Document



April 29, 2020		FOR IMMEDIATE RELEASE
		Media Contact: Steve Hollister, 727.567.2824
		Investor Contact: Kristina Waugh, 727.567.7654
		raymondjames.com/news-and-media/press-releases

RAYMOND JAMES FINANCIAL REPORTS SECOND QUARTER

FISCAL YEAR 2020 RESULTS


•	Record quarterly net revenues of $2.07 billion, up 11% over the prior year’s fiscal second quarter and 3% over the preceding quarter


•	Quarterly net income of $169 million, or $1.20 per diluted share, down 35% compared to net income in the prior year’s fiscal second quarter and 37% compared to the preceding quarter, primarily due to the bank loan loss provision of $109 million


•	Record quarterly net revenues and pre-tax income in the Private Client Group segment


•	Record number of Private Client Group financial advisors of 8,148, net increases of 286 over March 2019 and 88 over December 2019


•	Record clients’ domestic cash sweep balances of $52.9 billion, up 27% over the prior year’s fiscal second quarter and 34% over the preceding quarter


•	Ended the quarter with capital ratios well in excess of regulatory requirements and substantial liquidity with nearly $2 billion⁽¹⁾ of cash at the parent company, which included the proceeds of a $500 million 10-year senior notes issuance in March

ST. PETERSBURG, Fla - Raymond James Financial, Inc. (NYSE: RJF) today reported net revenues of $2.07 billion and net income of $169 million, or $1.20 per diluted share, for the fiscal second quarter ended March 31, 2020. Growth of net revenues was largely driven by higher asset management and related administrative fees, which were primarily based on the then-record Private Client Group assets in fee-based accounts billed at the beginning of the quarter, and higher brokerage revenues in the Private Client Group and Capital Markets segments. Quarterly net revenues were negatively impacted by valuation losses on private equity investments and lower Raymond James Bank Deposit Program (“RJBDP”) fees from third-party banks and net interest income due to lower short-term interest rates.

Pre-tax income declined 31% compared to the prior year’s fiscal second quarter and 33% compared to the preceding quarter, primarily due to a significant increase in the bank loan loss provision. Despite a decline in nonperforming assets and no net charge-offs during the quarter, the quarterly bank loan loss provision increased to $109 million, reflecting an increase in the allowance for loan losses in response to the rapid and widespread economic deterioration caused by COVID-19.

For the first six months of the fiscal year, record net revenues of $4.08 billion increased 8% and earnings per diluted share of $3.09 declined 12% compared to the first half of fiscal 2019. All four core operating segments generated record net revenues during the first six months of the fiscal year.

“First and foremost, our top priority during the COVID-19 crisis is the health and safety of our associates and advisors. I am extremely proud of our team for quickly transitioning to our business continuity protocols and providing excellent, continuous service to clients during these challenging times,” said Chairman and CEO Paul Reilly. “Our solid financial performance during a tumultuous quarter highlights the resiliency of our diversified and client-focused business model. While economic deterioration, declines in the equity markets and lower short-term interest rates are expected to negatively impact our financial results, we are well positioned for the long term with very strong levels of capital and liquidity.”

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

Segment Results

Private Client Group


•	Record quarterly net revenues of $1.50 billion, up 18% over the prior year’s fiscal second quarter and 6% over the preceding quarter


•	Record quarterly pre-tax income of $170 million, up 29% over the prior year’s fiscal second quarter and 11% over the preceding quarter


•	Record number of Private Client Group financial advisors of 8,148, net increases of 286 over March 2019 and 88 over December 2019


•	Record clients’ domestic cash sweep balances of $52.9 billion, up 27% over the prior year’s fiscal second quarter and 34% over the preceding quarter


•	Private Client Group assets under administration of $734.0 billion, down 3% compared to March 2019 and 14% compared to December 2019


•	Private Client Group assets in fee-based accounts of $383.5 billion, up 1% over March 2019 and down 14% compared to December 2019

Record quarterly net revenues were largely attributable to higher asset management and related administrative fees, as well as higher brokerage revenues as trading volumes spiked due to market volatility in March. As assets in fee-based accounts are billed primarily on balances at the beginning of the quarter, the 14% sequential decline of these assets during the quarter will negatively impact asset management fees in the fiscal third quarter.

As market volatility and steep declines in the equity markets in March led to clients shifting assets to cash, clients’ domestic cash sweep balances increased substantially to $52.9 billion, an increase of 27% over March 2019 and 34% over December 2019. While these balances reached record levels, the spreads earned on cash balances have been negatively impacted by the Federal Reserve’s rate cuts.

“I am proud of our associates and advisors for their remarkable response during this time of extreme market volatility and economic turmoil,” said Reilly. “Supported by a robust technology platform, advisors and support associates were able to transition to working remotely and provide continued service for their clients. Our financial advisor recruiting pipeline remains strong despite an initial pause in activity given nationwide shelter-in-place orders, but we are now leveraging virtual capabilities to resume critical parts of the recruiting process such as home office visits and advisor transitions.”

Capital Markets


•	Quarterly net revenues of $290 million, up 5% over the prior year’s fiscal second quarter and 8% over the preceding quarter


•	Quarterly pre-tax income of $28 million, down 32% compared to the prior year’s fiscal second quarter and 3% compared to the preceding quarter


•	Quarterly brokerage revenues of $130 million, up 26% over the prior year’s fiscal second quarter and 13% over the preceding quarter


•	Quarterly investment banking revenues of $137 million, down 12% compared to the prior year’s fiscal second quarter and up 5% over the preceding quarter

The year-over-year increase in quarterly net revenues was primarily driven by increases in institutional fixed income and equity brokerage revenues and equity underwriting revenues, which more than offset lower M&A revenues. Net revenues increased from the preceding quarter, primarily due to higher brokerage revenues and M&A revenues.

“Higher client trading activity drove strong brokerage revenues as market volatility surged in March,” said Reilly. “While quarterly investment banking revenues were solid and the pipeline remains healthy, we expect the near-term results to be negatively impacted by economic deterioration and uncertainty as a result of COVID-19.”

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

Asset Management


•	Quarterly net revenues of $184 million, up 14% over the prior year’s fiscal second quarter and flat compared to the preceding quarter


•	Quarterly pre-tax income of $73 million, up 33% over the prior year’s fiscal second quarter and flat compared to the preceding quarter

Financial assets under management of $128.2 billion declined 7% compared to March 2019 and 15% compared to December 2019. The decline in financial assets under management was primarily attributable to the decline in the equity markets, as the S&P 500 index declined 20% during the quarter, as well as net outflows for Carillon Tower Advisers.

