bb0cb5c8ac0ce3c7a01ca876ca637b99c738b9fbd4294ff6b2a0053c19944958

| Metric (Unit) | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 |
|---------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Average yield on RJBDP - third-party banks (%) | **2.72%** **[0000720005-23-000022_rjf-20221231.htm:55]** | N/A | **3.37%** **[0000720005-23-000063_rjf-20230630.htm:71]** | N/A | N/A | N/A | Decreased by 18 basis points **[0000720005-24-000051_rjf-20240630.htm:68]** | **3.50%** **[0000720005-24-000069_rjf-20240930.htm:93]** |
| Private equity investments measured at NAV ($ million) | **94** **[0000720005-23-000022_rjf-20221231.htm:11]** | **99** **[0000720005-23-000043_rjf-20230331.htm:11]** | **100** **[0000720005-23-000063_rjf-20230630.htm:11]** | **101** **[0000720005-23-000079_rjf-20230930.htm:184]** | **101** **[0000720005-24-000019_rjf-20231231.htm:11]** | **99** **[0000720005-24-000034_rjf-20240331.htm:12]** | **101** **[0000720005-24-000051_rjf-20240630.htm:11]** | **102** **[0000720005-24-000069_rjf-20240930.htm:193]** |
| Net bank loans ($ million) | **44,066** **[0000720005-23-000022_rjf-20221231.htm:19]** | **43,683** **[0000720005-23-000043_rjf-20230331.htm:21]** | **43,345** **[0000720005-23-000063_rjf-20230630.htm:22]** | **43,775** **[0000720005-23-000079_rjf-20230930.htm:195]** | **44,182** **[0000720005-24-000019_rjf-20231231.htm:21]** | **44,099** **[0000720005-24-000034_rjf-20240331.htm:20]** | **45,149** **[0000720005-24-000051_rjf-20240630.htm:19]** | **45,879** **[0000720005-24-000069_rjf-20240930.htm:195]** |
| Unfunded commitments to investments ($ million) | **38** **[0000720005-23-000022_rjf-20221231.htm:11]** | **35** **[0000720005-23-000043_rjf-20230331.htm:11]** | **36** **[0000720005-23-000063_rjf-20230630.htm:11]** | N/A | **25** **[0000720005-24-000019_rjf-20231231.htm:11]** | **26** **[0000720005-24-000034_rjf-20240331.htm:12]** | **26** **[0000720005-24-000051_rjf-20240630.htm:11]** | **26** **[0000720005-24-000069_rjf-20240930.htm:193]** |
| Weighted-average life of securities portfolio (years) | **4.49** **[0000720005-23-000022_rjf-20221231.htm:13]** | **4.38** **[0000720005-23-000043_rjf-20230331.htm:97]** | **4.30** **[0000720005-23-000063_rjf-20230630.htm:104]** | **4.2** **[0000720005-23-000079_rjf-20230930.htm:112]** | **4.0** **[0000720005-24-000019_rjf-20231231.htm:14]** | **3.9** **[0000720005-24-000034_rjf-20240331.htm:14]** | **4.0** **[0000720005-24-000051_rjf-20240630.htm:13]** | **3.8** **[0000720005-24-000069_rjf-20240930.htm:198]** |
| Collateral available to be delivered or repledged ($ million) | **3,256** **[0000720005-23-000022_rjf-20221231.htm:18]** | **2,993** **[0000720005-23-000043_rjf-20230331.htm:19]** | **3,099** **[0000720005-23-000063_rjf-20230630.htm:20]** | **3,267** **[0000720005-23-000079_rjf-20230930.htm:194]** | **3,230** **[0000720005-24-000019_rjf-20231231.htm:19]** | **3,464** **[0000720005-24-000034_rjf-20240331.htm:19]** | **3,428** **[0000720005-24-000051_rjf-20240630.htm:18]** | **3,800** **[0000720005-24-000069_rjf-20240930.htm:203]** |
| Collateral delivered or repledged ($ million) | **523** **[0000720005-23-000022_rjf-20221231.htm:18]** | **766** **[0000720005-23-000043_rjf-20230331.htm:19]** | **776** **[0000720005-23-000063_rjf-20230630.htm:20]** | **730** **[0000720005-23-000079_rjf-20230930.htm:194]** | **1,126** **[0000720005-24-000019_rjf-20231231.htm:19]** | **1,725** **[0000720005-24-000034_rjf-20240331.htm:19]** | **1,741** **[0000720005-24-000051_rjf-20240630.htm:18]** | **1,653** **[0000720005-24-000069_rjf-20240930.htm:203]** |
| Assets pledged with FHLB or FRB ($ million) | **9,106** **[0000720005-23-000022_rjf-20221231.htm:18]** | N/A | N/A | **10,166** **[0000720005-23-000079_rjf-20230930.htm:195]** | N/A | **14,279** **[0000720005-24-000034_rjf-20240331.htm:19]** | **14,742** **[0000720005-24-000051_rjf-20240630.htm:18]** | **15,773** **[0000720005-24-000069_rjf-20240930.htm:203]** |
| Recognized assets/liabilities for reverse repurchase agreements ($ million) | **156** **[0000720005-23-000022_rjf-20221231.htm:17]** | N/A | **181** **[0000720005-23-000063_rjf-20230630.htm:19]** | **187** **[0000720005-23-000079_rjf-20230930.htm:193]** | **194** **[0000720005-24-000019_rjf-20231231.htm:18]** | **449** **[0000720005-24-000034_rjf-20240331.htm:18]** | **311** **[0000720005-24-000051_rjf-20240630.htm:17]** | **413** **[0000720005-24-000069_rjf-20240930.htm:202]** |
| Recognized assets/liabilities for securities borrowed ($ million) | **179** **[0000720005-23-000022_rjf-20221231.htm:17]** | N/A | **229** **[0000720005-23-000063_rjf-20230630.htm:19]** | **231** **[0000720005-23-000079_rjf-20230930.htm:193]** | **260** **[0000720005-24-000019_rjf-20231231.htm:18]** | **278** **[0000720005-24-000034_rjf-20240331.htm:18]** | **259** **[0000720005-24-000051_rjf-20240630.htm:17]** | **336** **[0000720005-24-000069_rjf-20240930.htm:202]** |
| Recognized assets/liabilities for repurchase agreements ($ million) | **150** **[0000720005-23-000022_rjf-20221231.htm:17]** | **150** **[0000720005-23-000043_rjf-20230331.htm:19]** | **110** **[0000720005-23-000063_rjf-20230630.htm:19]** | **157** **[0000720005-23-000079_rjf-20230930.htm:193]** | **169** **[0000720005-24-000019_rjf-20231231.htm:19]** | **371** **[0000720005-24-000034_rjf-20240331.htm:18]** | **374** **[0000720005-24-000051_rjf-20240630.htm:17]** | **402** **[0000720005-24-000069_rjf-20240930.htm:202]** |
| Recognized assets/liabilities for securities loaned ($ million) | **44** **[0000720005-23-000022_rjf-20221231.htm:17]** | **177** **[0000720005-23-000043_rjf-20230331.htm:19]** | **71** **[0000720005-23-000063_rjf-20230630.htm:19]** | **180** **[0000720005-23-000079_rjf-20230930.htm:193]** | **347** **[0000720005-24-000019_rjf-20231231.htm:19]** | **584** **[0000720005-24-000034_rjf-20240331.htm:18]** | **780** **[0000720005-24-000051_rjf-20240630.htm:17]** | **536** **[0000720005-24-000069_rjf-20240930.htm:202]** |
| Number of securities in unrealized loss position | **1,066** **[0000720005-23-000022_rjf-20221231.htm:14]** | **1,072** **[0000720005-23-000043_rjf-20230331.htm:15]** | **1,079** **[0000720005-23-000063_rjf-20230630.htm:15]** | **1,084** **[0000720005-23-000079_rjf-20230930.htm:190]** | **1,066** **[0000720005-24-000019_rjf-20231231.htm:15]** | **1,035** **[0000720005-24-000034_rjf-20240331.htm:15]** | **1,000** **[0000720005-24-000051_rjf-20240630.htm:14]** | **960** **[0000720005-24-000069_rjf-20240930.htm:199]** |
| Delinquent residential mortgage loans (%) | N/A | **0.11%** **[0000720005-23-000043_rjf-20230331.htm:105]** | **0.08%** **[0000720005-23-000063_rjf-20230630.htm:110]** | **0.08%** **[0000720005-23-000079_rjf-20230930.htm:124]** | **0.09%** **[0000720005-24-000019_rjf-20231231.htm:92]** | **0.08%** **[0000720005-24-000034_rjf-20240331.htm:105]** | **0.11%** **[0000720005-24-000051_rjf-20240630.htm:106]** | **0.15%** **[0000720005-24-000069_rjf-20240930.htm:133]** |

4a48c334077c3c5c364388c4d4c113f4c531675e5fa390201b23af0155de31b1

Raymond James Financial, Inc. (RJF) is a diversified financial services company engaged in investment management services for both retail and institutional clients, as well as merger and acquisition advisory, underwriting, distribution, trading, and brokerage of equity and debt securities. The company also offers the sale of mutual funds and other investment products, alongside corporate and retail banking services and trust services **[0000720005-24-000069_rjf-20240930.htm:2]** **[0000720005-24-000069_rjf-20240930.htm:151]**. RJF operates through five main segments, leveraging synergies across these areas to maintain stable financial performance through various economic cycles **[RJF_3376327_1]**.

