RAYMOND JAMES FINANCIAL INC

Previous wording

Certain statements made in this Quarterly Report on Form 10-Q may constitute “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information concerning future strategic objectives, business prospects, anticipated savings, financial results (including expenses, earnings, liquidity, cash flow and capital expenditures), industry or market conditions (including changes in interest rates and inflation), demand for and pricing of our products (including cash sweep and deposit offerings), anticipated timing and benefits of our acquisitions, and our level of success integrating acquired businesses, anticipated results of litigation, regulatory developments, and general economic conditions. In addition, words such as “believes,” “expects,” “anticipates,” “estimates,” “projects,” and future or conditional verbs such as “will,” “may,” “could,” “should,” and “would,” as well as any other statement that necessarily depends on future events, are intended to identify forward-looking statements. Forward-looking statements are not guarantees, and they involve risks, uncertainties and assumptions. Although we make such statements based on assumptions that we believe to be reasonable, there can be no assurance that actual results will not differ materially from those expressed in the forward-looking statements. We caution investors not to rely unduly on any forward-looking statements and urge you to carefully consider the risks described in our filings with the Securities and Exchange Commission (the “SEC”) from time to time, including our most recent Annual Report on Form 10-K and Current Reports on Form 8-K, which are available at www.raymondjames.com and the SEC’s website at www.sec.gov. We expressly disclaim any obligation to update any forward-looking statement in the event it later turns out to be inaccurate, whether as a result of new information, future events, or otherwise.

Current wording

Certain statements made in this Quarterly Report on Form 10-Q may constitute “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information concerning future strategic objectives, business prospects, anticipated savings, financial results (including expenses, earnings, liquidity, cash flow and capital expenditures), industry or market conditions (including changes in interest rates, inflation, and international trade policies), demand for and pricing of our products (including cash sweep and deposit offerings), anticipated timing and benefits of our acquisitions, and our level of success integrating acquired businesses, anticipated results of litigation, regulatory developments, and general economic conditions. In addition, words such as “believes,” “expects,” “anticipates,” “estimates,” “projects,” and future or conditional verbs such as “will,” “may,” “could,” “should,” and “would,” as well as any other statement that necessarily depends on future events, are intended to identify forward-looking statements. Forward-looking statements are not guarantees, and they involve risks, uncertainties and assumptions. Although we make such statements based on assumptions that we believe to be reasonable, there can be no assurance that actual results will not differ materially from those expressed in the forward-looking statements. We caution investors not to rely unduly on any forward-looking statements and urge you to carefully consider the risks described in our filings with the Securities and Exchange Commission (the “SEC”) from time to time, including our most recent Annual Report on Form 10-K, and subsequent Quarterly Report on Form 10-Q and Current Reports on Form 8-K, which are available at www.raymondjames.com and the SEC’s website at www.sec.gov. We expressly disclaim any obligation to update any forward-looking statement in the event it later turns out to be inaccurate, whether as a result of new information, future events, or otherwise.

Previous wording

For our fiscal first quarter of 2025, we generated net revenues of $3.54 billion, an increase of 17% compared with the prior-year quarter, and pre-tax income of $749 million, an increase of 19% compared with the prior-year quarter. Our net income available to common shareholders of $599 million also increased 21%, and our earnings per diluted share were $2.86, reflecting an increase of 23%. Our annualized return on common equity (“ROCE”) for the quarter was 20.4%, compared with 19.1% for the prior-year quarter, and our annualized return on tangible common equity (“ROTCE”) was 24.0%(1), compared with 23.0%(1) for the prior-year quarter. Excluding the impact of $20 million of expenses related to acquisitions completed in prior years, such as compensation expenses related to retention awards and amortization of identifiable intangible assets, our adjusted net income available to common shareholders was $614 million(1)for the three months ended December 31, 2024, an increase of 19% compared with adjusted net income available to common shareholders for the prior-year quarter. Our adjusted earnings per diluted share were $2.93(1), an increase of 22% compared with the prior-year quarter. Adjusted annualized ROCE for the quarter was 20.9%(1) and adjusted annualized ROTCE was 24.6%(1)compared with adjusted annualized ROCE of 19.7%(1) and adjusted annualized ROTCE of 23.8%(1) for the prior-year quarter.

Current wording

Excluding the impact of $19 million of expenses related to acquisitions completed in prior years, such as compensation expenses related to retention awards and amortization of identifiable intangible assets, our adjusted net income available to common shareholders was $507 million(1)for the three months ended March 31, 2025, an increase of 3% compared with adjusted net income available to common shareholders for the prior-year quarter. Our adjusted earnings per diluted share were $2.42(1), an increase of 5% compared with the prior-year quarter. Adjusted annualized ROCE for the quarter was 16.9%(1) and adjusted annualized ROTCE was 19.7%(1)compared with adjusted annualized ROCE of 18.3%(1) and adjusted annualized ROTCE of 21.8%(1) for the prior-year quarter.

