Raymond James Financial (RJF) 8-K Raymond James Financial Reports Fourth Quarter and Fiscal Year 2019 Results

October 23, 2019	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 FOURTH QUARTER AND

FISCAL YEAR 2019 RESULTS

• Record quarterly net revenues of $2.02 billion, up 7% over the prior year’s fiscal fourth quarter and 5% over the preceding quarter

• Record quarterly net income of $265 million, or $1.86 per diluted share, and record adjusted quarterly net income of $284 million⁽¹⁾, or $2.00 per diluted share⁽¹⁾

• Record annual net revenues of $7.74 billion, record annual net income of $1.03 billion, and record adjusted annual net income of $1.07 billion⁽¹⁾

• Record client assets under administration of $838.3 billion and record net loans at Raymond James Bank of $20.9 billion

• Record number of Private Client Group financial advisors of 8,011, net increases of 198 over September 2018 and 107 over June 2019

• Annualized return on equity for the quarter of 16.2%, or 17.3% on an adjusted basis⁽¹⁾, and return on equity for the fiscal year of 16.2%, or 16.7% on an adjusted basis⁽¹⁾ 

ST. PETERSBURG, Fla - Raymond James Financial, Inc. (NYSE: RJF) today reported record net revenues of $2.02 billion and record net income of $265 million, or $1.86 per diluted share, for the fiscal fourth quarter ended September 30, 2019. Excluding a $19 million goodwill impairment associated with our Canadian Capital Markets business, adjusted quarterly net income was $284 million⁽¹⁾, or $2.00 per diluted share⁽¹⁾. Net revenue growth of 7% over the prior year’s fiscal fourth quarter was largely attributable to higher Private Client Group assets in fee-based accounts and higher net interest income, primarily at Raymond James Bank. The 5% increase in net revenues over the preceding quarter was mostly driven by sequential growth of asset management and related administrative fees, investment banking revenues and tax credit funds revenues.

As previously disclosed, in the fiscal fourth quarter, the firm repurchased approximately 2.13 million shares for $161.2 million, an average price of approximately $75.75 per share. Including these purchases, in fiscal 2019 the firm repurchased approximately 9.83 million shares for $752 million, an average price of approximately $76.50 per share. In total, the firm repurchased approximately 6.5% of shares outstanding at the beginning of the fiscal year and returned total capital of approximately $945 million to shareholders through the combination of dividends and share repurchases. As of October 22, 2019, $750 million remained available under the Board’s current share repurchase authorization announced on August 16, 2019.

For fiscal year 2019, record net revenues of $7.74 billion increased 6%, record net income of $1.03 billion increased 21%, adjusted net income of $1.07 billion⁽¹⁾ increased 11%, and adjusted earnings per diluted share of $7.40⁽¹⁾ increased 14% over fiscal year 2018. Return on equity for the fiscal year was 16.2%, or 16.7%⁽¹⁾ on an adjusted basis.

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

1

“Especially given the surge in volatility and the decline in the equity markets in the beginning of the fiscal year, we are very pleased with the annual records we achieved for net revenues and earnings, which included record net revenues for all four of our core segments in fiscal 2019,” said Chairman and CEO Paul Reilly. “While lower interest rates and political and economic uncertainties may present significant challenges, we entered fiscal 2020 with records for the number of Private Client Group financial advisors, client assets under administration, and net loans at Raymond James Bank. Furthermore, financial advisor recruiting activity and our investment banking pipeline remain strong.”

Segment Results

Private Client Group

• Record quarterly net revenues of $1.38 billion, up 6% over the prior year’s fiscal fourth quarter and 2% over the preceding quarter

• Quarterly pre-tax income of $143 million, up 9% over the prior year’s fiscal fourth quarter and 2% over the preceding quarter

• Record annual net revenues of $5.36 billion and record annual pre-tax income of $579 million

• Record Private Client Group assets under administration of $798.4 billion, up 6% over September 2018 and 1% over June 2019

• Record Private Client Group assets in fee-based accounts of $409.1 billion, an increase of 12% over September 2018 and 3% over June 2019

• Record number of Private Client Group financial advisors of 8,011, up 198 over September 2018 and 107 over June 2019

Record net revenues for both the quarter and fiscal year were primarily attributable to higher assets in fee-based accounts, driven by the net addition of financial advisors, equity market appreciation and the increased utilization of fee-based accounts. Private Client Group assets in fee-based accounts reached a new record of $409.1 billion, representing 51% of the segment’s total client assets under administration at the end of the fiscal year.

Clients’ domestic cash sweep balances of $37.7 billion decreased modestly during the fiscal fourth quarter, as balances stabilized following clients’ payments of quarterly fees in July.

“Financial advisor retention remained strong and recruiting momentum rebounded from a slow start to finish the fiscal year with the second best year for recruited production. Furthermore, we reached a record of 8,011 financial advisors, representing increases of 107 for the quarter and 198 for the fiscal year,” said Reilly. “Our consistent success retaining and recruiting financial advisors across all of our affiliation options is a testament to our client-focused culture and award-winning technology platform.”

