rjf-20240331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark one)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
			THE SECURITIES EXCHANGE ACT OF 1934
			For the quarterly period ended March 31, 2024


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
			THE SECURITIES EXCHANGE ACT OF 1934


For the transition period from						to

Commission File Number: 1-9109

RAYMOND JAMES FINANCIAL, INC.

(Exact name of registrant as specified in its charter)


Florida						59-1517485
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

880 Carillon Parkway, St. Petersburg, Florida 33716

(Address of principal executive offices) (Zip Code)

(727) 567-1000

(Registrant’s telephone number, including area code)

None

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Exchange Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $.01 par value	RJF	New York Stock Exchange
Depositary Shares, Each Representing a 1/40th Interest in a Share of 6.375% Fixed-to-Floating Rate Series B Non-Cumulative Perpetual Preferred Stock	RJF PrB	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or such shorter period that the registrant was required to submit such files). Yes x No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	x	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☒

Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date.

207,276,768 shares of common stock as of May 3, 2024

RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES


INDEX
		PAGE
PART I	FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)	3
	Condensed Consolidated Statements of Financial Condition (Unaudited)	3
	Condensed Consolidated Statements of Income and Comprehensive Income (Unaudited)	4
	Condensed Consolidated Statements of Changes in Shareholders’ Equity (Unaudited)	5
	Condensed Consolidated Statements of Cash Flows (Unaudited)	6
	Notes to Condensed Consolidated Financial Statements (Unaudited)
	Note 1 - Organization and basis of presentation	8
	Note 2 - Update of significant accounting policies	9

	Note 3 - Fair value	10
	Note 4 - Available-for-sale securities	16
	Note 5 - Derivative assets and derivative liabilities	19
	Note 6 - Collateralized agreements and financings	21
	Note 7 - Bank loans, net	23
	Note 8 - Loans to financial advisors, net	30
	Note 9 - Variable interest entities	30
	Note 10 - Goodwill and identifiable intangible assets, net	31
	Note 11 - Other assets	32
	Note 12 - Leases	32
	Note 13 - Bank deposits	33
	Note 14 - Other borrowings	34


	Note 15 - Income taxes	35
	Note 16 - Commitments, contingencies and guarantees	35
	Note 17 - Shareholders’ equity	38
	Note 18 - Revenues	41
	Note 19 - Interest income and interest expense	45
	Note 20 - Share-based compensation	45
	Note 21 - Regulatory capital requirements	46
	Note 22 - Earnings per share	48
	Note 23 - Segment information	49
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	51
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	92
Item 4.	Controls and Procedures	92
PART II	OTHER INFORMATION
Item 1.	Legal Proceedings	93
Item 1A.	Risk Factors	93
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	93
Item 3.	Defaults Upon Senior Securities	93
Item 4.	Mine Safety Disclosures	93
Item 5.	Other Information	94
Item 6.	Exhibits	94
	Signatures	95

Index

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Unaudited)


$ in millions, except per share amounts	March 31, 2024		September 30, 2023
Assets:
Cash and cash equivalents	$	10,001	$	9,313
Assets segregated for regulatory purposes and restricted cash	3,705		3,235
Collateralized agreements	727		418
Financial instruments, at fair value:
Trading assets ($1,257 and $1,062 pledged as collateral)	1,434		1,187
Available-for-sale securities ($20 and $22 pledged as collateral)	9,031		9,181
Derivative assets	206		265
Other investments ($6 and $7 pledged as collateral)	306		306
Brokerage client receivables, net	2,782		2,525
Other receivables, net	1,999		1,608
Bank loans, net	44,099		43,775
Loans to financial advisors, net	1,190		1,136
Deferred income taxes, net	656		711
Goodwill and identifiable intangible assets, net	1,894		1,907
Other assets	3,202		2,793
Total assets	$	81,232	$	78,360

Liabilities and shareholders’ equity:
Bank deposits	$	54,843	$	54,199
Collateralized financings	955		337
Financial instrument liabilities, at fair value:
Trading liabilities	904		716
Derivative liabilities	365		490
Brokerage client payables	6,038		5,447
Accrued compensation, commissions and benefits	1,757		1,914
Other payables	2,053		1,931
Other borrowings	1,299		1,100
Senior notes payable	2,039		2,039
Total liabilities	70,253		68,173
Commitments and contingencies (see Note 16)
Shareholders’ equity
Preferred stock	79		79
Common stock; $.01 par value; 650,000,000 shares authorized; 249,799,231 shares issued and 207,318,494 shares outstanding as of March 31, 2024; 248,728,805 shares issued and 208,769,095 shares outstanding as of September 30, 2023	2		2
Additional paid-in capital	3,186		3,143
Retained earnings	10,988		10,213
Treasury stock, at cost; 42,480,737 and 39,959,710 common shares as of March 31, 2024 and September 30, 2023, respectively	(2,547)		(2,252)
Accumulated other comprehensive loss	(724)		(971)
Total equity attributable to Raymond James Financial, Inc.	10,984		10,214
Noncontrolling interests	(5)		(27)
Total shareholders’ equity	10,979		10,187
Total liabilities and shareholders’ equity	$	81,232	$	78,360

See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).

