Annual Report 2020

Obstacle and Opportunity

Through a year we never could have predicted, we persevered and plotted an even stronger course for the future of our firm.

Read the story of 2020

A year of tests and triumphs

It’s a profound understatement to say 2020 was a challenging year. But through all of its unique upheaval – perhaps because of it – we found ways to stay connected and stay the course.

We also found ways forward – building on the long-term planning and everyday ingenuity that has kept us steady throughout our history to give even more clarity to our vision for the firm’s future.

The path wasn’t easy or clear. But we walked it together. And we’re walking it still, supporting clients, colleagues and communities, putting people first – always.

Message from the Chairman and CEO

Paul Reilly reflects on our ability to meet unforeseen challenges while maintaining our strong foundation.

Challenging. Tumultuous. Transformative. Defining.

Business Unit Year in Review

A snapshot of how each of our core businesses performed in an unprecedented environment.

  • $5.55 billion net revenues | $539 million pre-tax income

     

    KEY PERFORMANCE DRIVERS
    • Strong retention and recruiting of advisors
    • Strong technology infrastructure to support remote work environment
    • Positive equity market performance

     

    HEADWINDS
    • Low interest rate environment
    • Evolving regulatory landscape and expectations
    • Industry trends contributing to price compression

  • $1.29 billion net revenues | $225 million pre-tax income

     

    KEY PERFORMANCE DRIVERS
    • Elevated market volatility that resulted in a 38% increase in brokerage revenues
    • Higher client activity and larger individual transactions drove record underwriting revenues of $318 million, an increase of 72% over fiscal 2019
    • Contributions from the targeted addition of experienced investment banking, sales and trading, and public finance professionals

     

    HEADWINDS
    • COVID-19-related travel restrictions and market uncertainty that contributed to reduced M&A activity
    • Market and political uncertainty
    • Continued trend of unbundling research and execution

  • $715 million net revenues | $284 million pre-tax income

     

    KEY PERFORMANCE DRIVERS
    • Equity and fixed income market appreciation
    • Ongoing migration to fee-based relationships
    • Overall net inflows of new assets, as well as flows to environmental, social and governance (ESG) portfolios

     

    HEADWINDS
    • Market volatility
    • Heightened fee pressures for active management
    • Pandemic-induced challenges to sales and institutional search activity

  • $765 million net revenues | $196 million pre-tax income

     

    KEY PERFORMANCE DRIVERS
    • Continued collaboration across Raymond James’ other businesses
    • Strong growth of residential mortgage and securities-backed loans to PCG clients
    • Increased average interest-earning assets, driven by growth in average available-for-sale securities, average loans and average cash balances

     

    HEADWINDS
    • Sharply declining interest rates, resulting in a year-over-year reduction of 69 basis points in net interest margin (NIM)
    • Elevated loan loss provisions of $233 million for the year, primarily in the corporate portfolio
    • Elevated client cash balances during market volatility, with limited attractive short-term investment options

Giving Back 2020

 

Raymond James Cares Month

2,254
Associate Volunteers

4,612
Volunteer Hours

41,554
Pounds of Food Donated

$283,000
Raised

United States, Canada and the United Kingdom


Charitable giving

#4 fundraiser
in the nation for the
American Heart Association

$6.47 million
Raised for the United Way

United States only

COVID-19 Relief

  • $2.3 million donated
  • 10,000 lbs. of food collected in St. Petersburg
  • $170,000 raised for the Mid-South Food Bank in Memphis
  • 2,000+ meals collected in Memphis
  • £35,000 raised for FareShare and FeedNHS
  • $200,000 raised for more than 30 food banks and homeless shelters across Canada