Capital Markets

• Record quarterly net revenues of $302 million, up 10% over the prior year’s fiscal fourth quarter and 20% over the preceding quarter

• Quarterly pre-tax income of $33 million, which was negatively impacted by a $19 milliongoodwill impairment

• Record annual net revenues of $1.08 billion, up 12% over fiscal 2018, and annual pre-tax income of $110 million, up 21% over fiscal 2018

• Quarterly and annual investment banking revenues of $150 million and $564 million, respectively

Record quarterly and annual net revenues were primarily driven by higher investment banking results, a significant improvement in fixed income brokerage revenues, and strong results for the tax credit funds business, which more

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

2

than offset weakness in equity brokerage revenues. Pre-tax income in the fiscal fourth quarter was negatively impacted by a $19 million goodwill impairment associated with our Canadian Capital Markets business. Additionally, pre-tax income for the fiscal year was negatively impacted by a $15 million loss associated with the sale of the operations related to research, sales and trading of European equities in the first quarter.

“Strong results for M&A, fixed income, and the tax credit funds business drove record revenues for the Capital Markets segment for both the fiscal fourth quarter and fiscal 2019,” said Reilly. “While fourth quarter results were negatively impacted by the goodwill impairment associated with our Canadian Capital Markets business, we remain committed to that business and continue making long-term investments to expand and strengthen our investment banking and sales and trading capabilities in Canada.”

Asset Management

• Record quarterly net revenues of $178 million, up 3% over the prior year’s fiscal fourth quarter and 1% over the preceding quarter

• Record quarterly pre-tax income of $69 million, up 8% over the prior year’s fiscal fourth quarter and 6% over the preceding quarter

• Record annual net revenues of $691 million and record annual pre-tax income of $253 million, representing increases of 6% and 8% over fiscal 2018, respectively

• Financial assets under management of $143.1 billion, up 2% over September 2018 and flat compared to June 2019

Record results for the Asset Management segment were attributable to the growth of financial assets under management, as equity market appreciation and net inflows into fee-based accounts in the Private Client Group more than offset net outflows at Carillon Tower Advisers.

Raymond James Bank

• Record quarterly net revenues of $216 million, up 11% over the prior year’s fiscal fourth quarter and essentially flat compared to the preceding quarter

• Quarterly pre-tax income of $131 million, up 1% over the prior year’s fiscal fourth quarter and down 5% compared to the preceding quarter

• Record annual net revenues of $846 million and record annual pre-tax income of $515 million, representing increases of 16% and 5% over fiscal 2018, respectively

• Record net loans of $20.9 billion, up 7% over September 2018 and 1% over June 2019

• Net interest margin of 3.30% for the quarter, up 3 basis points over the prior year’s fiscal fourth quarter and down 7 basis points compared to the preceding quarter

Record net revenues for the fourth quarter and fiscal year were primarily driven by loan growth, which was helped by the strong growth of residential mortgage loans and securities-based loans to Private Client Group clients. While the Bank’s net interest margin for the fiscal year of 3.32% improved 10 basis points over fiscal 2018, lower short-term interest rates caused the net interest margin to decline during the fourth quarter.

A conference call to discuss the results will take place tomorrow morning, Thursday, October 24th, at 8:15 a.m. ET. For a listen-only connection, please call: 877-671-8037 (conference code: 7591205), or visit www.raymondjames.com/investor-relations/financial-information/quarterly-earnings for a live audio webcast. An audio replay of the call will be available at the same location until January 22, 2020.

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

3

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 8,000 financial advisors. Total client assets are $838 billion. Public since 1983, the firm is listed on the New York Stock Exchange under the symbol RJF. Additional information is available atwww.raymondjames.com.

Forward-Looking Statements

Certain statements made in this press release and the associated conference call may constitute “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information concerning future strategic objectives, business prospects, anticipated savings, financial results (including expenses, earnings, liquidity, cash flow and capital expenditures), industry or market conditions, demand for and pricing of our products, acquisitions and divestitures, anticipated results of litigation, regulatory developments, and 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 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.

4

RAYMOND JAMES FINANCIAL, INC. 4th Quarter Fiscal 2019 Selected Financial Highlights (Unaudited)

Summary results of operations

	Three months ended						% change from
$ in millions, except per share amounts	September 30, 2019		September 30, 2018		June 30, 2019		September 30, 2018	June 30, 2019
Net revenues	$	2,023	$	1,899	$	1,927	7%	5%
Pre-tax income	$	354	$	350	$	342	1%	4%
Net income	$	265	$	263	$	259	1%	2%
Earnings per common share: (2)
Basic	$	1.90	$	1.80	$	1.84	6%	3%
Diluted	$	1.86	$	1.76	$	1.80	6%	3%
Non-GAAP measures: (1)
Adjusted pre-tax income	$	373	$	350	NA		7%	9%
Adjusted net income	$	284	$	251	NA		13%	10%
Adjusted earnings per share - basic (2)	$	2.04	$	1.72	NA		19%	11%
Adjusted earnings per share - diluted (2)	$	2.00	$	1.68	NA		19%	11%

	Twelve months ended
$ in millions, except per share amounts	September 30, 2019		September 30, 2018		% change
Net revenues	$	7,740	$	7,274	6%
Pre-tax income	$	1,375	$	1,311	5%
Net income	$	1,034	$	857	21%
Earnings per common share: (2)
Basic	$	7.32	$	5.89	24%
Diluted	$	7.17	$	5.75	25%
Non-GAAP measures: (1)
Adjusted pre-tax income	$	1,409	$	1,315	7%
Adjusted net income	$	1,068	$	965	11%
Adjusted earnings per share - basic (2)	$	7.56	$	6.63	14%
Adjusted earnings per share - diluted (2)	$	7.40	$	6.47	14%

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

5

RAYMOND JAMES FINANCIAL, INC.             