Raymond James Bank


•	Quarterly net revenues of $210 million, down 1% compared to the prior year’s fiscal second quarter and 3% compared to the preceding quarter


•	Quarterly pre-tax income of $14 million, down 90% compared to both the prior year’s fiscal second quarter and the preceding quarter, primarily due to a higher loan loss provision


•	Record net loans of $21.8 billion, up 8% over March 2019 and 2% over December 2019


•	Net interest margin (“NIM”) of 3.02% for the quarter, down 33 basis points compared to the prior year’s fiscal second quarter and 21 basis points compared to the preceding quarter

Net revenues for the second quarter declined 1% compared to the prior year’s fiscal second quarter and 3% compared to the preceding quarter as higher loan balances were offset by a lower net interest margin. The Bank’s NIM declined 21 basis points during the quarter to 3.02%, and further compression is expected due to the Federal Reserve’s rate cuts in March. Despite a decline in nonperforming assets and no net charge-offs during the quarter, the quarterly bank loan loss provision increased to $109 million, reflecting an increase in the allowance for loan losses in response to the rapid and widespread economic deterioration caused by COVID-19. Allowance for loan losses as a percent of total loans increased to 1.47% from 1.01% in the preceding quarter.

“The loan portfolio continued to perform well during the quarter, but as the COVID-19 crisis caused economic conditions to worsen, we increased loan loss reserves,” said Reilly. “If economic conditions continue to deteriorate, we expect to continue adding to the allowance for loan losses.”

Other

The Other segment included valuation losses associated with private equity investments of $39 million during the quarter, of which $22 million is attributable to noncontrolling interests and is presented as an offset in other expense. These adjustments had a negative impact of over 125 basis points to the total compensation ratio, as there is no direct compensation associated with private equity valuation adjustments.

The effective tax rate for the quarter of 29.3% was elevated, primarily due to the unfavorable impact of nondeductible valuation losses associated with the corporate-owned life insurance portfolio during the quarter.

During the fiscal second quarter, the firm repurchased approximately 2.5 million shares of common stock for nearly $202 million at an average price of approximately $79.00 per share. Due to the COVID-19 crisis, share buybacks have been suspended since mid-March and, as of quarter-end, $537 million remained available under the Board’s previously-disclosed repurchase authorization. At the end of the quarter, the total capital ratio was 25.3% and the tier 1 leverage ratio was 14.2%, well above the regulatory requirements.

The firm ended the quarter with nearly $2 billion⁽¹⁾ of cash at the parent company, which included the proceeds of a $500 million 10-year senior notes issuance in March. Additionally, a $500 million unsecured, committed revolving credit facility remains undrawn, providing additional liquidity flexibility.

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

A conference call to discuss the results will take place tomorrow morning, Thursday, April 30, at 8:15 a.m. ET. The live audio webcast and the presentation which management will review on the call will be available at www.raymondjames.com/investor-relations/financial-information/quarterly-earnings. For a listen-only connection to the conference call, please dial: 877-671-8037 (conference code: 9419796). An audio replay of the call will be available at the same location until July 22, 2020.

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 8,100 financial advisors. Total client assets are $774 billion. Public since 1983, the firm is listed on the New York Stock Exchange under the symbol RJF. Additional information is available at www.raymondjames.com.

Forward-Looking Statements

Certain statements made in this press release 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, regulatory developments, and general economic conditions. In addition, words such as “expects,” and future or conditional verbs such as “will,” 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 Quarterly Reports on Form 10-Q, which are available at 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.

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



RAYMOND JAMES FINANCIAL, INC. Second Quarter Fiscal 2020		Selected Financial Highlights (Unaudited)

Summary results of operations



	Three months ended						% change from
$ in millions, except per share amounts	March 31, 2020		March 31, 2019		December 31, 2019		March 31, 2019	December 31, 2019
Net revenues	$	2,068	$	1,859	$	2,009	11%	3%
Pre-tax income	$	239	$	347	$	359	(31)%	(33)%
Net income	$	169	$	261	$	268	(35)%	(37)%

Earnings per common share: ⁽²⁾
Basic	$	1.22	$	1.85	$	1.93	(34)%	(37)%
Diluted	$	1.20	$	1.81	$	1.89	(34)%	(37)%



	Six months ended
$ in millions, except per share amounts	March 31, 2020		March 31, 2019		% change
Net revenues	$	4,077	$	3,790	8%
Pre-tax income	$	598	$	679	(12)%
Net income	$	437	$	510	(14)%

Earnings per common share: ⁽²⁾
Basic	$	3.15	$	3.58	(12)%
Diluted	$	3.09	$	3.51	(12)%

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

RAYMOND JAMES FINANCIAL, INC.

Second Quarter Fiscal 2020



Consolidated Statements of Income (Unaudited)

	Three months ended									% change from
in millions, except per share amounts	March 31, 2020			March 31, 2019			December 31, 2019			March 31, 2019	December 31, 2019
Revenues:
Asset management and related administrative fees	$	1,006		$	783		$	955		28%	5%
Brokerage revenues:
Securities commissions	410			349			363			17%	13%
Principal transactions	105			93			97			13%	8%
Total brokerage revenues	515			442			460			17%	12%
Account and service fees	172			191			178			(10)%	(3)%
Investment banking	148			163			141			(9)%	5%
Interest income	285			324			297			(12)%	(4)%
Other ⁽³⁾	(15		)	31			29			NM	NM
Total revenues	2,111			1,934			2,060			9%	2%
Interest expense	(43		)	(75		)	(51		)	(43)%	(16)%
Net revenues	2,068			1,859			2,009			11%	3%
Non-interest expenses:
Compensation, commissions and benefits	1,422			1,225			1,351			16%	5%
Non-compensation expenses:
Communications and information processing	99			94			94			5%	5%
Occupancy and equipment	56			53			57			6%	(2)%
Business development	41			41			44			—	(7)%
Investment sub-advisory fees	26			22			26			18%	—
Professional fees	23			17			21			35%	10%
Bank loan loss provision/(benefit)	109			5			(2		)	2,080%	NM
Other ^{(3) (4)}	53			55			59			(4)%	(10)%
Total non-compensation expenses	407			287			299			42%	36%
Total non-interest expenses	1,829			1,512			1,650			21%	11%
Pre-tax income	239			347			359			(31)%	(33)%
Provision for income taxes	70			86			91			(19)%	(23)%
Net income	$	169		$	261		$	268		(35)%	(37)%

Earnings per common share – basic ⁽²⁾	$	1.22		$	1.85		$	1.93		(34)%	(37)%
Earnings per common share – diluted ⁽²⁾	$	1.20		$	1.81		$	1.89		(34)%	(37)%
Weighted-average common shares outstanding – basic	138.4			140.8			138.3			(2)%	—
Weighted-average common and common equivalent shares outstanding – diluted	141.1			143.9			141.5			(2)%	—

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

RAYMOND JAMES FINANCIAL, INC.

