						December 31, 2021						March 31, 2022						March 31, 2021						December 31, 2021						March 31, 2021						March 31, 2022						% change
Bank loan provision/(benefit) for credit losses						$	(32)					$	(19)					$	5					$	(11)					$	21					NM						NM						$	(18)					$	10					NM
Net charge-offs						$	2					$	4					$	7					$	1					$	1					(50)		%				—		%				$	2					$	2					—		%
Net interest margin (net yield on interest-earning assets)						1.94		%				1.92		%				1.92		%				1.92		%				2.01		%																1.98		%				1.97		%

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

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RAYMOND JAMES FINANCIAL, INC.         

Reconciliation of non-GAAP financial measures to GAAP financial measures (Unaudited)

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																								Six months ended
$ in millions												June 30, 2021						September 30, 2021						December 31, 2021						March 31, 2022						March 31, 2021						March 31, 2022
Net income												$	307					$	429					$	446					$	323					$	667					$	769
Non-GAAP adjustments:
Losses on extinguishment of debt (2)												98						—						—						—						—						—
Acquisition-related expenses (3)												7						10						6						11						2						17
Pre-tax impact of non-GAAP adjustments												105						10						6						11						2						17
Tax effect of non-GAAP adjustments												(26)						(2)						(1)						(3)						—						(4)
Total non-GAAP adjustments, net of tax												79						8						5						8						2						13
Adjusted net income												$	386					$	437					$	451					$	331					$	669					$	782
Pre-tax income												$	385					$	560					$	558					$	433					$	846					$	991
Pre-tax impact of non-GAAP adjustments (as detailed above)												105						10						6						11						2						17
Adjusted pre-tax income												$	490					$	570					$	564					$	444					$	848					$	1,008
Pre-tax margin (10)												15.6		%				20.8		%				20.1		%				16.2		%				18.4		%				18.2		%
Non-GAAP adjustments:
Losses on extinguishment of debt (2)												3.9		%				—		%				—		%				—		%				—		%				—		%
Acquisition-related expenses (3)												0.3		%				0.4		%				0.2		%				0.4		%				0.1		%				0.3		%
Total non-GAAP adjustments, net of tax												4.2		%				0.4						0.2		%				0.4		%				0.1		%				0.3		%
Adjusted pre-tax margin (10)												19.8		%				21.2		%				20.3		%				16.6		%				18.5		%				18.5		%

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

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RAYMOND JAMES FINANCIAL, INC.         

Reconciliation of non-GAAP financial measures to GAAP financial measures (Unaudited)

(Continued from previous page)

												Three months ended																								Six months ended
Earnings per common share (4) (5)												June 30, 2021						September 30, 2021						December 31, 2021						March 31, 2022						March 31, 2021						March 31, 2022
Basic												$	1.49					$	2.08					$	2.16					$	1.56					$	3.23					$	3.71
Non-GAAP adjustments:
Losses on extinguishment of debt (2)												0.48						—						—						—						—						—
Acquisition-related expenses (3)												0.03						0.05						0.03						0.05						0.01						0.08
Tax effect of non-GAAP adjustments												(0.12)						(0.01)						(0.01)						(0.02)						—						(0.02)
Total non-GAAP adjustments, net of tax												0.39						0.04						0.02						0.03						0.01						0.06
Adjusted basic												$	1.88					$	2.12					$	2.18					$	1.59					$	3.24					$	3.77
Diluted												$	1.45					$	2.02					$	2.10					$	1.52					$	3.16					$	3.61
Non-GAAP adjustments:
Losses on extinguishment of debt (2)												0.46						—						—						—						—						—
Acquisition-related expenses (3)												0.03						0.05						0.03						0.05						0.01						0.08
Tax effect of non-GAAP adjustments												(0.12)						(0.01)						(0.01)						(0.02)						—						(0.02)
Total non-GAAP adjustments, net of tax												0.37						0.04						0.02						0.03						0.01						0.06
Adjusted diluted												$	1.82					$	2.06					$	2.12					$	1.55					$	3.17					$	3.67

Book value per share						As of
$ in millions, except per share amounts						March 31, 2021						June 30, 2021						September 30, 2021						December 31, 2021						March 31, 2022
Total equity attributable to Raymond James Financial, Inc.						$	7,592					$	7,863					$	8,245					$	8,600					$	8,602
Less non-GAAP adjustments:
Goodwill and identifiable intangible assets, net						868						862						882						874						1,110
Deferred tax liabilities, net						(56)						(56)						(64)						(65)						(88)
Tangible common equity attributable to Raymond James Financial, Inc.						$	6,780					$	7,057					$	7,427					$	7,791					$	7,580
Common shares outstanding (5)						205.8						205.4						205.7						207.5						207.9
Book value per share (5) (6)						$	36.89					$	38.28					$	40.08					$	41.45					$	41.38
Tangible book value per share (5) (6) (7)						$	32.94					$	34.36					$	36.11					$	37.55					$	36.46

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

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RAYMOND JAMES FINANCIAL, INC.         

