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 June 30, 2024

or

☐	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.

205,943,440 shares of common stock as of August 2, 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	49
	Note 23 - Segment information	50
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	52
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	97
Item 4.	Controls and Procedures	97
PART II	OTHER INFORMATION
Item 1.	Legal Proceedings	98
Item 1A.	Risk Factors	98
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	98
Item 3.	Defaults Upon Senior Securities	98
Item 4.	Mine Safety Disclosures	99
Item 5.	Other Information	99
Item 6.	Exhibits	99
	Signatures	100

2

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	June 30, 2024		September 30, 2023
Assets:
Cash and cash equivalents	$	9,095	$	9,313
Assets segregated for regulatory purposes and restricted cash	3,641		3,235
Collateralized agreements	570		418
Financial instruments, at fair value:
Trading assets ($1,200 and $1,062 pledged as collateral)	1,472		1,187
Available-for-sale securities ($11 and $22 pledged as collateral)	8,530		9,181
Derivative assets	85		265
Other investments ($6 and $7 pledged as collateral)	333		306
Brokerage client receivables, net	2,798		2,525
Other receivables, net	1,933		1,608
Bank loans, net	45,149		43,775
Loans to financial advisors, net	1,258		1,136
Deferred income taxes, net	658		711
Goodwill and identifiable intangible assets, net	1,884		1,907
Other assets	3,222		2,793
Total assets	$	80,628	$	78,360
Liabilities and shareholders’ equity:
Bank deposits	$	54,401	$	54,199
Collateralized financings	1,154		337
Financial instrument liabilities, at fair value:
Trading liabilities	891		716
Derivative liabilities	354		490
Brokerage client payables	5,489		5,447
Accrued compensation, commissions and benefits	1,977		1,914
Other payables	2,084		1,931
Other borrowings	1,049		1,100
Senior notes payable	2,039		2,039
Total liabilities	69,438		68,173
Commitments and contingencies (see Note 16)
Shareholders’ equity
Preferred stock	79		79
Common stock; $.01 par value; 650,000,000 shares authorized; 249,886,619 shares issued and 205,573,733 shares outstanding as of June 30, 2024; 248,728,805 shares issued and 208,769,095 shares outstanding as of September 30, 2023	2		2
Additional paid-in capital	3,221		3,143
Retained earnings	11,385		10,213
Treasury stock, at cost; 44,312,886 and 39,959,710 common shares as of June 30, 2024 and September 30, 2023, respectively	(2,773)		(2,252)
Accumulated other comprehensive loss	(717)		(971)
Total equity attributable to Raymond James Financial, Inc.	11,197		10,214
Noncontrolling interests	(7)		(27)
Total shareholders’ equity	11,190		10,187
Total liabilities and shareholders’ equity	$	80,628	$	78,360

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

3

RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(Unaudited)

	Three months ended June 30,				Nine months ended June 30,
in millions, except per share amounts	2024		2023		2024		2023
Revenues:
Asset management and related administrative fees	$	1,611	$	1,373	$	4,534	$	3,917
Brokerage revenues:
Securities commissions	416		356		1,213		1,077
Principal transactions	116		105		369		364
Total brokerage revenues	532		461		1,582		1,441
Account and service fees	328		264		982		811
Investment banking	183		151		543		446
Interest income	1,057		987		3,159		2,729
Other	51		57		120		133
Total revenues	3,762		3,293		10,920		9,477
Interest expense	(534)		(386)		(1,561)		(911)
Net revenues	3,228		2,907		9,359		8,566
Non-interest expenses:
Compensation, commissions and benefits	2,090		1,851		6,054		5,407
Non-compensation expenses:
Communications and information processing	166		149		481		441
Occupancy and equipment	75		68		220		202
Business development	72		66		193		176
Investment sub-advisory fees	48		40		132		110
Professional fees	38		35		103		105
Bank loan provision/(benefit) for credit losses	(10)		54		23		96
Other	105		158		270		334
Total non-compensation expenses	494		570		1,422		1,464
Total non-interest expenses	2,584		2,421		7,476		6,871
Pre-tax income	644		486		1,883		1,695
Provision for income taxes	152		117		417		390
Net income	492		369		1,466		1,305
Preferred stock dividends	1		—		4		4
Net income available to common shareholders	$	491	$	369	$	1,462	$	1,301
Earnings per common share – basic	$	2.37	$	1.75	$	7.02	$	6.09
Earnings per common share – diluted	$	2.31	$	1.71	$	6.85	$	5.95
Weighted-average common shares outstanding – basic	206.8		210.1		207.9		213.0
Weighted-average common and common equivalent shares outstanding – diluted	212.3		214.8		213.1		218.0
Net income	$	492	$	369	$	1,466	$	1,305
Other comprehensive income/(loss), net of tax:
Available-for-sale securities	11		(76)		255		68
Currency translations, net of the impact of net investment hedges	(2)		20		16		73
Cash flow hedges	(2)		12		(17)		(1)
Total other comprehensive income/(loss), net of tax	7		(44)		254		140
Total comprehensive income	$	499	$	325	$	1,720	$	1,445

    

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

4

RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

(Unaudited)

	Three months ended June 30,				Nine months ended June 30,
$ in millions, except per share amounts	2024		2023		2024		2023
Preferred stock:
Balance beginning of period	$	79	$	120	$	79	$	120
Redemption of preferred stock	—		(41)		—		(41)
Balance end of period	79		79		79		79
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	3,186		3,035		3,143		2,987
Employee stock purchases	10		13		32		35
Distributions due to vesting of restricted stock units and exercise of stock options, net of forfeitures	(27)		—		(150)		(110)
Share-based compensation amortization	52		51		196		187
Balance end of period	3,221		3,099		3,221		3,099
Retained earnings:
Balance beginning of period	10,988		9,590		10,213		8,843
Net income attributable to Raymond James Financial, Inc.	492		369		1,466		1,305
Common and preferred stock cash dividends declared (see Note 17)	(95)		(89)		(294)		(278)
Balance end of period	11,385		9,870		11,385		9,870
Treasury stock:
Balance beginning of period	(2,547)		(1,954)		(2,252)		(1,512)
Purchases	(246)		(305)		(618)		(810)
Reissuances due to vesting of restricted stock units and exercise of stock options	20		—		97		63
Balance end of period	(2,773)		(2,259)		(2,773)		(2,259)
Accumulated other comprehensive income/(loss):
Balance beginning of period	(724)		(798)		(971)		(982)
Other comprehensive income/(loss), net of tax	7		(44)		254		140
Balance end of period	(717)		(842)		(717)		(842)
Total equity attributable to Raymond James Financial, Inc.	$	11,197	$	9,949	$	11,197	$	9,949
Noncontrolling interests:
Balance beginning of period	$	(5)	$	(26)	$	(27)	$	(26)
Net loss attributable to noncontrolling interests	—		(1)		—		(1)
Other net changes in noncontrolling interests	(2)		—		20		—
Balance end of period	(7)		(27)		(7)		(27)
Total shareholders’ equity	$	11,190	$	9,922	$	11,190	$	9,922

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

5

RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Nine months ended June 30,
$ in millions	2024		2023
Cash flows from operating activities:
Net income	$	1,466	$	1,305
Adjustments to reconcile net income to net cash provided by/(used in) operating activities:
Depreciation and amortization	132		123