Raymond James Financial : Earnings Supplement (rjf20250423 2q supplement)

Published: 2025-04-23 16:09:23 ET RJF

Quarterly Financial Supplement

Fiscal second quarter of 2025 results

RAYMOND JAMES FINANCIAL, INC.

TABLE OF CONTENTS

PAGE

Consolidated Statements of Income (Unaudited)

Consolidated Selected Key Metrics (Unaudited)

Segment Results

Private Client Group (Unaudited)

Capital Markets (Unaudited)

Asset Management (Unaudited)

Bank (Unaudited)

Other (Unaudited)

Bank Segment Selected Key Metrics (Unaudited)

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

Footnotes

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,

June 30,

September 30,

December 31,

March 31,

December 31,

March 31,

2024

2025

2024

2025

change

Revenues:

Asset management and related administrative fees

1,516

1,611

1,662

1,743

1,725

14 %

(1)%

2,923

3,468

19 %

Brokerage revenues:

Securities commissions

414

416

438

440

431

4 %

(2)%

797

871

9 %

Principal transactions

114

116

123

119

149

31 %

25 %

253

268

6 %

Total brokerage revenues

528

532

561

559

580

10 %

4 %

1,050

1,139

8 %

Account and service fees

335

328

332

342

321

(4)%

(6)%

654

663

1 %

Investment banking

179

183

315

325

216

21 %

(34)%

360

541

50 %

Interest income

1,049

1,057

1,073

1,027

963

(8)%

(6)%

2,102

1,990

(5)%

Other

29 %

3 %

14 %

Total revenues

3,638

3,762

4,003

4,035

3,845

6 %

(5)%

7,158

7,880

10 %

Interest expense

(520)

(534)

(541)

(498)

(442)

(15)%

(11)%

(1,027)

(940)

(8)%

Net revenues

3,118

3,228

3,462

3,537

3,403

9 %

(4)%

6,131

6,940

13 %

Non-interest expenses:

Compensation, commissions and benefits

2,043

2,090

2,159

2,272

2,204

8 %

(3)%

3,964

4,476

13 %

Non-compensation expenses:

Communications and information processing

165

166

181

178

184

12 %

3 %

315

362

15 %

Occupancy and equipment

1 %

145

147

1 %

Business development

7 %

(6)%

121

132

9 %

Investment sub-advisory fees

23 %

2 %

107

27 %

Professional fees

3 %

- %

5 %

Bank loan provision/(benefit) for credit losses

(10)

(24)%

(52)%

Other

105

103

110

102

46 %

(7)%

165

212

28 %

Total non-compensation expenses

466

494

543

516

528

13 %

2 %

928

1,044

13 %

Total non-interest expenses

2,509

2,584

2,702

2,788

2,732

9 %

(2)%

4,892

5,520

13 %

Pre-tax income

609

644

760

749

671

10 %

(10)%

1,239

1,420

15 %

Provision for income taxes

133

152

158

149

176

32 %

18 %

265

325

23 %

Net income

476

492

602

600

495

4 %

(18)%

974

1,095

12 %

Preferred stock dividends

- %

100 %

- %

Net income available to common shareholders

474

491

601

599

493

4 %

(18)%

971

1,092

12 %

Earnings per common share - basic (1)

2.27

2.37

2.93

2.94

2.41

6 %

(18)%

4.65

5.34

15 %

Earnings per common share - diluted (1)

2.22

2.31

2.86

2.36

6 %

(17)%

4.54

5.22

15 %

Weighted-average common shares outstanding - basic

208.3

206.8

204.7

203.7

204.3

(2)%

- %

208.4

204.0

(2)%

Weighted-average common and common equivalent

213.4

212.3

210.1

209.2

208.7

(2)%

- %

213.5

208.9

(2)%

shares outstanding - diluted

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

RAYMOND JAMES FINANCIAL, INC.

Consolidated Selected Key Metrics (Unaudited)

As of

% change from

$ in millions, except per share amounts

March 31,

June 30,

September 30,

December 31,

March 31,

December 31,

2024

2025

2024

Total assets

81,232

80,628

82,992

82,282

83,132

2 %

1 %

Total common equity attributable to Raymond James Financial,

10,905

11,118

11,594

11,844

12,133

11 %

2 %

Inc.

