Raymond James Financial (RJF) investor relations material

Executive summary

• Achieved record quarterly net revenues of $3.86 billion, up 13% year-over-year and 3% sequentially, with pre-tax income of $735 million, up 10% year-over-year and 1% sequentially; net income available to common shareholders was $542 million ($2.72 per diluted share), and adjusted net income was $564 million ($2.83 per diluted share), excluding $22 million in acquisition-related expenses.

• Client assets under administration totaled $1.76 trillion, with $1.04 trillion in fee-based accounts, and net new assets in the Private Client Group grew by $23.0 billion, a 5.8% annualized growth rate.

• Growth was driven by higher asset management and administrative fees, increased client assets, robust advisor recruiting, and continued investment in technology and AI, with $1.1 billion annual spend focused on enhancing advisor and client experience.

• Completed the acquisition of GreensLedge Holdings LLC during the quarter and Clark Capital Management Group after quarter-end, expanding Capital Markets and Asset Management segments.

• CEO highlighted strong investment banking pipeline, disciplined capital deployment, and ongoing technology investments.

Financial highlights

• Net income available to common shareholders was $542 million; adjusted net income was $564 million, with adjusted EPS of $2.83.

• Pre-tax margin was 19%, and adjusted pre-tax margin was 19.7%.

• Annualized return on common equity was 17.3%; adjusted return on tangible common equity was 20.9%.

• Asset management and related administrative fees grew 17% year-over-year to $2.02 billion.

• Record bank loans reached $54.8 billion, up 14% year-over-year and 3% sequentially.

Outlook and guidance

• Management expects continued growth driven by advisor recruiting, technology enhancements, and a strong investment banking pipeline, with asset management and related administrative fees projected to rise by approximately 1% in the fiscal third quarter due to an additional billing day and higher PCG assets.

• Project effective tax rate for fiscal 2026 to be 24%-25%.

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