Previous wording

The increase in net revenues compared with the prior-year quarter was primarily due to higher asset management and related administrative fees, largely the result of higher PCG client assets in fee-based accounts due to equity market appreciation and net new assets to the firm since the prior-year period. Investment banking revenues also increased significantly compared with the prior-year quarter primarily due to more favorable market conditions in the current period, particularly for merger & acquisition activity. Offsetting these increases was a decrease in combined net interest income and RJBDP fees from third‑party banks of $25 million, or 4%, due to lower interest rates compared with the prior-year quarter, which more than offset the favorable impact from growth in interest-earning assets and RJBDP balances swept to third-party banks.

Current wording

The increase in net revenues compared with the prior-year quarter was primarily due to higher asset management and related administrative fees largely the result of higher PCG client assets in fee-based accounts. The increase in PCG client assets in fee-based accounts was primarily due to market appreciation and net new assets to the firm since the prior-year period. Brokerage revenues increased compared with the prior-year quarter largely due to higher fixed income brokerage revenues. Investment banking revenues also increased primarily due to more favorable market conditions compared with the prior-year quarter, although activity levels slowed compared with our fiscal first quarter of 2025 due to market uncertainty. Offsetting these increases was a decrease in combined net interest income and RJBDP fees from third‑party banks due to lower short-term interest rates compared with the prior-year quarter, which more than offset a favorable impact from growth in average interest-earning assets.

Previous wording

Compensation, commissions and benefits expense increased 18%, primarily due to an increase in compensable revenues, as well as an increase in compensation costs to support our growth and annual cost increases, including salaries. Our compensation ratio, or the ratio of compensation, commissions and benefits expense to net revenues, was 64.2%, compared with 63.8% for the prior-year quarter. Excluding acquisition-related compensation expenses, our adjusted compensation ratio was 64.0%(1), compared with 63.4%(1) for the prior-year quarter.

Current wording

Compensation, commissions and benefits expense increased 8%, resulting from an increase in compensable revenues, annual salary increases, and an increase in compensation costs to support our growth. Our compensation ratio, or the ratio of compensation, commissions and benefits expense to net revenues, was 64.8%, compared with 65.5% for the prior-year quarter. Excluding acquisition-related compensation expenses, our adjusted compensation ratio was 64.5%(1), compared with 65.2%(1) for the prior-year quarter.

Previous wording

Non-compensation expenses increased 12%, primarily due to higher communications and information processing expenses resulting from continued investments in technology to benefit our clients and advisors and to support our growth, and higher investment sub-advisory fees resulting from growth in assets under management in sub-advised programs. Expenses related to legal and regulatory matters also increased as the current quarter included provisions for legal and regulatory matters while the prior-year quarter reflected a net reserve release. Partially offsetting these increases in expenses, was a decrease in the bank loan provision for credit losses.

Current wording

Non-compensation expenses increased 13%, primarily due to higher legal and regulatory matters expenses as the prior-year quarter reflected a net reserve release, which did not reoccur in the current quarter. Non-compensation expenses also increased due to higher communications and information processing expenses resulting from continued investments in technology to benefit our advisors and their clients and to support our growth and higher investment sub-advisory fees resulting from growth in assets under management in sub-advised programs.

Previous wording

As of December 31, 2024, our tier 1 leverage ratio was 13.0% and total capital ratio was 25.0% both well above regulatory capital requirements. We also continue to have substantial liquidity with $2.3 billion(2) of cash at the parent as of December 31, 2024. In December 2024, the Board of Directors increased the quarterly cash dividend on common shares 11% to $0.50 per share and authorized common stock repurchases of up to $1.5 billion, replacing the previous authorization. During the three months ended December 31, 2024, we repurchased 310 thousand shares of our common stock for $50 million at an average price of $161 per share under the Board’s common stock repurchase authorization, leaving $1.45 billion available under such authorization. We believe our capital and funding position provides us the opportunity to manage our balance sheet prudently and to continue to be opportunistic and invest in growth across our businesses. We expect to continue to repurchase our common stock to offset dilution from share-based compensation and to be opportunistic with incremental repurchases. However, we will continue to monitor market conditions and other capital needs as we consider the magnitude and timing of these repurchases.

Current wording

As of March 31, 2025, our tier 1 leverage ratio was 13.3% and total capital ratio was 24.8% both well above regulatory capital requirements. We also continue to have substantial liquidity with $2.5 billion(2) of corporate cash as of March 31, 2025. During the three months ended March 31, 2025, we repurchased 1.7 million shares of our common stock for $250 million at an average price of $146 per share under the Board of Directors’ common stock repurchase authorization, leaving $1.2 billion available under the Boards’ common stock share repurchase authorization as of March 31, 2025. We believe our capital and funding position provides us the opportunity to manage our balance sheet prudently and to continue to be opportunistic and invest in growth across our businesses.

