RAYMOND JAMES FINANCIAL INC - FORM 8-K - EX-99.2 - EXHIBIT 99.2 FINANCIAL SUPPLEMENT SECOND QUARTER FISCAL YEAR 2020 OF RJF

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EX-99.3 - EXHIBIT 99.3 EARNINGS PRESENTATION SECOND QUARTER FISCAL YEAR 2020 OF RJF - RAYMOND JAMES FINANCIAL INC	fiscal2q20earningspresen.htm
EX-99.1 - EXHIBIT 99.1 PRESS RELEASE DATED APRIL 29, 2020 - RAYMOND JAMES FINANCIAL INC	rjf20200331q220earnings.htm
8-K - 8-K - RAYMOND JAMES FINANCIAL INC	a8-kmarch2020earningsr.htm

EARNINGS RELEASE FINANCIAL SUPPLEMENT

SECOND QUARTER

FISCAL YEAR 2020 RESULTS

RAYMOND JAMES FINANCIAL, INC.

Consolidated Statements of Income (Unaudited)



	Three months ended															% change from				Six months ended
in millions, except per share amounts	March 31, 2019			June 30, 2019			September 30, 2019			December 31, 2019			March 31, 2020			March 31, 2019		December 31, 2019		March 31, 2019			March 31, 2020			% change
Revenues:
Asset management and related administrative fees	$	783		$	879		$	924		$	955		$	1,006		28	%	5	%	$	1,648		$	1,961		19	%
Brokerage revenues:
Securities commissions	349			358			355			363			410			17	%	13	%	737			773			5	%
Principal transactions	93			93			95			97			105			13	%	8	%	169			202			20	%
Total brokerage revenues	442			451			450			460			515			17	%	12	%	906			975			8	%
Account and service fees	191			183			179			178			172			(10	)%	(3	)%	376			350			(7	)%
Investment banking	163			139			157			141			148			(9	)%	5	%	300			289			(4	)%
Interest income	324			321			320			297			285			(12	)%	(4	)%	640			582			(9	)%
Other ⁽¹⁾	31			27			55			29			(15		)	NM		NM		68			14			(79	)%
Total revenues	1,934			2,000			2,085			2,060			2,111			9	%	2	%	3,938			4,171			6	%
Interest expense	(75		)	(73		)	(62		)	(51		)	(43		)	(43	)%	(16	)%	(148		)	(94		)	(36	)%
Net revenues	1,859			1,927			2,023			2,009			2,068			11	%	3	%	3,790			4,077			8	%
Non-interest expenses:
Compensation, commissions and benefits	1,225			1,277			1,320			1,351			1,422			16	%	5	%	2,490			2,773			11	%
Non-compensation expenses:
Communications and information processing	94			92			95			94			99			5	%	5	%	186			193			4	%
Occupancy and equipment	53			55			59			57			56			6	%	(2	)%	104			113			9	%
Business development	41			57			53			44			41			—		(7	)%	84			85			1	%
Investment sub-advisory fees	22			24			24			26			26			18	%	—		46			52			13	%
Professional fees	17			22			24			21			23			35	%	10	%	39			44			13	%
Bank loan loss provision/(benefit)	5			(5		)	6			(2		)	109			2,080	%	NM		21			107			410	%
Acquisition and disposition-related expenses ⁽²⁾	—			—			—			—			—			—		—		15			—			(100	)%
Other ^{(1) (3) (4)}	55			63			88			59			53			(4	)%	(10	)%	126			112			(11	)%
Total non-compensation expenses	287			308			349			299			407			42	%	36	%	621			706			14	%
Total non-interest expenses	1,512			1,585			1,669			1,650			1,829			21	%	11	%	3,111			3,479			12	%
Pre-tax income	347			342			354			359			239			(31	)%	(33	)%	679			598			(12	)%
Provision for income taxes	86			83			89			91			70			(19	)%	(23	)%	169			161			(5	)%
Net income	$	261		$	259		$	265		$	268		$	169		(35	)%	(37	)%	$	510		$	437		(14	)%