4th Quarter Fiscal 2019

Consolidated Statements of Income (Unaudited)
	Three months ended									% change from
in millions, except per share amounts	September 30, 2019			September 30, 2018			June 30, 2019			September 30, 2018	June 30, 2019
Revenues: (3) (4)
Asset management and related administrative fees	$	924		$	832		$	879		11%	5%
Brokerage revenues:
Securities commissions	355			390			358			(9)%	(1)%
Principal transactions	95			74			93			28%	2%
Total brokerage revenues	450			464			451			(3)%	—
Account and service fees	179			178			183			1%	(2)%
Investment banking	157			152			139			3%	13%
Interest income	320			292			321			10%	—
Other	55			44			27			25%	104%
Total revenues	2,085			1,962			2,000			6%	4%
Interest expense	(62		)	(63		)	(73		)	(2)%	(15)%
Net revenues	2,023			1,899			1,927			7%	5%
Non-interest expenses: (3) (4)
Compensation, commissions and benefits	1,320			1,238			1,277			7%	3%
Non-compensation expenses:
Communications and information processing	95			90			92			6%	3%
Occupancy and equipment costs	59			53			55			11%	7%
Business development	53			47			57			13%	(7)%
Investment sub-advisory fees	24			24			24			—	—
Professional fees (5)	24			26			22			(8)%	9%
Bank loan loss provision/(benefit)	6			6			(5		)	—	NM
Other (6) (7)	88			65			63			35%	40%
Total non-compensation expenses	349			311			308			12%	13%
Total non-interest expenses	1,669			1,549			1,585			8%	5%
Pre-tax income	354			350			342			1%	4%
Provision for income taxes	89			87			83			2	7%
Net income	$	265		$	263		$	259		1%	2%
Earnings per common share – basic (2)	$	1.90		$	1.80		$	1.84		6%	3%
Earnings per common share – diluted (2)	$	1.86		$	1.76		$	1.80		6%	3%
Weighted-average common shares outstanding – basic	138.6			145.6			140.4			(5)%	(1)%
Weighted-average common and common equivalent shares outstanding – diluted	141.8			149.5			143.6			(5)%	(1)%

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

6

RAYMOND JAMES FINANCIAL, INC.             

4th Quarter Fiscal 2019

Consolidated Statements of Income (Unaudited)
	Twelve months ended
in millions, except per share amounts	September 30, 2019			September 30, 2018			% change
Revenues: (3)(4)
Asset management and related administrative fees	$	3,451		$	3,119		11%
Brokerage revenues:
Securities commissions	1,450			1,626			(11)%
Principal transactions	357			329			9%
Total brokerage revenues	1,807			1,955			(8)%
Account and service fees	738			713			4%
Investment banking	596			501			19%
Interest income	1,281			1,044			23%
Other	150			144			4%
Total revenues	8,023			7,476			7%
Interest expense	(283		)	(202		)	40%
Net revenues	7,740			7,274			6%
Non-interest expenses: (3) (4)
Compensation, commissions and benefits	5,087			4,795			6%
Non-compensation expenses:
Communications and information processing	373			352			6%
Occupancy and equipment costs	218			202			8%
Business development	194			181			7%
Investment sub-advisory fees	94			92			2%
Professional fees (5)	85			74			15%
Bank loan loss provision	22			20			10%
Acquisition and disposition-related expenses (8)	15			4			275%
Other (6) (7)	277			243			14%
Total non-compensation expenses	1,278			1,168			9%
Total non-interest expenses	6,365			5,963			7%
Pre-tax income	1,375			1,311			5%
Provision for income taxes	341			454			(25)%
Net income	$	1,034		$	857		21%
Earnings per common share – basic (2)	$	7.32		$	5.89		24%
Earnings per common share – diluted (2)	$	7.17		$	5.75		25%
Weighted-average common shares outstanding – basic	141.0			145.3			(3)%
Weighted-average common and common equivalent shares outstanding – diluted	144.0			148.8			(3)%

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

7

RAYMOND JAMES FINANCIAL, INC.	Selected Key Metrics
4th Quarter Fiscal 2019	(Unaudited)

