COVER PAGE
COVER PAGE - shares | 6 Months Ended | |
Mar. 31, 2021 | May 04, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 1-9109 | |
Entity Registrant Name | RAYMOND JAMES FINANCIAL, INC. | |
Entity Incorporation, State or Country Code | FL | |
Entity Tax Identification Number | 59-1517485 | |
Entity Address, Address Line One | 880 Carillon Parkway | |
Entity Address, City or Town | St. Petersburg | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 33716 | |
City Area Code | 727 | |
Local Phone Number | 567-1000 | |
Title of 12(b) Security | Common Stock, $.01 par value | |
Trading Symbol | RJF | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 137,418,106 | |
Entity Central Index Key | 0000720005 | |
Current Fiscal Year End Date | --09-30 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited) - USD ($) $ in Millions | Mar. 31, 2021 | Sep. 30, 2020 |
Assets: | ||
Cash and cash equivalents | $ 5,851 | $ 5,390 |
Assets segregated pursuant to regulations ($5,250 and $0, at fair value) | 9,674 | 4,244 |
Collateralized agreements | 451 | 422 |
Financial instruments, at fair value: | ||
Trading assets ($363 and $265 pledged as collateral) | 567 | 513 |
Available-for-sale securities ($21 and $23 pledged as collateral) | 8,158 | 7,650 |
Derivative assets | 304 | 438 |
Other investments ($40 and $37 pledged as collateral) | 370 | 334 |
Brokerage client receivables, net | 2,513 | 2,435 |
Other receivables, net | 1,007 | 927 |
Bank loans, net | 22,879 | 21,195 |
Loans to financial advisors, net | 988 | 1,012 |
Property and equipment, net | 543 | 535 |
Deferred income taxes, net | 277 | 262 |
Goodwill and identifiable intangible assets, net | 868 | 600 |
Other assets | 1,616 | 1,525 |
Total assets | 56,066 | 47,482 |
Liabilities and shareholders’ equity: | ||
Bank deposits | 29,254 | 26,801 |
Collateralized financings | 278 | 250 |
Financial instrument liabilities, at fair value: | ||
Trading liabilities | 212 | 240 |
Derivative liabilities | 324 | 393 |
Brokerage client payables | 12,475 | 6,792 |
Accrued compensation, commissions and benefits | 1,372 | 1,384 |
Other payables | 1,608 | 1,513 |
Other borrowings | 861 | 888 |
Senior notes payable | 2,045 | 2,045 |
Total liabilities | 48,429 | 40,306 |
Commitments and contingencies (see Note 16) | ||
Shareholders’ equity | ||
Preferred stock; $.10 par value; 10,000,000 shares authorized; -0- shares issued and outstanding | 0 | 0 |
Common stock; $.01 par value; 350,000,000 shares authorized; 159,231,968 and 159,007,158 shares issued as of March 31, 2021 and September 30, 2020, respectively, and 137,155,669 and 136,556,559 shares outstanding as of March 31, 2021 and September 30, 2020, respectively | 2 | 2 |
Additional paid-in capital | 2,028 | 2,007 |
Retained earnings | 7,004 | 6,484 |
Treasury stock, at cost; 22,076,299 and 22,450,599 common shares as of March 31, 2021 and September 30, 2020, respectively | (1,404) | (1,390) |
Accumulated other comprehensive income/(loss) | (38) | 11 |
Total equity attributable to Raymond James Financial, Inc. | 7,592 | 7,114 |
Noncontrolling interests | 45 | 62 |
Total shareholders’ equity | 7,637 | 7,176 |
Total liabilities and shareholders’ equity | $ 56,066 | $ 47,482 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited) (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2021 | Sep. 30, 2020 |
Statement of Financial Position [Abstract] | ||
Assets segregated pursuant to regulations, fair value | $ 5,250 | $ 0 |
Financial instruments, owned and pledged as collateral, at fair value | 363 | 265 |
Available-for-sale securities, pledged as collateral | 21 | 23 |
Other investments, owned and pledged as collateral, at fair value | $ 40 | $ 37 |
Equity [Abstract] | ||
Preferred stock, par value per share (in usd per share) | $ 0.10 | $ 0.10 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value per share (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 350,000,000 | 350,000,000 |
Common stock, shares issued (in shares) | 159,231,968 | 159,007,158 |
Common stock, shares outstanding (in shares) | 137,155,669 | 136,556,559 |
Treasury stock (in shares) | 22,076,299 | 22,450,599 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Revenues: | ||||
Principal transactions | $ 148 | $ 105 | $ 295 | $ 202 |
Noninterest Income | 2,209 | 1,826 | 4,266 | 3,589 |
Interest income | 200 | 285 | 403 | 582 |
Total revenues | 2,409 | 2,111 | 4,669 | 4,171 |
Interest expense | (37) | (43) | (75) | (94) |
Net revenues | 2,372 | 2,068 | 4,594 | 4,077 |
Non-interest expenses: | ||||
Compensation, commissions and benefits | 1,648 | 1,422 | 3,148 | 2,773 |
Non-compensation expenses: | ||||
Communications and information processing | 107 | 99 | 206 | 193 |
Occupancy and equipment | 57 | 56 | 114 | 113 |
Business development | 21 | 41 | 44 | 85 |
Investment sub-advisory fees | 31 | 26 | 59 | 52 |
Professional fees | 24 | 23 | 54 | 44 |
Bank loan provision/(benefit) for credit losses | (32) | 109 | (18) | 107 |
Acquisition-related expenses | 0 | 0 | 2 | 0 |
Other | 69 | 53 | 139 | 112 |
Total non-compensation expenses | 277 | 407 | 600 | 706 |
Total non-interest expenses | 1,925 | 1,829 | 3,748 | 3,479 |
Pre-tax income | 447 | 239 | 846 | 598 |
Provision for income taxes | 92 | 70 | 179 | 161 |
Net income | $ 355 | $ 169 | $ 667 | $ 437 |
Earnings per common share – basic (in dollars per share) | $ 2.58 | $ 1.22 | $ 4.85 | $ 3.15 |
Earnings per common share – diluted (in dollars per share) | $ 2.51 | $ 1.20 | $ 4.74 | $ 3.09 |
Weighted-average common shares outstanding – basic (in shares) | 137.8 | 138.4 | 137.3 | 138.4 |
Weighted-average common and common equivalent shares outstanding – diluted (in shares) | 141.2 | 141.1 | 140.4 | 141.3 |
Other comprehensive (loss) income, net of tax: | ||||
Available-for-sale securities | $ (76) | $ 63 | $ (93) | $ 62 |
Currency translations, net of the impact of net investment hedges | 2 | (26) | 20 | (17) |
Cash flow hedges | 19 | (43) | 24 | (33) |
Total other comprehensive income/(loss), net of tax | (55) | (6) | (49) | 12 |
Total comprehensive income | 300 | 163 | 618 | 449 |
Asset management and related administrative fees | ||||
Revenues: | ||||
Revenue from contract with customer | 1,173 | 1,006 | 2,240 | 1,961 |
Total brokerage revenues | ||||
Revenues: | ||||
Noninterest Income | 591 | 515 | 1,119 | 975 |
Securities commissions | ||||
Revenues: | ||||
Revenue from contract with customer | 443 | 410 | 824 | 773 |
Account and service fees | ||||
Revenues: | ||||
Revenue from contract with customer | 159 | 172 | 304 | 350 |
Investment banking | ||||
Revenues: | ||||
Revenue from contract with customer | 242 | 148 | 503 | 289 |
Other | ||||
Revenues: | ||||
Noninterest Income | $ 44 | $ (15) | $ 100 | $ 14 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Millions | Total | Common stock, par value $.01 per share | Additional paid-in capital | Retained earnings | Retained earningsCumulative Effect, Period of Adoption, Adjustment | Treasury stock | Accumulated other comprehensive income/ (loss) | Total equity attributable to Raymond James Financial, Inc. | Noncontrolling interests |
Balance beginning of period at Sep. 30, 2019 | $ 2 | $ 1,938 | $ 5,874 | $ 0 | $ (1,210) | $ (23) | $ 62 | ||
Changes in Shareholders' Equity: | |||||||||
Share issuances | 0 | ||||||||
Employee stock purchases | 17 | ||||||||
Exercise of stock options and vesting of restricted stock units, net of forfeitures | (71) | 81 | |||||||
Restricted stock, stock option and restricted stock unit expense | 69 | ||||||||
Net income attributable to Raymond James Financial, Inc. | $ 437 | 437 | |||||||
Cash dividends declared (see Note 22) | (106) | ||||||||
Purchases/surrenders | (222) | ||||||||
Other comprehensive income, net of tax | 12 | 12 | |||||||
Net income/(loss) attributable to noncontrolling interests | (24) | ||||||||
Other | (2) | ||||||||
Balance end of period at Mar. 31, 2020 | $ 6,834 | 2 | 1,953 | 6,205 | (1,351) | (11) | $ 6,798 | 36 | |
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | ||||||||
Balance beginning of period at Sep. 30, 2019 | 2 | 1,938 | 5,874 | 0 | (1,210) | (23) | 62 | ||
Balance end of period at Sep. 30, 2020 | $ 7,176 | 2 | 2,007 | 6,484 | (35) | (1,390) | 11 | 62 | |
Balance beginning of period at Dec. 31, 2019 | 2 | 1,922 | 6,086 | 0 | (1,163) | (5) | 61 | ||
Changes in Shareholders' Equity: | |||||||||
Share issuances | 0 | ||||||||
Employee stock purchases | 11 | ||||||||
Exercise of stock options and vesting of restricted stock units, net of forfeitures | (8) | 15 | |||||||
Restricted stock, stock option and restricted stock unit expense | 28 | ||||||||
Net income attributable to Raymond James Financial, Inc. | 169 | 169 | |||||||
Cash dividends declared (see Note 22) | (50) | ||||||||
Purchases/surrenders | (203) | ||||||||
Other comprehensive income, net of tax | (6) | (6) | |||||||
Net income/(loss) attributable to noncontrolling interests | (23) | ||||||||
Other | (2) | ||||||||
Balance end of period at Mar. 31, 2020 | 6,834 | 2 | 1,953 | 6,205 | (1,351) | (11) | 6,798 | 36 | |
Balance beginning of period at Sep. 30, 2020 | 7,176 | 2 | 2,007 | 6,484 | (35) | (1,390) | 11 | 62 | |
Changes in Shareholders' Equity: | |||||||||
Share issuances | 0 | ||||||||
Employee stock purchases | 15 | ||||||||
Exercise of stock options and vesting of restricted stock units, net of forfeitures | (66) | 65 | |||||||
Restricted stock, stock option and restricted stock unit expense | 72 | ||||||||
Net income attributable to Raymond James Financial, Inc. | 667 | 667 | |||||||
Cash dividends declared (see Note 22) | (112) | ||||||||
Purchases/surrenders | (79) | ||||||||
Other comprehensive income, net of tax | (49) | (49) | |||||||
Net income/(loss) attributable to noncontrolling interests | 12 | ||||||||
Other | (29) | ||||||||
Balance end of period at Mar. 31, 2021 | 7,637 | 2 | 2,028 | 7,004 | (1,404) | (38) | 7,592 | 45 | |
Balance beginning of period at Dec. 31, 2020 | 2 | 1,996 | 6,702 | $ 0 | (1,354) | 17 | 75 | ||
Changes in Shareholders' Equity: | |||||||||
Share issuances | 0 | ||||||||
Employee stock purchases | 9 | ||||||||
Exercise of stock options and vesting of restricted stock units, net of forfeitures | (7) | 11 | |||||||
Restricted stock, stock option and restricted stock unit expense | 30 | ||||||||
Net income attributable to Raymond James Financial, Inc. | 355 | 355 | |||||||
Cash dividends declared (see Note 22) | (53) | ||||||||
Purchases/surrenders | (61) | ||||||||
Other comprehensive income, net of tax | (55) | (55) | |||||||
Net income/(loss) attributable to noncontrolling interests | (1) | ||||||||
Other | (29) | ||||||||
Balance end of period at Mar. 31, 2021 | $ 7,637 | $ 2 | $ 2,028 | $ 7,004 | $ (1,404) | $ (38) | $ 7,592 | $ 45 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDER'S EQUITY (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2021 | Sep. 30, 2020 |
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||
Common stock, par value per share (in usd per share) | $ 0.01 | $ 0.01 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 6 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 667,000,000 | $ 437,000,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 64,000,000 | 58,000,000 |
Deferred income taxes | 27,000,000 | (14,000,000) |
Premium and discount amortization on available-for-sale securities and loss on other investments | 14,000,000 | 43,000,000 |
Provisions/(benefits) for credit losses and legal and regulatory proceedings | (14,000,000) | 124,000,000 |
Share-based compensation expense | 74,000,000 | 74,000,000 |
Unrealized (gain)/loss on company-owned life insurance policies, net of expenses | (117,000,000) | 76,000,000 |
Other | 31,000,000 | (4,000,000) |
Net change in: | ||
Assets segregated pursuant to regulations excluding cash and cash equivalents | (5,250,000,000) | 0 |
Collateralized agreements, net of collateralized financings | 1,000,000 | (24,000,000) |
Loans provided to financial advisors, net of repayments | (11,000,000) | (11,000,000) |
Brokerage client receivables and other accounts receivable, net | (123,000,000) | (203,000,000) |
Trading instruments, net | (90,000,000) | 0 |
Derivative instruments, net | 91,000,000 | (25,000,000) |
Other assets | (23,000,000) | (176,000,000) |
Brokerage client payables and other accounts payable | 5,471,000,000 | 2,937,000,000 |
Accrued compensation, commissions and benefits | (29,000,000) | (340,000,000) |
Purchases and originations of loans held for sale, net of proceeds from sales of securitizations and loans held for sale | (67,000,000) | (9,000,000) |
Net cash provided by operating activities | 716,000,000 | 2,943,000,000 |
Cash flows from investing activities: | ||
Additions to property and equipment | (62,000,000) | (71,000,000) |
Increase in bank loans, net | (1,522,000,000) | (1,066,000,000) |
Proceeds from sales of loans held for investment | 90,000,000 | 25,000,000 |
Purchases of available-for-sale securities | (2,273,000,000) | (1,403,000,000) |
Available-for-sale securities maturations, repayments and redemptions | 1,067,000,000 | 435,000,000 |
Proceeds from sales of available-for-sale securities | 519,000,000 | 0 |
Business acquisitions, net of cash acquired | (245,000,000) | 0 |
Other investing activities, net | (11,000,000) | (10,000,000) |
Net cash used in investing activities | (2,437,000,000) | (2,090,000,000) |
Cash flows from financing activities: | ||
Proceeds from senior notes issuances, net of debt issuance costs paid | 0 | 495,000,000 |
Exercise of stock options and employee stock purchases | 32,000,000 | 43,000,000 |
Increase in bank deposits | 2,453,000,000 | 7,742,000,000 |
Purchases of treasury stock | (79,000,000) | (222,000,000) |
Dividends on common stock | (109,000,000) | (103,000,000) |
Acquisitions of and distributions to noncontrolling interests, net | 0 | (1,000,000) |
Net cash provided by financing activities | 2,269,000,000 | 7,951,000,000 |
Currency adjustment: | ||
Effect of exchange rate changes on cash | 93,000,000 | (82,000,000) |
Net increase in cash and cash equivalents, including those segregated pursuant to regulations | 641,000,000 | 8,722,000,000 |
Cash and cash equivalents, including those segregated pursuant to regulations at beginning of year | 9,634,000,000 | 5,971,000,000 |
Cash and cash equivalents, including those segregated pursuant to regulations at end of period | 10,275,000,000 | 14,693,000,000 |
Cash and cash equivalents | 5,851,000,000 | 10,648,000,000 |
Cash and cash equivalents segregated pursuant to regulations | 4,424,000,000 | 4,045,000,000 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | 76,000,000 | 92,000,000 |
Cash paid for income taxes, net | 248,000,000 | 176,000,000 |
Cash outflows for lease liabilities | 56,000,000 | 47,000,000 |
Non-cash right-of-use (“ROU”) assets recorded for new and modified leases | 81,000,000 | 39,000,000 |
FHLB advances | ||
Cash flows from financing activities: | ||
Proceeds from Federal Home Loan Bank advances | 0 | 850,000,000 |
Repayments of Federal Home Loan Bank advances and other borrowed funds | $ (28,000,000) | $ (853,000,000) |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 6 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND BASIS OF PRESENTATION | ORGANIZATION AND BASIS OF PRESENTATION Organization Raymond James Financial, Inc. (“RJF,” the “firm” or the “Company”) is a financial holding company which, together with its subsidiaries, is engaged in various financial services activities, including providing investment management services to retail and institutional clients, the underwriting, distribution, trading and brokerage of equity and debt securities, and the sale of mutual funds and other investment products. The firm also provides corporate and retail banking services, and trust services. For further information about our business segments, see Note 23 of this Form 10-Q. As used herein, the terms “our,” “we,” or “us” refer to RJF and/or one or more of its subsidiaries. Basis of presentation The accompanying unaudited condensed consolidated financial statements include the accounts of RJF and its consolidated subsidiaries that are generally controlled through a majority voting interest. We consolidate all of our 100% owned subsidiaries. In addition, we consolidate any variable interest entity (“VIE”) in which we are the primary beneficiary. Additional information on these VIEs is provided in Note 2 of our Annual Report on Form 10-K (“2020 Form 10-K”) for the year ended September 30, 2020, as filed with the United States (“U.S.”) Securities and Exchange Commission (“SEC”) and in Note 10 of this Form 10-Q. When we do not have a controlling interest in an entity, but we exert significant influence over the entity, we apply the equity method of accounting. All material intercompany balances and transactions have been eliminated in consolidation. Accounting estimates and assumptions Certain financial information that is normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) but is not required for interim reporting purposes has been condensed or omitted. These unaudited condensed consolidated financial statements reflect, in the opinion of management, all adjustments necessary for a fair presentation of our consolidated financial position and results of operations for the periods presented. The nature of our business is such that the results of any interim period are not necessarily indicative of results for a full year. These unaudited condensed consolidated financial statements should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations and the Consolidated Financial Statements and Notes thereto included in our 2020 Form 10-K. To prepare condensed consolidated financial statements in accordance with GAAP, we must make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenues and expenses for the reporting period. Actual results could differ from those estimates and could have a material impact on the condensed consolidated financial statements. Reclassifications Certain prior-period amounts have been reclassified to conform to the current period’s presentation. |
UPDATE OF SIGNIFICANT ACCOUNTIN
UPDATE OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
UPDATE OF SIGNIFICANT ACCOUNTING POLICIES | UPDATE OF SIGNIFICANT ACCOUNTING POLICIESA summary of our significant accounting policies is included in Note 2 of our 2020 Form 10-K. During the six months ended March 31, 2021, there were no significant changes to our significant accounting policies other than the accounting policies adopted or modified as part of our implementation of new or amended accounting guidance, as noted in the following sections. Accounting guidance adopted in fiscal 2021 Credit losses In June 2016, the Financial Accounting Standards Board (“FASB”) issued new guidance related to the measurement of credit losses on financial instruments (ASU 2016-13), which replaces the incurred credit loss and other models with the Current Expected Credit Losses (“CECL”) model. The guidance involves several aspects of the accounting for credit losses related to certain financial instruments, including assets measured at amortized cost, available-for-sale debt securities and certain off-balance sheet commitments. The new guidance, and subsequent updates, broadens the information that an entity must consider in developing its estimated credit losses expected to occur over the remaining life of in-scope financial assets. The measurement of expected credit losses includes historical experience, current conditions and reasonable and supportable economic forecasts. This new guidance was effective for our fiscal year beginning on October 1, 2020 and was adopted under a modified retrospective approach. The impact of adoption of this new standard resulted in an increase in our allowance for credit losses of $42 million (including $25 million related to loans to financial advisors, $9 million related to funded bank loans and $8 million related to unfunded lending commitments) and a corresponding reduction in the beginning balance of retained earnings of approximately $35 million, net of tax. Prior-period amounts were calculated under the incurred loss model and have not been restated. See Notes 8 and 9 for further information related to bank loans and loans to financial advisors and the related allowances for credit losses. The following sections highlight changes to our accounting policies as a result of this adoption. Available-for-sale securities Available-for-sale securities are generally held by Raym ond James Bank, N.A. (“RJ Bank, N.A.”) and are classified at the date of purchase. They are comprised primarily of agency mortgage-backed securities (“MBS”) and agency collateralized mortgage obligations (“CMOs”), which are guaranteed by the U.S. government or its agencies. Available-for-sale securities owned by RJ Bank, N.A. are used as part of its interest rate risk and liquidity management strategies and may be sold in response to changes in interest rates, changes in prepayment risks, or other factors. As a result of the adoption of the new CECL guidance, credit losses on available-for-sale securities are limited to the difference between the security’s amortized cost basis and its fair value and should be recognized through an allowance for credit losses rather than as a direct reduction in amortized cost basis. Given that our available-for-sale securities portfolio is comprised of government agency securities for which payments of both principal and interest are guaranteed, and based on the lack of historical credit losses, we expect zero credit losses on this portfolio and the related accrued interest receivable. On a quarterly basis, we reassess our expectation of zero credit losses to consider changes in the available-for-sale securities portfolio. Other receivables, net Other receivables primarily include receivables from brokers, dealers and clearing organizations, accrued interest receivables and accrued fees from product sponsors. Receivables from brokers, dealers and clearing organizations primarily consist of deposits placed with clearing organizations, which includes initial margin and receivables related to sales of securities which have traded, but not yet settled including amounts receivable for securities failed to deliver. We present “Other receivables, net” on our Condensed Consolidated Statements of Financial Condition, net of any allowance for credit losses. However, these receivables generally have minimal credit risk due to the low probability of clearing organization default and the short-term nature of receivables related to securities settlements and therefore, the allowance for credit losses on such receivables is not significant. Any allowance for credit losses for other receivables is estimated using assumptions based on historical experience, current facts and other factors. We update these estimates through periodic evaluations against actual trends experienced. As permitted under the CECL guidance, we include accrued interest receivables related to our financial assets in “Other receivables, net” on the Condensed Consolidated Statements of Financial Condition instead of with the related financial instrument. We reverse any uncollectible accrued interest into interest income generally when the related financial asset is moved to nonaccrual status. As we write off uncollectible amounts in a timely manner, we do not recognize an allowance for credit losses against accrued interest receivable. Loans to financial advisors, net We offer loans to financial advisors for recruiting and retention purposes. The decision to extend credit to a financial advisor or other key revenue producer is generally based on their ability to generate future revenues. Loans offered are generally repaid over a five We present the outstanding balance of loans to financial advisors on our Condensed Consolidated Statements of Financial Condition, net of the allowance for credit losses. Refer to the allowance for credit losses section that follows for further information related to our allowance for credit losses on our loans to financial advisors. See Note 9 for additional information on our loans to financial advisors. Loans to financial advisors are considered past due once they are 30 days or more delinquent as to the payment of contractual interest or principal. Loans are placed on nonaccrual status when we determine that full payment of contractual principal and interest is in doubt, or the loan is past due 180 days or more as to contractual interest or principal. When a loan is placed on nonaccrual status, the accrued and unpaid interest receivable is written-off against interest income. Interest is recognized on a cash basis until the loan qualifies for return to accrual status. Loans are returned to an accrual status when the loans have been brought contractually current with the original terms and have been maintained on a current basis for a reasonable period, generally six months. When we determine that it is likely a loan will not be collected in full, the loan is evaluated for a potential write down of the carrying value. After consideration of the borrower’s ability to restructure the loan, sources of repayment, and other factors affecting the borrower’s ability to repay the debt, the portion of the loan deemed a confirmed loss, if any, is charged-off. A charge-off is taken against the allowance for credit losses for the difference between the amortized cost and the amount we estimate will ultimately be collected. Additional charge-offs are taken if there is an adverse change in the expected cash flows. Allowance for credit losses We evaluate our held for investment bank loans, unfunded lending commitments, loans to financial advisors and certain other financial assets to estimate an allowance for credit losses over the remaining life of the financial instrument. The remaining life of our financial assets is determined by considering contractual terms and expected prepayments, among other factors. We employ multiple methodologies in estimating an allowance for credit losses and our approaches differ by type of financial asset and the risk characteristics within each financial asset type. Our estimates are based on ongoing evaluations of the portfolio, the related credit risk characteristics, and the overall economic and environmental conditions affecting the financial assets. For certain of our financial assets with collateral maintenance provisions (e.g., collateralized agreements, margin loans and securities-based loans), we apply the practical expedient allowed under the CECL model in estimating an allowance for credit losses. We reasonably expect that borrowers (or counterparties, as applicable) will replenish the collateral as required. As a result, we estimate zero credit losses to the extent that the fair value equals or exceeds the related carrying value of the financial asset. When the fair value of the collateral securing the financial asset is less than the carrying value, qualitative factors such as historical experience (adjusted for current risk characteristics and economic conditions) as well as reasonable and supportable forecasts are considered in estimating the allowance for credit losses on the unsecured portion of the financial asset. Credit losses are charged-off against the allowance when we believe the uncollectibility of the financial asset is confirmed. Subsequent recoveries, if any, are credited to the allowance once received. A credit loss expense, or benefit, is recorded in earnings in an amount necessary to adjust the allowance for credit losses to our estimate as of the end of each reporting period. Our provision or benefit for credit losses for outstanding bank loans is included in “Bank loan provision/(benefit) for credit losses” on our Condensed Consolidated Statements of Income and Comprehensive Income and our provision or benefit for credit losses for all other financing receivables and unfunded lending commitments is included in “Other” expense. Loans We generally estimate the allowance for credit losses on our loan portfolios using credit risk models which incorporate relevant available information from internal and external sources relating to past events, current conditions, and reasonable and supportable economic forecasts. After testing the reasonableness of a variety of economic forecast scenarios, we select a single forecast scenario for use in our models. Our forecasts incorporate assumptions related to macroeconomic indicators including, but not limited to, U.S. gross domestic product, equity market indices, unemployment rates, and commercial real estate and residential home price indices. At the conclusion of our reasonable and supportable forecast period, which currently ranges from two one two three The allowance for credit losses on loans is generally evaluated and measured on a collective basis, typically by loan portfolio segment, due to similar risk characteristics. When a loan does not share similar risk characteristics with other loans, the loan is evaluated for credit losses on an individual basis. Various risk characteristics are considered when determining whether the loan should be collectively evaluated including, but not limited to, financial asset type, internal risk ratings, collateral type, industry of the borrower, and historical or expected credit loss patterns. The allowance for credit losses on collectively evaluated loans is comprised of two components: (a) a quantitative allowance; and (b) a qualitative allowance, which is based on an analysis of model limitations and other factors not considered by the quantitative models. There are several factors considered in estimating the quantitative allowance for credit losses on collectively evaluated loans which generally include, but are not limited to, the internal risk rating, historical loss experience (including adjustments due to current risk characteristics and economic conditions), prepayments, borrower-controlled extensions, and expected recoveries. We use third-party data for historical information on collectively evaluated corporate loans (C&I, CRE and REIT loans) and residential mortgage loans. The qualitative portion of our allowance for credit losses includes certain factors that are not incorporated into the quantitative estimate and would generally require adjustments to the allowance for credit losses. These qualitative factors are intended to address developing trends related to each portfolio segment and would generally include, but are not limited to: changes in lending policies and procedures, including changes in underwriting standards and collection; our loan review process; volume and severity of delinquent loans; changes in the nature, volume and terms of loans; credit concentrations; changes in the value of underlying collateral; changes in legal and regulatory environments; and local, regional, national and international economic conditions. Held for investment bank loans The allowance for credit losses for the C&I, CRE (primarily loans that are secured by income-producing properties and commercial real estate construction loans), REIT (loans made to businesses that own or finance income-producing real estate), tax-exempt and residential mortgage portfolio segments is estimated using credit risk models that project a probability of default (“PD”), which is then multiplied by the loss given default (“LGD”) and the estimated exposure at default (“EAD”) at the loan-level for every period remaining in the loan’s expected life, including the maturity period. Historical data, combined with macroeconomic variables, are used in estimating the PD, LGD and EAD. Our credit risk models consider several factors when estimating the expected credit losses which may include, but are not limited to, financial performance and position, estimated prepayments, geographic location, industry or sector type, debt type, loan size, capital structure, initial risk levels and the economic outlook. Additional factors considered by the residential mortgage model include Fair Isaac Corporation (“FICO”) scores and loan-to-value (“LTV”) ratios. We generally use one of two methods to measure the allowance for credit losses on individually evaluated loans. A discounted cash flow approach is used to estimate the allowance for credit losses on certain nonaccrual corporate loans and all troubled debt restructurings (“TDRs”) that are not collateral-dependent. For collateral-dependent loans and for instances where foreclosure is probable, we use an approach that considers the fair value of the collateral less selling costs when measuring the allowance for credit losses. A loan is collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the sale of the collateral. See Note 8 for further information about our bank loans, including credit quality indicators considered in developing the allowance for credit losses. Unfunded lending commitments We estimate credit losses on unfunded lending commitments using a methodology consistent with that used in the corresponding bank loan portfolio segment and also based on the expected funding probabilities for fully binding commitments. As a result, the allowance for credit losses for unfunded lending commitments will vary depending upon the mix of lending commitments and future funding expectations. All classes of individually evaluated unfunded lending commitments are analyzed in conjunction with the specific allowance process previously described. The allowance for credit losses related to unfunded lending commitments is included in “Other payables” on our Condensed Consolidated Statements of Financial Condition. Loans to financial advisors The allowance for credit losses on loans to financial advisors is estimated using credit risk models that incorporate average annual loan-level loss rates and estimated prepayments based on historical data. The qualitative component of our estimate considers internal and external factors that are not incorporated into the quantitative estimate such as the reasonable and supportable forecast period. In estimating an allowance for credit losses on our individually-evaluated loans to financial advisors, we generally take into account the affiliation status of the financial advisor (i.e., whether the advisor is actively affiliated with us or has terminated affiliation with us), the borrower’s ability to restructure the loan, sources of repayment, and other factors affecting the borrower’s ability to repay the debt. |
