Raymond James Financial Analyst & Investor Day May 10, 2016 1
8:30 am Welcome & General Overview Paul Reilly 9:00 am Raymond James Bank Steve Raney 9:45 am Private Client Group Scott Curtis 10:15 am Break 10:30 am Fixed Income & Public Finance John Carson 11:00 am Raymond James Canada* Paul Allison 11:30 am Financial Review & Closing Jeff Julien AGENDA 2 *Raymond James Canada includes Raymond James Ltd. and other activities in Canada
FORWARD LOOKING STATEMENTS / NON-GAAP MEASURES 3 Certain statements made in this presentation may constitute “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information concerning future strategic objectives, business prospects, anticipated savings, financial results (including expenses, earnings, liquidity, cash flow and capital expenditures), industry or market conditions, demand for and pricing of our products, acquisitions and divestitures, anticipated results of litigation and regulatory developments or general economic conditions. In addition, words such as “believes,” “expects,” “anticipates,” “intends,” “plans,” “estimates,” “projects,” “forecasts,” and future or conditional verbs such as “will,” “may,” “could,” “should,” and “would,” as well as any other statement that necessarily depends on future events, are intended to identify forward-looking statements. Forward-looking statements are not guarantees, and they involve risks, uncertainties and assumptions. Although we make such statements based on assumptions that we believe to be reasonable, there can be no assurance that actual results will not differ materially from those expressed in the forward- looking statements. We caution investors not to rely unduly on any forward-looking statements and urge you to carefully consider the risks described in our filings with the Securities and Exchange Commission (the “SEC”) from time to time, including our most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, which are available on www.raymondjames.com and the SEC’s website at www.sec.gov. We expressly disclaim any obligation to update any forward-looking statement in the event it later turns out to be inaccurate, whether as a result of new information, future events or otherwise. This presentation also contains financial measures that are not calculated in accordance with U.S. generally accepted accounting principles (GAAP). Information regarding these non-GAAP financial measures and their reconciliation to the most directly comparable GAAP measures is provided in the Appendix to this presentation. These non-GAAP financial measures should be considered in addition to, but not as a substitute for, the financial measures prepared in accordance with GAAP.
WELCOME AND GENERAL OVERVIEW Paul Reilly CEO, Raymond James Financial 4
OVERVIEW OF RAYMOND JAMES FINANCIAL KEY FACTS (as of March 31, 2016) • Headquartered in St. Petersburg, FL • Founded in 1962; public in 1983 • Over 2,700 locations • United States, Canada and overseas • Nearly 6,800 financial advisors • $514 billion of assets under administration • RJF shareholders’ equity of $4.6 billion • Market capitalization of nearly $7 billion *Pie chart above does not include intersegment eliminations or the Other segment Q2 Fiscal YTD 2016 Net Revenues* $2,586,011,000 5
113 CONSECUTIVE PROFITABLE QUARTERS E ar ni ng s P er S ha re (Basic ) Trailing 10 Years 6
OVERVIEW OF RAYMOND JAMES FINANCIAL VALUES-BASED CULTURE INTEGRITY INDEPENDENCE CONSERVATISM CLIENT FIRST 7
LONG-TERM, CONSERVATIVE VIEW >2X Regulatory Requirement ~$1 Billion Cash* 22% As of March 31, 2016 *Parent Cash on hand as of March 31, 2016, including deposits held at RJ Bank Note: >2x regulatory requirement refers to Total Capital Ratio 8
THE PREMIER ALTERNATIVE TO WALL STREET 9
PRIVATE CLIENT GROUP RANKINGS *Only includes AUA for PCG; Note: Data from various dates based on availability. The definitions for AUA and FAs may be inconsistent across companies; rankings exclude RIA custodians but include independent B/Ds. Sources: Various company reports, company presentations, news releases, estimates. Rank Firm Client Assets FAs ($B) 1 Bank of America / Merrill Lynch $2,465 16,672 2 Morgan Stanley 1,999 15,888 3 Wells Fargo & Co. 1,400 15,064 4 UBS Americas 1,084 7,140 5 Edward Jones & Co. 877 14,508 6 RAYMOND JAMES* 486 6,765 7 LPL Financial 476 14,054 8 Ameriprise 447 9,769 10
PRIVATE CLIENT GROUP RANKINGS J.D. POWER INDEPENDENT ADVISOR SATISFACTION SURVEY J.D. POWER EMPLOYEE ADVISOR SATISFACTION SURVEY 2015 J.D. Power Financial Advisor Satisfaction Study Results REP. MAGAZINE BROKER REPORT CARD 2015 11
FIXED INCOME League of Top Municipal Underwriting Firms Source: Thompson Reuters, 2016 Q1, National Lead Managed, Full to Book Rank Firm Par Amount ($B) Market Share (%) # of Issues 1 Citi 13.2 13.7 125 2 Bank of America Merrill Lynch 13.1 13.6 124 3 J P Morgan Securities LLC 8.4 8.8 87 4 Wells Fargo & Co 8.4 8.7 86 5 Morgan Stanley 7.0 7.3 81 6 Stifel Nicolaus & Co Inc 4.9 5.1 251 7 RBC Capital Markets 4.4 4.5 174 8 Raymond James 4.1 4.2 193 9 Goldman Sachs & Co 3.7 3.8 20 10 Piper Jaffray & Co 3.2 3.3 138 11 Ramirez & Co Inc 3.2 3.3 16 12 Barclays 3.0 3.1 22 13 Robert W Baird & Co Inc 2.9 3.0 228 14 Jefferies LLC 1.4 1.5 10 15 William Blair & Company 1.2 1.2 54 12
U.S. CAPITAL MARKETS - UNDERWRITING LEAGUE TABLES Raymond James Relative to Growth Company Focused Peers Raymond James Relative to All Banks Source: Dealogic; Data from 04/01/15 to 03/31/16; includes US Marketed IPO’s & FO’s for US Issuers raising greater than $10 million, excludes CEF’s & SPAC’s13
CORPORATE STRATEGY 14
RECRUITING Public Finance Expansion Advisor Recruiting Investment Banking Life Sciences 15
ACQUISITIONS All references to "Alex. Brown” are intended for illustrative purposes only and are conditioned upon the closing of the transaction whereby Raymond James acquires Deutsche Bank's Private Client Services business. 16
ACQUISITION RATIONALE 1 Culture 2 Strategic Benefit Price4 3 Ability to Integrate 17
CULTURE: SHARED VALUES INTEGRITY INDEPENDENCE CONSERVATISM CLIENT FIRST 18
STRATEGIC BENEFIT: GEOGRAPHIC EXPANSION 19
STRATEGIC BENEFIT: ULTRA HNW 20
STRATEGIC BENEFIT: CONTINUED HNW GROWTH Average Production Top 200 Raymond James $ 2.4 million Alex. Brown $ 1.5 million Average Production Top 800 Raymond James $ 1.5 million Alex. Brown $ 1.5 million Raymond James includes domestic employee and independent contractor advisors. 21
STRATEGIC BENEFIT: ENHANCEMENTS 22
REGULATION 23
REGULATION: DOL 24
CLIENT-FIRST, VALUES-BASED CULTURE INTEGRITY INDEPENDENCE CONSERVATISM CLIENT FIRST 25
RAYMOND JAMES BANK Steve Raney President & CEO, Raymond James Bank 26
