RAYMOND JAMES FINANCIAL INC - FORM 8-K - EX-99.2 - EXHIBIT 99.2 SEGMENT RESULTS

Attached files

file	filename
8-K - 8-K - RAYMOND JAMES FINANCIAL INC	a8-k_segments093013.htm
EX-99.1 - EXHIBIT 99.1 PRESS RELEASE - RAYMOND JAMES FINANCIAL INC	exhibit991_segments.htm
8-K - RJF 8-K OCTOBER 16, 2013 PDF - RAYMOND JAMES FINANCIAL INC	rjf8koct162013pdf.pdf

Exhibit 99.2

SEGMENT RESULTS (UNAUDITED)

Commencing with the quarter and fiscal year ended September 30, 2013, Raymond James Financial, Inc. (the "Company") will begin reporting its financial results based on five reportable segments (reduced from eight reportable segments). The reportable segments going forward are as follows: Private Client Group, Capital Markets, Asset Management, RJ Bank and Other. The following historical financial information reflects the impact of this change (note that the historic Asset Management and RJ Bank segments are not impacted by this change):



Fiscal Year 2013
	Quarter Ended									Year to date
	December 31, 2012			March 31, 2013			June 30, 2013			June 30, 2013
Revenues:	(in thousands)
Private Client Group	$	714,302		$	728,822		$	744,990		$	2,188,114
Capital Markets	253,143			226,477			224,516			704,136
Asset Management	65,629			69,541			76,805			211,975
RJ Bank	92,050			89,821			83,068			264,939
Other	25,459			70,062			22,982			118,503
Intersegment eliminations	(13,074		)	(14,425		)	(14,633		)	(42,132		)
Total revenues	$	1,137,509		$	1,170,298		$	1,137,728		$	3,445,535

Pre-tax income (excluding noncontrolling interests):
Private Client Group	$	53,450		$	53,584		$	58,664		$	165,698
Capital Markets	29,253			16,389			16,047			61,689
Asset Management	20,943			20,860			23,928			65,731
RJ Bank	67,943			64,276			62,881			195,100
Other	(32,442		)	(24,092		)	(29,466		)	(86,000		)
Pre-tax income (excluding noncontrolling interests)	139,147			131,017			132,054			402,218
Add: net income (loss) attributable to noncontrolling interests	8,020			28,286			(3,157		)	33,149
Income including noncontrolling interests and before provision for income taxes	$	147,167		$	159,303		$	128,897		$	435,367

Net interest income:
Private Client Group	$	21,562		$	21,030		$	21,870		$	64,462
Capital Markets	2,098			1,128			172			3,398
Asset Management	24			14			18			56
RJ Bank	87,746			85,197			83,313			256,256
Other	(16,325		)	(16,540		)	(16,189		)	(49,054		)
Net interest income	$	95,105		$	90,829		$	89,184		$	275,118

Assets:
Private Client Group	$	7,796,984		$	7,276,784		$	7,171,216		$	7,171,216
Capital Markets	2,560,347			2,830,458			2,245,285			2,245,285
Asset Management	100,768			127,152			149,237			149,237
RJ Bank	10,089,759			10,319,479			10,536,156			10,536,156
Other	1,728,113			2,181,272			2,112,297			2,112,297
Total assets	$	22,275,971		$	22,735,145		$	22,214,191		$	22,214,191

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Exhibit 99.2

Raymond James Financial, Inc.

Segment Results (Unaudited)

(continued from previous page)



Fiscal Year 2012
	Quarter Ended												Fiscal Year Ended
	December 31, 2011			March 31, 2012			June 30, 2012			September 30, 2012			September 30, 2012
Revenues:	(in thousands)
Private Client Group	$	531,060		$	570,499		$	687,008		$	696,103		$	2,484,670
Capital Markets	140,817			173,653			262,365			244,017			820,852
Asset Management	56,795			58,217			60,611			61,601			237,224
RJ Bank	77,416			83,136			90,289			94,852			345,693
Other	3,134			16,660			28,610			10,008			58,412
Intersegment eliminations	(10,405		)	(12,312		)	(13,121		)	(13,113		)	(48,951		)
Total revenues	$	798,817		$	889,853		$	1,115,762		$	1,093,468		$	3,897,900

