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

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EX-99.3 - EX-99.3 EARNINGS PRESENTATION THIRD QUARTER FISCAL YEAR 2020 OF RJF - RAYMOND JAMES FINANCIAL INC	fiscal3q20earningspresen.htm
EX-99.1 - EX-99.1 PRESS RELEASE DATED JULY 29, 2020 - RAYMOND JAMES FINANCIAL INC	rjf20200630q320earnings.htm
8-K - 8-K - RAYMOND JAMES FINANCIAL INC	rjf-20200729.htm

EARNINGS RELEASE FINANCIAL SUPPLEMENT

THIRD QUARTER

FISCAL YEAR 2020 RESULTS

RAYMOND JAMES FINANCIAL, INC.

Consolidated Statements of Income (Unaudited)


	Three months ended																		% change from		Nine months ended
in millions, except per share amounts	June 30, 2019		September 30, 2019		December 31, 2019		March 31, 2020		June 30, 2020		June 30, 2019		March 31, 2020		June 30, 2019		June 30, 2020		% change
Revenues:
Asset management and related administrative fees	$	879	$	924	$	955	$	1,006	$	867	(1)	%	(14)	%	$	2,527	$	2,828	12	%
Brokerage revenues:
Securities commissions	358		355		363		410		343		(4)	%	(16)	%	1,095		1,116		2	%
Principal transactions	93		95		97		105		143		54	%	36	%	262		345		32	%
Total brokerage revenues	451		450		460		515		486		8	%	(6)	%	1,357		1,461		8	%
Account and service fees	183		179		178		172		134		(27)	%	(22)	%	559		484		(13)	%
Investment banking	139		157		141		148		139		—		(6)	%	439		428		(3)	%
Interest income	321		320		297		285		217		(32)	%	(24)	%	961		799		(17)	%
Other ⁽¹⁾	27		55		29		(15)		33		22	%	NM		95		47		(51)	%
Total revenues	2,000		2,085		2,060		2,111		1,876		(6)	%	(11)	%	5,938		6,047		2	%
Interest expense	(73)		(62)		(51)		(43)		(42)		(42)	%	(2)	%	(221)		(136)		(38)	%
Net revenues	1,927		2,023		2,009		2,068		1,834		(5)	%	(11)	%	5,717		5,911		3	%
Non-interest expenses:
Compensation, commissions and benefits	1,277		1,320		1,351		1,422		1,277		—		(10)	%	3,767		4,050		8	%
Non-compensation expenses:
Communications and information processing	92		95		94		99		100		9	%	1	%	278		293		5	%
Occupancy and equipment	55		59		57		56		55		—		(2)	%	159		168		6	%
Business development	57		53		44		41		21		(63)	%	(49)	%	141		106		(25)	%
Investment sub-advisory fees	24		24		26		26		23		(4)	%	(12)	%	70		75		7	%
Professional fees	22		24		21		23		24		9	%	4	%	61		68		11	%
Bank loan loss provision/(benefit)	(5)		6		(2)		109		81		NM		(26)	%	16		188		1,075	%
Acquisition and disposition-related expenses ⁽²⁾	—		—		—		—		—		—		—		15		—		(100)	%
Other ^{(1) (3) (4)}	63		88		59		53		55		(13)	%	4	%	189		167		(12)	%
Total non-compensation expenses	308		349		299		407		359		17	%	(12)	%	929		1,065		15	%
Total non-interest expenses	1,585		1,669		1,650		1,829		1,636		3	%	(11)	%	4,696		5,115		9	%
Pre-tax income	342		354		359		239		198		(42)	%	(17)	%	1,021		796		(22)	%
Provision for income taxes	83		89		91		70		26		(69)	%	(63)	%	252		187		(26)	%
Net income	$	259	$	265	$	268	$	169	$	172	(34)	%	2	%	$	769	$	609	(21)	%