Previous wording

As we look ahead to the remainder of our fiscal 2025, we believe we are well-positioned for long-term growth with our strong capital position, total client assets under administration of $1.56 trillion, and net bank loans of $47.2 billion. Our PCG segment continues to benefit from growth in fee-based accounts and our financial advisor recruiting pipeline remains solid. Our fiscal second quarter of 2025 results will be negatively impacted by two fewer billable days which we expect to result in an approximate 2% decline in asset management and related administrative fees, as well as impacting our combined net interest income and RJBDP fees from third-party banks. Given our healthy pipeline and our investments in our platform and capabilities, we expect investment banking revenues to continue to benefit over the next few quarters as the market environment has become more conducive for transaction closings. Although the market is still challenging for our fixed income brokerage revenues, we expect to benefit from increased activity from depository institution clients resulting from changes in the outlook for short-term interest rates. With ample client cash balances and capital, we believe we are well-positioned to increase lending as new origination activity increases, which may increase provisions for credit losses in future periods. In addition, although our current loan portfolio credit metrics are solid and we continue to proactively manage our credit risk in our loan portfolio, future economic deterioration or changes in the macroeconomic outlook could also result in increased bank loan provisions for credit losses in future periods. While we maintain discipline in controlling our expenses, we continue to invest to support growth across our businesses which may increase expenses in future periods. Our fiscal second quarter of 2025 compensation expenses will also reflect our annual salary increases and the reset of payroll taxes on January 1, 2025.

Current wording

As we look ahead to the remainder of our fiscal 2025, we believe we are well-positioned for long-term growth with our strong capital and liquidity position, total client assets under administration of $1.54 trillion, PCG client assets in fee-based accounts of $872.8 billion, and net bank loans of $48.3 billion.

Previous wording

(2)For additional information, please see the “Liquidity and capital resources - Sources of liquidity” section in this MD&A.

Current wording

(2)This amount includes cash on hand at the parent, as well as parent cash loaned to RJ&A, which RJ&A has invested on behalf of RJF in cash and cash equivalents or otherwise deployed in its normal business activities. For additional information, please see the “Liquidity and capital resources - Sources of liquidity” section in this MD&A.

Previous wording

Tangible common equity is computed by subtracting goodwill and identifiable intangible assets, net, along with the associated deferred tax liabilities, from total common equity attributable to RJF. Average common equity is computed by adding the total common equity attributable to RJF as of the date indicated to the prior quarter-end total, and dividing by two, or in the case of average tangible common equity, computed by adding tangible common equity as of the date indicated to the prior quarter-end total, and dividing by two. Adjusted average common equity is computed by adjusting for the impact on average common equity of the non-GAAP adjustments, as applicable for each respective period. Adjusted average tangible common equity is computed by adjusting for the impact on average tangible common equity of the non-GAAP adjustments, as applicable for each respective period.

Current wording

Tangible common equity is computed by subtracting goodwill and identifiable intangible assets, net, along with the associated deferred tax liabilities, from total common equity attributable to RJF. Average common equity is computed by adding the total common equity attributable to RJF as of the date indicated to the prior quarter-end total, and dividing by two, or in the case of average tangible common equity, computed by adding tangible common equity as of the date indicated to the prior quarter-end total, and dividing by two. Average common equity for the year-to-date period is computed by adding the total common equity attributable to RJF as of each quarter-end date during the indicated year-to-date period to the beginning of year total, and dividing by three, or in the case of average tangible common equity, computed by adding tangible common equity as of each quarter-end date during the indicated year-to-date period to the beginning of year total, and dividing by three. Adjusted average common equity is computed by adjusting for the impact on average common equity of the non-GAAP adjustments, as applicable for each respective period. Adjusted average tangible common equity is computed by adjusting for the impact on average tangible common equity of the non-GAAP adjustments, as applicable for each respective period.

Previous wording

The Fed funds target rate began our fiscal 2024 at a range of 5.25% to 5.50% and remained throughout most of our fiscal 2024. In late September 2024, the Fed decreased the Fed funds target rate by 50 basis points, followed by two additional 25‑basis-point reductions during our fiscal first quarter of 2025 to end the quarter at a range of 4.25% to 4.50%. The Fed has indicated that it intends to closely monitor market conditions to determine whether it will consider making additional adjustments to short-term interest rates during the remainder of our fiscal 2025. The following table details the Fed’s short-term interest rate activity since the beginning of our fiscal year 2024.

Current wording

The Fed funds target rate began our fiscal 2024 at a range of 5.25% to 5.50% and remained throughout most of our fiscal 2024. In late September 2024, the Fed decreased the Fed funds target rate by 50 basis points, followed by two additional 25‑basis-point reductions during fiscal 2025 to end the period at a range of 4.25% to 4.50%. The Fed has indicated that it intends to closely monitor market conditions to determine whether it will consider making additional adjustments to short-term interest rates during the remainder of our fiscal 2025. The following table details the Fed’s short-term interest rate activity since the beginning of our fiscal year 2024.