Second Quarter Fiscal 2020



Consolidated Statements of Income (Unaudited)

	Six months ended
in millions, except per share amounts	March 31, 2020			March 31, 2019			% change
Revenues:
Asset management and related administrative fees	$	1,961		$	1,648		19%
Brokerage revenues:
Securities commissions	773			737			5%
Principal transactions	202			169			20%
Total brokerage revenues	975			906			8%
Account and service fees	350			376			(7)%
Investment banking	289			300			(4)%
Interest income	582			640			(9)%
Other ⁽³⁾	14			68			(79)%
Total revenues	4,171			3,938			6%
Interest expense	(94		)	(148		)	(36)%
Net revenues	4,077			3,790			8%
Non-interest expenses:
Compensation, commissions and benefits	2,773			2,490			11%
Non-compensation expenses:
Communications and information processing	193			186			4%
Occupancy and equipment	113			104			9%
Business development	85			84			1%
Investment sub-advisory fees	52			46			13%
Professional fees	44			39			13%
Bank loan loss provision	107			21			410%
Acquisition and disposition-related expenses ⁽⁵⁾	—			15			(100)%
Other ^{(3) (4)}	112			126			(11)%
Total non-compensation expenses	706			621			14%
Total non-interest expenses	3,479			3,111			12%
Pre-tax income	598			679			(12)%
Provision for income taxes	161			169			(5)%
Net income	$	437		$	510		(14)%


Earnings per common share – basic ⁽²⁾	$	3.15		$	3.58		(12)%
Earnings per common share – diluted ⁽²⁾	$	3.09		$	3.51		(12)%
Weighted-average common shares outstanding – basic	138.4			142.5			(3)%
Weighted-average common and common equivalent shares outstanding – diluted	141.3			145.4			(3)%

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



RAYMOND JAMES FINANCIAL, INC.		Consolidated Selected Key Metrics
Second Quarter Fiscal 2020		(Unaudited)



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

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



	Three months ended						Six months ended
	March 31, 2020		March 31, 2019		December 31, 2019		March 31, 2020		March 31, 2019
Return on equity ⁽⁹⁾	9.9	%	16.7	%	16.0	%	13.0	%	16.2	%
Return on tangible common equity ^{(7) (9)}	10.8	%	18.5	%	17.5	%	14.2	%	17.9	%
Pre-tax margin ⁽¹⁰⁾	11.6	%	18.7	%	17.9	%	14.7	%	17.9	%
Total compensation ratio ⁽¹¹⁾	68.8	%	65.9	%	67.2	%	68.0	%	65.7	%
Effective tax rate	29.3	%	25.4	%	25.3	%	26.9	%	25.4	%



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



Clients’ domestic cash sweep balances ($ in millions)	As of									% change from
	March 31, 2020			March 31, 2019			December 31, 2019			March 31, 2019		December 31, 2019
Raymond James Bank Deposit Program (“RJBDP”): ⁽¹²⁾
Raymond James Bank	$	28,711		$	21,023		$	21,891		37%		31%
Third-party banks	20,379			14,343			15,061			42%		35%
Subtotal RJBDP	49,090			35,366			36,952			39%		33%
Money market funds ⁽¹³⁾	—			4,001			—			(100)%		—
Client Interest Program	3,782			2,349			2,528			61%		50%
Total clients’ domestic cash sweep balances	$	52,872		$	41,716		$	39,480		27%		34%

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



Private Client Group financial advisors	As of			% change from
	March 31, 2020	March 31, 2019	December 31, 2019	March 31, 2019	December 31, 2019
Employees	3,376	3,192	3,331	6%	1%
Independent contractors	4,772	4,670	4,729	2%	1%
Total advisors	8,148	7,862	8,060	4%	1%

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



RAYMOND JAMES FINANCIAL, INC.		Segment Results
Second Quarter Fiscal 2020		(Unaudited)



	Three months ended									% change from
$ in millions	March 31, 2020			March 31, 2019			December 31, 2019			March 31, 2019	December 31, 2019
Net revenues:
Private Client Group	$	1,495		$	1,271		$	1,414		18%	6%
Capital Markets	290			277			268			5%	8%
Asset Management	184			162			184			14%	—
Raymond James Bank	210			212			216			(1)%	(3)%
Other ^{(3) (15)}	(44		)	—			(8		)	NM	(450)%
Intersegment eliminations	(67		)	(63		)	(65		)	NM	NM
Total net revenues	$	2,068		$	1,859		$	2,009		11%	3%

Pre-tax income/(loss):
Private Client Group	$	170		$	132		$	153		29%	11%
Capital Markets	28			41			29			(32)%	(3)%
Asset Management	73			55			73			33%	—
Raymond James Bank	14			136			135			(90)%	(90)%
Other ^{(3) (15)}	(46		)	(17		)	(31		)	(171)%	(48)%
Pre-tax income	$	239		$	347		$	359		(31)%	(33)%



	Six months ended
$ in millions	March 31, 2020			March 31, 2019			% change
Net revenues:
Private Client Group	$	2,909		$	2,627		11%
Capital Markets	558			530			5%
Asset Management	368			336			10%
Raymond James Bank	426			415			3%
Other ^{(3) (15)}	(52		)	2			NM
Intersegment eliminations	(132		)	(120		)	NM
Total net revenues	$	4,077		$	3,790		8%

Pre-tax income/(loss):
Private Client Group	$	323		$	296		9%
Capital Markets	57			53			8%
Asset Management	146			119			23%
Raymond James Bank	149			246			(39)%
Other ^{(3) (15)}	(77		)	(35		)	(120)%
Pre-tax income	$	598		$	679		(12)%

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



RAYMOND JAMES FINANCIAL, INC.		Segment Results
Second Quarter Fiscal 2020		(Unaudited)



Private Client Group

	Three months ended									% change from
$ in millions	March 31, 2020			March 31, 2019			December 31, 2019			March 31, 2019	December 31, 2019
Revenues:
Asset management and related administrative fees	$	833		$	638		$	782		31%	7%
Brokerage revenues:
Mutual and other fund products	163			145			144			12%	13%
Insurance and annuity products	99			99			101			—	(2)%
Equities, ETFs and fixed income products	122			94			102			30%	20%
Total brokerage revenues	384			338			347			14%	11%
Account and service fees:
Mutual fund and annuity service fees	88			82			90			7%	(2)%
RJBDP fees: ⁽¹²⁾
Third-party banks	51			80			58			(36)%	(12)%
Raymond James Bank	48			42			47			14%	2%
Client account and other fees	35			27			29			30%	21%
Total account and service fees	222			231			224			(4)%	(1)%
Investment banking	11			8			11			38%	—
Interest income	45			58			49			(22)%	(8)%
All other	7			9			9			(22)%	(22)%
Total revenues	1,502			1,282			1,422			17%	6%
Interest expense	(7		)	(11		)	(8		)	(36)%	(13)%
Net revenues	1,495			1,271			1,414			18%	6%
Non-interest expenses:
Financial advisor compensation and benefits	915			750			857			22%	7%
Administrative compensation and benefits	245			234			247			5%	(1)%
Total compensation, commissions and benefits	1,160			984			1,104			18%	5%
Non-compensation expenses	165			155			157			6%	5%
Total non-interest expenses	1,325			1,139			1,261			16%	5%
Pre-tax income	$	170		$	132		$	153		29%	11%