ACQUISITIONS
ACQUISITIONS | 6 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
ACQUISITIONS | ACQUISITIONS Acquisitions announced and completed during the six months ended March 31, 2021 In December 2020, we announced and completed our acquisition of all of the outstanding shares of NWPS Holdings, Inc. and its wholly-owned subsidiaries (collectively “NWPS”), doing business as NWPS and Northwest Plan Services. As an independent provider of retirement plan administration, consulting, actuarial and administration services, the addition of NWPS allows us to expand our retirement services offerings, including retirement plan administration services, to advisors and clients. For purposes of certain acquisition-related financial reporting requirements, the NWPS acquisition was not considered a material acquisition. NWPS has been integrated into our Private Client Group (“PCG”) segment and its results of operations have been included in our results prospectively from the closing date of December 24, 2020. The NWPS acquisition resulted in the addition of $139 million of goodwill and $96 million of identifiable intangible assets during the six months ended March 31, 2021. The goodwill associated with this acquisition primarily represents synergies from combining NWPS with our existing businesses. The identifiable intangible assets primarily relate to client relationships and have a weighted-average useful life of 24.8 years. In March 2021, we completed our acquisition of all of the outstanding ownership interests of Financo, LLC and its subsidiaries (collectively “Financo”), an investment bank focused on the consumer sector. The addition of Financo allows us to further grow our investment banking capabilities in the consumer and retail space, both domestically and internationally. For purposes of certain acquisition-related financial reporting requirements, the Financo acquisition was not considered a material acquisition. Financo has been integrated into our Capital Markets segment and its results of operations have been included in our results prospectively from the closing date of March 30, 2021. The Financo acquisition resulted in the addition of $30 million of goodwill and $9 million of identifiable intangible assets during the six months ended March 31, 2021. The goodwill associated with this acquisition primarily represents synergies from combining Financo with our existing businesses. The goodwill associated with Financo is generally deductible for tax purposes over 15 years. The identifiable intangible assets primarily relate to client relationships and have a weighted-average useful life of 9 months. Due to the timing of the close of this acquisition, certain information is not yet available and the amounts of goodwill and intangible assets are considered provisional. We believe the information currently available provides a reasonable basis for estimating the fair value of these assets. However, these provisional estimates may be adjusted upon the availability of new information regarding facts and circumstances which existed at the acquisition date. We expect to finalize this valuation by the end of our 2021 fiscal year. See Notes 2 and 10 of our 2020 Form 10-K and Note 11 of this Form 10-Q for additional information about our goodwill and identifiable intangible assets, including the related accounting policies. Acquisition-related expenses Certain acquisition and integration costs associated with these acquisitions were included in “Acquisition and disposition-related expenses” during fiscal 2021 on our Condensed Consolidated Statements of Income and Comprehensive Income. Such costs primarily included legal and other professional fees. |
FAIR VALUE
FAIR VALUE | 6 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | FAIR VALUE Our “Financial instruments” and “Financial instrument liabilities” on our Condensed Consolidated Statements of Financial Condition are recorded at fair value under GAAP. For further information about such instruments and our significant accounting policies related to fair value, see Notes 2 and 3 of our 2020 Form 10-K. The following tables present assets and liabilities measured at fair value on a recurring basis. Netting adjustments represent the impact of counterparty and collateral netting on our derivative balances included on our Condensed Consolidated Statements of Financial Condition. See Note 6 for additional information. $ in millions Level 1 Level 2 Level 3 Netting Balance as of March 31, 2021 Assets at fair value on a recurring basis: Assets segregated pursuant to regulations $ 5,250 $ — $ — $ — $ 5,250 Trading assets Municipal and provincial obligations 1 159 — — 160 Corporate obligations 9 31 — — 40 Government and agency obligations 13 94 — — 107 Agency MBS and agency CMOs — 193 — — 193 Non-agency CMOs and asset-backed securities (“ABS”) — 6 — — 6 Total debt securities 23 483 — — 506 Equity securities 13 1 — — 14 Brokered certificates of deposit — 42 — — 42 Other — — 5 — 5 Total trading assets 36 526 5 — 567 Available-for-sale securities (1) 15 8,143 — — 8,158 Derivative assets Interest rate - matched book — 201 — — 201 Interest rate - other 70 143 — (111) 102 Foreign exchange — 1 — — 1 Total derivative assets 70 345 — (111) 304 Other investments - private equity - not measured at net asset value (“NAV”) — — 52 — 52 All other investments: Government and agency obligations (2) 105 — — — 105 Other 100 2 23 — 125 Total all other investments 205 2 23 — 230 Subtotal 5,576 9,016 80 (111) 14,561 Other investments - private equity - measured at NAV 88 Total assets at fair value on a recurring basis $ 5,576 $ 9,016 $ 80 $ (111) $ 14,649 Liabilities at fair value on a recurring basis: Trading liabilities Municipal and provincial obligations $ 1 $ — $ — $ — $ 1 Corporate obligations — 22 — — 22 Government and agency obligations 122 — — — 122 Agency MBS and agency CMOs — 22 — — 22 Total debt securities 123 44 — — 167 Equity securities 44 — — — 44 Other — — 1 — 1 Total trading liabilities 167 44 1 — 212 Derivative liabilities Interest rate - matched book — 201 — — 201 Interest rate - other 64 121 — (69) 116 Foreign exchange — 3 — — 3 Other — — 4 — 4 Total derivative liabilities 64 325 4 (69) 324 Total liabilities at fair value on a recurring basis $ 231 $ 369 $ 5 $ (69) $ 536 $ in millions Level 1 Level 2 Level 3 Netting Balance as of September 30, 2020 Assets at fair value on a recurring basis: Trading assets Municipal and provincial obligations $ 5 $ 120 $ — $ — $ 125 Corporate obligations 11 45 — — 56 Government and agency obligations 13 131 — — 144 Agency MBS and agency CMOs — 130 — — 130 Non-agency CMOs and ABS — 13 — — 13 Total debt securities 29 439 — — 468 Equity securities 11 5 — — 16 Brokered certificates of deposit — 17 — — 17 Other — — 12 — 12 Total trading assets 40 461 12 — 513 Available-for-sale securities (1) 16 7,634 — — 7,650 Derivative assets Interest rate - matched book — 333 — — 333 Interest rate - other 16 224 — (135) 105 Total derivative assets 16 557 — (135) 438 Other investments - private equity - not measured at NAV — — 37 — 37 All other investments: Government and agency obligations (2) 103 — — — 103 Other 92 1 22 — 115 Total all other investments 195 1 22 — 218 Subtotal 267 8,653 71 (135) 8,856 Other investments - private equity - measured at NAV 79 Total assets at fair value on a recurring basis $ 267 $ 8,653 $ 71 $ (135) $ 8,935 Liabilities at fair value on a recurring basis: Trading liabilities Municipal and provincial obligations $ 1 $ — $ — $ — $ 1 Corporate obligations — 5 — — 5 Government and agency obligations 136 — — — 136 Non-agency CMOs and ABS — 2 — — 2 Total debt securities 137 7 — — 144 Equity securities 96 — — — 96 Total trading liabilities 233 7 — — 240 Derivative liabilities Interest rate - matched book — 333 — — 333 Interest rate - other 16 145 — (112) 49 Foreign exchange — 5 — — 5 Other — 1 5 — 6 Total derivative liabilities 16 484 5 (112) 393 Total liabilities at fair value on a recurring basis $ 249 $ 491 $ 5 $ (112) $ 633 (1) Substantially all of our available-for-sale securities consist of agency MBS and agency CMOs. See Note 5 for further information. (2) These assets are comprised of U.S. Treasuries purchased to meet certain deposit requirements with clearing organizations. Level 3 recurring fair value measurements The following tables present the changes in fair value for Level 3 assets and liabilities measured at fair value on a recurring basis. The realized and unrealized gains and losses in the tables may include changes in fair value that were attributable to both observable and unobservable inputs. In the following tables, gains/(losses) on trading instruments are reported in “Principal transactions” and gains/(losses) on other investments are reported in “Other” revenues. Three months ended March 31, 2021 Level 3 instruments at fair value Financial assets Financial liabilities Trading assets Other investments Trading liabilities Derivative liabilities $ in millions Other Private equity investments All other Other Other Fair value beginning of period $ 3 $ 52 $ 22 $ — $ (1) Total gains/(losses) included in earnings (2) — 1 (1) (3) Purchases and contributions 10 — — — — Sales and distributions (6) — — — — Transfers: Into Level 3 — — — — — Out of Level 3 — — — — — Fair value end of period $ 5 $ 52 $ 23 $ (1) $ (4) Unrealized gains/(losses) for the period included in earnings for instruments held at the end of the reporting period $ — $ — $ 1 $ (1) $ (3) Six months ended March 31, 2021 Level 3 instruments at fair value Financial assets Financial liabilities Trading assets Other investments Trading liabilities Derivative liabilities $ in millions Other Private equity investments All other Other Other Fair value beginning of period $ 12 $ 37 $ 22 $ — $ (5) Total gains/(losses) included in earnings — 15 1 (1) 1 Purchases and contributions 16 — — — — Sales and distributions (23) — — — — Transfers: Into Level 3 — — — — — Out of Level 3 — — — — — Fair value end of period $ 5 $ 52 $ 23 $ (1) $ (4) Unrealized gains/(losses) for the period included in earnings for instruments held at the end of the reporting period $ — $ 15 $ 1 $ (1) $ 1 Three months ended March 31, 2020 Level 3 instruments at fair value Financial assets Financial liabilities Trading assets Other investments Trading liabilities $ in millions Other Private equity investments All other Other Fair value beginning of period $ 19 $ 62 $ 24 $ (1) Total gains/(losses) included in earnings 3 (32) (2) — Purchases and contributions 22 — — 1 Sales and distributions (23) — — — Transfers: Into Level 3 — — — — Out of Level 3 — — — — Fair value end of period $ 21 $ 30 $ 22 $ — Unrealized gains/(losses) for the period included in earnings for instruments held at the end of the reporting period $ 5 $ (32) $ (2) $ — Six months ended March 31, 2020 Level 3 instruments at fair value Financial assets Financial liabilities Trading assets Other investments Trading liabilities $ in millions Other Private equity investments All other Other Fair value beginning of period $ 3 $ 63 $ 24 $ (1) Total gains/(losses) included in earnings 3 (32) (2) — Purchases and contributions 53 — — 2 Sales and distributions (38) (1) — (1) Transfers: Into Level 3 — — — — Out of Level 3 — — — — Fair value end of period $ 21 $ 30 $ 22 $ — Unrealized gains/(losses) for the period included in earnings for instruments held at the end of the reporting period $ 5 $ (32) $ (2) $ — The net unrealized losses on our Level 3 private equity investments for the three and six months ended March 31, 2020 were primarily driven by the then anticipated negative impact of the coronavirus (“COVID-19”) pandemic on certain of our investments. Of these losses, approximately $20 million for both the three and six months ended March 31, 2020 were attributable to noncontrolling interests, which are reflected as an offset in “Other” expenses on our Condensed Consolidated Statements of Income and Comprehensive Income. As of March 31, 2021, 26% of our assets and 1% of our liabilities were measured at fair value on a recurring basis. In comparison, as of September 30, 2020, 19% of our assets and 2% of our liabilities were measured at fair value on a recurring basis. The increase in assets measured at fair value on a recurring basis as a percentage of total assets was primarily due to a significant increase in assets segregated pursuant to regulations at fair value during fiscal 2021, driven by a significant increase in client cash balances. As of both March 31, 2021 and September 30, 2020, Level 3 assets represented less than 1% of our assets measured at fair value on a recurring basis. Quantitative information about level 3 fair value measurements The following table presents the valuation techniques and significant unobservable inputs used in the valuation of certain of our private equity investments classified as level 3. These inputs represent those that a market participant would take into account when pricing these instruments. Weighted averages are calculated by weighting each input by the relative fair value of the related financial instrument. Certain investments are valued initially at transaction price and updated as other investment-specific events take place which indicate that a change in the carrying values of these investments is appropriate. Other investment-specific events include such events as our periodic review, significant transactions occur or new developments become known. Recurring measurements $ in millions Fair value at March 31, 2021 Valuation technique(s) Unobservable input Range Other investments - private equity investments (not measured at NAV) $ 52 Discounted cash flow, transaction price or other investment-specific events Discount rate 25% Terminal earnings before interest, tax, depreciation and amortization (“EBITDA”) multiple 9.0x Terminal year 2021 - 2034 (2022) Fair value at September 30, 2020 Other investments - private equity investments (not measured at NAV) $ 37 Discounted cash flow, transaction price or other investment-specific events Discount rate 25% Terminal EBITDA multiple 9.0x Terminal year 2021 - 2042 (2023) Qualitative information about unobservable inputs For our recurring fair value measurements categorized within Level 3 of the fair value hierarchy, the sensitivity of the fair value measurement to changes in significant unobservable inputs and interrelationships between those unobservable inputs are described in the following section. Private equity investments The significant unobservable inputs used in the fair value measurement of private equity investments generally relate to the financial performance of the investment entity and the market’s required return on investments from entities in industries in which we hold investments. Increases in the discount rate would have resulted in a lower fair value measurement. Increases in the terminal EBITDA multiple would have resulted in a higher fair value measurement. Increases in the terminal year are dependent upon each investment’s strategy, but generally result in a lower fair value measurement. Investments in private equity measured at net asset value per share As more fully described in Note 2 of our 2020 Form 10-K, as a practical expedient, we utilize NAV or its equivalent to determine the recorded value of a portion of our private equity investments portfolio. We utilize NAV when the fund investment does not have a readily determinable fair value and the NAV of the fund is calculated in a manner consistent with the measurement principles of investment company accounting, including measurement of the investments at fair value. Our private equity portfolio as of March 31, 2021 includes various direct investments, as well as investments in third-party private equity funds and various legacy private equity funds which we sponsor. The portfolio is primarily invested in a broad range of strategies including leveraged buyouts, growth capital, distressed capital, venture capital and mezzanine capital. Due to the closed-end nature of certain of our fund investments, such investments cannot be redeemed directly with the funds. Our investment is monetized by distributions received through the liquidation of the underlying assets of those funds, the timing of which is uncertain. The following table presents the recorded value and unfunded commitments related to our private equity investments portfolio. $ in millions Recorded value Unfunded commitment March 31, 2021 Private equity investments measured at NAV $ 88 $ 9 Private equity investments not measured at NAV 52 Total private equity investments $ 140 September 30, 2020 Private equity investments measured at NAV $ 79 $ 9 Private equity investments not measured at NAV 37 Total private equity investments $ 116 Of the total private equity investments, the portions we owned were $105 million and $90 million as of March 31, 2021 and September 30, 2020, respectively. The portions of the private equity investments we did not own were $35 million and $26 million as of March 31, 2021 and September 30, 2020, respectively, and were included as a component of noncontrolling interests on our Condensed Consolidated Statements of Financial Condition. As a financial holding company, we are subject to holding period limitations for our merchant banking activities. As a result, we will be required to exit certain of our private equity investments by February 2022. Additionally, many of our private equity fund investments meet the definition of prohibited covered funds as defined by the Volcker Rule enacted pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. We have received approval from the Board of Governors of the Federal Reserve System (“Fed”) to continue to hold the majority of our covered fund investments until July 2022. Financial instruments measured at fair value on a nonrecurring basis The following table presents assets measured at fair value on a nonrecurring basis along with the valuation techniques and significant unobservable inputs used in the valuation of the assets classified as level 3. These inputs represent those that a market participant would take into account when pricing these instruments. Weighted averages are calculated by weighting each input by the relative fair value of the related financial instrument. $ in millions Level 2 Level 3 Total fair value Valuation technique(s) Unobservable input Range March 31, 2021 Bank loans: Residential mortgage loans $ 4 $ 11 $ 15 Collateral or discounted cash flow (1) Prepayment rate 7 yrs. - 12 yrs. (10.5 yrs.) Corporate loans $ — $ 13 $ 13 Collateral or discounted cash flow (1) Not meaningful (1) Not meaningful (1) Loans held for sale $ 151 $ — $ 151 N/A N/A N/A September 30, 2020 Bank loans: Residential mortgage loans $ 4 $ 13 $ 17 Collateral or discounted cash flow (1) Prepayment rate 7 yrs. - 12 yrs. (10.6 yrs.) Corporate loans $ — $ 15 $ 15 Collateral or discounted cash flow (1) Not meaningful (1) Not meaningful (1) Loans held for sale $ 38 $ — $ 38 N/A N/A N/A Other assets: other real estate owned $ 1 $ — $ 1 N/A N/A N/A (1) The valuation techniques used to estimate the fair values are based on collateral value less selling costs for the collateral-dependent loans and discounted cash flows for loans that are not collateral-dependent. Financial instruments not recorded at fair value Many, but not all, of the financial instruments we hold were recorded at fair value on the Condensed Consolidated Statements of Financial Condition. The following table presents the estimated fair value and fair value hierarchy of financial assets and liabilities that are not recorded at fair value in accordance with GAAP on the Condensed Consolidated Statements of Financial Condition at March 31, 2021 and September 30, 2020. This table excludes financial instruments that are carried at amounts which approximate fair value. Refer to Note 3 of our 2020 Form 10-K for a discussion of the fair value hierarchy classifications of our financial instruments that are not recorded at fair value. $ in millions Level 2 Level 3 Total estimated fair value Carrying amount March 31, 2021 Financial assets: Bank loans, net $ 52 $ 22,518 $ 22,570 $ 22,700 Financial liabilities: Bank deposits - certificates of deposit $ — $ 917 $ 917 $ 889 Senior notes payable (1) $ 2,400 $ — $ 2,400 $ 2,045 September 30, 2020 Financial assets: Bank loans, net $ 72 $ 21,119 $ 21,191 $ 21,125 Financial liabilities: Bank deposits - certificates of deposit $ — $ 1,056 $ 1,056 $ 1,017 Senior notes payable $ 2,504 $ — $ 2,504 $ 2,045 (1) In April and May 2021, we repurchased or redeemed, as applicable, a portion of our Senior notes payable. See Note 14 for further information. |
AVAILABLE-FOR-SALE SECURITIES
AVAILABLE-FOR-SALE SECURITIES | 6 Months Ended |
Mar. 31, 2021 | |
Debt Securities, Available-for-sale [Abstract] | |
AVAILABLE-FOR-SALE SECURITIES | AVAILABLE-FOR-SALE SECURITIES Available-for-sale securities are primarily comprised of agency MBS and agency CMOs owned by RJ Bank. As of October 1, 2020, we adopted new accounting guidance related to the measurement of credit losses on financial instruments, including available-for-sale securities. Refer to Note 2 for further information about this guidance and a discussion of our available-for-sale securities. The following table details the amortized costs and fair values of our available-for-sale securities. $ in millions Cost basis Gross Gross Fair value March 31, 2021 Agency residential MBS $ 4,762 $ 53 $ (31) $ 4,784 Agency commercial MBS 1,194 10 (36) 1,168 Agency CMOs 2,193 15 (17) 2,191 Other securities 15 — — 15 Total available-for-sale securities $ 8,164 $ 78 $ (84) $ 8,158 September 30, 2020 Agency residential MBS $ 4,064 $ 74 $ (3) $ 4,135 Agency commercial MBS 948 22 (1) 969 Agency CMOs 2,504 27 (1) 2,530 Other securities 15 1 — 16 Total available-for-sale securities $ 7,531 $ 124 $ (5) $ 7,650 The amortized costs and fair values in the preceding table exclude $14 million and $15 million of accrued interest on available-for-sale securities as of March 31, 2021 and September 30, 2020, respectively, which was included in “Other receivables, net” on our Condensed Consolidated Statements of Financial Condition. See Note 4 for additional information regarding the fair value of available-for-sale securities. The following table details the contractual maturities, amortized costs, carrying values and current yields for our available-for-sale securities. Since our MBS and CMO available-for-sale securities are backed by mortgages, actual maturities may differ from contractual maturities because borrowers may have the right to prepay obligations without prepayment penalties. As a result, as of March 31, 2021, the weighted-average life of our available-for-sale securities portfolio was approximately 4 years. March 31, 2021 $ in millions Within one year After one but After five but After ten years Total Agency residential MBS Amortized cost $ — $ 45 $ 1,811 $ 2,906 $ 4,762 Carrying value $ — $ 47 $ 1,834 $ 2,903 $ 4,784 Agency commercial MBS Amortized cost $ 42 $ 191 $ 856 $ 105 $ 1,194 Carrying value $ 42 $ 195 $ 827 $ 104 $ 1,168 Agency CMOs Amortized cost $ — $ 1 $ 55 $ 2,137 $ 2,193 Carrying value $ — $ 1 $ 56 $ 2,134 $ 2,191 Other securities Amortized cost $ — $ 7 $ 8 $ — $ 15 Carrying value $ — $ 7 $ 8 $ — $ 15 Total available-for-sale securities Amortized cost $ 42 $ 244 $ 2,730 $ 5,148 $ 8,164 Carrying value $ 42 $ 250 $ 2,725 $ 5,141 $ 8,158 Weighted-average yield 2.10 % 2.14 % 1.27 % 1.03 % 1.15 % The following table details the gross unrealized losses and fair values of securities that were in a loss position at the reporting period end, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position. Less than 12 months 12 months or more Total $ in millions Estimated Unrealized Estimated Unrealized Estimated Unrealized March 31, 2021 Agency residential MBS $ 2,772 $ (31) $ — $ — $ 2,772 $ (31) Agency commercial MBS 756 (36) — — 756 (36) Agency CMOs 1,210 (17) 25 — 1,235 (17) Other securities 3 — — — 3 — Total $ 4,741 $ (84) $ 25 $ — $ 4,766 $ (84) September 30, 2020 Agency residential MBS $ 966 $ (3) $ — $ — $ 966 $ (3) Agency commercial MBS 177 (1) — — 177 (1) Agency CMOs 410 (1) — — 410 (1) Total $ 1,553 $ (5) $ — $ — $ 1,553 $ (5) The contractual cash flows of our available-for-sale securities are guaranteed by the U.S. government or its agencies. At March 31, 2021, of the 242 available-for-sale securities in an unrealized loss position, 241 were in a continuous unrealized loss position for less than 12 months and one security was in a continuous unrealized loss position for greater than 12 months. We do not consider unrealized losses associated with these securities to be credit losses due to the guarantee of the full payment of principal and interest, and the fact that we have the ability and intent to hold these securities. In addition, unrealized losses related to these available-for-sale securities are generally due to changes in market interest rates. At March 31, 2021, based on our assessment of this portfolio, we did not recognize an allowance for credit losses on our available-for-sale securities. At March 31, 2021, debt securities we held in excess of ten percent of our equity included those issued by the Federal National Home Mortgage Association (“FNMA”) and Federal Home Loan Mortgage Corporation (“FHLMC”) with amortized costs of $5.04 billion and $2.81 billion, respectively, which also approximated the fair values of the securities. During the three months ended March 31, 2021, there were no sales of available-for-sale securities. During the six months ended March 31, 2021, we received proceeds of $519 million, resulting in an insignificant gain, from sales of agency MBS and agency CMO available-for-sale securities. The gain that resulted from the sales was included in “Other” revenues on our |
DERIVATIVE ASSETS AND DERIVATIV
DERIVATIVE ASSETS AND DERIVATIVE LIABILITIES | 6 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE ASSETS AND DERIVATIVE LIABILITIES | DERIVATIVE ASSETS AND DERIVATIVE LIABILITIES Our derivative assets and derivative liabilities are recorded at fair value and are included in “Derivative assets” and “Derivative liabilities” on our Condensed Consolidated Statements of Financial Condition. Cash flows related to our derivatives are included within operating activities on the Condensed Consolidated Statements of Cash Flows. The significant accounting policies governing our derivatives, including our methodologies for determining fair value, are described in Note 2 of our 2020 Form 10-K. Derivative balances included on our financial statements The following table presents the gross fair values and notional amounts of derivatives by product type, the amounts of counterparty and cash collateral netting on our Condensed Consolidated Statements of Financial Condition, as well as collateral posted and received under credit support agreements that do not meet the criteria for netting under GAAP. March 31, 2021 September 30, 2020 $ in millions Derivative assets Derivative liabilities Notional amount Derivative assets Derivative liabilities Notional amount Derivatives not designated as hedging instruments Interest rate - matched book $ 201 $ 201 $ 1,935 $ 333 $ 333 $ 2,174 Interest rate - other (1) 213 185 18,459 240 161 19,206 Foreign exchange 1 1 744 — 2 605 Other — 4 566 — 6 608 Subtotal 415 391 21,704 573 502 22,593 Derivatives designated as hedging instruments Interest rate — — 850 — — 850 Foreign exchange — 2 901 — 3 866 Subtotal — 2 1,751 — 3 1,716 Total gross fair value/notional amount 415 393 $ 23,455 573 505 $ 24,309 Offset on the Condensed Consolidated Statements of Financial Condition Counterparty netting (66) (66) (40) (40) Cash collateral netting (45) (3) (95) (72) Total amounts offset (111) (69) (135) (112) Net amounts presented on the Condensed Consolidated Statements of Financial Condition 304 324 438 393 Gross amounts not offset on the Condensed Consolidated Statements of Financial Condition Financial instruments (2) (212) (201) (349) (333) Total $ 92 $ 123 $ 89 $ 60 (1) Substantially all relates to interest rate derivatives entered into as part of our fixed income business operations, including to-be-announced (“TBA”) security contracts that are accounted for as derivatives. (2) Although the matched book derivative arrangements do not meet the definition of a master netting arrangement as specified by GAAP, the agreement with the third-party intermediary includes terms that are similar to a master netting agreement. As a result, we present the matched book amounts net in the preceding table. The following table details the gains/(losses) included in accumulated other comprehensive income (“AOCI”), net of income taxes, on derivatives designated as hedging instruments. These gains/(losses) included any amounts reclassified from AOCI to net income during the period. See Note 17 for additional information. Three months ended March 31, Six months ended March 31, $ in millions 2021 2020 2021 2020 Interest rate (cash flow hedges) $ 19 $ (43) $ 24 $ (33) Foreign exchange (net investment hedges) (10) 52 (39) 39 Total gains/(losses) in AOCI, net of taxes $ 9 $ 9 $ (15) $ 6 There were no components of derivative gains or losses excluded from the assessment of hedge effectiveness for each of the three and six months ended March 31, 2021 and 2020. We expect to reclassify $15 million of interest expense out of AOCI and into earnings within the next 12 months. The maximum length of time over which forecasted transactions are or will be hedged is 7 years. The following table details the gains/(losses) on derivatives not designated as hedging instruments recognized on the Condensed Consolidated Statements of Income and Comprehensive Income. $ in millions Three months ended March 31, Six months ended March 31, Location of gain/(loss) 2021 2020 2021 2020 Interest rate Principal transactions/other revenues $ 6 $ — $ 10 $ 5 Foreign exchange Other revenues $ (4) $ 43 $ (30) $ 32 Other Principal transactions $ (2) $ — $ 2 $ — Other Compensation, commissions and benefits expense $ — $ (1) $ — $ (1) Risks associated with our derivatives and related risk mitigation Credit risk We are exposed to credit losses in the event of nonperformance by the counterparties to derivatives that are not cleared through a clearing organization. Where we are subject to credit exposure, we perform a credit evaluation of counterparties prior to entering into derivative transactions and we monitor their credit standings. We may require initial margin or collateral from counterparties in the form of cash or other marketable securities to support certain of these obligations as established by the credit threshold specified by the agreement and/or as a result of monitoring the credit standing of the counterparties. Our only exposure to credit risk on matched book derivatives is related to our uncollected derivative transaction fee revenues, which were insignificant as of both March 31, 2021 and September 30, 2020. We are not exposed to market risk on these derivatives due to the pass-through transaction structure described in Note 2 of our 2020 Form 10-K. Interest rate and foreign exchange risk We are exposed to interest rate risk related to certain of our interest rate derivatives. We are also exposed to foreign exchange risk related to our forward foreign exchange derivatives. On a daily basis, we monitor our risk exposure on our derivatives based on established limits with respect to a number of factors, including interest rate, foreign exchange spot and forward rates, spread, ratio, basis and volatility risks, both for the total portfolio and by maturity period. |
COLLATERALIZED AGREEMENTS AND F
COLLATERALIZED AGREEMENTS AND FINANCINGS | 6 Months Ended |
Mar. 31, 2021 | |
Offsetting [Abstract] | |