Previous wording

Combined net interest income and RJBDP fees from third-party banks declined 4% compared with the prior-year quarter primarily due to lower interest rates, which more than offset the favorable impact from growth in interest-earning assets and RJBDP balances swept to third-party banks.

Current wording

Combined net interest income and RJBDP fees from third-party banks was $1.32 billion and $1.39 billion for the six months ended March 31, 2025 and 2024, respectively. The 5% decline compared with the prior-year period was primarily due to lower short-term interest rates, which more than offset a favorable impact from growth in average interest-earning assets and average RJBDP balances swept to third-party banks.

Previous wording

(1)Effective October 1, 2024, we updated our methodology for allocating interest income on certain cash balances to our segments, resulting in a reduction in interest income in the Other segment and an increase in interest income in the PCG segment. Prior-period segment results have not been conformed to the current-period presentation.

Current wording

(1)Effective October 1, 2024, we updated our methodology for allocating interest income on certain cash balances to our segments, resulting in a reallocation of interest income from the Other segment to the PCG segment. Prior-period segment results have not been conformed to the current-period presentation.

Previous wording

As of December 31, 2024, September 30, 2024, and December 31, 2023 PCG AUA included assets associated with firms affiliated with us through our RCS division of $188.2 billion, $180.7 billion, and $146.9 billion, respectively, of which $160.2 billion, $153.1 billion, and $122.8 billion, respectively, were assets in fee-based accounts. Based on the nature of the services provided to such firms, revenues related to these assets are included in “Account and services fees.” The growth in RCS client assets is partially due to transfers into RCS from our other financial advisor channels. We may continue to experience transfers to our RCS division; however, consistent with our experience in recent fiscal years, we would not expect these financial advisor transfers to significantly impact our results of operations.

Current wording

As of March 31, 2025, December 31, 2024, and March 31, 2024 PCG AUA included assets associated with firms affiliated with us through our RCS division of $185.6 billion, $188.2 billion, and $160.8 billion, respectively, of which $158.5 billion, $160.2 billion, and $134.5 billion, respectively, were assets in fee-based accounts. Based on the nature of the services provided to such firms, revenues related to these assets in the PCG segment are included in “Account and service fees.” The growth in RCS client assets from March 2024 is partially due to transfers into RCS from our other financial advisor channels. We may continue to experience transfers to our RCS division; however, consistent with our experience in recent fiscal years, we would not expect these financial advisor transfers to significantly impact our results of operations.

Previous wording

PCG AUA as of December 31, 2024 decreased 1% compared with September 30, 2024 and were negatively impacted by changes in foreign exchange rates, as well as the departure of primarily one large branch in our independent contractor division which also negatively impacted our PCG assets in fee-based accounts and our domestic PCG net new assets growth. PCG assets in fee-based accounts were $876.6 billion as of December 31, 2024, a slight increase compared with September 30, 2024. PCG assets in fee-based accounts continued to be a significant percentage of overall PCG AUA due to many clients’ preference for fee-based alternatives versus transaction-based accounts and, as a result, a significant portion of our PCG revenues is more directly impacted by market movements.

Current wording

PCG AUA as of March 31, 2025 decreased 1% and PCG assets in fee-based accounts decreased slightly compared with December 31, 2024 due to market-driven depreciation, partially offset by net new assets. PCG assets in fee-based accounts continued to be a significant percentage of overall PCG AUA due to many clients’ preference for fee-based alternatives versus transaction-based accounts and, as a result, a significant portion of our PCG revenues is more directly impacted by market movements.

Previous wording

The “Average yield on RJBDP - third-party banks” in the preceding table is computed by dividing annualized RJBDP fees from third-party banks, which are net of the interest expense paid to clients by the third-party banks, by the average daily RJBDP balances at third-party banks. The average yield on RJBDP - third-party banks for the three months ended December 31, 2024 decreased from the prior-year quarter largely as a result of the 50-basis-point decrease in short-term interest rates enacted by the Fed late in the preceding quarter, as well as the two 25-basis-point rate cuts enacted during the current quarter. See “Management’s Discussion and Analysis - Net interest analysis” for further information.

Current wording

The “Average yield on RJBDP - third-party banks” in the preceding table is computed by dividing annualized RJBDP fees from third-party banks, which are net of the interest expense paid to clients by the third-party banks, by the average daily RJBDP balances at third-party banks. The average yield on RJBDP - third-party banks for the three and six months ended March 31, 2025 decreased from the prior year largely as a result of decreases in the Fed’s short-term benchmark interest rate, as well as the impact of growth in RJBDP balances offering enhanced rates to clients which reduced the yield earned from third-party banks on such balances. See “Management’s Discussion and Analysis - Net interest analysis” for further information.

