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727.567.2824
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News & Media
October 21, 2015

Raymond James Financial reports 4th quarter and fiscal year 2015 results

  • Record quarterly net revenues of $1.34 billion
  • Quarterly net income of $129.2 million, or $0.88 per diluted share
  • Record annual net revenues of $5.20 billion and record annual net income of $502.1 million, or $3.43 per diluted share
  • Private Client Group financial advisors reach a record of 6,596, an increase of 331 over last year’s September and 89 over the preceding quarter
  • Record net loans of $13.0 billion, increases of 18 percent over September 2014 and $934 million over June 2015

ST. PETERSBURG, Fla - Raymond James Financial, Inc. (NYSE: RJF) today reported record quarterly net revenues of $1.34 billion and quarterly net income of $129.2 million, or $0.88 per diluted share, for the fiscal fourth quarter ended September 30, 2015. Net revenues in the quarter grew 4 percent over the prior year’s fiscal fourth quarter and 2 percent over the preceding quarter. Net income in the quarter declined 5 percent compared to the record set in the prior year’s fiscal fourth quarter and 3 percent compared to the preceding quarter. The quarterly decline in net income was largely attributable to a substantial increase in the loan loss provision associated with significant loan growth at Raymond James Bank.

For fiscal year 2015, record net revenues of $5.20 billion and record pre-tax income of $798.2 million both increased 7 percent over fiscal 2014.

“We are very proud that all of our core segments generated record net revenues in fiscal 2015,” said CEO Paul Reilly. “Additionally, despite significant growth investments made during the year, the Private Client Group segment, Asset Management segment and Raymond James Bank generated record pre-tax income in fiscal 2015.”

Segment Results

Private Client Group

  • Record quarterly net revenues of $899.9 million, up 4 percent compared to the prior year’s fiscal fourth quarter and 1 percent compared to the preceding quarter
  • Quarterly pre-tax income of $87.7 million, down 12 percent compared to the record set in the prior year’s fiscal fourth quarter but up 2 percent compared to the preceding quarter
  • Record annual net revenues of $3.51 billion and record annual pre-tax income of $342.2 million
  • Second best year for financial advisor recruiting
  • Private Client Group assets under administration of $453.3 billion, up 1 percent over September 2014 but down 5 percent compared to June 2015

For the quarter, revenue growth from fee-based accounts was partially offset by a soft quarter for new issue activity. Financial advisor recruiting and retention results remain at high levels, but declines in the equity markets caused client assets in the segment to decline 5 percent compared to the preceding quarter.

For fiscal 2015, record results in the segment were driven by strong growth in assets in fee-based accounts and a significant net increase in the number of financial advisors to a record 6,596. Compared to fiscal 2014, the pre-tax margin in the segment declined slightly to 9.8 percent of net revenues, which was driven by the upfront costs associated with adding new advisors as well as continued investments in technology, products and services to help advisors expand their businesses.

“Our intense focus on serving financial advisors and their clients led to another record year of revenues and earnings in the Private Client Group segment,” Reilly explained. “We continue to experience significant interest from prospective financial advisors who are attracted by our unique culture and robust platform.”

Capital Markets

  • Quarterly net revenues of $259.9 million and quarterly pre-tax income of $40.2 million
  • Record annual net revenues of $960.0 million and the second highest annual pre-tax income of $107.0 million 
  • Record annual net revenues driven by records for both M&A revenues and tax credit funds syndication fees as well as a 15 percent increase in fixed income commissions

While heightened equity market volatility during the quarter helped institutional equity commissions increase 15 percent over the preceding quarter, the volatility also created a significant headwind for equity underwriting activity, which declined 44 percent compared to the September 2014 quarter. Despite the softness in equity underwriting revenues, total investment banking revenues of $94.9 million represented the second best quarterly result behind the record set in the September 2014 quarter. Net trading profits grew 14 percent over the year-ago September quarter, driven by increased municipal trading results.

For the fiscal year, M&A revenues of $162 million and tax credit funds syndication fees of $44.6 million were both new records. Meanwhile, equity underwriting revenues declined by 26 percent, which was attributable to market-driven weakness in both the energy and real estate sectors. In the Fixed Income division, commissions increased 15 percent, helped by a strong year in the public finance business.

“The results achieved in the Capital Markets segment were satisfactory given the challenging equity underwriting environment and the higher-than-normal level of hiring during the year,” said Reilly. “Our activity levels in M&A and public finance remain strong.”

