RAYMOND JAMES FINANCIAL INC

For the period ended Dec 31, 2023. Filed Feb 7, 2024.

About this filing

A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Dec 31, 2023 · Filed Feb 7, 2024

RJF$162.81-1.2%Stored close · as of Nov 6, 2026

See the whole filing, with its images and exhibits

Contents

Item 1. Financial Statements (Unaudited)

ITEM 1. FINANCIAL STATEMENTS

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

$ in millions, except per share amounts	December 31, 2023	September 30, 2023
Assets:
Cash and cash equivalents	$10,206	$9,313
Assets segregated for regulatory purposes and restricted cash	3,731	3,235
Collateralized agreements	454	418
Financial instruments, at fair value:
Trading assets ($1,019 and $1,062 pledged as collateral)	1,103	1,187
Available-for-sale securities ($20 and $22 pledged as collateral)	9,198	9,181
Derivative assets	195	265
Other investments ($7 and $7 pledged as collateral)	310	306
Brokerage client receivables, net	2,382	2,525
Other receivables, net	1,580	1,608
Bank loans, net	44,182	43,775
Loans to financial advisors, net	1,184	1,136
Deferred income taxes, net	637	711
Goodwill and identifiable intangible assets, net	1,908	1,907
Other assets	3,060	2,793
Total assets	$80,130	$78,360
Liabilities and shareholders’ equity:
Bank deposits	$55,393	$54,199
Collateralized financings	516	337
Financial instrument liabilities, at fair value:
Trading liabilities	794	716
Derivative liabilities	310	490
Brokerage client payables	5,793	5,447
Accrued compensation, commissions and benefits	1,496	1,914
Other payables	1,909	1,931
Other borrowings	1,099	1,100
Senior notes payable	2,039	2,039
Total liabilities	69,349	68,173
Commitments and contingencies (see Note 15)
Shareholders’ equity
Preferred stock	79	79
Common stock; $.01 par value; 650,000,000 shares authorized; 249,682,751 shares issued and 208,665,962 shares outstanding as of December 31, 2023; 248,728,805 shares issued and 208,769,095 shares outstanding as of September 30, 2023	2	2
Additional paid-in capital	3,158	3,143
Retained earnings	10,609	10,213
Treasury stock, at cost; 41,016,789 and 39,959,710 common shares as of December 31, 2023 and September 30, 2023, respectively	(2,365)	(2,252)
Accumulated other comprehensive loss	(693)	(971)
Total equity attributable to Raymond James Financial, Inc.	10,790	10,214
Noncontrolling interests	(9)	(27)
Total shareholders’ equity	10,781	10,187
Total liabilities and shareholders’ equity	$80,130	$78,360

Index

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

	Three months ended December 31,
in millions, except per share amounts	2023	2022
Revenues:
Asset management and related administrative fees	$1,407	$1,242
Brokerage revenues:
Securities commissions	383	352
Principal transactions	139	132
Total brokerage revenues	522	484
Account and service fees	319	289
Investment banking	181	141
Interest income	1,053	827
Other	38	44
Total revenues	3,520	3,027
Interest expense	(507)	(241)
Net revenues	3,013	2,786
Non-interest expenses:
Compensation, commissions and benefits	1,921	1,736
Non-compensation expenses:
Communications and information processing	150	139
Occupancy and equipment	72	66
Business development	61	56
Investment sub-advisory fees	40	34
Professional fees	32	32
Bank loan provision for credit losses	12	14
Other	95	57
Total non-compensation expenses	462	398
Total non-interest expenses	2,383	2,134
Pre-tax income	630	652
Provision for income taxes	132	143
Net income	498	509
Preferred stock dividends	1	2
Net income available to common shareholders	$497	$507
Earnings per common share – basic	$2.38	$2.36
Earnings per common share – diluted	$2.32	$2.30
Weighted-average common shares outstanding – basic	208.6	214.7
Weighted-average common and common equivalent shares outstanding – diluted	213.8	220.4
Net income	$498	$509
Other comprehensive income/(loss), net of tax:
Available-for-sale securities	270	47
Currency translations, net of the impact of net investment hedges	29	46
Cash flow hedges	(21)	(2)
Total other comprehensive income, net of tax	278	91
Total comprehensive income	$776	$600