Previous wording

Total clients’ domestic cash sweep and ESP balances increased 3% compared with September 30, 2024, primarily due to increases in RJBDP balances. PCG segment results can be impacted by not only changes in the level of client cash balances, but also by the allocation of client cash balances between the RJBDP, the CIP, and the ESP, as the PCG segment may earn different amounts from each of these client cash destinations, depending on multiple factors.

Current wording

Total clients’ domestic cash sweep and ESP balances decreased 3% compared with December 31, 2024, primarily due to a decrease in RJBDP balances and, to a lesser extent, ESP deposits. PCG segment results can be impacted by not only changes in the level of client cash balances, but also by the allocation of client cash balances between the RJBDP, the CIP, and the ESP, as the PCG segment may earn different amounts from each of these client cash destinations, depending on multiple factors.

Previous wording

Asset management and related administrative fees increased $285 million, or 24%, primarily due to higher assets in fee-based accounts at the beginning of the current quarter compared with the prior-year quarter resulting from market appreciation and net new assets, due to the favorable impact of our advisor recruiting and retention.

Current wording

Asset management and related administrative fees increased $174 million, or 14%, primarily due to higher assets in fee-based accounts at the beginning of the current quarter compared with the prior-year quarter resulting from market-driven appreciation and net new assets, due to the favorable impact of our advisor recruiting and retention.

Previous wording

Net interest income increased $7 million, or 8%, largely due to an updated methodology for allocating interest income on certain cash balances to our segments, which resulted in a reduction in interest income in the Other segment and an increase in interest income in the PCG segment.

Current wording

Net interest income decreased $6 million, or 7%, primarily due to the impact of lower short-term interest rates, partially offset by the impact of an updated methodology for allocating interest income on certain cash balances to our segments, which resulted in a reduction in interest income in the Other segment and an increase in interest income in the PCG segment.

Previous wording

Compensation-related expenses increased $262 million, or 17%, primarily due to higher commission expense resulting from higher compensable revenues, including asset management and related administrative fees and brokerage revenues, as well as an increase in compensation costs to support our growth and annual cost increases, including salaries.

Current wording

Compensation-related expenses increased $135 million, or 8%, primarily due to higher commission expense resulting from higher compensable revenues, including asset management and related administrative fees and brokerage revenues, as well as an increase in compensation costs to support our growth and annual salary increases.

Previous wording

Account and service fees decreased $19 million, or 3%, primarily due to a decrease in RJBDP fees. RJBDP fees paid to PCG from our Bank segment decreased due to the impact of lower short-term interest rates and, to a lesser extent, a decline in average balances allocated to our Bank segment, while RJBDP fees from third-party banks decreased due to lower short-term interest rates, partially offset by higher average balances swept to such banks. Partially offsetting the decline in total RJBDP fees, mutual fund service fees increased, primarily from higher average mutual fund assets.

Current wording

Account and service fees decreased $55 million, or 5%, primarily due to a decrease in RJBDP fees. RJBDP fees paid to PCG from our Bank segment and third-party banks decreased primarily due to a decrease in the average RJBDP third-party bank yield largely due to the impact of lower short-term interest rates, as well as the impact of growth in RJBDP balances offering enhanced rates to clients which reduced the yield the PCG segment earned on such balances. These decreases were partially offset by higher average RJBDP balances. Partially offsetting the decline in total RJBDP fees, mutual fund service fees increased, primarily from higher average mutual fund assets.

Previous wording

Pre-tax loss was $30 million, compared with a pre-tax income of $3 million for the prior-year quarter.

Current wording

Net revenues of $396 million increased 23% and pre-tax income was $36 million, compared with a pre-tax loss of $17 million for the prior-year quarter.

Previous wording

Compensation-related expenses increased $63 million, or 26%, primarily due to the increase in revenues.

Current wording

Compensation-related expenses increased $22 million, or 9%, primarily due to the increase in revenues.

Previous wording

Non-compensation expenses increased $8 million, or 8%, primarily due to higher business development expenses and communications and information processing expenses, partially offset by lower professional fees.

Current wording

Non-compensation expenses increased $8 million, or 4%, primarily due to higher business development expenses and communications and information processing expenses largely to support our growth, partially offset by lower professional fees.

Previous wording

Management fees recorded in our Asset Management segment are generally calculated as a percentage of the value of our fee-billable financial assets under management (“AUM”). These AUM include the portion of fee-based AUA in our PCG segment that is invested in programs overseen by our Asset Management segment (included in the “AMS” line of the following table), as well as retail accounts managed on behalf of third-party institutions, institutional accounts and proprietary mutual funds that we manage (collectively included in the Raymond James Investment Management line of the following table).