Asset Management

  • Record quarterly net revenues of $99.8 million, up 5 percent compared to the prior year’s fiscal fourth quarter and 1 percent compared to the preceding quarter
  • Quarterly pre-tax income of $32.6 million, down 8 percent compared to the prior year’s fiscal fourth quarter and up 3 percent compared to the preceding quarter
  • Record annual net revenues of $392.3 million and record annual pre-tax income of $135.1 million
  • Financial assets under management of $65.2 billion, up 1 percent compared to September 2014 but down 7 percent compared to June 2015

Financial assets under management in the quarter were negatively impacted by net outflows and lower equity markets, as the S&P 500 declined 7 percent during the quarter.

For the fiscal year, growth in the Private Client Group as well as increased penetration of assets in fee-based accounts lifted financial assets under management in the segment.

“We remain committed to expanding the Asset Management segment’s product offering, both organically and through acquisitions,” added Reilly. “Continued Private Client Group recruiting momentum also bodes well for growth in this segment.”

Raymond James Bank

  • Record quarterly net revenues of $107.0 million, an increase of 15 percent compared to the prior year’s fiscal fourth quarter and 3 percent compared to the preceding quarter
  • Quarterly pre-tax income of $65.1 million, a 2 percent increase compared to the prior year’s fiscal fourth quarter but down 17 percent compared to the record set in the preceding quarter
  • Record annual net revenues of $414.3 million and record annual pre-tax income of $278.7 million, representing increases of 18 percent and 15 percent over fiscal 2014, respectively

Compared to the preceding quarter, the Bank’s pre-tax income declined 17 percent, as the substantial increase in net loans contributed to a $13.3 million loan loss provision compared to a $3 million benefit in the preceding quarter. The credit quality of the loan portfolio continues to improve, as the portion of nonperforming assets to the Bank’s total assets decreased to 39 basis points, representing a 30 basis point improvement compared to September 2014 and a 7 basis point improvement compared to June 2015.

For the fiscal year, the Bank generated record net revenues and record pre-tax income, driven by prudent and opportunistic loan growth as well as an improvement in the net interest margin for the year of 9 basis points to 3.07 percent.

Other

For the quarter, total revenues in the Other segment were $10.5 million, representing an $18.4 million decline compared to the preceding quarter, which benefited from a realized gain on the sale of auction rate securities. For the fiscal year, total revenues in the Other segment increased 59 percent to $67.0 million, led by higher gains attributable to private equity investments.

“We are pleased with the record results our advisors and associates achieved in fiscal 2015, and we are excited by the significant opportunities to grow all of our businesses by expanding and strengthening our client relationships,” concluded Reilly.

A conference call to discuss the results will take place tomorrow morning, Thursday, October 22, at 8:15 a.m. ET.  For a listen only connection, please call: 877-671-8037 (conference code: 57955822), or visit raymondjames.com/analystcall for a live audio webcast.  An audio replay of the call will be available until 5:00 p.m. ET on April 15, 2016, on the Investor Relations page of our website at www.raymondjames.com.

About Raymond James Financial, Inc.
Raymond James Financial, Inc. (NYSE: RJF) is a leading diversified financial services company providing private client group, capital markets, asset management, banking and other services to individuals, corporations and municipalities. The company has approximately 6,600 financial advisors serving in excess of 2.7 million client accounts in more than 2,700 locations throughout the United States, Canada and overseas. Total client assets are approximately $480 billion. Public since 1983, the firm has been listed on the New York Stock Exchange since 1986 under the symbol RJF. Additional information is available at www.raymondjames.com.

Forward Looking Statements
Certain statements made in this press release and the associated conference call 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, demand for and pricing of our products, acquisitions and divestitures, anticipated results of litigation and regulatory developments or general economic conditions. In addition, words such as “believes,” “expects,” “anticipates,” “intends,” “plans,” “estimates,” “projects,” “forecasts,” 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 Forms 10-Q, which are available on 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.