	For the period ended
Total company ($ in millions, except per share amounts)	September 30, 2019				September 30, 2018			June 30, 2019
Total assets	$	38,830			$	37,413		$	38,677
Total equity attributable to Raymond James Financial, Inc.	$	6,581			$	6,368		$	6,502
Book value per share (9)	$	47.76			$	43.73		$	46.54
Tangible book value per share (1) (9)	$	43.53			$	39.52		$	42.18
Return on equity - quarter (10)	16.2		%		16.8		%	16.1		%
Adjusted return on equity - quarter (1) (10)	17.3		%		16.0		%	NA
Return on equity - year to date (10)	16.2		%		14.4		%	16.2		%
Adjusted return on equity - year to date (1) (10)	16.7		%		16.0		%	16.4		%
Total compensation ratio - quarter (11)	65.2		%		65.2		%	66.3		%
Total compensation ratio - year to date (11)	65.7		%		65.9		%	65.9		%
Pre-tax margin - quarter (12)	17.5		%		18.4		%	17.7		%
Adjusted pre-tax margin - quarter (1) (12)	18.4		%		NA			NA
Pre-tax margin - year to date (12)	17.8		%		18.0		%	17.9		%
Adjusted pre-tax margin - year to date (1) (12)	18.2		%		18.1		%	18.1		%
Effective tax rate - quarter	25.1		%		25.4		%	24.4		%
Effective tax rate - year to date	24.8		%		34.8		%	25.1		%
Total company capital ratios:
Tier 1 capital	24.8		%	(13)	24.3		%	24.2		%
Total capital	25.7		%	(13)	25.3		%	25.2		%
Tier 1 leverage	15.7		%	(13)	15.8		%	15.7		%

Client asset metrics ($ in billions)	As of						% change from
	September 30, 2019		September 30, 2018		June 30, 2019		September 30, 2018	June 30, 2019
Client assets under administration	$	838.3	$	790.4	$	824.2	6%	2%
Private Client Group assets under administration	$	798.4	$	755.7	$	787.4	6%	1%
Private Client Group assets in fee-based accounts	$	409.1	$	366.3	$	398.0	12%	3%
Financial assets under management	$	143.1	$	140.9	$	143.1	2%	—

Private Client Group financial advisors	As of
	September 30, 2019	September 30, 2018	June 30, 2019
Employees	3,301	3,167	3,228
Independent contractors	4,710	4,646	4,676
Total advisors	8,011	7,813	7,904

Clients’ domestic cash sweep balances ($ in millions)	As of
	September 30, 2019		September 30, 2018		June 30, 2019
Raymond James Bank Deposit Program (“RJBDP”)
RJ Bank	$	21,649	$	19,446	$	21,600
Third-party banks	14,043		15,564		14,425
Subtotal RJBDP	35,692		35,010		36,025
Money market funds (14)	—		3,240		—
Client Interest Program	2,022		2,807		2,130
Total clients’ domestic cash sweep balances	$	37,714	$	41,057	$	38,155

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

8

RAYMOND JAMES FINANCIAL, INC.	Segment Results
4th Quarter Fiscal 2019	(Unaudited)

	Three months ended									% change from
$ in millions	September 30, 2019			September 30, 2018			June 30, 2019			September 30, 2018	June 30, 2019
Net revenues: (3)
Private Client Group	$	1,381		$	1,309		$	1,351		6%	2%
Capital Markets	302			274			251			10%	20%
Asset Management	178			172			177			3%	1%
RJ Bank	216			195			215			11%	—
Other (15)	7			(12		)	(4		)	NM	NM
Intersegment eliminations	(61		)	(39		)	(63		)	NM	NM
Total net revenues	$	2,023		$	1,899		$	1,927		7%	5%
Pre-tax income/(loss):
Private Client Group	$	143		$	131		$	140		9%	2%
Capital Markets	33			48			24			(31)%	38%
Asset Management	69			64			65			8%	6%
RJ Bank	131			130			138			1%	(5)%
Other (15)	(22		)	(23		)	(25		)	4%	12%
Pre-tax income	$	354		$	350		$	342		1%	4%

	Twelve months ended
$ in millions	September 30, 2019			September 30, 2018			% change
Net revenues: (3)
Private Client Group	$	5,359		$	5,093		5%
Capital Markets	1,083			964			12%
Asset Management	691			654			6%
RJ Bank	846			727			16%
Other (15)	5			(15		)	NM
Intersegment eliminations	(244		)	(149		)	NM
Total net revenues	$	7,740		$	7,274		6%
Pre-tax income/(loss):
Private Client Group	$	579		$	576		1%
Capital Markets	110			91			21%
Asset Management	253			235			8%
RJ Bank	515			492			5%
Other (15)	(82		)	(83		)	1%
Pre-tax income	$	1,375		$	1,311		5%

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

9

RAYMOND JAMES FINANCIAL, INC.	Segment Results
4th Quarter Fiscal 2019	(Unaudited)

Private Client Group
	Three months ended									% change from
$ in millions	September 30, 2019			September 30, 2018			June 30, 2019			September 30, 2018	June 30, 2019
Revenues: (4)
Asset management and related administrative fees	$	757		$	674		$	718		12%	5%
Brokerage revenues:
Mutual and other fund products	150			168			147			(11)%	2%
Insurance and annuity products	104			106			105			(2)%	(1)%
Equities, ETFs and fixed income products	87			100			94			(13)%	(7)%
Total brokerage revenues	341			374			346			(9)%	(1)%
Account and service fees:
Mutual fund and annuity service fees	84			86			85			(2)%	(1)%
RJBDP fees: (16)
Third-party banks (3)	65			64			67			2%	(3)%
RJ Bank	46			25			44			84%	5%
Client account and other fees	30			26			32			15%	(6)%
Total account and service fees	225			201			228			12%	(1)%
Investment banking	7			10			10			(30)%	(30)%
Interest income	55			53			56			4%	(2)%
All other	7			6			3			17%	133%
Total revenues	1,392			1,318			1,361			6%	2%
Interest expense	(11		)	(9		)	(10		)	22%	10%
Net revenues	1,381			1,309			1,351			6%	2%
Non-interest expenses:
Compensation, commissions and benefits	1,065			1,005			1,042			6%	2%
Non-compensation expenses (3)	173			173			169			—	2%
Total non-interest expenses	1,238			1,178			1,211			5%	2%
Pre-tax income	$	143		$	131		$	140		9%	2%
Pre-tax margin	10.4		%	10.0		%	10.4		%