1. **Private Client Group (PCG)** - Offers financial planning, investment advisory, and securities transaction services, contributing significantly to the company's net revenue **[0000720005-24-000038_rjf2024analystinvestorda.htm:1]** **[0000720005-24-000069_rjf-20240930.htm:90]**.
2. **Bank** - Includes loans and deposits, providing essential banking services to clients **[0000720005-24-000038_rjf2024analystinvestorda.htm:1]**.
3. **Capital Markets** - Encompasses investment banking and brokerage services, facilitating the trading and distribution of securities **[0000720005-24-000038_rjf2024analystinvestorda.htm:1]**.
4. **Asset Management** - Provides investment options and product due diligence, supporting clients in managing their investment portfolios **[0000720005-24-000038_rjf2024analystinvestorda.htm:1]**.
5. **Other** - Comprises interest income on corporate cash balances and private equity investments, among other activities **[0000720005-24-000038_rjf2024analystinvestorda.htm:1]** **[0000720005-24-000007_rjf-20240108.htm:4]**.

d1bb22ddfe5985742b115eaa373746f6a1f6b9b1ff446f3d195345ab26f4bf52

Total Revenue (USD, millions)

Cost of Goods Sold (COGS) (USD, millions)

SG&A (USD, millions)

R&D (USD, millions)

Depreciation and Amortization (USD, millions)

Interest Expense (USD, millions)

Operating Income (EBIT) (USD, millions)

Net Income (USD, millions)

EPS - Basic (USD/share)

EPS - Diluted (USD/share)

263e83dd19ed577c604325493df613e156687c271acd1cf59d2ae50649f40d63

Adjustments for Non-Cash Items (USD, millions)

Stock-Based Compensation (USD, millions)

Changes in Working Capital (USD, millions)

Capital Expenditures (CapEx) (USD, millions)

Proceeds from / Repayments of Debt (USD, millions)

Share Repurchases (USD, millions)

Dividend Payments (USD, millions)

Net Change in Cash (USD, millions)

4c1feb6402318b1e08cafa22d16c2c3adadf0c537330145dd4907bcd887e8e5f

| Segment / Quarter | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 |
|-------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Private Client Group (Million $) | **2,063**  **[0000720005-23-000019_rjf20221231q422earnings.htm:7]**  | **2,144**  **[0000720005-23-000039_rjf20230331q223earnings.htm:9]**  | **2,182**  **[0000720005-23-000057_rjf20230630q323earnings.htm:9]**  | **2,265**  **[0000720005-23-000073_rjf20230930q423earnings.htm:9]**  | **2,226**  **[0000720005-24-000014_rjf20231231q423earnings.htm:7]**  | **2,341**  **[0000720005-24-000030_rjf20240331q224earnings.htm:10]**  | **2,416**  **[0000720005-24-000047_rjf20240630q324earnings.htm:9]**  | **2,476**  **[0000720005-24-000063_rjf20240930q424earnings.htm:9]**  |
| Capital Markets (Million $) | **295**  **[0000720005-23-000019_rjf20221231q422earnings.htm:7]**  | **302**  **[0000720005-23-000039_rjf20230331q223earnings.htm:9]**  | **276**  **[0000720005-23-000057_rjf20230630q323earnings.htm:9]**  | **341**  **[0000720005-23-000073_rjf20230930q423earnings.htm:9]**  | **338**  **[0000720005-24-000014_rjf20231231q423earnings.htm:7]**  | **321**  **[0000720005-24-000030_rjf20240331q224earnings.htm:10]**  | **330**  **[0000720005-24-000047_rjf20240630q324earnings.htm:9]**  | **483**  **[0000720005-24-000063_rjf20240930q424earnings.htm:9]**  |
| Asset Management (Million $) | **207**  **[0000720005-23-000019_rjf20221231q422earnings.htm:7]**  | **216**  **[0000720005-23-000039_rjf20230331q223earnings.htm:9]**  | **226**  **[0000720005-23-000057_rjf20230630q323earnings.htm:9]**  | **236**  **[0000720005-23-000073_rjf20230930q423earnings.htm:9]**  | **235**  **[0000720005-24-000014_rjf20231231q423earnings.htm:7]**  | **252**  **[0000720005-24-000030_rjf20240331q224earnings.htm:10]**  | **265**  **[0000720005-24-000047_rjf20240630q324earnings.htm:9]**  | **275**  **[0000720005-24-000063_rjf20240930q424earnings.htm:9]**  |
| Bank (Million $) | **508**  **[0000720005-23-000019_rjf20221231q422earnings.htm:7]**  | **540**  **[0000720005-23-000039_rjf20230331q223earnings.htm:9]**  | **514**  **[0000720005-23-000057_rjf20230630q323earnings.htm:9]**  | **451**  **[0000720005-23-000073_rjf20230930q423earnings.htm:9]**  | **441**  **[0000720005-24-000014_rjf20231231q423earnings.htm:7]**  | **424**  **[0000720005-24-000030_rjf20240331q224earnings.htm:10]**  | **418**  **[0000720005-24-000047_rjf20240630q324earnings.htm:9]**  | **433**  **[0000720005-24-000063_rjf20240930q424earnings.htm:9]**  |
| Other (Million $) | **(287)**  **[0000720005-23-000022_rjf-20221231.htm:35]**  | **10**  **[0000720005-23-000039_rjf20230331q223earnings.htm:9]**  | **15**  **[0000720005-23-000057_rjf20230630q323earnings.htm:12]**  | **25**  **[0000720005-23-000073_rjf20230930q423earnings.htm:9]**  | **26**  **[0000720005-24-000019_rjf-20231231.htm:46]**  | **17**  **[0000720005-24-000030_rjf20240331q224earnings.htm:10]**  | **28**  **[0000720005-24-000047_rjf20240630q324earnings.htm:9]**  | **28**  **[0000720005-24-000063_rjf20240930q424earnings.htm:9]**  |
| Intersegment Eliminations (Million $) | N/A | N/A | N/A | N/A | **(253)**  **[0000720005-24-000019_rjf-20231231.htm:46]**  | N/A | **(229)**  **[0000720005-24-000047_rjf20240630q324earnings.htm:9]**  | N/A |
| Total Net Revenues (Million $) | **2,786**  **[0000720005-23-000019_rjf20221231q422earnings.htm:7]**  | **2,873**  **[0000720005-23-000039_rjf20230331q223earnings.htm:9]**  | **2,907**  **[0000720005-23-000057_rjf20230630q323earnings.htm:9]**  | **3,053**  **[0000720005-23-000073_rjf20230930q423earnings.htm:9]**  | **3,013**  **[0000720005-24-000014_rjf20231231q423earnings.htm:7]**  | **3,118**  **[0000720005-24-000030_rjf20240331q224earnings.htm:10]**  | **3,228**  **[0000720005-24-000047_rjf20240630q324earnings.htm:9]**  | **3,462**  **[0000720005-24-000063_rjf20240930q424earnings.htm:9]**  |

d4859f518a404e13bf8c7c82d7a5e028296ff7a79a21e4a98f3aa45728a607eb

1. **Given the recent regulatory scrutiny on cash disclosures and potential conflicts of interest due to advisers sharing revenue from sweep options**, how is Raymond James ensuring that adviser incentives are aligned with clients' best interests, particularly in advisory accounts?  **[RJF_3394143_11]** 