Current wording

Management fees recorded in our Asset Management segment are generally calculated as a percentage of the value of our fee-billable financial assets under management (“AUM”). These AUM include the portion of fee-based AUA in our PCG segment that is invested in programs overseen by AMS, as well as retail accounts managed on behalf of third-party institutions, institutional accounts and proprietary mutual funds managed by Raymond James Investment Management.

Previous wording

(1)Represents the portion of our PCG segment fee-based AUA (as disclosed in “Assets in fee-based accounts” in the “Selected key metrics - PCG client asset balances” section of our “Management’s Discussion and Analysis - Results of Operations - Private Client Group”) that is invested in managed programs overseen by the Asset Management segment.

Current wording

(1)Represents the portion of our PCG segment fee-based AUA (as disclosed in “Assets in fee-based accounts” in the “Selected key metrics - PCG client asset balances” section of our “Management’s Discussion and Analysis - Results of Operations - Private Client Group”) that is invested in managed programs overseen by AMS.

Previous wording

Asset management and related administrative fees increased $58 million, or 26%, driven by higher financial assets under management and assets in non-discretionary asset-based programs at AMS, primarily due to market-driven appreciation in asset values and net inflows to PCG fee-based accounts.

Current wording

Asset management and related administrative fees increased $36 million, or 15%, driven by higher financial assets under management and assets in non-discretionary asset-based programs at AMS, primarily due to market-driven appreciation in asset values and net inflows to PCG fee-based accounts.

Previous wording

Compensation expenses increased $5 million, or 9%, primarily due to higher revenues, as well as an increase in compensation costs to support our growth and annual cost increases, including salaries. Non-compensation expenses increased $22 million, or 25%, largely due to higher investment sub-advisory fees, resulting from the increase in assets under management in sub-advised programs, as well as higher communications and information processing expenses.

Current wording

Non-compensation expenses increased $17 million, or 18%, largely due to higher investment sub-advisory fees, resulting from the increase in assets under management in sub-advised programs, as well as higher communications and information processing expenses.

Previous wording

The bank loan provision for credit losses decreased $12 million compared with the prior-year quarter. The bank loan provision for credit losses for the current quarter primarily reflected the impacts of an improved macroeconomic forecast and loan repayments on criticized loans, offset by provisions on new loans, loan downgrades, primarily in the CRE and C&I loan portfolios, and charge-offs of certain loans. The bank loan provision for credit losses for the prior-year quarter primarily reflected the impacts of specific reserves in our C&I and CRE portfolios, loan downgrades, and charge-offs, partially offset by the favorable impact of loan repayments and sales, which had a larger impact than provisions on new loans.

Current wording

The bank loan provision for credit losses decreased $5 million compared with the prior-year quarter. The bank loan provision for credit losses for the current quarter primarily reflected the impacts of charge-offs of certain CRE and C&I loans and loan downgrades primarily related to our CRE loan portfolio. The bank loan provision for credit losses for the prior-year quarter primarily reflected the impacts of specific reserves, loan downgrades, and charge-offs in our CRE and C&I loan portfolios, partially offset by the favorable impact of an improved economic forecast at that time and net loan payments.

Previous wording

Compensation expenses increased $3 million, or 7%. Non-compensation expenses, excluding the bank loan provision for credit losses, decreased $33 million, or 11%, primarily due to a decrease in RJBDP fees paid to PCG. RJBDP fees paid to PCG decreased $36 million, or 16%, primarily due to the impact of the aforementioned decreases in short-term interest rates, as well as lower average RJBDP balances swept to the Bank segment. These Bank segment fees and the related revenues earned by the PCG segment are eliminated in consolidation (see “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Private Client Group” for further information about these servicing fees). Additionally, non-compensation expenses decreased as the prior-year quarter included the impact of the FDIC special assessment during that quarter which did not reoccur in the current quarter. These decreases in expenses were partially offset by higher communications and information processing expenses.

Current wording

Compensation expenses decreased $3 million, or 6%, due to lower acquisition-related compensation expenses. Non-compensation expenses, excluding the bank loan provision for credit losses, decreased $24 million, or 9%, primarily due to a decrease in RJBDP fees paid to PCG. RJBDP fees paid to PCG decreased $23 million, or 11%, primarily due to the impact of the aforementioned decreases in short-term interest rates, partially offset by higher average RJBDP balances swept to the Bank segment. These Bank segment fees and the related revenues earned by the PCG segment are eliminated in consolidation (see “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Private Client Group” for further information about these servicing fees).

Previous wording

Net interest income decreased $12 million, or 3%, primarily due to the impact of the decrease in short-term interest rates enacted by the Fed late in the preceding quarter, as well as rate cuts enacted during the current quarter, partially offset by the impact of higher average interest-earning asset balances, particularly securities-based loans. The Bank segment net interest margin decreased to 2.60% from 2.74% for the prior-year quarter.