RAYMOND JAMES BANK RJ Bank’s vision is to maximize shareholder value through prudent investing, efficient operations and delivery of selected banking products that enhance client relationships while providing mutually beneficial opportunities for financial advisors and affiliates. Conservative Credit Standards Prudent Financial / Capital Management Strong Internal Controls / Regulatory Compliance Sustainable, Profitable Growth Serve Financial Advisors, Retail & Institutional Clients Business Model • Stable, low cost source of deposits • Flexible deposit base and capital base • Only one branch and two ATMs (no plans to increase either) • Synergies with Private Client Group and Capital Markets Segments 27
RAYMOND JAMES BANK Targeted lending strategy focused on corporate, commercial real estate and retail loans. Corporate (C&I) Residential Mortgages Typically target: • Institutional / Capital Markets clients • Relatively mature industries • Near investment grade ratings • EBITDA greater than $25 - $50 million • No mezzanine lending • Mostly floating rate facilities • Target debt service coverage of at least 1.25x Tax-Exempt Lending: • Public Finance clients • Investment grade ratings • Generally secured by pledge of revenues or taxes Typically target: • Private Client Group clients • High credit quality / strong payment histories • Well collateralized loans • No Alt. A / subprime / negative amortizing mortgages Commercial Real Estate (CRE) Typically target: • Institutional / Capital Markets clients • REITs and stabilized properties – limited exposure to construction / development • Project finance loans are well collateralized and provided to experienced borrowers with good repayment histories Securities Based Lending Typically target: • High Net Worth Private Client Group clients • Flexible, LIBOR-based line of credit used for non-purpose lending • Collateralized by assets in brokerage accounts 28
3.31% 3.43% 3.50% 3.25% 2.98% 3.07% 3.00% RAYMOND JAMES BANK 112 173 240 268 243 279 151 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FYTD 16 302* 258 269 336 347 352 414 234 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FYTD 16 Net Revenues ($ millions) Pre-Tax Income ($ millions) Consistent growth in revenues and pre-tax income, although compression of net interest margins has resulted in headwinds since FY 2012. 20% 5-YR CAGR 468* Net Interest Margin Net Revenues * Six months of fiscal 2016, annualized. Notes: Charts not to scale; FYTD 16 includes first two quarters of fiscal year 2016.29 A N N U A L IZ E D A N N U A L IZ E D
RAYMOND JAMES BANK 6,095 6,548 7,992 8,821 10,964 12,988 14,348 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FYTD 16 RAYMOND JAMES BANK NET LOAN GROWTH ($ millions) 16% average annual loan growth since FY 2010. 16% 5 -YR CAGR FYTD 16 is as of March 31, 2016. 30
RAYMOND JAMES BANK RJ Bank maintains a well-diversified loan portfolio, particularly in terms of type of loans. Commercial and Industrial, 50.0% Commercial Real Estate, 17.8% Residential Mortgages, 15.2% Securities Based Loans, 11.7% Tax Exempt Loans, 4.2% Loans Held for Sale, 1.1% LOAN COMPOSITION (% of total loans, Q2 FY 2016) 100% = $14.3B (net) Commercial and Industrial Commercial Real Estate Residential Mortgages Securities Based Loans Tax Exempt Loans Year-over-Year Growth Rates 6.9% 46.2% 12.8% 36.2% 68.7% 18.9%Total Loan Portfolio 31
RAYMOND JAMES BANK Energy Portfolio, 3.1% Energy Portfolio Statistics (Q2 FY 2016)Total Loan Portfolio (Q2 FY 2016) Subsector # of Loans Total ($ millions) Natural Gas / Pipeline Services 8 $134.6 Diversified / Downstream 7 $113.7 Crude / Crude Logistics 5 $60.8 Oilfield Services 4 $58.9 Natural Gas / Gathering and Processing 4 $18.8 Mining and Minerals 3 $52.0 Exploration and Production 1 $12.9 $14.3 billion 32 Loans for $451.6 million, representing 3.1% of Total Loans Energy Reserves of $30.7 million • 15.9% of Total Reserves • 6.8% of Energy Outstandings • 25.1% of Energy Criticized Outstandings The Energy industry, particularly the Exploration and Production subsector, represents only a modest portion of the overall loan portfolio, and RJ Bank continuously monitors its Energy reserves. 32
80,413 33,655 25,894 2,565 13,565 23,570 23,539 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FYTD 16 2.48% 1.64% 1.18% 0.99% 0.69% 0.39% 0.40% FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FYTD 16 2.36% 2.18% 1.81% 1.52% 1.33% 1.32% 1.35% FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FYTD 16 RAYMOND JAMES BANK PROVISION EXPENSE ($ thousands) NET CHARGE OFFS ($ thousands) NONPERFORMING ASSETS (% of total assets) ALLOWANCE FOR LOAN LOSSES (% of loans) 83,601 34,995 24,214 13,309 1,747 (2,757) 1,839 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FYTD 16 Notes: Charts not to scale; FYTD 16 includes first quarter of fiscal year 2016. KEY CREDIT TRENDS 33
RAYMOND JAMES BANK INTEREST RATE RISK SUMMARY $ in 000s Balance as of 3/31/2016 % of Total Assets 5+ year exposure $1,706,916 10.81% 10+ year exposure $1,006,348 6.37% 15+ year exposure $156,947 0.99% Hedge 8.2Y WAM 2.07% WAC $450,000 Net 5+ Year Exposure less Hedge $1,256,916 7.96% Net 10+ Year Exposure less Hedge $556,348 3.52% $ in 000s Balance as of 3/31/2016 Balance $419,421 Average Life 3.18 Duration 2.99 TOTAL PORTFOLIO $ in 000s No Change Shock up 200 bps % Change 12 Month Net Interest Income $481,850 $493,859 2.49% Economic Value of Equity % 14.84% 14.08% (6.62%) LOANS MORTGAGE BACKED SECURITIES WAM – Weighted Average Maturity WAC – Weighted Average Coupon34
RAYMOND JAMES BANK 17.9% 12.7% 10.6% 10.0% 10.1% 9.5% TBD* 15.7% 6.4% 5.6% 6.6% 2.6% 2.6% 2.3% 2010 2011 2012 2013 2014 2015 Mar-16 All Shared National Credits (Industrywide) RJ Bank Shared National Credits Source: OCC, RJF estimates and analysis *Industrywide classified figures were not yet available as of May 10, 2016 RJ Bank Classified 9.3% 3.2% 2.3% 2.1% Industrywide Classified 12.1% 8.5% 7.5% 6.2% 0.8% 5.6% 0.6% 5.8% 1.4% TBD* SHARED NATIONAL CREDITS CRITICIZED LOANS (% OF TOTAL SNC LOANS) 35
RAYMOND JAMES BANK Expand Lending and Cash Management Solutions to Private Client Group including Aligning High Net Worth Offering as part of the Alex. Brown Integration* Lending to Capital Markets Clients GROWTH INITIATIVES RJ Bank’s growth initiatives continue to be focused on strengthening relationships with clients in the Private Client Group and Capital Markets segments. *References to “Alex. Brown” are intended for illustrative purposes only and are conditioned upon the closing of the transaction where by Raymond James has agreed to acquire the U.S. Private Client Services unit of Deutsche Bank Wealth Management. 36
RAYMOND JAMES BANK Higher levels of bank loan loss provision expense commensurate with loan growth More resilient net interest margins; poised for rising rates given limited fixed-rate exposure OUTLOOK Continued growth in loan portfolio with focus on expanding synergies with PCG and Capital Markets Intensifying regulatory environment 37