Pre-tax income (excluding noncontrolling interests):
Private Client Group	$	50,614		$	47,679		$	65,480		$	51,318		$	215,091
Capital Markets	7,452			21,013			25,614			21,676			75,755
Asset Management	15,813			16,621			17,030			17,777			67,241
RJ Bank	53,003			57,313			59,801			70,041			240,158
Other	(16,031		)	(31,129		)	(43,055		)	(36,505		)	(126,720		)
Pre-tax income (excluding noncontrolling interests)	110,851			111,497			124,870			124,307			471,525
Add: net income (loss) attributable to noncontrolling interests	(6,203		)	(3,595		)	13,121			(6,927		)	(3,604		)
Income including noncontrolling interests and before provision for income taxes	$	104,648		$	107,902		$	137,991		$	117,380		$	467,921

Net interest income:
Private Client Group	$	19,447		$	20,526		$	22,854		$	22,000		$	84,827
Capital Markets	1,305			1,225			1,802			2,309			6,641
Asset Management	16			10			19			(62		)	(17		)
RJ Bank	72,729			78,238			84,571			86,486			322,024
Other	(7,441		)	(9,063		)	(17,614		)	(17,468		)	(51,586		)
Net interest income	$	86,056		$	90,936		$	91,632		$	93,265		$	361,889

Assets:
Private Client Group	$	6,367,413		$	6,174,981		$	6,637,035		$	6,917,562		$	6,917,562
Capital Markets	1,607,564			1,752,889			2,841,619			2,558,143			2,558,143
Asset Management	61,965			66,240			74,682			81,838			81,838
RJ Bank	8,791,526			8,950,761			9,383,333			9,701,996			9,701,996
Other	1,063,098			2,330,505			2,233,886			1,900,726			1,900,726
Total assets	$	17,891,566		$	19,275,376		$	21,170,555		$	21,160,265		$	21,160,265

(continued on next page)

Exhibit 99.2

Raymond James Financial, Inc.

Segment Results (Unaudited)

(continued from previous page)



Fiscal Year 2011
	Quarter Ended												Fiscal Year Ended
	December 31, 2010			March 31, 2011			June 30, 2011			September 30, 2011			September 30, 2011
Revenues:	(in thousands)
Private Client Group	$	521,181		$	558,111		$	558,519		$	554,611		$	2,192,422
Capital Markets	181,615			189,371			177,144			159,330			707,460
Asset Management	55,587			55,341			58,458			57,125			226,511
RJ Bank	77,441			69,099			67,836			67,616			281,992
Other	4,073			3,299			15,002			4,955			27,329
Intersegment eliminations	(9,564		)	(8,477		)	(8,747		)	(9,040		)	(35,828		)
Total revenues	$	830,333		$	866,744		$	868,212		$	834,597		$	3,399,886

Pre-tax income (excluding noncontrolling interests):
Private Client Group	$	56,264		$	46,320		$	53,640		$	64,075		$	220,299
Capital Markets	24,967			34,881			16,901			5,772			82,521
Asset Management	15,594			15,227			17,593			17,762			66,176
RJ Bank	46,464			42,256			42,093			42,180			172,993
Other	(12,775		)	(12,447		)	(51,560		)	(3,960		)	(80,742		)
Pre-tax income (excluding noncontrolling interests)	130,514			126,237			78,667			125,829			461,247
Add: net income (loss) attributable to noncontrolling interests	(3,768		)	(1,999		)	2,412			(7,147		)	(10,502		)
Income including noncontrolling interests and before provision for income taxes	$	126,746		$	124,238		$	81,079		$	118,682		$	450,745

Net interest income:
Private Client Group	$	16,676		$	17,544		$	18,671		$	18,833		$	71,724
Capital Markets	1,651			2,405			832			1,278			6,166
Asset Management	28			24			26			29			107
RJ Bank	74,353			66,786			65,104			65,063			271,306
Other	(4,826		)	(4,635		)	(6,626		)	(6,728		)	(22,815		)
Net interest income	$	87,882		$	82,124		$	78,007		$	78,475		$	326,488

Assets:
Private Client Group	$	4,793,593		$	5,184,578		$	5,295,871		$	6,398,984		$	6,398,984
Capital Markets	1,557,305			1,517,800			1,621,631			1,553,336			1,553,336
Asset Management	57,604			59,126			63,383			61,793			61,793
RJ Bank	7,570,337			7,574,468			7,902,969			8,741,975			8,741,975
Other	870,999			948,207			1,233,255			1,250,907			1,250,907
Total assets	$	14,849,838		$	15,284,179		$	16,117,109		$	18,006,995		$	18,006,995

Exhibit 99.2

Raymond James Financial, Inc.