COLLATERALIZED AGREEMENTS AND FINANCINGS | COLLATERALIZED AGREEMENTS AND FINANCINGS Collateralized agreements are comprised of securities purchased under agreements to resell (“reverse repurchase agreements”) and securities borrowed. Collateralized financings are comprised of securities sold under agreements to repurchase (“repurchase agreements”) and securities loaned. We enter into these transactions in order to facilitate client activities, acquire securities to cover short positions and finance certain firm activities. The significant accounting policies governing our collateralized agreements and financings are described in Note 2 of our 2020 Form 10-K. Our reverse repurchase agreements, repurchase agreements, securities borrowing and securities lending transactions are governed by master agreements that are widely used by counterparties and that may allow for net settlements of payments in the normal course, as well as offsetting of all contracts with a given counterparty in the event of bankruptcy or default of one of the parties to the transaction. For financial statement purposes, we do not offset our reverse repurchase agreements, repurchase agreements, securities borrowed and securities loaned because the conditions for netting as specified by GAAP are not met. Although not offset on the Condensed Consolidated Statements of Financial Condition, these transactions are included in the following table. Collateralized agreements Collateralized financings $ in millions Reverse repurchase agreements Securities borrowed Total Repurchase agreements Securities loaned Total March 31, 2021 Gross amounts of recognized assets/liabilities $ 224 $ 227 $ 451 $ 222 $ 56 $ 278 Gross amounts offset on the Condensed Consolidated Statements of Financial Condition — — — — — — Net amounts presented on the Condensed Consolidated Statements of Financial Condition 224 227 451 222 56 278 Gross amounts not offset on the Condensed Consolidated Statements of Financial Condition (224) (222) (446) (222) (55) (277) Net amounts $ — $ 5 $ 5 $ — $ 1 $ 1 September 30, 2020 Gross amounts of recognized assets/liabilities $ 207 $ 215 $ 422 $ 165 $ 85 $ 250 Gross amounts offset on the Condensed Consolidated Statements of Financial Condition — — — — — — Net amounts presented on the Condensed Consolidated Statements of Financial Condition 207 215 422 165 85 250 Gross amounts not offset on the Condensed Consolidated Statements of Financial Condition (207) (209) (416) (165) (79) (244) Net amounts $ — $ 6 $ 6 $ — $ 6 $ 6 The total amount of collateral received under reverse repurchase agreements and the total amount of collateral posted under repurchase agreements exceeds the carrying value of these agreements on our Condensed Consolidated Statements of Financial Condition. Collateral received and pledged We receive cash and securities as collateral, primarily in connection with reverse repurchase agreements, securities borrowed, derivative transactions and client margin loans. The collateral we receive reduces our credit exposure to individual counterparties. In many cases, we are permitted to deliver or repledge financial instruments we have received as collateral to satisfy our collateral requirements under our repurchase agreements, securities lending agreements or other secured borrowings, to satisfy deposit requirements with clearing organizations, or to otherwise meet either our or our clients’ settlement requirements. The following table presents financial instruments at fair value that we received as collateral, were not included on our Condensed Consolidated Statements of Financial Condition, and that were available to be delivered or repledged, along with the balances of such instruments that were delivered or repledged, to satisfy one of our purposes previously described. $ in millions March 31, 2021 September 30, 2020 Collateral we received that was available to be delivered or repledged $ 3,225 $ 2,869 Collateral that we delivered or repledged $ 886 $ 788 Encumbered assets We pledge certain of our assets to collateralize either repurchase agreements or other secured borrowings, maintain lines of credit, or to satisfy our collateral or settlement requirements with counterparties or clearing organizations who may or may not have the right to deliver or repledge such instruments. The following table presents information about our assets that have been pledged for one of the purposes previously described. $ in millions March 31, 2021 September 30, 2020 Had the right to deliver or repledge $ 424 $ 325 Did not have the right to deliver or repledge $ 65 $ 65 Bank loans, net pledged at the Federal Home Loan Bank (“FHLB”) and the Federal Reserve Bank of Atlanta $ 5,501 $ 5,367 Repurchase agreements, repurchase-to-maturity transactions and securities loaned accounted for as secured borrowings The following table presents the remaining contractual maturity of repurchase agreements and securities lending transactions accounted for as secured borrowings. $ in millions Overnight and continuous Up to 30 days 30-90 days Greater than 90 days Total March 31, 2021 Repurchase agreements: Government and agency obligations $ 121 $ — $ — $ — $ 121 Agency MBS and agency CMOs 101 — — — 101 Total repurchase agreements 222 — — — 222 Securities loaned: Equity securities 56 — — — 56 Total collateralized financings $ 278 $ — $ — $ — $ 278 September 30, 2020 Repurchase agreements: Government and agency obligations $ 87 $ — $ — $ — $ 87 Agency MBS and agency CMOs 78 — — — 78 Total repurchase agreements 165 — — — 165 Securities loaned: Equity securities 85 — — — 85 Total collateralized financings $ 250 $ — $ — $ — $ 250 As of both March 31, 2021 and September 30, 2020, we did not have any “repurchase-to-maturity” agreements, which are repurchase agreements where a security is transferred under an agreement to repurchase and the maturity date of the repurchase agreement matches the maturity date of the underlying security. |
BANK LOANS, NET
BANK LOANS, NET | 6 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
BANK LOANS, NET | BANK LOANS, NET Bank client receivables are comprised of loans originated or purchased by RJ Bank, N.A. and include C&I loans, REIT loans, tax-exempt loans, commercial and residential real estate loans, and SBL and other loans. These receivables are collateralized by first and, to a lesser extent, second mortgages on residential or other real property, other assets of the borrower, a pledge of revenue, securities or are unsecured. See Note 2 of our 2020 Form 10-K for a discussion of accounting policies related to bank loans. As of October 1, 2020, we adopted new accounting guidance related to the measurement of credit losses on financial instruments. See Note 2 for further information about this guidance and a discussion of our accounting policies related to our allowance for credit losses. We segregate our loan portfolio into six loan portfolio segments: C&I, CRE, REIT, tax-exempt, residential mortgage, and SBL and other. Upon adoption, we redefined certain of our portfolio segments to align with the new methodology applied in determining the allowance for credit losses. Prior-period loan portfolio segment balances have been revised to conform to the current presentation. Loan balances in the following tables are presented at amortized cost (outstanding principal balance net of unearned income and deferred expenses, which include purchase premiums, purchase discounts and net deferred origination fees and costs), except for certain held for sale loans recorded at fair value. Bank loans are presented on our Condensed Consolidated Statements of Financial Condition at amortized cost (or fair value where applicable) less the allowance for credit losses. The following table presents the balances for both the held for sale and held for investment loan portfolios, as well as the associated percentage of each portfolio segment in RJ Bank’s total loan portfolio. March 31, 2021 September 30, 2020 $ in millions Balance % Balance % C&I loans $ 7,816 34 % $ 7,421 34 % CRE loans 2,710 12 % 2,489 12 % REIT loans 1,380 6 % 1,210 5 % Tax-exempt loans 1,223 5 % 1,259 6 % Residential mortgage loans 5,001 21 % 4,973 23 % SBL and other 4,891 21 % 4,087 19 % Total loans held for investment 23,021 99 % 21,439 99 % Held for sale loans 203 1 % 110 1 % Total loans held for sale and investment 23,224 100 % 21,549 100 % Allowance for credit losses (345) (354) Bank loans, net $ 22,879 $ 21,195 Accrued interest receivable on bank loans $ 46 $ 45 The allowance for credit losses as of March 31, 2021 was determined using the new methodology under CECL, which was adopted on October 1, 2020. Prior periods have not been restated and were calculated under the incurred loss methodology. Accrued interest receivables presented in the preceding table are reported in “Other receivables, net” on our Condensed Consolidated Statements of Financial Condition. At March 31, 2021, the FHLB had a blanket lien on RJ Bank’s residential mortgage loan portfolio as security for the repayment of certain borrowings. See Note 14 of our 2020 Form 10-K for more information regarding borrowings from the FHLB. Held for sale loans RJ Bank originated or purchased $528 million and $1.11 billion of loans held for sale during the three and six months ended March 31, 2021, respectively, and $443 million and $1.15 billion during the three and six months ended March 31, 2020, respectively. Proceeds from the sale of these held for sale loans amounted to $207 million and $395 million during the three and six months ended March 31, 2021, respectively, and $220 million and $434 million during the three and six months ended March 31, 2020, respectively. Net gains resulting from such sales were insignificant in all periods during the three and six months ended March 31, 2021 and 2020. Purchases and sales of loans held for investment The following table presents purchases and sales of any loans held for investment by portfolio segment. $ in millions C&I loans CRE loans Residential mortgage loans Total Three months ended March 31, 2021 Purchases $ 538 $ — $ 114 $ 652 Sales $ 95 $ — $ — $ 95 Six months ended March 31, 2021 Purchases $ 660 $ — $ 160 $ 820 Sales $ 100 $ — $ — $ 100 Three months ended March 31, 2020 Purchases $ 296 $ 5 $ 100 $ 401 Sales $ — $ — $ — $ — Six months ended March 31, 2020 Purchases $ 396 $ 5 $ 258 $ 659 Sales $ 20 $ — $ — $ 20 Sales in the preceding table represent the recorded investment (i.e., net of charge-offs and discounts or premiums) of loans held for investment that were transferred to loans held for sale and subsequently sold to a third party during the respective period. As more fully described in Note 2 of our 2020 Form 10-K, corporate loan sales generally occur as part of our credit management activities. Aging analysis of loans held for investment The following table presents information on delinquency status of our loans held for investment. $ in millions 30-89 days and accruing 90 days or more and accruing Total past due and accruing Nonaccrual with allowance Nonaccrual with no allowance Current and accruing Total loans held for investment March 31, 2021 C&I loans $ — $ — $ — $ — $ — $ 7,816 $ 7,816 CRE loans — — — — 13 2,697 2,710 REIT loans — — — — — 1,380 1,380 Tax-exempt loans — — — — — 1,223 1,223 Residential mortgage loans 1 — 1 14 4 4,982 5,001 SBL and other — — — — — 4,891 4,891 Total loans held for investment $ 1 $ — $ 1 $ 14 $ 17 $ 22,989 $ 23,021 September 30, 2020 C&I loans $ — $ — $ — $ 2 $ — $ 7,419 $ 7,421 CRE loans — — — — 14 2,475 2,489 REIT loans — — — — — 1,210 1,210 Tax-exempt loans — — — — — 1,259 1,259 Residential mortgage loans — — — 3 11 4,959 4,973 SBL and other — — — — — 4,087 4,087 Total loans held for investment $ — $ — $ — $ 5 $ 25 $ 21,409 $ 21,439 The preceding table includes $15 million at both March 31, 2021 and September 30, 2020 of nonaccrual loans which were current pursuant to their contractual terms. The table also includes CRE and residential first mortgage loan TDRs of $13 million and $14 million, respectively, at March 31, 2021 and $6 million and $15 million, respectively, at September 30, 2020. Other real estate owned, included in “Other assets” on our Condensed Consolidated Statements of Financial Condition, was insignificant at both March 31, 2021 and September 30, 2020. Collateral-dependent loans A loan is considered collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the sale of the underlying collateral. At March 31, 2021, we had $13 million of collateral-dependent CRE loans, which were fully collateralized by retail and industrial real estate, and $6 million of collateral-dependent residential loans, which were fully collateralized by single family homes. Collateral-dependent loans do not include loans to borrowers who have been granted forbearance as result of the COVID-19 pandemic or loans for which the borrower had requested a loan modification, where the request had been initiated but had not been approved or completed as of the end of the quarter. Such loans may be considered collateral-dependent after the forbearance period expires. The recorded investment in mortgage loans secured by one-to-four family residential properties for which formal foreclosure proceedings were in process was $6 million at both March 31, 2021 and September 30, 2020. Credit quality indicators The credit quality of RJ Bank’s loan portfolio is summarized monthly by management using internal risk ratings, which align with the standard asset classification system utilized by bank regulators. These classifications are divided into three groups: Not Classified (Pass), Special Mention, and Classified or Adverse Rating (Substandard, Doubtful and Loss). These terms are defined as follows: Pass – Loans which are well protected by the current net worth and paying capacity of the obligor (or guarantors, if any) or by the fair value, less costs to acquire and sell, of any underlying collateral in a timely manner. Special Mention – Loans which have potential weaknesses that deserve management’s close attention. These loans are not adversely classified and do not expose RJ Bank to sufficient risk to warrant an adverse classification. Substandard – Loans which are inadequately protected by the current sound worth and paying capacity of the obligor or by the collateral pledged, if any. Loans with this classification are characterized by the distinct possibility that RJ Bank will sustain some loss if the deficiencies are not corrected. Doubtful – Loans which have all the weaknesses inherent in loans classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full highly questionable and improbable on the basis of currently-known facts, conditions and values. Loss – Loans which are considered by management to be uncollectible and of such little value that their continuance on RJ Bank’s books as an asset, without establishment of a specific valuation allowance or charge-off, is not warranted. RJ Bank does not have any loan balances within this classification because, in accordance with our accounting policy, loans, or a portion thereof considered to be uncollectible are charged-off prior to the assignment of this classification. The following tables present RJ Bank’s held for investment loan portfolio by year of origination and credit quality indicator as of March 31, 2021. $ in millions 2021 2020 2019 2018 2017 Prior Revolving loans Total C&I loans Risk rating: Pass $ 312 $ 1,259 $ 1,206 $ 1,404 $ 1,043 $ 1,590 $ 649 $ 7,463 Special mention — — 43 103 — 54 2 202 Substandard — — 39 84 — 28 — 151 Doubtful — — — — — — — — Total C&I loans $ 312 $ 1,259 $ 1,288 $ 1,591 $ 1,043 $ 1,672 $ 651 $ 7,816 CRE loans Risk rating: Pass $ 194 $ 435 $ 572 $ 645 $ 226 $ 209 $ 61 $ 2,342 Special mention — 45 86 49 — — — 180 Substandard — — 32 86 8 62 — 188 Doubtful — — — — — — — — Total CRE loans $ 194 $ 480 $ 690 $ 780 $ 234 $ 271 $ 61 $ 2,710 REIT loans Risk rating: Pass $ 171 $ 123 $ 115 $ 87 $ 50 $ 220 $ 364 $ 1,130 Special mention — — 28 11 39 124 21 223 Substandard — — 21 — 4 — 2 27 Doubtful — — — — — — — — Total REIT loans $ 171 $ 123 $ 164 $ 98 $ 93 $ 344 $ 387 $ 1,380 Tax-exempt loans Risk rating: Pass $ 9 $ 59 $ 123 $ 209 $ 276 $ 547 $ — $ 1,223 Special mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total tax-exempt loans $ 9 $ 59 $ 123 $ 209 $ 276 $ 547 $ — $ 1,223 Residential mortgage loans Risk rating: Pass $ 836 $ 1,459 $ 788 $ 499 $ 556 $ 815 $ 18 $ 4,971 Special mention — — — — — 5 — 5 Substandard — — — 1 2 22 — 25 Doubtful — — — — — — — — Total residential mortgage loans $ 836 $ 1,459 $ 788 $ 500 $ 558 $ 842 $ 18 $ 5,001 SBL and other Risk rating: Pass $ 6 $ 45 $ 12 $ — $ — $ — $ 4,828 $ 4,891 Special mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total SBL and other $ 6 $ 45 $ 12 $ — $ — $ — $ 4,828 $ 4,891 Loans classified as special mention, substandard or doubtful are all considered to be “criticized” loans. RJ Bank also monitors the credit quality of the residential mortgage loan portfolio utilizing FICO scores and LTV ratios. A FICO score measures a borrower’s creditworthiness by considering factors such as payment and credit history. LTV measures the carrying value of the loan as a percentage of the value of the property securing the loan. The following table presents the held for investment residential mortgage loan portfolio by FICO score and by LTV ratio at origination. $ in millions March 31, 2021 September 30, 2020 FICO score: Below 600 $ 67 $ 67 600 - 699 398 363 700 - 799 3,496 3,463 800 + 1,035 1,076 FICO score not available 5 4 Total $ 5,001 $ 4,973 LTV ratio: Below 80% $ 3,901 $ 3,852 80%+ 1,100 1,121 Total $ 5,001 $ 4,973 Allowance for credit losses The following table presents changes in the allowance for credit losses on held for investment bank loans by portfolio segment. $ in millions C&I loans CRE loans REIT loans Tax-exempt loans Residential mortgage loans SBL and other Total Three months ended March 31, 2021 Balance at beginning of period $ 198 $ 112 $ 30 $ 2 $ 33 $ 3 $ 378 Provision/(benefit) for credit losses 7 (39) 6 — (7) 1 (32) Net (charge-offs)/recoveries: Charge-offs (2) — — — — — (2) Recoveries — — — — — — — Net (charge-offs)/recoveries (2) — — — — — (2) Foreign exchange translation adjustment — 1 — — — — 1 Balance at end of period $ 203 $ 74 $ 36 $ 2 $ 26 $ 4 $ 345 Six months ended March 31, 2021 Balance at beginning of period $ 200 $ 81 $ 36 $ 14 $ 18 $ 5 $ 354 Impact of CECL adoption 19 (11) (9) (12) 24 (2) 9 Provision/(benefit) for credit losses (15) 3 9 — (16) 1 (18) Net (charge-offs)/recoveries: Charge-offs (2) — — — — — (2) Recoveries — — — — — — — Net (charge-offs)/recoveries (2) — — — — — (2) Foreign exchange translation adjustment 1 1 — — — — 2 Balance at end of period $ 203 $ 74 $ 36 $ 2 $ 26 $ 4 $ 345 Three months ended March 31, 2020 Balance at beginning of period $ 139 $ 36 $ 12 $ 8 $ 17 $ 4 $ 216 Provision/(benefit) for credit losses 58 18 26 3 1 3 109 Net (charge-offs)/recoveries: Charge-offs — — — — — — — Recoveries — — — — — — — Net (charge-offs)/recoveries — — — — — — — Foreign exchange translation adjustment (1) — — — — — (1) Balance at end of period $ 196 $ 54 $ 38 $ 11 $ 18 $ 7 $ 324 Six months ended March 31, 2020 Balance at beginning of period $ 139 $ 34 $ 15 $ 9 $ 16 $ 5 $ 218 Provision/(benefit) for credit losses 58 20 23 2 2 2 $ 107 Net (charge-offs)/recoveries: Charge-offs — — — — — — $ — Recoveries — — — — — — $ — Net (charge-offs)/recoveries — — — — — — — Foreign exchange translation adjustment (1) — — — — — (1) Balance at end of period $ 196 $ 54 $ 38 $ 11 $ 18 $ 7 $ 324 The allowance for credit losses on held for investment bank loans decreased $33 million to $345 million during the three months ended March 31, 2021, primarily due to changes in macroeconomic inputs to our CECL model during the quarter, including an improved outlook for the commercial real estate and residential mortgage bank loan portfolios, partially offset by the impact of weakened equity market forecasts on the C&I and REIT loan portfolios and an increase in criticized loans. The allowance for credit losses decreased $18 million to $345 million since the adoption of CECL on October 1, 2020, largely attributable to changes in inputs to our CECL model since our October 1, 2020 adoption date, reflecting improvements in certain forecasted macroeconomic inputs, including unemployment and gross domestic product, partially offset by forecasted declines in commercial real estate values since our CECL adoption date, as well as an increase in criticized loans. The allowance for credit losses on unfunded lending commitments, which is included in “Other payables” on our Condensed Consolidated Statements of Financial Condition, was $17 million, $20 million and $12 million at March 31, 2021, December 31, 2020 and September 30, 2020, respectively. The decrease in the allowance for credit losses on unfunded lending commitments during the three months ended March 31, 2021 was primarily due to an improved outlook for commercial real estate compared with December 31, 2020. The increase in the allowance for credit losses on unfunded lending commitments as of March 31, 2021 compared with September 30, 2020 was predominantly due to the adoption impact of CECL. See Note 2 for further information about the adoption of CECL and the impact to the allowance for credit losses. Loans to financial advisors are primarily comprised of loans originated as a part of our recruiting activities. See Note 2 for a discussion of our accounting policies related to loans to financial advisors and the related allowance for credit losses. The following table presents the balances for our loans to financial advisors and the related accrued interest receivable. $ in millions March 31, 2021 September 30, 2020 Currently affiliated with the firm (1) $ 1,006 $ 1,001 No longer affiliated with the firm (2) 10 15 Total loans to financial advisors 1,016 1,016 Allowance for credit losses (28) (4) Loans to financial advisors, net $ 988 $ 1,012 Accrued interest receivable on loans to financial advisors $ 4 $ 4 (1) These loans were predominately current. (2) These loans were predominately past due for a period of 180 days or more and on nonaccrual status. The allowance for credit losses as of March 31, 2021 was determined using the CECL methodology, which we adopted on October 1, 2020. Prior periods calculated under the incurred loss methodology have not been restated. The increase in the allowance from September 30, 2020 to March 31, 2021 was primarily due to the October 1, 2020 CECL adoption, which resulted in an increase in our allowance for credit losses of $25 million. See Note 2 for further information on the CECL adoption. Accrued interest receivables presented in the preceding table are reported in “Other receivables, net” on the Condensed Consolidated Statements of Financial Condition. |
LOANS TO FINANCIAL ADVISORS, NE
LOANS TO FINANCIAL ADVISORS, NET | 6 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
LOANS TO FINANCIAL ADVISORS, NET | BANK LOANS, NET Bank client receivables are comprised of loans originated or purchased by RJ Bank, N.A. and include C&I loans, REIT loans, tax-exempt loans, commercial and residential real estate loans, and SBL and other loans. These receivables are collateralized by first and, to a lesser extent, second mortgages on residential or other real property, other assets of the borrower, a pledge of revenue, securities or are unsecured. See Note 2 of our 2020 Form 10-K for a discussion of accounting policies related to bank loans. As of October 1, 2020, we adopted new accounting guidance related to the measurement of credit losses on financial instruments. See Note 2 for further information about this guidance and a discussion of our accounting policies related to our allowance for credit losses. We segregate our loan portfolio into six loan portfolio segments: C&I, CRE, REIT, tax-exempt, residential mortgage, and SBL and other. Upon adoption, we redefined certain of our portfolio segments to align with the new methodology applied in determining the allowance for credit losses. Prior-period loan portfolio segment balances have been revised to conform to the current presentation. Loan balances in the following tables are presented at amortized cost (outstanding principal balance net of unearned income and deferred expenses, which include purchase premiums, purchase discounts and net deferred origination fees and costs), except for certain held for sale loans recorded at fair value. Bank loans are presented on our Condensed Consolidated Statements of Financial Condition at amortized cost (or fair value where applicable) less the allowance for credit losses. The following table presents the balances for both the held for sale and held for investment loan portfolios, as well as the associated percentage of each portfolio segment in RJ Bank’s total loan portfolio. March 31, 2021 September 30, 2020 $ in millions Balance % Balance % C&I loans $ 7,816 34 % $ 7,421 34 % CRE loans 2,710 12 % 2,489 12 % REIT loans 1,380 6 % 1,210 5 % Tax-exempt loans 1,223 5 % 1,259 6 % Residential mortgage loans 5,001 21 % 4,973 23 % SBL and other 4,891 21 % 4,087 19 % Total loans held for investment 23,021 99 % 21,439 99 % Held for sale loans 203 1 % 110 1 % Total loans held for sale and investment 23,224 100 % 21,549 100 % Allowance for credit losses (345) (354) Bank loans, net $ 22,879 $ 21,195 Accrued interest receivable on bank loans $ 46 $ 45 The allowance for credit losses as of March 31, 2021 was determined using the new methodology under CECL, which was adopted on October 1, 2020. Prior periods have not been restated and were calculated under the incurred loss methodology. Accrued interest receivables presented in the preceding table are reported in “Other receivables, net” on our Condensed Consolidated Statements of Financial Condition. At March 31, 2021, the FHLB had a blanket lien on RJ Bank’s residential mortgage loan portfolio as security for the repayment of certain borrowings. See Note 14 of our 2020 Form 10-K for more information regarding borrowings from the FHLB. Held for sale loans RJ Bank originated or purchased $528 million and $1.11 billion of loans held for sale during the three and six months ended March 31, 2021, respectively, and $443 million and $1.15 billion during the three and six months ended March 31, 2020, respectively. Proceeds from the sale of these held for sale loans amounted to $207 million and $395 million during the three and six months ended March 31, 2021, respectively, and $220 million and $434 million during the three and six months ended March 31, 2020, respectively. Net gains resulting from such sales were insignificant in all periods during the three and six months ended March 31, 2021 and 2020. Purchases and sales of loans held for investment The following table presents purchases and sales of any loans held for investment by portfolio segment. $ in millions C&I loans CRE loans Residential mortgage loans Total Three months ended March 31, 2021 Purchases $ 538 $ — $ 114 $ 652 Sales $ 95 $ — $ — $ 95 Six months ended March 31, 2021 Purchases $ 660 $ — $ 160 $ 820 Sales $ 100 $ — $ — $ 100 Three months ended March 31, 2020 Purchases $ 296 $ 5 $ 100 $ 401 Sales $ — $ — $ — $ — Six months ended March 31, 2020 Purchases $ 396 $ 5 $ 258 $ 659 Sales $ 20 $ — $ — $ 20 Sales in the preceding table represent the recorded investment (i.e., net of charge-offs and discounts or premiums) of loans held for investment that were transferred to loans held for sale and subsequently sold to a third party during the respective period. As more fully described in Note 2 of our 2020 Form 10-K, corporate loan sales generally occur as part of our credit management activities. Aging analysis of loans held for investment The following table presents information on delinquency status of our loans held for investment. $ in millions 30-89 days and accruing 90 days or more and accruing Total past due and accruing Nonaccrual with allowance Nonaccrual with no allowance Current and accruing Total loans held for investment March 31, 2021 C&I loans $ — $ — $ — $ — $ — $ 7,816 $ 7,816 CRE loans — — — — 13 2,697 2,710 REIT loans — — — — — 1,380 1,380 Tax-exempt loans — — — — — 1,223 1,223 Residential mortgage loans 1 — 1 14 4 4,982 5,001 SBL and other — — — — — 4,891 4,891 Total loans held for investment $ 1 $ — $ 1 $ 14 $ 17 $ 22,989 $ 23,021 September 30, 2020 C&I loans $ — $ — $ — $ 2 $ — $ 7,419 $ 7,421 CRE loans — — — — 14 2,475 2,489 REIT loans — — — — — 1,210 1,210 Tax-exempt loans — — — — — 1,259 1,259 Residential mortgage loans — — — 3 11 4,959 4,973 SBL and other — — — — — 4,087 4,087 Total loans held for investment $ — $ — $ — $ 5 $ 25 $ 21,409 $ 21,439 The preceding table includes $15 million at both March 31, 2021 and September 30, 2020 of nonaccrual loans which were current pursuant to their contractual terms. The table also includes CRE and residential first mortgage loan TDRs of $13 million and $14 million, respectively, at March 31, 2021 and $6 million and $15 million, respectively, at September 30, 2020. Other real estate owned, included in “Other assets” on our Condensed Consolidated Statements of Financial Condition, was insignificant at both March 31, 2021 and September 30, 2020. Collateral-dependent loans A loan is considered collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the sale of the underlying collateral. At March 31, 2021, we had $13 million of collateral-dependent CRE loans, which were fully collateralized by retail and industrial real estate, and $6 million of collateral-dependent residential loans, which were fully collateralized by single family homes. Collateral-dependent loans do not include loans to borrowers who have been granted forbearance as result of the COVID-19 pandemic or loans for which the borrower had requested a loan modification, where the request had been initiated but had not been approved or completed as of the end of the quarter. Such loans may be considered collateral-dependent after the forbearance period expires. The recorded investment in mortgage loans secured by one-to-four family residential properties for which formal foreclosure proceedings were in process was $6 million at both March 31, 2021 and September 30, 2020. Credit quality indicators The credit quality of RJ Bank’s loan portfolio is summarized monthly by management using internal risk ratings, which align with the standard asset classification system utilized by bank regulators. These classifications are divided into three groups: Not Classified (Pass), Special Mention, and Classified or Adverse Rating (Substandard, Doubtful and Loss). These terms are defined as follows: Pass – Loans which are well protected by the current net worth and paying capacity of the obligor (or guarantors, if any) or by the fair value, less costs to acquire and sell, of any underlying collateral in a timely manner. Special Mention – Loans which have potential weaknesses that deserve management’s close attention. These loans are not adversely classified and do not expose RJ Bank to sufficient risk to warrant an adverse classification. Substandard – Loans which are inadequately protected by the current sound worth and paying capacity of the obligor or by the collateral pledged, if any. Loans with this classification are characterized by the distinct possibility that RJ Bank will sustain some loss if the deficiencies are not corrected. Doubtful – Loans which have all the weaknesses inherent in loans classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full highly questionable and improbable on the basis of currently-known facts, conditions and values. Loss – Loans which are considered by management to be uncollectible and of such little value that their continuance on RJ Bank’s books as an asset, without establishment of a specific valuation allowance or charge-off, is not warranted. RJ Bank does not have any loan balances within this classification because, in accordance with our accounting policy, loans, or a portion thereof considered to be uncollectible are charged-off prior to the assignment of this classification. The following tables present RJ Bank’s held for investment loan portfolio by year of origination and credit quality indicator as of March 31, 2021. $ in millions 2021 2020 2019 2018 2017 Prior Revolving loans Total C&I loans Risk rating: Pass $ 312 $ 1,259 $ 1,206 $ 1,404 $ 1,043 $ 1,590 $ 649 $ 7,463 Special mention — — 43 103 — 54 2 202 Substandard — — 39 84 — 28 — 151 Doubtful — — — — — — — — Total C&I loans $ 312 $ 1,259 $ 1,288 $ 1,591 $ 1,043 $ 1,672 $ 651 $ 7,816 CRE loans Risk rating: Pass $ 194 $ 435 $ 572 $ 645 $ 226 $ 209 $ 61 $ 2,342 Special mention — 45 86 49 — — — 180 Substandard — — 32 86 8 62 — 188 Doubtful — — — — — — — — Total CRE loans $ 194 $ 480 $ 690 $ 780 $ 234 $ 271 $ 61 $ 2,710 REIT loans Risk rating: Pass $ 171 $ 123 $ 115 $ 87 $ 50 $ 220 $ 364 $ 1,130 Special mention — — 28 11 39 124 21 223 Substandard — — 21 — 4 — 2 27 Doubtful — — — — — — — — Total REIT loans $ 171 $ 123 $ 164 $ 98 $ 93 $ 344 $ 387 $ 1,380 Tax-exempt loans Risk rating: Pass $ 9 $ 59 $ 123 $ 209 $ 276 $ 547 $ — $ 1,223 Special mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total tax-exempt loans $ 9 $ 59 $ 123 $ 209 $ 276 $ 547 $ — $ 1,223 Residential mortgage loans Risk rating: Pass $ 836 $ 1,459 $ 788 $ 499 $ 556 $ 815 $ 18 $ 4,971 Special mention — — — — — 5 — 5 Substandard — — — 1 2 22 — 25 Doubtful — — — — — — — — Total residential mortgage loans $ 836 $ 1,459 $ 788 $ 500 $ 558 $ 842 $ 18 $ 5,001 SBL and other Risk rating: Pass $ 6 $ 45 $ 12 $ — $ — $ — $ 4,828 $ 4,891 Special mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total SBL and other $ 6 $ 45 $ 12 $ — $ — $ — $ 4,828 $ 4,891 Loans classified as special mention, substandard or doubtful are all considered to be “criticized” loans. RJ Bank also monitors the credit quality of the residential mortgage loan portfolio utilizing FICO scores and LTV ratios. A FICO score measures a borrower’s creditworthiness by considering factors such as payment and credit history. LTV measures the carrying value of the loan as a percentage of the value of the property securing the loan. The following table presents the held for investment residential mortgage loan portfolio by FICO score and by LTV ratio at origination. $ in millions March 31, 2021 September 30, 2020 FICO score: Below 600 $ 67 $ 67 600 - 699 398 363 700 - 799 3,496 3,463 800 + 1,035 1,076 FICO score not available 5 4 Total $ 5,001 $ 4,973 LTV ratio: Below 80% $ 3,901 $ 3,852 80%+ 1,100 1,121 Total $ 5,001 $ 4,973 Allowance for credit losses The following table presents changes in the allowance for credit losses on held for investment bank loans by portfolio segment. $ in millions C&I loans CRE loans REIT loans Tax-exempt loans Residential mortgage loans SBL and other Total Three months ended March 31, 2021 Balance at beginning of period $ 198 $ 112 $ 30 $ 2 $ 33 $ 3 $ 378 Provision/(benefit) for credit losses 7 (39) 6 — (7) 1 (32) Net (charge-offs)/recoveries: Charge-offs (2) — — — — — (2) Recoveries — — — — — — — Net (charge-offs)/recoveries (2) — — — — — (2) Foreign exchange translation adjustment — 1 — — — — 1 Balance at end of period $ 203 $ 74 $ 36 $ 2 $ 26 $ 4 $ 345 Six months ended March 31, 2021 Balance at beginning of period $ 200 $ 81 $ 36 $ 14 $ 18 $ 5 $ 354 Impact of CECL adoption 19 (11) (9) (12) 24 (2) 9 Provision/(benefit) for credit losses (15) 3 9 — (16) 1 (18) Net (charge-offs)/recoveries: Charge-offs (2) — — — — — (2) Recoveries — — — — — — — Net (charge-offs)/recoveries (2) — — — — — (2) Foreign exchange translation adjustment 1 1 — — — — 2 Balance at end of period $ 203 $ 74 $ 36 $ 2 $ 26 $ 4 $ 345 Three months ended March 31, 2020 Balance at beginning of period $ 139 $ 36 $ 12 $ 8 $ 17 $ 4 $ 216 Provision/(benefit) for credit losses 58 18 26 3 1 3 109 Net (charge-offs)/recoveries: Charge-offs — — — — — — — Recoveries — — — — — — — Net (charge-offs)/recoveries — — — — — — — Foreign exchange translation adjustment (1) — — — — — (1) Balance at end of period $ 196 $ 54 $ 38 $ 11 $ 18 $ 7 $ 324 Six months ended March 31, 2020 Balance at beginning of period $ 139 $ 34 $ 15 $ 9 $ 16 $ 5 $ 218 Provision/(benefit) for credit losses 58 20 23 2 2 2 $ 107 Net (charge-offs)/recoveries: Charge-offs — — — — — — $ — Recoveries — — — — — — $ — Net (charge-offs)/recoveries — — — — — — — Foreign exchange translation adjustment (1) — — — — — (1) Balance at end of period $ 196 $ 54 $ 38 $ 11 $ 18 $ 7 $ 324 The allowance for credit losses on held for investment bank loans decreased $33 million to $345 million during the three months ended March 31, 2021, primarily due to changes in macroeconomic inputs to our CECL model during the quarter, including an improved outlook for the commercial real estate and residential mortgage bank loan portfolios, partially offset by the impact of weakened equity market forecasts on the C&I and REIT loan portfolios and an increase in criticized loans. The allowance for credit losses decreased $18 million to $345 million since the adoption of CECL on October 1, 2020, largely attributable to changes in inputs to our CECL model since our October 1, 2020 adoption date, reflecting improvements in certain forecasted macroeconomic inputs, including unemployment and gross domestic product, partially offset by forecasted declines in commercial real estate values since our CECL adoption date, as well as an increase in criticized loans. The allowance for credit losses on unfunded lending commitments, which is included in “Other payables” on our Condensed Consolidated Statements of Financial Condition, was $17 million, $20 million and $12 million at March 31, 2021, December 31, 2020 and September 30, 2020, respectively. The decrease in the allowance for credit losses on unfunded lending commitments during the three months ended March 31, 2021 was primarily due to an improved outlook for commercial real estate compared with December 31, 2020. The increase in the allowance for credit losses on unfunded lending commitments as of March 31, 2021 compared with September 30, 2020 was predominantly due to the adoption impact of CECL. See Note 2 for further information about the adoption of CECL and the impact to the allowance for credit losses. Loans to financial advisors are primarily comprised of loans originated as a part of our recruiting activities. See Note 2 for a discussion of our accounting policies related to loans to financial advisors and the related allowance for credit losses. The following table presents the balances for our loans to financial advisors and the related accrued interest receivable. $ in millions March 31, 2021 September 30, 2020 Currently affiliated with the firm (1) $ 1,006 $ 1,001 No longer affiliated with the firm (2) 10 15 Total loans to financial advisors 1,016 1,016 Allowance for credit losses (28) (4) Loans to financial advisors, net $ 988 $ 1,012 Accrued interest receivable on loans to financial advisors $ 4 $ 4 (1) These loans were predominately current. (2) These loans were predominately past due for a period of 180 days or more and on nonaccrual status. The allowance for credit losses as of March 31, 2021 was determined using the CECL methodology, which we adopted on October 1, 2020. Prior periods calculated under the incurred loss methodology have not been restated. The increase in the allowance from September 30, 2020 to March 31, 2021 was primarily due to the October 1, 2020 CECL adoption, which resulted in an increase in our allowance for credit losses of $25 million. See Note 2 for further information on the CECL adoption. Accrued interest receivables presented in the preceding table are reported in “Other receivables, net” on the Condensed Consolidated Statements of Financial Condition. |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 6 Months Ended |