Earnings per common share – basic ⁽⁵⁾	$	1.85		$	1.84		$	1.90		$	1.93		$	1.22		(34	)%	(37	)%	$	3.58		$	3.15		(12	)%
Earnings per common share – diluted ⁽⁵⁾	$	1.81		$	1.80		$	1.86		$	1.89		$	1.20		(34	)%	(37	)%	$	3.51		$	3.09		(12	)%
Weighted-average common shares outstanding – basic	140.8			140.4			138.6			138.3			138.4			(2	)%	—		142.5			138.4			(3	)%
Weighted-average common and common equivalent shares outstanding – diluted	143.9			143.6			141.8			141.5			141.1			(2	)%	—		145.4			141.3			(3	)%

Please refer to the footnotes at the end of this supplement for additional information.

RAYMOND JAMES FINANCIAL, INC.

Consolidated Selected Key Metrics (Unaudited)



	As of																% change from
$ in millions, except per share amounts	March 31, 2019			June 30, 2019			September 30, 2019			December 31, 2019			March 31, 2020				March 31, 2019		December 31, 2019
Total assets	$	38,176		$	38,677		$	38,830		$	40,154		$	49,809			30	%	24	%
Total equity attributable to Raymond James Financial, Inc.	$	6,366		$	6,502		$	6,581		$	6,842		$	6,798			7	%	(1	)%
Book value per share ⁽⁶⁾	$	45.34		$	46.54		$	47.76		$	49.26		$	49.69			10	%	1	%
Tangible book value per share ^{(6) (7)}	$	41.10		$	42.18		$	43.53		$	45.10		$	45.50			11	%	1	%

Capital ratios:
Tier 1 capital	24.3		%	24.2		%	24.8		%	24.8		%	24.1		%	⁽⁸⁾
Total capital	25.3		%	25.2		%	25.8		%	25.7		%	25.3		%	⁽⁸⁾
Tier 1 leverage	15.1		%	15.7		%	15.7		%	15.8		%	14.2		%	⁽⁸⁾

	Three months ended																% change from				Six months ended
	March 31, 2019			June 30, 2019			September 30, 2019			December 31, 2019			March 31, 2020				March 31, 2019		December 31, 2019		March 31, 2019			March 31, 2020		% change
Adjusted pre-tax income ⁽⁷⁾	NA			NA			$	373		NA			NA				NA		NA		$	694		NA		(14	)%
Adjusted net income ⁽⁷⁾	NA			NA			$	284		NA			NA				NA		NA		$	525		NA		(17	)%
Adjusted earnings per common share - basic ^{(5) (7)}	NA			NA			$	2.04		NA			NA				NA		NA		$	3.68		NA		(14	)%
Adjusted earnings per common share - diluted ^{(5) (7)}	NA			NA			$	2.00		NA			NA				NA		NA		$	3.61		NA		(14	)%
Return on equity ⁽⁹⁾	16.7		%	16.1		%	16.2		%	16.0		%	9.9		%						16.2		%	13.0	%
Adjusted return on equity ^{(7) (9)}	NA			NA			17.3		%	NA			NA								16.7		%	NA
Return on tangible common equity ^{(7) (9)}	18.5		%	17.8		%	17.8		%	17.5		%	10.8		%						17.9		%	14.2	%
Adjusted return on tangible common equity ^{(7) (9)}	NA			NA			19.1		%	NA			NA								18.4		%	NA
Pre-tax margin ⁽¹⁰⁾	18.7		%	17.7		%	17.5		%	17.9		%	11.6		%						17.9		%	14.7	%
Adjusted pre-tax margin ^{(7) (10)}	NA			NA			18.4		%	NA			NA								18.3		%	NA
Total compensation ratio ⁽¹¹⁾	65.9		%	66.3		%	65.2		%	67.2		%	68.8		%						65.7		%	68.0	%
Effective tax rate	25.4		%	24.4		%	25.1		%	25.3		%	29.3		%						25.4		%	26.9	%

Please refer to the footnotes at the end of this supplement for additional information.