PRIVATE CLIENT GROUP Scott Curtis President, Raymond James Financial Services 38
PRIVATE CLIENT GROUP The Private Client Group segment includes multiple affiliation options – referred to as AdvisorChoice® – as well as support functions including technology, operations, and practice management. 39
PRIVATE CLIENT GROUP BOOK OWNERSHIP INDEPENDENCE for advisors to run their own businesses Highest possible level of SERVICE REGRETTED ATTRITION Book ownership is based on multiple factors, potentially including asset and production requirements, retention agreements, advisor disciplinary actions, and similar factors. ADVISORS AS CLIENTS 40
PRIVATE CLIENT GROUP Raymond James is one of the largest private client firms in the industry. *Only includes AUA for PCG; RJF client assets and FA count are as of 3/31/2016; Note: Data from various dates based on availability. The definitions for client assets and FAs may be inconsistent across companies; rankings exclude RIA custodians but include independent B/Ds. Sources: Various company reports, company presentations, news releases, estimates. Rank Firm Client Assets FAs ($B) 1 Bank of America / Merrill Lynch $2,465 16,672 2 Morgan Stanley 1,999 15,888 3 Wells Fargo & Co. 1,400 15,064 4 UBS Americas 1,084 7,140 5 Edward Jones & Co. 877 14,508 6 RAYMOND JAMES* 486 6,765 7 LPL Financial 476 14,054 8 Ameriprise 447 9,769 41
1,912 2,192 2,485 2,931 3,290 3,520 1, 75 7 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FYTD 16 PRIVATE CLIENT GROUP ** FY 2012 and 2013 results were adversely impacted by acquisition-related and redundant expenses that were not included in the “Other” segment prior to retail platform consolidation in Feb. 2013. Notes: Charts not to scale; FYTD 16 includes first two quarters of fiscal year 2016; CAGR: 5-Year 2015 Consistent growth in revenue and pre-tax income 13.0% 5-Year CAGR 16.0% 5-Year CAGR A N N U A LI ZE D 42 Total Revenue $ Millions Pre-Tax Income $ Millions 163 220 215 230 330 342 152 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FYTD 16 3,514 304 A N N U A L IZ E D A N N U A L IZ E D
PRIVATE CLIENT GROUP 882 1,002 1,036 1,171 1,353 1,483 738 539 610 835 1,082 1,082 1,186 605 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FYTD 16 RJIS RJL RJA RJFS 1,585 1,818 2,056 2,455 1,447 * First two quarters of fiscal 2016, annualized. Note: RJA includes MK beginning in FY 2012. Charts not to scale 2,893* 13% 5-YR CAGR Compared to 2010, the current mix between the employee (RJA) and independent (RJFS) channels is more balanced. Commissions and Fees ($ millions) 2,758 2,937 43
PRIVATE CLIENT GROUP Fee-Based Accounts, 53.6%Mutual Funds, 21.0% Equities and Fixed Income Securities, 11.6% Insurance and Annuity Products, 12.8% New Issue Sales Credits, 1.0% SECURITIES COMMISSIONS AND FEES (quarter ended March 31, 2016) * 77% of PCG’s total revenue was recurring for the quarter ended March 31, 2016; recurring revenues includes asset based fees, trailing commissions from mutual funds, variable annuities and insurance products, mutual fund service fees, fees earned on funds in our multi-bank sweep program, and interest. RECURRING REVENUE* Recurring revenue driven largely by a high concentration of fee-based accounts. 44
FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 Q2 16 Employees ICs 249 254 368 403 451 453 486 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 Q2 16 PRIVATE CLIENT GROUP *Excludes RIAs with custody-only relationships CAGR: 5-Year 2015 12.7% 5-YR CAGR 5.1% 5-YR CAGR 45 Assets Under Administration $ Billions # of Advisors 5,154 5,216 6,210 6,197 6,265 6,596 6,765
PRIVATE CLIENT GROUP Expand Geographic Footprint Help Advisors Grow Their Business Attract and Retain Highest-Quality Advisors Acquisition of the U.S. Private Client Services Unit of Deutsche Bank Wealth Management NEAR-TERM GROWTH INITIATIVES The near-term growth initiatives for the Private Client Group are largely unchanged from last year, as we have a significant opportunity to grow executing on our current strategy. . . Note: References to “Alex. Brown” are intended for illustrative purposes only and are conditioned upon the closing of the transaction where by Raymond James has agreed to acquire the U.S. Private Client Services unit of Deutsche Bank Wealth Management. 46
PRIVATE CLIENT GROUP OUTLOOK Strong retention and recruiting Continued success leveraging full service resources and capabilities 47
REGULATORY EXPECTATIONS 48
FIXED INCOME & PUBLIC FINANCE John Carson President, Raymond James Financial 49
FIXED INCOME Sales and Trading Research and Strategies Public Finance / Debt Investment Banking • 200+ institutional salespersons and 150+ trading professionals in approximately 35 locations • 50+ experts providing industry-leading research on both taxable and tax-exempt fixed income products • +100 senior bankers and approximately 25 locations throughout the country The fixed income division includes sales and trading, public finance / debt investment banking, and research and strategies. 50
FIXED INCOME Intellectual Capital as a Core Asset Client First, Distribution Focused Model Full-Service Platform Prudent Risk Management High-Grade Product Franchise The fixed income operating model is highly conservative and client-focused. 51
FIXED INCOME Institutional Sales and Trading The institutional sales and trading business is primarily driven by two broadly-defined client segments – depositories and non-depositories – which have distinct characteristics. Depositories (48%*) Non- Depositories: Investment Managers and Insurance Cos. (52%*) Primarily Municipals and Corporates CLIENT BASE DRIVERS • Interest Rates / Yield Curve • Loan growth (inverse relationship) • Volatility PRODUCTS Primarily MBS and Governments • Interest Rates / Yield Curve • Public infrastructure investment / financing • Volatility Fixed Income Institutional Sales and Trading * Approximate percentage of total institutional fixed income commissions (based on Q1 and Q2 FY 2016). 52
FIXED INCOME Institutional Sales and Trading 53
FIXED INCOME Institutional Sales and Trading The institutional sales and trading business is supported by relatively high quality / low risk inventory. . . Municipals, 37.1% Corporate, 21.3% Government / Agency, 20.7% Agency MBS and CMOs, 15.3% Non-agency CMOs and ABS, 5.6% TOTAL RJF FIXED INCOME INVENTORY (as of 3/31/2016) Commentary • Approximately 98.5% of inventory is typically investment grade, of which approximately 70% typically triple-A • Disciplined risk management with conservative aging limits and very high inventory turnover 100% = $645 million 54 Note: Pie chart above is for total RJF, which includes Raymond James Ltd.