Raymond James Financial, Inc.
Selected financial highlights
(Unaudited)
Summary results of operations          
  Three months ended
  September 30,
2015
September 30,
2014
% Change June 30,
2015
% Change
  ($ in thousands, except per share amounts)
Total revenues $1,366,983 $1,310,778 4% $1,348,713 1%
Net revenues $1,340,983 $1,285,091 4% $1,320,989 2%
Pre-tax income $206,816 $212,414 (3)% $208,130 (1)%
Net income $129,186 (5)% $133,195 (3)%
Earnings per common share:          
Basic $0.90 $0.97 (7)% $0.93 (3)%
Diluted $0.88 $0.94 (6)% $0.91 (3)%


  Twelve months ended
  September 30,
2015
September 30,
2014
%
Change
  ($ in thousands, except per share amounts)
Total revenues $5,308,164 $4,965,460 7%
Net revenues $5,200,210 $4,861,369 7%
Pre-tax income $798,174 $748,045 7%
Net income $502,140 $480,248 5%
       
Earnings per common share:      
Basic $3.51 $3.41 3%
Diluted $3.43 $3.32 3%


Raymond James Financial, Inc.
Consolidated Statements of Income
(Unaudited)
  Three months ended
  September 30,
2015
September 30,
2014
%
Change
June 30,
2015
%
Change
  ($ in thousands, except per share amounts)
Revenues:          
     Securities commissions and fees $874,209 $840,165 4% $874,606
     Investment banking 94,894 115,019 (17)% 76,988 23%
     Investment advisory fees 99,226 91,772 8% 96,235 3%
     Interest 139,538 126,009 11% 137,147 2%
     Account and service fees 120,923 111,524 8% 113,866 6%
     Net trading profit 16,355 14,374 14% 16,216 1%
     Other 21,838 11,915 83% 33,655 (35)%
          Total revenues 1,366,983 1,310,778 4% 1,348,713 1%
     Interest expense (26,000) (25,687) 1% (27,724) (6)%
          Net revenues 1,340,983 1,285,091 4% 1,320,989 2%
Non-interest expenses:          
     Compensation, commissions and benefits 903,548 869,893 4% 901,342
     Communications and information processing 70,382 57,996 21% 69,267 2%
     Occupancy and equipment costs 42,129 41,344 2% 40,269 5%
     Clearance and floor brokerage 10,014 10,710 (6)% 9,648 4%
     Business development 39,359 35,682 10% 40,127 (2)%
     Investment sub-advisory fees 15,034 13,928 8% 15,293 (2)%
     Bank loan loss provision (benefit) 13,277 5,483 142% (3,009) NM
     Other 46,105 44,851 3% 46,757 (1)%
          Total non-interest expenses 1,139,848 1,079,887 6% 1,119,694 2%
Income including noncontrolling interests and before provision for income taxes 201,135 205,204 (2)% 201,295
     Provision for income taxes 77,630 76,048 2% 74,935 4%
          Net income including noncontrolling interests 123,505 129,156 (4)% 126,360 (2)%
          Net loss attributable to noncontrolling interests (5,681) (7,210) 21% (6,835) 17%
          Net income attributable to Raymond James Financial, Inc. $129,186 $136,366 (5)% $133,195 (3)%
           
Net income per common share – basic $0.90 $0.97 (7)% $0.93 (3)%
Net income per common share – diluted $0.88 $0.94 (6)% $0.91 (3)%
Weighted-average common shares outstanding – basic 143,172 (1) 140,490   143,252  
Weighted-average common and common equivalent shares outstanding – diluted 146,279 (1) 144,521   146,493  


(1) During August and September 2015, we purchased 1,114,505 shares of our common stock in open market transactions, a total purchase price of $56.9 million, which reflects an average purchase price per share of $51.04. After the effect of these repurchases, approximately $93 million remains on the most recent Board of Directors authorization limit of $150 million for our securities repurchases. Refer to Part II, Item 2 in our Current Report on Form 10-Q filed with the SEC on August 7, 2015 (available at www.sec.gov), for information regarding securities repurchase programs and authorization levels. The effect of the share repurchase on the weighted-average common shares outstanding for the basic and diluted computations for the three months ended September 30, 2015 was to reduce the number of common shares outstanding by 434 thousand shares.