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



RAYMOND JAMES FINANCIAL, INC.		Segment Results
Second Quarter Fiscal 2020		(Unaudited)



Private Client Group

	Six months ended
$ in millions	March 31, 2020			March 31, 2019			% change
Revenues:
Asset management and related administrative fees	$	1,615		$	1,345		20%
Brokerage revenues:
Mutual and other fund products	307			302			2%
Insurance and annuity products	200			203			(1)%
Equities, ETFs and fixed income products	224			197			14%
Total brokerage revenues	731			702			4%
Account and service fees:
Mutual fund and annuity service fees	178			165			8%
RJBDP fees: ⁽¹²⁾
Third-party banks	109			148			(26)%
Raymond James Bank	95			83			14%
Client account and other fees	64			60			7%
Total account and service fees	446			456			(2)%
Investment banking	22			15			47%
Interest income	94			114			(18)%
All other	16			16			—
Total revenues	2,924			2,648			10%
Interest expense	(15		)	(21		)	(29)%
Net revenues	2,909			2,627			11%
Non-interest expenses:
Financial advisor compensation and benefits	1,772			1,553			14%
Administrative compensation and benefits	492			463			6%
Total compensation, commissions and benefits	2,264			2,016			12%
Non-compensation expenses	322			315			2%
Total non-interest expenses	2,586			2,331			11%
Pre-tax income	$	323		$	296		9%

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



RAYMOND JAMES FINANCIAL, INC.		Segment Results
Second Quarter Fiscal 2020		(Unaudited)



Capital Markets

	Three months ended									% change from
$ in millions	March 31, 2020			March 31, 2019			December 31, 2019			March 31, 2019	December 31, 2019
Revenues:
Brokerage revenues:
Fixed income	$	90		$	71		$	81		27%	11%
Equity	40			32			34			25%	18%
Total brokerage revenues	130			103			115			26%	13%
Investment banking:
Merger & acquisition and advisory	72			121			60			(40)%	20%
Equity underwriting	43			18			39			139%	10%
Debt underwriting	22			17			31			29%	(29)%
Total investment banking	137			156			130			(12)%	5%
Interest income	10			9			8			11%	25%
Tax credit fund revenues	12			14			18			(14)%	(33)%
All other	7			3			3			133%	133%
Total revenues	296			285			274			4%	8%
Interest expense	(6		)	(8		)	(6		)	(25)%	—
Net revenues	290			277			268			5%	8%
Non-interest expenses:
Compensation, commissions and benefits	184			168			166			10%	11%
Non-compensation expenses ⁽⁴⁾	78			68			73			15%	7%
Total non-interest expenses	262			236			239			11%	10%
Pre-tax income	$	28		$	41		$	29		(32)%	(3)%

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



RAYMOND JAMES FINANCIAL, INC.		Segment Results
Second Quarter Fiscal 2020		(Unaudited)



Capital Markets

	Six months ended
$ in millions	March 31, 2020			March 31, 2019			% change
Revenues:
Brokerage revenues:
Fixed income	$	171		$	128		34%
Equity	74			74			—
Total brokerage revenues	245			202			21%
Investment banking:
Merger & acquisition and advisory	132			206			(36)%
Equity underwriting	82			45			82%
Debt underwriting	53			34			56%
Total investment banking	267			285			(6)%
Interest income	18			19			(5)%
Tax credit fund revenues	30			33			(9)%
All other	10			7			43%
Total revenues	570			546			4%
Interest expense	(12		)	(16		)	(25)%
Net revenues	558			530			5%
Non-interest expenses:
Compensation, commissions and benefits	350			326			7%
Non-compensation expenses ^{(4) (5)}	151			151			—
Total non-interest expenses	501			477			5%
Pre-tax income	$	57		$	53		8%

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



RAYMOND JAMES FINANCIAL, INC.		Segment Results
Second Quarter Fiscal 2020		(Unaudited)



Asset Management

	Three months ended						% change from
$ in millions	March 31, 2020		March 31, 2019		December 31, 2019		March 31, 2019	December 31, 2019
Revenues:
Asset management and related administrative fees:
Managed programs	$	124	$	109	$	125	14%	(1)%
Administration and other	53		40		51		33%	4%
Total asset management and related administrative fees	177		149		176		19%	1%
Account and service fees	4		10		5		(60)%	(20)%
All other	3		3		3		—	—
Net revenues	184		162		184		14%	—
Non-interest expenses:
Compensation, commissions and benefits	45		45		45		—	—
Non-compensation expenses ⁽⁴⁾	66		62		66		6%	—
Total non-interest expenses	111		107		111		4%	—
Pre-tax income	$	73	$	55	$	73	33%	—



	Six months ended
$ in millions	March 31, 2020		March 31, 2019		% change
Revenues:
Asset management and related administrative fees:
Managed programs	$	249	$	226	10%
Administration and other	104		84		24%
Total asset management and related administrative fees	353		310		14%
Account and service fees	9		19		(53)%
All other	6		7		(14)%
Net revenues	368		336		10%
Non-interest expenses:
Compensation, commissions and benefits	90		88		2%
Non-compensation expenses ⁽⁴⁾	132		129		2%
Total non-interest expenses	222		217		2%
Pre-tax income	$	146	$	119	23%

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



RAYMOND JAMES FINANCIAL, INC.		Segment Results
Second Quarter Fiscal 2020		(Unaudited)



Raymond James Bank

	Three months ended									% change from
$ in millions	March 31, 2020			March 31, 2019			December 31, 2019			March 31, 2019	December 31, 2019
Revenues:
Interest income	$	223		$	247		$	231		(10)%	(3)%
Interest expense	(18		)	(42		)	(21		)	(57)%	(14)%
Net interest income	205			205			210			—	(2)%
All other	5			7			6			(29)%	(17)%
Net revenues	210			212			216			(1)%	(3)%
Non-interest expenses:
Compensation and benefits	13			12			12			8%	8%
Non-compensation expenses:
Loan loss provision/(benefit)	109			5			(2		)	2,080%	NM
RJBDP fees to Private Client Group ⁽¹²⁾	48			42			47			14%	2%
All other	26			17			24			53%	8%
Total non-compensation expenses	183			64			69			186%	165%
Total non-interest expenses	196			76			81			158%	142%
Pre-tax income	$	14		$	136		$	135		(90)%	(90)%