RAYMOND JAMES FINANCIAL, INC.

Consolidated Selected Key Metrics (Unaudited)



	As of															% change from
	March 31, 2019			June 30, 2019			September 30, 2019			December 31, 2019			March 31, 2020			March 31, 2019		December 31, 2019
Client asset metrics ($ in billions):
Client assets under administration	$	796.0		$	824.2		$	838.3		$	896.0		$	773.9		(3	)%	(14	)%
Private Client Group assets under administration	$	760.0		$	787.4		$	798.4		$	855.2		$	734.0		(3	)%	(14	)%
Private Client Group assets in fee-based accounts	$	378.4		$	398.0		$	409.1		$	444.2		$	383.5		1	%	(14	)%
Financial assets under management	$	138.5		$	143.1		$	143.1		$	151.7		$	128.2		(7	)%	(15	)%

Clients' domestic cash sweep balances ($ in millions):
Raymond James Bank Deposit Program (“RJBDP”): ⁽¹²⁾
Raymond James Bank	$	21,023		$	21,600		$	21,649		$	21,891		$	28,711		37	%	31	%
Third-party banks	14,343			14,425			14,043			15,061			20,379			42	%	35	%
Subtotal RJBDP	35,366			36,025			35,692			36,952			49,090			39	%	33	%
Money market funds ⁽¹³⁾	4,001			—			—			—			—			(100	)%	—
Client Interest Program	2,349			2,130			2,022			2,528			3,782			61	%	50	%
Total clients’ domestic cash sweep balances	$	41,716		$	38,155		$	37,714		$	39,480		$	52,872		27	%	34	%

	Three months ended															Six months ended
	March 31, 2019			June 30, 2019			September 30, 2019			December 31, 2019			March 31, 2020			March 31, 2019		March 31, 2020
Average yield on RJBDP - third-party banks ⁽¹⁴⁾	2.00		%	1.95		%	1.83		%	1.64		%	1.33		%	1.87	%	1.48	%

	As of															% change from
	March 31, 2019			June 30, 2019			September 30, 2019			December 31, 2019			March 31, 2020			March 31, 2019		December 31, 2019
Private Client Group financial advisors:
Employees	3,192			3,228			3,301			3,331			3,376			6	%	1	%
Independent contractors	4,670			4,676			4,710			4,729			4,772			2	%	1	%
Total advisors	7,862			7,904			8,011			8,060			8,148			4	%	1	%

Please refer to the footnotes at the end of this supplement for additional information.

RAYMOND JAMES FINANCIAL, INC.

Segment Results - Private Client Group (Unaudited)



	Three months ended															% change from				Six months ended
$ in millions	March 31, 2019			June 30, 2019			September 30, 2019			December 31, 2019			March 31, 2020			March 31, 2019		December 31, 2019		March 31, 2019			March 31, 2020			% change
Revenues:
Asset management and related administrative fees	$	638		$	718		$	757		$	782		$	833		31	%	7	%	$	1,345		$	1,615		20	%
Brokerage revenues:
Mutual and other fund products	145			147			150			144			163			12	%	13	%	302			307			2	%
Insurance and annuity products	99			105			104			101			99			—		(2	)%	203			200			(1	)%
Equities, ETFs, and fixed income products	94			94			87			102			122			30	%	20	%	197			224			14	%
Total brokerage revenues	338			346			341			347			384			14	%	11	%	702			731			4	%
Account and service fees:
Mutual fund and annuity service fees	82			85			84			90			88			7	%	(2	)%	165			178			8	%
RJBDP fees: ⁽¹²⁾
Third-party banks	80			67			65			58			51			(36	)%	(12	)%	148			109			(26	)%
Raymond James Bank	42			44			46			47			48			14	%	2	%	83			95			14	%
Client account and other fees	27			32			30			29			35			30	%	21	%	60			64			7	%
Total account and service fees	231			228			225			224			222			(4	)%	(1	)%	456			446			(2	)%
Investment banking	8			10			7			11			11			38	%	—		15			22			47	%
Interest income	58			56			55			49			45			(22	)%	(8	)%	114			94			(18	)%
All other	9			3			7			9			7			(22	)%	(22	)%	16			16			—
Total revenues	1,282			1,361			1,392			1,422			1,502			17	%	6	%	2,648			2,924			10	%
Interest expense	(11		)	(10		)	(11		)	(8		)	(7		)	(36	)%	(13	)%	(21		)	(15		)	(29	)%
Net revenues	1,271			1,351			1,381			1,414			1,495			18	%	6	%	2,627			2,909			11	%
Non-interest expenses:
Financial advisor compensation and benefits	750			805			832			857			915			22	%	7	%	1,553			1,772			14	%
Administrative compensation and benefits	234			237			233			247			245			5	%	(1	)%	463			492			6	%
Total compensation, commissions and benefits	984			1,042			1,065			1,104			1,160			18	%	5	%	2,016			2,264			12	%
Non-compensation expenses	155			169			173			157			165			6	%	5	%	315			322			2	%
Total non-interest expenses	1,139			1,211			1,238			1,261			1,325			16	%	5	%	2,331			2,586			11	%
Pre-tax income	$	132		$	140		$	143		$	153		$	170		29	%	11	%	$	296		$	323		9	%