Earnings per common share – basic ⁽⁵⁾	$	1.84	$	1.90	$	1.93	$	1.22	$	1.25	(32)	%	2	%	$	5.42	$	4.41	(19)	%
Earnings per common share – diluted ⁽⁵⁾	$	1.80	$	1.86	$	1.89	$	1.20	$	1.23	(32)	%	3	%	$	5.30	$	4.33	(18)	%
Weighted-average common shares outstanding – basic	140.4		138.6		138.3		138.4		137.1		(2)	%	(1)	%	141.8		137.9		(3)	%
Weighted-average common and common equivalent shares outstanding – diluted	143.6		141.8		141.5		141.1		139.4		(3)	%	(1)	%	144.8		140.5		(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	June 30, 2019			September 30, 2019			December 31, 2019			March 31, 2020			June 30, 2020				June 30, 2019		March 31, 2020
Total assets	$	38,677		$	38,830		$	40,154		$	49,809		$	44,682			16	%	(10)	%
Total equity attributable to Raymond James Financial, Inc.	$	6,502		$	6,581		$	6,842		$	6,798		$	6,965			7	%	2	%
Book value per share ⁽⁶⁾	$	46.54		$	47.76		$	49.26		$	49.69		$	50.84			9	%	2	%
Tangible book value per share ^{(6) (7)}	$	42.18		$	43.53		$	45.10		$	45.50		$	46.69			11	%	3	%

Capital ratios:
Tier 1 capital	24.2		%	24.8		%	24.8		%	24.1		%	24.8		%	⁽⁸⁾
Total capital	25.2		%	25.8		%	25.7		%	25.3		%	26.0		%	⁽⁸⁾
Tier 1 leverage	15.7		%	15.7		%	15.8		%	14.2		%	14.5		%	⁽⁸⁾

	Three months ended																									% change from		Nine months ended
	June 30, 2019			September 30, 2019			December 31, 2019			March 31, 2020			June 30, 2020				June 30, 2019		March 31, 2020		June 30, 2019			June 30, 2020		% change
Adjusted pre-tax income ⁽⁷⁾	NA			$	373		NA			NA			NA				NA		NA		$	1,036		NA		(23)	%
Adjusted net income ⁽⁷⁾	NA			$	284		NA			NA			NA				NA		NA		$	784		NA		(22)	%
Adjusted earnings per common share - basic ^{(5) (7)}	NA			$	2.04		NA			NA			NA				NA		NA		$	5.52		NA		(20)	%
Adjusted earnings per common share - diluted ^{(5) (7)}	NA			$	2.00		NA			NA			NA				NA		NA		$	5.41		NA		(20)	%
Return on equity ⁽⁹⁾	16.1		%	16.2		%	16.0		%	9.9		%	10.0		%						16.2		%	11.9	%
Adjusted return on equity ^{(7) (9)}	NA			17.3		%	NA			NA			NA								16.4		%	NA
Return on tangible common equity ^{(7) (9)}	17.8		%	17.8		%	17.5		%	10.8		%	10.9		%						17.9		%	13.1	%
Adjusted return on tangible common equity ^{(7) (9)}	NA			19.1		%	NA			NA			NA								18.2		%	NA
Pre-tax margin ⁽¹⁰⁾	17.7		%	17.5		%	17.9		%	11.6		%	10.8		%						17.9		%	13.5	%
Adjusted pre-tax margin ^{(7) (10)}	NA			18.4		%	NA			NA			NA								18.1		%	NA
Total compensation ratio ⁽¹¹⁾	66.3		%	65.2		%	67.2		%	68.8		%	69.6		%						65.9		%	68.5	%
Effective tax rate	24.4		%	25.1		%	25.3		%	29.3		%	13.1		%						25.1		%	23.5	%

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
	June 30, 2019			September 30, 2019			December 31, 2019			March 31, 2020			June 30, 2020			June 30, 2019		March 31, 2020
Client asset metrics ($ in billions):
Client assets under administration	$	824.2		$	838.3		$	896.0		$	773.9		$	876.9		6	%	13	%
Private Client Group assets under administration	$	787.4		$	798.4		$	855.2		$	734.0		$	833.1		6	%	14	%
Private Client Group assets in fee-based accounts	$	398.0		$	409.1		$	444.2		$	383.5		$	443.0		11	%	16	%
Financial assets under management	$	143.1		$	143.1		$	151.7		$	128.2		$	145.4		2	%	13	%