Mar. 31, 2021 | |
Variable Interest Entities [Abstract] | |
VARIABLE INTEREST ENTITIES | VARIABLE INTEREST ENTITIES A VIE requires consolidation by the entity’s primary beneficiary. We evaluate all of the entities in which we are involved to determine if the entity is a VIE and if so, whether we hold a variable interest and are the primary beneficiary. Refer to Note 2 of our 2020 Form 10-K for a discussion of our principal involvement with VIEs and the accounting policies regarding determination of whether we are deemed to be the primary beneficiary of VIEs. VIEs where we are the primary beneficiary Of the VIEs in which we hold an interest, we have determined that certain limited partnerships which are part of our private equity portfolio (“Private Equity Interests”), certain Low-Income Housing Tax Credit (“LIHTC”) funds and the trust we utilize in connection with restricted stock unit (“RSU”) awards granted to certain employees of one of our Canadian subsidiaries (the “Restricted Stock Trust Fund”) require consolidation in our financial statements, as we are deemed the primary beneficiary of such VIEs. The aggregate assets and liabilities of the VIEs we consolidate are provided in the following table. Aggregate assets and aggregate liabilities may differ from the consolidated carrying value of assets and liabilities due to the elimination of intercompany assets and liabilities held by the consolidated VIE. $ in millions Aggregate assets Aggregate liabilities March 31, 2021 Private Equity Interests $ 48 $ 4 LIHTC funds 68 6 Restricted Stock Trust Fund 21 21 Total $ 137 $ 31 September 30, 2020 Private Equity Interests $ 39 $ 4 LIHTC funds 168 76 Restricted Stock Trust Fund 14 14 Total $ 221 $ 94 The following table presents information about the carrying value of the assets and liabilities of the VIEs which we consolidate and which are included on our Condensed Consolidated Statements of Financial Condition. Intercompany balances are eliminated in consolidation and not reflected in the following table. $ in millions March 31, 2021 September 30, 2020 Assets: Cash and cash equivalents and assets segregated pursuant to regulations $ 11 $ 9 Other investments 46 37 Other assets 59 164 Total assets $ 116 $ 210 Liabilities: Other payables $ 3 $ 76 Total liabilities $ 3 $ 76 Noncontrolling interests $ 42 $ 62 VIEs where we hold a variable interest but are not the primary beneficiary As discussed in Note 2 of our 2020 Form 10-K, we have concluded that for certain VIEs we are not the primary beneficiary and therefore do not consolidate these VIEs. Such VIEs include certain Private Equity Interests, certain LIHTC funds, and other limited partnerships. Our risk of loss for these VIEs is limited to our investments in, advances to, and/or receivables due from these VIEs. Aggregate assets, liabilities and risk of loss The aggregate assets, liabilities, and our exposure to loss from those VIEs in which we hold a variable interest, but as to which we have concluded we are not the primary beneficiary, are provided in the following table. March 31, 2021 September 30, 2020 $ in millions Aggregate Aggregate Our risk Aggregate Aggregate Our risk Private Equity Interests $ 7,416 $ 167 $ 77 $ 7,738 $ 96 $ 67 LIHTC funds 7,151 2,178 28 6,516 1,993 66 Other 357 146 9 227 136 6 Total $ 14,924 $ 2,491 $ 114 $ 14,481 $ 2,225 $ 139 |
GOODWILL AND IDENTIFIABLE INTAN
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS, NET | 6 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS, NET | GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS, NET Our goodwill and identifiable intangible assets result from various acquisitions. During the six months ended March 31, 2021, we acquired NWPS and Financo which resulted in goodwill and identifiable intangible assets. See Note 3 for additional information on these acquisitions and the related goodwill and identifiable intangible assets. See Notes 2 and 10 of our 2020 Form 10-K for additional information about our goodwill and intangible assets, including the related accounting policies. We perform goodwill and indefinite-lived intangible asset impairment testing on an annual basis or when an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value or indicate that the asset is impaired. We performed our latest annual impairment testing for our goodwill and indefinite-lived intangible asset as of January 1, 2021, our annual evaluation date, evaluating balances as of December 31, 2020. In this annual evaluation, we performed a qualitative impairment assessment for each of our reporting units that had goodwill, as well as for our indefinite-lived intangible asset. Our qualitative assessments consider macroeconomic indicators, such as trends in equity and fixed income markets, gross domestic product, unemployment rates, interest rates, and housing markets. We also consider regulatory changes, reporting unit specific results, and changes in key personnel and strategy. Changes in these indicators, and our ability to respond to such changes, may trigger the need for impairment testing at a point other than our annual assessment date. Based upon the outcome of these qualitative assessments, no impairment was identified. No events have occurred since such assessments that would cause us to update this impairment testing. |
LEASES
LEASES | 6 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
LEASES | LEASES The following table presents the balances related to our leases on our Condensed Consolidated Statements of Financial Condition. The weighted-average remaining lease term and discount-rate for our leases was 5.7 years and 3.80%, respectively, as of March 31, 2021. See Note 2 of our 2020 Form 10-K for a discussion of our accounting policies related to leases. $ in millions March 31, 2021 September 30, 2020 ROU assets (included in Other assets) $ 348 $ 321 Lease liabilities (included in Other payables) $ 376 $ 345 Lease expense The following table details the components of lease expense, which is included in “Occupancy and equipment” expense on our Condensed Consolidated Statements of Income and Comprehensive Income. Lease expense is recognized on a straight-line basis over the lease term if the ROU asset has not been impaired or abandoned. Three months ended March 31, Six months ended March 31, $ in millions 2021 2020 2021 2020 Lease costs $ 27 23 $ 54 46 Variable lease costs $ 7 4 $ 13 12 Variable lease costs in the preceding table include payments for common area maintenance charges and other variable costs that are not reflected in the measurement of ROU assets and lease liabilities. Lease liabilities The maturities by fiscal year of our lease liabilities as of March 31, 2021 are presented in the following table. $ in millions Remainder of 2021 $ 47 2022 96 2023 77 2024 58 2025 43 Thereafter 102 Gross lease payments 423 Less: interest (47) Present value of lease liabilities $ 376 Lease payments in the preceding table exclude $123 million of legally binding minimum lease payments for leases signed but not yet commenced. These leases are estimated to commence between fiscal year 2021 and 2022 with lease terms ranging from one year to 11 years. |
BANK DEPOSITS
BANK DEPOSITS | 6 Months Ended |
Mar. 31, 2021 | |
Deposits [Abstract] | |
BANK DEPOSITS | BANK DEPOSITS Bank deposits include savings and money market accounts, certificates of deposit with RJ Bank, N.A., Negotiable Order of Withdrawal (“NOW”) accounts and demand deposits. The following table presents a summary of bank deposits, as well as the weighted-average interest rates on such deposits. The calculation of the weighted-average rates were based on the actual deposit balances and rates at each respective period end. March 31, 2021 September 30, 2020 $ in millions Balance Weighted-average rate Balance Weighted-average rate Savings and money market accounts $ 28,180 0.01 % $ 25,604 0.01 % Certificates of deposit 889 1.91 % 1,017 1.94 % NOW accounts 163 1.84 % 156 1.92 % Demand deposits (non-interest-bearing) 22 — 24 — Total bank deposits $ 29,254 0.08 % $ 26,801 0.09 % Total bank deposits in the preceding table exclude affiliate deposits of $185 million at both March 31, 2021 and September 30, 2020, all of which were held in a deposit account at RJ Bank, N.A. on behalf of RJF. Savings and money market accounts in the preceding table consist primarily of deposits that are cash balances swept to RJ Bank, N.A. from the client investment accounts maintained at Raymond James & Associates, Inc. (“RJ&A”). These balances are held in Federal Deposit Insurance Corporation (“FDIC”)-insured bank accounts through the Raymond James Bank Deposit Program (“RJBDP”). The aggregate amount of individual time deposit account balances that exceeded the FDIC insurance limit at March 31, 2021 was approximately $23 million. The following table sets forth the scheduled maturities of certificates of deposit. March 31, 2021 September 30, 2020 $ in millions Denominations Denominations Denominations Denominations Three months or less $ 31 $ 14 $ 59 $ 76 Over three through six months 12 21 26 18 Over six through twelve months 25 159 19 26 Over one through two years 58 161 43 206 Over two through three years 67 171 67 170 Over three through four years 7 150 37 165 Over four through five years 9 4 7 98 Total certificates of deposit $ 209 $ 680 $ 258 $ 759 Interest expense on deposits, excluding interest expense related to affiliate deposits, is summarized in the following table. Three months ended March 31, Six months ended March 31, $ in millions 2021 2020 2021 2020 Savings, money market, and NOW accounts $ 2 $ 6 $ 3 $ 18 Certificates of deposit 4 6 9 10 Total interest expense on deposits $ 6 $ 12 $ 12 $ 28 |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The income tax provision for interim periods is comprised of tax on ordinary income provided at the most recent estimated annual effective tax rate, adjusted for the tax effect of discrete items. We estimate the annual effective tax rate quarterly based on the forecasted pre-tax results of our U.S. and non-U.S. operations. Items unrelated to current year ordinary income are recognized entirely in the period identified as a discrete item of tax. These discrete items generally relate to changes in tax laws, adjustments to the actual liability determined upon filing tax returns, excess tax benefits related to share-based compensation and adjustments to previously recorded reserves for uncertain tax positions. For discussion of income tax accounting policies and other income tax related information, see Notes 2 and 16 of our 2020 Form 10-K. Effective tax rate Our effective income tax rate was 21.2% for the six months ended March 31, 2021, which was lower than the 22.2% effective tax rate for fiscal year 2020. The decrease in the effective income tax rate was primarily due to an increase in valuation gains associated with our company-owned life insurance policies which are not subject to tax. Uncertain tax positions |
COMMITMENTS, CONTINGENCIES AND
COMMITMENTS, CONTINGENCIES AND GUARANTEES | 6 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS, CONTINGENCIES AND GUARANTEES | COMMITMENTS, CONTINGENCIES AND GUARANTEES Commitments and contingencies Underwriting commitments In the normal course of business, we enter into commitments for debt and equity underwritings. As of March 31, 2021, we had five such open underwriting commitments, which were subsequently settled in open market transactions and did not result in significant losses. Lending commitments and other credit-related financial instruments RJ Bank has outstanding, at any time, a significant number of commitments to extend credit and other credit-related off-balance sheet financial instruments, such as standby letters of credit and loan purchases, which then extend over varying periods of time. These arrangements are subject to strict underwriting assessments and each customer’s credit worthiness is evaluated on a case-by-case basis. Fixed-rate commitments are subject to market risk resulting from fluctuations in interest rates and our exposure is limited to the replacement value of those commitments. The following table presents RJ Bank’s commitments to extend credit and other credit-related off-balance sheet financial instruments outstanding. $ in millions March 31, 2021 September 30, 2020 Open-end consumer lines of credit (primarily SBL) $ 14,300 $ 12,148 Commercial lines of credit $ 1,740 $ 1,482 Unfunded loan commitments $ 532 $ 532 Standby letters of credit $ 27 $ 33 Open-end consumer lines of credit primarily represent the unfunded amounts of RJ Bank loans to consumers that are secured by marketable securities at advance rates consistent with industry standards. The proceeds from repayment or, if necessary, the liquidation of collateral, which is monitored daily, are expected to satisfy the amounts drawn against these existing lines of credit. These lines of credit are primarily uncommitted, as we reserve the right to not make any advances or may terminate these lines at any time. Because many of RJ Bank’s lending commitments expire without being funded in whole or in part, the contractual amounts are not estimates of our actual future credit exposure or future liquidity requirements. The allowance for credit losses calculated under CECL provides for potential losses related to the unfunded lending commitments. See Notes 2 and 8 for further discussion of this allowance for credit losses related to unfunded lending commitments. RJ&A enters into margin lending arrangements which allow customers to borrow against the value of qualifying securities. Margin loans are collateralized by the securities held in the customer’s account at RJ&A. Collateral levels and established credit terms are monitored daily and we require customers to deposit additional collateral or reduce balances as necessary. We offer loans to prospective financial advisors for recruiting and retention purposes (see Notes 2 and 9 for further discussion of our loans to financial advisors). These offers are contingent upon certain events occurring, including the individuals joining us and meeting certain conditions outlined in their offer. Investment commitments We had unfunded commitments to various investments, including private equity investments and certain RJ Bank investments, of $38 million as of March 31, 2021. Other commitments Raymond James Tax Credit Funds, Inc. (“RJTCF”) sells investments in project partnerships to various LIHTC funds, which have third-party investors, and for which RJTCF serves as the managing member or general partner. RJTCF typically sells investments in project partnerships to LIHTC funds within 90 days of their acquisition. Until such investments are sold to LIHTC funds, RJTCF is responsible for funding investment commitments to such partnerships. As of March 31, 2021, RJTCF had committed approximately $178 million to project partnerships that had not yet been sold to LIHTC funds. Because we expect to sell these project partnerships to LIHTC funds and the equity funding events arise over future periods, the contractual commitments are not expected to materially impact our future liquidity requirements. RJTCF may also make short-term loans or advances to project partnerships and LIHTC funds. As a part of our fixed income public finance operations, we enter into forward commitments to purchase agency MBS. See Note 2 of our 2020 Form 10-K for further discussion of these activities. At March 31, 2021, we had $263 million of principal amount of outstanding forward MBS purchase commitments, which were expected to be purchased within 90 days following commitment. In order to hedge the market interest rate risk to which we would otherwise be exposed between the date of the commitment and the date of sale of the MBS, we enter into TBA security contracts with investors for generic MBS at specific rates and prices to be delivered on settlement dates in the future. We may be subject to loss if the timing of, or the actual amount of, the MBS differs significantly from the term and notional amount of the TBA security contract to which we entered. These TBA securities and related purchase commitments are accounted for at fair value. As of March 31, 2021, the fair value of the TBA securities and the estimated fair value of the purchase commitments were insignificant. For information regarding our lease commitments, including the maturities of our lease liabilities, see Note 12. Guarantees Our U.S. broker-dealer subsidiaries are required by federal law to be members of the Securities Investors Protection Corporation (“SIPC”). The SIPC fund provides protection up to $500 thousand per client for securities and cash held in client accounts, including a limitation of $250 thousand on claims for cash balances. We have purchased excess SIPC coverage through various syndicates of Lloyd’s of London. For RJ&A, our clearing broker-dealer, the additional protection currently provided has an aggregate firm limit of $750 million for cash and securities, including a sub-limit of $1.9 million per client for cash above basic SIPC. Account protection applies when a SIPC member fails financially and is unable to meet its obligations to clients. This coverage does not protect against market fluctuations. RJF has provided an indemnity to Lloyd’s of London against any and all losses they may incur associated with the excess SIPC policies. We guarantee the debt of one of our private equity investments. The amount of such debt, including the undrawn portion of a revolving credit facility, was $13 million as of March 31, 2021. The debt, which matures in 2022, is secured by substantially all of the assets of the borrower. Legal and regulatory matter contingencies In the normal course of our business, we have been named, from time to time, as a defendant in various legal actions, including arbitrations, class actions and other litigation, arising in connection with our activities as a diversified financial services institution. RJF and certain of its subsidiaries are subject to regular reviews and inspections by regulatory authorities and self-regulatory organizations. Reviews can result in the imposition of sanctions for regulatory violations, ranging from non-monetary censures to fines and, in serious cases, temporary or permanent suspension from conducting business, or limitations on certain business activities. In addition, regulatory agencies and self-regulatory organizations institute investigations from time to time, among other things, into industry practices, which can also result in the imposition of such sanctions. We may contest liability and/or the amount of damages, as appropriate, in each pending matter. Over the last several years, the level of litigation and investigatory activity (both formal and informal) by government and self-regulatory agencies in the financial services industry continues to be significant. There can be no assurance that material losses will not be incurred from claims that have not yet been asserted or are not yet determined to be material. For many legal and regulatory matters, we are unable to estimate a range of reasonably possible loss as we cannot predict if, how or when such proceedings or investigations will be resolved or what the eventual settlement, fine, penalty or other relief, if any, may be. A large number of factors may contribute to this inherent unpredictability: the proceeding is in its early stages; the damages sought are unspecified, unsupported or uncertain; it is unclear whether a case brought as a class action will be allowed to proceed on that basis; the other party is seeking relief other than or in addition to compensatory damages (including, in the case of regulatory and governmental proceedings, potential fines and penalties); the matters present significant legal uncertainties; we have not engaged in settlement discussions; discovery is not complete; there are significant facts in dispute; and numerous parties are named as defendants (including where it is uncertain how liability might be shared among defendants). Subject to the foregoing, after consultation with counsel, we believe that the outcome of such litigation and regulatory proceedings will not have a material adverse effect on our consolidated financial condition. However, the outcome of such litigation and regulatory proceedings could be material to our operating results and cash flows for a particular future period, depending on, among other things, our revenues or income for such period. There are certain matters for which we are unable to estimate the upper end of the range of reasonably possible loss. With respect to legal and regulatory matters for which management has been able to estimate a range of reasonably possible loss as of March 31, 2021, we estimated the upper end of the range of reasonably possible aggregate loss to be approximately $180 million in excess of the aggregate accruals for such matters. Refer to Note 2 of our 2020 Form 10-K for a discussion of our criteria for recognizing liabilities for contingencies. |
SENIOR NOTES PAYABLE
SENIOR NOTES PAYABLE | 6 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Senior Notes Payable | SENIOR NOTES PAYABLE The following table summarizes our senior notes payable. $ in millions March 31, 2021 September 30, 2020 5.625% senior notes, due 2024 $ 250 $ 250 3.625% senior notes, due 2026 500 500 4.65% senior notes, due 2030 500 500 4.95% senior notes, due 2046 800 800 Total principal amount 2,050 2,050 Unaccreted premium/(discount) 9 10 Unamortized debt issuance costs (14) (15) Total senior notes payable $ 2,045 $ 2,045 In March 2012, we sold in a registered underwritten public offering $250 million in aggregate principal amount of 5.625% senior notes due April 2024. In July 2016, we sold in a registered underwritten public offering $500 million in aggregate principal amount of 3.625% senior notes due September 2026. Interest on these senior notes was payable semi-annually. In April and May 2021, we repurchased or redeemed, as applicable, all of the outstanding 5.625% senior notes due April 2024 and 3.625% senior notes due September 2026. See the discussion of the tender offers and redemptions of such senior notes described below. In March 2020, we sold in a registered underwritten public offering $500 million in aggregate principal amount of 4.65% senior notes due April 2030. Interest on these senior notes is payable semi-annually. We may redeem some or all of these senior notes at any time prior to January 1, 2030, at a redemption price equal to the greater of (i) 100% of the principal amount of the notes redeemed, or (ii) the sum of the present values of the remaining scheduled payments of principal and interest thereon, discounted to the redemption date at a discount rate equal to a designated U.S. Treasury rate, plus 50 basis points; and on or after January 1, 2030, at 100% of the principal amount of the notes redeemed; plus, in each case, accrued and unpaid interest thereon to the redemption date. In July 2016, we sold in a registered underwritten public offering $300 million in aggregate principal amount of 4.95% senior notes due July 2046. In May 2017, we reopened the offering and sold, in a registered underwritten public offering, an additional $500 million in aggregate principal amount of 4.95% senior notes due July 2046. These additional senior notes were consolidated, formed into a single series, and are fully fungible with the $300 million in aggregate principal amount of 4.95% senior notes issued in July 2016. Interest on these senior notes is payable semi-annually. We may redeem some or all of these senior notes at any time prior to their maturity, at a redemption price equal to the greater of (i) 100% of the principal amount of the notes redeemed, or (ii) the sum of the present values of the remaining scheduled payments of principal and interest thereon, discounted to the redemption date at a discount rate equal to a designated U.S. Treasury rate, plus 45 basis points, plus accrued and unpaid interest thereon to the redemption date. Senior notes offering In April 2021, we sold in a registered underwritten public offering $750 million in aggregate principal amount of 3.75% senior notes due April 2051. Interest on these senior notes is payable semi-annually. We may redeem some or all of these senior notes at any time prior to October 1, 2050, at a redemption price equal to the greater of (i) 100% of the principal amount of the notes redeemed, or (ii) the sum of the present values of the remaining scheduled payments of principal and interest thereon, discounted to the redemption date at a discount rate equal to a designated U.S. Treasury rate, plus 20 basis points; and on or after October 1, 2050, at 100% of the principal amount of the notes redeemed; plus, in each case, accrued and unpaid interest thereon to the redemption date. These senior notes will be reflected on our Condensed Consolidated Statement of Financial Condition beginning in our third fiscal quarter of 2021. Tender offers and redemptions of certain senior notes Concurrently with the launch of our offering of $750 million in aggregate principal amount of 3.75% senior notes due April 2051, we commenced cash tender offers (the “Tender Offers”) for any and all of our outstanding 5.625% senior notes due 2024 and 3.625% senior notes due 2026 (the “Existing Notes”), pursuant to which we repurchased an aggregate of $332 million outstanding Existing Notes for an aggregate purchase price of $373 million. The Tender Offers expired on April 14, 2021. In addition, on April 1, 2021, we issued notices of redemption to holders of the Existing Notes pursuant to the indentures governing such notes, to redeem any Existing Notes that remained outstanding following the closing of the Tender Offers. On May 3, 2021, we redeemed the remaining outstanding balance of the Existing Notes of $418 million for an aggregate redemption price of $473 million. These repurchases and redemptions were funded with the net proceeds from our offering of 3.75% senior notes due April 2051 and cash on hand and will result in a charge of approximately $97 million as a loss on extinguishment of debt, comprised of make-whole premiums and unamortized debt issuance costs, which will be included on our Condensed Consolidated Statement of Income and Comprehensive Income in our third fiscal quarter of 2021. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) | 6 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) | ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) All of the components of other comprehensive income (“OCI”), net of tax, were attributable to RJF. The following table presents the net change in AOCI as well as the changes, and the related tax effects, of each component of AOCI. $ in millions Net investment hedges Currency translations Subtotal: net investment hedges and currency translations Available- for-sale securities Cash flow hedges Total Three months ended March 31, 2021 AOCI as of beginning of period $ 86 $ (93) $ (7) $ 72 $ (48) $ 17 OCI: OCI before reclassifications and taxes (13) 12 (1) (102) 22 (81) Amounts reclassified from AOCI, before tax — — — — 4 4 Pre-tax net OCI (13) 12 (1) (102) 26 (77) Income tax effect 3 — 3 26 (7) 22 OCI for the period, net of tax (10) 12 2 (76) 19 (55) AOCI as of end of period $ 76 $ (81) $ (5) $ (4) $ (29) $ (38) Six months ended March 31, 2021 AOCI as of beginning of period $ 115 $ (140) $ (25) $ 89 $ (53) $ 11 OCI: OCI before reclassifications and taxes (51) 57 6 (120) 25 (89) Amounts reclassified from AOCI, before tax — 2 2 (5) 8 5 Pre-tax net OCI (51) 59 8 (125) 33 (84) Income tax effect 12 — 12 32 (9) 35 OCI for the period, net of tax (39) 59 20 (93) 24 (49) AOCI as of end of period $ 76 $ (81) $ (5) $ (4) $ (29) $ (38) Three months ended March 31, 2020 AOCI as of beginning of period $ 97 $ (113) $ (16) $ 20 $ (9) $ (5) OCI: OCI before reclassifications and taxes 69 (78) (9) 85 (58) 18 Amounts reclassified from AOCI, before tax — — — — — — Pre-tax net OCI 69 (78) (9) 85 (58) 18 Income tax effect (17) — (17) (22) 15 (24) OCI for the period, net of tax 52 (78) (26) 63 (43) (6) AOCI as of end of period $ 149 $ (191) $ (42) $ 83 $ (52) $ (11) Six months ended March 31, 2020 AOCI as of beginning of period $ 110 $ (135) $ (25) $ 21 $ (19) $ (23) OCI: OCI before reclassifications and taxes 52 (56) (4) 83 (44) 35 Amounts reclassified from AOCI, before tax — — — — — — Pre-tax net OCI 52 (56) (4) 83 (44) 35 Income tax effect (13) — (13) (21) 11 (23) OCI for the period, net of tax 39 (56) (17) 62 (33) 12 AOCI as of end of period $ 149 $ (191) $ (42) $ 83 $ (52) $ (11) Reclassifications from AOCI to net income, excluding taxes, for the three and six months ended March 31, 2021 were primarily recorded in “Other” revenue and “Interest expense” on the Condensed Consolidated Statements of Income and Comprehensive Income. Our net investment hedges and cash flow hedges relate to our derivatives associated with RJ Bank’s business operations. See Note 2 of our 2020 Form 10-K and Note 6 for additional information on these derivatives. |