FIXED INCOME Institutional Sales and Trading 151,081 127,436 266,884 326,792 246,131 283,828 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FYTD 16 RAYMOND JAMES FINANCIAL INSTITUTIONAL FIXED INCOME COMMISSIONS ($ thousands) 303,682* *First six months of fiscal 2016, annualized. 55 151,841 A N N U A LI ZE D
FIXED INCOME Institutional Sales and Trading RAYMOND JAMES FINANCIAL ESTIMATED MIDDLE MARKET PEER* MARKET SHARE (% of Total Estimated Peer Revenues*) * Peers include FTN Capital, Piper Jaffrey, Stifel, and Raymond James. Peer Revenues are estimates, as public information is limited and may contain inconsistent definitions, etc. 18.5% 21.3% 21.7% 35.1% 41.9% 40.2% 38.7% 2009 2010 2011 2012 2013 2014 2015 56
FIXED INCOME Institutional Sales and Trading 38,256 27,506 55,538 34,069 64,643 58,512 36,584 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FYTD 16 RAYMOND JAMES FINANCIAL NET TRADING PROFITS** ($ thousands) *First six months of fiscal 2016, annualized. **Includes Net Trading Profits from all sources across the firm (Fixed Income, Equity Capital Markets, PCG, etc.); however, the vast majority of Net Trading Profits are typically derived from the Fixed Income business. 73,168* 57 A N N U A LI ZE D
FIXED INCOME Public Finance / Debt Investment Banking The debt investment banking platform includes public finance and six specialty groups. . . 58
. . . and is a top 10 platform in the country. FIXED INCOME Public Finance / Debt Investment Banking Rank Firm Par Amount ($B) Market Share (%) # of Issues 1 Citi 13.2 13.7 125 2 Bank of America Merrill Lynch 13.1 13.6 124 3 J P Morgan Securities LLC 8.4 8.8 87 4 Wells Fargo & Co 8.4 8.7 86 5 Morgan Stanley 7.0 7.3 81 6 Stifel Nicolaus & Co Inc 4.9 5.1 251 7 RBC Capital Markets 4.4 4.5 174 8 Raymond James 4.1 4.2 193 9 Goldman Sachs & Co 3.7 3.8 20 10 Piper Jaffray & Co 3.2 3.3 138 11 Ramirez & Co Inc 3.2 3.3 16 12 Barclays 3.0 3.1 22 13 Robert W Baird & Co Inc 2.9 3.0 228 14 Jefferies LLC 1.4 1.5 10 15 William Blair & Company 1.2 1.2 54 Source: Thompson Reuters, 2016 Q1, National Lead Managed, Full to Book 59
355.8 305.9 348.5 257.3 291.4 258.7 222.5 313.3 12 9. 3 2008 2009 2010 2011 2012 2013 2014 2015 FYTD 16 FIXED INCOME Public Finance / Debt Investment Banking * First six months of fiscal 2016, annualized. Source: Thomson Reuters INDUSTRYWIDE NEGOTIATED ISSUANCE TRENDS ($ billions) Challenges • Competition from Bank Loans • Fee Compression 258.5* 60 A N N U A LI ZE D
FIXED INCOME Public Finance / Debt Investment Banking 12,943 16,070 36,987 48,133 55,275 42,149 19,683 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FYTD 16 RAYMOND JAMES FINANCIAL FIXED INCOME INVESTMENT BANKING REVENUES** ($ thousands) * First six months of fiscal 2016, annualized. ** Does not include institutional or retail commissions associated with the issuances. 39,366* 61 A N N U A LI ZE D
FIXED INCOME Outlook Continued geopolitical uncertainty Low interest rates Intense regulatory pressure: Dodd-Frank, Municipal Advisory Rule, Volcker Rule, Basel III 62
FIXED INCOME Strategic Growth Initiatives Fortify Strengths in Core Businesses Diversify Revenue Base of Fixed Income Sales and Trading (e.g. corporates, CRA) Expand Public Finance Penetration in Higher-Issuance Geographies and Higher-Margin Specialty Lines 63
FIXED INCOME Summary of Strategy Continue to Invest in Down Markets Recruit and Retain the Best Talent Maintain Conservative Risk Management Manage Expenses and Optimize Margins WHAT IS THE CURRENT STRATEGY IN FIXED INCOME? 64
RAYMOND JAMES CANADA Paul Allison Chairman and CEO, Raymond James Ltd. 65 *Raymond James Canada includes Raymond James Ltd. and other activities in Canada
OVERVIEW OF RAYMOND JAMES CANADA Private Client Group • Over 370 financial advisors with over C$27 billion of total client assets • ~100 branches throughout Canada, with a concentration in Alberta, British Columbia, and Ontario • AdvisorChoice® platform offering the employee and independent contractor affiliation options Capital Markets • 18 analysts covering 240 companies • 30 investment bankers focused on energy, mining, industrials, and real estate verticals • Over 30 institutional equity sales and trading professionals Corporate Services Group 66 Banking Business • Approximately C$1.5 billion of loans to Canadian borrowers, 42% of which are to RJF cross-sell clients • Grown to a Top-15 lender among non- Canadian commercial banks (Top -25 among all commercial banks in Canada) • Leverage firm-wide capabilities to access and underwrite new deals and monitor the existing loan portfolio Asset Management • Approximately $300 million of AUM in Canada with pension funds, sub-advisory, and retail relationships • In the process of evaluating new products to offer in Canada
FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 OVERVIEW OF RAYMOND JAMES CANADA 256 339 297 311 323 279 124 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FYTD 16 Notes: Charts not to scale; Figures represent total revenues and pre-tax income generated in Canada, primarily including but not limited to Raymond James Ltd; Figures in USD *Revenue trends based on CAD Total Revenues ($ Millions) Revenue Trends* % of Total RJF 8.6% 7.6% 6.8% 6.5% 5.3% 4.7%10.0% 67 PCG Capital Markets
OVERVIEW OF RAYMOND JAMES CANADA Sources: SNL Financial; Investor Economics; S&P Dow Jones Indices In terms of total population (~35.9 million) and nominal GDP (~$2.0 trillion), Canada is about one tenth the size of the USA. Over the past twelve months, the TSX has seen larger declines than the S&P 500 due to weaker global demand for commodities. Market Commentary TSX & S&P 500 • Relative to the USA, Canada’s economy is much more resource- based (over 30% of TSX represented by Energy and Materials, versus less than 10% for S&P 500) • The financial industry in Canada is dominated by the “Big Six” Banks 68 -600% -500% -400% -300% -200% -100% 0% 100% 200% Apr 2015 Jul 2015 Oct 2015 Jan 2015 Apr 2016 S&P 500 S&P TSX Composite
OVERVIEW OF RAYMOND JAMES CANADA Financials, 37.9% Energy, 19.3% Materials, 11.0% Industrials, 8.2% Con. Discretionar y, 6.8% Telecom, 5.6% Healthcare, 0.9% Con. Staples, 4.7% Utilities, 2.5% Info Tech, 3.1% Canada – TSX Composite Index Industry Weighting Financials, 15.6% Energy, 6.8% Materials, 2.8% Industrials, 10.1% Con. Discretionar y, 12.9%Telecom, 2.8% Healthcare, 14.4% Con. Staples, 10.4% Utilities, 3.4% Info Tech, 20.8% Sources: S&P Dow Jones Indices The markets in Canada are primarily driven by financials, energy, materials, and industrials, whereas the markets in the USA are led by the information technology and financials industries. 69 USA – S&P 500 Index Industry Weighting
OVERVIEW OF RAYMOND JAMES CANADA 70
RAYMOND JAMES CANADA: PRIVATE CLIENT GROUP Note: All client asset figures are estimates based on the best information found. The figures likely have different definitions at the various firms and are only intended to show the approximate relative size of Raymond James Ltd. to its competitors. Data from various sources / estimates based on availability While Raymond James is a top 10 Private Client Group firm in Canada, there is significant room for growth. PRIVATE CLIENT GROUP RANKINGS IN CANADA 71 Rank Firm Client Assets (C$ Billion) 1 RBC Dominion Securities $217.0 2 CIBC Wood Gundy ~$145.0 3 BMO Nesbitt Burns ~$140.0 4 ScotiaMcleod ~$100.0 5 National Bank Financial ~$88.4 6 TD Waterhouse Private Investment Advice ~$50.0 7 Raymond James Ltd. $27.2 8 Richardson GMP $26.3 9 Desjardins Securities $25.0 10 Canaccord Genuity Wealth Management $9.0
RAYMOND JAMES CANADA: PRIVATE CLIENT GROUP 16.8 18.0 20.7 21.5 24.0 26.5 27.2 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FYTD 16Advisor Count 407 417 438 406 Raymond James Canada has over C$27 billion in total client assets, representing a 9% annual growth rate since FY 2010. Since FY 2010, the average productivity of financial advisors in Canada – in both the employee and independent contractor channels – has increased significantly. 391 ~9% CAGR 383 371 72 27.8 26.7 29.6 32.1 38.4 40.5 43.5 54.2 57.8 64.9 70.9 80.2 89.1 88.4 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FYTD 16 Assets per Advisor (C$ Millions) Employee 9.3% CAGR Independent Contractor 8.4% CAGR Client Assets (C$ Billions)
73 RAYMOND JAMES CANADA: EQUITY CAPITAL MARKETS New Investment Banking Sectors in Canada Power and Utilities Consumer Agriculture / Chemicals / Environment Transportation