Clients' domestic cash sweep balances ($ in millions):
Raymond James Bank Deposit Program (“RJBDP”): ⁽¹²⁾
Raymond James Bank	$	21,600		$	21,649		$	21,891		$	28,711		$	24,101		12	%	(16)	%
Third-party banks	14,425			14,043			15,061			20,379			24,661			71	%	21	%
Subtotal RJBDP	36,025			35,692			36,952			49,090			48,762			35	%	(1)	%

Client Interest Program	2,130			2,022			2,528			3,782			3,157			48	%	(17)	%
Total clients’ domestic cash sweep balances	$	38,155		$	37,714		$	39,480		$	52,872		$	51,919		36	%	(2)	%

	Three months ended																			Nine months ended
	June 30, 2019			September 30, 2019			December 31, 2019			March 31, 2020			June 30, 2020			June 30, 2019		June 30, 2020
Average yield on RJBDP - third-party banks ⁽¹³⁾	1.95		%	1.83		%	1.64		%	1.33		%	0.33		%	1.90	%	0.97	%

	As of																			% change from
	June 30, 2019			September 30, 2019			December 31, 2019			March 31, 2020			June 30, 2020			June 30, 2019		March 31, 2020
Private Client Group financial advisors:
Employees	3,228			3,301			3,331			3,376			3,379			5	%	—
Independent contractors	4,676			4,710			4,729			4,772			4,776			2	%	—
Total advisors	7,904			8,011			8,060			8,148			8,155			3	%	—

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		Nine months ended
$ in millions	June 30, 2019		September 30, 2019		December 31, 2019		March 31, 2020		June 30, 2020		June 30, 2019		March 31, 2020		June 30, 2019		June 30, 2020		% change
Revenues:
Asset management and related administrative fees	$	718	$	757	$	782	$	833	$	715	—		(14)	%	$	2,063	$	2,330	13	%
Brokerage revenues:
Mutual and other fund products	147		150		144		163		131		(11)	%	(20)	%	449		438		(2)	%
Insurance and annuity products	105		104		101		99		88		(16)	%	(11)	%	308		288		(6)	%
Equities, ETFs, and fixed income products	94		87		102		122		100		6	%	(18)	%	291		324		11	%
Total brokerage revenues	346		341		347		384		319		(8)	%	(17)	%	1,048		1,050		—
Account and service fees:
Mutual fund and annuity service fees	85		84		90		88		82		(4)	%	(7)	%	250		260		4	%
RJBDP fees: ⁽¹²⁾
Third-party banks	67		65		58		51		20		(70)	%	(61)	%	215		129		(40)	%
Raymond James Bank	44		46		47		48		43		(2)	%	(10)	%	127		138		9	%
Client account and other fees	32		30		29		35		32		—		(9)	%	92		96		4	%
Total account and service fees	228		225		224		222		177		(22)	%	(20)	%	684		623		(9)	%
Investment banking	10		7		11		11		7		(30)	%	(36)	%	25		29		16	%
Interest income	56		55		49		45		31		(45)	%	(31)	%	170		125		(26)	%
All other	3		7		9		7		4		33	%	(43)	%	19		20		5	%
Total revenues	1,361		1,392		1,422		1,502		1,253		(8)	%	(17)	%	4,009		4,177		4	%
Interest expense	(10)		(11)		(8)		(7)		(4)		(60)	%	(43)	%	(31)		(19)		(39)	%
Net revenues	1,351		1,381		1,414		1,495		1,249		(8)	%	(16)	%	3,978		4,158		5	%
Non-interest expenses:
Financial advisor compensation and benefits	805		832		857		915		783		(3)	%	(14)	%	2,358		2,555		8	%
Administrative compensation and benefits	237		233		247		245		235		(1)	%	(4)	%	700		727		4	%
Total compensation, commissions and benefits	1,042		1,065		1,104		1,160		1,018		(2)	%	(12)	%	3,058		3,282		7	%
Non-compensation expenses	169		173		157		165		140		(17)	%	(15)	%	484		462		(5)	%
Total non-interest expenses	1,211		1,238		1,261		1,325		1,158		(4)	%	(13)	%	3,542		3,744		6	%
Pre-tax income	$	140	$	143	$	153	$	170	$	91	(35)	%	(46)	%	$	436	$	414	(5)	%