REVENUES
REVENUES | 6 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
REVENUES | REVENUES The following tables present our sources of revenues by segment. For further information about our significant accounting policies related to revenue recognition, see Note 2 of our 2020 Form 10-K. See Note 23 of this Form 10-Q for additional information on our segment results. Three months ended March 31, 2021 $ in millions Private Client Group Capital Markets Asset Management RJ Bank Other and intersegment eliminations Total Revenues: Asset management and related administrative fees $ 979 $ — $ 201 $ — $ (7) $ 1,173 Brokerage revenues: Securities commissions: Mutual and other fund products 183 1 3 — (1) 186 Insurance and annuity products 109 — — — — 109 Equities, exchange-traded funds (“ETFs”) and fixed income products 108 40 — — — 148 Subtotal securities commissions 400 41 3 — (1) 443 Principal transactions (1) 13 135 — — — 148 Total brokerage revenues 413 176 3 — (1) 591 Account and services fees: Mutual fund and annuity service fees 99 — — — — 99 RJBDP fees 63 1 — — (45) 19 Client account and other fees 42 2 5 — (8) 41 Total account and service fees 204 3 5 — (53) 159 Investment banking: Merger & acquisition and advisory — 122 — — — 122 Equity underwriting 16 67 — — — 83 Debt underwriting — 37 — — — 37 Total investment banking 16 226 — — — 242 Other: Tax credit fund revenues — 24 — — — 24 All other (1) 8 1 — 5 6 20 Total other 8 25 — 5 6 44 Total non-interest revenues 1,620 430 209 5 (55) 2,209 Interest income (1) 30 5 — 165 — 200 Total revenues 1,650 435 209 170 (55) 2,409 Interest expense (3) (2) — (10) (22) (37) Net revenues $ 1,647 $ 433 $ 209 $ 160 $ (77) $ 2,372 (1) These revenues are generally not in scope of the accounting guidance for revenue from contracts with customers. Three months ended March 31, 2020 $ in millions Private Client Group Capital Markets Asset Management RJ Bank Other and intersegment eliminations Total Revenues: Asset management and related administrative fees $ 833 $ 1 $ 177 $ — $ (5) $ 1,006 Brokerage revenues: Securities commissions: Mutual and other fund products 163 1 2 — — 166 Insurance and annuity products 99 — — — — 99 Equities, ETFs and fixed income products 105 40 — — — 145 Subtotal securities commissions 367 41 2 — — 410 Principal transactions (1) 17 89 — — (1) 105 Total brokerage revenues 384 130 2 — (1) 515 Account and services fees: Mutual fund and annuity service fees 88 — — — — 88 RJBDP fees 99 — — — (48) 51 Client account and other fees 35 2 4 — (8) 33 Total account and service fees 222 2 4 — (56) 172 Investment banking: Merger & acquisition and advisory — 72 — — — 72 Equity underwriting 11 43 — — — 54 Debt underwriting — 22 — — — 22 Total investment banking 11 137 — — — 148 Other: Tax credit fund revenues — 12 — — — 12 All other (1) 7 4 1 5 (44) (27) Total other 7 16 1 5 (44) (15) Total non-interest revenues 1,457 286 184 5 (106) 1,826 Interest income (1) 45 10 — 223 7 285 Total revenues 1,502 296 184 228 (99) 2,111 Interest expense (7) (6) — (18) (12) (43) Net revenues $ 1,495 $ 290 $ 184 $ 210 $ (111) $ 2,068 (1) These revenues are generally not in scope of the accounting guidance for revenue from contracts with customers. Six months ended March 31, 2021 $ in millions Private Client Group Capital Markets Asset Management RJ Bank Other and intersegment eliminations Total Revenues: Asset management and related administrative fees $ 1,864 $ 2 $ 389 $ — $ (15) $ 2,240 Brokerage revenues: Securities commissions: Mutual and other fund products 331 3 5 — (2) 337 Insurance and annuity products 207 — — — — 207 Equities, ETFs and fixed income products 203 77 — — — 280 Subtotal securities commissions 741 80 5 — (2) 824 Principal transactions (1) 25 269 — 1 — 295 Total brokerage revenues 766 349 5 1 (2) 1,119 Account and services fees: Mutual fund and annuity service fees 193 — — — — 193 RJBDP fees 127 1 — — (88) 40 Client account and other fees 74 4 9 — (16) 71 Total account and service fees 394 5 9 — (104) 304 Investment banking: Merger & acquisition and advisory — 271 — — — 271 Equity underwriting 22 127 — — — 149 Debt underwriting — 83 — — — 83 Total investment banking 22 481 — — — 503 Other: Tax credit fund revenues — 40 — — — 40 All other (1) 13 4 1 14 28 60 Total other 13 44 1 14 28 100 Total non-interest revenues 3,059 881 404 15 (93) 4,266 Interest income (1) 60 8 — 333 2 403 Total revenues 3,119 889 404 348 (91) 4,669 Interest expense (5) (4) — (21) (45) (75) Net revenues $ 3,114 $ 885 $ 404 $ 327 $ (136) 4,594 (1) These revenues are generally not in scope of the accounting guidance for revenue from contracts with customers. Six months ended March 31, 2020 $ in millions Private Client Group Capital Markets Asset Management RJ Bank Other and intersegment eliminations Total Revenues: Asset management and related administrative fees $ 1,615 $ 3 $ 353 $ — $ (10) $ 1,961 Brokerage revenues: Securities commissions: Mutual and other fund products 307 4 4 — (1) 314 Insurance and annuity products 200 — — — — 200 Equities, ETFs and fixed income products 190 70 — — (1) 259 Subtotal securities commissions 697 74 4 — (2) 773 Principal transactions (1) 34 171 — — (3) 202 Total brokerage revenues 731 245 4 — (5) 975 Account and services fees: Mutual fund and annuity service fees 178 — 1 — (1) 178 RJBDP fees 204 — — — (95) 109 Client account and other fees 64 3 8 — (12) 63 Total account and service fees 446 3 9 — (108) 350 Investment banking: Merger & acquisition and advisory — 132 — — — 132 Equity underwriting 22 82 — — — 104 Debt underwriting — 53 — — — 53 Total investment banking 22 267 — — — 289 Other: Tax credit fund revenues — 30 — — — 30 All other (1) 16 4 1 11 (48) (16) Total other 16 34 1 11 (48) 14 Total non-interest revenues 2,830 552 367 11 (171) 3,589 Interest income (1) 94 18 1 454 15 582 Total revenues 2,924 570 368 465 (156) 4,171 Interest expense (15) (12) — (39) (28) (94) Net revenues $ 2,909 $ 558 $ 368 $ 426 $ (184) $ 4,077 (1) These revenues are generally not in scope of the accounting guidance for revenue from contracts with customers. At March 31, 2021 and September 30, 2020, net receivables related to contracts with customers were $357 million and $342 million, respectively. |
INTEREST INCOME AND INTEREST EX
INTEREST INCOME AND INTEREST EXPENSE | 6 Months Ended |
Mar. 31, 2021 | |
Interest Income (Expense), Net [Abstract] | |
INTEREST INCOME AND INTEREST EXPENSE | INTEREST INCOME AND INTEREST EXPENSE The following table details the components of interest income and interest expense. Three months ended March 31, Six months ended March 31, $ in millions 2021 2020 2021 2020 Interest income: Cash and cash equivalents $ 2 $ 16 $ 6 $ 33 Assets segregated pursuant to regulations 5 11 8 22 Available-for-sale securities 21 19 44 37 Brokerage client receivables 19 21 37 48 Bank loans, net of unearned income and deferred expenses 142 198 287 404 All other 11 20 21 38 Total interest income $ 200 $ 285 $ 403 $ 582 Interest expense: Bank deposits $ 6 $ 12 $ 12 $ 28 Brokerage client payables 1 3 2 6 Other borrowings 5 5 10 10 Senior notes payable 24 19 48 37 All other 1 4 3 13 Total interest expense 37 43 75 94 Net interest income 163 242 328 488 Bank loan (provision)/benefit for credit losses 32 (109) 18 (107) Net interest income after bank loan (provision)/benefit for credit losses $ 195 $ 133 $ 346 $ 381 Interest expense related to bank deposits in the preceding table excludes interest expense associated with affiliate deposits, which has been eliminated in consolidation. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 6 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION We have one share-based compensation plan for our employees, Board of Directors and independent contractor financial advisors. Generally, we reissue our treasury shares under The Amended and Restated 2012 Stock Incentive Plan; however, we are also permitted to issue new shares. Annual share-based compensation awards are primarily issued during the fiscal first quarter of each year. Our share-based compensation accounting policies are described in Note 2 of our 2020 Form 10-K. Other information related to our share-based awards is presented in Note 21 of our 2020 Form 10-K. During the three and six months ended March 31, 2021, we granted approximately 150 thousand and 1.5 million RSUs, respectively, to employees and outside members of our Board of Directors with a weighted-average grant-date fair value of $116.73 and $93.63, respectively. For the three and six months ended March 31, 2021, total compensation expense for RSUs granted to our employees and members of our Board of Directors was $30 million and $71 million, respectively, compared with $27 million and $67 million for the three and six months ended March 31, 2020, respectively. As of March 31, 2021, there were $231 million of total pre-tax compensation costs not yet recognized (net of estimated forfeitures) related to RSUs granted to employees and members of our Board of Directors, including those granted during the six months ended March 31, 2021. These costs are expected to be recognized over a weighted-average period of 3.2 years. |
REGULATORY CAPITAL REQUIREMENTS
REGULATORY CAPITAL REQUIREMENTS | 6 Months Ended |
Mar. 31, 2021 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
REGULATORY CAPITAL REQUIREMENTS | REGULATORY CAPITAL REQUIREMENTSRJF, as a bank holding company and financial holding company, RJ Bank, N.A., Raymond James Trust, N.A. (“RJ Trust”) and our broker-dealer subsidiaries are subject to capital requirements by various regulatory authorities. Capital levels of each entity are monitored to ensure compliance with our various regulatory capital requirements. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on our financial results. As a bank holding company, RJF is subject to the risk-based capital requirements of the Fed. These risk-based capital requirements are expressed as capital ratios that compare measures of regulatory capital to risk-weighted assets, which incorporates quantitative measures of our assets, liabilities, and certain off-balance sheet items as calculated under the applicable regulatory guidelines. RJF’s and RJ Bank, N.A.’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk-weightings, and other factors. RJF and RJ Bank, N.A. are required to maintain minimum amounts and ratios of Total and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined), Tier 1 capital to average assets (as defined), and under rules defined under the Basel III capital framework, Common equity Tier 1 capital (“CET1”) to risk-weighted assets. RJF and RJ Bank, N.A. each calculate these ratios under the Basel III standardized approach in order to assess compliance with both regulatory requirements and their internal capital policies. In order to maintain our ability to take certain capital actions, including dividends and common equity repurchases, and to make bonus payments, we must hold a capital conservation buffer above our minimum risk-based capital requirements. As of March 31, 2021, both RJF’s and RJ Bank, N.A.’s capital levels exceeded the capital conservation buffer requirement and were each categorized as “well-capitalized.” For further discussion of regulatory capital requirements applicable to certain of our businesses and subsidiaries, see Note 22 of our 2020 Form 10-K. To meet requirements for capital adequacy purposes or to be categorized as “well-capitalized,” RJF must maintain minimum CET1, Tier 1 capital, Total capital and Tier 1 leverage amounts and ratios as set forth in the following table. Actual Requirement for capital To be well-capitalized $ in millions Amount Ratio Amount Ratio Amount Ratio RJF as of March 31, 2021: CET1 $ 6,787 23.6 % $ 1,296 4.5 % $ 1,872 6.5 % Tier 1 capital $ 6,787 23.6 % $ 1,728 6.0 % $ 2,304 8.0 % Total capital $ 7,120 24.7 % $ 2,304 8.0 % $ 2,880 10.0 % Tier 1 leverage $ 6,787 12.2 % $ 2,218 4.0 % $ 2,773 5.0 % RJF as of September 30, 2020: CET1 $ 6,490 24.2 % $ 1,208 4.5 % $ 1,744 6.5 % Tier 1 capital $ 6,490 24.2 % $ 1,610 6.0 % $ 2,147 8.0 % Total capital $ 6,804 25.4 % $ 2,147 8.0 % $ 2,684 10.0 % Tier 1 leverage $ 6,490 14.2 % $ 1,824 4.0 % $ 2,280 5.0 % As of March 31, 2021 RJF’s Tier 1 and Total capital ratios declined compared to September 30, 2020, primarily resulting from an increase in risk-weighted assets, partially offset by an increase in equity due to positive earnings, net of dividends and share repurchases. The increase in risk-weighted assets was primarily driven by increases in our loan portfolio and market risk-equivalent assets. RJF’s Tier 1 leverage ratio at March 31, 2021 decreased compared to September 30, 2020 due to increased average assets, driven by higher assets segregated pursuant to regulations due to an increase in client cash in the Client Interest Program (“CIP”), as well as growth in available-for-sale securities and loans. Our regulatory capital ratios as of March 31, 2021 were also negatively impacted by the increase in goodwill and intangible assets arising from our acquisitions of NWPS and Financo. See Note 3 for additional information on our fiscal 2021 acquisitions. To meet the requirements for capital adequacy or to be categorized as “well-capitalized,” RJ Bank, N.A. must maintain CET1, Tier 1 capital, Total capital and Tier 1 leverage amounts and ratios as set forth in the following table. Actual Requirement for capital To be well-capitalized $ in millions Amount Ratio Amount Ratio Amount Ratio RJ Bank, N.A. as of March 31, 2021: CET1 $ 2,442 13.1 % $ 838 4.5 % $ 1,210 6.5 % Tier 1 capital $ 2,442 13.1 % $ 1,117 6.0 % $ 1,489 8.0 % Total capital $ 2,676 14.4 % $ 1,489 8.0 % $ 1,862 10.0 % Tier 1 leverage $ 2,442 7.5 % $ 1,296 4.0 % $ 1,620 5.0 % RJ Bank, N.A. as of September 30, 2020: CET1 $ 2,279 13.0 % $ 788 4.5 % $ 1,138 6.5 % Tier 1 capital $ 2,279 13.0 % $ 1,051 6.0 % $ 1,401 8.0 % Total capital $ 2,500 14.3 % $ 1,401 8.0 % $ 1,751 10.0 % Tier 1 leverage $ 2,279 7.7 % $ 1,183 4.0 % $ 1,479 5.0 % RJ Bank, N.A.’s Tier 1 capital and Total capital ratios at March 31, 2021 increased compared to September 30, 2020, due to positive earnings, partially offset by growth in loans and available-for-sale securities. RJ Bank, N.A.’s Tier 1 leverage ratio at March 31, 2021 decreased compared to September 30, 2020, due to increased average assets, driven by the growth in available-for-sale securities and loans. Certain of our broker-dealer subsidiaries are subject to the requirements of the Uniform Net Capital Rule (Rule 15c3-1) under the Securities Exchange Act of 1934. The following table presents the net capital position of RJ&A. $ in millions March 31, 2021 September 30, 2020 Raymond James & Associates, Inc. : (Alternative Method elected) Net capital as a percent of aggregate debit items 61.5 % 48.0 % Net capital $ 1,644 $ 1,245 Less: required net capital (53) (52) Excess net capital $ 1,591 $ 1,193 As of March 31, 2021, Raymond James Financial Services, Inc. (“RJFS”), Raymond James Ltd. (“RJ Ltd.”), RJ Trust and all of our other active regulated domestic and international subsidiaries were in compliance with and exceeded all applicable capital requirements. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The following table presents the computation of basic and diluted earnings per common share. Three months ended March 31, Six months ended March 31, in millions, except per share amounts 2021 2020 2021 2020 Income for basic earnings per common share: Net income $ 355 $ 169 $ 667 $ 437 Less allocation of earnings and dividends to participating securities — — (1) (1) Net income attributable to RJF common shareholders $ 355 $ 169 $ 666 $ 436 Income for diluted earnings per common share: Net income $ 355 $ 169 $ 667 $ 437 Less allocation of earnings and dividends to participating securities — — (1) (1) Net income attributable to RJF common shareholders $ 355 $ 169 $ 666 $ 436 Common shares: Average common shares in basic computation 137.8 138.4 137.3 138.4 Dilutive effect of outstanding stock options and certain RSUs 3.4 2.7 3.1 2.9 Average common shares used in diluted computation 141.2 141.1 140.4 141.3 Earnings per common share: Basic $ 2.58 $ 1.22 $ 4.85 $ 3.15 Diluted $ 2.51 $ 1.20 $ 4.74 $ 3.09 Stock options and certain RSUs excluded from weighted-average diluted common shares because their effect would be antidilutive 0.1 0.7 0.2 0.6 The allocation of earnings and dividends to participating securities in the preceding table represents dividends paid during the period to participating securities, consisting of certain RSUs, plus an allocation of undistributed earnings to such participating securities. Participating securities and related dividends paid on these participating securities were insignificant for the three and six months ended March 31, 2021 and 2020. Undistributed earnings are allocated to participating securities based upon their right to share in earnings if all earnings for the period had been distributed. Dividends per common share declared and paid are detailed in the following table for each respective period. Three months ended March 31, Six months ended March 31, 2021 2020 2021 2020 Dividends per common share - declared $ 0.39 $ 0.37 $ 0.78 $ 0.74 Dividends per common share - paid $ 0.39 $ 0.37 $ 0.76 $ 0.71 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION We currently operate through the following five segments: PCG; Capital Markets; Asset Management; RJ Bank; and Other. The segments are determined based upon factors such as the services provided and the distribution channels served and are consistent with how we assess performance and determine how to allocate our resources. For a further discussion of our segments, see Note 24 of our 2020 Form 10-K. The following table presents information concerning operations in these segments. Three months ended March 31, Six months ended March 31, $ in millions 2021 2020 2021 2020 Net revenues: Private Client Group $ 1,647 $ 1,495 $ 3,114 $ 2,909 Capital Markets 433 290 885 558 Asset Management 209 184 404 368 RJ Bank 160 210 327 426 Other (12) (44) (8) (52) Intersegment eliminations (65) (67) (128) (132) Total net revenues $ 2,372 $ 2,068 $ 4,594 $ 4,077 Pre-tax income/(loss): Private Client Group $ 192 $ 170 $ 332 $ 323 Capital Markets 105 28 234 57 Asset Management 87 73 170 146 RJ Bank 111 14 182 149 Other (48) (46) (72) (77) Total pre-tax income $ 447 $ 239 $ 846 $ 598 No individual client accounted for more than ten percent of revenues in any of the periods presented. The following table presents our net interest income on a segment basis. Three months ended March 31, Six months ended March 31, $ in millions 2021 2020 2021 2020 Net interest income/(expense): Private Client Group $ 27 $ 38 $ 55 $ 79 Capital Markets 3 4 4 6 Asset Management — — — 1 RJ Bank 155 205 312 415 Other (22) (5) (43) (13) Net interest income $ 163 $ 242 $ 328 $ 488 The following table presents our total assets on a segment basis. $ in millions March 31, 2021 September 30, 2020 Total assets: Private Client Group $ 18,338 $ 12,574 Capital Markets 2,334 2,336 Asset Management 369 380 RJ Bank 33,010 30,356 Other 2,015 1,836 Total $ 56,066 $ 47,482 The following table presents goodwill, which was included in our total assets, on a segment basis. $ in millions March 31, 2021 September 30, 2020 Goodwill: Private Client Group (1) $ 417 $ 277 Capital Markets (2) 150 120 Asset Management 69 69 Total $ 636 $ 466 (1) The balance includes $139 million of goodwill arising from our acquisition of NWPS in December 2020. (2) The balance includes a provisional estimate of $30 million of goodwill arising from our acquisition of Financo in March 2021. We have operations in the U.S., Canada and Europe. Substantially all long-lived assets are located in the U.S. The following table presents our net revenues and pre-tax income classified by major geographic area in which they were earned. Three months ended March 31, Six months ended March 31, $ in millions 2021 2020 2021 2020 Net revenues: U.S. $ 2,194 $ 1,920 $ 4,273 $ 3,795 Canada 130 112 235 207 Europe 48 36 86 75 Total $ 2,372 $ 2,068 $ 4,594 $ 4,077 Pre-tax income/(loss): U.S. $ 415 $ 227 $ 812 $ 579 Canada 25 13 26 21 Europe 7 (1) 8 (2) Total $ 447 $ 239 $ 846 $ 598 The following table presents our total assets by major geographic area in which they were held. $ in millions March 31, 2021 September 30, 2020 Total assets: U.S. $ 52,349 $ 44,090 Canada 3,581 3,260 Europe 136 132 Total $ 56,066 $ 47,482 The following table presents goodwill, which was included in our total assets, classified by major geographic area in which it was held. $ in millions March 31, 2021 September 30, 2020 Goodwill: U.S. (1) $ 602 $ 433 Canada 25 24 Europe 9 9 Total $ 636 $ 466 (1) The balance includes $139 million of goodwill arising from our acquisition of NWPS in December 2020 and a provisional estimate of $30 million of goodwill arising from our acquisition of Financo in March 2021. |
UPDATE OF SIGNIFICANT ACCOUNT_2
UPDATE OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The accompanying unaudited condensed consolidated financial statements include the accounts of RJF and its consolidated subsidiaries that are generally controlled through a majority voting interest. We consolidate all of our 100% owned subsidiaries. In addition, we consolidate any variable interest entity (“VIE”) in which we are the primary beneficiary. Additional information on these VIEs is provided in Note 2 of our Annual Report on Form 10-K (“2020 Form 10-K”) for the year ended September 30, 2020, as filed with the United States (“U.S.”) Securities and Exchange Commission (“SEC”) and in Note 10 of this Form 10-Q. When we do not have a controlling interest in an entity, but we exert significant influence over the entity, we apply the equity method of accounting. All material intercompany balances and transactions have been eliminated in consolidation. |
Accounting estimates and assumptions | Accounting estimates and assumptions Certain financial information that is normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) but is not required for interim reporting purposes has been condensed or omitted. These unaudited condensed consolidated financial statements reflect, in the opinion of management, all adjustments necessary for a fair presentation of our consolidated financial position and results of operations for the periods presented. The nature of our business is such that the results of any interim period are not necessarily indicative of results for a full year. These unaudited condensed consolidated financial statements should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations and the Consolidated Financial Statements and Notes thereto included in our 2020 Form 10-K. To prepare condensed consolidated financial statements in accordance with GAAP, we must make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenues and expenses for the reporting period. Actual results could differ from those estimates and could have a material impact on the condensed consolidated financial statements. |
Reclassifications | Reclassifications Certain prior-period amounts have been reclassified to conform to the current period’s presentation. |
Recent accounting developments | Accounting guidance adopted in fiscal 2021 Credit losses In June 2016, the Financial Accounting Standards Board (“FASB”) issued new guidance related to the measurement of credit losses on financial instruments (ASU 2016-13), which replaces the incurred credit loss and other models with the Current Expected Credit Losses (“CECL”) model. The guidance involves several aspects of the accounting for credit losses related to certain financial instruments, including assets measured at amortized cost, available-for-sale debt securities and certain off-balance sheet commitments. The new guidance, and subsequent updates, broadens the information that an entity must consider in developing its estimated credit losses expected to occur over the remaining life of in-scope financial assets. The measurement of expected credit losses includes historical experience, current conditions and reasonable and supportable economic forecasts. This new guidance was effective for our fiscal year beginning on October 1, 2020 and was adopted under a modified retrospective approach. The impact of adoption of this new standard resulted in an increase in our allowance for credit losses of $42 million (including $25 million related to loans to financial advisors, $9 million related to funded bank loans and $8 million related to unfunded lending commitments) and a corresponding reduction in the beginning balance of retained earnings of approximately $35 million, net of tax. Prior-period amounts were calculated under the incurred loss model and have not been restated. See Notes 8 and 9 for further information related to bank loans and loans to financial advisors and the related allowances for credit losses. The following sections highlight changes to our accounting policies as a result of this adoption. Available-for-sale securities Available-for-sale securities are generally held by Raym ond James Bank, N.A. (“RJ Bank, N.A.”) and are classified at the date of purchase. They are comprised primarily of agency mortgage-backed securities (“MBS”) and agency collateralized mortgage obligations (“CMOs”), which are guaranteed by the U.S. government or its agencies. Available-for-sale securities owned by RJ Bank, N.A. are used as part of its interest rate risk and liquidity management strategies and may be sold in response to changes in interest rates, changes in prepayment risks, or other factors. As a result of the adoption of the new CECL guidance, credit losses on available-for-sale securities are limited to the difference between the security’s amortized cost basis and its fair value and should be recognized through an allowance for credit losses rather than as a direct reduction in amortized cost basis. Given that our available-for-sale securities portfolio is comprised of government agency securities for which payments of both principal and interest are guaranteed, and based on the lack of historical credit losses, we expect zero credit losses on this portfolio and the related accrued interest receivable. On a quarterly basis, we reassess our expectation of zero credit losses to consider changes in the available-for-sale securities portfolio. Other receivables, net Other receivables primarily include receivables from brokers, dealers and clearing organizations, accrued interest receivables and accrued fees from product sponsors. Receivables from brokers, dealers and clearing organizations primarily consist of deposits placed with clearing organizations, which includes initial margin and receivables related to sales of securities which have traded, but not yet settled including amounts receivable for securities failed to deliver. We present “Other receivables, net” on our Condensed Consolidated Statements of Financial Condition, net of any allowance for credit losses. However, these receivables generally have minimal credit risk due to the low probability of clearing organization default and the short-term nature of receivables related to securities settlements and therefore, the allowance for credit losses on such receivables is not significant. Any allowance for credit losses for other receivables is estimated using assumptions based on historical experience, current facts and other factors. We update these estimates through periodic evaluations against actual trends experienced. As permitted under the CECL guidance, we include accrued interest receivables related to our financial assets in “Other receivables, net” on the Condensed Consolidated Statements of Financial Condition instead of with the related financial instrument. We reverse any uncollectible accrued interest into interest income generally when the related financial asset is moved to nonaccrual status. As we write off uncollectible amounts in a timely manner, we do not recognize an allowance for credit losses against accrued interest receivable. Loans to financial advisors, net We offer loans to financial advisors for recruiting and retention purposes. The decision to extend credit to a financial advisor or other key revenue producer is generally based on their ability to generate future revenues. Loans offered are generally repaid over a five We present the outstanding balance of loans to financial advisors on our Condensed Consolidated Statements of Financial Condition, net of the allowance for credit losses. Refer to the allowance for credit losses section that follows for further information related to our allowance for credit losses on our loans to financial advisors. See Note 9 for additional information on our loans to financial advisors. Loans to financial advisors are considered past due once they are 30 days or more delinquent as to the payment of contractual interest or principal. Loans are placed on nonaccrual status when we determine that full payment of contractual principal and interest is in doubt, or the loan is past due 180 days or more as to contractual interest or principal. When a loan is placed on nonaccrual status, the accrued and unpaid interest receivable is written-off against interest income. Interest is recognized on a cash basis until the loan qualifies for return to accrual status. Loans are returned to an accrual status when the loans have been brought contractually current with the original terms and have been maintained on a current basis for a reasonable period, generally six months. When we determine that it is likely a loan will not be collected in full, the loan is evaluated for a potential write down of the carrying value. After consideration of the borrower’s ability to restructure the loan, sources of repayment, and other factors affecting the borrower’s ability to repay the debt, the portion of the loan deemed a confirmed loss, if any, is charged-off. A charge-off is taken against the allowance for credit losses for the difference between the amortized cost and the amount we estimate will ultimately be collected. Additional charge-offs are taken if there is an adverse change in the expected cash flows. Allowance for credit losses We evaluate our held for investment bank loans, unfunded lending commitments, loans to financial advisors and certain other financial assets to estimate an allowance for credit losses over the remaining life of the financial instrument. The remaining life of our financial assets is determined by considering contractual terms and expected prepayments, among other factors. We employ multiple methodologies in estimating an allowance for credit losses and our approaches differ by type of financial asset and the risk characteristics within each financial asset type. Our estimates are based on ongoing evaluations of the portfolio, the related credit risk characteristics, and the overall economic and environmental conditions affecting the financial assets. For certain of our financial assets with collateral maintenance provisions (e.g., collateralized agreements, margin loans and securities-based loans), we apply the practical expedient allowed under the CECL model in estimating an allowance for credit losses. We reasonably expect that borrowers (or counterparties, as applicable) will replenish the collateral as required. As a result, we estimate zero credit losses to the extent that the fair value equals or exceeds the related carrying value of the financial asset. When the fair value of the collateral securing the financial asset is less than the carrying value, qualitative factors such as historical experience (adjusted for current risk characteristics and economic conditions) as well as reasonable and supportable forecasts are considered in estimating the allowance for credit losses on the unsecured portion of the financial asset. Credit losses are charged-off against the allowance when we believe the uncollectibility of the financial asset is confirmed. Subsequent recoveries, if any, are credited to the allowance once received. A credit loss expense, or benefit, is recorded in earnings in an amount necessary to adjust the allowance for credit losses to our estimate as of the end of each reporting period. Our provision or benefit for credit losses for outstanding bank loans is included in “Bank loan provision/(benefit) for credit losses” on our Condensed Consolidated Statements of Income and Comprehensive Income and our provision or benefit for credit losses for all other financing receivables and unfunded lending commitments is included in “Other” expense. Loans We generally estimate the allowance for credit losses on our loan portfolios using credit risk models which incorporate relevant available information from internal and external sources relating to past events, current conditions, and reasonable and supportable economic forecasts. After testing the reasonableness of a variety of economic forecast scenarios, we select a single forecast scenario for use in our models. Our forecasts incorporate assumptions related to macroeconomic indicators including, but not limited to, U.S. gross domestic product, equity market indices, unemployment rates, and commercial real estate and residential home price indices. At the conclusion of our reasonable