Raymond James Financial, Inc.
Consolidated Statements of Income
(Unaudited)
  Twelve months ended
  September 30,
2015
September 30,
2014
%
Change
  ($ in thousands, except per share amounts)
Revenues:      
     Securities commissions and fees $3,443,038 $3,241,525 6%
     Investment banking 323,660 340,821 (5)%
     Investment advisory fees 385,238 362,362 6%
     Interest 543,207 480,886 13%
     Account and service fees 457,913 407,707 12%
     Net trading profit 58,512 64,643 (9)%
     Other 96,596 67,516 43%
          Total revenues 5,308,164 4,965,460 7%
     Interest expense (107,954) (104,091) 4%
          Net revenues 5,200,210 4,861,369 7%
Non-interest expenses:      
     Compensation, commissions and benefits 3,525,378 3,312,635 6%
     Communications and information processing 266,396 252,694 5%
     Occupancy and equipment costs 163,229 161,683 1%
     Clearance and floor brokerage 42,748 39,875 7%
     Business development 158,966 139,672 14%
     Investment sub-advisory fees 59,569 52,412 14%
     Bank loan loss provision 23,570 13,565 74%
     Other 183,642 172,885 6%
          Total non-interest expenses 4,423,498 4,145,421 7%
Income including noncontrolling interests and before provision for income taxes 776,712 715,948 8%
     Provision for income taxes 296,034 267,797 11%
          Net income including noncontrolling interests 480,678 448,151 7%
          Net loss attributable to noncontrolling interests (21,462) (32,097) 33%
          Net income attributable to Raymond James Financial, Inc. $502,140 $480,248 5%
       
Net income per common share – basic $3.51 $3.41 3%
Net income per common share – diluted $3.43 $3.32 3%
Weighted-average common shares outstanding – basic 142,548 (1) 139,935  
Weighted-average common and common equivalent shares outstanding – diluted 145,939 (1) 143,589  


(1) During August and September 2015, we purchased 1,114,505 shares of our common stock in open market transactions, a total purchase price of $56.9 million, which reflects an average purchase price per share of $51.04.  After the effect of these repurchases, approximately $93 million remains on the most recent Board of Directors authorization limit of $150 million for our securities repurchases.  Refer to Part II, Item 2 in our Current Report on Form 10-Q filed with the SEC on August 7, 2015 (available at www.sec.gov), for information regarding securities repurchase programs and authorization levels.  The effect of the share repurchase on the weighted-average common shares outstanding for the basic and diluted computations for the twelve months ended September 30, 2015 was to reduce the number of common shares outstanding by 109 thousand shares.


Raymond James Financial, Inc.
Segment Results
(Unaudited)
  Three months ended
  September 30,
2015
September 30,
2014
%
Change
June 30,
2015
%
Change
  ($ in thousands)
Total revenues:          
     Private Client Group $901,954 $866,432 (1) 4% $894,727 1%
     Capital Markets 263,289 264,261 (1) 237,680 11%
     Asset Management 99,827 94,918 5% 98,899 1%
     RJ Bank 110,398 95,547 16% 107,244 3%
     Other (2) 10,505 5,148 104% 28,890 (64)%
     Intersegment eliminations (18,990) (15,528)   (18,727)  
          Total revenues $1,366,983 $1,310,778 4% $1,348,713 1%
           
Net revenues:          
     Private Client Group $899,877 $864,286 (1) 4% $892,162 1%
     Capital Markets 259,855 260,392 (1) 233,133 11%
     Asset Management 99,813 94,913 5% 98,848 1%
     RJ Bank 106,994 93,068 15% 103,873 3%
     Other (2) (8,545) (13,906) 39% 9,657 NM
     Intersegment eliminations (17,011) (13,662)   (16,684)  
          Total net revenues $1,340,983 $1,285,091 4% $1,320,989 2%
           
Pre-tax income (loss) (excluding noncontrolling interests):          
     Private Client Group $87,716 $100,180 (12)% $86,363 2%
     Capital Markets 40,221 39,540 2% 18,287 120%
     Asset Management 32,605 35,280 (8)% 31,554 3%
     RJ Bank 65,093 64,057 2% 78,008 (17)%
     Other (2) (18,819) (26,643) 29% (6,082) (209)%
          Pre-tax income (excluding noncontrolling interests) $206,816 $212,414 (3)% $208,130 (1)%


Raymond James Financial, Inc.
Segment Results
(Unaudited)
  Twelve months ended
  September 30,
2015
September 30,
2014
%
Change
  ($ in thousands)
Total revenues:      
     Private Client Group $3,519,558 $3,289,503 (1) 7%
     Capital Markets 975,064 968,635 (1) 1%
     Asset Management 392,378 369,690 6%
     RJ Bank 425,988 360,317 18%
     Other (2) 66,967 42,203 59%
     Intersegment eliminations (71,791) (64,888)  
          Total revenues $5,308,164 $4,965,460 7%
       