Raymond James Ltd. M&A League Table RAYMOND JAMES CANADA: EQUITY CAPITAL MARKETS Raymond James Ltd. Equity League Table Source: Thomson Reuters; Bloomberg (Full Credit to Bookrunner) Rank Bank Proceeds (C$M) Market Share (%) 1 RBC Capital Markets $4,867.3 30.7% 2 TD Securities $3,697.6 23.3% 3 CIBC World Markets $2,236.5 14.1% 4 Scotiabank $1,897.4 12.0% 5 BMO Capital Markets $1,395.4 8.8% 6 Credit Suisse $383.3 2.4% 7 Peters & Co. $309.5 2.0% 8 FirstEnergy Capital $295.4 1.9% 9 National Bank $285.5 1.8% 10 Barclays $112.8 0.7% 11 Raymond James $109.0 0.7% 12 GMP Capital Corp. $73.6 0.5% 13 Macquarie Group $61.4 0.4% 14 Cormark Securities $40.6 0.3% 15 Dundee Securities Corp. $34.6 0.2% 16 Canaccord Genuity $23.0 0.1% 17 Cantor Fitzgerald $16.0 0.1% 18 Clarus Securities $13.5 0.1% 19 Paradigm Capital $7.5 0.1% 20 INFOR Financial $7.5 0.1% (Q1 2016) Rank Bank Deal Value (C$M) # of Deals 1 RBC Capital Markets $1,606.0 10 2 National Bank Financial $1,284.0 5 3 BMO Capital Markets $1,018.0 7 4 Bank of Nova Scotia $996.0 4 5 Moelis & Co $791.0 2 6 CIBC $515.0 6 7 Barclays $407.0 1 8 JP Morgan Chase $383.0 1 9 Morgan Stanley $361.0 1 10 TD Securities $338.0 2 11 Goldman Sachs $323.0 1 12 Bank of America Merrill Lynch $323.0 3 13 FirstEnergy Capital $262.0 1 14 Lazard $250.0 1 15 Cormark $245.0 3 16 Houlihan Lokey $244.0 2 17 Macquarie Group $233.0 2 18 Canaccord Genuity $221.0 1 19 Haywood Securities $209.0 6 20 Oppenheimer $198.0 1 32 Raymond James $28.0 3 While Raymond James already has a meaningful investment banking presence in Canada, there is a significant opportunity to continue gaining share, particularly in M&A. 74
RAYMOND JAMES CANADA: EQUITY CAPITAL MARKETS Raymond James covers 240 companies in Canada. The median market capitalization of the covered companies in Canada is C$915 Million. 240 250 260 271 257 235 240 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FYTD 16 2,657 2,041 2,657 2,965 4,100 3,342 3,535 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FYTD 16 # of Companies under Coverage Coverage Market Cap. (C$ Millions) Median Market Cap 419 511 592 Notes: Charts not to scale; Please note not all companies under coverage may be actively published at any given point in time. 939 781 915 75 560
RAYMOND JAMES CANADA: EQUITY CAPITAL MARKETS 4.0% 4.0% 3.7% 4.3% 4.7% 741 683 522 500 600 577 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 Industry Secondary Commissions in Canada (C$ millions) (5%) CAGR Raymond James Market Share Sources: Brendan Wood International Similarly to the USA, industry secondary commissions have declined significantly over the past five years. Meanwhile, Raymond James’s share of secondary commissions increased 70 basis points during the same time period. 76 Canadian Domestic Market: AUM: ~$950 billion Across ~130 institutions
RAYMOND JAMES CANADA: EQUITY CAPITAL MARKETS Sources: Brendan Wood International 77 1,730 1,740 1,370 1,040 1,400 1,720 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 38.2 38.1 41.4 33.2 38.7 32.6 Equity Issuances in Canada 1,810 1,880 1,943 1,867 2,021 2,276 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 182.4 145.7 234.1 342.7 198.8 154.5 M&A Deals in Canada Deal Value ($billions) Deal Value ($billions) Deal Count Deal Count
STRATEGIC GROWTH INITIATIVES Strengthen the Core Businesses and Recruit High Quality Associates in both PCG and Capital Markets businesses Expand Geographically (Quebec) Selectively Pursue Acquisitions 78
SUMMARY OF STRATEGY Expands Presence in Attractive Market Leverages Capabilities of Raymond James Strengthens Global Platform Provides Diversification The long-term target is to grow Raymond James Canada to 10% of the firm’s overall revenues and pre-tax earnings. Why is Raymond James in Canada? 79
FINANCIAL REVIEW & CLOSING Jeff Julien CFO, Raymond James Financial 80
OVERVIEW OF RAYMOND JAMES FINANCIAL 2,917 3,334 3,807 4,485 4,861 5,200 2,586 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FYTD 16 14.6% 14.3% 14.2% 17.8% Net Revenues Recurring Revenues** (%) 53.9% 55.0% 55.5% 56.3% 61.3% * Six months of fiscal 2016, annualized ** Includes fee-based accounts, investment advisory fees, interest income, cash sweep fees, and financial service fees (% is based on total revenues) 8.4% 64.3% 7.0% NET REVENUE GROWTH ($ millions) 12.3% 5-YR CAGR Annual Growth 5,172* 66.5% 81
OVERVIEW OF RAYMOND JAMES FINANCIAL 12.4% 15.1% 14.0% 14.4% 15.4% 15.3% 14.5% Pre-Tax Income Pre-Tax Margin** For a reconciliation of the GAAP to the Non-GAAP measures, please see the Schedule of Non-GAAP Information. ** Based on net revenues. *** Six months of fiscal 2016, annualized 45.4% 39.0% 6.0% 20.8% 17.1% 5-YR CAGR PRE-TAX INCOME GROWTH ($ millions; %) 16.2% Annual Growth 6.7% 748*** 82 362 503 533 644 748 798 374 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FYTD 16 A N N U A LI ZE D
OVERVIEW OF RAYMOND JAMES FINANCIAL PRE-TAX INCOME BY CORE SEGMENT ($ millions) 163 220 215 230 330 342 79 83 76 102 131 107 47 66 67 96 128 135 112 173 240 268 243 279 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 RJ Bank Private Client Group Capital Markets Asset Management Note: Historical figures may not tie perfectly to other financial reports due to accounting changes, etc. 83
OVERVIEW OF RAYMOND JAMES FINANCIAL 13.1 15.7 15.6 13.0 7.9 10.6 11.3 9.7 10.6 12.3 11.5 13.5 23.2 13.4 6.7 3.9 8.9 7.8 8.0 10.4 11.6 8.4 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 RJF Competitor Group Median* * Except as otherwise indicated, all numbers represented in bar chart are GAAP (for both RJF and Competitor Group). Competitor Group includes GS, MS, SF, LPLA, PJC, SCHW, EVR, LAZ (Source: RJF Financial Reports; SNL Financial). 8% pts. 19% pts. RETURN ON EQUITY RJF VS. COMPETITOR GROUP* (%) 84
CONSERVATIVE FINANCIAL MANAGEMENT Total Assets $27.8 billion Equity Attributable to RJF $4.635 billion Leverage (Assets/RJF Equity) 6.0x $1.1 billionSenior Notes Payable Level 3 Assets to RJF Equity Total Capital Ratio Tier 1 Leverage Ratio 6.5%* 21.9%* 15.3% Regulatory Requirements * Level 3 Assets in the calculation exclude impaired loans and the noncontrolling interests in private equity holdings ** Total Capital Ratio computed in accordance with Basel III 8% 4% BALANCE SHEET DATA (as of March 31, 2016) Leverage (excl. RJ Bank) 3.9x 85
CONSERVATIVE FINANCIAL MANAGEMENT 2016* 2019 2024 2042**Maturity $ mm; Coupon Vintage CORPORATE DEBT (as of March 31, 2016) 2009 2012 2012 $300 @ 8.60% $250 @ 5.625% $350 @ 6.90% Substantial Uses of Parent Company Cash in Fiscal 2016 • $144.5 million of share repurchases as of March 31, 2016 • Approximately $55 million of cash Shareholder dividends through March 31, 2016 • $250 million 4.25% Senior Note maturity in April 2016* • Estimated $420 million for planned acquisition*** currently expected in September 2016 86 *$250 million 4.25% Senior Notes were repaid in full in April 2016 **Can be called anytime after March 2017 ***U.S. Private Client Services Unit of Deutsche Bank Wealth Management $250 @ 4.25% 2011
CONSERVATIVE FINANCIAL MANAGEMENT CAPITAL DISCUSSION 19.8% 22.2% 18.8% 17.0% 20.7% 23.4% 19.8% 20.5% 27.4% 23.0% Q1 FY 2014 Q2 FY 2014 Q3 FY 2014 Q4 FY 2014 Q1 FY 2015 Q2 FY 2015 Q3 FY 2015 Q4 FY 2015 Q1 FY 2016 Q2 FY 2016 Earnings per Diluted Share (GAAP) Dividend per Share* Average Dividend Payout 21.3% $0.16 $0.81 $0.16 $0.72 Dividends: Target is typically 15-25% of earnings. In market downturns, the company maintains its most recent dividend if feasible Securities Repurchases: Historically, an opportunistic approach. Typically target stock repurchases when the price of RJF stock falls to relatively low price multiples and to purchase shares surrendered by employees as payment for option exercises $0.85 $0.94 $0.16 $0.16 $0.18 $0.87 $0.18 $0.77 Raymond James has maintained a disciplined and consistent approach to capital deployment, with a priority on deploying capital to grow the business. $0.18 $0.91 $0.18 $0.88 $0.20 $0.73 $0.20 $0.87 *Timing of quarterly dividends based on payment date to shareholders 87
CONSERVATIVE FINANCIAL MANAGEMENT 6.0% 6.5% 7.0% 7.5% 8.0% 8.5% 9.0% 9.5% 10.0% M ar -1 0 M ay -1 0 Ju l-1 0 S ep -1 0 N ov -1 0 Ja n- 11 M ar -1 1 M ay -1 1 Ju l-1 1 S ep -1 1 N ov -1 1 Ja n- 12 M ar -1 2 M ay -1 2 Ju l-1 2 S ep -1 2 N ov -1 2 Ja n- 13 M ar -1 3 M ay -1 3 Ju l-1 3 S ep -1 3 N ov -1 3 Ja n- 14 M ar -1 4 M ay -1 4 Ju l-1 4 S ep -1 4 N ov -1 4 Ja n- 15 M ar -1 5 M ay -1 5 Ju l-1 5 S ep -1 5 N ov -1 5 Ja n- 16 M ar -1 6 CLIENT CASH BALANCES* TO TOTAL CLIENT ASSETS UNDER ADMINISTRATION (%) 8.1% Average * Does not include cash held through non-money market mutual funds or cash equivalents, etc. Domestic retail business only. For the past several quarters, client cash balances to total client assets have remained below the historical averages. 88