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

10

RAYMOND JAMES FINANCIAL, INC.	Segment Results
4th Quarter Fiscal 2019	(Unaudited)

Private Client Group
	Twelve months ended
$ in millions	September 30, 2019			September 30, 2018			% change
Revenues: (4)
Asset management and related administrative fees	$	2,820		$	2,517		12%
Brokerage revenues:
Mutual and other fund products	599			703			(15)%
Insurance and annuity products	412			414			—
Equities, ETFs and fixed income products	378			432			(13)%
Total brokerage revenues	1,389			1,549			(10)%
Account and service fees:
Mutual fund and annuity service fees	334			332			1%
RJBDP fees: (16)
Third-party banks (3)	280			262			7%
RJ Bank	173			92			88%
Client account and other fees	122			111			10%
Total account and service fees	909			797			14%
Investment banking	32			35			(9)%
Interest income	225			193			17%
All other	26			30			(13)%
Total revenues	5,401			5,121			5%
Interest expense	(42		)	(28		)	50%
Net revenues	5,359			5,093			5%
Non-interest expenses:
Compensation, commissions and benefits	4,123			3,886			6%
Non-compensation expenses (3)	657			631			4%
Total non-interest expenses	4,780			4,517			6%
Pre-tax income	$	579		$	576		1%
Pre-tax margin	10.8		%	11.3		%

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

11

RAYMOND JAMES FINANCIAL, INC.	Segment Results
4th Quarter Fiscal 2019	(Unaudited)

Capital Markets
	Three months ended									% change from
$ in millions	September 30, 2019			September 30, 2018			June 30, 2019			September 30, 2018	June 30, 2019
Revenues: (4)
Brokerage revenues:
Equity	$	26		$	33		$	31		(21)%	(16)%
Fixed income	82			55			73			49%	12%
Total brokerage revenues	108			88			104			23%	4%
Investment banking: (3)
Equity underwriting	28			27			27			4%	4%
Merger & acquisition and advisory	90			97			78			(7)%	15%
Fixed income investment banking	32			18			24			78%	33%
Total investment banking	150			142			129			6%	16%
Interest income	9			8			10			13%	(10)%
Tax credit fund revenues	37			39			16			(5)%	131%
All other	6			4			2			50%	200%
Total revenues	310			281			261			10%	19%
Interest expense	(8		)	(7		)	(10		)	14%	(20)%
Net revenues	302			274			251			10%	20%
Non-interest expenses:
Compensation, commissions and benefits	179			164			160			9%	12%
Non-compensation expenses (3) (6) (7)	90			62			67			45%	34%
Total non-interest expenses	269			226			227			19%	19%
Pre-tax income	$	33		$	48		$	24		(31)%	38%
Pre-tax margin	10.9		%	17.5		%	9.6		%

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

12

RAYMOND JAMES FINANCIAL, INC.	Segment Results
4th Quarter Fiscal 2019	(Unaudited)

Capital Markets
	Twelve months ended
$ in millions	September 30, 2019			September 30, 2018			% change
Revenues: (4)
Brokerage revenues:
Equity	$	131		$	156		(16)%
Fixed income	283			245			16%
Total brokerage revenues	414			401			3%
Investment banking: (3)
Equity underwriting	100			93			8%
Merger & acquisition and advisory	369			297			24%
Fixed income investment banking	95			76			25%
Total investment banking	564			466			21%
Interest income	38			32			19%
Tax credit fund revenues	86			79			9%
All other	15			14			7%
Total revenues	1,117			992			13%
Interest expense	(34		)	(28		)	21%
Net revenues	1,083			964			12%
Non-interest expenses:
Compensation, commissions and benefits	665			635			5%
Non-compensation expenses (3) (6) (7) (8)	308			238			29%
Total non-interest expenses	973			873			11%
Pre-tax income	$	110		$	91		21%
Pre-tax margin	10.2		%	9.4		%

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

13

RAYMOND JAMES FINANCIAL, INC.	Segment Results
4th Quarter Fiscal 2019	(Unaudited)

Asset Management
	Three months ended									% change from
$ in millions	September 30, 2019			September 30, 2018			June 30, 2019			September 30, 2018	June 30, 2019
Revenues: (4)
Asset management and related administrative fees
Managed programs	$	121		$	118		$	120		3%	1%
Administration and other	49			42			45			17%	9%
Total asset management and related administrative fees	170			160			165			6%	3%
Account and service fees	4			6			8			(33)%	(50)%
All other	4			6			4			(33)%	—
Net revenues	178			172			177			3%	1%
Non-interest expenses:
Compensation, commissions and benefits	44			43			47			2%	(6)%
Non-compensation expenses (6)	65			65			65			—	—
Total non-interest expenses	109			108			112			1%	(3)%
Pre-tax income	$	69		$	64		$	65		8%	6%
Pre-tax margin	38.8		%	37.2		%	36.7		%