Current wording

Net interest income decreased $6 million, or 1%, primarily due to the impact of the decrease in short-term interest rates, partially offset by the impact of higher average interest-earning asset balances, particularly securities-based loans. The Bank segment net interest margin decreased to 2.63% from 2.70% for the prior-year period.

Previous wording

(1)Effective October 1, 2024, we updated our methodology for allocating interest income on certain cash balances to our segments, resulting in a reduction in interest income in the Other segment and an increase in interest income in the PCG segment. Prior-period segment results have not been conformed to the current-period presentation.

Current wording

(1)Effective October 1, 2024, we updated our methodology for allocating interest income on certain cash balances to our segments, resulting in a reallocation of interest income from the Other segment to the PCG segment. Prior-period segment results have not been conformed to the current-period presentation.

Previous wording

Total assets of $82.28 billion as of December 31, 2024 were $710 million, or 1%, less than our total assets as of September 30, 2024. Cash and cash equivalents decreased $950 million predominantly driven by a decrease in cash held in our Bank segment, largely resulting from investments in bank loans. Available-for-sale securities decreased $533 million primarily driven by net maturities and, to a lesser extent, sales. Other receivables, net and collateralized agreements also decreased $317 million and $219 million, respectively. These decreases were partially offset by a $1.2 billion increase in bank loans, net including continued growth in securities-based loans.

Current wording

Total assets of $83.13 billion as of March 31, 2025 were $140 million higher than our total assets as of September 30, 2024. Banks loans, net increased $2.3 billion, largely due to continued growth in securities-based loans. This increase was partially offset by a $1.3 billion decrease in cash and cash equivalents predominantly driven by a decrease in cash held in our Bank segment, largely resulting from investments in bank loans, and an $821 million decrease in our available-for-sale securities primarily driven by net maturities. Collateralized agreements also decreased $198 million.

Previous wording

As of December 31, 2024, our total liabilities of $70.35 billion were $972 million, or 1%, less than our total liabilities as of September 30, 2024. Accrued compensation, commissions, and benefits decreased $538 million, primarily due to the payment of prior-year bonuses during the quarter. Collateralized financings, bank deposits, and trading liabilities also decreased $170 million, $160 million, and $141 million, respectively.

Current wording

As of March 31, 2025, our total liabilities of $70.91 billion were $420 million, or 1%, less than our total liabilities as of September 30, 2024. Accrued compensation, commissions, and benefits decreased $411 million primarily due to the payment of prior-year bonuses during the period, other borrowings decreased $200 million due to the maturity and repayment of certain FHLB borrowings, and collateralized financings decreased $151 million. These decreases were partially offset by a $393 million increase in bank deposits.

Previous wording

Cash and cash equivalents (excluding amounts segregated for regulatory purposes and restricted cash) of $10.05 billion at December 31, 2024 decreased $950 million compared with September 30, 2024. The decrease in cash and cash equivalents primarily resulted from net investments in bank loans, payments of prior-year bonuses, a decrease in bank deposits, and common stock repurchases and dividends paid on our common stock. These decreases were partially offset by net income and net maturities of available-for-sale securities during the period.

Current wording

Cash and cash equivalents (excluding amounts segregated for regulatory purposes and restricted cash) of $9.66 billion at March 31, 2025 decreased $1.3 billion compared with September 30, 2024. The decrease in cash and cash equivalents primarily resulted from net investments in bank loans, payments of prior-year bonuses, common stock repurchases, dividends paid on our common stock, and the repayment of certain FHLB borrowings during the period. These decreases were partially offset by net income, net maturities of available-for-sale securities, and an increase in bank deposits during the period.

Previous wording

Approximately $2.34 billion of our total December 31, 2024 cash and cash equivalents was RJF corporate cash, which included the cash held at the parent company, as well as cash it loaned to RJ&A. As of December 31, 2024, RJF had loaned $1.60 billion to RJ&A (such amount is included in the RJ&A cash balance in the following table), which RJ&A has invested on behalf of RJF in cash and cash equivalents or otherwise deployed in its normal business activities.

Current wording

Approximately $2.49 billion of our total March 31, 2025 cash and cash equivalents was RJF corporate cash, which included the cash held at the parent company, as well as cash it loaned to RJ&A. As of March 31, 2025, RJF had loaned $1.74 billion to RJ&A (such amount is included in the RJ&A cash balance in the following table), which RJ&A has invested on behalf of RJF in cash and cash equivalents or otherwise deployed in its normal business activities.

Previous wording

RJF maintained depository accounts at Raymond James Bank and TriState Capital Bank totaling $301 million as of December 31, 2024. The portion of this total that was available on demand without restrictions, which amounted to $256 million as of December 31, 2024, is reflected in the RJF cash balance and excluded from Raymond James Bank’s cash balance in the preceding table.

