Raymond James Financial : Q1 2021 Earnings Presentation

FISCAL 1Q21 RESULTS

January 27, 2021

OVERVIEW OF RESULTS

Paul Reilly

Chairman & CEO, Raymond James Financial

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FISCAL 1Q21 HIGHLIGHTS

				1Q21		vs.	vs.
	$ in millions, except per share amounts				1Q20	4Q20
	As Reported:
	Net revenues	RECORD	$	2,222		11%	7%
	Net income	RECORD	$	312		16%	49%
	Earnings per common share - diluted	RECORD	$	2.23		18%	49%
						1Q20	4Q20
	Return on equity			17.2%		16.0%	11.9%
						vs.	vs.
						1Q20	4Q20
	Non-GAAPMeasures:*
	Adjusted net income	RECORD	$	314		17%	26%
	Adjusted earnings per common share - diluted	RECORD	$	2.24		19%	26%
						1Q20	4Q20
	Adjusted return on equity			17.3%		NA	14.1%
	Return on tangible common equity			19.0%		17.5%	12.9%
	Adjusted return on tangible common equity			19.1%		NA	15.3%

• * These are non-GAAP measures. See the schedule in the Appendix of this presentation for a reconciliation of our non-GAAP measures to the most directly comparable GAAP measures and for more information on these measures.

FISCAL 1Q21 KEY METRICS

			1Q21		vs.	vs.
$ in billions				1Q20	4Q20
Client assets under administration	RECORD	$	1,024.8		14%	10%
Private Client Group (PCG) assets under administration	RECORD	$	974.2		14%	10%
PCG assets in fee-based accounts	RECORD	$	532.7		20%	12%
Financial assets under management	RECORD	$	169.6		12%	11%
Total clients' domestic cash sweep balances	RECORD	$	61.6		56%	11%
PCG financial advisors			8,233		2%	-%
Bank loans, net	RECORD	$	22.0		3%	4%

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FISCAL 1Q21 SEGMENT RESULTS

			1Q21		vs.	vs.
$ in millions				1Q20	4Q20
Net Revenues:
Private Client Group		$	1,467		4%	5%
Capital Markets	RECORD	$	452		69%	10%
Asset Management	RECORD	$	195		6%	6%
Raymond James Bank		$	167		(23)%	4%
Consolidated net revenues	RECORD	$	2,222		11%	7%
Pre-Tax Income:
Private Client Group		$	140		(8)%	12%
Capital Markets(1)	RECORD	$	129		345%	22%
Asset Management	RECORD	$	83		14%	6%
Raymond James Bank		$	71		(47)%	115%
Consolidated pre-tax income(1), (2)	RECORD	$	399		11%	56%

Note: Segments do not total consolidated results because of the Other segment and intersegment eliminations not shown.

• (1) 4Q20 included a $7 M loss in our Capital Markets segment related to the sale of our interests in certain entities that operated predominantly in France, which closed during 1Q21. (2) 1Q21 included expenses in our Other segment associated with our acquisition of NWPS Holdings, Inc. and its wholly-owned subsidiaries, which was announced and completed in December 2020, as well as our announced acquisition of Financo. 4Q20 included $46 M related to the reduction in workforce expenses associated with position eliminations that occurred in response to the economic environment. These expenses were included in our Other segment.

RECENT ACQUISITIONS

NWPS Holdings, Inc.

• Independent provider of retirement plan administration, consulting, actuarial and administration services
• Expands Raymond James' retirement services offerings, including retirement plan administration services, for advisors and clients
• Combined with Raymond James' scale, enables managing the end-to-end experience for plan sponsors and participants
• Over 400,000 participants with more than $35 billion in plan assets*
• Transaction closed on December 24, 2020

Financo**

• Boutique investment bank with strong expertise in a number of consumer and retail specialties
• Combined team will offer enhanced product capabilities and deliver broader and deeper market coverage under Raymond James' full service platform
• Positions the firm as a global market-leader in consumer and retail investment banking
• More than 25 experienced professionals with offices in New York and London

6	* Plan assets held outside Raymond James and therefore not included in firm client assets under administration.
** This transaction is anticipated to close in March or April 2021. The completion of the transaction is subject to certain regulatory and other closing conditions.

FINANCIAL REVIEW

Paul Shoukry

Chief Financial Officer, Raymond James Financial

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