2. **With cash sweep balances declining and clients moving to higher-yielding alternatives**, what specific strategies is Raymond James implementing to mitigate the impact on net interest income, and how sustainable are these measures if the trend continues?  **[RJF_3394143_27]** **[RJF_3394143_30]** **[RJF_3394143_8]** 

3. Despite **your Tier 1 leverage ratio standing at 12.7%**, well above your target of **10%**  **[RJF_3394143_4]** **[RJF_3394143_22]** , what are your specific plans to deploy this excess capital, and why hasn't it been utilized more aggressively for growth initiatives or shareholder returns?  **[RJF_3394143_4]** **[RJF_3394143_22]** 

4. Given that the **fixed income business results are lagging historical levels** and depository clients have less cash available for investing in securities  **[RJF_3394143_5]** , what concrete steps are you taking to **accelerate growth in the Capital Markets segment**, and how will you navigate prolonged market uncertainty if conditions don't improve as expected?  **[RJF_3394143_5]** 

5. With the **bank's loan allowance for credit losses decreasing to 1%** due to a shift toward **securities-based loans (34%) and residential mortgages (20%)** of the total loan portfolio  **[RJF_3394143_4]** , how are you managing the potential risk of concentration in these loan types, and what measures are in place to mitigate future credit quality issues amid economic uncertainties?  **[RJF_3394143_4]** 

3e8166c67f8de8bdaf894d1302d369991fe1a99012e4588c8847b31d77fd9888

U.S.

Canada

Europe

Other

Total Revenue

7b03eed97dcf9bc7622bfc547c23854c681654bdb42ca2a47927528b03341156

Average yield on RJBDP - third-party banks (%)

Private equity investments measured at NAV ($ million)

Net bank loans ($ million)

Unfunded commitments to investments ($ million)

Weighted-average life of securities portfolio (years)

Collateral available to be delivered or repledged ($ million)

Collateral delivered or repledged ($ million)

Assets pledged with FHLB or FRB ($ million)

Recognized assets/liabilities for reverse repurchase agreements ($ million)

Recognized assets/liabilities for securities borrowed ($ million)

Recognized assets/liabilities for repurchase agreements ($ million)

Recognized assets/liabilities for securities loaned ($ million)

Number of securities in unrealized loss position

Delinquent residential mortgage loans (%)

e11a22fc78648ca7b65b2a7af451bcd3dd037e69efd0f737791d684a80fd17b3

dcd97a2f26f02849a8ef1c5ba0e9ed4dc51ed920c0c66d6012414d7f61752116

dcaa9ec850e447c44ed4e39ee79dbb844df5f71053b369c42ac9e8b7d3f9228b

- National full service broker-dealers
- Investment banking firms
- Commercial banks
- Investment advisors
- Investment managers
- Discount brokers and dealers
- Fintechs
- Commercial firms and other non-traditional competitors
- Insurance companies
- Real estate firms
- Hedge funds  **[0000720005-24-000069_rjf-20240930.htm:50]** **[0000720005-24-000069_rjf-20240930.htm:49]** 

2cc062cd3a44c5c4875a3468a51534821e0abb2730d76246cdc3e4d602e42c75

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: Q2 2024
- **Guidance**:
  - **Effective Tax Rate**: Expected to be **24% to 25%**  **[RJF_3370741_5]** .
  - **Share Repurchases**: Plan to repurchase at least **$200 million** of shares in the fiscal second quarter  **[RJF_3370741_5]** .
  - **Net Interest Income and RJBDP Fees**: Expected to be about **5% lower** in the fiscal second quarter compared to the fiscal first quarter  **[RJF_3370741_4]** .
  - **Non-Compensation Expenses**: Expected to be around **$1.9 billion** for the fiscal year  **[RJF_3370741_4]** .
  - **Pretax Margin**: Target of **20-plus percent**  **[RJF_3370741_4]** .
  - **Compensation Ratio**: Aim for less than **65%**  **[RJF_3370741_4]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: FY 2024
- **Guidance**:
  - **Pretax Margin**: Target of **20% plus**  **[RJF_3380471_4]** .
  - **Compensation Ratio**: Target of **less than 65%**  **[RJF_3380471_4]** .
  - **Effective Tax Rate**: Estimated at **24%**  **[RJF_3380471_4]** .
  - **Non-Compensation Expenses**: Expected to be around **$1.9 billion** for the fiscal year  **[RJF_3380471_3]** .
  - **Net Interest Income and RJBDP Fees**: Dependent on short-term interest rates, client cash balances, and loan growth  **[RJF_3380471_3]** .
  - **Capital Management Strategy**: Continue offsetting share-based compensation dilution and be opportunistic with repurchases  **[RJF_3380471_4]** .

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: Q4 2024
- **Guidance**:
  - **Capital and Liquidity Levels**: Increase the pace of share buyback activity  **[RJF_3394143_4]** .
  - **Net Interest Income and RJBDP Fees**: Expected to be flat or down nominally in the fiscal fourth quarter  **[RJF_3394143_3]** .
  - **Noncompensation Expenses**: Expected to be around **$1.9 billion** for the fiscal year  **[RJF_3394143_3]** .
  - **Private Client Group (PCG) Assets**: Expected 3% sequential increase in assets in fee-based accounts  **[RJF_3394143_5]** .
  - **Capital Markets Segment**: Gradual recovery expected, influenced by market conditions  **[RJF_3394143_5]** .
  - **Bank Segment**: Focus on fortifying the balance sheet and growing assets prudently  **[RJF_3394143_5]** .

### Q4 2024 Earnings Call
- **Issued Period**: Q4 2024
- **Guided Period**: N/A (Specific guidance for Q4 2024 not provided)
- **Guidance**:
  - **Net Interest Income and RJBDP Fees**: Expected to be flat or down nominally in the fiscal fourth quarter  **[RJF_3394143_3]** .
  - **Private Client Group**: Positive impact expected from a 3% sequential increase in assets in fee-based accounts  **[RJF_3394143_5]** .
  - **Capital Markets Segment**: Expectation for a gradual recovery in M&A activity  **[RJF_3394143_5]** .
  - **Bank Segment**: Focus on fortifying the balance sheet and increased demand for securities-based loans  **[RJF_3394143_5]** .

These summaries include the guidance provided in each earnings call along with the periods they pertain to.