and supportable forecast period, which currently ranges from two one two three The allowance for credit losses on loans is generally evaluated and measured on a collective basis, typically by loan portfolio segment, due to similar risk characteristics. When a loan does not share similar risk characteristics with other loans, the loan is evaluated for credit losses on an individual basis. Various risk characteristics are considered when determining whether the loan should be collectively evaluated including, but not limited to, financial asset type, internal risk ratings, collateral type, industry of the borrower, and historical or expected credit loss patterns. The allowance for credit losses on collectively evaluated loans is comprised of two components: (a) a quantitative allowance; and (b) a qualitative allowance, which is based on an analysis of model limitations and other factors not considered by the quantitative models. There are several factors considered in estimating the quantitative allowance for credit losses on collectively evaluated loans which generally include, but are not limited to, the internal risk rating, historical loss experience (including adjustments due to current risk characteristics and economic conditions), prepayments, borrower-controlled extensions, and expected recoveries. We use third-party data for historical information on collectively evaluated corporate loans (C&I, CRE and REIT loans) and residential mortgage loans. The qualitative portion of our allowance for credit losses includes certain factors that are not incorporated into the quantitative estimate and would generally require adjustments to the allowance for credit losses. These qualitative factors are intended to address developing trends related to each portfolio segment and would generally include, but are not limited to: changes in lending policies and procedures, including changes in underwriting standards and collection; our loan review process; volume and severity of delinquent loans; changes in the nature, volume and terms of loans; credit concentrations; changes in the value of underlying collateral; changes in legal and regulatory environments; and local, regional, national and international economic conditions. Held for investment bank loans The allowance for credit losses for the C&I, CRE (primarily loans that are secured by income-producing properties and commercial real estate construction loans), REIT (loans made to businesses that own or finance income-producing real estate), tax-exempt and residential mortgage portfolio segments is estimated using credit risk models that project a probability of default (“PD”), which is then multiplied by the loss given default (“LGD”) and the estimated exposure at default (“EAD”) at the loan-level for every period remaining in the loan’s expected life, including the maturity period. Historical data, combined with macroeconomic variables, are used in estimating the PD, LGD and EAD. Our credit risk models consider several factors when estimating the expected credit losses which may include, but are not limited to, financial performance and position, estimated prepayments, geographic location, industry or sector type, debt type, loan size, capital structure, initial risk levels and the economic outlook. Additional factors considered by the residential mortgage model include Fair Isaac Corporation (“FICO”) scores and loan-to-value (“LTV”) ratios. We generally use one of two methods to measure the allowance for credit losses on individually evaluated loans. A discounted cash flow approach is used to estimate the allowance for credit losses on certain nonaccrual corporate loans and all troubled debt restructurings (“TDRs”) that are not collateral-dependent. For collateral-dependent loans and for instances where foreclosure is probable, we use an approach that considers the fair value of the collateral less selling costs when measuring the allowance for credit losses. A loan is collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the sale of the collateral. See Note 8 for further information about our bank loans, including credit quality indicators considered in developing the allowance for credit losses. Unfunded lending commitments We estimate credit losses on unfunded lending commitments using a methodology consistent with that used in the corresponding bank loan portfolio segment and also based on the expected funding probabilities for fully binding commitments. As a result, the allowance for credit losses for unfunded lending commitments will vary depending upon the mix of lending commitments and future funding expectations. All classes of individually evaluated unfunded lending commitments are analyzed in conjunction with the specific allowance process previously described. The allowance for credit losses related to unfunded lending commitments is included in “Other payables” on our Condensed Consolidated Statements of Financial Condition. Loans to financial advisors The allowance for credit losses on loans to financial advisors is estimated using credit risk models that incorporate average annual loan-level loss rates and estimated prepayments based on historical data. The qualitative component of our estimate considers internal and external factors that are not incorporated into the quantitative estimate such as the reasonable and supportable forecast period. In estimating an allowance for credit losses on our individually-evaluated loans to financial advisors, we generally take into account the affiliation status of the financial advisor (i.e., whether the advisor is actively affiliated with us or has terminated affiliation with us), the borrower’s ability to restructure the loan, sources of repayment, and other factors affecting the borrower’s ability to repay the debt. |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on a Recurring and Nonrecurring Basis | The following tables present assets and liabilities measured at fair value on a recurring basis. Netting adjustments represent the impact of counterparty and collateral netting on our derivative balances included on our Condensed Consolidated Statements of Financial Condition. See Note 6 for additional information. $ in millions Level 1 Level 2 Level 3 Netting Balance as of March 31, 2021 Assets at fair value on a recurring basis: Assets segregated pursuant to regulations $ 5,250 $ — $ — $ — $ 5,250 Trading assets Municipal and provincial obligations 1 159 — — 160 Corporate obligations 9 31 — — 40 Government and agency obligations 13 94 — — 107 Agency MBS and agency CMOs — 193 — — 193 Non-agency CMOs and asset-backed securities (“ABS”) — 6 — — 6 Total debt securities 23 483 — — 506 Equity securities 13 1 — — 14 Brokered certificates of deposit — 42 — — 42 Other — — 5 — 5 Total trading assets 36 526 5 — 567 Available-for-sale securities (1) 15 8,143 — — 8,158 Derivative assets Interest rate - matched book — 201 — — 201 Interest rate - other 70 143 — (111) 102 Foreign exchange — 1 — — 1 Total derivative assets 70 345 — (111) 304 Other investments - private equity - not measured at net asset value (“NAV”) — — 52 — 52 All other investments: Government and agency obligations (2) 105 — — — 105 Other 100 2 23 — 125 Total all other investments 205 2 23 — 230 Subtotal 5,576 9,016 80 (111) 14,561 Other investments - private equity - measured at NAV 88 Total assets at fair value on a recurring basis $ 5,576 $ 9,016 $ 80 $ (111) $ 14,649 Liabilities at fair value on a recurring basis: Trading liabilities Municipal and provincial obligations $ 1 $ — $ — $ — $ 1 Corporate obligations — 22 — — 22 Government and agency obligations 122 — — — 122 Agency MBS and agency CMOs — 22 — — 22 Total debt securities 123 44 — — 167 Equity securities 44 — — — 44 Other — — 1 — 1 Total trading liabilities 167 44 1 — 212 Derivative liabilities Interest rate - matched book — 201 — — 201 Interest rate - other 64 121 — (69) 116 Foreign exchange — 3 — — 3 Other — — 4 — 4 Total derivative liabilities 64 325 4 (69) 324 Total liabilities at fair value on a recurring basis $ 231 $ 369 $ 5 $ (69) $ 536 $ in millions Level 1 Level 2 Level 3 Netting Balance as of September 30, 2020 Assets at fair value on a recurring basis: Trading assets Municipal and provincial obligations $ 5 $ 120 $ — $ — $ 125 Corporate obligations 11 45 — — 56 Government and agency obligations 13 131 — — 144 Agency MBS and agency CMOs — 130 — — 130 Non-agency CMOs and ABS — 13 — — 13 Total debt securities 29 439 — — 468 Equity securities 11 5 — — 16 Brokered certificates of deposit — 17 — — 17 Other — — 12 — 12 Total trading assets 40 461 12 — 513 Available-for-sale securities (1) 16 7,634 — — 7,650 Derivative assets Interest rate - matched book — 333 — — 333 Interest rate - other 16 224 — (135) 105 Total derivative assets 16 557 — (135) 438 Other investments - private equity - not measured at NAV — — 37 — 37 All other investments: Government and agency obligations (2) 103 — — — 103 Other 92 1 22 — 115 Total all other investments 195 1 22 — 218 Subtotal 267 8,653 71 (135) 8,856 Other investments - private equity - measured at NAV 79 Total assets at fair value on a recurring basis $ 267 $ 8,653 $ 71 $ (135) $ 8,935 Liabilities at fair value on a recurring basis: Trading liabilities Municipal and provincial obligations $ 1 $ — $ — $ — $ 1 Corporate obligations — 5 — — 5 Government and agency obligations 136 — — — 136 Non-agency CMOs and ABS — 2 — — 2 Total debt securities 137 7 — — 144 Equity securities 96 — — — 96 Total trading liabilities 233 7 — — 240 Derivative liabilities Interest rate - matched book — 333 — — 333 Interest rate - other 16 145 — (112) 49 Foreign exchange — 5 — — 5 Other — 1 5 — 6 Total derivative liabilities 16 484 5 (112) 393 Total liabilities at fair value on a recurring basis $ 249 $ 491 $ 5 $ (112) $ 633 (1) Substantially all of our available-for-sale securities consist of agency MBS and agency CMOs. See Note 5 for further information. (2) These assets are comprised of U.S. Treasuries purchased to meet certain deposit requirements with clearing organizations. |
Level 3 Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis, Roll Forward Table of Change in Balances | The following tables present the changes in fair value for Level 3 assets and liabilities measured at fair value on a recurring basis. The realized and unrealized gains and losses in the tables may include changes in fair value that were attributable to both observable and unobservable inputs. In the following tables, gains/(losses) on trading instruments are reported in “Principal transactions” and gains/(losses) on other investments are reported in “Other” revenues. Three months ended March 31, 2021 Level 3 instruments at fair value Financial assets Financial liabilities Trading assets Other investments Trading liabilities Derivative liabilities $ in millions Other Private equity investments All other Other Other Fair value beginning of period $ 3 $ 52 $ 22 $ — $ (1) Total gains/(losses) included in earnings (2) — 1 (1) (3) Purchases and contributions 10 — — — — Sales and distributions (6) — — — — Transfers: Into Level 3 — — — — — Out of Level 3 — — — — — Fair value end of period $ 5 $ 52 $ 23 $ (1) $ (4) Unrealized gains/(losses) for the period included in earnings for instruments held at the end of the reporting period $ — $ — $ 1 $ (1) $ (3) Six months ended March 31, 2021 Level 3 instruments at fair value Financial assets Financial liabilities Trading assets Other investments Trading liabilities Derivative liabilities $ in millions Other Private equity investments All other Other Other Fair value beginning of period $ 12 $ 37 $ 22 $ — $ (5) Total gains/(losses) included in earnings — 15 1 (1) 1 Purchases and contributions 16 — — — — Sales and distributions (23) — — — — Transfers: Into Level 3 — — — — — Out of Level 3 — — — — — Fair value end of period $ 5 $ 52 $ 23 $ (1) $ (4) Unrealized gains/(losses) for the period included in earnings for instruments held at the end of the reporting period $ — $ 15 $ 1 $ (1) $ 1 Three months ended March 31, 2020 Level 3 instruments at fair value Financial assets Financial liabilities Trading assets Other investments Trading liabilities $ in millions Other Private equity investments All other Other Fair value beginning of period $ 19 $ 62 $ 24 $ (1) Total gains/(losses) included in earnings 3 (32) (2) — Purchases and contributions 22 — — 1 Sales and distributions (23) — — — Transfers: Into Level 3 — — — — Out of Level 3 — — — — Fair value end of period $ 21 $ 30 $ 22 $ — Unrealized gains/(losses) for the period included in earnings for instruments held at the end of the reporting period $ 5 $ (32) $ (2) $ — Six months ended March 31, 2020 Level 3 instruments at fair value Financial assets Financial liabilities Trading assets Other investments Trading liabilities $ in millions Other Private equity investments All other Other Fair value beginning of period $ 3 $ 63 $ 24 $ (1) Total gains/(losses) included in earnings 3 (32) (2) — Purchases and contributions 53 — — 2 Sales and distributions (38) (1) — (1) Transfers: Into Level 3 — — — — Out of Level 3 — — — — Fair value end of period $ 21 $ 30 $ 22 $ — Unrealized gains/(losses) for the period included in earnings for instruments held at the end of the reporting period $ 5 $ (32) $ (2) $ — |
Significant Assumptions Used in Valuation of Level 3 Financial Instruments | The following table presents the valuation techniques and significant unobservable inputs used in the valuation of certain of our private equity investments classified as level 3. These inputs represent those that a market participant would take into account when pricing these instruments. Weighted averages are calculated by weighting each input by the relative fair value of the related financial instrument. Certain investments are valued initially at transaction price and updated as other investment-specific events take place which indicate that a change in the carrying values of these investments is appropriate. Other investment-specific events include such events as our periodic review, significant transactions occur or new developments become known. Recurring measurements $ in millions Fair value at March 31, 2021 Valuation technique(s) Unobservable input Range Other investments - private equity investments (not measured at NAV) $ 52 Discounted cash flow, transaction price or other investment-specific events Discount rate 25% Terminal earnings before interest, tax, depreciation and amortization (“EBITDA”) multiple 9.0x Terminal year 2021 - 2034 (2022) Fair value at September 30, 2020 Other investments - private equity investments (not measured at NAV) $ 37 Discounted cash flow, transaction price or other investment-specific events Discount rate 25% Terminal EBITDA multiple 9.0x Terminal year 2021 - 2042 (2023) |
Net asset value of recorded value and unfunded commitments | The following table presents the recorded value and unfunded commitments related to our private equity investments portfolio. $ in millions Recorded value Unfunded commitment March 31, 2021 Private equity investments measured at NAV $ 88 $ 9 Private equity investments not measured at NAV 52 Total private equity investments $ 140 September 30, 2020 Private equity investments measured at NAV $ 79 $ 9 Private equity investments not measured at NAV 37 Total private equity investments $ 116 |
Fair Value Measurements, Nonrecurring | The following table presents assets measured at fair value on a nonrecurring basis along with the valuation techniques and significant unobservable inputs used in the valuation of the assets classified as level 3. These inputs represent those that a market participant would take into account when pricing these instruments. Weighted averages are calculated by weighting each input by the relative fair value of the related financial instrument. $ in millions Level 2 Level 3 Total fair value Valuation technique(s) Unobservable input Range March 31, 2021 Bank loans: Residential mortgage loans $ 4 $ 11 $ 15 Collateral or discounted cash flow (1) Prepayment rate 7 yrs. - 12 yrs. (10.5 yrs.) Corporate loans $ — $ 13 $ 13 Collateral or discounted cash flow (1) Not meaningful (1) Not meaningful (1) Loans held for sale $ 151 $ — $ 151 N/A N/A N/A September 30, 2020 Bank loans: Residential mortgage loans $ 4 $ 13 $ 17 Collateral or discounted cash flow (1) Prepayment rate 7 yrs. - 12 yrs. (10.6 yrs.) Corporate loans $ — $ 15 $ 15 Collateral or discounted cash flow (1) Not meaningful (1) Not meaningful (1) Loans held for sale $ 38 $ — $ 38 N/A N/A N/A Other assets: other real estate owned $ 1 $ — $ 1 N/A N/A N/A (1) The valuation techniques used to estimate the fair values are based on collateral value less selling costs for the collateral-dependent loans and discounted cash flows for loans that are not collateral-dependent. |
Carrying Amounts and Estimated Fair Values of Financial Instruments Not Carried at Fair Value | The following table presents the estimated fair value and fair value hierarchy of financial assets and liabilities that are not recorded at fair value in accordance with GAAP on the Condensed Consolidated Statements of Financial Condition at March 31, 2021 and September 30, 2020. This table excludes financial instruments that are carried at amounts which approximate fair value. Refer to Note 3 of our 2020 Form 10-K for a discussion of the fair value hierarchy classifications of our financial instruments that are not recorded at fair value. $ in millions Level 2 Level 3 Total estimated fair value Carrying amount March 31, 2021 Financial assets: Bank loans, net $ 52 $ 22,518 $ 22,570 $ 22,700 Financial liabilities: Bank deposits - certificates of deposit $ — $ 917 $ 917 $ 889 Senior notes payable (1) $ 2,400 $ — $ 2,400 $ 2,045 September 30, 2020 Financial assets: Bank loans, net $ 72 $ 21,119 $ 21,191 $ 21,125 Financial liabilities: Bank deposits - certificates of deposit $ — $ 1,056 $ 1,056 $ 1,017 Senior notes payable $ 2,504 $ — $ 2,504 $ 2,045 (1) In April and May 2021, we repurchased or redeemed, as applicable, a portion of our Senior notes payable. See Note 14 for further information. |
AVAILABLE-FOR-SALE SECURITIES (
AVAILABLE-FOR-SALE SECURITIES (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Debt Securities, Available-for-sale [Abstract] | |
Amortized Cost and Estimated Fair Values of Available-For-Sale Securities | The following table details the amortized costs and fair values of our available-for-sale securities. $ in millions Cost basis Gross Gross Fair value March 31, 2021 Agency residential MBS $ 4,762 $ 53 $ (31) $ 4,784 Agency commercial MBS 1,194 10 (36) 1,168 Agency CMOs 2,193 15 (17) 2,191 Other securities 15 — — 15 Total available-for-sale securities $ 8,164 $ 78 $ (84) $ 8,158 September 30, 2020 Agency residential MBS $ 4,064 $ 74 $ (3) $ 4,135 Agency commercial MBS 948 22 (1) 969 Agency CMOs 2,504 27 (1) 2,530 Other securities 15 1 — 16 Total available-for-sale securities $ 7,531 $ 124 $ (5) $ 7,650 |
Contractual Maturities, Amortized Cost, Carrying Values, and Current Yields for Available-For-Sales Securities | The following table details the contractual maturities, amortized costs, carrying values and current yields for our available-for-sale securities. Since our MBS and CMO available-for-sale securities are backed by mortgages, actual maturities may differ from contractual maturities because borrowers may have the right to prepay obligations without prepayment penalties. As a result, as of March 31, 2021, the weighted-average life of our available-for-sale securities portfolio was approximately 4 years. March 31, 2021 $ in millions Within one year After one but After five but After ten years Total Agency residential MBS Amortized cost $ — $ 45 $ 1,811 $ 2,906 $ 4,762 Carrying value $ — $ 47 $ 1,834 $ 2,903 $ 4,784 Agency commercial MBS Amortized cost $ 42 $ 191 $ 856 $ 105 $ 1,194 Carrying value $ 42 $ 195 $ 827 $ 104 $ 1,168 Agency CMOs Amortized cost $ — $ 1 $ 55 $ 2,137 $ 2,193 Carrying value $ — $ 1 $ 56 $ 2,134 $ 2,191 Other securities Amortized cost $ — $ 7 $ 8 $ — $ 15 Carrying value $ — $ 7 $ 8 $ — $ 15 Total available-for-sale securities Amortized cost $ 42 $ 244 $ 2,730 $ 5,148 $ 8,164 Carrying value $ 42 $ 250 $ 2,725 $ 5,141 $ 8,158 Weighted-average yield 2.10 % 2.14 % 1.27 % 1.03 % 1.15 % |
Available-For-Sale Securities in a Continuous Unrealized Loss Position | The following table details the gross unrealized losses and fair values of securities that were in a loss position at the reporting period end, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position. Less than 12 months 12 months or more Total $ in millions Estimated Unrealized Estimated Unrealized Estimated Unrealized March 31, 2021 Agency residential MBS $ 2,772 $ (31) $ — $ — $ 2,772 $ (31) Agency commercial MBS 756 (36) — — 756 (36) Agency CMOs 1,210 (17) 25 — 1,235 (17) Other securities 3 — — — 3 — Total $ 4,741 $ (84) $ 25 $ — $ 4,766 $ (84) September 30, 2020 Agency residential MBS $ 966 $ (3) $ — $ — $ 966 $ (3) Agency commercial MBS 177 (1) — — 177 (1) Agency CMOs 410 (1) — — 410 (1) Total $ 1,553 $ (5) $ — $ — $ 1,553 $ (5) |
DERIVATIVE ASSETS AND DERIVAT_2
DERIVATIVE ASSETS AND DERIVATIVE LIABILITIES (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Liabilities at Fair Value | The following table presents the gross fair values and notional amounts of derivatives by product type, the amounts of counterparty and cash collateral netting on our Condensed Consolidated Statements of Financial Condition, as well as collateral posted and received under credit support agreements that do not meet the criteria for netting under GAAP. March 31, 2021 September 30, 2020 $ in millions Derivative assets Derivative liabilities Notional amount Derivative assets Derivative liabilities Notional amount Derivatives not designated as hedging instruments Interest rate - matched book $ 201 $ 201 $ 1,935 $ 333 $ 333 $ 2,174 Interest rate - other (1) 213 185 18,459 240 161 19,206 Foreign exchange 1 1 744 — 2 605 Other — 4 566 — 6 608 Subtotal 415 391 21,704 573 502 22,593 Derivatives designated as hedging instruments Interest rate — — 850 — — 850 Foreign exchange — 2 901 — 3 866 Subtotal — 2 1,751 — 3 1,716 Total gross fair value/notional amount 415 393 $ 23,455 573 505 $ 24,309 Offset on the Condensed Consolidated Statements of Financial Condition Counterparty netting (66) (66) (40) (40) Cash collateral netting (45) (3) (95) (72) Total amounts offset (111) (69) (135) (112) Net amounts presented on the Condensed Consolidated Statements of Financial Condition 304 324 438 393 Gross amounts not offset on the Condensed Consolidated Statements of Financial Condition Financial instruments (2) (212) (201) (349) (333) Total $ 92 $ 123 $ 89 $ 60 (1) Substantially all relates to interest rate derivatives entered into as part of our fixed income business operations, including to-be-announced (“TBA”) security contracts that are accounted for as derivatives. (2) Although the matched book derivative arrangements do not meet the definition of a master netting arrangement as specified by GAAP, the agreement with the third-party intermediary includes terms that are similar to a master netting agreement. As a result, we present the matched book amounts net in the preceding table. |
Schedule of Derivative Assets at Fair Value | The following table presents the gross fair values and notional amounts of derivatives by product type, the amounts of counterparty and cash collateral netting on our Condensed Consolidated Statements of Financial Condition, as well as collateral posted and received under credit support agreements that do not meet the criteria for netting under GAAP. March 31, 2021 September 30, 2020 $ in millions Derivative assets Derivative liabilities Notional amount Derivative assets Derivative liabilities Notional amount Derivatives not designated as hedging instruments Interest rate - matched book $ 201 $ 201 $ 1,935 $ 333 $ 333 $ 2,174 Interest rate - other (1) 213 185 18,459 240 161 19,206 Foreign exchange 1 1 744 — 2 605 Other — 4 566 — 6 608 Subtotal 415 391 21,704 573 502 22,593 Derivatives designated as hedging instruments Interest rate — — 850 — — 850 Foreign exchange — 2 901 — 3 866 Subtotal — 2 1,751 — 3 1,716 Total gross fair value/notional amount 415 393 $ 23,455 573 505 $ 24,309 Offset on the Condensed Consolidated Statements of Financial Condition Counterparty netting (66) (66) (40) (40) Cash collateral netting (45) (3) (95) (72) Total amounts offset (111) (69) (135) (112) Net amounts presented on the Condensed Consolidated Statements of Financial Condition 304 324 438 393 Gross amounts not offset on the Condensed Consolidated Statements of Financial Condition Financial instruments (2) (212) (201) (349) (333) Total $ 92 $ 123 $ 89 $ 60 (1) Substantially all relates to interest rate derivatives entered into as part of our fixed income business operations, including to-be-announced (“TBA”) security contracts that are accounted for as derivatives. (2) Although the matched book derivative arrangements do not meet the definition of a master netting arrangement as specified by GAAP, the agreement with the third-party intermediary includes terms that are similar to a master netting agreement. As a result, we present the matched book amounts net in the preceding table. |
Schedule of Net Investment Hedges in Accumulated Other Comprehensive Income (Loss) | The following table details the gains/(losses) included in accumulated other comprehensive income (“AOCI”), net of income taxes, on derivatives designated as hedging instruments. These gains/(losses) included any amounts reclassified from AOCI to net income during the period. See Note 17 for additional information. Three months ended March 31, Six months ended March 31, $ in millions 2021 2020 2021 2020 Interest rate (cash flow hedges) $ 19 $ (43) $ 24 $ (33) Foreign exchange (net investment hedges) (10) 52 (39) 39 Total gains/(losses) in AOCI, net of taxes $ 9 $ 9 $ (15) $ 6 |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The following table details the gains/(losses) included in accumulated other comprehensive income (“AOCI”), net of income taxes, on derivatives designated as hedging instruments. These gains/(losses) included any amounts reclassified from AOCI to net income during the period. See Note 17 for additional information. Three months ended March 31, Six months ended March 31, $ in millions 2021 2020 2021 2020 Interest rate (cash flow hedges) $ 19 $ (43) $ 24 $ (33) Foreign exchange (net investment hedges) (10) 52 (39) 39 Total gains/(losses) in AOCI, net of taxes $ 9 $ 9 $ (15) $ 6 |
Amount of Gain (Loss) on Derivatives Recognized in Income | The following table details the gains/(losses) on derivatives not designated as hedging instruments recognized on the Condensed Consolidated Statements of Income and Comprehensive Income. $ in millions Three months ended March 31, Six months ended March 31, Location of gain/(loss) 2021 2020 2021 2020 Interest rate Principal transactions/other revenues $ 6 $ — $ 10 $ 5 Foreign exchange Other revenues $ (4) $ 43 $ (30) $ 32 Other Principal transactions $ (2) $ — $ 2 $ — Other Compensation, commissions and benefits expense $ — $ (1) $ — $ (1) |
COLLATERALIZED AGREEMENTS AND_2
COLLATERALIZED AGREEMENTS AND FINANCINGS (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Offsetting [Abstract] | |
Offsetting assets | Although not offset on the Condensed Consolidated Statements of Financial Condition, these transactions are included in the following table. Collateralized agreements Collateralized financings $ in millions Reverse repurchase agreements Securities borrowed Total Repurchase agreements Securities loaned Total March 31, 2021 Gross amounts of recognized assets/liabilities $ 224 $ 227 $ 451 $ 222 $ 56 $ 278 Gross amounts offset on the Condensed Consolidated Statements of Financial Condition — — — — — — Net amounts presented on the Condensed Consolidated Statements of Financial Condition 224 227 451 222 56 278 Gross amounts not offset on the Condensed Consolidated Statements of Financial Condition (224) (222) (446) (222) (55) (277) Net amounts $ — $ 5 $ 5 $ — $ 1 $ 1 September 30, 2020 Gross amounts of recognized assets/liabilities $ 207 $ 215 $ 422 $ 165 $ 85 $ 250 Gross amounts offset on the Condensed Consolidated Statements of Financial Condition — — — — — — Net amounts presented on the Condensed Consolidated Statements of Financial Condition 207 215 422 165 85 250 Gross amounts not offset on the Condensed Consolidated Statements of Financial Condition (207) (209) (416) (165) (79) (244) Net amounts $ — $ 6 $ 6 $ — $ 6 $ 6 |
Offsetting liabilities | Although not offset on the Condensed Consolidated Statements of Financial Condition, these transactions are included in the following table. Collateralized agreements Collateralized financings $ in millions Reverse repurchase agreements Securities borrowed Total Repurchase agreements Securities loaned Total March 31, 2021 Gross amounts of recognized assets/liabilities $ 224 $ 227 $ 451 $ 222 $ 56 $ 278 Gross amounts offset on the Condensed Consolidated Statements of Financial Condition — — — — — — Net amounts presented on the Condensed Consolidated Statements of Financial Condition 224 227 451 222 56 278 Gross amounts not offset on the Condensed Consolidated Statements of Financial Condition (224) (222) (446) (222) (55) (277) Net amounts $ — $ 5 $ 5 $ — $ 1 $ 1 September 30, 2020 Gross amounts of recognized assets/liabilities $ 207 $ 215 $ 422 $ 165 $ 85 $ 250 Gross amounts offset on the Condensed Consolidated Statements of Financial Condition — — — — — — Net amounts presented on the Condensed Consolidated Statements of Financial Condition 207 215 422 165 85 250 Gross amounts not offset on the Condensed Consolidated Statements of Financial Condition (207) (209) (416) (165) (79) (244) Net amounts $ — $ 6 $ 6 $ — $ 6 $ 6 |
Collateral | The following table presents financial instruments at fair value that we received as collateral, were not included on our Condensed Consolidated Statements of Financial Condition, and that were available to be delivered or repledged, along with the balances of such instruments that were delivered or repledged, to satisfy one of our purposes previously described. $ in millions March 31, 2021 September 30, 2020 Collateral we received that was available to be delivered or repledged $ 3,225 $ 2,869 Collateral that we delivered or repledged $ 886 $ 788 |
Encumbered assets | The following table presents information about our assets that have been pledged for one of the purposes previously described. $ in millions March 31, 2021 September 30, 2020 Had the right to deliver or repledge $ 424 $ 325 Did not have the right to deliver or repledge $ 65 $ 65 Bank loans, net pledged at the Federal Home Loan Bank (“FHLB”) and the Federal Reserve Bank of Atlanta $ 5,501 $ 5,367 |
Transfer of certain financial assets accounted for as secured borrowings | The following table presents the remaining contractual maturity of repurchase agreements and securities lending transactions accounted for as secured borrowings. $ in millions Overnight and continuous Up to 30 days 30-90 days Greater than 90 days Total March 31, 2021 Repurchase agreements: Government and agency obligations $ 121 $ — $ — $ — $ 121 Agency MBS and agency CMOs 101 — — — 101 Total repurchase agreements 222 — — — 222 Securities loaned: Equity securities 56 — — — 56 Total collateralized financings $ 278 $ — $ — $ — $ 278 September 30, 2020 Repurchase agreements: Government and agency obligations $ 87 $ — $ — $ — $ 87 Agency MBS and agency CMOs 78 — — — 78 Total repurchase agreements 165 — — — 165 Securities loaned: Equity securities 85 — — — 85 Total collateralized financings $ 250 $ — $ — $ — $ 250 |
BANK LOANS, NET (Tables)
BANK LOANS, NET (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | The following table presents the balances for both the held for sale and held for investment loan portfolios, as well as the associated percentage of each portfolio segment in RJ Bank’s total loan portfolio. March 31, 2021 September 30, 2020 $ in millions Balance % Balance % C&I loans $ 7,816 34 % $ 7,421 34 % CRE loans 2,710 12 % 2,489 12 % REIT loans 1,380 6 % 1,210 5 % Tax-exempt loans 1,223 5 % 1,259 6 % Residential mortgage loans 5,001 21 % 4,973 23 % SBL and other 4,891 21 % 4,087 19 % Total loans held for investment 23,021 99 % 21,439 99 % Held for sale loans 203 1 % 110 1 % Total loans held for sale and investment 23,224 100 % 21,549 100 % Allowance for credit losses (345) (354) Bank loans, net $ 22,879 $ 21,195 Accrued interest receivable on bank loans $ 46 $ 45 $ in millions March 31, 2021 September 30, 2020 Currently affiliated with the firm (1) $ 1,006 $ 1,001 No longer affiliated with the firm (2) 10 15 Total loans to financial advisors 1,016 1,016 Allowance for credit losses (28) (4) Loans to financial advisors, net $ 988 $ 1,012 Accrued interest receivable on loans to financial advisors $ 4 $ 4 (1) These loans were predominately current. (2) These loans were predominately past due for a period of 180 days or more and on nonaccrual status. |
Loan Purchases and Sales | The following table presents purchases and sales of any loans held for investment by portfolio segment. $ in millions C&I loans CRE loans Residential mortgage loans Total Three months ended March 31, 2021 Purchases $ 538 $ — $ 114 $ 652 Sales $ 95 $ — $ — $ 95 Six months ended March 31, 2021 Purchases $ 660 $ — $ 160 $ 820 Sales $ 100 $ — $ — $ 100 Three months ended March 31, 2020 Purchases $ 296 $ 5 $ 100 $ 401 Sales $ — $ — $ — $ — Six months ended March 31, 2020 Purchases $ 396 $ 5 $ 258 $ 659 Sales $ 20 $ — $ — $ 20 |