CONSERVATIVE FINANCIAL MANAGEMENT Brokerage Client Cash / Cash Interest Program (~$5 B) Raymond James Bank Deposit Program (RJBDP) (~$33 B) Client Margin Loans (~$2 B) Raymond James Bank’s Earning Assets (~$12 B***) Off-Balance Sheet Assets Earning Fees (~$23 B) Segregated Assets (~$3 B) to Raymond James Bank (~$12 B) to unaffiliated banks (~$21 B) Money Market Mutual Funds (~$2 B) CLIENT CASH BALANCES* (~$40 B) CORRESPONDING ASSETS • NII to PCG Segment • NII to PCG Segment • NII to Raymond James Bank • Account and Service Fees to PCG Segment** • Account and Service Fees to PCG Segment * Includes money market mutual funds ** These Account and Service Fees from RJ Bank to PCG are eliminated in the consolidated financial statements *** Average earning assets for RJ Bank was ~$15.2B for the period; the ~$12 B represents the estimated amount funded with Client Cash (the other portion funded with capital, other borrowings, and other cash balances). Note: The diagram does not contain all of the firm’s interest bearing assets and liabilities; instead, the diagram is intended to only illustrate those interest bearing assets and liabilities that are related to domestic client cash balances; the numbers on this page are directional any may not tie perfectly to other financial reports; numbers may not add due to rounding OVERVIEW OF SENSITIVITY TO CHANGES IN SHORT-TERM INTEREST RATES (as of March 31, 2016) 89
INTEREST RATE SENSITIVITY 90 Estimates as of March 31, 2016 and based on several assumptions including RJF’s estimates of the timing and amount of: Earning / deposit rates paid on clients’ cash balances, Client cash balance levels, Level of earning assets; and RJ Bank’s net interest margin Assumptions Estimated Incremental Annual Pre-Tax Income from a Rise in Short-Term Interest Rates Note: $ in millions ~$80 ~$80 ~$160 ~$80 Potential upside based on several assumptions Annual Pre-Tax Income already being realized First 25 bps increase in the Fed Funds Rate (December 2015) Next 75 bps increase in the Fed Funds Rate Total benefit from the first 100 bps increase
FINANCIAL TARGETS FIRM TARGETS: PRE-TAX MARGIN*, COMPENSATION RATIO, AND RETURN ON EQUITY Metric Target** Commentary Pre-Tax Margin* >16% • Assumes similar revenue level and mix as FYTD 2016 • Targets by segment: PCG (10%), Capital Markets (12% - 15%), Asset Management (30%+) Compensation Ratio* <68% • Assumes similar business mix as FYTD 2016 Return on Equity 11% - 12% • Assumes similar revenue levels, business mix, and capital levels as FYTD 2016 *On net revenues. ** In current market and interest rate environment. Achieving targets could be impacted by various factors; please refer to Forward Looking Statement disclosure at the beginning of this presentation. 91
FINANCIAL SUMMARY KEY TAKEAWAYS WELL CAPITALIZED (LOW LEVERAGE) AMPLE LIQUIDITYRELATIVELY LOW VOLATILITY OF EARNINGS TRACK RECORD OF PROFITABLE GROWTH 92
SCHEDULE OF NON-GAAP INFORMATION (continued on next slide)93
SCHEDULE OF NON-GAAP INFORMATION (continued from prior slide) Footnote Explanations: 1. The non-GAAP adjustment adds back to pre-tax income one-time acquisition and integration expenses associated with acquisitions that were incurred during each respective period. 2. The non-GAAP adjustment adds back to pre-tax income RJF’s share of the total goodwill impairment expense associated with our RJES reporting unit. 3. The non-GAAP adjustment adds back to pre-tax income restructuring expenses associated with our RJES operations. 4. The non-GAAP adjustment adds back to pre-tax income the incremental interest expense incurred during the March 31, 2012 quarter on debt financings that occurred in March 2012, prior to and in anticipation of, the closing of the Morgan Keegan acquisition. 5. The non-GAAP adjustment adds back to pre-tax income the loss associated with the resolution of the auction rate securities matter. 6. The income tax effect of all the pre-tax non-GAAP adjustments, utilizing the effective tax rate applicable to the respective year. 7. The non-GAAP adjustment to the weighted average common shares outstanding in the basic and diluted non-GAAP earnings per share computation reduces the actual shares outstanding for the effect of the 11,075,000 common shares issued by RJF in February 2012 as a component of the financing of the Morgan Keegan acquisition. 8. Computed by adding the total equity attributable to RJF, Inc. as of each quarter-end during the year-to-date period, plus the beginning of the year total, divided by five. 9. The calculation of non-GAAP average equity includes the impact on equity (the after-tax effect) of the pre-tax non-GAAP adjustments described in the table above, as applicable for each respective period. 10. Computed by utilizing the net income attributable to RJF, Inc.-non-GAAP basis and the average equity-non-GAAP basis, for each respective period. See footnotes 8 and 9 above for the calculation of average equity-non-GAAP basis. 94
SCHEDULE OF NON-GAAP INFORMATION (continued on next slide)95
SCHEDULE OF NON-GAAP INFORMATION (continued from prior slide) Footnote Explanations: 1. The non-GAAP adjustment adds back to pre-tax income acquisition-related expenses associated with our announced acquisition of the US Private Client Services unit of Deutsche Bank WM incurred during each respective period. 2. The non-GAAP adjustment reduces net income for the income tax effect of all the pre-tax non-GAAP adjustments, utilizing the year-to-date effective tax rate in such period to determine the current tax expense. 3. For the quarter, computed by adding the total equity attributable to RJF as of the date indicated plus the prior quarter-end total, divided by two. For the year-to-date period, computed by adding the total equity attributable to RJF as of each quarter-end date during the indicated year-to-date period, plus the beginning of the year total, divided by three. 4. The calculation of non-GAAP average equity includes the impact on equity of the non-GAAP adjustments described in the table above, as applicable for each respective period. 5. Computed by utilizing the adjusted net income attributable to RJF non-GAAP and the average equity non-GAAP, for each respective period. See footnotes (3) and (4) above for the calculation of average equity non-GAAP. 6. Computed by utilizing the adjusted pre-tax income attributable to RJF non-GAAP and net revenues (GAAP basis), for each respective period. 96
97 EXECUTIVE COMMITTEE BIOS
EXECUTIVE COMMITTEE BIOS 98 Paul Reilly Chief Executive Officer Raymond James Financial Presenting Paul Reilly became chief executive officer of Raymond James Financial in May 2010, after joining the firm’s management team as president and CEO-designate in May 2009. He has served on the firm’s board of directors since 2005. From July 2007 to April 2009, he was executive chairman of Korn/Ferry International, a global provider of talent management solutions with more than 90 offices in 39 countries throughout North America, Latin America, Europe, the Middle East, Africa and Asia Pacific. Mr. Reilly began his tenure with the company as chairman and CEO in 2001. Prior to Korn/Ferry, he was CEO at KPMG International, a firm of more than 100,000 employees with annual revenues of $12 billion. Based in Amsterdam, he was responsible for the overall strategy and implementation of the firm's products, services and infrastructure on a global basis. Before being named CEO at KPMG, he ran the firm's financial services business and earlier had held senior management positions in its real estate consulting group. Mr. Reilly holds his Bachelor of Science degree and MBA from the University of Notre Dame and earned the Certified Public Accountant designation. He serves on the Mendoza Graduate Alumni Board and the school’s Business Advisory Council, and was the recipient of the Distinguished Alumnus Award in 2004-2005. He is a current member of the National Leadership Roundtable on Church Management and a past member of the board for Our Lady of Divine Providence House of Prayer in Clearwater, Florida, where he now serves as a trustee for the foundation. A native of St. Petersburg, Florida, Mr. Reilly is also active with the American Heart Association as the 2014 Tampa Bay Heart Walk chair, and is the executive compensation committee chair for United Way Suncoast.