f7533188379778808287e5592761d1d28a8502198c091afa51afd08d1b4d88f3

| Name                     | Position                                                                 | Start Date         | Short Bio                                                                                                                                                                                                                       |
|--------------------------|--------------------------------------------------------------------------|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Christopher S. Aisenbrey | Chief Human Resources Officer                                            | October 2019       | Christopher S. Aisenbrey has been serving as the Chief Human Resources Officer at RJF since October 2019. Previously, he was the Senior Vice President of Organization and Talent Development at Raymond James & Associates, Inc.  **[0000720005-24-000069_rjf-20240930.htm:25]** **[0000720005-23-000079_rjf-20230930.htm:24]** **[0000720005-22-000066_rjf-20220930.htm:24]** . |
| James E. Bunn            | President - Capital Markets                                              | October 2024       | James E. Bunn has been serving as the President - Capital Markets at RJF since October 2024. He was previously the President of Global Equities and Investment Banking at Raymond James & Associates, Inc.  **[0000720005-24-000069_rjf-20240930.htm:25]** .                  |
| Horace L. Carter         | President - Fixed Income                                                 | January 2022       | Horace L. Carter has been serving as the President - Fixed Income at Raymond James & Associates, Inc. since January 2022. He is also the President at SumRidge Partners, LLC since July 2022  **[0000720005-24-000069_rjf-20240930.htm:25]** .                                |
| James R. E. Coulter      | Chief Executive Officer - Raymond James Ltd.                             | January 2022       | James R. E. Coulter has been the Chief Executive Officer of Raymond James Ltd. since January 2022. He was previously the Executive Vice President and Head of Wealth Management for the Private Client Group at Raymond James Ltd.  **[0000720005-24-000069_rjf-20240930.htm:25]** **[0000720005-23-000079_rjf-20230930.htm:24]** . |
| Scott A. Curtis          | Chief Operating Officer                                                  | October 2024       | Scott A. Curtis is the Chief Operating Officer at RJF, having assumed this role in October 2024. He was previously the President of the Private Client Group from June 2018 to September 2024  **[0000720005-24-000069_rjf-20240930.htm:25]** .                               |
| Tashtego S. Elwyn        | President - Private Client Group                                         | October 2024       | Tashtego S. Elwyn is the President of the Private Client Group at RJF since October 2024. He was previously the Chief Executive Officer and President of Raymond James & Associates, Inc. since June 2018  **[0000720005-24-000069_rjf-20240930.htm:25]** .                   |
| David Krauss             | Chief Risk Officer                                                       | September 2024     | David Krauss has been serving as the Chief Risk Officer at RJF since September 2024. He was previously the Managing Director, Global Head of Market Risk and Investment Banking Chief Risk Officer at Credit Suisse  **[0000720005-24-000069_rjf-20240930.htm:25]** .         |
| Bella Loykhter Allaire   | Chief Administrative Officer                                             | October 2024       | Bella Loykhter Allaire has been serving as the Chief Administrative Officer at RJF since October 2024. She was previously the Executive Vice President of Technology and Operations at Raymond James & Associates, Inc.  **[0000720005-24-000069_rjf-20240930.htm:25]** .     |
| Jonathan W. Oorlog, Jr.  | Chief Financial Officer                                                  | October 2024       | Jonathan W. Oorlog, Jr. has been serving as the Chief Financial Officer of RJF since October 2024. He was previously the Chief Accounting Officer from January 2023 to September 2024  **[0000720005-24-000069_rjf-20240930.htm:25]** .                                       |
| Steven M. Raney          | President - Bank Segment and Executive Chair - Raymond James Bank        | October 2024       | Steven M. Raney has been serving as the President - Bank Segment and Executive Chair - Raymond James Bank since October 2024. He has been with Raymond James Bank since January 2006  **[0000720005-24-000069_rjf-20240930.htm:25]** .                                        |
| Shannon B. Reid          | President - Independent Contractor Division and CEO/President - RJFS, Inc.| January 2024       | Shannon B. Reid has been serving as the President of the Independent Contractor Division at Raymond James Financial Services, Inc. since January 2024. She is also the CEO and President since October 2024  **[0000720005-24-000069_rjf-20240930.htm:25]** **[0001225208-24-000859_xslF345X02/doc3.xml:0]** .              |
| Paul C. Reilly           | Chair and Chief Executive Officer                                        | May 2010           | Paul C. Reilly has been serving as the Chair of RJF since February 2017 and as the Chief Executive Officer since May 2010. He will transition to the role of Executive Chair effective February 20, 2025  **[0000720005-24-000074_ex991_rjf20241204releaseceo.htm:0]** **[0000720005-24-000074_rjf-20241203.htm:1]** **[0000720005-24-000007_rjf-20240108.htm:15]** .               |
| Jonathan N. Santelli     | Executive Vice President, General Counsel and Secretary                  | May 2016           | Jonathan N. Santelli has been serving as the Executive Vice President, General Counsel, and Secretary of RJF since May 2016  **[0000720005-24-000069_rjf-20240930.htm:25]** **[0000720005-23-000079_rjf-20230930.htm:24]** **[0000720005-22-000066_rjf-20220930.htm:24]** .                                                                                          |
| Paul M. Shoukry          | President                                                                | March 2024         | Paul M. Shoukry has been serving as President of RJF since March 2024. He will serve as CEO effective February 20, 2025. He has been with the company since 2010 and has held various roles, including Chief Financial Officer  **[0000720005-24-000074_rjf-20241203.htm:1]** **[0000720005-24-000069_rjf-20240930.htm:25]** . |
| Katherine H. Larson      | Chief Accounting Officer                                                 | October 2024       | Katherine H. Larson is the Chief Accounting Officer at RJF, effective from October 2024. She was previously the Chief Accounting Officer from January 2023 to September 2024  **[0001225208-24-009238_xslF345X02/doc3.xml:0]** **[0000720005-24-000069_rjf-20240930.htm:25]** .                                            |

d9d5883bcd4bc9f4a229aa476a675bb38f70d6f00a28fc6fdb9cb99f93fcde01

| Program Details          | Program 1          |
|--------------------------|--------------------|
| Approval Date            | **November 2023**  **[0000720005-24-000069_rjf-20240930.htm:228]** **[0000720005-24-000069_rjf-20240930.htm:75]** **[0000720005-24-000069_rjf-20240930.htm:79]**  |
| End Date/Duration        | **N/A**            |
| Total additional amount  | **$1.5 billion**  **[0000720005-24-000069_rjf-20240930.htm:228]** **[0000720005-24-000069_rjf-20240930.htm:75]** **[0000720005-24-000069_rjf-20240930.htm:79]**  |
| Remaining authorization amount | **$644 million** as of September 30, 2024  **[0000720005-24-000069_rjf-20240930.htm:228]** **[0000720005-24-000069_rjf-20240930.htm:75]** **[0000720005-24-000069_rjf-20240930.htm:79]**  |
| Details                  | **Offset dilution from share-based compensation or acquisitions**  **[0000720005-24-000051_rjf-20240630.htm:38]** **[0000720005-24-000069_rjf-20240930.htm:228]**  |

86b62ad3d052dac31ebabf65955422fc7615e2aa4c03cb83f016858a08626437

**Quarterly guidance for Q4 2024:**
- **Net Interest Income and RJBDP Fees**: Expected to be flat or down nominally  **[RJF_3394143_3]**  (no change from prior guidance  **[RJF_3394143_3]** )  
- **Private Client Group**: Positive impact from a 3% sequential increase in assets in fee-based accounts  **[RJF_3394143_5]**  (no change from prior guidance  **[RJF_3394143_5]** )  
- **Capital Markets Segment**: Expectation for a gradual recovery in M&A activity  **[RJF_3394143_5]**  (no change from prior guidance  **[RJF_3394143_5]** )  
- **Bank Segment**: Focus on fortifying the balance sheet and increased demand for securities-based loans  **[RJF_3394143_5]**  (no change from prior guidance  **[RJF_3394143_5]** )  

81c78201f3a81822bcdd02ecd2825c894b04cdb50231d1d8535d682dd7113a2e

| Name       | Start Date | End Date | Reason for Change |
|------------|------------|----------|-------------------|
| KPMG LLP   | 2001  **[0000720005-24-000069_rjf-20240930.htm:146]**    | Present  | Current auditor   |

59768f13fd1e79c0ced2c845718ec38221f85f3f2e4f589b2401459f839e23a7

1705a085fa9699c35a7f924849b7f50ca5c41ca45ea330fed3e8c7bdef49f56f

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

675ebc4e4da127cb677ee3fe9365f248724179ca8e6349fd312b8ca6f495b02d

4b09b33065cb1936d7ed52cc5f65ee03ebe6a17d16e00d6cd83434330f984fd4

- Total Revenue: $4,035 million (+15% YoY)  **[0000720005-25-000018_rjf20241231q125earnings.htm:7]** **[0000720005-24-000019_rjf-20231231.htm:39]**   
- Private Client Group: $2,548 million (+13% YoY)  **[0000720005-25-000018_rjf20241231q125earnings.htm:7]** **[0000720005-24-000019_rjf-20231231.htm:39]**   
- Capital Markets: $480 million (+33% YoY)  **[0000720005-25-000018_rjf20241231q125earnings.htm:7]** **[0000720005-24-000019_rjf-20231231.htm:39]**   
- Asset Management: $294 million (+25% YoY)  **[0000720005-25-000018_rjf20241231q125earnings.htm:7]** **[0000720005-24-000019_rjf-20231231.htm:39]**   
- Bank: $425 million (**-52% YoY**)  **[0000720005-25-000018_rjf20241231q125earnings.htm:7]** **[0000720005-24-000019_rjf-20231231.htm:39]**   
- Investment Banking: $325 million (**+80% YoY**)  **[0000720005-25-000018_rjf20241231q125earnings.htm:7]** **[0000720005-24-000019_rjf-20231231.htm:39]**   