	Six months ended
$ in millions	March 31, 2020			March 31, 2019			% change
Revenues:
Interest income	$	454		$	486		(7)%
Interest expense	(39		)	(84		)	(54)%
Net interest income	415			402			3%
All other	11			13			(15)%
Net revenues	426			415			3%
Non-interest expenses:
Compensation and benefits	25			23			9%
Non-compensation expenses:
Loan loss provision	107			21			410%
RJBDP fees to Private Client Group ⁽¹²⁾	95			83			14%
All other	50			42			19%
Total non-compensation expenses	252			146			73%
Total non-interest expenses	277			169			64%
Pre-tax income	$	149		$	246		(39)%

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



RAYMOND JAMES FINANCIAL, INC.		Segment Results
Second Quarter Fiscal 2020		(Unaudited)



Other

	Three months ended									% change from
$ in millions	March 31, 2020			March 31, 2019			December 31, 2019			March 31, 2019	December 31, 2019
Revenues:
Interest income	$	12		$	14		$	12		(14)%	—
Gains/(losses) on private equity investments ⁽³⁾	(39		)	2			(2		)	NM	(1,850)%
All other	—			3			2			(100)%	(100)%
Total revenues	(27		)	19			12			NM	NM
Interest expense	(17		)	(19		)	(20		)	(11)%	(15)%
Net revenues	(44		)	—			(8		)	NM	(450)%
Non-interest expenses ^{(3) (4)}	2			17			23			(88)%	(91)%
Pre-tax loss	$	(46	)	$	(17	)	$	(31	)	(171)%	(48)%



	Six months ended
$ in millions	March 31, 2020			March 31, 2019			% change
Revenues:
Interest income	$	24		$	30		(20)%
Gains/(losses) on private equity investments ⁽³⁾	(41		)	6			NM
All other	2			4			(50)%
Total revenues	(15		)	40			NM
Interest expense	(37		)	(38		)	(3)%
Net revenues	(52		)	2			NM
Non-interest expenses ^{(3) (4)}	25			37			(32)%
Pre-tax loss	$	(77	)	$	(35	)	(120)%

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



RAYMOND JAMES FINANCIAL, INC.		Raymond James Bank Selected Key Metrics
Second Quarter Fiscal 2020		(Unaudited)



Raymond James Bank ($ in millions)	As of										% change from
	March 31, 2020				March 31, 2019			December 31, 2019			March 31, 2019	December 31, 2019
Total assets	$	33,656			$	24,925		$	26,469		35%	27%
Total equity	$	2,263			$	2,136		$	2,300		6%	(2)%
Bank loans, net	$	21,788			$	20,135		$	21,296		8%	2%
Allowance for loan losses	$	324			$	218		$	216		49%	50%
Allowance for loan losses as a % of loans held for investment	1.47		%		1.08		%	1.01		%
Total nonperforming assets	$	27			$	61		$	41		(56)%	(34)%
Nonperforming assets as a % of total assets	0.08		%		0.25		%	0.16		%
Total criticized loans	$	387			$	246		$	349		57%	11%
Criticized loans as a % of loans held for investment	1.76		%		1.21		%	1.64		%

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

	Three months ended										% change from
$ in millions	March 31, 2020				March 31, 2019			December 31, 2019			March 31, 2019	December 31, 2019
Bank loan loss provision/(benefit)	$	109			$	5		$	(2	)	2,080%	NM
Net charge-offs	$	—			$	6		$	—		(100)%	—

	Six months ended
$ in millions	March 31, 2020				March 31, 2019			% change
Bank loan loss provision	$	107			$	21		410%
Net charge-offs	$	—			$	5		(100)%

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



RAYMOND JAMES FINANCIAL, INC.		Raymond James Bank Selected Key Metrics
Second Quarter Fiscal 2020		(Unaudited)

Raymond James Bank Net Interest Analysis



	Three months ended
	March 31, 2020						March 31, 2019						December 31, 2019
$ in millions	Average balance		Interest inc./exp.		Average yield/ cost		Average balance		Interest inc./exp.		Average yield/ cost		Average balance		Interest inc./exp.		Average yield/ cost
Interest-earning banking assets:
Cash	$	2,052	$	5	0.89	%	$	1,391	$	9	2.40	%	$	1,201	$	5	1.64	%
Available-for-sale securities	3,443		19		2.28	%	2,876		17		2.43	%	3,089		18		2.30	%
Bank loans, net of unearned income and deferred expenses:
Loans held for investment:
Commercial and industrial loans	8,043		81		3.99	%	8,160		97		4.76	%	8,078		86		4.15	%
Commercial real estate construction loans	181		2		4.58	%	197		3		5.70	%	233		3		4.87	%
Commercial real estate loans	3,735		36		3.81	%	3,379		40		4.73	%	3,611		37		4.00	%
Tax-exempt loans ⁽¹⁶⁾	1,212		8		3.36	%	1,280		8		3.34	%	1,225		8		3.36	%
Residential mortgage loans	4,847		38		3.13	%	3,979		34		3.33	%	4,641		37		3.19	%
Securities-based loans and other	3,469		31		3.60	%	3,066		37		4.71	%	3,337		34		3.97	%
Loans held for sale	142		2		3.85	%	144		1		4.26	%	161		1		4.06	%
Total bank loans, net	21,629		198		3.67	%	20,205		220		4.38	%	21,286		206		3.85	%
Federal Home Loan Bank stock, Federal Reserve Bank stock and other	230		1		2.48	%	153		1		4.44	%	215		2		3.00	%
Total interest-earning banking assets	27,354		223		3.28	%	24,625		247		4.04	%	25,791		231		3.56	%
Total interest-bearing banking liabilities	25,032		18		0.29	%	22,397		42		0.77	%	23,493		21		0.36	%
Excess of interest-earning banking assets over interest-bearing banking liabilities/net interest income	$	2,322	$	205			$	2,228	$	205			$	2,298	$	210
Net interest margin (net yield on interest-earning banking assets)					3.02	%					3.35	%					3.23	%



	Six months ended
	March 31, 2020						March 31, 2019
$ in millions	Average balance		Interest inc./exp.		Average yield/cost		Average balance		Interest inc./exp.		Average yield/cost
Interest-earning banking assets:
Cash	$	1,624	$	10	1.17	%	$	1,347	$	16	2.32	%
Available-for-sale securities	3,265		37		2.29	%	2,796		33		2.38	%
Bank loans, net of unearned income and deferred expenses:
Loans held for investment:
Commercial and industrial loans	8,061		167		4.07	%	7,959		188		4.67	%
Commercial real estate construction loans	207		5		4.75	%	184		5		5.66	%
Commercial real estate loans	3,673		73		3.91	%	3,469		81		4.64	%
Tax-exempt loans ⁽¹⁶⁾	1,218		16		3.36	%	1,282		17		3.34	%
Residential mortgage loans	4,743		75		3.16	%	3,934		66		3.32	%
Securities-based loans and other	3,403		65		3.78	%	3,085		73		4.65	%
Loans held for sale	151		3		3.97	%	165		4		4.90	%
Total bank loans, net	21,456		404		3.76	%	20,078		434		4.32	%
Federal Home Loan Bank stock, Federal Reserve Bank stock and other	222		3		2.74	%	161		3		4.19	%
Total interest-earning banking assets	26,567		454		3.41	%	24,382		486		3.99	%
Total interest-bearing banking liabilities	24,258		39		0.32	%	22,239		84		0.76	%
Excess of interest-earning banking assets over interest-bearing banking liabilities/net interest income	$	2,309	$	415			$	2,143	$	402
Net interest margin (net yield on interest-earning banking assets)					3.12	%					3.30	%