Book value per share (2)

52.60

54.08

57.03

57.89

59.74

14 %

3 %

Tangible book value per share (2) (3)

44.11

45.57

48.43

49.49

51.29

16 %

4 %

Capital ratios:

Tier 1 leverage

12.3 %

12.7 %

12.8 %

13.0 %

13.3 % (4)

Tier 1 capital

21.9 %

22.2 %

22.8 %

23.7 %

23.5 % (4)

Common equity tier 1

21.8 %

22.0 %

22.6 %

23.5 %

23.3 % (4)

Total capital

23.3 %

23.6 %

24.1 %

25.0 %

24.8 % (4)

Three months ended

% change from

Six months ended

$ in millions

March 31,

June 30,

September 30,

December 31,

March 31, March 31,

December 31,

March 31,

2024

2025

2024

2025

change

Adjusted pre-tax income (3)

635

667

785

769

690

9 %

(10)%

1,288

1,459

13 %

Adjusted net income available to common

494

508

621

614

507

3 %

(17)%

1,008

1,121

11 %

shareholders (3)

Adjusted earnings per common share - basic (1) (3)

2.37

2.45

3.03

3.01

2.48

5 %

(18)%

4.83

5.49

14 %

Adjusted earnings per common share - diluted (1) (3)

2.31

2.39

2.95

2.93

2.42

5 %

(17)%

4.71

5.36

14 %

Return on common equity (5)

17.5 %

17.8 %

21.2 %

20.4 %

16.4 %

18.3 %

18.4 %

Adjusted return on common equity (3) (5)

18.3 %

18.4 %

21.9 %

20.9 %

16.9 %

19.0 %

18.9 %

Adjusted return on tangible common equity (3) (5)

21.8 %

21.9 %

25.8 %

24.6 %

19.7 %

22.8 %

22.1 %

Pre-tax margin (6)

19.5 %

20.0 %

22.0 %

21.2 %

19.7 %

20.2 %

20.5 %

Adjusted pre-tax margin (3) (6)

20.4 %

20.7 %

22.7 %

21.7 %

20.3 %

21.0 %

Total compensation ratio (7)

65.5 %

64.7 %

62.4 %

64.2 %

64.8 %

64.7 %

64.5 %

Adjusted total compensation ratio (3) (7)

65.2 %

64.4 %

62.1 %

64.0 %

64.5 %

64.3 %

Effective tax rate

21.8 %

23.6 %

20.8 %

19.9 %

26.2 %

21.4 %

22.9 %

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

RAYMOND JAMES FINANCIAL, INC.

Consolidated Selected Key Metrics (Unaudited)

As of

% change from

Client asset metrics ($ in billions)

March 31,

June 30,

September 30,

December 31,

March 31,

December 31,

2024

2025

2024

Client assets under administration

1,449.1

1,476.2

1,571.1

1,557.5

1,535.9

6 %

(1)%

Private Client Group assets under administration

1,388.8

1,415.7

1,507.0

1,491.8

1,475.5

6 %

(1)%

Private Client Group assets in fee-based accounts

798.8

820.6

875.2

876.6

872.8

9 %

- %

Financial assets under management

226.8

229.3

244.8

243.9

245.0

8 %

- %

Three months ended

Six months ended

Net new assets metrics (8) ($ in millions)

March 31,

June 30,

September 30,

December 31,

March 31,

2024

2025

2024

2025

Domestic Private Client Group net new assets

9,648

16,517

12,969

14,020

8,830

31,223

22,850

Domestic Private Client Group net new assets growth -

3.2 %

5.2 %

4.0 %

2.6 %

5.7 %

3.3 %

annualized

Clients' domestic cash sweep and Enhanced Savings

As of

% change from

March 31,

June 30,

September 30,

December 31,

March 31,

December 31,

Program balances ($ in millions)

2024

2025

2024

Raymond James Bank Deposit Program ("RJBDP"): (9)

Bank segment (9)

23,405

23,371

23,978

23,946

25,783

10 %

8 %

Third-party banks

18,234

17,325

18,226

20,341

16,813

(8)%

(17)%

Subtotal RJBDP

41,639

40,696

42,204

44,287

42,596

2 %

(4)%

Client Interest Program

1,715

1,713

1,653

1,664

1,656

(3)%

- %

Total clients' domestic cash sweep balances

43,354

42,409

43,857

45,951

44,252

2 %

(4)%

Enhanced Savings Program ("ESP") (10)