Please refer to the footnotes at the end of this supplement for additional information.

RAYMOND JAMES FINANCIAL, INC.

Segment Results - Capital Markets (Unaudited)



	Three months ended															% change from				Six months ended
$ in millions	March 31, 2019			June 30, 2019			September 30, 2019			December 31, 2019			March 31, 2020			March 31, 2019		December 31, 2019		March 31, 2019			March 31, 2020			% change
Revenues:
Brokerage revenues:
Fixed income	$	71		$	73		$	82		$	81		$	90		27	%	11	%	$	128		$	171		34	%
Equity	32			31			26			34			40			25	%	18	%	74			74			—
Total brokerage revenues	103			104			108			115			130			26	%	13	%	202			245			21	%
Investment banking:
Merger & acquisition and advisory	121			80			93			60			72			(40	)%	20	%	206			132			(36	)%
Equity underwriting	18			27			28			39			43			139	%	10	%	45			82			82	%
Debt underwriting	17			22			29			31			22			29	%	(29	)%	34			53			56	%
Total investment banking	156			129			150			130			137			(12	)%	5	%	285			267			(6	)%
Interest income	9			10			9			8			10			11	%	25	%	19			18			(5	)%
Tax credit fund revenues	14			16			37			18			12			(14	)%	(33	)%	33			30			(9	)%
All other	3			2			6			3			7			133	%	133	%	7			10			43	%
Total revenues	285			261			310			274			296			4	%	8	%	546			570			4	%
Interest expense	(8		)	(10		)	(8		)	(6		)	(6		)	(25	)%	—		(16		)	(12		)	(25	)%
Net revenues	277			251			302			268			290			5	%	8	%	530			558			5	%
Non-interest expenses:
Compensation, commissions and benefits	168			160			179			166			184			10	%	11	%	326			350			7	%
Non-compensation expenses ^{(2) (3) (4)}	68			67			90			73			78			15	%	7	%	151			151			—
Total non-interest expenses	236			227			269			239			262			11	%	10	%	477			501			5	%
Pre-tax income	$	41		$	24		$	33		$	29		$	28		(32	)%	(3	)%	$	53		$	57		8	%

Please refer to the footnotes at the end of this supplement for additional information.

RAYMOND JAMES FINANCIAL, INC.