Current wording

RJF maintained depository accounts at Raymond James Bank and TriState Capital Bank totaling $291 million as of March 31, 2025. The portion of this total that was available on demand without restrictions, which amounted to $259 million as of March 31, 2025, is reflected in the RJF cash balance and excluded from Raymond James Bank’s cash balance in the preceding table.

Previous wording

In addition to our Credit Facility, we have various uncommitted financing arrangements with third-party lenders, which are in the form of secured lines of credit, secured bilateral repurchase agreements, or unsecured lines of credit. Our uncommitted secured financing arrangements generally require us to post collateral in excess of the amount borrowed and are generally collateralized by RJ&A-owned securities or by securities that we have received as collateral under reverse repurchase agreements (i.e., securities purchased under agreements to resell). As of December 31, 2024, we had outstanding borrowings under three uncommitted secured borrowing arrangements out of a total of 12 uncommitted financing arrangements (eight uncommitted secured and four uncommitted unsecured). However, lenders are generally under no contractual obligation to lend

Current wording

In addition to our Credit Facility, we have various uncommitted financing arrangements with third-party lenders, which are in the form of secured lines of credit, secured bilateral repurchase agreements, or unsecured lines of credit. Our uncommitted secured financing arrangements generally require us to post collateral in excess of the amount borrowed and are generally collateralized by RJ&A-owned securities or by securities that we have received as collateral under reverse repurchase agreements (i.e., securities purchased under agreements to resell). As of March 31, 2025, we had outstanding borrowings under one uncommitted secured borrowing arrangements out of a total of 12 uncommitted financing arrangements (eight uncommitted secured and four uncommitted unsecured). However, lenders are generally under no contractual obligation to lend to us under uncommitted credit facilities. See Notes 6 and 14 of the Notes to Condensed Consolidated Financial Statements of this Form 10-Q for additional information regarding these borrowings.

Previous wording

We had $950 million in FHLB borrowings outstanding at December 31, 2024, comprised of floating-rate and fixed-rate advances. The interest rates on our floating-rate advances are based on SOFR. We use interest rate swaps to manage the risk of increases in interest rates associated with the majority of our floating-rate FHLB advances by converting the balances subject to variable interest rates to a fixed interest rate.

Current wording

We had $750 million in FHLB borrowings outstanding at March 31, 2025, comprised of floating-rate and fixed-rate advances. The interest rates on our floating-rate advances are based on SOFR. We use interest rate swaps to manage the risk of increases in interest rates associated with our floating-rate FHLB advances by converting the balances subject to variable interest rates to a fixed interest rate.

Previous wording

We pledge certain of our bank loans and available-for-sale securities with the FHLB as security for both the repayment of certain borrowings and to secure capacity for additional borrowings as needed. As of December 31, 2024, we had $9.52 billion in immediate credit available from the FHLB based on the collateral pledged. With the pledge of incremental collateral, we could further increase credit available to us from the FHLB. See Notes 6 and 13 of the Notes to Condensed Consolidated Financial Statements of this Form 10-Q for additional information regarding bank loans and available-for-sale securities pledged with the FHLB and for additional information on our FHLB borrowings, including the related maturities and interest rates.

Current wording

We pledge certain of our bank loans and available-for-sale securities with the FHLB as security for both the repayment of certain borrowings and to secure capacity for additional borrowings as needed. As of March 31, 2025, we had $9.49 billion in immediate credit available from the FHLB based on the collateral pledged. With the pledge of incremental collateral, we could further increase credit available to us from the FHLB. See Notes 6 and 14 of the Notes to Condensed Consolidated Financial Statements of this Form 10-Q for additional information regarding bank loans and available-for-sale securities pledged with the FHLB and for additional information on our FHLB borrowings, including the related maturities and interest rates.

Previous wording

As member banks, our bank subsidiaries have access to the Federal Reserve’s discount window and may have access to other lending programs that may be established by the Federal Reserve in unusual and exigent circumstances. As of December 31, 2024, our bank subsidiaries had pledged certain bank loans with the Federal Reserve and had $2.1 billion in immediate credit available from the FRB based on collateral pledged. With the pledge of incremental collateral, we could further increase credit available to us from the FRB. See Note 6 of the Notes to Condensed Consolidated Financial Statements of this Form 10-Q for additional information regarding our assets pledged with the FRB.

Current wording

As member banks, our bank subsidiaries have access to the Federal Reserve’s discount window and may have access to other lending programs that may be established by the Federal Reserve in unusual and exigent circumstances. As of March 31, 2025, our bank subsidiaries had pledged certain bank loans with the Federal Reserve and had $3.4 billion in immediate credit available from the FRB based on collateral pledged. Subsequent to March 31, 2025, we have continued to pledge incremental collateral, further increasing our credit available to us from the FRB. See Note 6 of the Notes to Condensed Consolidated Financial Statements of this Form 10-Q for additional information regarding our assets pledged with the FRB.