Reconciliation of non-GAAP financial measures to GAAP financial measures (Unaudited)

(Continued from previous page)

Return on equity						Three months ended																																	Six months ended
$ in millions						March 31, 2021						June 30, 2021						September 30, 2021						December 31, 2021						March 31, 2022									March 31, 2021						March 31, 2022
Average equity (16)						$	7,478					$	7,728					$	8,054					$	8,423					$	8,601								$	7,356					$	8,482
Impact on average equity of non-GAAP adjustments:
Losses on extinguishment of debt (2)						NA						49						—						—						—									—						—
Acquisition-related expenses (3)						NA						4						5						3						6									1						8
Tax effect of non-GAAP adjustments						NA						(13)						(1)						(1)						(2)									—						(2)
Adjusted average equity (16)						NA						$	7,768					$	8,058					$	8,425					$	8,605								$	7,357					$	8,488
Average equity (16)						$	7,478					$	7,728					$	8,054					$	8,423					$	8,601								$	7,356					$	8,482
Less:
Average goodwill and identifiable intangible assets, net						851						865						872						878						992									767						955
Average deferred tax liabilities, net						(56)						(56)						(60)						(64)						(77)									(49)						(72)
Average tangible common equity (16)						$	6,683					$	6,919					$	7,242					$	7,609					$	7,686								$	6,638					$	7,599
Impact on average equity of non-GAAP adjustments:
Losses on extinguishment of debt (2)						NA						49						—						—						—									—						—
Acquisition-related expenses (3)						NA						4						5						3						6									1						8
Tax effect of non-GAAP adjustments						NA						(13)						(1)						(1)						(2)									—						(2)
Adjusted average tangible common equity (16)						NA						$	6,959					$	7,246					$	7,611					$	7,690								$	6,639					$	7,605
Return on equity (9)						19.0		%				15.9		%				21.3		%				21.2		%				15.0		%							18.1		%				18.1		%
Adjusted return on equity (9)						NA						19.9		%				21.7		%				21.4		%				15.4		%							18.2		%				18.4		%
Return on tangible common equity (9)						21.2		%				17.7		%				23.7		%				23.4		%				16.8		%							20.1		%				20.2		%
Adjusted return on tangible common equity (9)						NA						22.2		%				24.1		%				23.7		%				17.2		%							20.2		%				20.6		%

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

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RAYMOND JAMES FINANCIAL, INC.         

Footnotes

(1)						Other revenues included $24 million, $18 million, and $32 million of private equity gains for the three months ended June 30, 2021, three months ended September 30, 2021, and six months ended March 31, 2021, respectively, which were included in our Other segment. Of these amounts $10 million, $5 million, and $10 million of the gains for the three months ended June 30, 2021, three months ended September 30, 2021, and six months ended March 31, 2021, respectively, were attributable to noncontrolling interests and were offset in Other expenses. Net gains/(losses) on private equity investments for all other periods presented were insignificant.
(2)						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.
(3)						Acquisition-related expenses in our Other segment included professional expenses and other costs incurred to effect our acquisition of Charles Stanley Group PLC ("Charles Stanley"), which was completed in January 2022, our announced acquisitions of TriState Capital Holdings, Inc. and SumRidge Partners, LLC., and our acquisitions completed in fiscal 2021. Acquisition-related expenses in our Capital Markets segment included amortization expense related to intangible assets with short useful lives associated with certain of our acquisitions completed in fiscal 2021.
(4)						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.
(5)						During our fiscal fourth quarter of 2021 the Board of Directors approved a 3-for-2 stock split, effected in the form of a 50% stock dividend, paid on September 21, 2021. All share and per share information has been retroactively adjusted to reflect this stock split.
(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 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 March 31, 2021.
(8)						Estimated.
(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.
(10)						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.
(11)						Total compensation ratio is computed by dividing compensation, commissions and benefits expense by net revenues for each respective period.
(12)						These metrics include the impact of the acquisition of Charles Stanley, which closed on January 21, 2022. As of March 31, 2022, the impact on client assets under administration and Private Client Group assets under administration was $33 billion, the impact on Private Client Group assets in fee-based accounts was $21 billion, and the impact on financial advisors was the addition of 200 advisors.
(13)						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 various third-party banks. Fees earned by the Private Client Group on Raymond James Bank deposits are eliminated in consolidation.
(14)						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.
(15)						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 our public debt and any losses on extinguishment of such debt.
(16)						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. For the year-to-date period, average equity is computed by adding the total 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 three, 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 three. 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.

14