Segment Results - Asset Management (Unaudited)



	Three months ended										% change from				Six months ended
$ in millions	March 31, 2019		June 30, 2019		September 30, 2019		December 31, 2019		March 31, 2020		March 31, 2019		December 31, 2019		March 31, 2019		March 31, 2020		% change
Revenues:
Asset management and related administrative fees:
Managed programs	$	109	$	120	$	121	$	125	$	124	14	%	(1	)%	$	226	$	249	10	%
Administration and other	40		45		49		51		53		33	%	4	%	84		104		24	%
Total asset management and related administrative fees	149		165		170		176		177		19	%	1	%	310		353		14	%
Account and service fees	10		8		4		5		4		(60	)%	(20	)%	19		9		(53	)%
All other	3		4		4		3		3		—		—		7		6		(14	)%
Net revenues	162		177		178		184		184		14	%	—		336		368		10	%
Non-interest expenses:
Compensation, commissions and benefits	45		47		44		45		45		—		—		88		90		2	%
Non-compensation expenses ⁽³⁾	62		65		65		66		66		6	%	—		129		132		2	%
Total non-interest expenses	107		112		109		111		111		4	%	—		217		222		2	%
Pre-tax income	$	55	$	65	$	69	$	73	$	73	33	%	—		$	119	$	146	23	%

Please refer to the footnotes at the end of this supplement for additional information.

RAYMOND JAMES FINANCIAL, INC.

Segment Results - Raymond James Bank (Unaudited)



	Three months ended															% change from				Six months ended
$ in millions	March 31, 2019			June 30, 2019			September 30, 2019			December 31, 2019			March 31, 2020			March 31, 2019		December 31, 2019		March 31, 2019			March 31, 2020			% change
Revenues:
Interest income	$	247		$	246		$	243		$	231		$	223		(10	)%	(3	)%	$	486		$	454		(7	)%
Interest expense	(42		)	(38		)	(33		)	(21		)	(18		)	(57	)%	(14	)%	(84		)	(39		)	(54	)%
Net interest income	205			208			210			210			205			—		(2	)%	402			415			3	%
All other	7			7			6			6			5			(29	)%	(17	)%	13			11			(15	)%
Net revenues	212			215			216			216			210			(1	)%	(3	)%	415			426			3	%
Non-interest expenses:
Compensation and benefits	12			13			13			12			13			8	%	8	%	23			25			9	%
Non-compensation expenses:
Loan loss provision/(benefit)	5			(5		)	6			(2		)	109			2,080	%	NM		21			107			410	%
RJBDP fees to Private Client Group ⁽¹²⁾	42			44			46			47			48			14	%	2	%	83			95			14	%
All other	17			25			20			24			26			53	%	8	%	42			50			19	%
Total non-compensation expenses	64			64			72			69			183			186	%	165	%	146			252			73	%
Total non-interest expenses	76			77			85			81			196			158	%	142	%	169			277			64	%
Pre-tax income	$	136		$	138		$	131		$	135		$	14		(90	)%	(90	)%	$	246		$	149		(39	)%

Please refer to the footnotes at the end of this supplement for additional information.

RAYMOND JAMES FINANCIAL, INC.

Segment Results - Other ⁽¹⁵⁾ (Unaudited)



	Three months ended															% change from				Six months ended
$ in millions	March 31, 2019			June 30, 2019			September 30, 2019			December 31, 2019			March 31, 2020			March 31, 2019		December 31, 2019		March 31, 2019			March 31, 2020			% change
Revenues:
Interest income	$	14		$	12		$	21		$	12		$	12		(14	)%	—		$	30		$	24		(20	)%
Gains/(losses) on private equity investments ⁽¹⁾	2			2			6			(2		)	(39		)	NM		(1,850	)%	6			(41		)	NM
All other	3			1			(2		)	2			—			(100	)%	(100	)%	4			2			(50	)%
Total revenues	19			15			25			12			(27		)	NM		NM		40			(15		)	NM
Interest expense	(19		)	(19		)	(18		)	(20		)	(17		)	(11	)%	(15	)%	(38		)	(37		)	(3	)%
Net revenues	—			(4		)	7			(8		)	(44		)	NM		(450	)%	2			(52		)	NM
Non-interest expenses ^{(1) (3)}	17			21			29			23			2			(88	)%	(91	)%	37			25			(32	)%
Pre-tax loss	$	(17	)	$	(25	)	$	(22	)	$	(31	)	$	(46	)	(171	)%	(48	)%	$	(35	)	$	(77	)	(120	)%

Please refer to the footnotes at the end of this supplement for additional information.