Net revenues:      
     Private Client Group $3,507,806 $3,279,883 (1) 7%
     Capital Markets 960,035 953,215 (1) 1%
     Asset Management 392,301 369,666 6%
     RJ Bank 414,295 351,770 18%
     Other (2) (10,198) (35,253) 71%
     Intersegment eliminations (64,029) (57,912)  
          Total net revenues $5,200,210 $4,861,369 7%
       
Pre-tax income (loss) (excluding noncontrolling interests):      
     Private Client Group $342,243 $330,278 4%
     Capital Markets 107,009 130,565 (18)%
     Asset Management 135,050 128,286 5%
     RJ Bank 278,721 242,834 15%
     Other (2) (64,849) (83,918) 23%
          Pre-tax income (excluding noncontrolling interests) $798,174 $748,045 7%


(1) Certain prior period amounts have been reclassified to conform to the current period’s presentation.

(2) The Other segment includes the results of our principal capital and private equity activities as well as certain corporate overhead costs of RJF.


Raymond James Financial, Inc.
Selected key metrics
(Unaudited)
Details of certain key revenue and expense components:          
  Three months ended
  September 30,
2015
September 30,
2014
%
Change
June 30,
2015
%
Change
  ($ in thousands)
Securities commissions and fees:          
PCG segment securities commissions and fees $748,452 $725,791 3% $750,430
Capital Markets segment institutional sales commissions:          
     Equity commissions 62,712 63,806 (2)% 54,575 15%
     Fixed Income commissions 69,261 57,246 21% 75,557 (8)%
All other segments 65 58 12% 75 (13)%
Intersegment eliminations (6,281) (6,736)   (6,031)  
          Total securities commissions and fees $874,209 $840,165 4% $874,606
           
Investment banking revenues:          
Equity:          
     Underwritings $17,947 $32,019 (44)% $22,466 (20)%
     Mergers & acquisitions and advisory fees 42,637 57,353 (26)% 31,136 37%
Fixed Income investment banking revenues 13,742 16,407 (16)% 10,897 26%
Tax credit funds syndication fees 20,413 9,244 121% 12,345 65%
Other 155 (4) NM 144 8%
     Total investment banking revenues $94,894 $115,019 (17)% $76,988 23%
           
Other revenues:          
Realized/unrealized gain attributable to private equity investments $12,008 $4,486 168% $13,126 (9)%
Realized gain on sale or redemptions of auction rate securities 920 NM 11,040 (2) NM
All other revenues 9,830 6,509 51% 9,489 4%
     Total other revenues $21,838 $11,915 83% $33,655 (35)%
           
Other expenses:          
Losses of real estate partnerships held by consolidated variable interest entities (1) $8,636 $7,524 15% $10,600 (19)%
All other expenses 37,469 37,327 36,157 4%
     Total other expenses $46,105 $44,851 3% $46,757 (1)%
           
Net (loss) income attributable to noncontrolling interests:          
Private equity investments $3,021 $(127) NM $2,659 14%
Consolidation of low-income housing tax credit funds (10,173) (8,371) (22)% (10,898) 7%
Other 1,471 1,288 14% 1,404 5%
     Total net loss attributable to noncontrolling interests $(5,681) $(7,210) 21% $(6,835) 17%


Raymond James Financial, Inc.
Selected key metrics
(Unaudited)
Details of certain key revenue and expense components:      
  Twelve months ended
  September 30,
2015
September 30,
2014
%
Change
  ($ in thousands)
Securities commissions and fees:      
PCG segment securities commissions and fees $2,936,502 $2,758,431 6%
Capital Markets segment institutional sales commissions:      
     Equity commissions 247,414 260,934 (5)%
     Fixed Income commissions 283,828 246,131 15%
All other segments 285 306 (7)%
Intersegment eliminations (24,991) (24,277)  
          Total securities commissions and fees $3,443,038 $3,241,525 6%
       
Investment banking revenues:      
Equity:      
     Underwritings $74,229 $100,091 (26)%
     Mergers & acquisitions and advisory fees 162,270 151,000 7%
Fixed Income investment banking revenues 42,149 55,275 (24)%
Tax credit funds syndication fees 44,608 34,473 29%
Other 404 (18) NM
          Total investment banking revenues $323,660 $340,821 (5)%
       