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



RAYMOND JAMES FINANCIAL, INC.	Non-GAAP Financial Measures
Second Quarter Fiscal 2020	(Unaudited)

Reconciliation of GAAP measures to non-GAAP financial measures



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



Return on equity	Three months ended									Six months ended
$ in millions	March 31, 2020			March 31, 2019			December 31, 2019			March 31, 2020			March 31, 2019
Average equity ⁽¹⁷⁾	$	6,820		$	6,255		$	6,712		$	6,740		$	6,292
Less:
Average goodwill and identifiable intangible assets, net	606			632			610			608			634
Average deferred tax liabilities, net	(31		)	(35		)	(30		)	(30		)	(34		)
Average tangible common equity ⁽¹⁷⁾	$	6,245		$	5,658		$	6,132		$	6,162		$	5,692

Return on equity ⁽⁹⁾	9.9		%	16.7		%	16.0		%	13.0		%	16.2		%
Return on tangible common equity ⁽⁹⁾	10.8		%	18.5		%	17.5		%	14.2		%	17.9		%

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

RAYMOND JAMES FINANCIAL, INC.

Second Quarter Fiscal 2020

Footnotes


1.	This amount includes cash on hand at the parent, as well as parent cash loaned to Raymond James & Associates (“RJ&A”), which RJ&A has invested on behalf of RJF in cash and cash equivalents or otherwise deployed in its normal business activities.


2.	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.


3.	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.


4.	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.


5.	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.

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.


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.


10.	Pre-tax margin is computed by dividing 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.	The average yield is presented on a tax-equivalent basis for each respective period.

17.

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.

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.

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.

FISCAL 2Q20 RESULTS April 29, 2020

FISCAL 2Q20 OVERVIEW Paul Reilly Chairman & CEO, Raymond James Financial 2

OUR PRIORITIES IN RESPONSE TO COVID-19 Ensure the health and Maintain continuous Continue supporting safety of our associates service and support for our communities during and advisors clients these challenging times 3

FISCAL 2Q20 HIGHLIGHTS vs. vs. $ in millions, except per share amounts 2Q20 2Q19 1Q20 Net revenues RECORD $ 2,068 11% 3% Net income $ 169 (35)% (37)% Earnings per common share - diluted $ 1.20 (34)% (37)% 2Q19 1Q20 Return on equity 9.9% 16.7% 16.0% Return on tangible common equity* 10.8% 18.5% 17.5% * This is a non-GAAP measure. See the schedule in the Appendix of this presentation for a reconciliation of our non-GAAP measures to the most 4 directly comparable GAAP measures and for more information on these measures.

FISCAL 2Q20 KEY METRICS vs. vs. $ in billions 2Q20 2Q19 1Q20 Client assets under administration $ 773.9 (3)% (14)% Private Client Group (PCG) assets under administration $ 734.0 (3)% (14)% PCG assets in fee-based accounts $ 383.5 1% (14)% Financial assets under management $ 128.2 (7)% (15)% Total clients' domestic cash sweep balances RECORD $ 52.9 27% 34% PCG financial advisors RECORD 8,148 4% 1% Bank loans, net RECORD $ 21.8 8% 2% 5

PRIVATE CLIENT GROUP Net Revenues Pre-Tax Income $ in millions $ in millions 1,495 170 1,414 1,351 1,381 153 1,271 140 143 132 2Q19 3Q19 4Q19 1Q20 2Q20 2Q19 3Q19 4Q19 1Q20 2Q20 Year-over-year change: 18% Year-over-year change: 29% Sequential change: 6% Sequential change: 11% Number of Financial Advisors PCG Assets Under Administration $ in billions 8,148 8,060 855.2 8,011 787.4 798.4 760.0 734.0 7,862 7,904 2Q19 3Q19 4Q19 1Q20 2Q20 2Q19 3Q19 4Q19 1Q20 2Q20 Year-over-year change: 286 Year-over-year change: (3)% Sequential change: 88 Sequential change: (14)% 6

CAPITAL MARKETS Net Revenues Pre-Tax Income $ in millions $ in millions 302 290 41 277 268 33 29 28 251 24 2Q19 3Q19 4Q19 1Q20 2Q20 2Q19 3Q19 4Q19* 1Q20 2Q20 Year-over-year change: 5% Year-over-year change: (32)% Sequential change: 8% Sequential change: (3)% Investment Banking Revenues Brokerage Revenues $ in millions $ in millions 156 150 17 129 130 137 130 18 29 108 115 22 31 22 103 104 28 26 34 40 27 39 43 32 31 121 93 80 60 72 71 73 82 81 90 2Q19 3Q19 4Q19 1Q20 2Q20 2Q19 3Q19 4Q19 1Q20 2Q20 M&A and Advisory Year-over-year change: (12)% Year-over-year change: 26% Sequential change: 5% Fixed Income Equity Sequential change: 13% Equity Underwriting Debt Underwriting * 4Q19 included a $19 million goodwill impairment charge associated with our Canadian Capital Markets business. 7

ASSET MANAGEMENT Net Revenues Pre-Tax Income $ in millions $ in millions 184 184 73 73 177 178 69 65 162 55 2Q19 3Q19 4Q19 1Q20 2Q20 2Q19 3Q19 4Q19 1Q20 2Q20 Year-over-year change: 14% Year-over-year change: 33% Sequential change: 0% Sequential change: 0% Financial Assets Under Management $ in billions 151.7 138.5 143.1 143.1 128.2 2Q19 3Q19 4Q19 1Q20 2Q20 Year-over-year change: (7)% Sequential change: (15)% 8

RAYMOND JAMES BANK Net Revenues Pre-Tax Income $ in millions $ in millions 215 216 216 136 138 131 135 212 210 14 2Q19 3Q19 4Q19 1Q20 2Q20 2Q19 3Q19 4Q19 1Q20 2Q20 Year-over-year change: (1)% Year-over-year change: (90)% Sequential change: (3)% Sequential change: (90)% Bank Loans, Net $ in billions 21.8 21.3 20.7 20.9 20.1 2Q19 3Q19 4Q19 1Q20 2Q20 Year-over-year change: 8% Sequential change: 2% 9