Private Client Group

Segment Results (Unaudited)



	Fiscal 2013												Fiscal 2012															Fiscal 2011
	Three months ended									Year to date			Three months ended												Fiscal year ended			Three months ended												Fiscal year ended
	December 31, 2012			March 31, 2013			June 30, 2013			June 30, 2013			December 31, 2011			March 31, 2012			June 30, 2012			September 30, 2012			September 30, 2012			December 31, 2010			March 31, 2011			June 30, 2011			September 30, 2011			September 30, 2011
	($ in thousands)
Revenues:
Securities commissions and fees:
Equities	$	73,181		$	75,577		$	77,680		$	226,438		$	57,695		$	65,186		$	69,685		$	71,012		$	263,578		$	70,953		$	75,904		$	63,623		$	66,082		$	276,562
Fixed income products	24,353			23,111			22,138			69,602			14,793			14,495			28,318			26,092			83,698			15,389			16,081			14,571			14,152			60,193
Mutual funds	144,662			158,170			162,306			465,138			105,193			121,888			142,387			144,678			514,146			110,914			119,650			118,048			109,943			458,555
Fee-based accounts	242,568			246,695			260,096			749,359			169,555			181,570			226,137			231,099			808,361			152,916			165,924			180,121			186,711			685,672
Insurance and annuity products	83,318			87,669			81,819			252,806			64,148			64,917			86,104			88,459			303,628			57,912			69,421			67,255			66,457			261,045
New issue sales credits	27,455			23,963			20,249			71,667			21,319			20,607			23,621			17,264			82,811			22,847			18,690			19,454			14,599			75,590
Sub-total securities commissions and fees	595,537			615,185			624,288			1,835,010			432,703			468,663			576,252			578,604			2,056,222			430,931			465,670			463,072			457,944			1,817,617
Interest	25,534			23,915			24,313			73,762			21,832			22,846			25,800			25,388			95,866			19,827			19,782			21,237			21,426			82,272
Account and service fees:
Client account and service fees	42,694			39,380			39,899			121,973			31,465			33,292			40,652			43,464			148,873			32,102			29,689			30,250			31,633			123,674
Mutual fund and annuity service fees	38,383			40,862			42,697			121,942			31,993			31,897			34,755			37,869			136,514			24,510			26,654			29,876			29,241			110,281
Client transaction fees	3,851			4,207			4,527			12,585			6,855			7,131			3,986			3,575			21,547			9,312			9,382			7,080			8,388			34,162
Correspondent clearing fees	703			708			836			2,247			707			784			655			666			2,812			935			859			775			885			3,454
Account and service fees – all other	65			68			75			208			45			67			52			55			219			42			52			61			60			215
Sub-total account and service fees	85,696			85,225			88,034			258,955			71,065			73,171			80,100			85,629			309,965			66,901			66,636			68,042			70,207			271,786
Other	7,535			4,497			8,355			20,387			5,460			5,819			4,856			6,482			22,617			3,522			6,023			6,168			5,034			20,747
Total revenues	714,302			728,822			744,990			2,188,114			531,060			570,499			687,008			696,103			2,484,670			521,181			558,111			558,519			554,611			2,192,422

Interest expense	3,972			2,885			2,443			9,300			2,385			2,320			2,946			3,388			11,039			3,151			2,238			2,566			2,593			10,548
Net revenues	710,330			725,937			742,547			2,178,814			528,675			568,179			684,062			692,715			2,473,631			518,030			555,873			555,953			552,018			2,181,874

Non-interest expenses:
Sales commissions	431,749			442,859			451,923			1,326,531			319,037			349,969			402,410			419,870			1,491,286			314,939			345,271			337,958			334,039			1,332,207
Admin & incentive compensation and benefit costs	120,320			122,305			118,803			361,428			89,055			95,793			120,244			115,461			420,553			82,149			88,228			89,465			84,221			344,063
Communications and information processing	38,359			40,681			43,034			122,074			19,818			24,963			32,803			36,347			113,931			15,565			19,234			19,181			16,492			70,472
Occupancy and equipment	28,821			27,771			28,504			85,096			17,717			19,017			29,557			29,260			95,551			18,803			19,487			19,027			19,869			77,186
Business development	17,626			15,067			16,105			48,798			13,790			14,842			20,264			16,609			65,505			13,806			13,261			13,754			14,721			55,542
Clearance and other	20,005			23,670			25,514			69,189			18,644			15,916			13,304			23,850			71,714			16,576			24,222			23,003			18,644			82,445
Total non-interest expenses	656,880			672,353			683,883			2,013,116			478,061			520,500			618,582			641,397			2,258,540			461,838			509,703			502,388			487,986			1,961,915
Income before taxes and including noncontrolling interests	$	53,450		$	53,584		$	58,664		$	165,698		$	50,614		$	47,679		$	65,480		$	51,318		$	215,091		$	56,192		$	46,170		$	53,565		$	64,032		$	219,959
Noncontrolling interests	—			—			—			—			—			—			—			—			—			(72		)	(150		)	(75		)	(43		)	(340		)
Pre-tax income excluding noncontrolling interests	$	53,450		$	53,584		$	58,664		$	165,698		$	50,614		$	47,679		$	65,480		$	51,318		$	215,091		$	56,264		$	46,320		$	53,640		$	64,075		$	220,299