3d3f8b0ad26890ed1600e85ba902a7680f6b91599ee7396e669bf2f01eeca879

- **Strong capital position enabling growth and investments:** Raymond James Financial has a **Tier 1 leverage ratio of 13%**, which is **$2.5 billion above their 10% target**, providing significant **excess capital** for organic growth, investments, and potential acquisitions.  **[RJF_3413610_7]**  The firm is prioritizing investing in their business, with a focus on advisor recruiting and potential acquisitions across their Private Client Group, Capital Markets, and Asset Management segments.  **[RJF_3413610_7]** **[RJF_3413610_11]**
- **Robust advisor recruiting pipeline supporting asset growth:** The company reports a **strong recruiting pipeline**, with advisors representing up to **$20 billion in assets**  **[RJF_3413610_14]** , and expects continued growth in net new assets as these advisors join the firm.  **[RJF_3413610_10]**  The large prior advisor attrition is behind them, and there are no significant departures anticipated  **[RJF_3413610_14]** , indicating stability and potential for accelerated asset growth.
- **Optimistic outlook for Investment Banking driven by strong M&A pipeline:** Investment Banking revenues have been strong, with recent quarters seeing near-record levels in M&A revenues.  **[RJF_3413610_18]**  The company has a **healthy pipeline** and remains **optimistic** for the rest of the fiscal year, expecting continued strength in M&A activity.  **[RJF_3413610_18]**

78c87cf1497844c8ed7577a3f49f4d753aa449142d01fc0198e517364cc694f3

- **Asset declines and advisor attrition**: Raymond James experienced a decline in assets under administration due to the departure of a large branch, resulting in approximately **$5 billion** reduction in AUA. While management indicates that this issue is behind them, there is ongoing attrition, and they admit there is always some regretted attrition. Continued advisor departures could pose a risk to asset growth.  **[RJF_3413610_24]** ,  **[RJF_3413610_18]**
- **Elevated expense growth may pressure margins**: The company projects non-compensation expenses to increase by approximately **10%** in fiscal 2025, driven by investments in technology, higher sub-advisory fees (which grew **33% year-over-year**), FDIC insurance premiums, and recruiting costs. This expense growth may pressure margins if revenue growth does not keep pace.  **[RJF_3413610_4]** ,  **[RJF_3413610_16]**
- **Challenges in expanding C&I loan growth**: Raymond James faces difficulties in growing Commercial and Industrial loans due to **tight spreads** and muted origination flow. Management is cautious about pursuing growth that doesn't meet their risk-adjusted return thresholds, which may limit growth in the Bank segment and overall earnings potential.  **[RJF_3413610_7]**

de0000f387d3edfcd9b100ff3e98fae64a79aaed60bbb80241b80ad20e05d8ab

1. **Capital Management**  
   **Q:** How will you deploy excess capital and reduce the Tier 1 leverage ratio?  
   **A:** We aim to bring our Tier 1 leverage ratio down from **13%** to our target of **10%**, which is still twice the regulatory requirement to be well capitalized.  **[RJF_3413610_7]**  We're prioritizing organic growth, investing in our business and our advisors, and expanding our recruiting efforts across all divisions.  **[RJF_3413610_7]**  We're also actively looking for acquisitions that are a good cultural and strategic fit at the right price.  **[RJF_3413610_7]**  We slowed down share buybacks last quarter, but if other capital uses don't consume the excess, we'll consider increasing buybacks to previous levels.  **[RJF_3413610_7]** **[RJF_3413610_17]** 

2. **Net Interest Income Outlook**  
   **Q:** Will NII improve beyond next quarter?  
   **A:** Yes, we anticipate net interest income (NII) to improve beyond next quarter.  **[RJF_3413610_19]**  Despite having two fewer billable days upcoming, we expect asset growth to become a tailwind for NII as rates and net interest margin (NIM) stabilize.  **[RJF_3413610_19]**  Additionally, low-yielding securities of about **$1.5 billion** will mature over the next 12 months, with **$500 million** maturing next quarter, which we can redeploy into higher-yielding assets.  **[RJF_3413610_20]** 

3. **Capital Markets Margins**  
   **Q:** Can Capital Markets margins return to over 20%?  
   **A:** Achieving margins above **20%** in Capital Markets would require both equities and fixed income businesses to perform strongly simultaneously, which is atypical.  **[RJF_3413610_8]**  Currently, a margin around **15%-16%** is reasonable, given the mix of our business performance.  **[RJF_3413610_8]**  We would be very happy with margins in the **15% to 20%** range over cycles.  **[RJF_3413610_8]** 

4. **Technology and AI Investments**  
   **Q:** What are your major areas of investment, particularly in technology and AI?  
   **A:** We're focusing heavily on technology investments to help advisors save time and provide better services to clients more efficiently.  **[RJF_3413610_21]**  This includes upgrading technology infrastructure across all our businesses and investing in automation.  **[RJF_3413610_21]**  Regarding AI, we're actively exploring its potential impact and setting up dedicated teams to monitor developments, test use cases, and deploy solutions.  **[RJF_3413610_22]**  We'll share more details at our Analyst Investor Day.  **[RJF_3413610_21]** **[RJF_3413610_22]** 

5. **Non-Compensation Expenses**  
   **Q:** How flexible is the $2.1 billion non-comp expense guidance, and what about operating margins?  
   **A:** While there's some flexibility, many of these expenses grow in line with revenues, such as investment sub-advisory fees and branch expenses.  **[RJF_3413610_12]**  We're committed to long-term investments and don't plan to adjust expenses based on short-term revenue fluctuations.  **[RJF_3413610_12]**  Regarding operating margins, we believe a **10%** growth rate in non-comp expenses has been reasonable, given our revenue growth, but this may decelerate if associated revenue drivers slow down.  **[RJF_3413610_13]** 

6. **Net New Asset Growth**  
   **Q:** How can you accelerate net new asset growth?  
   **A:** Our recruiting pipeline is very healthy, which is key to accelerating net new asset growth.  **[RJF_3413610_10]**  Recruiting can be lumpy, and it takes about a year for new advisors to build up their asset base.  **[RJF_3413610_10]** **[RJF_3413610_14]**  We remain optimistic and expect strong net new assets as long as advisors continue to join us.  **[RJF_3413610_10]** 

7. **Loan Growth Expectations**  
   **Q:** What's the outlook for C&I loan growth?  
   **A:** While we're active in the C&I space, new origination flows have been muted due to tight spreads.  **[RJF_3413610_16]**  We expect loan growth to pick up in 2025 as the macroeconomic backdrop improves.  **[RJF_3413610_16]**  In the meantime, we anticipate continued growth in our securities-based loan portfolio.  **[RJF_3413610_16]** 

8. **Advisory Revenues and M&A Pipeline**  
   **Q:** How sustainable are the recent high advisory revenues?  
   **A:** Our pipeline is strong, but advisory revenues can be lumpy.  **[RJF_3413610_18]**  We had an exceptional first quarter with two large fees, including one over **$40 million**, which may not be indicative of future quarters.  **[RJF_3413610_18]**  While we're in the midst of a recovery, we caution against extrapolating recent revenues indefinitely.  **[RJF_3413610_18]** 

9. **Cash Balances and Programs**  
   **Q:** What's your outlook on sweep cash balance growth?  
   **A:** Our cash balances have remained resilient.  **[RJF_3413610_23]**  We prioritize what's best for our clients by offering competitive cash programs, including sweep programs and enhanced savings.  **[RJF_3413610_23]**  While quarter-to-quarter trends may vary, over the long term, we've performed as well as or better than the industry.  **[RJF_3413610_23]** 

10. **Advisor Compensation Ratio**  
    **Q:** Is the lower advisor comp ratio of 74% sustainable?  
    **A:** It's too early to declare a new run rate based on one or two quarters.  **[RJF_3413610_9]**  For fiscal year 2024, the advisor comp ratio was around **74.5%**.  **[RJF_3413610_9]**  The ratio can fluctuate due to mix dynamics and growth in production.  **[RJF_3413610_9]**  We aim to keep the firm's overall comp ratio under **65%**, though it may vary quarter to quarter.  **[RJF_3413610_24]** 

04c69dce94d6394d1727340f162b293b05128624ea979669358cb2e12c49661b

Raymond James posted a 13% Tier 1 leverage ratio ($2.5B above target), fueling robust advisor recruiting & M&A. Advisors with up to $20B in AUA are set to join, offsetting a recent $5B departure. However, 10% expense growth may threaten margins.