	Twelve months ended
$ in millions	September 30, 2019			September 30, 2018			% change
Revenues: (4)
Asset management and related administrative fees
Managed programs	$	467		$	454		3%
Administration and other	178			156			14%
Total asset management and related administrative fees	645			610			6%
Account and service fees	31			28			11%
All other	15			16			(6)%
Net revenues	691			654			6%
Non-interest expenses:
Compensation, commissions and benefits	179			170			5%
Non-compensation expenses (6)	259			249			4%
Total non-interest expenses	438			419			5%
Pre-tax income	$	253		$	235		8%
Pre-tax margin	36.6		%	35.9		%

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

14

RAYMOND JAMES FINANCIAL, INC.	Segment Results
4th Quarter Fiscal 2019	(Unaudited)

RJ Bank
	Three months ended									% change from
$ in millions	September 30, 2019			September 30, 2018			June 30, 2019			September 30, 2018	June 30, 2019
Revenues:
Interest income	$	243		$	222		$	246		9%	(1)%
Interest expense	(33		)	(33		)	(38		)	—	(13)%
Net interest income	210			189			208			11%	1%
All other	6			6			7			—	(14)%
Net revenues	216			195			215			11%	—
Non-interest expenses:
Compensation and benefits	13			10			13			30%	—
Non-compensation expenses:
Loan loss provision/(benefit)	6			6			(5		)	—	NM
RJBDP fees to PCG	46			25			44			84%	5%
All other	20			24			25			(17)%	(20)%
Total non-compensation expenses	72			55			64			31%	13%
Total non-interest expenses	85			65			77			31%	10%
Pre-tax income	$	131		$	130		$	138		1%	(5)%
Pre-tax margin	60.6		%	66.7		%	64.2		%

	Twelve months ended
$ in millions	September 30, 2019			September 30, 2018			% change
Revenues:
Interest income	$	975		$	793		23%
Interest expense	(155		)	(89		)	74%
Net interest income	820			704			16%
All other	26			23			13%
Net revenues	846			727			16%
Non-interest expenses:
Compensation and benefits	49			41			20%
Non-compensation expenses:
Loan loss provision	22			20			10%
RJBDP fees to PCG	173			92			88%
All other	87			82			6%
Total non-compensation expenses	282			194			45%
Total non-interest expenses	331			235			41%
Pre-tax income	$	515		$	492		5%
Pre-tax margin	60.9		%	67.7		%

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

15

RAYMOND JAMES FINANCIAL, INC.	Segment Results
4th Quarter Fiscal 2019	(Unaudited)

Other
	Three months ended									% change from
$ in millions	September 30, 2019			September 30, 2018			June 30, 2019			September 30, 2018	June 30, 2019
Revenues:
Interest income	$	21		$	14		$	12		50%	75%
Gains/(losses) on private equity investments	6			(12		)	2			NM	200%
All other	(2		)	5			1			NM	NM
Total revenues	25			7			15			257%	67%
Interest expense	(18		)	(19		)	(19		)	(5)%	(5)%
Net revenues	7			(12		)	(4		)	NM	NM
Non-interest expenses (6)	29			11			21			164%	38%
Pre-tax loss	$	(22	)	$	(23	)	$	(25	)	4%	12%

	Twelve months ended
$ in millions	September 30, 2019			September 30, 2018			% change
Revenues:
Interest income	$	63		$	42		50%
Gains on private equity investments	14			9			56%
All other	3			9			(67)%
Total revenues	80			60			33%
Interest expense	(75		)	(75		)	—
Net revenues	5			(15		)	NM
Non-interest expenses (6)	87			68			28%
Pre-tax loss	$	(82	)	$	(83	)	1%

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

16

RAYMOND JAMES FINANCIAL, INC.	RJ Bank Selected Key Metrics
4th Quarter Fiscal 2019	(Unaudited)

Raymond James Bank ($ in millions)	As of
	September 30, 2019			September 30, 2018			June 30, 2019
Total assets	$	25,705		$	23,205		$	25,668
Total equity	$	2,248		$	2,021		$	2,198
Bank loans, net	$	20,891		$	19,518		$	20,691
Allowance for loan losses	$	218		$	203		$	215
Allowance for loan losses as a % of loans held for investment	1.04		%	1.04		%	1.03		%
Total nonperforming assets	$	46		$	28		$	56
Nonperforming assets as a % of total assets	0.18		%	0.12		%	0.22		%
Total criticized loans	$	285		$	233		$	197
Criticized loans as a % of loans held for investment	1.36		%	1.18		%	0.95		%

	Three months ended							Twelve months ended
$ in millions	September 30, 2019		September 30, 2018		June 30, 2019			September 30, 2019		September 30, 2018
Bank loan loss provision/(benefit)	$	6	$	6	$	(5	)	$	22	$	20
Net charge-offs/(recoveries)	$	2	$	—	$	(1	)	$	6	$	8

	As of
	September 30, 2019			September 30, 2018		June 30, 2019
RJ Bank capital ratios:
Tier 1 capital	13.2	%	(13)	12.7	%	12.8	%
Total capital	14.5	%	(13)	13.9	%	14.1	%
Tier 1 leverage	8.8	%	(13)	8.8	%	8.8	%