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		Nine months ended
$ in millions	June 30, 2019		September 30, 2019		December 31, 2019		March 31, 2020		June 30, 2020		June 30, 2019		March 31, 2020		June 30, 2019		June 30, 2020		% change
Revenues:
Brokerage revenues:
Fixed income	$	73	$	82	$	81	$	90	$	125	71	%	39	%	$	201	$	296	47	%
Equity	31		26		34		40		41		32	%	3	%	105		115		10	%
Total brokerage revenues	104		108		115		130		166		60	%	28	%	306		411		34	%
Investment banking:
Merger & acquisition and advisory	80		93		60		72		60		(25)	%	(17)	%	286		192		(33)	%
Equity underwriting	27		28		39		43		35		30	%	(19)	%	72		117		63	%
Debt underwriting	22		29		31		22		37		68	%	68	%	56		90		61	%
Total investment banking	129		150		130		137		132		2	%	(4)	%	414		399		(4)	%
Interest income	10		9		8		10		4		(60)	%	(60)	%	29		22		(24)	%
Tax credit fund revenues	16		37		18		12		20		25	%	67	%	49		50		2	%
All other	2		6		3		7		3		50	%	(57)	%	9		13		44	%
Total revenues	261		310		274		296		325		25	%	10	%	807		895		11	%
Interest expense	(10)		(8)		(6)		(6)		(2)		(80)	%	(67)	%	(26)		(14)		(46)	%
Net revenues	251		302		268		290		323		29	%	11	%	781		881		13	%
Non-interest expenses:
Compensation, commissions and benefits	160		179		166		184		195		22	%	6	%	486		545		12	%
Non-compensation expenses ^{(2) (3) (4)}	67		90		73		78		66		(1)	%	(15)	%	218		217		—
Total non-interest expenses	227		269		239		262		261		15	%	—		704		762		8	%
Pre-tax income	$	24	$	33	$	29	$	28	$	62	158	%	121	%	$	77	$	119	55	%

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		Nine months ended
$ in millions	June 30, 2019		September 30, 2019		December 31, 2019		March 31, 2020		June 30, 2020		June 30, 2019		March 31, 2020		June 30, 2019		June 30, 2020		% change
Revenues:
Asset management and related administrative fees:
Managed programs	$	120	$	121	$	125	$	124	$	109	(9)	%	(12)	%	$	346	$	358	3	%
Administration and other	45		49		51		53		48		7	%	(9)	%	129		152		18	%
Total asset management and related administrative fees	165		170		176		177		157		(5)	%	(11)	%	475		510		7	%
Account and service fees	8		4		5		4		3		(63)	%	(25)	%	27		12		(56)	%
All other	4		4		3		3		3		(25)	%	—		11		9		(18)	%
Net revenues	177		178		184		184		163		(8)	%	(11)	%	513		531		4	%
Non-interest expenses:
Compensation, commissions and benefits	47		44		45		45		44		(6)	%	(2)	%	135		134		(1)	%
Non-compensation expenses ⁽³⁾	65		65		66		66		59		(9)	%	(11)	%	194		191		(2)	%
Total non-interest expenses	112		109		111		111		103		(8)	%	(7)	%	329		325		(1)	%
Pre-tax income	$	65	$	69	$	73	$	73	$	60	(8)	%	(18)	%	$	184	$	206	12	%

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		Nine months ended
$ in millions	June 30, 2019		September 30, 2019		December 31, 2019		March 31, 2020		June 30, 2020		June 30, 2019		March 31, 2020		June 30, 2019		June 30, 2020		% change
Revenues:
Interest income	$	246	$	243	$	231	$	223	$	181	(26)	%	(19)	%	$	732	$	635	(13)	%
Interest expense	(38)		(33)		(21)		(18)		(12)		(68)	%	(33)	%	(122)		(51)		(58)	%
Net interest income	208		210		210		205		169		(19)	%	(18)	%	610		584		(4)	%
All other	7		6		6		5		9		29	%	80	%	20		20		—
Net revenues	215		216		216		210		178		(17)	%	(15)	%	630		604		(4)	%
Non-interest expenses:
Compensation and benefits	13		13		12		13		13		—		—		36		38		6	%
Non-compensation expenses:
Loan loss provision/(benefit)	(5)		6		(2)		109		81		NM		(26)	%	16		188		1,075	%
RJBDP fees to Private Client Group ⁽¹²⁾	44		46		47		48		43		(2)	%	(10)	%	127		138		9	%
All other	25		20		24		26		27		8	%	4	%	67		77		15	%
Total non-compensation expenses	64		72		69		183		151		136	%	(17)	%	210		403		92	%
Total non-interest expenses	77		85		81		196		164		113	%	(16)	%	246		441		79	%
Pre-tax income	$	138	$	131	$	135	$	14	$	14	(90)	%	—		$	384	$	163	(58)	%

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

RAYMOND JAMES FINANCIAL, INC.