Analysis of the Payment Status of Loans Held for Investment | The following table presents information on delinquency status of our loans held for investment. $ in millions 30-89 days and accruing 90 days or more and accruing Total past due and accruing Nonaccrual with allowance Nonaccrual with no allowance Current and accruing Total loans held for investment March 31, 2021 C&I loans $ — $ — $ — $ — $ — $ 7,816 $ 7,816 CRE loans — — — — 13 2,697 2,710 REIT loans — — — — — 1,380 1,380 Tax-exempt loans — — — — — 1,223 1,223 Residential mortgage loans 1 — 1 14 4 4,982 5,001 SBL and other — — — — — 4,891 4,891 Total loans held for investment $ 1 $ — $ 1 $ 14 $ 17 $ 22,989 $ 23,021 September 30, 2020 C&I loans $ — $ — $ — $ 2 $ — $ 7,419 $ 7,421 CRE loans — — — — 14 2,475 2,489 REIT loans — — — — — 1,210 1,210 Tax-exempt loans — — — — — 1,259 1,259 Residential mortgage loans — — — 3 11 4,959 4,973 SBL and other — — — — — 4,087 4,087 Total loans held for investment $ — $ — $ — $ 5 $ 25 $ 21,409 $ 21,439 |
Credit Quality of Held for Investment Loan Portfolio | The following tables present RJ Bank’s held for investment loan portfolio by year of origination and credit quality indicator as of March 31, 2021. $ in millions 2021 2020 2019 2018 2017 Prior Revolving loans Total C&I loans Risk rating: Pass $ 312 $ 1,259 $ 1,206 $ 1,404 $ 1,043 $ 1,590 $ 649 $ 7,463 Special mention — — 43 103 — 54 2 202 Substandard — — 39 84 — 28 — 151 Doubtful — — — — — — — — Total C&I loans $ 312 $ 1,259 $ 1,288 $ 1,591 $ 1,043 $ 1,672 $ 651 $ 7,816 CRE loans Risk rating: Pass $ 194 $ 435 $ 572 $ 645 $ 226 $ 209 $ 61 $ 2,342 Special mention — 45 86 49 — — — 180 Substandard — — 32 86 8 62 — 188 Doubtful — — — — — — — — Total CRE loans $ 194 $ 480 $ 690 $ 780 $ 234 $ 271 $ 61 $ 2,710 REIT loans Risk rating: Pass $ 171 $ 123 $ 115 $ 87 $ 50 $ 220 $ 364 $ 1,130 Special mention — — 28 11 39 124 21 223 Substandard — — 21 — 4 — 2 27 Doubtful — — — — — — — — Total REIT loans $ 171 $ 123 $ 164 $ 98 $ 93 $ 344 $ 387 $ 1,380 Tax-exempt loans Risk rating: Pass $ 9 $ 59 $ 123 $ 209 $ 276 $ 547 $ — $ 1,223 Special mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total tax-exempt loans $ 9 $ 59 $ 123 $ 209 $ 276 $ 547 $ — $ 1,223 Residential mortgage loans Risk rating: Pass $ 836 $ 1,459 $ 788 $ 499 $ 556 $ 815 $ 18 $ 4,971 Special mention — — — — — 5 — 5 Substandard — — — 1 2 22 — 25 Doubtful — — — — — — — — Total residential mortgage loans $ 836 $ 1,459 $ 788 $ 500 $ 558 $ 842 $ 18 $ 5,001 SBL and other Risk rating: Pass $ 6 $ 45 $ 12 $ — $ — $ — $ 4,828 $ 4,891 Special mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total SBL and other $ 6 $ 45 $ 12 $ — $ — $ — $ 4,828 $ 4,891 The following table presents the held for investment residential mortgage loan portfolio by FICO score and by LTV ratio at origination. $ in millions March 31, 2021 September 30, 2020 FICO score: Below 600 $ 67 $ 67 600 - 699 398 363 700 - 799 3,496 3,463 800 + 1,035 1,076 FICO score not available 5 4 Total $ 5,001 $ 4,973 LTV ratio: Below 80% $ 3,901 $ 3,852 80%+ 1,100 1,121 Total $ 5,001 $ 4,973 |
Changes in the Allowance for Loan Losses | The following table presents changes in the allowance for credit losses on held for investment bank loans by portfolio segment. $ in millions C&I loans CRE loans REIT loans Tax-exempt loans Residential mortgage loans SBL and other Total Three months ended March 31, 2021 Balance at beginning of period $ 198 $ 112 $ 30 $ 2 $ 33 $ 3 $ 378 Provision/(benefit) for credit losses 7 (39) 6 — (7) 1 (32) Net (charge-offs)/recoveries: Charge-offs (2) — — — — — (2) Recoveries — — — — — — — Net (charge-offs)/recoveries (2) — — — — — (2) Foreign exchange translation adjustment — 1 — — — — 1 Balance at end of period $ 203 $ 74 $ 36 $ 2 $ 26 $ 4 $ 345 Six months ended March 31, 2021 Balance at beginning of period $ 200 $ 81 $ 36 $ 14 $ 18 $ 5 $ 354 Impact of CECL adoption 19 (11) (9) (12) 24 (2) 9 Provision/(benefit) for credit losses (15) 3 9 — (16) 1 (18) Net (charge-offs)/recoveries: Charge-offs (2) — — — — — (2) Recoveries — — — — — — — Net (charge-offs)/recoveries (2) — — — — — (2) Foreign exchange translation adjustment 1 1 — — — — 2 Balance at end of period $ 203 $ 74 $ 36 $ 2 $ 26 $ 4 $ 345 Three months ended March 31, 2020 Balance at beginning of period $ 139 $ 36 $ 12 $ 8 $ 17 $ 4 $ 216 Provision/(benefit) for credit losses 58 18 26 3 1 3 109 Net (charge-offs)/recoveries: Charge-offs — — — — — — — Recoveries — — — — — — — Net (charge-offs)/recoveries — — — — — — — Foreign exchange translation adjustment (1) — — — — — (1) Balance at end of period $ 196 $ 54 $ 38 $ 11 $ 18 $ 7 $ 324 Six months ended March 31, 2020 Balance at beginning of period $ 139 $ 34 $ 15 $ 9 $ 16 $ 5 $ 218 Provision/(benefit) for credit losses 58 20 23 2 2 2 $ 107 Net (charge-offs)/recoveries: Charge-offs — — — — — — $ — Recoveries — — — — — — $ — Net (charge-offs)/recoveries — — — — — — — Foreign exchange translation adjustment (1) — — — — — (1) Balance at end of period $ 196 $ 54 $ 38 $ 11 $ 18 $ 7 $ 324 |
LOANS TO FINANCIAL ADVISORS, _2
LOANS TO FINANCIAL ADVISORS, NET (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | The following table presents the balances for both the held for sale and held for investment loan portfolios, as well as the associated percentage of each portfolio segment in RJ Bank’s total loan portfolio. March 31, 2021 September 30, 2020 $ in millions Balance % Balance % C&I loans $ 7,816 34 % $ 7,421 34 % CRE loans 2,710 12 % 2,489 12 % REIT loans 1,380 6 % 1,210 5 % Tax-exempt loans 1,223 5 % 1,259 6 % Residential mortgage loans 5,001 21 % 4,973 23 % SBL and other 4,891 21 % 4,087 19 % Total loans held for investment 23,021 99 % 21,439 99 % Held for sale loans 203 1 % 110 1 % Total loans held for sale and investment 23,224 100 % 21,549 100 % Allowance for credit losses (345) (354) Bank loans, net $ 22,879 $ 21,195 Accrued interest receivable on bank loans $ 46 $ 45 $ in millions March 31, 2021 September 30, 2020 Currently affiliated with the firm (1) $ 1,006 $ 1,001 No longer affiliated with the firm (2) 10 15 Total loans to financial advisors 1,016 1,016 Allowance for credit losses (28) (4) Loans to financial advisors, net $ 988 $ 1,012 Accrued interest receivable on loans to financial advisors $ 4 $ 4 (1) These loans were predominately current. (2) These loans were predominately past due for a period of 180 days or more and on nonaccrual status. |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Variable Interest Entities [Abstract] | |
VIEs where we are the primary beneficiary - aggregate assets and liabilities | The aggregate assets and liabilities of the VIEs we consolidate are provided in the following table. Aggregate assets and aggregate liabilities may differ from the consolidated carrying value of assets and liabilities due to the elimination of intercompany assets and liabilities held by the consolidated VIE. $ in millions Aggregate assets Aggregate liabilities March 31, 2021 Private Equity Interests $ 48 $ 4 LIHTC funds 68 6 Restricted Stock Trust Fund 21 21 Total $ 137 $ 31 September 30, 2020 Private Equity Interests $ 39 $ 4 LIHTC funds 168 76 Restricted Stock Trust Fund 14 14 Total $ 221 $ 94 |
VIEs where we are the primary beneficiary - carrying value of assets, liabilities and equity | The following table presents information about the carrying value of the assets and liabilities of the VIEs which we consolidate and which are included on our Condensed Consolidated Statements of Financial Condition. Intercompany balances are eliminated in consolidation and not reflected in the following table. $ in millions March 31, 2021 September 30, 2020 Assets: Cash and cash equivalents and assets segregated pursuant to regulations $ 11 $ 9 Other investments 46 37 Other assets 59 164 Total assets $ 116 $ 210 Liabilities: Other payables $ 3 $ 76 Total liabilities $ 3 $ 76 Noncontrolling interests $ 42 $ 62 |
VIEs where we hold a variable interest but we are not the primary beneficiary - aggregate assets, liabilities and exposure to loss | The aggregate assets, liabilities, and our exposure to loss from those VIEs in which we hold a variable interest, but as to which we have concluded we are not the primary beneficiary, are provided in the following table. March 31, 2021 September 30, 2020 $ in millions Aggregate Aggregate Our risk Aggregate Aggregate Our risk Private Equity Interests $ 7,416 $ 167 $ 77 $ 7,738 $ 96 $ 67 LIHTC funds 7,151 2,178 28 6,516 1,993 66 Other 357 146 9 227 136 6 Total $ 14,924 $ 2,491 $ 114 $ 14,481 $ 2,225 $ 139 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Schedule of Assets And Liabilities, Lessee | The following table presents the balances related to our leases on our Condensed Consolidated Statements of Financial Condition. The weighted-average remaining lease term and discount-rate for our leases was 5.7 years and 3.80%, respectively, as of March 31, 2021. See Note 2 of our 2020 Form 10-K for a discussion of our accounting policies related to leases. $ in millions March 31, 2021 September 30, 2020 ROU assets (included in Other assets) $ 348 $ 321 Lease liabilities (included in Other payables) $ 376 $ 345 |
Schedule of Lease Costs | The following table details the components of lease expense, which is included in “Occupancy and equipment” expense on our Condensed Consolidated Statements of Income and Comprehensive Income. Lease expense is recognized on a straight-line basis over the lease term if the ROU asset has not been impaired or abandoned. Three months ended March 31, Six months ended March 31, $ in millions 2021 2020 2021 2020 Lease costs $ 27 23 $ 54 46 Variable lease costs $ 7 4 $ 13 12 |
Schedule of Operating Lease Maturities | The maturities by fiscal year of our lease liabilities as of March 31, 2021 are presented in the following table. $ in millions Remainder of 2021 $ 47 2022 96 2023 77 2024 58 2025 43 Thereafter 102 Gross lease payments 423 Less: interest (47) Present value of lease liabilities $ 376 |
BANK DEPOSITS (Tables)
BANK DEPOSITS (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Deposits [Abstract] | |
Summary of Bank Deposits | The following table presents a summary of bank deposits, as well as the weighted-average interest rates on such deposits. The calculation of the weighted-average rates were based on the actual deposit balances and rates at each respective period end. March 31, 2021 September 30, 2020 $ in millions Balance Weighted-average rate Balance Weighted-average rate Savings and money market accounts $ 28,180 0.01 % $ 25,604 0.01 % Certificates of deposit 889 1.91 % 1,017 1.94 % NOW accounts 163 1.84 % 156 1.92 % Demand deposits (non-interest-bearing) 22 — 24 — Total bank deposits $ 29,254 0.08 % $ 26,801 0.09 % |
Scheduled Maturities of Certificates of Deposit | The following table sets forth the scheduled maturities of certificates of deposit. March 31, 2021 September 30, 2020 $ in millions Denominations Denominations Denominations Denominations Three months or less $ 31 $ 14 $ 59 $ 76 Over three through six months 12 21 26 18 Over six through twelve months 25 159 19 26 Over one through two years 58 161 43 206 Over two through three years 67 171 67 170 Over three through four years 7 150 37 165 Over four through five years 9 4 7 98 Total certificates of deposit $ 209 $ 680 $ 258 $ 759 |
Interest Expense on Deposits | Interest expense on deposits, excluding interest expense related to affiliate deposits, is summarized in the following table. Three months ended March 31, Six months ended March 31, $ in millions 2021 2020 2021 2020 Savings, money market, and NOW accounts $ 2 $ 6 $ 3 $ 18 Certificates of deposit 4 6 9 10 Total interest expense on deposits $ 6 $ 12 $ 12 $ 28 |
COMMITMENTS, CONTINGENCIES AN_2
COMMITMENTS, CONTINGENCIES AND GUARANTEES COMMITMENTS, CONTINGENCIES AND GUARANTEES (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Commitments to Extend Credit and Other Credit-Related Off-Balance Sheet Financial Instruments Outstanding | The following table presents RJ Bank’s commitments to extend credit and other credit-related off-balance sheet financial instruments outstanding. $ in millions March 31, 2021 September 30, 2020 Open-end consumer lines of credit (primarily SBL) $ 14,300 $ 12,148 Commercial lines of credit $ 1,740 $ 1,482 Unfunded loan commitments $ 532 $ 532 Standby letters of credit $ 27 $ 33 |
SENIOR NOTES PAYABLE (Tables)
SENIOR NOTES PAYABLE (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | The following table summarizes our senior notes payable. $ in millions March 31, 2021 September 30, 2020 5.625% senior notes, due 2024 $ 250 $ 250 3.625% senior notes, due 2026 500 500 4.65% senior notes, due 2030 500 500 4.95% senior notes, due 2046 800 800 Total principal amount 2,050 2,050 Unaccreted premium/(discount) 9 10 Unamortized debt issuance costs (14) (15) Total senior notes payable $ 2,045 $ 2,045 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table presents the net change in AOCI as well as the changes, and the related tax effects, of each component of AOCI. $ in millions Net investment hedges Currency translations Subtotal: net investment hedges and currency translations Available- for-sale securities Cash flow hedges Total Three months ended March 31, 2021 AOCI as of beginning of period $ 86 $ (93) $ (7) $ 72 $ (48) $ 17 OCI: OCI before reclassifications and taxes (13) 12 (1) (102) 22 (81) Amounts reclassified from AOCI, before tax — — — — 4 4 Pre-tax net OCI (13) 12 (1) (102) 26 (77) Income tax effect 3 — 3 26 (7) 22 OCI for the period, net of tax (10) 12 2 (76) 19 (55) AOCI as of end of period $ 76 $ (81) $ (5) $ (4) $ (29) $ (38) Six months ended March 31, 2021 AOCI as of beginning of period $ 115 $ (140) $ (25) $ 89 $ (53) $ 11 OCI: OCI before reclassifications and taxes (51) 57 6 (120) 25 (89) Amounts reclassified from AOCI, before tax — 2 2 (5) 8 5 Pre-tax net OCI (51) 59 8 (125) 33 (84) Income tax effect 12 — 12 32 (9) 35 OCI for the period, net of tax (39) 59 20 (93) 24 (49) AOCI as of end of period $ 76 $ (81) $ (5) $ (4) $ (29) $ (38) Three months ended March 31, 2020 AOCI as of beginning of period $ 97 $ (113) $ (16) $ 20 $ (9) $ (5) OCI: OCI before reclassifications and taxes 69 (78) (9) 85 (58) 18 Amounts reclassified from AOCI, before tax — — — — — — Pre-tax net OCI 69 (78) (9) 85 (58) 18 Income tax effect (17) — (17) (22) 15 (24) OCI for the period, net of tax 52 (78) (26) 63 (43) (6) AOCI as of end of period $ 149 $ (191) $ (42) $ 83 $ (52) $ (11) Six months ended March 31, 2020 AOCI as of beginning of period $ 110 $ (135) $ (25) $ 21 $ (19) $ (23) OCI: OCI before reclassifications and taxes 52 (56) (4) 83 (44) 35 Amounts reclassified from AOCI, before tax — — — — — — Pre-tax net OCI 52 (56) (4) 83 (44) 35 Income tax effect (13) — (13) (21) 11 (23) OCI for the period, net of tax 39 (56) (17) 62 (33) 12 AOCI as of end of period $ 149 $ (191) $ (42) $ 83 $ (52) $ (11) |
REVENUES (Tables)
REVENUES (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables present our sources of revenues by segment. For further information about our significant accounting policies related to revenue recognition, see Note 2 of our 2020 Form 10-K. See Note 23 of this Form 10-Q for additional information on our segment results. Three months ended March 31, 2021 $ in millions Private Client Group Capital Markets Asset Management RJ Bank Other and intersegment eliminations Total Revenues: Asset management and related administrative fees $ 979 $ — $ 201 $ — $ (7) $ 1,173 Brokerage revenues: Securities commissions: Mutual and other fund products 183 1 3 — (1) 186 Insurance and annuity products 109 — — — — 109 Equities, exchange-traded funds (“ETFs”) and fixed income products 108 40 — — — 148 Subtotal securities commissions 400 41 3 — (1) 443 Principal transactions (1) 13 135 — — — 148 Total brokerage revenues 413 176 3 — (1) 591 Account and services fees: Mutual fund and annuity service fees 99 — — — — 99 RJBDP fees 63 1 — — (45) 19 Client account and other fees 42 2 5 — (8) 41 Total account and service fees 204 3 5 — (53) 159 Investment banking: Merger & acquisition and advisory — 122 — — — 122 Equity underwriting 16 67 — — — 83 Debt underwriting — 37 — — — 37 Total investment banking 16 226 — — — 242 Other: Tax credit fund revenues — 24 — — — 24 All other (1) 8 1 — 5 6 20 Total other 8 25 — 5 6 44 Total non-interest revenues 1,620 430 209 5 (55) 2,209 Interest income (1) 30 5 — 165 — 200 Total revenues 1,650 435 209 170 (55) 2,409 Interest expense (3) (2) — (10) (22) (37) Net revenues $ 1,647 $ 433 $ 209 $ 160 $ (77) $ 2,372 (1) These revenues are generally not in scope of the accounting guidance for revenue from contracts with customers. Three months ended March 31, 2020 $ in millions Private Client Group Capital Markets Asset Management RJ Bank Other and intersegment eliminations Total Revenues: Asset management and related administrative fees $ 833 $ 1 $ 177 $ — $ (5) $ 1,006 Brokerage revenues: Securities commissions: Mutual and other fund products 163 1 2 — — 166 Insurance and annuity products 99 — — — — 99 Equities, ETFs and fixed income products 105 40 — — — 145 Subtotal securities commissions 367 41 2 — — 410 Principal transactions (1) 17 89 — — (1) 105 Total brokerage revenues 384 130 2 — (1) 515 Account and services fees: Mutual fund and annuity service fees 88 — — — — 88 RJBDP fees 99 — — — (48) 51 Client account and other fees 35 2 4 — (8) 33 Total account and service fees 222 2 4 — (56) 172 Investment banking: Merger & acquisition and advisory — 72 — — — 72 Equity underwriting 11 43 — — — 54 Debt underwriting — 22 — — — 22 Total investment banking 11 137 — — — 148 Other: Tax credit fund revenues — 12 — — — 12 All other (1) 7 4 1 5 (44) (27) Total other 7 16 1 5 (44) (15) Total non-interest revenues 1,457 286 184 5 (106) 1,826 Interest income (1) 45 10 — 223 7 285 Total revenues 1,502 296 184 228 (99) 2,111 Interest expense (7) (6) — (18) (12) (43) Net revenues $ 1,495 $ 290 $ 184 $ 210 $ (111) $ 2,068 (1) These revenues are generally not in scope of the accounting guidance for revenue from contracts with customers. Six months ended March 31, 2021 $ in millions Private Client Group Capital Markets Asset Management RJ Bank Other and intersegment eliminations Total Revenues: Asset management and related administrative fees $ 1,864 $ 2 $ 389 $ — $ (15) $ 2,240 Brokerage revenues: Securities commissions: Mutual and other fund products 331 3 5 — (2) 337 Insurance and annuity products 207 — — — — 207 Equities, ETFs and fixed income products 203 77 — — — 280 Subtotal securities commissions 741 80 5 — (2) 824 Principal transactions (1) 25 269 — 1 — 295 Total brokerage revenues 766 349 5 1 (2) 1,119 Account and services fees: Mutual fund and annuity service fees 193 — — — — 193 RJBDP fees 127 1 — — (88) 40 Client account and other fees 74 4 9 — (16) 71 Total account and service fees 394 5 9 — (104) 304 Investment banking: Merger & acquisition and advisory — 271 — — — 271 Equity underwriting 22 127 — — — 149 Debt underwriting — 83 — — — 83 Total investment banking 22 481 — — — 503 Other: Tax credit fund revenues — 40 — — — 40 All other (1) 13 4 1 14 28 60 Total other 13 44 1 14 28 100 Total non-interest revenues 3,059 881 404 15 (93) 4,266 Interest income (1) 60 8 — 333 2 403 Total revenues 3,119 889 404 348 (91) 4,669 Interest expense (5) (4) — (21) (45) (75) Net revenues $ 3,114 $ 885 $ 404 $ 327 $ (136) 4,594 (1) These revenues are generally not in scope of the accounting guidance for revenue from contracts with customers. Six months ended March 31, 2020 $ in millions Private Client Group Capital Markets Asset Management RJ Bank Other and intersegment eliminations Total Revenues: Asset management and related administrative fees $ 1,615 $ 3 $ 353 $ — $ (10) $ 1,961 Brokerage revenues: Securities commissions: Mutual and other fund products 307 4 4 — (1) 314 Insurance and annuity products 200 — — — — 200 Equities, ETFs and fixed income products 190 70 — — (1) 259 Subtotal securities commissions 697 74 4 — (2) 773 Principal transactions (1) 34 171 — — (3) 202 Total brokerage revenues 731 245 4 — (5) 975 Account and services fees: Mutual fund and annuity service fees 178 — 1 — (1) 178 RJBDP fees 204 — — — (95) 109 Client account and other fees 64 3 8 — (12) 63 Total account and service fees 446 3 9 — (108) 350 Investment banking: Merger & acquisition and advisory — 132 — — — 132 Equity underwriting 22 82 — — — 104 Debt underwriting — 53 — — — 53 Total investment banking 22 267 — — — 289 Other: Tax credit fund revenues — 30 — — — 30 All other (1) 16 4 1 11 (48) (16) Total other 16 34 1 11 (48) 14 Total non-interest revenues 2,830 552 367 11 (171) 3,589 Interest income (1) 94 18 1 454 15 582 Total revenues 2,924 570 368 465 (156) 4,171 Interest expense (15) (12) — (39) (28) (94) Net revenues $ 2,909 $ 558 $ 368 $ 426 $ (184) $ 4,077 (1) These revenues are generally not in scope of the accounting guidance for revenue from contracts with customers. |
INTEREST INCOME AND INTEREST _2
INTEREST INCOME AND INTEREST EXPENSE (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Interest Income (Expense), Net [Abstract] | |
Interest Income and Interest Expense | The following table details the components of interest income and interest expense. Three months ended March 31, Six months ended March 31, $ in millions 2021 2020 2021 2020 Interest income: Cash and cash equivalents $ 2 $ 16 $ 6 $ 33 Assets segregated pursuant to regulations 5 11 8 22 Available-for-sale securities 21 19 44 37 Brokerage client receivables 19 21 37 48 Bank loans, net of unearned income and deferred expenses 142 198 287 404 All other 11 20 21 38 Total interest income $ 200 $ 285 $ 403 $ 582 Interest expense: Bank deposits $ 6 $ 12 $ 12 $ 28 Brokerage client payables 1 3 2 6 Other borrowings 5 5 10 10 Senior notes payable 24 19 48 37 All other 1 4 3 13 Total interest expense 37 43 75 94 Net interest income 163 242 328 488 Bank loan (provision)/benefit for credit losses 32 (109) 18 (107) Net interest income after bank loan (provision)/benefit for credit losses $ 195 $ 133 $ 346 $ 381 |
REGULATORY CAPITAL REQUIREMEN_2
REGULATORY CAPITAL REQUIREMENTS (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Raymond James Financial Inc | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |
Summary of Minimum Requirements Under Regulatory Framework | To meet requirements for capital adequacy purposes or to be categorized as “well-capitalized,” RJF must maintain minimum CET1, Tier 1 capital, Total capital and Tier 1 leverage amounts and ratios as set forth in the following table. Actual Requirement for capital To be well-capitalized $ in millions Amount Ratio Amount Ratio Amount Ratio RJF as of March 31, 2021: CET1 $ 6,787 23.6 % $ 1,296 4.5 % $ 1,872 6.5 % Tier 1 capital $ 6,787 23.6 % $ 1,728 6.0 % $ 2,304 8.0 % Total capital $ 7,120 24.7 % $ 2,304 8.0 % $ 2,880 10.0 % Tier 1 leverage $ 6,787 12.2 % $ 2,218 4.0 % $ 2,773 5.0 % RJF as of September 30, 2020: CET1 $ 6,490 24.2 % $ 1,208 4.5 % $ 1,744 6.5 % Tier 1 capital $ 6,490 24.2 % $ 1,610 6.0 % $ 2,147 8.0 % Total capital $ 6,804 25.4 % $ 2,147 8.0 % $ 2,684 10.0 % Tier 1 leverage $ 6,490 14.2 % $ 1,824 4.0 % $ 2,280 5.0 % |
RJ Bank | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |
Summary of Minimum Requirements Under Regulatory Framework | To meet the requirements for capital adequacy or to be categorized as “well-capitalized,” RJ Bank, N.A. must maintain CET1, Tier 1 capital, Total capital and Tier 1 leverage amounts and ratios as set forth in the following table. Actual Requirement for capital To be well-capitalized $ in millions Amount Ratio Amount Ratio Amount Ratio RJ Bank, N.A. as of March 31, 2021: CET1 $ 2,442 13.1 % $ 838 4.5 % $ 1,210 6.5 % Tier 1 capital $ 2,442 13.1 % $ 1,117 6.0 % $ 1,489 8.0 % Total capital $ 2,676 14.4 % $ 1,489 8.0 % $ 1,862 10.0 % Tier 1 leverage $ 2,442 7.5 % $ 1,296 4.0 % $ 1,620 5.0 % RJ Bank, N.A. as of September 30, 2020: CET1 $ 2,279 13.0 % $ 788 4.5 % $ 1,138 6.5 % Tier 1 capital $ 2,279 13.0 % $ 1,051 6.0 % $ 1,401 8.0 % Total capital $ 2,500 14.3 % $ 1,401 8.0 % $ 1,751 10.0 % Tier 1 leverage $ 2,279 7.7 % $ 1,183 4.0 % $ 1,479 5.0 % |
Raymond James & Associates Inc | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |
Net Capital and Risk Adjusted Capital Positions of Certain Businesses and Subsidiaries | The following table presents the net capital position of RJ&A. $ in millions March 31, 2021 September 30, 2020 Raymond James & Associates, Inc. : (Alternative Method elected) Net capital as a percent of aggregate debit items 61.5 % 48.0 % Net capital $ 1,644 $ 1,245 Less: required net capital (53) (52) Excess net capital $ 1,591 $ 1,193 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table presents the computation of basic and diluted earnings per common share. Three months ended March 31, Six months ended March 31, in millions, except per share amounts 2021 2020 2021 2020 Income for basic earnings per common share: Net income $ 355 $ 169 $ 667 $ 437 Less allocation of earnings and dividends to participating securities — — (1) (1) Net income attributable to RJF common shareholders $ 355 $ 169 $ 666 $ 436 Income for diluted earnings per common share: Net income $ 355 $ 169 $ 667 $ 437 Less allocation of earnings and dividends to participating securities — — (1) (1) Net income attributable to RJF common shareholders $ 355 $ 169 $ 666 $ 436 Common shares: Average common shares in basic computation 137.8 138.4 137.3 138.4 Dilutive effect of outstanding stock options and certain RSUs 3.4 2.7 3.1 2.9 Average common shares used in diluted computation 141.2 141.1 140.4 141.3 Earnings per common share: Basic $ 2.58 $ 1.22 $ 4.85 $ 3.15 Diluted $ 2.51 $ 1.20 $ 4.74 $ 3.09 Stock options and certain RSUs excluded from weighted-average diluted common shares because their effect would be antidilutive 0.1 0.7 0.2 0.6 |
Dividends per Common Share Declared and Paid | Dividends per common share declared and paid are detailed in the following table for each respective period. Three months ended March 31, Six months ended March 31, 2021 2020 2021 2020 Dividends per common share - declared $ 0.39 $ 0.37 $ 0.78 $ 0.74 Dividends per common share - paid $ 0.39 $ 0.37 $ 0.76 $ 0.71 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenue from Segments to Consolidated | The following table presents information concerning operations in these segments. Three months ended March 31, Six months ended March 31, $ in millions 2021 2020 2021 2020 Net revenues: Private Client Group $ 1,647 $ 1,495 $ 3,114 $ 2,909 Capital Markets 433 290 885 558 Asset Management 209 184 404 368 RJ Bank 160 210 327 426 Other (12) (44) (8) (52) Intersegment eliminations (65) (67) (128) (132) Total net revenues $ 2,372 $ 2,068 $ 4,594 $ 4,077 Pre-tax income/(loss): Private Client Group $ 192 $ 170 $ 332 $ 323 Capital Markets 105 28 234 57 Asset Management 87 73 170 146 RJ Bank 111 14 182 149 Other (48) (46) (72) (77) Total pre-tax income $ 447 $ 239 $ 846 $ 598 |
Reconciliation of Net Income (Loss) from Segments to Consolidated | The following table presents information concerning operations in these segments. Three months ended March 31, Six months ended March 31, $ in millions 2021 2020 2021 2020 Net revenues: Private Client Group $ 1,647 $ 1,495 $ 3,114 $ 2,909 Capital Markets 433 290 885 558 Asset Management 209 184 404 368 RJ Bank 160 210 327 426 Other (12) (44) (8) (52) Intersegment eliminations (65) (67) (128) (132) Total net revenues $ 2,372 $ 2,068 $ 4,594 $ 4,077 Pre-tax income/(loss): Private Client Group $ 192 $ 170 $ 332 $ 323 Capital Markets 105 28 234 57 Asset Management 87 73 170 146 RJ Bank 111 14 182 149 Other (48) (46) (72) (77) Total pre-tax income $ 447 $ 239 $ 846 $ 598 |
Reconciliation of Other Significant Items from Segments to Consolidated | The following table presents our net interest income on a segment basis. Three months ended March 31, Six months ended March 31, $ in millions 2021 2020 2021 2020 Net interest income/(expense): Private Client Group $ 27 $ 38 $ 55 $ 79 Capital Markets 3 4 4 6 Asset Management — — — 1 RJ Bank 155 205 312 415 Other (22) (5) (43) (13) Net interest income $ 163 $ 242 $ 328 $ 488 The following table presents goodwill, which was included in our total assets, on a segment basis. $ in millions March 31, 2021 September 30, 2020 Goodwill: Private Client Group (1) $ 417 $ 277 Capital Markets (2) 150 120 Asset Management 69 69 Total $ 636 $ 466 (1) The balance includes $139 million of goodwill arising from our acquisition of NWPS in December 2020. (2) The balance includes a provisional estimate of $30 million of goodwill arising from our acquisition of Financo in March 2021. |
Reconciliation of Total Assets from Segment to Consolidated | The following table presents our total assets on a segment basis. $ in millions March 31, 2021 September 30, 2020 Total assets: Private Client Group $ 18,338 $ 12,574 Capital Markets 2,334 2,336 Asset Management 369 380 RJ Bank 33,010 30,356 Other 2,015 1,836 Total $ 56,066 $ 47,482 |
Revenues, Income Before Provision for Income Taxes and Excluding Noncontrolling Interests, and Total Assets, Classified by Major Geographic Areas | The following table presents our net revenues and pre-tax income classified by major geographic area in which they were earned. Three months ended March 31, Six months ended March 31, $ in millions 2021 2020 2021 2020 Net revenues: U.S. $ 2,194 $ 1,920 $ 4,273 $ 3,795 Canada 130 112 235 207 Europe 48 36 86 75 Total $ 2,372 $ 2,068 $ 4,594 $ 4,077 Pre-tax income/(loss): U.S. $ 415 $ 227 $ 812 $ 579 Canada 25 13 26 21 Europe 7 (1) 8 (2) Total $ 447 $ 239 $ 846 $ 598 The following table presents our total assets by major geographic area in which they were held. $ in millions March 31, 2021 September 30, 2020 Total assets: U.S. $ 52,349 $ 44,090 Canada 3,581 3,260 Europe 136 132 Total $ 56,066 $ 47,482 |
Long-lived Assets by Geographic Areas | The following table presents goodwill, which was included in our total assets, classified by major geographic area in which it was held. $ in millions March 31, 2021 September 30, 2020 Goodwill: U.S. (1) $ 602 $ 433 Canada 25 24 Europe 9 9 Total $ 636 $ 466 (1) The balance includes $139 million of goodwill arising from our acquisition of NWPS in December 2020 and a provisional estimate of $30 million of goodwill arising from our acquisition of Financo in March 2021. |
ORGANIZATION AND BASIS OF PRE_2
ORGANIZATION AND BASIS OF PRESENTATION (Details) | Mar. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Percent ownership of subsidiaries that are consolidated (in hundredths) | 100.00% |
UPDATE OF SIGNIFICANT ACCOUNT_3
UPDATE OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Millions | 6 Months Ended | ||||||
Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Oct. 01, 2019 | Sep. 30, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Due from related party, allowance for credit loss | $ 28 | $ 4 | |||||
Allowance for credit loss | 345 | 354 | $ 345 | ||||
Unfunded lending commitments | 17 | $ 20 | 12 | ||||
Retained earnings reduction | (7,637) | (7,176) | $ (6,834) | ||||
Loans held for investment | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for credit loss | $ 345 | 378 | 354 | 324 | $ 216 | $ 218 | |
C&I and REIT Loans | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Reversion period | 1 year | ||||||
CRE and Residential Mortgage Loans | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Reversion period, completion | 5 years | ||||||
Minimum | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Repayment term | 5 years | ||||||
Forecast period | 2 years | ||||||
Minimum | CRE and Residential Mortgage Loans | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Reversion period | 2 years | ||||||
Maximum | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Repayment term | 10 years | ||||||
Forecast period | 3 years | ||||||
Maximum | CRE and Residential Mortgage Loans | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Reversion period | 3 years | ||||||
Retained earnings | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Retained earnings reduction | $ (7,004) | (6,702) | (6,484) | $ (6,205) | (6,086) | (5,874) | |
Cumulative Effect, Period of Adoption, Adjustment | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowances for credit losses, including unfunded lending commitments | 42 | ||||||
Due from related party, allowance for credit loss | 25 | ||||||
Allowance for credit loss | $ 33 | $ 18 | |||||
Unfunded lending commitments | 8 | ||||||
Cumulative Effect, Period of Adoption, Adjustment | Loans held for investment | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for credit loss | 9 | ||||||
Cumulative Effect, Period of Adoption, Adjustment | Retained earnings | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Retained earnings reduction | $ 0 | $ 35 | $ 0 | $ 0 |
ACQUISITIONS (Details)
ACQUISITIONS (Details) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2021 | |
NWPS | |||
Business Acquisition [Line Items] | |||
Goodwill, acquired during period | $ 139 | ||
Intangible assets acquired | $ 96 | ||
Intangible asset useful life | 24 years 9 months 18 days | ||
Financo | |||
Business Acquisition [Line Items] | |||
Goodwill, acquired during period | $ 30 | ||
Intangible assets acquired | $ 9 | ||
Intangible asset useful life | 9 months | ||
Tax deductible period | 15 years |
FAIR VALUE, Recurring Fair Valu
FAIR VALUE, Recurring Fair Value Measurements (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Sep. 30, 2020 |
Assets at fair value on a recurring basis: | ||
Available-for-sale securities | $ 8,158 | $ 7,650 |
Derivative assets, gross | 415 | 573 |
Amount of derivative assets offset | (111) | (135) |
Net amounts presented on the Condensed Consolidated Statements of Financial Condition | 304 | 438 |