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

17

RAYMOND JAMES FINANCIAL, INC.	RJ Bank Selected Key Metrics
4th Quarter Fiscal 2019	(Unaudited)

Raymond James Bank Net Interest Analysis

	Three months ended
	September 30, 2019						September 30, 2018						June 30, 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	$	1,262	$	7	2.16	%	$	708	$	3	1.94	%	$	998	$	5	2.36	%
Available-for-sale securities	2,995		18		2.37	%	2,641		14		2.17	%	2,901		18		2.41	%
Bank loans, net of unearned income:
Loans held for investment:
Commercial and industrial loans	8,082		92		4.47	%	7,860		89		4.43	%	8,278		98		4.68	%
Commercial real estate construction loans	268		3		5.36	%	165		2		5.25	%	248		4		5.45	%
Commercial real estate loans	3,507		39		4.32	%	3,443		38		4.28	%	3,359		39		4.53	%
Tax-exempt loans (17)	1,281		9		3.40	%	1,208		8		3.44	%	1,291		9		3.35	%
Residential mortgage loans	4,364		35		3.26	%	3,700		31		3.35	%	4,127		34		3.32	%
Securities-based loans and other	3,261		36		4.35	%	2,972		33		4.37	%	3,125		36		4.64	%
Loans held for sale	155		2		4.33	%	134		2		4.49	%	118		1		4.78	%
Total loans, net	20,918		216		4.12	%	19,482		203		4.14	%	20,546		221		4.30	%
Federal Home Loan Bank stock, Federal Reserve Bank stock and other	198		2		3.38	%	144		2		4.90	%	168		2		4.42	%
Total interest-earning banking assets	25,373		243		3.81	%	22,975		222		3.85	%	24,613		246		4.00	%
Total interest-bearing banking liabilities	23,087		33		0.56	%	20,860		33		0.63	%	22,445		38		0.69	%
Excess of interest-earning banking assets over interest-bearing banking liabilities/net interest income	$	2,286	$	210			$	2,115	$	189			$	2,168	$	208
Net interest margin (net yield on interest-earning banking assets)					3.30	%					3.27	%					3.37	%

	Twelve months ended
	September 30, 2019						September 30, 2018
$ in millions	Average balance		Interest inc./exp.		Average yield/cost		Average balance		Interest inc./exp.		Average yield/cost
Interest-earning banking assets:
Cash	$	1,239	$	28	2.29	%	$	957	$	15	1.57	%
Available-for-sale securities	2,872		69		2.39	%	2,430		50		2.04	%
Bank loans, net of unearned income:
Loans held for investment:
Commercial and industrial loans	8,070		378		4.62	%	7,619		326		4.22	%
Commercial real estate construction loans	221		12		5.51	%	166		8		5.08	%
Commercial real estate loans	3,451		159		4.53	%	3,231		133		4.06	%
Tax-exempt loans (17)	1,284		35		3.36	%	1,146		30		3.42	%
Residential mortgage loans	4,091		135		3.30	%	3,448		109		3.16	%
Securities-based loans and other	3,139		145		4.57	%	2,690		111		4.09	%
Loans held for sale	151		7		4.73	%	126		5		4.01	%
Total loans, net	20,407		871		4.26	%	18,426		722		3.93	%
Federal Home Loan Bank stock, Federal Reserve Bank stock and other	172		7		4.01	%	138		6		4.33	%
Total interest-earning banking assets	24,690		975		3.95	%	21,951		793		3.62	%
Total interest-bearing banking liabilities	22,505		155		0.69	%	19,983		89		0.44	%
Excess of interest-earning banking assets over interest-bearing banking liabilities/net interest income	$	2,185	$	820			$	1,968	$	704
Net interest margin (net yield on interest-earning banking assets)					3.32	%					3.22	%

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

18

RAYMOND JAMES FINANCIAL, INC.             

4th Quarter Fiscal 2019

Reconciliation of GAAP measures to non-GAAP measures (Unaudited)

We utilize certain non-GAAP calculations as additional measures to aid in, and enhance, the understanding of our financial results and related measures. We believe that the non-GAAP measures provide useful information by excluding certain material items that may not be indicative of our core operating results. We believe that these non-GAAP measures will allow for better evaluation of the operating performance of the business and facilitate a meaningful comparison of our results in the current period to those in prior and future periods. In the case of tangible book value per share, we believe that this measure is meaningful as it is a measure we and investors use to assess capital strength. In the table below, the tax effect of non-GAAP adjustments reflects the statutory rate associated with each non-GAAP item. The non-GAAP financial information should be considered in addition to, not as a substitute for, measures of financial performance prepared in accordance with GAAP. In addition, our non-GAAP measures may not be comparable to similarly titled non-GAAP measures of other companies. The following table provides a reconciliation of GAAP measures to non-GAAP measures for the periods which include non-GAAP adjustments.