Index

RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(Unaudited)


	Three months ended March 31,				Six months ended March 31,
in millions, except per share amounts	2024		2023		2024		2023
Revenues:
Asset management and related administrative fees	$	1,516	$	1,302	$	2,923	$	2,544
Brokerage revenues:
Securities commissions	414		369		797		721
Principal transactions	114		127		253		259
Total brokerage revenues	528		496		1,050		980
Account and service fees	335		258		654		547
Investment banking	179		154		360		295
Interest income	1,049		915		2,102		1,742
Other	31		32		69		76
Total revenues	3,638		3,157		7,158		6,184
Interest expense	(520)		(284)		(1,027)		(525)
Net revenues	3,118		2,873		6,131		5,659
Non-interest expenses:
Compensation, commissions and benefits	2,043		1,820		3,964		3,556
Non-compensation expenses:
Communications and information processing	165		153		315		292
Occupancy and equipment	73		68		145		134
Business development	60		54		121		110
Investment sub-advisory fees	44		36		84		70
Professional fees	33		38		65		70
Bank loan provision for credit losses	21		28		33		42


Other	70		119		165		176
Total non-compensation expenses	466		496		928		894
Total non-interest expenses	2,509		2,316		4,892		4,450
Pre-tax income	609		557		1,239		1,209
Provision for income taxes	133		130		265		273
Net income	476		427		974		936
Preferred stock dividends	2		2		3		4
Net income available to common shareholders	$	474	$	425	$	971	$	932

Earnings per common share – basic	$	2.27	$	1.97	$	4.65	$	4.33
Earnings per common share – diluted	$	2.22	$	1.93	$	4.54	$	4.23
Weighted-average common shares outstanding – basic	208.3		214.3		208.4		214.5
Weighted-average common and common equivalent shares outstanding – diluted	213.4		219.2		213.5		219.7

Net income	$	476	$	427	$	974	$	936
Other comprehensive income/(loss), net of tax:
Available-for-sale securities	(26)		97		244		144
Currency translations, net of the impact of net investment hedges	(11)		7		18		53
Cash flow hedges	6		(11)		(15)		(13)
Total other comprehensive income/(loss), net of tax	(31)		93		247		184
Total comprehensive income	$	445	$	520	$	1,221	$	1,120

See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).

Index

RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

(Unaudited)


	Three months ended March 31,				Six months ended March 31,
$ in millions, except per share amounts	2024		2023		2024		2023
Preferred stock:
Balance beginning of period	$	79	$	120	$	79	$	120

Share issuances	—		—		—		—

Balance end of period	79		120		79		120

Common stock, par value $.01 per share:
Balance beginning of period	2		2		2		2
Share issuances	—		—		—		—
Balance end of period	2		2		2		2

Additional paid-in capital:
Balance beginning of period	3,158		2,975		3,143		2,987


Employee stock purchases	14		15		22		22
Distributions due to vesting of restricted stock units and exercise of stock options, net of forfeitures	(41)		(11)		(123)		(110)
Share-based compensation amortization	55		56		144		136
Balance end of period	3,186		3,035		3,186		3,035

Retained earnings:
Balance beginning of period	10,609		9,254		10,213		8,843
Net income attributable to Raymond James Financial, Inc.	476		427		974		936
Common and preferred stock cash dividends declared (see Note 17)	(97)		(91)		(199)		(189)



Balance end of period	10,988		9,590		10,988		9,590

Treasury stock:
Balance beginning of period	(2,365)		(1,604)		(2,252)		(1,512)
Purchases/surrenders	(213)		(358)		(372)		(505)
Reissuances due to vesting of restricted stock units and exercise of stock options	31		8		77		63
Balance end of period	(2,547)		(1,954)		(2,547)		(1,954)

Accumulated other comprehensive loss:
Balance beginning of period	(693)		(891)		(971)		(982)
Other comprehensive income/(loss), net of tax	(31)		93		247		184

Balance end of period	(724)		(798)		(724)		(798)
Total equity attributable to Raymond James Financial, Inc.	$	10,984	$	9,995	$	10,984	$	9,995

Noncontrolling interests:
Balance beginning of period	$	(9)	$	(26)	$	(27)	$	(26)

Consolidations and other	4		—		22		—



Balance end of period	(5)		(26)		(5)		(26)
Total shareholders’ equity	$	10,979	$	9,969	$	10,979	$	9,969

See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).

Index

RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)


	Six months ended March 31,
$ in millions	2024		2023
Cash flows from operating activities:
Net income	$	974	$	936
Adjustments to reconcile net income to net cash provided by/(used in) operating activities:
Depreciation and amortization	87		81
Deferred income taxes, net	(26)		(4)
Premium and discount amortization on available-for-sale securities and bank loans and net unrealized gain/loss on other investments	(17)