14,863

14,039

14,018

13,785

13,507

(9)%

(2)%

Total clients' domestic cash sweep and ESP balances

58,217

56,448

57,875

59,736

57,759

(1)%

(3)%

Three months ended

% change from

Six months ended

Net interest income and RJBDP fees

March 31,

June 30,

September 30,

December 31,

March 31, March 31,

December 31,

March 31,

($ in millions)

2024

2025

2024

2025

change

Net interest income and RJBDP fees (third-party

689

672

678

673

651

(6)%

(3)%

1,387

1,324

(5)%

banks)

Average yield on RJBDP - third-party banks (11)

3.59 %

3.41 %

3.34 %

3.12 %

3.00 %

3.62 %

3.06 %

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

RAYMOND JAMES FINANCIAL, INC.

Segment Results - Private Client Group (Unaudited)

Three months ended

% change from

Six months ended

$ in millions

March 31,

June 30,

September 30,

December 31,

March 31,

December 31,

March 31,

2024

2025

2024

2025

change

Revenues:

Asset management and related administrative fees

1,283

1,364

1,408

1,476

1,457

14 %

(1)%

2,474

2,933

19 %

Brokerage revenues:

Mutual and other fund products

141

142

148

152

8 %

- %

277

304

10 %

Insurance and annuity products

127

130

137

118

117

(8)%

(1)%

252

235

(7)%

Equities, ETFs, and fixed income products

139

137

148

163

150

8 %

(8)%

260

313

20 %

Total brokerage revenues

407

409

433

419

3 %

(3)%

789

852

8 %

Account and service fees:

Mutual fund and annuity service fees

115

118

122

126

130

13 %

3 %

221

256

16 %

RJBDP fees: (9)

Bank segment

206

198

197

187

183

(11)%

(2)%

429

370

(14)%

Third-party banks

160

149

146

144

130

(19)%

(10)%

312

274

(12)%

Client account and other fees

3 %

(6)%

129

136

5 %

Total account and service fees

545

531

534

527

509

(7)%

(3)%

1,091

1,036

(5)%

Investment banking

13 %

(11)%

Interest income (12)

122

121

119

126

110

(10)%

(13)%

240

236

(2)%

All other

- %

20 %

10 %

Total revenues

2,371

2,448

2,507

2,575

2,510

6 %

(3)%

4,623

5,085

10 %

Interest expense

(30)

(32)

(31)

(27)

(24)

(20)%

(11)%

(56)

(51)

(9)%

Net revenues

2,341

2,416

2,476

2,548

2,486

6 %

(2)%

4,567

5,034

10 %

Non-interest expenses:

Financial advisor compensation and benefits

1,273

1,327

1,364

1,413

1,411

11 %

- %

2,463

2,824

15 %

Administrative compensation and benefits

391

389

387

418

388

(1)%

(7)%

770

806

5 %

Total compensation, commissions and benefits

1,664

1,716

1,751

1,831

1,799

8 %

(2)%

3,233

3,630

12 %

Non-compensation expenses

233

259

264

255

256

10 %

- %

451

511

13 %

Total non-interest expenses

1,897

1,975

2,015

2,086

2,055

8 %

(1)%

3,684

4,141

12 %

Pre-tax income

444

441

461

462

431

(3)%

(7)%

883

893

1 %

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

RAYMOND JAMES FINANCIAL, INC.

Segment Results - Capital Markets (Unaudited)

Three months ended

% change from

Six months ended

$ in millions

March 31,

June 30,

September 30,

December 31,

March 31,

December 31,

March 31,

2024

2025

2024

2025

change

Revenues:

Brokerage revenues:

Fixed income

116

32 %

36 %

190

201

6 %

Equity

32 %

10 %

19 %

Total brokerage revenues

122

121

127

126

161

32 %

28 %

262

287

10 %

Investment banking:

Merger & acquisition and advisory

107

205

226

129

21 %

(43)%

225

355

58 %

Equity underwriting

35 %

(11)%

35 %

Debt underwriting

15 %

(16)%

103

54 %

Total investment banking

171

173

306

317

207

21 %

(35)%

341

524

54 %

Interest income

8 %

(3)%

16 %

Affordable housing investments business revenues

(9)%

(31)%

9 %

All other

- %

(20)%

13 %

Total revenues

345

360

510

506

420

22 %

(17)%

705

926

31 %

Interest expense

(24)

(30)

(27)

(26)

(24)

- %

(8)%

(46)

(50)

9 %

Net revenues

321

330

483

480

396

23 %

(18)%

659

876

33 %

Non-interest expenses:

Compensation, commissions and benefits

240

243

281

301

262

9 %

(13)%

478

563

18 %

Non-compensation expenses

101

107

105

- %

(7)%

195

203

4 %

Total non-interest expenses

338

344

388

406

360

7 %

(11)%

673

766

14 %

Pre-tax income/(loss)

(17)

(14)

(51)%

(14)

110

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

RAYMOND JAMES FINANCIAL, INC.

Segment Results - Asset Management (Unaudited)

Three months ended

% change from

Six months ended

$ in millions

March 31,

June 30,

September 30,

December 31,

March 31,

December 31,

March 31,

2024

2025

2024

2025

change

Revenues:

Asset management and related administrative fees:

Managed programs

163

171

176

189

187

15 %

(1)%

313

376

20 %

Administration and other

15 %

(2)%

153

184

20 %

Total asset management and related administrative

242

254

263

282

278

15 %

(1)%

466

560

20 %

fees

Account and service fees

20 %

- %

9 %

All other

- %

(17)%

10 %

Net revenues

252

265

275

294

289

15 %

(2)%

487

583

20 %

Non-interest expenses:

Compensation, commissions and benefits

(2)%

111

115

4 %

Non-compensation expenses

103

111

18 %

- %

183

222

21 %

Total non-interest expenses

152

153

159

169

168

11 %

(1)%

294

337

15 %

Pre-tax income

100

112

116

125

121

21 %

(3)%

193

246

27 %

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

RAYMOND JAMES FINANCIAL, INC.

Segment Results - Bank (Unaudited)

Three months ended

% change from

Six months ended

$ in millions

March 31,

June 30,

September 30,

December 31,

March 31,

December 31,

March 31,

2024

2025

2024

2025

change

Revenues:

Interest income

868

867

887

847

802

(8)%

(5)%

1,740

1,649

(5)%

Interest expense

(455)

(461)

(476)

(433)

(383)

(16)%

(12)%

(901)

(816)

(9)%

Net interest income

413

406

411

414

419

1 %

839

833

(1)%

All other

36 %

- %

Net revenues

424

418

433

425

434

2 %

865

859

(1)%

Non-interest expenses:

Compensation and benefits

(6)%

(2)%

- %

Non-compensation expenses:

Bank loan provision/(benefit) for credit losses

(10)

(24)%

(52)%

RJBDP fees to Private Client Group (9)

206

198

197

187

183

(11)%

(2)%

429

370

(14)%

All other

(1)%

145

147

1 %

Total non-compensation expenses

301

258

291

261

272

(10)%

4 %

607

533

(12)%

Total non-interest expenses

349

303

335

307

317

(9)%

3 %

698

624

(11)%

Pre-tax income

115

118

117

56 %

(1)%

167

235

41 %

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

RAYMOND JAMES FINANCIAL, INC.

Segment Results - Other (13) (Unaudited)

Three months ended

% change from

Six months ended

$ in millions

March 31,

June 30,

September 30,

December 31,

March 31,

December 31,

March 31,

2024

2025

2024

2025

change

Revenues:

Interest income (12)

(23)%

- %

(27)%

All other

(2)

33 %

Total revenues

(10)%

3 %

(19)%

Interest expense

(25)

- %

(50)

- %

Net revenues

(24)%

8 %

(42)%

Non-interest expenses:

Compensation and benefits

25 %

11 %

55 %

All other

(22)

17 %

(16)

Total non-interest expenses

370 %

12 %

170 %

Pre-tax income/(loss)

(10)

(30)

(34)

(13)%

(64)

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

Disclaimer

Raymond James Financial Inc. published this content on April 23, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 23, 2025 at 20:08 UTC.