RAYMOND JAMES FINANCIAL, INC.

Raymond James Bank Selected Key Metrics (Unaudited)



	As of																% change from
$ in millions	March 31, 2019			June 30, 2019			September 30, 2019			December 31, 2019			March 31, 2020				March 31, 2019		December 31, 2019
Total assets	$	24,925		$	25,668		$	25,705		$	26,469		$	33,656			35	%	27	%
Total equity	$	2,136		$	2,198		$	2,248		$	2,300		$	2,263			6	%	(2	)%
Bank loans, net	$	20,135		$	20,691		$	20,891		$	21,296		$	21,788			8	%	2	%
Allowance for loan losses	$	218		$	215		$	218		$	216		$	324			49	%	50	%
Allowance for loan losses as a % of loans held for investment	1.08		%	1.03		%	1.04		%	1.01		%	1.47		%
Total nonperforming assets	$	61		$	56		$	46		$	41		$	27			(56	)%	(34	)%
Nonperforming assets as a % of total assets	0.25		%	0.22		%	0.18		%	0.16		%	0.08		%
Total criticized loans	$	246		$	197		$	285		$	349		$	387			57	%	11	%
Criticized loans as a % of loans held for investment	1.21		%	0.95		%	1.36		%	1.64		%	1.76		%

Capital ratios:
Tier 1 capital	12.8		%	12.8		%	13.2		%	13.3		%	12.7		%	⁽⁸⁾
Total capital	14.1		%	14.1		%	14.5		%	14.5		%	13.9		%	⁽⁸⁾
Tier 1 leverage	8.6		%	8.8		%	8.8		%	8.8		%	8.1		%	⁽⁸⁾



	Three months ended															% change from			Six months ended
$ in millions	March 31, 2019			June 30, 2019			September 30, 2019			December 31, 2019			March 31, 2020			March 31, 2019		December 31, 2019	March 31, 2019			March 31, 2020			% change
Bank loan loss provision/(benefit)	$	5		$	(5	)	$	6		$	(2	)	$	109		2,080	%	NM	$	21		$	107		410	%
Net charge-offs/(recoveries)	$	6		$	(1	)	$	2		$	—		$	—		(100	)%	—	$	5		$	—		(100	)%
Net interest margin (net yield on interest-earning banking assets)	3.35		%	3.37		%	3.30		%	3.23		%	3.02		%				3.30		%	3.12		%

Please refer to the footnotes at the end of this supplement for additional information.

RAYMOND JAMES FINANCIAL, INC.

Reconciliation of GAAP measures to non-GAAP financial measures (Unaudited)

We utilize certain non-GAAP financial measures as additional measures to aid in, and enhance, the understanding of our financial results and related measures. These non-GAAP financial measures have been separately identified in this document. We believe certain of these non-GAAP financial measures provides useful information to management and investors by excluding certain material items that may not be indicative of our core operating results. We utilize these non-GAAP financial measures in assessing the financial performance of the business, as they facilitate a comparison of current- and prior-period results. We believe that return on tangible common equity and tangible book value per share are meaningful to investors as they facilitate comparisons of our results to the results of other companies. In the following table, the tax effect of non-GAAP adjustments reflects the statutory rate associated with each non-GAAP item. These non-GAAP financial measures should be considered in addition to, and not as a substitute for, measures of financial performance prepared in accordance with GAAP. In addition, our non-GAAP financial measures may not be comparable to similarly titled non-GAAP financial measures of other companies. The following table provides a reconciliation of GAAP measures to non-GAAP financial measures for those periods which include non-GAAP adjustments.