65504d0a3e8f8136ab4b51bb6ceeb2d4220a1ad7a06955052923a691c010d9cd

d020eea3672bc5f57444d273613dcc5e7c038c41d4cc6a69df3e2f211c86b082

**Quarterly guidance for Q2 2025:**  
- **Net Interest Income (NII) and RJBDP Fees**: Decline of 2% to 3%  **[RJF_3413610_3]**  (lowered from flat or perhaps down nominally  **[RJF_3394143_3]** )  
- **Asset Management and Related Fees**: Decline of approximately 2%  **[RJF_3413610_3]**  (no prior guidance)  
- **Private Client Group**: Approximately 2% decline  **[RJF_3413610_5]**  (no prior guidance)  

**Annual guidance for FY 2025:**  
- **Noncompensation Expenses**: $2.1 billion  **[RJF_3413610_3]**  (raised from $1.9 billion  **[RJF_3394143_3]** )  
- **Effective Tax Rate**: 24% to 25%  **[RJF_3413610_4]**  (no prior guidance)  
- **Compensation Ratio**: Under 65%  **[RJF_3413610_24]**  (no prior guidance)  

f3246b9ed5dd5f5f9c1e60da524200f6b881722a31960a2f9d2075d173b8531e

582234fa45f8010b21500c774827955f62dbd22db3470645a4183484f5fb855f

| Year | Amount Due ($ in millions) | Debt Type               | Interest Rate (%) | % of Total Debt                                                                 |
|----------|--------------------------------|-----------------------------|------------------------|------------------------------------------------------------------------------------|
| 2030     | 98                             | Subordinated Notes          | 5.75 (fixed until 2025, variable thereafter) **[0000720005-24-000069_rjf-20240930.htm:217]** | 4.6% = (98 / 2,138) * 100 **[0000720005-24-000069_rjf-20240930.htm:217]** **[0000720005-24-000069_rjf-20240930.htm:110]** **[0000720005-24-000069_rjf-20240930.htm:218]**                                  |
| 2030     | 500                            | Senior Notes                | 4.65 **[0000720005-24-000069_rjf-20240930.htm:218]**          | 23.4% = (500 / 2,138) * 100 **[0000720005-24-000069_rjf-20240930.htm:110]** **[0000720005-24-000069_rjf-20240930.htm:218]**                                       |
| 2046     | 800                            | Senior Notes                | 4.95 **[0000720005-24-000069_rjf-20240930.htm:218]**          | 37.4% = (800 / 2,138) * 100 **[0000720005-24-000069_rjf-20240930.htm:110]** **[0000720005-24-000069_rjf-20240930.htm:218]**                                       |
| 2051     | 750                            | Senior Notes                | 3.75 **[0000720005-24-000069_rjf-20240930.htm:218]**          | 35.1% = (750 / 2,138) * 100 **[0000720005-24-000069_rjf-20240930.htm:110]** **[0000720005-24-000069_rjf-20240930.htm:218]**                                       |

48179f55b0ef9b3bf13c3b8dbddda05c434068a2b9be2bcd4608d53c70adb36b

1. **Compensation Ratio Outlook**  
   **Q:** Will the annual comp ratio be below 65%?  
   **A:** Management targets a **65%** comp ratio for the year but noted it may depend on the Capital Markets segment's performance. Despite challenges, they achieved a **65.2%** adjusted comp ratio this quarter. Seasonal factors added **$30–$35 million** in expenses.  **[RJF_3380471_6]** 

2. **Recruiting Activity and Net New Asset Growth**  
   **Q:** What's pressuring net new assets and adviser headcount?  
   **A:** Organic growth is at the lower end historically, but they are hiring larger teams bringing in more assets. Movement to the RIA channel reduces licensed headcount, though assets remain. Recruiting remains strong, and asset onboarding takes time.  **[RJF_3380471_7]** 

3. **Cash Sweep Balances**  
   **Q:** Are cash sweep balances stabilizing and growing?  
   **A:** Cash sweep balances are down **$1.3 billion** in April due to tax season and fee billings but are expected to stabilize. Historically, balances build throughout the quarter after fee payments.  **[RJF_3380471_8]** 

4. **DOL Fiduciary Rule Impact**  
   **Q:** How does the final DOL rule affect you?  
   **A:** The rule appears manageable with no significant issues. Concerns center on the Department of Labor's authority and the need for additional rules beyond the best interest standard, but nothing problematic stands out.  **[RJF_3380471_9]** 

5. **M&A Outlook and Capital Deployment**  
   **Q:** Any plans for M&A or capital returns?  
   **A:** Management is actively seeking M&A opportunities across businesses and geographies but cannot predict timing. They prioritize investing in the business, including recruiting and acquisitions, and are considering managing high capital levels through buybacks or other means.  **[RJF_3380471_10]** **[RJF_3380471_13]** 

6. **Capital Markets Margins**  
   **Q:** What margins are expected as activity picks up?  
   **A:** Capital Markets margins have room to improve, having peaked at around **25–26%** previously. The business is leveraged, and as revenues grow, margins are expected to rebound significantly. Deferred compensation amortization of **$20 million** will reduce over the next 12–18 months.  **[RJF_3380471_12]** 

7. **Loan Growth Outlook**  
   **Q:** What's the outlook for loan growth and NII?  
   **A:** Loan growth is currently tepid due to higher rates and client cash levels. Management is optimistic about future loan demand but can't predict timing. They are maintaining strong capital positions to be ready when growth resumes.  **[RJF_3380471_14]** **[RJF_3380471_17]** 

8. **Adviser Movement and Competition**  
   **Q:** What's driving adviser movement and competition?  
   **A:** Adviser movement is competitive, with private equity investment in the RIA space increasing departures from traditional broker-dealers. The firm focuses on platform and culture to attract advisers, maintaining lower transition assistance than peers.  **[RJF_3380471_15]** 

e2f5977df50b8adcdf33b64f0a59b99110e8129ac6fa480e4f2e3504a0c8e781

1. **Net New Assets Growth**  
   **Q:** What's driving the acceleration in net new assets now?  
   **A:** The acceleration in net new assets is driven by strong retention and robust recruiting of larger teams. Despite retirements reducing adviser count numbers, assets are retained due to transition plans. The firm feels confident and believes they can do even better.  **[RJF_3370741_7]** 

2. **Capital Return and M&A**  
   **Q:** With strong capital, why not increase share buybacks, and what's your M&A outlook?  
   **A:** We were late into the quarter due to a blackout period but are committed to a **\$200 million** buyback next quarter. We're balancing capital return with potential inorganic opportunities across all business segments. There's increased dialogue in the market, and we aim to be ready to execute on acquisitions while not hoarding capital.  **[RJF_3370741_17]** 

3. **Margin Outlook with Market Improvement**  
   **Q:** How will margins improve if investment banking picks up?  
   **A:** When operating at record levels, our capital markets segment achieved a maximum margin of around **26%**. There's significant upside from breaking even this quarter, but we prefer to be conservative given uncertainties, especially around cash sorting dynamics.  **[RJF_3370741_18]** 

4. **Deposit Betas Amid Rate Cuts**  
   **Q:** What's the outlook for deposit pricing flexibility amid rate cuts?  
   **A:** We expect rates on ESP balances to align closely with Fed funds effective rates. With the Tri-State acquisition adding **\$18 billion** in higher-cost deposits, we have more sensitivity. Our generous rates on sweep deposits give us cushion on the way down.  **[RJF_3370741_19]** 

5. **Cash Sorting Dynamics**  
   **Q:** Do you expect cash sorting to continue, and what's driving it?  
   **A:** Yes, we expect cash sorting to continue due to factors like seasonal tailwinds, quarterly fee billings over **\$1.3 billion**, and competition from money market fund yields. We're closer to the end of this dynamic but won't declare it over without more evidence.  **[RJF_3370741_11]** 

6. **Institutional Fixed Income Brokerage**  
   **Q:** How should we think about normalization in institutional fixed income brokerage?  
   **A:** The market is fickle, but if liquidity improves and rates stabilize or decline, activity could pick up. December saw increased activity as liquidity eased. However, if rates rise, it will be a headwind.  **[RJF_3370741_10]** 