Other revenues:      
Realized/unrealized gain attributable to private equity investments $47,654 $21,694 120%
Realized gain on sale or redemptions of auction rate securities 11,067 (2) 7,090 (3) 56%
All other revenues 37,875 38,732 (2)%
     Total other revenues $96,596 $67,516 43%
       
Other expenses:      
Losses of real estate partnerships held by consolidated variable interest entities (1) $38,319 $40,862 (6)%
All other expenses 145,323 132,023 10%
     Total other expenses $183,642 $172,885 6%
       
Net (loss) income attributable to noncontrolling interests:      
Private equity investments $14,100 $5,610 151%
Consolidation of low-income housing tax credit funds (41,681) (46,461) 10%
Other 6,119 8,754 (30)%
     Total net loss attributable to noncontrolling interests $(21,462) $(32,097) 33%


(1) Nearly all of these losses are attributable to noncontrolling interests.  After adjusting for the portion attributable to noncontrolling interests, RJF’s share of these losses is insignificant in all periods presented.

(2) Total includes an $11 million realized gain on the sale of Jefferson County, Alabama Limited Obligation School Warrants auction rate securities during the June quarter of fiscal year 2015.

(3) Total includes a $5.5 million realized gain on the redemption by the issuer of Jefferson County, Alabama Sewer Revenue Refunding Warrants auction rate securities that resulted from the resolution of the Jefferson County, Alabama bankruptcy proceedings during the December quarter of fiscal year 2014.


Raymond James Financial, Inc.
Selected key metrics
(Unaudited)
Selected key financial metrics:      
  As of
  September 30,
2015
September 30,
2014
June 30,
2015
Total assets $26.5 bil. $23.3 bil. $24.8 bil.
Shareholders’ equity (attributable to RJF) $4,522 mil. $4,141 mil. $4,473 mil.
       
Book value per share $31.68 $29.40 $31.16
Tangible book value per share (a non-GAAP measure) (1) $29.17 $26.98 $28.81
       
Return on equity - quarter (annualized) 11.5% 13.4% 12.0%
Return on equity - year to date (annualized) 11.5% 12.3% 11.5%
       
Common equity tier 1 capital ratio 22.0% (2) n/a 21.3%
Tier 1 capital ratio 22.0% (2) 19.7% 21.3%
Total capital ratio 23.0% (2) 20.6% 22.2%
Tier 1 leverage ratio 16.1% (2) 16.4% 16.7%
       
Pre-tax margin on net revenues - quarter 15.4% 16.5% 15.8%
Pre-tax margin on net revenues - year to date 15.3% 15.4% 15.3%
       
Effective tax rate - quarter 37.5% 35.8% 36.0%
Effective tax rate - year to date 37.1% 35.8% 36.9%
       
Private Client Group financial advisors:      
  As of
  September 30,
2015
September 30,
2014
June 30,
2015
Raymond James & Associates 2,571 2,462 2,541
Raymond James Financial Services 3,544 3,329 3,487
Raymond James Limited 383 391 385
Raymond James Investment Services 98 83 94
     Total advisors 6,596 6,265 6,507


Selected client asset metrics:          
  As of
  September 30,
2015
September 30,
2014
%
Change
June 30,
2015
%
Change
  ($ in billions)
Client assets under administration $480.0 $475.0 1% $499.8 (4)%
Private Client Group assets under administration $453.3 $450.6 1% $475.4 (5)%
Private Client Group assets in fee-based accounts $179.4 $167.7 7% $186.2 (4)%
Financial assets under management $65.2 $64.6 1% $70.2 (7)%
Secured client lending (3) $3.4 $2.8 21% $3.2 6%


(1) Tangible book value per share (a non-GAAP measure) is computed by dividing shareholders’ equity, less goodwill and other intangible assets in the amount of $377 million, $355 million, and $354 million as of September 30, 2015, June 30, 2015, and September 30, 2014, respectively, which are net of their related deferred tax balance in the amounts of $18.6 million, $17.4 million, and $13.2 million as of September 30, 2015, June 30, 2015, and September 30, 2014, respectively, by the number of common shares outstanding. Management believes tangible book value per share is a measure that is useful to investors because it allows them to better assess the capital strength of the company.