Margin on net revenues	7.5		%	7.4		%	7.9		%	7.6		%	9.6		%	8.4		%	9.6		%	7.4		%	8.7		%	10.8		%	8.3		%	9.6		%	11.6		%	10.1		%

Exhibit 99.2

Raymond James Financial, Inc.

Capital Markets

Segment Results (Unaudited)



	Fiscal 2013												Fiscal 2012															Fiscal 2011
	Three months ended									Year to date			Three months ended												Fiscal year ended			Three months ended												Fiscal year ended
	December 31, 2012			March 31, 2013			June 30, 2013			June 30, 2013			December 31, 2011			March 31, 2012			June 30, 2012			September 30, 2012			September 30, 2012			December 31, 2010			March 31, 2011			June 30, 2011			September 30, 2011			September 30, 2011
	(in thousands)
Revenues:
Institutional sales commissions:
Equity	$	55,910		$	66,963		$	65,441		$	188,314		$	51,251		$	57,752		$	60,315		$	60,762		$	230,080		$	70,937		$	71,242		$	63,757		$	55,385		$	261,321
Fixed income	91,903			87,872			79,012			258,787			31,925			36,518			101,285			97,156			266,884			36,473			30,943			28,313			31,707			127,436
Sub-total institutional sales commissions	147,813			154,835			144,453			447,101			83,176			94,270			161,600			157,918			496,964			107,410			102,185			92,070			87,092			388,757
Securities underwriting fees	27,261			28,203			29,428			84,892			14,519			26,968			35,507			22,953			99,947			37,776			35,040			38,889			18,116			129,821
Tax credit funds syndication fees	4,269			4,686			8,689			17,644			4,475			11,202			7,854			8,162			31,693			4,195			6,003			3,362			22,502			36,062
Mergers & acquisitions fees	48,065			16,692			23,787			88,544			18,431			17,438			25,166			20,207			81,242			16,895			22,013			21,927			22,296			83,131
Private placement fees	5,094			2,422			3,163			10,679			1,918			1,903			4,299			2,885			11,005			140			75			329			1,396			1,940
Trading (loss) profit	7,996			7,277			(2,408		)	12,865			8,092			11,226			13,224			17,884			50,426			5,846			14,549			7,004			(3,169		)	24,230
Interest	6,389			5,639			5,883			17,911			4,493			4,575			7,417			6,445			22,930			5,690			6,704			5,742			4,826			22,962
Other	6,256			6,723			11,521			24,500			5,713			6,071			7,298			7,563			26,645			3,663			2,802			7,821			6,271			20,557
Total revenues	253,143			226,477			224,516			704,136			140,817			173,653			262,365			244,017			820,852			181,615			189,371			177,144			159,330			707,460
Interest expense	4,291			4,511			5,711			14,513			3,188			3,350			5,615			4,136			16,289			4,039			4,299			4,910			3,548			16,796
Net revenues	248,852			221,966			218,805			689,623			137,629			170,303			256,750			239,881			804,563			177,576			185,072			172,234			155,782			690,664