7. **Lending Spreads and Excess Liquidity**  
   **Q:** Are better lending spreads materializing, and will you grow loans?  
   **A:** Spreads have widened, but the market hasn't been robust in areas we prefer to lend. We're waiting for a resurgence in activity. We're ready to lend, but the opportunity to put on loans at previous rates hasn't presented itself yet.  **[RJF_3370741_9]** 

8. **Recruiting Environment and RA Roll-ups**  
   **Q:** How is the competitive environment for recruiting changing?  
   **A:** Recruiting hasn't slowed down, and we're now attracting larger teams of **\$20 million to \$30 million**. The biggest change is the emergence of RA roll-ups paying high prices, which we can't match. However, advisers choose us for the right reasons, not just the highest offer.  **[RJF_3370741_22]** ,  **[RJF_3370741_24]** 

9. **Use of Transition Assistance**  
   **Q:** How do you view using transition assistance and loans to advisers?  
   **A:** Everyone uses transition assistance. We've consistently not been the highest payer to ensure advisers join us because it's the right place, not for the biggest check.  **[RJF_3370741_23]** 

10. **Balance Sheet and Securities Portfolio**  
    **Q:** Will you grow the securities portfolio to lock in yields?  
    **A:** We prefer to maintain a floating rate balance sheet and not try to time rates. We take duration only to support client needs, not to speculate on rate movements. The forward curve has been unreliable, so we choose to remain flexible.  **[RJF_3370741_13]** 

be9c1a40d0b5cc576cf81ad0ba2e29e32520b50fb9e17aacb5044e803f278ff9

- **Strong securities-based loan growth**: Raymond James experienced significant growth in securities-based loans during the quarter as clients adjust to higher interest rates. The firm is **cautiously optimistic** that this trend will continue, indicating potential for increased revenue from lending activities.  **[RJF_3394143_10]**
- **Confidence in performance across interest rate environments**: Management expresses **confidence in their ability to perform well in any kind of interest rate environment** due to their diversified and complementary businesses, suggesting resilience against market fluctuations.  **[RJF_3394143_25]**
- **Effective strategies in attracting new cash**: The firm has successfully implemented initiatives offering **higher rates for new cash in their sweep programs**, leading to increased funding that is net attractive and benefits both clients and the firm—a **"win-win-win"** situation.  **[RJF_3394143_18]**

5b4cb7c082bbf7530a716f2260fd7dc696d02bc2cd388c1625cbcc5e911c6c03

1. **Capital Allocation and Share Buybacks**  
   **Q:** Will there be increased share buybacks given excess capital?  
   **A:** Management has nearly **$1.5 billion of excess capital** above their 10% target.  **[RJF_3361880_10]**  They prioritize investing in growth but are committed to offsetting dilution, about **$200 million a year**.  **[RJF_3361880_10]**  Since they didn't repurchase any shares last quarter, they plan to catch up and may buy back more shares if the price is attractive.  **[RJF_3361880_10]** 

2. **Loan Growth and Net Interest Income Outlook**  
   **Q:** How is loan growth expected to impact NII guidance?  
   **A:** They expect **modest loan growth** as demand is muted, especially on the corporate side.  **[RJF_3361880_12]**  They're optimistic about growth in securities-based loans, with repayments stabilizing and new originations starting.  **[RJF_3361880_12]**  The near-term net interest income guidance factors in this modest growth.  **[RJF_3361880_12]** 

3. **Interest Rate Sensitivity and Deposit Costs**  
   **Q:** How are deposit costs and cash sorting impacting margins?  
   **A:** The shift to higher-cost deposits, like the enhanced savings program balances costing around **5%**, has increased deposit costs.  **[RJF_3361880_16]**  This mix shift has contracted the net interest margin sequentially.  **[RJF_3361880_16]**  They believe they're closer to the end of cash sorting dynamics but say stabilization depends on interest rates stabilizing.  **[RJF_3361880_18]** 

4. **Expenses and Cost Management**  
   **Q:** How should we think about expense growth if revenues remain depressed?  
   **A:** Non-compensation expenses will continue to grow due to growth investments and costs like FDIC insurance as they put more deposits at the bank.  **[RJF_3361880_9]**  They're focused on managing controllable expenses while ensuring high support levels for advisors and clients.  **[RJF_3361880_9]**  Admin compensation grew **16%** due to growth investments and higher raises but is expected to have a reduced growth rate going forward.  **[RJF_3361880_11]** 

5. **Credit Provisions and Loan Losses**  
   **Q:** What's driving the increase in credit provisions, and how are you managing credit risk?  
   **A:** Management is proactive in adding to reserves to ensure they're well-reserved.  **[RJF_3361880_19]**  Additions this quarter were due to specific loans, trying to get ahead with additional reserves.  **[RJF_3361880_19]**  Charge-offs were flat sequentially, and they feel good about the portfolio but acknowledge that macroeconomic models can impact provisions.  **[RJF_3361880_19]** 

6. **Advisor Recruitment and Attrition**  
   **Q:** How is advisor attrition and recruitment impacting net new assets?  
   **A:** Advisor attrition remained low at about **1%**, slightly up from last year.  **[RJF_3361880_8]**  They've added significant advisor teams, including a recent addition of a bank platform with **$3 billion** in assets and 27 advisors.  **[RJF_3361880_8]**  Net new asset growth was impacted by exiting one program, costing **$4.6 billion** in assets and 60 advisors, but they expect growth to revert back as recruiting picks up.  **[RJF_3361880_13]** 

7. **Capital Markets and M&A Activity**  
   **Q:** How is the higher cost of capital affecting M&A activity?  
   **A:** The higher cost of capital is impacting deals, as pricing is slow to adjust, creating gaps between buyers and sellers.  **[RJF_3361880_21]**  Management is still seeking acquisitions that are a good cultural fit but acknowledges that pricing is challenging currently  **[RJF_3361880_10]** **[RJF_3361880_21]** .

8. **Regulatory Impacts and Basel III Rules**  
   **Q:** How will the new bank capital rules affect your business?  
   **A:** Management believes it will take a long time to reach the **$100 billion** asset threshold.  **[RJF_3361880_22]**  They have no plans to acquire another bank, and most growth comes from organic growth.  **[RJF_3361880_22]**  They're internally studying the impact of new capital rules to prepare when they eventually cross the threshold.  **[RJF_3361880_22]** 

e30d4123d33591f5f89fcdbbe65cab0e9937ba0dd4d285c94ab3dd4f615fe176

- **Strong capital base enabling shareholder returns and strategic growth initiatives**: Raymond James Financial has a robust capital position and is committed to returning capital to shareholders through **$200 million** in share repurchases next quarter, while actively exploring accretive M&A opportunities to enhance the firm's competitive positioning.  **[RJF_3370741_17]** **[RJF_3370741_24]**
- **Continued strong net new asset growth and recruiting momentum**: The firm continues to generate **strong net new assets**, positioning them at the top among peers, and expects growth to remain solid. RJF leverages its **unique value proposition**, strong financial strength, and advanced technology platform to attract advisors, despite increased competition.  **[RJF_3370741_16]** **[RJF_3370741_25]**
- **Diversified business model driving resilience and profitability across market environments**: RJF's diversified business model has enabled it to generate **over 20% pretax margins** and record earnings over the last three years in varying market environments, highlighting its resilience and ability to capitalize on opportunities across different market conditions.  **[RJF_3370741_20]**

f2613d0331083e9a08ebafe7ed1fc20ddf58ff6984acfb716437397c0d3b803c

- **Increasing loan loss provisions due to credit concerns**: RJF added significant reserves this quarter to proactively address potential issues, indicating concerns about credit quality.  **[RJF_3361880_19]**
- **Net new asset growth slowed to 5%**, below the high single-digit percentages in recent years, due to exiting a program that resulted in the loss of **$4.6 billion in assets and 60 advisors**.  **[RJF_3361880_13]**
- **Uncertainty over stabilization of interest-related revenues**: Management cannot predict when cash sorting will fully stabilize, and interest-related revenues may continue to face headwinds until interest rates stabilize.  **[RJF_3361880_18]**

bb20a17183a074ce6044b2af843991a59db5646eabd44460dd6d4d5d975e2f91

- **Regulatory scrutiny over cash disclosures and potential conflicts of interest in brokerage accounts could pose risks to Raymond James.**  **[RJF_3394143_11]**
- **Declining third-party bank sweep yields and a mix shift towards higher-cost sweep options may pressure net interest income.**  **[RJF_3394143_18]** **[RJF_3394143_23]**
- **Muted loan growth, despite strong earnings, is impacting capital ratios and could limit future net interest income growth.**  **[RJF_3394143_23]**