99 EXECUTIVE COMMITTEE BIOS Presenting Steven Raney is a Tampa native and has worked in the area’s banking community since 1988. He is currently the president and CEO of Raymond James Bank, a wholly-owned subsidiary of Raymond James Financial. RJ Bank’s core business includes a residential lending platform that supports the mortgage loan needs of the firm’s clients, as well as a significant corporate and real estate lending business. Mr. Raney also serves on the board of Raymond James Trust Company and is one of the firm’s representatives on the Financial Services Roundtable, an industry leadership group of the 100 largest financial services firms in the country. He currently serves on the Executive Council of Raymond James & Associates and is a member of the Government Relations Committee of the Florida Banker’s Association. Prior to joining RJ Bank in 2006, he worked for Bank of America for 17 years serving as Tampa president and commercial banking executive for Central Florida. He also spent a year working at LCM Group, a Tampa-based investment and private equity firm. Mr. Raney graduated from Chamberlain High School in 1983. He earned a bachelor’s degree in Finance from the University of Florida and an MBA from the Hough Graduate School of Business at the University of Florida. Mr. Raney serves on the board of trustees of the Tampa Bay History Center and he is also an elder at Palma Ceia Presbyterian Church. Steve Raney President and CEO Raymond James Bank
100 EXECUTIVE COMMITTEE BIOS Presenting As president of Raymond James Financial Services, Mr. Curtis directs Raymond James’ independent contractor business that includes approximately 3,200 retail financial advisors. He was promoted to his current position following six years as senior vice president of Raymond James & Associates Private Client Group (PCG) where he was responsible for prioritizing and directing numerous initiatives focused on PCG revenue growth, margin enhancement, service improvement, and risk mitigation. Scott joined Raymond James in February 2003 as president of Raymond James Insurance Group. Mr. Curtis spent the prior thirteen years of his career with GE Financial Assurance in a variety of senior leadership roles -- including as national sales director for mutual funds and annuities and as president of the firm’s FINRA- registered broker/dealer. Mr. Curtis earned a MBA degree from the Ross School of Business at the University of Michigan and received a BA in economics and English from Denison University. Scott is a Trustee of SIFMA’s Securities Industry Institute program at the Wharton School and serves on the Board for the Chi Chi Rodriguez Academy Youth Foundation. Scott Curtis President Raymond James Financial Services
101 EXECUTIVE COMMITTEE BIOS Presenting John Carson is president of Raymond James Financial, Inc. and a member of the firm’s executive committee. He also serves as head of the fixed income and public finance divisions. Mr. Carson joined Raymond James in April 2012 when Morgan Keegan was acquired by Raymond James. He joined Morgan Keegan in the fixed income department in 1994 and became chief executive officer of Morgan Keegan & Company in 2008. He served on the ALCO and management committees of Regions Financial Corporation from 2007 to 2012. Mr. Carson began his career at Chase Manhattan Bank in New York and in Caracas, Venezuela, where he focused on correspondent banking and currency arbitrage. He subsequently joined Morgan Stanley & Co., where he traded repo, U.S. agency debt, and mortgage- backed securities in New York and Tokyo. He briefly worked for Security Pacific as director of agency trading in Los Angeles and subsequently U.S. dollar-denominated trading in Tokyo, before returning to Morgan Stanley to serve as manager of asset-backed products in Asia. Originally from La Jolla, California, Mr. Carson holds a Bachelor of Arts degree from Dartmouth College, with a double major in International Economics and History, and an MBA from Harvard Business School. He and his wife, Suki, have four sons. John Carson Jr. President, Raymond James Financial President, Fixed Income Capital Markets
102 EXECUTIVE COMMITTEE BIOS PresentingPaul Allison Chairman and CEO Raymond James Ltd. As chairman and chief executive officer of Raymond James Ltd., Paul Allison oversees business-building efforts and strategic leadership of the firm’s Canadian operations, including Equity Capital Markets, Private Client and Corporate Services. Prior to joining the firm in August 2008, he worked as executive vice president and vice-chairman at Merrill Lynch Canada, as well as co- head of the firm’s Investment Banking business. Before joining Merrill, he was head of Equity Capital Markets at BMO Nesbitt Burns, one of Canada’s leading bank-owned investment dealers. Mr. Allison brings more than 26 years of senior capital markets and investment banking experience to this role, including underwriting and arranging public and private debt and equity capital raising, as well as developing and managing retail products. An active volunteer in various charitable and industry organizations, Mr. Allison is a director of the Investment Industry Association of Canada; member of the Dean’s Business Advisory Council, DeGroote School of Business, McMaster University; and he is also Board Vice Chair and Chair of the Governance/Nominating Committee at Humber River Regional Hospital. Mr. Allison holds a Master of Business Administration degree (MBA) and a Bachelor’s degree in Mechanical Engineering and Management from McMaster University. He is a member of the Association of Professional Engineers.