RAYMOND JAMES BANK KEY CREDIT TRENDS Loan Loss Provision Net Charge-Offs/(Recoveries) $ in millions $ in millions 107 169 84 107 35 80 24 14 13 21 55 2 3 8 6 0 34 26 28 14 24 20 22 3 13 -3 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FYTD20 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FYTD20 Nonperforming Assets Allowance for Loan Losses as % of Total Assets as % of Loans 2.48% 2.36% 2.10% 2.23% 2.18% 1.81% 1.64% 1.52% 1.47% 1.18% 1.23% 1.33% 1.32% 1.30% 0.99% 1.11% 1.04% 1.04% 0.66% 0.69% 0.39% 0.50% 0.21% 0.12% 0.18% 0.08% FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FYTD20 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FYTD20 Note: FYTD 20 as of March 31, 2020. 10

FYTD 2020 HIGHLIGHTS Compared to Compared to GAAP Adjusted* Results Results vs. vs. $ in millions, except per share amounts FYTD 2020 FYTD 2019 FYTD 2019 Net revenues RECORD $ 4,077 8% NA Net income $ 437 (14)% (17)% Earnings per common share - diluted $ 3.09 (12)% (14)% FYTD 2019 FYTD 2019 Return on equity 13.0% 16.2% 16.7% Return on tangible common equity* 14.2% 17.9% 18.4% Note: FYTD 2020 is from the period October 1, 2019 to March 31, 2020; FYTD 2019 is from the period October 1, 2018 to March 31, 2019. 11 * These are non-GAAP measures. See the schedule in the appendix of this presentation for a reconciliation of our non-GAAP measures to the most directly comparable GAAP measures and for more information on these measures.

FINANCIAL REVIEW Paul Shoukry Chief Financial Officer, Raymond James Financial 12

CONSOLIDATED NET REVENUES vs. vs. $ in millions 2Q20 2Q19 1Q20 Asset management and related administrative fees $ 1,006 28% 5% Brokerage revenues 515 17% 12% Account and service fees 172 (10)% (3)% Investment banking 148 (9)% 5% Interest income 285 (12)% (4)% Other* (15) NM NM Total revenues 2,111 9% 2% Interest expense (43) (43)% (16)% Net revenues $ 2,068 11% 3% * Other revenues for the three months ended March 31, 2020 included $39 million of private equity valuation losses. Of these losses, 13 approximately $22 million were attributable to noncontrolling interests and are presented as an offset in Other expenses.

DOMESTIC CASH SWEEP BALANCES Clients' Domestic Cash Sweep Balances as a % of Domestic PCG Assets Under Administration (AUA) A U ) A B 7.6% G $ ( C s P e c c 5.8% i t n s a 5.1% 5.0% l 4.9% 52.9 e a m B 3.8 o p D e f e 41.7 o w 39.5 % S 38.2 2.3 37.7 a h 20.4 s 2.5 4.0 2.1 s a 2.0 a C s c e i c t 14.4 14.0 15.1 s 14.3 n e a l a m o B D p ' e s e t 28.7 n w e S i 21.0 21.6 21.6 21.9 l h C s a C 2Q19 3Q19 4Q19 1Q20 2Q20 RJBDP- RJBDP- Year-over-year change: 27% Money Market Funds** Client Interest Program RJ Bank* Third-Party Banks* Sequential change: 34% Note: May not total due to rounding. 14 * Raymond James Bank Deposit Program (RJBDP) is 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. ** 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.

NET INTEREST INCOME & RJBDP FEES (THIRD-PARTY BANKS) Firmwide Net Interest Income RJBDP Fees (Third-Party Banks)* 329 315 323 304 293 s 80 65 n 67 58 51 o i l l i m n i 249 248 258 246 242 $ 2Q19 3Q19 4Q19 1Q20 2Q20 Raymond James Bank Average Yield on RJBDP Net Interest Margin** (Third-Party Banks)*** 3.35% 3.37% 3.30% 3.23% 3.02% 2.00% 1.95% 1.83% 1.64% 1.33% 2Q19 3Q19 4Q19 1Q20 2Q20 2Q19 3Q19 4Q19 1Q20 2Q20 * As reported in Account and Service Fees in the PCG segment. ** Raymond James Bank represents a significant portion, but not all, of the 15 firmwide Net Interest Income. Raymond James Bank Net Interest Margin represents the net yield on interest-earning banking assets. *** 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.

CONSOLIDATED EXPENSES Total Compensation Ratio vs. vs. $ in millions 2Q20 2Q19 1Q20 68.8% 67.2% 66.3% Compensation, commissions and benefits $ 1,422 16% 5% 65.9% 65.2% Non-compensation expenses: Communications and information processing 99 5% 5% Occupancy and equipment 56 6% (2)% 2Q19 3Q19 4Q19 1Q20 2Q20 Business development 41 —% (7)% Investment sub-advisory fees 26 18% —% Total Non-Compensation Expenses $ in millions Professional fees 23 35% 10% 407 Bank loan loss provision/(benefit) 109 2,080% NM 349 287 308 299 Other* 53 (4)% (10)% Total non-compensation expenses 407 42% 36% Total non-interest expenses $ 1,829 21% 11% 2Q19 3Q19 4Q19** 1Q20 2Q20 * Other revenues for the three months ended March 31, 2020 included $39 million of private equity valuation losses. Of these losses, 16 approximately $22 million were attributable to noncontrolling interests and are presented as an offset in Other expenses. ** 4Q19 included a $19 million goodwill impairment charge associated with our Canadian Capital Markets business.

CONSOLIDATED PRE-TAX MARGIN 18.7% 18.4% 17.7% 17.9% 17.5% 11.6% 2Q19 3Q19 4Q19* 1Q20 2Q20 Pre-tax margin (GAAP) Pre-tax margin (Adjusted)** * 4Q19 included a $19 million goodwill impairment charge associated with our Canadian Capital Markets business. 17 ** This is a non-GAAP measure. See the schedule in the Appendix of this presentation for a reconciliation of our non-GAAP measures to the most directly comparable GAAP measures and for more information on these measures.

OTHER FINANCIAL INFORMATION vs. vs. $ in millions, except per share amounts 2Q20 2Q19 1Q20 Total assets $ 49,809 30% 24% RJF corporate cash* $ 1,925 63% 35% Total equity attributable to RJF $ 6,798 7% (1)% Book value per share $ 49.69 10% 1% Tangible book value per share** $ 45.50 11% 1% Weighted-average common and common equivalent shares outstanding – diluted 141.1 (2)% —% 2Q19 1Q20 Tier 1 capital ratio 24.1% 24.3% 24.8% Total capital ratio 25.3% 25.3% 25.7% Tier 1 leverage ratio 14.2% 15.1% 15.8% * This amount includes cash on hand at the parent, as well as parent cash loaned to Raymond James & Associates ("RJ&A"), which RJ&A has 18 invested on behalf of RJF in cash and cash equivalents or otherwise deployed in its normal business activities. ** This is a non-GAAP measure. See the schedule in the Appendix of this presentation for a reconciliation of our non-GAAP measures to the most directly comparable GAAP measures and for more information on these measures.