Non-interest expenses:
Sales commissions	61,334			60,264			53,764			175,362			29,279			32,011			59,152			61,367			181,809			39,627			34,736			31,171			29,653			135,187
Admin & incentive compensation and benefit costs	113,046			98,553			105,022			316,621			71,464			86,862			117,173			113,256			388,755			82,760			82,295			87,333			86,793			339,181
Communications and information processing	16,201			16,956			16,439			49,596			12,346			12,478			16,405			17,076			58,305			10,611			11,151			12,263			12,025			46,050
Occupancy and equipment	8,874			9,128			8,819			26,821			6,464			6,733			9,735			8,933			31,865			5,596			5,721			6,498			6,886			24,701
Business development	10,113			10,280			10,115			30,508			8,689			8,232			11,008			10,090			38,019			8,058			8,079			10,631			9,511			36,279
Losses of real estate partnerships held by consolidated variable interest entities	3,306			12,751			7,024			23,081			3,451			10,338			3,410			3,380			20,579			3,197			5,541			6,862			1,566			17,166
Impairment of goodwill associated with RJES	—			6,933			—			6,933			—			—			—			—			—			—			—			—			—			—
Clearance and all other	12,105			6,827			9,123			28,055			5,133			5,500			21,054			10,165			41,852			7,609			7,791			4,536			10,758			30,694
Total non-interest expenses	224,979			221,692			210,306			656,977			136,826			162,154			237,937			224,267			761,184			157,458			155,314			159,294			157,192			629,258
Income before taxes and including noncontrolling interests	23,873			274			8,499			32,646			803			8,149			18,813			15,614			43,379			20,118			29,758			12,940			(1,410		)	61,406
Noncontrolling interests	(5,380		)	(16,115		)	(7,548		)	(29,043		)	(6,649		)	(12,864		)	(6,801		)	(6,062		)	(32,376		)	(4,849		)	(5,123		)	(3,961		)	(7,182		)	(21,115		)
Pre-tax income excluding noncontrolling interests	$	29,253		$	16,389		$	16,047		$	61,689		$	7,452		$	21,013		$	25,614		$	21,676		$	75,755		$	24,967		$	34,881		$	16,901		$	5,772		$	82,521

Exhibit 99.2

Raymond James Financial, Inc.

Other

Segment Results (Unaudited)



	Fiscal 2013												Fiscal 2012															Fiscal 2011
	Three months ended									Year to date			Three months ended												Fiscal year ended			Three months ended												Fiscal year ended
	December 31, 2012			March 31, 2013			June 30, 2013			June 30, 2013			December 31, 2011			March 31, 2012			June 30, 2012			September 30, 2012			September 30, 2012			December 31, 2010			March 31, 2011			June 30, 2011			September 30, 2011			September 30, 2011
	(in thousands)
Revenues
Interest	$	3,289		$	3,295		$	4,109		$	10,693		$	2,072		$	2,323		$	3,412		$	2,956		$	10,763		$	2,140		$	1,741		$	2,352		$	2,326		$	8,559
Investment banking	—			—			3,000			3,000			—			450			—			8			458			—			—			—			—			—
Investment advisory fees	361			361			342			1,064			325			194			538			191			1,248			238			237			238			237			950
Other	21,809			66,406			15,531			103,746			737			13,693			24,660			6,853			45,943			1,695			1,321			12,412			2,392			17,820
Total revenues	25,459			70,062			22,982			118,503			3,134			16,660			28,610			10,008			58,412			4,073			3,299			15,002			4,955			27,329

Interest expense	19,614			19,835			20,298			59,747			9,513			11,386			21,026			20,424			62,349			6,966			6,376			8,978			9,054			31,374
Net revenues	5,845			50,227			2,684			58,756			(6,379		)	5,274			7,584			(10,416		)	(3,937		)	(2,893		)	(3,077		)	6,024			(4,099		)	(4,045		)

Non-interest expenses:
Compensation expense	9,624			10,261			12,715			32,600			8,959			7,837			11,349			10,675			38,820			9,310			6,480			6,617			6,898			29,305
Acquisition related expenses	17,382			20,922			13,449			51,753			—			19,604			20,955			18,725			59,284			—			—			—			—			—
Other expenses	(1,518		)	(512		)	2,242			212			703			(159		)	(1,465		)	(2,322		)	(3,243		)	495			(234		)	44,607			(7,028		)	37,840
Total non-interest expenses	25,488			30,671			28,406			84,565			9,662			27,282			30,839			27,078			94,861			9,805			6,246			51,224			(130		)	67,145
Income before taxes and including noncontrolling interests	(19,643		)	19,556			(25,722		)	(25,809		)	(16,041		)	(22,008		)	(23,255		)	(37,494		)	(98,798		)	(12,698		)	(9,323		)	(45,200		)	(3,969		)	(71,190		)
Noncontrolling interests	12,799			43,648			3,744			60,191			(10		)	9,121			19,800			(989		)	27,922			77			3,124			6,360			(9		)	9,552
Pre-tax income excluding noncontrolling interests	$	(32,442	)	$	(24,092	)	$	(29,466	)	$	(86,000	)	$	(16,031	)	$	(31,129	)	$	(43,055	)	$	(36,505	)	$	(126,720	)	$	(12,775	)	$	(12,447	)	$	(51,560	)	$	(3,960	)	$	(80,742	)

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RAYMOND JAMES FINANCIAL INC Reports