Segment Results - Other ⁽¹⁴⁾ (Unaudited)


	Three months ended																		% change from		Nine months ended
$ in millions	June 30, 2019		September 30, 2019		December 31, 2019		March 31, 2020		June 30, 2020		June 30, 2019		March 31, 2020		June 30, 2019		June 30, 2020		% change
Revenues:
Interest income	$	12	$	21	$	12	$	12	$	3	(75)	%	(75)	%	$	42	$	27	(36)	%
Gains/(losses) on private equity investments ⁽¹⁾	2		6		(2)		(39)		1		(50)	%	NM		8		(40)		NM
All other	1		(2)		2		—		2		100	%	NM		5		4		(20)	%
Total revenues	15		25		12		(27)		6		(60)	%	NM		55		(9)		NM
Interest expense	(19)		(18)		(20)		(17)		(26)		37	%	53	%	(57)		(63)		11	%
Net revenues	(4)		7		(8)		(44)		(20)		(400)	%	55	%	(2)		(72)		(3,500)	%
Non-interest expenses ^{(1) (3)}	21		29		23		2		9		(57)	%	350	%	58		34		(41)	%
Pre-tax loss	$	(25)	$	(22)	$	(31)	$	(46)	$	(29)	(16)	%	37	%	$	(60)	$	(106)	(77)	%

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	June 30, 2019			September 30, 2019			December 31, 2019			March 31, 2020			June 30, 2020				June 30, 2019		March 31, 2020
Total assets	$	25,668		$	25,705		$	26,469		$	33,656		$	29,066			13	%	(14)	%
Total equity	$	2,198		$	2,248		$	2,300		$	2,263		$	2,279			4	%	1	%
Bank loans, net	$	20,691		$	20,891		$	21,296		$	21,788		$	21,223			3	%	(3)	%
Allowance for loan losses	$	215		$	218		$	216		$	324		$	334			55	%	3	%
Allowance for loan losses as a % of loans held for investment	1.03		%	1.04		%	1.01		%	1.47		%	1.56		%
Total nonperforming assets	$	56		$	46		$	41		$	27		$	23			(59)	%	(15)	%
Nonperforming assets as a % of total assets	0.22		%	0.18		%	0.16		%	0.08		%	0.08		%
Total criticized loans	$	197		$	285		$	349		$	387		$	733			272	%	89	%
Criticized loans as a % of loans held for investment	0.95		%	1.36		%	1.64		%	1.76		%	3.41		%

Capital ratios:
Tier 1 capital	12.8		%	13.2		%	13.3		%	12.7		%	12.8		%	⁽⁸⁾
Total capital	14.1		%	14.5		%	14.5		%	13.9		%	14.1		%	⁽⁸⁾
Tier 1 leverage	8.8		%	8.8		%	8.8		%	8.1		%	7.6		%	⁽⁸⁾


	Three months ended																								% change from		Nine months ended
$ in millions	June 30, 2019			September 30, 2019			December 31, 2019			March 31, 2020			June 30, 2020			June 30, 2019	March 31, 2020		June 30, 2019			June 30, 2020			% change
Bank loan loss provision/(benefit)	$	(5)		$	6		$	(2)		$	109		$	81		NM	(26)	%	$	16		$	188		1,075	%
Net charge-offs/(recoveries)	$	(1)		$	2		$	—		$	—		$	72		NM	NM		$	4		$	72		1,700	%
Net interest margin (net yield on interest-earning banking assets)	3.37		%	3.30		%	3.23		%	3.02		%	2.29		%				3.32		%	2.82		%

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			Nine months ended
$ in millions, except per share amounts	September 30, 2019			June 30, 2019
Net income	$	265		$	769
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		$	784