	Three months ended			Six months ended
$ in millions, except per share amounts	September 30, 2019			March 31, 2019
Net income	$	265		$	510
Non-GAAP adjustments:
Acquisition and disposition-related expenses ⁽²⁾	—			15
Goodwill impairment ⁽⁴⁾	19			—
Pre-tax impact of non-GAAP adjustments	19			15
Tax effect of non-GAAP adjustments	—			—
Total non-GAAP adjustments, net of tax	19			15
Adjusted net income	$	284		$	525

Pre-tax income	$	354		$	679
Pre-tax impact of non-GAAP adjustments (as detailed above)	19			15
Adjusted pre-tax income	$	373		$	694

Pre-tax margin ⁽¹⁰⁾	17.5		%	17.9		%
Adjusted pre-tax margin ⁽¹⁰⁾	18.4		%	18.3		%

Earnings per common share ⁽⁵⁾
Basic	$	1.90		$	3.58
Adjusted basic	$	2.04		$	3.68
Diluted	$	1.86		$	3.51
Adjusted diluted	$	2.00		$	3.61

Please refer to the footnotes at the end of this supplement for additional information.

RAYMOND JAMES FINANCIAL, INC.

Reconciliation of GAAP measures to non-GAAP financial measures (Unaudited)

(Continued from previous page)



Book value per share	As of
$ in millions, except per share amounts	March 31, 2019			June 30, 2019			September 30, 2019			December 31, 2019			March 31, 2020
Total equity attributable to Raymond James Financial, Inc.	$	6,366		$	6,502		$	6,581		$	6,842		$	6,798
Less non-GAAP adjustments:
Goodwill and identifiable intangible assets, net	630			635			611			609			603
Deferred tax liabilities, net	(35		)	(26		)	(28		)	(31		)	(30		)
Tangible common equity attributable to Raymond James Financial, Inc.	$	5,771		$	5,893		$	5,998		$	6,264		$	6,225
Common shares outstanding	140.4			139.7			137.8			138.9			136.8
Book value per share ⁽⁶⁾	$	45.34		$	46.54		$	47.76		$	49.26		$	49.69
Tangible book value per share ⁽⁶⁾	$	41.10		$	42.18		$	43.53		$	45.10		$	45.50



Return on equity	Three months ended															Six months ended
$ in millions	March 31, 2019			June 30, 2019			September 30, 2019			December 31, 2019			March 31, 2020			March 31, 2019			March 31, 2020

Average equity ⁽¹⁶⁾	$	6,255		$	6,434		$	6,542		$	6,712		$	6,820		$	6,292		$	6,740
Impact on average equity of non-GAAP adjustments:
Acquisition and disposition-related expenses ⁽²⁾	NA			NA			—			NA			NA			10			NA
Goodwill impairment ⁽⁴⁾	NA			NA			9			NA			NA			—			NA
Adjusted average equity ⁽¹⁶⁾	NA			NA			$	6,551		NA			NA			$	6,302		NA

Average equity ⁽¹⁶⁾	$	6,255		$	6,434		$	6,542		$	6,712		$	6,820		$	6,292		$	6,740
Less:
Average goodwill and identifiable intangible assets, net	632			633			623			610			606			634			608
Average deferred tax liabilities, net	(35		)	(31		)	(27		)	(30		)	(31		)	(34		)	(30		)
Average tangible common equity ⁽¹⁶⁾	$	5,658		$	5,832		$	5,946		$	6,132		$	6,245		$	5,692		$	6,162
Impact on average equity of non-GAAP adjustments:
Acquisition and disposition-related expenses ⁽²⁾	NA			NA			—			NA			NA			10			NA
Goodwill impairment ⁽⁴⁾	NA			NA			9			NA			NA			—			NA
Adjusted average tangible common equity ⁽¹⁶⁾	NA			NA			$	5,955		NA			NA			$	5,702		NA

Return on equity ⁽⁹⁾	16.7		%	16.1		%	16.2		%	16.0		%	9.9		%	16.2		%	13.0		%
Adjusted return on equity ⁽⁹⁾	NA			NA			17.3		%	NA			NA			16.7		%	NA
Return on tangible common equity ⁽⁹⁾	18.5		%	17.8		%	17.8		%	17.5		%	10.8		%	17.9		%	14.2		%
Adjusted return on tangible common equity ⁽⁹⁾	NA			NA			19.1		%	NA			NA			18.4		%	NA

Please refer to the footnotes at the end of this supplement for additional information.