	Three months ended						Twelve months ended
$ in millions, except per share amounts	September 30, 2019			September 30, 2018			September 30, 2019			September 30, 2018
Net income:	$	265		$	263		$	1,034		$	857
Non-GAAP adjustments:
Acquisition and disposition-related expenses (8)	—			—			15			4
Other expenses: goodwill impairment (7)	19			—			19			—
Tax effect of non-GAAP adjustments	—			—			—			(1		)
Impact of the Tax Act (18)	—			(12		)	—			105
Total non-GAAP adjustments, net of tax	19			(12		)	34			108
Adjusted net income	$	284		$	251		$	1,068		$	965
Pre-tax income:	$	354		$	350		$	1,375		$	1,311
Pre-tax non-GAAP adjustments (as detailed above)	19			—			34			4
Adjusted pre-tax income	$	373		$	350		$	1,409		$	1,315
Pre-tax margin (12)	17.5		%	18.4		%	17.8		%	18.0		%
Adjusted pre-tax margin (12)	18.4		%	NA			18.2		%	18.1		%
Earnings per common share: (2)
Basic	$	1.90		$	1.80		$	7.32		$	5.89
Diluted	$	1.86		$	1.76		$	7.17		$	5.75
Adjusted basic	$	2.04		$	1.72		$	7.56		$	6.63
Adjusted diluted	$	2.00		$	1.68		$	7.40		$	6.47
Return on equity:
Average equity (19)	$	6,542		$	6,263		$	6,392		$	5,949
Return on equity (10)	16.2		%	16.8		%	16.2		%	14.4		%
Adjusted average equity (19)	$	6,551		$	6,257		$	6,408		$	6,043
Adjusted return on equity (10)	17.3		%	16.0		%	16.7		%	16.0		%

	As of
	September 30, 2019			September 30, 2018			June 30, 2019
Book value per share:
Total equity attributable to Raymond James Financial, Inc.	$	6,581		$	6,368		$	6,502
Non-GAAP adjustments:
Goodwill and identifiable intangible assets, net	611			639			635
Deferred tax assets	(28		)	(27		)	(26		)
Tangible total equity	$	5,998		$	5,756		$	5,893
Common shares outstanding	137.8			145.6			139.7
Book value per share (9)	$	47.76		$	43.73		$	46.54
Tangible book value per share (9)	$	43.53		$	39.52		$	42.18

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

19

RAYMOND JAMES FINANCIAL, INC.             

4th Quarter Fiscal 2019

Footnotes

1. These are non-GAAP measures. See the schedule on the previous page of this release for a reconciliation of our non-GAAP measures to the most directly comparable GAAP measures and for more information on these measures. There were no non-GAAP adjustments for the three months ended June 30, 2019; therefore, percent changes are calculated based on non-GAAP results for the three months ended September 30, 2019 as compared to GAAP results for the three months ended June 30, 2019.

2. 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.

3. Effective October 1, 2018, we adopted ASU 2014-09 “Revenues from Contracts With Customers”.  As a result of adoption, we have changed the presentation of certain costs related to investment banking transactions and certain administrative costs associated with RJBDP from a net presentation within revenues to a gross presentation.  These changes were made on a prospective basis beginning with our first fiscal quarter of 2019 and did not have an impact on our pre-tax income.  The related expenses, which were previously netted against Investment banking revenues and Account and service fees, are now presented in Professional fees and Other expenses in our Consolidated Statements of Income.

4. We have reclassified certain revenues among income statement line items and renamed certain line items. See the Report on Form 8-K dated November 28, 2018 (available at www.sec.gov) for additional information. In addition, we have reclassified certain expenses between income statement line items and present Professional fees separately from Other. Prior period results have been conformed to the current presentation.

5. Professional fees include audit fees, non-technology-related consulting fees and external legal fees (excluding legal or regulatory provisions) which were previously included within Other expense in our Consolidated Statements of Income. Professional fees also include, prospectively upon adoption of new accounting guidance on October 1, 2018, deal-related expenses which were previously netted against Investment banking revenues.

6. 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.

7. The quarter and year ended September 30, 2019 includes a $19 million impairment charge associated with our Canadian Capital Markets business.

8. The current fiscal year includes a loss in our Capital Markets segment on the sale of our operations related to research, sales and trading of European equities and the prior fiscal year includes expenses associated with our November 2017 acquisition of Scout Investments and its Reams Asset Management division.

9. 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, computed by dividing tangible total equity by the number of common shares outstanding at the end of each respective period. Tangible total equity is defined as total equity attributable to Raymond James Financial, Inc. less goodwill and intangible assets, net of related deferred taxes.

10. Computed by dividing net income (or annualized net income where applicable) by average equity for each respective period or, in the case of adjusted return on equity, computed by dividing adjusted net income (or annualized adjusted net income where applicable) by adjusted average equity for each respective period.

11. Computed by dividing compensation, commissions and benefits expense by net revenues for each respective period.

12. 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.

13. Estimated.

14. 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.

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. 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 RJ Bank and various third-party banks. Fees earned by PCG on RJ Bank deposits are eliminated in consolidation.

17. The average yield is presented on a tax-equivalent basis for each respective period.

18. The impact of the Tax Act includes the remeasurement of U.S. deferred tax assets at the lower enacted corporate tax rate and, to a lesser extent, a one-time transition tax on deemed repatriated earnings of foreign subsidiaries.

19. For quarterly periods, 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. For the annual periods, computed by adding the total equity attributable to Raymond James Financial, Inc. as of each quarter-end date during the indicated fiscal year to the beginning of the year total and dividing by five. Adjusted average equity is computed by adjusting for the impact on average equity of the non-GAAP adjustments, as applicable for each respective period.

20