Index

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

	Three months ended December 31,
$ in millions, except per share amounts	2023	2022
Preferred stock:
Balance beginning of period	$79	$120
Share issuances	—	—
Balance end of period	79	120
Common stock, par value $.01 per share:
Balance beginning of period	2	2
Share issuances	—	—
Balance end of period	2	2
Additional paid-in capital:
Balance beginning of period	3,143	2,987
Employee stock purchases	8	7
Distributions due to vesting of restricted stock units and exercise of stock options, net of forfeitures	(82)	(99)
Share-based compensation amortization	89	80
Balance end of period	3,158	2,975
Retained earnings:
Balance beginning of period	10,213	8,843
Net income attributable to Raymond James Financial, Inc.	498	509
Common and preferred stock cash dividends declared (see Note 16)	(102)	(98)
Balance end of period	10,609	9,254
Treasury stock:
Balance beginning of period	(2,252)	(1,512)
Purchases/surrenders	(159)	(147)
Reissuances due to vesting of restricted stock units and exercise of stock options	46	55
Balance end of period	(2,365)	(1,604)
Accumulated other comprehensive loss:
Balance beginning of period	(971)	(982)
Other comprehensive income, net of tax	278	91
Balance end of period	(693)	(891)
Total equity attributable to Raymond James Financial, Inc.	$10,790	$9,856
Noncontrolling interests:
Balance beginning of period	$(27)	$(26)
Consolidations	18	—
Balance end of period	(9)	(26)
Total shareholders’ equity	$10,781	$9,830

Index

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

	Three months ended December 31,
$ in millions	2023	2022
Cash flows from operating activities:
Net income	$498	$509
Adjustments to reconcile net income to net cash provided by/(used in) operating activities:
Depreciation and amortization	42	40
Deferred income taxes, net	(9)	25
Premium and discount amortization on available-for-sale securities and bank loans and net unrealized gain/loss on other investments	(12)	(11)
Provisions for credit losses and legal and regulatory matters, net	7	21
Share-based compensation expense	90	81
Unrealized gain on company-owned life insurance policies, net of expenses	(87)	(48)
Other	(8)	(10)
Net change in:
Collateralized agreements, net of collateralized financings	143	97
Loans (provided to) financial advisors, net of repayments	(54)	25
Brokerage client receivables and other receivables, net	304	477
Trading instruments, net	194	127
Derivative instruments, net	(166)	(18)
Other assets	(40)	8
Brokerage client payables and other payables	161	(3,882)
Accrued compensation, commissions and benefits	(423)	(511)
Purchases and originations of loans held for sale, net of proceeds from sales of securitizations and loans held for sale	(97)	(66)
Net cash provided by/(used in) operating activities	543	(3,136)
Cash flows from investing activities:
Increase in bank loans, net	(405)	(826)
Proceeds from sales of loans held for investment	76	45
Purchases of available-for-sale securities	(51)	(153)
Available-for-sale securities maturations, repayments and redemptions	295	326
Additions to property and equipment	(50)	(27)
Investment in solar tax credit equity investment	(15)	—
Other investing activities, net	(26)	(31)
Net cash used in investing activities	(176)	(666)

Index

RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited)
	Three months ended December 31,
$ in millions	2023	2022
Cash flows from financing activities:
Increase in bank deposits	1,194	622
Repurchases of common stock and share-based awards withheld for payment of withholding tax requirements	(199)	(189)
Dividends on common and preferred stock	(97)	(81)
Exercise of stock options and employee stock purchases	10	11
Proceeds from Federal Home Loan Bank advances	750	650
Repayments of Federal Home Loan Bank advances and other borrowed funds	(750)	(791)
Other financing, net	(1)	(1)
Net cash provided by financing activities	907	221
Currency adjustment:
Effect of exchange rate changes on cash and cash equivalents, including those segregated for regulatory purposes	115	215
Net increase/(decrease) in cash and cash equivalents, including those segregated for regulatory purposes and restricted cash	1,389	(3,366)
Cash and cash equivalents, including those segregated for regulatory purposes and restricted cash at beginning of year	12,548	14,659
Cash and cash equivalents, including those segregated for regulatory purposes and restricted cash at end of period	$13,937	$11,293
Cash and cash equivalents	$10,206	$6,177
Cash and cash equivalents segregated for regulatory purposes and restricted cash	3,731	5,116
Total cash and cash equivalents, including those segregated for regulatory purposes and restricted cash at end of period	$13,937	$11,293
Supplemental disclosures of cash flow information:
Cash paid for interest	$499	$216
Cash paid for income taxes, net	$24	$13
Cash outflows for lease liabilities	$30	$31
Non-cash right-of-use assets recorded for new and modified leases	$17	$13

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