103 EXECUTIVE COMMITTEE BIOS Presenting In addition to his positions as executive vice president of finance and chief financial officer of Raymond James Financial, Inc., Jeff Julien serves as Chairman of the Board of both Raymond James Trust Company and Raymond James Bank. He also serves in a director capacity for many of the firm’s other subsidiaries. His responsibilities include managing all aspects of financial reporting, corporate taxation, certain employee benefit and insurance programs, cash management, transaction cost analysis, corporate acquisition analysis and new business development. He also oversees operations of Raymond James Bank and Raymond James Trust Company. Mr. Julien joined Raymond James in 1983 after working as CPA for Price Waterhouse (now Pricewaterhouse Coopers) in Tampa, Florida. He became chief financial officer in 1987. Mr. Julien earned his bachelor’s degree in management science with a concentration in accounting from Duke University in 1978. Jeffrey P. Julien Chief Finance Officer Raymond James Financial
104 Bella Allaire Executive Vice President Technology and Operations As executive vice president of technology and operations for Raymond James, Bella Loykhter Allaire oversees the firm’s technology and operations functions, including client service and the technology platforms for our advisors and capital markets professionals. Previously, she was managing director and chief information officer of UBS Wealth Management Americas, where she developed and executed the strategic road map to transform legacy Paine Webber technology into a differentiating wealth management platform. She began her career at Prudential Securities, where she worked for 26 years in a variety of capacities in its technology area before being promoted to executive vice president and chief information officer in 2000. During her tenure as CIO, managing a team of more than 2,000 professionals with a budget of more than $500 million, she was recognized for her leadership in establishing the firm’s technology platform as a model for best practices in supporting financial advisors and their clients. After Wachovia’s acquisition of Prudential Securities in 2003, Ms. Allaire became a technology strategy consultant to Morgan Stanley and served as CEO of Wealthigen, initiating a securities line of business for Exigen Group, a software development firm. Her professional affiliations include Fortune magazine’s 500 Most Powerful Women in Business, Wall Street Technologists Board of Directors and the NASDAQ Technology Group. Born and educated in Ukraine, earning her bachelor’s degree from Lviv University, she immigrated to the United States in 1977. EXECUTIVE COMMITTEE BIOS Not Presenting
105 EXECUTIVE COMMITTEE BIOS Not Presenting Serving as executive vice president of Raymond James Financial Inc.’s asset management group, Jeff Dowdle oversees the firm’s investment management subsidiaries and fee-based advisory programs. A 23-year veteran of Raymond James, Mr. Dowdle was previously president of the Asset Management Services division and senior vice president of Raymond James & Associates. In 1987, Mr. Dowdle entered the financial services industry as a financial analyst for Simmons & Company International in Houston, Texas. He began his association with Raymond James in 1991 working for Tom James as assistant to the chairman. Mr. Dowdle joined the Asset Management Services division in 1993 and assumed management responsibility in 1999. From 1999 to 2001, he served as a member of the Raymond James & Associates Executive Council, and served as a director of the Awad Asset Management subsidiary from 2001 to 2006. Mr. Dowdle graduated summa cum laude in 1987 from Rice University with a bachelor’s degree in economics and mathematical sciences, and was also inducted as a Phi Beta Kappa member that year. In 1990, he earned his MBA with distinction in finance from the Wharton School of Business at the University of Pennsylvania. He graduated from the Securities Industry Institute at the Wharton School of Business in 1999 and earned his Certified Investment Management AnalystSM designation in 2004. Mr. Dowdle resides in Tampa with his wife, Jeanne, and their children: Matthew, James, Emma and George. His daughter, Elizabeth, and her husband, Eric, reside in Virginia. Jeff Dowdle Executive Vice President Asset Management Group
106 EXECUTIVE COMMITTEE BIOS Not Presenting Prior to being appointed to his current position in January 2012, Tash Elwyn served for five years as divisional director, senior vice president of the Atlantic Division of RJA. In that role, he devoted his energies to attracting new advisors to the firm and supporting advisors’ growth plans and adoption of best practices. In addition to his role as president of Raymond James & Associates, Mr. Elwyn also serves on the Board of Raymond James Bank and was formerly on the board of Raymond James Trust Company. Elwyn began his career at Raymond James in 1993 as a financial advisor trainee out of college. After building a successful practice, he became an assistant branch manager in Atlanta and subsequently a branch manager in Chattanooga. Elwyn earned a Bachelor of Arts in political science from Emory University in 1993. Over the years, Elwyn has contributed to Emory through his service with the Emory Board of Governors, the Emory College Alumni Board, the Alumni Admissions Network and as a mentor in the Emory Career Network. Mr. Elwyn is an alumnus of the Securities Industry Institute, an educational partnership between Wharton and SIFMA. He has continued his executive education by also completing the Strategic Thinking and Management for Competitive Advantage program at the Aresty Institute of Executive Education at Wharton. Locally, Mr. Elwyn is active in the University of South Florida Corporate Mentor Program and is a board member for the St. Petersburg Opera. He was born in Boston and grew up in Stone Mountain, Georgia. He is married and has two children. Tash Elwyn President Raymond James and Associates Private Client Group
107 Tom James Executive Chairman Raymond James Financial Thomas A. James is executive chairman of Raymond James Financial, Inc. (NYSE-RJF), and chairman of its subsidiary, Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. Until May of 2010, he served as chief executive officer of Raymond James Financial, a title he had held since 1970. Mr. James graduated magna cum laude from Harvard College in 1964 and from Harvard Business School in 1966, where he was a Baker Scholar and graduated with high distinction. He also holds a Juris Doctor from Stetson College of Law, St. Petersburg, Florida, and obtained his Certified Financial Planner designation in 1978. Mr. James is a member of the board of Cora Health Services and has previously served on the boards of numerous public companies. In addition, Mr. James is the past chairman of The Financial Services Roundtable, the Securities Industry Association (now SIFMA), the Southern District of the SIA, the District 7 Business Conduct Committee of the National Association of Securities Dealers, and a past president of the Florida Security Dealers Association, as well as Raymond James Bank, N.A. and Heritage Family of Funds (subsidiaries of Raymond James Financial, Inc.). Locally, Mr. James is the immediate past chairman of the Florida Council of 100 and president of the board of trustees of The Salvador Dali Museum. He currently serves on the Board of Dean’s Advisors at Harvard Business School, the board of the International Tennis Hall of Fame and is the chairman of the board of the Chi Chi Rodriguez Youth Foundation. He is also a past chairman of the Florida Council of Economic Education. In addition, Mr. James has been an active participant in the United Way of Pinellas County as a member of the board of directors and as founding chairman of the organization’s Alexis de Tocqueville Society and the 1995 Pinellas County campaign. He is a past member of the board of Junior Achievement of Pinellas County and has served as Commodore of the Treasure Island Tennis & Yacht Club. Mr. James has received numerous awards and honors for his industry leadership, support of the arts, philanthropic activities and community service. His interests include tennis, golf, guitar, and art collecting, particularly Southwestern United States. EXECUTIVE COMMITTEE BIOS Not Presenting
108 EXECUTIVE COMMITTEE BIOS Not PresentingJeffrey Trocin President Raymond James & Associates Global Equities and Investment Banking Mr. Trocin joined Raymond James & Associates in 1986 and has directed the firm’s Equity Capital Markets group, which includes the firm’s investment banking, research, institutional sales, trading and syndicate operations, since 1996. Mr. Trocin also serves as a member of the firm’s Capital Markets Commitment Committee. Prior to joining Raymond James, Mr. Trocin was a member of the Corporate Finance Department of Merrill Lynch Capital Markets. Before that, he was a marketing manager for Burroughs Corporation in Ft. Lauderdale, Fla. Mr. Trocin graduated with honors with a bachelor’s degree in economics from the University of Miami. He continued his education at Harvard Business School where he earned his MBA in 1986.
109 Dennis Zank Chief Operating Officer Raymond James Financial Chief Executive Officer Raymond James & Associates Dennis Zank serves as chief operating officer of Raymond James Financial, Inc. as well as Chief Executive Officer of Raymond James & Associates (RJA). In his current role, he oversees our domestic Private Client Group businesses as well as many of the firm’s corporate administrative and support departments. Dennis was appointed president of RJA in 2002 and prior to that role served as executive vice president of operations and administration. In that role, he directed securities and customer operations, client services, information technology, office services, human resources, financial and regulatory reporting, and international operations. Dennis joined Raymond James’ Accounting Department in 1978, becoming the controller in 1982. He was appointed treasurer in 1985 and was promoted to senior vice president in 1986 and executive vice president in 1992. From 2000 to 2006, Dennis served on the board of directors of the Options Clearing Corporation. He also served a three-year term on the board of directors of the National Securities Clearing Corporation from 1994 to 1997. A 1976 graduate of the University of South Florida with a bachelor’s degree in accounting, he earned his MBA from the University of Tampa in 1982. Originally from Michigan, Dennis currently resides in St. Petersburg, Florida with his wife, Marnie. He enjoys boating, fishing, racquetball and golf. EXECUTIVE COMMITTEE BIOS Not Presenting