RAYMOND JAMES FINANCIAL, INC.

Footnotes


1.	Other revenues for the three and six months ended March 31, 2020 included $39 million and $41 million, respectively, of private equity valuation losses, which are included in our Other segment. Of these losses, approximately $22 million and $23 million, respectively, were attributable to noncontrolling interests and are presented as an offset in Other expenses.


2.	The six months ended March 31, 2019 included a $15 million loss in our Capital Markets segment on the sale of our operations related to research, sales and trading of European equities.


3.	The offset for the net gain/(loss) attributable to noncontrolling interests is in Other expenses. Prior period results have been conformed to the current presentation.


4.	The three months ended September 30, 2019 included a $19 million goodwill impairment charge associated with our Canadian Capital Markets business.

Earnings per common share is computed by dividing net income (less allocation of earnings and dividends to participating securities) by weighted-average common shares outstanding (basic or diluted as applicable) for each respective period or, in the case of adjusted earnings per share, computed by dividing adjusted net income (less allocation of earnings and dividends to participating securities) by weighted-average common shares outstanding (basic or diluted as applicable) for each respective period.

Book value per share is computed by dividing total equity attributable to Raymond James Financial, Inc. by the number of common shares outstanding at the end of each respective period or, in the case of tangible book value per share, computed by dividing tangible common equity by the number of common shares outstanding at the end of each respective period. Tangible common equity is defined as total equity attributable to Raymond James Financial, Inc. less goodwill and intangible assets, net of related deferred taxes.

These are non-GAAP financial measures. See the schedules on the previous pages of this document for a reconciliation of our non-GAAP financial measures to the most directly comparable GAAP measures and for more information on these measures. There were no non-GAAP adjustments to earnings for the three months ended March 31, 2019, June 30, 2019, December 31, 2019 and March 31, 2020, as well as the six months ended March 31, 2020. Therefore, percent changes for earnings-related non-GAAP financial measures are calculated based on GAAP results for the six months ended March 31, 2020 as compared to non-GAAP results for the six months ended March 31, 2019.


8.	Estimated.

Return on equity is computed by dividing annualized net income by average equity for each respective period or, in the case of return on tangible common equity, computed by dividing annualized net income by average tangible common equity for each respective period. Adjusted return on equity is computed by dividing annualized adjusted net income by adjusted average equity for each respective period, or in the case of adjusted return on tangible common equity, computed by dividing annualized adjusted net income by adjusted average tangible common equity for each respective period.


10.	Pre-tax margin is computed by dividing pre-tax income by net revenues for each respective period or, in the case of adjusted pre-tax margin, computed by dividing adjusted pre-tax income by net revenues for each respective period.


11.	Total compensation ratio is computed by dividing compensation, commissions and benefits expense by net revenues for each respective period.


12.	We earn fees from RJBDP, a multi-bank sweep program in which clients’ cash deposits in their brokerage accounts are swept into interest-bearing deposit accounts at Raymond James Bank and various third-party banks. Fees earned by Private Client Group on Raymond James Bank deposits are eliminated in consolidation.


13.	Money market funds were discontinued as a sweep option during the third fiscal quarter of 2019. Balances in those funds were converted to RJBDP or reinvested by the client.


14.	Average yield on RJBDP - third-party banks is computed by dividing annualized RJBDP fees - third-party banks, which are net of the interest expense paid to clients by the third-party banks, by the average daily RJBDP balance at third-party banks.


15.	The Other segment includes the results of our private equity investments, interest income on certain corporate cash balances, and certain corporate overhead costs of Raymond James Financial, Inc., including the interest costs on our public debt.

16.

Average equity is computed by adding the total equity attributable to Raymond James Financial, Inc. 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. For the year-to-date period, computed by adding the total equity attributable to Raymond James Financial, Inc. 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 equity is computed by adjusting for the impact on average 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.

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