1c24f078ae59e4d6cb89f08bcc3e49476ad29706037f332c67da276203c4dd6a

- **Potential regulatory changes**, such as the Department of Labor's proposal, could **negatively impact the growth of insurance and annuity products** within the Private Client Group, especially if new rules withstand industry challenges.  **[RJF_3370741_12]**
- **Net interest income may face headwinds** due to ongoing client cash sorting activity and **uncertain rate environments**, potentially leading to **lower interest-sensitive earnings** in both the Private Client Group and Bank segments.  **[RJF_3370741_6]** **[RJF_3370741_21]**
- The firm **expects non-compensation expenses to increase** throughout the year as it invests in growth and ensures high service levels, which may **pressure margins and impact profitability**.  **[RJF_3370741_14]**

726af96c8d94f0cef80144322226294a44709bbef8a9e7ca3d0182f29943086c

475b7de6720eb082578f5dc8b8e4008bc977b1640f3b27957249354620a497ab

1. **Industry Cash Sweep Changes**  
   **Q:** How might industry cash sweep changes impact RJF's approach?  
   **A:** Paul Reilly emphasized that Raymond James' sweep programs are different from peers, offering rates from **25 to 300 basis points**, compared to others' **1 to 50 basis points**.  **[RJF_3394143_6]**  They provide up to **$6 million** in FDIC insurance per individual.  **[RJF_3394143_6]**  Reilly stated they don't see anything forcing them to change rates currently but will adjust if the competitive landscape changes.  **[RJF_3394143_6]** 

2. **Regulatory Scrutiny and Conflicts**  
   **Q:** Are there concerns about conflicts in adviser compensation from sweeps amid regulatory scrutiny?  
   **A:** Reilly explained that in advisory accounts, advisers receive **no different payment on cash than any other asset class**, with **no indirect incentives**.  **[RJF_3394143_9]**  The disclosure refers to limited cases in brokerage where advisers are compensated for placing clients in higher-rate accounts, not on sweeps.  **[RJF_3394143_9]**  He believes there's **no conflict**, and practices are compliant.  **[RJF_3394143_9]** 

3. **Operating Leverage Trajectory**  
   **Q:** How do you view operating leverage as you reach record levels?  
   **A:** Reilly stated they believe they can achieve operating leverage as they grow assets.  **[RJF_3394143_6]**  Strong equity markets and cash spreads have supported businesses.  **[RJF_3394143_6]**  With investment in technology, they can make services better and achieve leverage while maintaining **high levels of adviser support**.  **[RJF_3394143_6]** 

4. **Loan Growth Prospects**  
   **Q:** Will securities-based loan growth continue to fuel overall loan growth?  
   **A:** Paul Shoukry noted that the securities-based loan growth was due to a deceleration of payoffs and clients getting used to new rate levels.  **[RJF_3394143_8]**  He is **cautiously optimistic** that this trend could continue, supporting overall loan growth.  **[RJF_3394143_8]** 

5. **Net Interest Income Outlook**  
   **Q:** Can NII hold up despite potential rate cuts?  
   **A:** Shoukry expressed confidence in their ability to perform well in any interest rate environment.  **[RJF_3394143_24]**  Lower rates have previously supported M&A and fixed income business, and loan growth could improve.  **[RJF_3394143_24]**  Reilly added they have **room to adjust rates** and remain competitive.  **[RJF_3394143_24]** 

6. **Capital Allocation and Repurchases**  
   **Q:** Will you increase share repurchases given capital levels?  
   **A:** Reilly stated they haven't found suitable M&A opportunities and will return capital to shareholders more aggressively.  **[RJF_3394143_13]**  They intend to increase the pace of repurchases beyond the **$243 million** executed in the prior quarter.  **[RJF_3394143_13]** **[RJF_3394143_20]** 

7. **Recruiting Activity and Net New Assets**  
   **Q:** Can you provide more color on recruiting and net new assets?  
   **A:** Reilly mentioned that recruiting activity remains **strong**, with a backlog of large teams picking up.  **[RJF_3394143_15]**  They continue to get new advisers, contributing to net new assets.  **[RJF_3394143_15]** 

8. **Cash Sorting Stabilization**  
   **Q:** How close are we to the bottom of cash sorting?  
   **A:** Shoukry believes they are **closer to the end** of the sorting cycle.  **[RJF_3394143_26]**  Stabilization of runoff and continued growth will drive cash balance growth, but they won't declare an end until they have several quarters of data.  **[RJF_3394143_26]** 

9. **Evolution in Capturing Value**  
   **Q:** How might customer payments for services evolve over time?  
   **A:** Reilly suggested payments could become more **asset-based**, and changes might occur depending on regulatory developments.  **[RJF_3394143_25]**  He noted possibilities like performance fees but emphasized it's hard to predict.  **[RJF_3394143_25]** 

10. **Deposit Betas and Rate Cuts**  
    **Q:** How will deposit betas behave with rate cuts?  
    **A:** Shoukry said it depends on the competitive environment, but they have been generous in passing rates to clients and should have sensitivity to the downside.  **[RJF_3394143_23]**  Reilly added they have **ample room** to adjust and stay competitive.  **[RJF_3394143_23]** 

9ef4d37a509fbeb1154001e694bbb596730cf2c7dad200a9552eafad80b5ecd2

- **Strong Capital Position Enabling Growth Opportunities**: RJF has significant excess capital, with nearly **$1.5 billion** above their 10% Tier 1 leverage ratio target, and **$16 billion** in cash with third-party banks, positioning the firm to invest in growth opportunities and outperform competitors.  **[RJF_3361880_10]** ,  **[RJF_3361880_18]**
- **Increased Adviser Recruiting Activity and Strong Pipeline**: The Private Client Group is seeing a significant pickup in adviser recruiting over the last two months, with **record numbers of large teams** in the pipeline, expected to drive future asset growth.  **[RJF_3361880_3]** ,  **[RJF_3361880_13]**
- **Flexible Balance Sheet Leading to Superior Interest Income Performance**: RJF's flexible approach to balance sheet management and focus on client needs resulted in better-than-expected spread revenue, outperforming peers in net interest income due to higher yields and maintaining flexibility.  **[RJF_3361880_14]** ,  **[RJF_3361880_18]**

2d68bf10fd9d2420917938c483c9c258516d6264b1b26da3549cb53d254b9c10

- **Fixed Income brokerage revenues are under pressure** due to depository clients experiencing flat to declining deposit balances and having less cash available for investing in securities, **putting pressure on brokerage activity**.  **[RJF_3380471_23]**
- **The Capital Markets segment reported a pretax loss of $17 million**, and recovery is uncertain as **closings are difficult to predict** in the current market environment.  **[RJF_3380471_12]**
- **Loan growth has stalled**, particularly in securities-based lending (SBLs), due to clients adjusting to higher interest rates, leading to uncertainty about when demand will resume.  **[RJF_3380471_18]**

f7c147f4a628d33e81638e7100997ef2bf0afe76c3db9367d15e23d191604e8c

- **Strong investment in growth and technology to enhance advisor efficiency and productivity**: Raymond James is consistently investing in all its businesses, especially the **Private Client Group**, to enhance service levels and create more efficiencies for advisors, enabling them to spend more time with clients and drive growth.  **[RJF_3380471_22]**
- **Significant upside potential in Capital Markets margins as activity recovers**: As capital markets activity picks up, there's a lot of upside to margins in the Capital Markets segment, which could return to **mid-20% levels**, significantly improving profitability.  **[RJF_3380471_12]**
- **Optimistic outlook on loan growth and well-positioned for future demand**: Despite current muted loan demand due to higher rates, Raymond James is maintaining strong capital and funding positions to capitalize on loan growth when it resumes, expecting demand to recover as clients get comfortable with current rate levels.  **[RJF_3380471_14]**

952ebb8207e84318028de0a0a9a916e1e36cccc4e4e62258415a599b1dc51d8f

Raymond James Financial Inc (RJF)

Financials