Raymond James Financial (RJF) investor relations material

Executive summary

• Achieved record quarterly net revenues of $3.93 billion, up 16% year-over-year and 2% sequentially, with net income available to common shareholders of $595 million ($3.01 per diluted share), up 42% year-over-year; adjusted net income was $620 million ($3.14 per diluted share).

• Client assets under administration reached a record $1.92 trillion, up 17% year-over-year, with $1.15 trillion in fee-based accounts and strong net new asset inflows.

• Growth was driven by higher asset management and administrative fees, increased investment banking revenues, and strong advisor recruiting.

• Completed the acquisition of Clark Capital, adding $36 billion in assets and expanding wealth-focused solutions.

• Continued significant investments in technology, including the rollout of proprietary AI assistant Rai and an AI academy for advisors.

Financial highlights

• Net income available to common shareholders was $595 million; adjusted net income was $620 million, with record adjusted EPS of $3.14.

• Pre-tax margin was 19.1%, adjusted pre-tax margin 19.9%; annualized ROE was 18.8%, and adjusted return on tangible common equity was 23.5%.

• Private Client Group generated pre-tax income of $423 million on record net revenues of $2.84 billion, up 14% year-over-year.

• Asset Management segment posted pre-tax income of $143 million on record net revenues of $362 million, benefiting from higher AUM and Clark Capital acquisition.

• Bank segment loans reached a record $56.2 billion, up 13% year-over-year, with net revenues of $488 million and pre-tax income of $206 million, up 67%.

Outlook and guidance

• Management expects continued growth in fee-based client assets, supported by advisor recruiting and investment banking pipelines.

• Aggregate net interest income and RJBDP fees from third-party banks expected to be flat in Q4, assuming static rates and balances.

• Non-compensation expenses for the fiscal year are on track to meet the $2.3 billion target, despite additional acquisition costs.

• Forward-looking statements caution about risks from market conditions, interest rates, inflation, and integration of acquisitions.