CAPITAL MANAGEMENT Dividends Paid and Share Repurchases* $ in millions Total of ~$750 million Share Repurchases* Dividends Paid over the past 5 quarters 254 209 52 48 133 95 48 202 ** 48 161 62 85 51 47 2Q19 3Q19 4Q19 1Q20 2Q20 Number of Shares Repurchased* 603 1,044 2,127 126 2,546 (thousands) Average Share Price of Shares Repurchased $78.19 $81.68 $75.75 $89.30 $79.27 $537 million remains under current share repurchase authorization * Under the Board of Directors' share repurchase authorization. 19 ** Share repurchases in 1Q20 totaled $11 million.

RAYMOND JAMES BANK ASSET COMPOSITION RJ Bank Asset Mix* Commercial & Industrial Portfolio (C&I) • All senior positions; no mezzanine lending • Highly diversified with no industry category representing more than 4.1% of total loans (e.g. Energy ~1.7%, Airlines ~1.5%, Entertainment/Leisure ~1.2%, Cash: Restaurants ~1.1%, and Gaming ~0.7%) Available- 8% • Typically loans to larger companies with EBITDA >$100 million and track For-Sale C&I record of access to other capital sources; 70% of commitments are to public Securities: Loans: companies 13% 30% SBL and Other Loans: Commercial Real Estate Portfolio (CRE) 13% • Almost 50% to REITs that are typically more diversified, have a track record of access to other capital sources, and have at or near investment grade ratings CRE** Residential • Majority of project loans are to fully stabilized properties with average loan-to- Loans: Mortgage 15% value of 60%; construction loans represent ~1% of total loans Loans: 18% Residential Mortgage Portfolio Tax-Exempt • Majority of mortgages to Private Client Group clients, diversified across the Loans: 4% country • Average loan-to-value of 64% • Average FICO score of 762 Total assets: $33.7 billion • Almost entire portfolio are first mortgages; no Alt. A / subprime / negative Total loans, net: $21.8 billion amortizing mortgages * Average balances for quarter ended March 31, 2020. Pie chart may not total due to rounding. 20 ** Includes CRE construction loans.

ENERGY EXPOSURE Energy (Oil & Gas) • Energy outstandings only represent Oilfield Services: 0.2% ~1.7% of total loans Convenience • No exploration and production (E&P) & Gas / Fuel loans Distribution: • Mostly to midstream distribution and 34.8% convenience stores • Portfolio has minimal direct Midstream: commodity price exposure 65.0% • Majority of midstream borrowers have fee-based contracts with primarily minimum volume commitments (MVCs) / take-or-pay structures, Energy loans outstanding: $382 million primarily with investment grade (~1.7% of total loans) producers Total Loans Note: As of March 31, 2020. 21

OUTLOOK 22

APPENDIX 23

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. continued on next slide Note: Please refer to the footnotes on slide 28 for additional information. 24

RECONCILIATION OF GAAP MEASURES TO NON-GAAP FINANCIAL MEASURES (UNAUDITED) 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 (1) — 15 Goodwill impairment (2) 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 (3) 17.5% 17.9% Adjusted pre-tax margin (3) 18.4% 18.3% Earnings per common share (4) Basic $ 1.90 $ 3.58 Adjusted basic $ 2.04 $ 3.68 Diluted $ 1.86 $ 3.51 Adjusted diluted $ 2.00 $ 3.61 continued on next slide Note: Please refer to the footnotes on slide 28 for additional information. 25

RECONCILIATION OF GAAP MEASURES TO NON-GAAP FINANCIAL MEASURES (UNAUDITED) Book value per share As of $ in millions, except per share amounts March 31, 2019 December 31, 2019 March 31, 2020 Total equity attributable to Raymond James Financial, Inc. $ 6,366 $ 6,842 $ 6,798 Less non-GAAP adjustments: Goodwill and identifiable intangible assets, net 630 609 603 Deferred tax liabilities, net (35) (31) (30) Tangible common equity attributable to Raymond James Financial, Inc. $ 5,771 $ 6,264 $ 6,225 Common shares outstanding 140.4 138.9 136.8 Book value per share (5) $ 45.34 $ 49.26 $ 49.69 Tangible book value per share (5) $ 41.10 $ 45.10 $ 45.50 continued on next slide Note: Please refer to the footnotes on slide 28 for additional information. 26

RECONCILIATION OF GAAP MEASURES TO NON-GAAP FINANCIAL MEASURES (UNAUDITED) Return on equity Three months ended Six months ended March 31, December 31, March 31, March 31, March 31, $ in millions 2019 2019 2020 2019 2020 Average equity (6) $ 6,255 $ 6,712 $ 6,820 $ 6,292 $ 6,740 Impact on average equity of non-GAAP adjustments: Acquisition and disposition-related expenses (1) NA NA NA 10 NA Adjusted average equity (6) NA NA NA $ 6,302 NA Average equity (6) $ 6,255 $ 6,712 $ 6,820 $ 6,292 $ 6,740 Less: Average goodwill and identifiable intangible assets, net 632 610 606 634 608 Average deferred tax liabilities, net (35) (30) (31) (34) (30) Average tangible common equity (6) $ 5,658 $ 6,132 $ 6,245 $ 5,692 $ 6,162 Impact on average equity of non-GAAP adjustments: Acquisition and disposition-related expenses (1) NA NA NA 10 NA Adjusted average tangible common equity (6) NA NA NA $ 5,702 NA Return on equity (7) 16.7% 16.0% 9.9% 16.2% 13.0% Adjusted return on equity (7) NA NA NA 16.7% NA Return on tangible common equity (7) 18.5% 17.5% 10.8% 17.9% 14.2% Adjusted return on tangible common equity (7) NA NA NA 18.4% NA continued on next slide Note: Please refer to the footnotes on slide 28 for additional information. 27

FOOTNOTES 1. 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. 2. The three months ended September 30, 2019 included a $19 million goodwill impairment charge associated with our Canadian Capital Markets business. 3. 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. 4. 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. 5. 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. 6. 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. 7. 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. 28



Florida	1-9109		59-1517485
(State or other jurisdiction of incorporation)	(Commission File Number)		(I.R.S. Employer Identification No.)

880 Carillon Parkway	St. Petersburg	Florida	33716
(Address of principal executive offices)			(Zip Code)



Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $.01 par value	RJF	New York Stock Exchange



		RAYMOND JAMES FINANCIAL, INC.


Date:	April 29, 2020	By:	/s/ Paul M. Shoukry
			Paul M. Shoukry
			Chief Financial Officer and Treasurer