Pre-tax income	$	354		$	1,021
Pre-tax impact of non-GAAP adjustments (as detailed above)	19			15
Adjusted pre-tax income	$	373		$	1,036

Pre-tax margin ⁽¹⁰⁾	17.5		%	17.9		%




Adjusted pre-tax margin ⁽¹⁰⁾	18.4		%	18.1		%

Earnings per common share ⁽⁵⁾
Basic	$	1.90		$	5.42




Adjusted basic	$	2.04		$	5.52
Diluted	$	1.86		$	5.30




Adjusted diluted	$	2.00		$	5.41

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	June 30, 2019		September 30, 2019		December 31, 2019		March 31, 2020		June 30, 2020
Total equity attributable to Raymond James Financial, Inc.	$	6,502	$	6,581	$	6,842	$	6,798	$	6,965
Less non-GAAP adjustments:
Goodwill and identifiable intangible assets, net	635		611		609		603		602
Deferred tax liabilities, net	(26)		(28)		(31)		(30)		(33)
Tangible common equity attributable to Raymond James Financial, Inc.	$	5,893	$	5,998	$	6,264	$	6,225	$	6,396
Common shares outstanding	139.7		137.8		138.9		136.8		137.0
Book value per share ⁽⁶⁾	$	46.54	$	47.76	$	49.26	$	49.69	$	50.84
Tangible book value per share ⁽⁶⁾	$	42.18	$	43.53	$	45.10	$	45.50	$	46.69


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

Average equity ⁽¹⁵⁾	$	6,434		$	6,542		$	6,712		$	6,820		$	6,882		$	6,345		$	6,797
Impact on average equity of non-GAAP adjustments:
Acquisition and disposition-related expenses ⁽²⁾	NA			—			NA			NA			NA			11			NA
Goodwill impairment ⁽⁴⁾	NA			9			NA			NA			NA			—			NA
Adjusted average equity ⁽¹⁵⁾	NA			$	6,551		NA			NA			NA			$	6,356		NA

Average equity ⁽¹⁵⁾	$	6,434		$	6,542		$	6,712		$	6,820		$	6,882		$	6,345		$	6,797
Less:
Average goodwill and identifiable intangible assets, net	633			623			610			606			603			634			606
Average deferred tax liabilities, net	(31)			(27)			(30)			(31)			(32)			(32)			(30)

Average tangible common equity ⁽¹⁵⁾	$	5,832		$	5,946		$	6,132		$	6,245		$	6,311		$	5,743		$	6,221
Impact on average equity of non-GAAP adjustments:
Acquisition and disposition-related expenses ⁽²⁾	NA			—			NA			NA			NA			11			NA
Goodwill impairment ⁽⁴⁾	NA			9			NA			NA			NA			—			NA

Adjusted average tangible common equity ⁽¹⁵⁾	NA			$	5,955		NA			NA			NA			$	5,754		NA

Return on equity ⁽⁹⁾	16.1		%	16.2		%	16.0		%	9.9		%	10.0		%	16.2		%	11.9		%
Adjusted return on equity ⁽⁹⁾	NA			17.3		%	NA			NA			NA			16.4		%	NA
Return on tangible common equity ⁽⁹⁾	17.8		%	17.8		%	17.5		%	10.8		%	10.9		%	17.9		%	13.1		%
Adjusted return on tangible common equity ⁽⁹⁾	NA			19.1		%	NA			NA			NA			18.2		%	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 months ended March 31, 2020 and the nine months ended June 30, 2020 each included approximately $40 million of private equity valuation losses, which are included in our Other segment. Of these losses, approximately $23 million were attributable to noncontrolling interests and are presented as an offset in Other expenses.

2.The nine months ended June 30, 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.

5.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.

6.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.

7.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 June 30, 2019, December 31, 2019, March 31, 2020 and June 30, 2020, as well as the nine months ended June 30, 2020. Therefore, percent changes for earnings-related non-GAAP financial measures are calculated based on GAAP results for the nine months ended June 30, 2020 as compared to non-GAAP results for the nine months ended June 30, 2019.

8.Estimated.

9.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.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 balances at third-party banks.

14.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.

15.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 four, 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 four. 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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