(2) Estimated. Basel III rules became effective for RJF on January 1, 2015. The ratios for all periods prior to that date are computed based on Basel 2.5 rules in effect during such periods.

(3) Includes client margin balances held by our broker-dealer subsidiaries and securities based loans available through RJ Bank.


Raymond James Bank
Selected financial highlights
(Unaudited)
Selected operating data:          
  Three months ended
  September 30,
2015
September 30,
2014
%
Change
June 30,
2015
%
Change
  ($ in thousands)
Net interest income $104,945 $93,027 13% $102,054 3%
Net revenues $106,994 $93,068 15% $103,873 3%
Bank loan loss provision (benefit) $13,277 $5,483 142% $(3,009) NM
Pre-tax income $65,093 $64,057 2% $78,008 (17)%
Net charge-offs (recoveries) $995 $(189) NM $(3,501) NM
Net interest margin (% earning assets) 3.03% 3.02% 3.09% (2)%


Raymond James Bank
Selected financial highlights
(Unaudited)
  Twelve months ended
  September 30,
2015
September 30,
2014
%
Change
  ($ in thousands)
Net interest income $403,578 $346,757 16%
Net revenues $414,295 $351,770 18%
Bank loan loss provision $23,570 $13,565 74%
Pre-tax income $278,721 $242,834 15%
Net (recoveries) charge-offs $(2,757) $1,747 NM
Net interest margin (% earning assets) 3.07% 2.98% 3%
       
RJ Bank Balance Sheet data:      
  As of
  September 30,
2015
September 30,
2014
June 30,
2015
  ($ in thousands)
Total assets (1) $14,665,433 $12,547,902 $13,811,404
Total equity $1,519,263 $1,310,098 $1,487,147
Total loans, net $12,988,021 $10,964,299 $12,053,678
Total deposits (1) $12,377,599 $10,537,672 $11,518,724
Available for Sale (AFS) securities, at fair value $374,966 $361,554 $303,824
Net unrealized loss on AFS securities, before tax $(3,288) $(6,894) $(4,117)
Common equity tier 1 capital ratio 13.0% (2) n/a 13.6%
Tier 1 capital ratio 13.0% (2) 11.2% 13.6%
Total capital ratio (2) 14.3% (2) 12.5% 14.8%
Tier 1 leverage ratio 10.9% (2) 10.7% 11.1%
Commercial and industrial loans (3) $6,928,018 $6,422,347 $6,539,642
Commercial Real Estate (CRE) and CRE construction loans (3) $2,216,510 $1,783,358 $1,889,047
Residential mortgage loans (3) $1,962,654 $1,751,793 $1,950,603
Securities based loans (3) $1,481,464 $1,023,702 $1,391,086
Tax-exempt loans (3) $484,537 $122,218 $385,234
Loans held for sale (3) (4) $108,872 $42,012 $83,583
       
Credit metrics:      
  As of
  September 30,
2015
September 30,
2014
June 30,
2015
  ($ in thousands)
Allowance for loan losses $172,257 $147,574 $160,631
Allowance for loan losses (as % of loans) 1.32% 1.33% 1.33%
Nonperforming loans (5) $52,619 $80,665 $59,218
Other real estate owned $4,631 $5,380 $4,892
Total nonperforming assets $57,250 $86,045 $64,110
Nonperforming assets (as % of total assets) 0.39% 0.69% 0.46%
Total criticized loans (6) $282,499 $204,801 $263,499
1-4 family residential mortgage loans over 30 days past due (as a % 1-4 family residential loans) 1.69% 2.34% 1.85%


(1) Includes affiliate deposits.

(2) Estimated.  Basel III rules became effective for RJ Bank on January 1, 2015.  The ratios for all periods prior to that date are computed based on Basel I rules in effect during such periods.

(3) Outstanding loan balances are shown gross of unearned income and deferred expenses.

(4) Primarily comprised of the guaranteed portions of Small Business Administration section 7(a) loans purchased from other financial institutions.

(5) Nonperforming loans includes 90+ days past due plus nonaccrual loans.

(6) Represents the loan balance for all loans in the Special Mention, Substandard, Doubtful and Loss classifications as utilized by the banking regulators. In accordance with its accounting policy, RJ Bank does not have any loan balances within the Loss classification as loans or a portion thereof, which are considered to be uncollectible, are charged-off prior to assignment to this classification.