Liabilities at fair value on a recurring basis: | ||
Derivative liabilities | 393 | 505 |
Total amounts offset | (69) | (112) |
Net amounts presented on the Condensed Consolidated Statements of Financial Condition | 324 | 393 |
Recurring | ||
Assets at fair value on a recurring basis: | ||
Assets segregated pursuant to regulations | 5,250 | |
Total debt securities | 506 | 468 |
Equity securities | 14 | 16 |
Brokered certificates of deposit | 42 | 17 |
Trading Securities, Other Security | 5 | 12 |
Total trading assets | 567 | 513 |
Available-for-sale securities | 8,158 | 7,650 |
Amount of derivative assets offset | (111) | (135) |
Net amounts presented on the Condensed Consolidated Statements of Financial Condition | 304 | 438 |
Other | 230 | 218 |
Total assets at fair value on a recurring basis | 14,649 | 8,935 |
Netting adjustments | (111) | (135) |
Liabilities at fair value on a recurring basis: | ||
Total debt securities | 167 | 144 |
Equity securities | 44 | 96 |
Other | 1 | |
Total trading instruments sold but not yet purchased | 212 | 240 |
Net amounts presented on the Condensed Consolidated Statements of Financial Condition | 324 | 393 |
Netting adjustments | (69) | (112) |
Total liabilities at fair value on a recurring basis | 536 | 633 |
Recurring | Interest rate | ||
Assets at fair value on a recurring basis: | ||
Interest rate - matched book | 201 | 333 |
Amount of derivative assets offset | (111) | (135) |
Net amounts presented on the Condensed Consolidated Statements of Financial Condition | 102 | 105 |
Liabilities at fair value on a recurring basis: | ||
Matched book | 201 | 333 |
Total amounts offset | (69) | (112) |
Net amounts presented on the Condensed Consolidated Statements of Financial Condition | 116 | 49 |
Recurring | Foreign exchange | ||
Assets at fair value on a recurring basis: | ||
Net amounts presented on the Condensed Consolidated Statements of Financial Condition | 1 | |
Liabilities at fair value on a recurring basis: | ||
Net amounts presented on the Condensed Consolidated Statements of Financial Condition | 3 | 5 |
Recurring | Other | ||
Liabilities at fair value on a recurring basis: | ||
Net amounts presented on the Condensed Consolidated Statements of Financial Condition | 4 | 6 |
Recurring | Municipal and provincial obligations | ||
Liabilities at fair value on a recurring basis: | ||
Total debt securities | 1 | 1 |
Recurring | Corporate obligations | ||
Liabilities at fair value on a recurring basis: | ||
Total debt securities | 22 | 5 |
Recurring | Government and agency obligations | ||
Liabilities at fair value on a recurring basis: | ||
Total debt securities | 122 | 136 |
Recurring | Agency MBS and agency CMOs | ||
Liabilities at fair value on a recurring basis: | ||
Total debt securities | 22 | |
Recurring | Non Agency CMOs And ABS | ||
Liabilities at fair value on a recurring basis: | ||
Total debt securities | 2 | |
Recurring | Municipal and provincial obligations | ||
Assets at fair value on a recurring basis: | ||
Total debt securities | 160 | 125 |
Recurring | Corporate obligations | ||
Assets at fair value on a recurring basis: | ||
Total debt securities | 40 | 56 |
Recurring | Government and agency obligations | ||
Assets at fair value on a recurring basis: | ||
Total debt securities | 107 | 144 |
Other | 105 | 103 |
Recurring | Agency MBS and agency CMOs | ||
Assets at fair value on a recurring basis: | ||
Total debt securities | 193 | 130 |
Recurring | Non-agency CMOs and asset-backed securities (“ABS”) | ||
Assets at fair value on a recurring basis: | ||
Total debt securities | 6 | 13 |
Recurring | Other assets | ||
Assets at fair value on a recurring basis: | ||
Other | 125 | 115 |
Recurring | Assets at Fair Value on a Recurring Basis, Before Investments Measured at NAV | ||
Assets at fair value on a recurring basis: | ||
Total assets at fair value on a recurring basis | 14,561 | 8,856 |
Recurring | Private equity investments | ||
Assets at fair value on a recurring basis: | ||
Private equity investments not measured at NAV | 52 | 37 |
Private equity investments measured at NAV | 88 | 79 |
Recurring | Level 1 | ||
Assets at fair value on a recurring basis: | ||
Assets segregated pursuant to regulations | 5,250 | |
Total debt securities | 23 | 29 |
Equity securities | 13 | 11 |
Brokered certificates of deposit | 0 | 0 |
Trading Securities, Other Security | 0 | 0 |
Total trading assets | 36 | 40 |
Available-for-sale securities | 15 | 16 |
Derivative assets, gross | 70 | 16 |
Other | 205 | 195 |
Total assets at fair value on a recurring basis | 5,576 | 267 |
Liabilities at fair value on a recurring basis: | ||
Total debt securities | 123 | 137 |
Equity securities | 44 | 96 |
Other | 0 | |
Total trading instruments sold but not yet purchased | 167 | 233 |
Derivative contracts liability, gross | 64 | 16 |
Total liabilities at fair value on a recurring basis | 231 | 249 |
Recurring | Level 1 | Interest rate | ||
Assets at fair value on a recurring basis: | ||
Interest rate - matched book | 0 | 0 |
Derivative assets, gross | 70 | 16 |
Liabilities at fair value on a recurring basis: | ||
Matched book | 0 | 0 |
Derivative liabilities | 64 | 16 |
Recurring | Level 1 | Foreign exchange | ||
Assets at fair value on a recurring basis: | ||
Derivative assets, gross | 0 | |
Liabilities at fair value on a recurring basis: | ||
Derivative contracts liability, gross | 0 | 0 |
Recurring | Level 1 | Other | ||
Liabilities at fair value on a recurring basis: | ||
Derivative liabilities | 0 | 0 |
Recurring | Level 1 | Municipal and provincial obligations | ||
Liabilities at fair value on a recurring basis: | ||
Total debt securities | 1 | 1 |
Recurring | Level 1 | Corporate obligations | ||
Liabilities at fair value on a recurring basis: | ||
Total debt securities | 0 | 0 |
Recurring | Level 1 | Government and agency obligations | ||
Liabilities at fair value on a recurring basis: | ||
Total debt securities | 122 | 136 |
Recurring | Level 1 | Agency MBS and agency CMOs | ||
Liabilities at fair value on a recurring basis: | ||
Total debt securities | 0 | |
Recurring | Level 1 | Non Agency CMOs And ABS | ||
Liabilities at fair value on a recurring basis: | ||
Total debt securities | 0 | |
Recurring | Level 1 | Municipal and provincial obligations | ||
Assets at fair value on a recurring basis: | ||
Total debt securities | 1 | 5 |
Recurring | Level 1 | Corporate obligations | ||
Assets at fair value on a recurring basis: | ||
Total debt securities | 9 | 11 |
Recurring | Level 1 | Government and agency obligations | ||
Assets at fair value on a recurring basis: | ||
Total debt securities | 13 | 13 |
Other | 105 | 103 |
Recurring | Level 1 | Agency MBS and agency CMOs | ||
Assets at fair value on a recurring basis: | ||
Total debt securities | 0 | 0 |
Recurring | Level 1 | Non-agency CMOs and asset-backed securities (“ABS”) | ||
Assets at fair value on a recurring basis: | ||
Total debt securities | 0 | 0 |
Recurring | Level 1 | Other assets | ||
Assets at fair value on a recurring basis: | ||
Other | 100 | 92 |
Recurring | Level 1 | Private equity investments | ||
Assets at fair value on a recurring basis: | ||
Private equity investments not measured at NAV | 0 | 0 |
Recurring | Level 2 | ||
Assets at fair value on a recurring basis: | ||
Assets segregated pursuant to regulations | 0 | |
Total debt securities | 483 | 439 |
Equity securities | 1 | 5 |
Brokered certificates of deposit | 42 | 17 |
Trading Securities, Other Security | 0 | 0 |
Total trading assets | 526 | 461 |
Available-for-sale securities | 8,143 | 7,634 |
Derivative assets, gross | 345 | 557 |
Other | 2 | 1 |
Total assets at fair value on a recurring basis | 9,016 | 8,653 |
Liabilities at fair value on a recurring basis: | ||
Total debt securities | 44 | 7 |
Equity securities | 0 | 0 |
Other | 0 | |
Total trading instruments sold but not yet purchased | 44 | 7 |
Derivative contracts liability, gross | 325 | 484 |
Total liabilities at fair value on a recurring basis | 369 | 491 |
Recurring | Level 2 | Interest rate | ||
Assets at fair value on a recurring basis: | ||
Interest rate - matched book | 201 | 333 |
Derivative assets, gross | 143 | 224 |
Liabilities at fair value on a recurring basis: | ||
Matched book | 201 | 333 |
Derivative liabilities | 121 | 145 |
Recurring | Level 2 | Foreign exchange | ||
Assets at fair value on a recurring basis: | ||
Derivative assets, gross | 1 | |
Liabilities at fair value on a recurring basis: | ||
Derivative liabilities | 3 | 5 |
Recurring | Level 2 | Other | ||
Liabilities at fair value on a recurring basis: | ||
Derivative liabilities | 0 | 1 |
Recurring | Level 2 | Municipal and provincial obligations | ||
Liabilities at fair value on a recurring basis: | ||
Total debt securities | 0 | 0 |
Recurring | Level 2 | Corporate obligations | ||
Liabilities at fair value on a recurring basis: | ||
Total debt securities | 22 | 5 |
Recurring | Level 2 | Government and agency obligations | ||
Liabilities at fair value on a recurring basis: | ||
Total debt securities | 0 | 0 |
Recurring | Level 2 | Agency MBS and agency CMOs | ||
Liabilities at fair value on a recurring basis: | ||
Total debt securities | 22 | |
Recurring | Level 2 | Non Agency CMOs And ABS | ||
Liabilities at fair value on a recurring basis: | ||
Total debt securities | 2 | |
Recurring | Level 2 | Municipal and provincial obligations | ||
Assets at fair value on a recurring basis: | ||
Total debt securities | 159 | 120 |
Recurring | Level 2 | Corporate obligations | ||
Assets at fair value on a recurring basis: | ||
Total debt securities | 31 | 45 |
Recurring | Level 2 | Government and agency obligations | ||
Assets at fair value on a recurring basis: | ||
Total debt securities | 94 | 131 |
Other | 0 | 0 |
Recurring | Level 2 | Agency MBS and agency CMOs | ||
Assets at fair value on a recurring basis: | ||
Total debt securities | 193 | 130 |
Recurring | Level 2 | Non-agency CMOs and asset-backed securities (“ABS”) | ||
Assets at fair value on a recurring basis: | ||
Total debt securities | 6 | 13 |
Recurring | Level 2 | Other assets | ||
Assets at fair value on a recurring basis: | ||
Other | 2 | 1 |
Recurring | Level 2 | Private equity investments | ||
Assets at fair value on a recurring basis: | ||
Private equity investments not measured at NAV | 0 | 0 |
Recurring | Level 3 | ||
Assets at fair value on a recurring basis: | ||
Assets segregated pursuant to regulations | 0 | |
Total debt securities | 0 | 0 |
Equity securities | 0 | 0 |
Brokered certificates of deposit | 0 | 0 |
Trading Securities, Other Security | 5 | 12 |
Total trading assets | 5 | 12 |
Available-for-sale securities | 0 | 0 |
Derivative assets, gross | 0 | 0 |
Other | 23 | 22 |
Total assets at fair value on a recurring basis | 80 | 71 |
Liabilities at fair value on a recurring basis: | ||
Total debt securities | 0 | 0 |
Equity securities | 0 | 0 |
Other | 1 | |
Total trading instruments sold but not yet purchased | 1 | 0 |
Derivative contracts liability, gross | 4 | 5 |
Total liabilities at fair value on a recurring basis | 5 | 5 |
Recurring | Level 3 | Interest rate | ||
Assets at fair value on a recurring basis: | ||
Interest rate - matched book | 0 | 0 |
Derivative assets, gross | 0 | 0 |
Liabilities at fair value on a recurring basis: | ||
Matched book | 0 | 0 |
Derivative liabilities | 0 | 0 |
Recurring | Level 3 | Foreign exchange | ||
Assets at fair value on a recurring basis: | ||
Derivative assets, gross | 0 | |
Liabilities at fair value on a recurring basis: | ||
Derivative contracts liability, gross | 0 | 0 |
Recurring | Level 3 | Other | ||
Liabilities at fair value on a recurring basis: | ||
Derivative liabilities | 4 | 5 |
Recurring | Level 3 | Municipal and provincial obligations | ||
Liabilities at fair value on a recurring basis: | ||
Total debt securities | 0 | 0 |
Recurring | Level 3 | Corporate obligations | ||
Liabilities at fair value on a recurring basis: | ||
Total debt securities | 0 | 0 |
Recurring | Level 3 | Government and agency obligations | ||
Liabilities at fair value on a recurring basis: | ||
Total debt securities | 0 | 0 |
Recurring | Level 3 | Agency MBS and agency CMOs | ||
Liabilities at fair value on a recurring basis: | ||
Total debt securities | 0 | |
Recurring | Level 3 | Non Agency CMOs And ABS | ||
Liabilities at fair value on a recurring basis: | ||
Total debt securities | 0 | |
Recurring | Level 3 | Municipal and provincial obligations | ||
Assets at fair value on a recurring basis: | ||
Total debt securities | 0 | 0 |
Recurring | Level 3 | Corporate obligations | ||
Assets at fair value on a recurring basis: | ||
Total debt securities | 0 | 0 |
Recurring | Level 3 | Government and agency obligations | ||
Assets at fair value on a recurring basis: | ||
Total debt securities | 0 | 0 |
Other | 0 | 0 |
Recurring | Level 3 | Agency MBS and agency CMOs | ||
Assets at fair value on a recurring basis: | ||
Total debt securities | 0 | 0 |
Recurring | Level 3 | Non-agency CMOs and asset-backed securities (“ABS”) | ||
Assets at fair value on a recurring basis: | ||
Total debt securities | 0 | 0 |
Recurring | Level 3 | Other assets | ||
Assets at fair value on a recurring basis: | ||
Other | 23 | 22 |
Recurring | Level 3 | Private equity investments | ||
Assets at fair value on a recurring basis: | ||
Private equity investments not measured at NAV | $ 52 | $ 37 |
FAIR VALUE, Level 3 Financial A
FAIR VALUE, Level 3 Financial Assets and Liabilities, Roll Forward (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Sep. 30, 2020 | |
Percentage of instruments measured at fair value on a recurring basis | |||||
Instruments measured at fair value, percentage of assets (in hundredths) | 26.00% | 26.00% | 19.00% | ||
Instruments measured at fair value, percentage of liabilities (in hundredths) | 1.00% | 1.00% | 2.00% | ||
Instruments measured at fair value, level 3, percentage of assets (in hundredths) | 1.00% | 1.00% | 1.00% | ||
Trading liabilities | Other | |||||
Changes in Level 3 recurring fair value measurements, liabilities [Roll Forward] | |||||
Fair value beginning of period | $ 0 | $ (1) | $ 0 | $ (1) | |
Total gains/(losses) included in earnings | (1) | 0 | (1) | 0 | |
Purchases and contributions | 0 | 1 | 0 | 2 | |
Sales and distributions | 0 | 0 | 0 | (1) | |
Transfers: | |||||
Into Level 3 | 0 | 0 | 0 | 0 | |
Out of Level 3 | 0 | 0 | 0 | 0 | |
Fair value end of period | (1) | 0 | (1) | 0 | |
Unrealized gains/(losses) for the period included in earnings for instruments held at the end of the reporting period | (1) | 0 | (1) | 0 | |
Derivative liabilities | Other | |||||
Changes in Level 3 recurring fair value measurements, liabilities [Roll Forward] | |||||
Fair value beginning of period | (1) | (5) | |||
Total gains/(losses) included in earnings | (3) | 1 | |||
Purchases and contributions | 0 | 0 | |||
Sales and distributions | 0 | 0 | |||
Transfers: | |||||
Into Level 3 | 0 | 0 | |||
Out of Level 3 | 0 | 0 | |||
Fair value end of period | (4) | (4) | |||
Unrealized gains/(losses) for the period included in earnings for instruments held at the end of the reporting period | (3) | 1 | |||
Trading assets | Trading assets | |||||
Changes in Level 3 recurring fair value measurements, assets [Roll Forward] | |||||
Fair value beginning of period | 3 | 19 | 12 | 3 | |
Total gains/(losses) included in earnings | (2) | 3 | 0 | 3 | |
Purchases and contributions | 10 | 22 | 16 | 53 | |
Sales and distributions | (6) | (23) | (23) | (38) | |
Transfers: | |||||
Into Level 3 | 0 | 0 | 0 | 0 | |
Out of Level 3 | 0 | 0 | 0 | 0 | |
Fair value end of period | 5 | 21 | 5 | 21 | |
Unrealized gains/(losses) for the period included in earnings for instruments held at the end of the reporting period | 0 | 5 | 0 | 5 | |
Private equity and other investments | Private equity investments | |||||
Changes in Level 3 recurring fair value measurements, assets [Roll Forward] | |||||
Fair value beginning of period | 52 | 62 | 37 | 63 | |
Total gains/(losses) included in earnings | 0 | (32) | 15 | (32) | |
Purchases and contributions | 0 | 0 | 0 | 0 | |
Sales and distributions | 0 | 0 | 0 | (1) | |
Transfers: | |||||
Into Level 3 | 0 | 0 | 0 | 0 | |
Out of Level 3 | 0 | 0 | 0 | 0 | |
Fair value end of period | 52 | 30 | 52 | 30 | |
Unrealized gains/(losses) for the period included in earnings for instruments held at the end of the reporting period | 0 | (32) | 15 | (32) | |
Private equity and other investments | Private equity investments | Other Expense | |||||
Changes in Level 3 recurring fair value measurements, assets [Roll Forward] | |||||
Total gains/(losses) included in earnings | (20) | (20) | |||
Private equity and other investments | All other | |||||
Changes in Level 3 recurring fair value measurements, assets [Roll Forward] | |||||
Fair value beginning of period | 22 | 24 | 22 | 24 | |
Total gains/(losses) included in earnings | 1 | (2) | 1 | (2) | |
Purchases and contributions | 0 | 0 | 0 | 0 | |
Sales and distributions | 0 | 0 | 0 | 0 | |
Transfers: | |||||
Into Level 3 | 0 | 0 | 0 | 0 | |
Out of Level 3 | 0 | 0 | 0 | 0 | |
Fair value end of period | 23 | 22 | 23 | 22 | |
Unrealized gains/(losses) for the period included in earnings for instruments held at the end of the reporting period | $ 1 | $ (2) | $ 1 | $ (2) |
FAIR VALUE, Significant Assumpt
FAIR VALUE, Significant Assumptions Used in Valuation of Level 3 Financial Instruments (Details) - Recurring $ in Millions | Mar. 31, 2021USD ($) | Sep. 30, 2020USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets at fair value on a recurring basis | $ 14,649 | $ 8,935 |
Level 3 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets at fair value on a recurring basis | 80 | 71 |
Private equity investments | Level 3 | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets at fair value on a recurring basis | $ 52 | $ 37 |
Discount rate | Private equity investments | Level 3 | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Discount rate / multiple applied to revenue | 25 | 25 |
EBITDA Multiple | Private equity investments | Level 3 | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Discount rate / multiple applied to revenue | 9 | 9 |
FAIR VALUE, Investments in Priv
FAIR VALUE, Investments in Private Equity Measured at Net Asset Value Per Share (Details) - Private equity investments - Recurring - USD ($) $ in Millions | Mar. 31, 2021 | Sep. 30, 2020 |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Private equity investments measured at NAV | $ 88 | $ 79 |
Private equity investments not measured at NAV | 52 | 37 |
Total private equity investments | 140 | 116 |
Total equity attributable to Raymond James Financial, Inc. | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Unfunded commitment | 9 | 9 |
Total private equity investments | 105 | 90 |
Noncontrolling interests | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Total private equity investments | $ 35 | $ 26 |
FAIR VALUE, Financial Instrumen
FAIR VALUE, Financial Instruments Measured at Fair Value on a Nonrecurring Basis (Details) - Nonrecurring - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Sep. 30, 2020 | |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Other assets: other real estate owned | $ 1 | |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Other assets: other real estate owned | 1 | |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Other assets: other real estate owned | 0 | |
Loans held for sale | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Bank loans, net | $ 151 | 38 |
Loans held for sale | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Bank loans, net | 151 | 38 |
Loans held for sale | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Bank loans, net | 0 | 0 |
Discounted cash flow | Bank loans: impaired loans - residential | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Bank loans, net | 15 | 17 |
Discounted cash flow | Bank loans: impaired loans - residential | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Bank loans, net | 4 | 4 |
Discounted cash flow | Bank loans: impaired loans - residential | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Bank loans, net | 11 | 13 |
Collateral or discounted cash flow | Bank loans: impaired loans - corporate | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Bank loans, net | 13 | 15 |
Collateral or discounted cash flow | Bank loans: impaired loans - corporate | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Bank loans, net | 0 | 0 |
Collateral or discounted cash flow | Bank loans: impaired loans - corporate | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Bank loans, net | $ 13 | $ 15 |
Minimum | Discounted cash flow | Bank loans: impaired loans - residential | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Prepayment term | 7 years | 7 years |
Maximum | Discounted cash flow | Bank loans: impaired loans - residential | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Prepayment term | 12 years | 12 years |
Weighted average | Discounted cash flow | Bank loans: impaired loans - residential | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Prepayment term | 10 years 6 months | 10 years 7 months 6 days |
FAIR VALUE, Carrying Amounts an
FAIR VALUE, Carrying Amounts and Estimated Fair Value of Financial Instruments Not Carried at Fair Value (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Sep. 30, 2020 |
Carrying amount | ||
Financial assets: | ||
Bank loans, net | $ 22,700 | $ 21,125 |
Financial liabilities: | ||
Bank deposits - certificates of deposit | 889 | 1,017 |
Senior notes payable | 2,045 | 2,045 |
Recurring | Total estimated fair value | ||
Financial assets: | ||
Bank loans, net | 22,570 | 21,191 |
Financial liabilities: | ||
Bank deposits - certificates of deposit | 917 | 1,056 |
Senior notes payable | 2,400 | 2,504 |
Recurring | Level 2 | Total estimated fair value | ||
Financial assets: | ||
Bank loans, net | 52 | 72 |
Financial liabilities: | ||
Bank deposits - certificates of deposit | 0 | 0 |
Senior notes payable | 2,400 | 2,504 |
Recurring | Level 3 | Total estimated fair value | ||
Financial assets: | ||
Bank loans, net | 22,518 | 21,119 |
Financial liabilities: | ||
Bank deposits - certificates of deposit | 917 | 1,056 |
Senior notes payable | $ 0 | $ 0 |
AVAILABLE-FOR-SALE SECURITIES,
AVAILABLE-FOR-SALE SECURITIES, Amortized Cost and Fair Values of AFS Securities (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Sep. 30, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities | $ 8,158 | $ 7,650 |
RJ Bank | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost basis | 8,164 | 7,531 |
Gross unrealized gains | 78 | 124 |
Gross unrealized losses | (84) | (5) |
Available-for-sale securities | 8,158 | 7,650 |
RJ Bank | Agency residential MBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost basis | 4,762 | 4,064 |
Gross unrealized gains | 53 | 74 |
Gross unrealized losses | (31) | (3) |
Available-for-sale securities | 4,784 | 4,135 |
RJ Bank | Agency commercial MBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost basis | 1,194 | 948 |
Gross unrealized gains | 10 | 22 |
Gross unrealized losses | (36) | (1) |
Available-for-sale securities | 1,168 | 969 |
RJ Bank | Agency CMOs | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost basis | 2,193 | 2,504 |
Gross unrealized gains | 15 | 27 |
Gross unrealized losses | (17) | (1) |
Available-for-sale securities | 2,191 | 2,530 |
RJ Bank | Other securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost basis | 15 | 15 |
Gross unrealized gains | 0 | 1 |
Gross unrealized losses | 0 | 0 |
Available-for-sale securities | $ 15 | $ 16 |
AVAILABLE-FOR-SALE SECURITIES_2
AVAILABLE-FOR-SALE SECURITIES, Contractual Maturities (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Sep. 30, 2020 |
Carrying value | ||
Total | $ 8,158 | $ 7,650 |
RJ Bank | ||
Amortized cost | ||
Within one year | 42 | |
After one but within five years | 244 | |
After five but within ten years | 2,730 | |
After ten years | 5,148 | |
Cost basis | 8,164 | 7,531 |
Carrying value | ||
Within one year | 42 | |
After one but within five years | 250 | |
After five but within ten years | 2,725 | |
After ten years | 5,141 | |
Total | $ 8,158 | 7,650 |
Weighted-average yield | ||
Within one year (in hundredths) | 2.10% | |
After one but within five years (in hundredths) | 2.14% | |
After five but within ten years (in hundredths) | 1.27% | |
After ten years (in hundredths) | 1.03% | |
Total (in hundredths) | 1.15% | |
RJ Bank | Agency residential MBS | ||
Amortized cost | ||
Within one year | $ 0 | |
After one but within five years | 45 | |
After five but within ten years | 1,811 | |
After ten years | 2,906 | |
Cost basis | 4,762 | 4,064 |
Carrying value | ||
Within one year | 0 | |
After one but within five years | 47 | |
After five but within ten years | 1,834 | |
After ten years | 2,903 | |
Total | 4,784 | 4,135 |
RJ Bank | Agency commercial MBS | ||
Amortized cost | ||
Within one year | 42 | |
After one but within five years | 191 | |
After five but within ten years | 856 | |
After ten years | 105 | |
Cost basis | 1,194 | 948 |
Carrying value | ||
Within one year | 42 | |
After one but within five years | 195 | |
After five but within ten years | 827 | |
After ten years | 104 | |
Total | 1,168 | 969 |
RJ Bank | Agency CMOs | ||
Amortized cost | ||
Within one year | 0 | |
After one but within five years | 1 | |
After five but within ten years | 55 | |
After ten years | 2,137 | |
Cost basis | 2,193 | 2,504 |
Carrying value | ||
Within one year | 0 | |
After one but within five years | 1 | |
After five but within ten years | 56 | |
After ten years | 2,134 | |
Total | 2,191 | 2,530 |
RJ Bank | Other securities | ||
Amortized cost | ||
Within one year | 0 | |
After one but within five years | 7 | |
After five but within ten years | 8 | |
After ten years | 0 | |
Cost basis | 15 | 15 |
Carrying value | ||
Within one year | 0 | |
After one but within five years | 7 | |
After five but within ten years | 8 | |
After ten years | 0 | |
Total | $ 15 | $ 16 |
AVAILABLE-FOR-SALE SECURITIES_3
AVAILABLE-FOR-SALE SECURITIES, Gross Unrealized Losses and Fair Value and Significant Assumptions (Details) - RJ Bank - USD ($) $ in Millions | Mar. 31, 2021 | Sep. 30, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Estimated far value less than 12 months | $ 4,741 | $ 1,553 |
Unrealized losses less than 12 months | (84) | (5) |
Estimated fair value 12 months or more | 25 | 0 |
Unrealized losses 12 months or more | 0 | 0 |
Total estimated fair value | 4,766 | 1,553 |
Total unrealized losses | (84) | (5) |
Agency residential MBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated far value less than 12 months | 2,772 | 966 |
Unrealized losses less than 12 months | (31) | (3) |
Estimated fair value 12 months or more | 0 | 0 |
Unrealized losses 12 months or more | 0 | 0 |
Total estimated fair value | 2,772 | 966 |
Total unrealized losses | (31) | (3) |
Agency commercial MBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated far value less than 12 months | 756 | 177 |
Unrealized losses less than 12 months | (36) | (1) |
Estimated fair value 12 months or more | 0 | 0 |
Unrealized losses 12 months or more | 0 | 0 |
Total estimated fair value | 756 | 177 |
Total unrealized losses | (36) | (1) |
Agency CMOs | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated far value less than 12 months | 1,210 | 410 |
Unrealized losses less than 12 months | (17) | (1) |
Estimated fair value 12 months or more | 25 | 0 |
Unrealized losses 12 months or more | 0 | 0 |
Total estimated fair value | 1,235 | 410 |
Total unrealized losses | (17) | $ (1) |
Other securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated far value less than 12 months | 3 | |
Unrealized losses less than 12 months | 0 | |
Estimated fair value 12 months or more | 0 | |
Unrealized losses 12 months or more | 0 | |
Total estimated fair value | 3 | |
Total unrealized losses | $ 0 |
AVAILABLE-FOR-SALE SECURITIES_4
AVAILABLE-FOR-SALE SECURITIES, Narrative (Details) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020USD ($) | Mar. 31, 2021USD ($)investmentPosition | Mar. 31, 2020USD ($) | Sep. 30, 2020USD ($) | |
Debt Securities, Available-for-sale [Line Items] | ||||
Accrued interest excluded | $ 14,000,000 | $ 15,000,000 | ||
Duration, available for sale securities | 4 years | |||
Proceeds from sales of available-for-sale securities | $ 0 | $ 519,000,000 | $ 0 | |
Federal National Mortgage Association (FNMA) | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Amortized cost basis | 5,040,000,000 | |||
Federal Home Loan Mortgage Corporation (FHLMC) | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Amortized cost basis | 2,810,000,000 | |||
RJ Bank | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Amortized cost basis | $ 8,164,000,000 | $ 7,531,000,000 | ||
RJ Bank | Agency MBS and agency CMOs | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Number of available-for-sale investment positions determined to be in an unrealized loss position | investmentPosition | 242 | |||
Number of available-for-sale investment positions determined to be in an unrealized loss position continuously for less than 12 months | investmentPosition | 241 | |||
Number of available-for-sale investment positions determined to be in an unrealized loss position continuously for 12 months or more | investmentPosition | 1 |
DERIVATIVE ASSETS AND DERIVAT_3
DERIVATIVE ASSETS AND DERIVATIVE LIABILITIES, Derivative Assets and Liability Fair Value (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Sep. 30, 2020 |
Derivative assets | ||
Derivative assets | $ 415 | $ 573 |
Counterparty netting | (66) | (40) |
Cash collateral netting | (45) | (95) |
Total amounts offset | (111) | (135) |
Derivative assets | 304 | 438 |
Financial instruments | (212) | (349) |
Net amount | 92 | 89 |
Notional amount | 23,455 | 24,309 |
Derivative liabilities | ||
Derivative liabilities | 393 | 505 |
Counterparty netting | (66) | (40) |
Cash collateral netting | (3) | (72) |
Total amounts offset | (69) | (112) |
Net amounts presented on the Condensed Consolidated Statements of Financial Condition | 324 | 393 |
Financial instruments | (201) | (333) |
Net amount | 123 | 60 |
Derivatives not designated as hedging instruments | ||
Derivative assets | ||
Derivative assets | 415 | 573 |
Notional amount | 21,704 | 22,593 |
Derivative liabilities | ||
Derivative liabilities | 391 | 502 |
Derivatives not designated as hedging instruments | Interest rate - matched book | ||
Derivative assets | ||
Interest rate - matched book | 201 | 333 |
Notional amount | 1,935 | 2,174 |
Derivative liabilities | ||
Interest rate - matched book | 201 | 333 |
Derivatives not designated as hedging instruments | Interest rate - other | ||
Derivative assets | ||
Derivative assets | 213 | 240 |
Notional amount | 18,459 | 19,206 |
Derivative liabilities | ||
Derivative liabilities | 185 | 161 |
Derivatives not designated as hedging instruments | Foreign exchange | ||
Derivative assets | ||
Derivative assets | 1 | 0 |
Notional amount | 744 | 605 |
Derivative liabilities | ||
Derivative liabilities | 1 | 2 |
Derivatives not designated as hedging instruments | Other | ||
Derivative assets | ||
Derivative assets | 0 | 0 |
Notional amount | 566 | 608 |
Derivative liabilities | ||
Derivative liabilities | 4 | 6 |
Derivatives designated as hedging instruments | ||
Derivative assets | ||
Derivative assets | 0 | 0 |
Notional amount | 1,751 | 1,716 |
Derivative liabilities | ||
Derivative liabilities | 2 | 3 |
Derivatives designated as hedging instruments | Interest rate | ||
Derivative assets | ||
Derivative assets | 0 | 0 |
Notional amount | 850 | 850 |
Derivative liabilities | ||
Derivative liabilities | 0 | 0 |
Derivatives designated as hedging instruments | Foreign exchange | ||
Derivative assets | ||
Derivative assets | 0 | 0 |
Notional amount | 901 | 866 |
Derivative liabilities | ||
Derivative liabilities | $ 2 | $ 3 |
DERIVATIVE ASSETS AND DERIVAT_4
DERIVATIVE ASSETS AND DERIVATIVE LIABILITIES, Derivative Gain (Loss) Recognized in AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Cash flow hedges | $ 19 | $ (43) | $ 24 | $ (33) |
Total gains/(losses) in AOCI, net of taxes | 9 | 9 | (15) | 6 |
Interest rate | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Cash flow hedges | 19 | (43) | 24 | (33) |
Foreign exchange | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net investment hedges | $ (10) | $ 52 | $ (39) | $ 39 |
DERIVATIVE ASSETS AND DERIVAT_5
DERIVATIVE ASSETS AND DERIVATIVE LIABILITIES (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2022 | |
Derivative [Line Items] | |||||
Gain (loss) excluded from assessment of hedge effectiveness | $ 0 | $ 0 | $ 0 | $ 0 | |
Interest expense | $ 37,000,000 | $ 43,000,000 | $ 75,000,000 | $ 94,000,000 | |
RJ Bank | |||||
Derivative [Line Items] | |||||
Maximum length of time hedged in cash flow hedge | 7 years | ||||
Forecast | Reclassification out of accumulated other comprehensive income | |||||
Derivative [Line Items] | |||||
Interest expense | $ 15,000,000 |
DERIVATIVE ASSETS AND DERIVAT_6
DERIVATIVE ASSETS AND DERIVATIVE LIABILITIES, Income Statement Location (Details) - Derivatives not designated as hedging instruments - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Principal transactions/other revenues | Interest rate | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in fair value of derivative asset or liability | $ 6 | $ 0 | $ 10 | $ 5 |
Other revenues | Foreign exchange | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in fair value of derivative asset or liability | (4) | 43 | (30) | 32 |
Principal transactions | Other | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in fair value of derivative asset or liability | (2) | 0 | 2 | 0 |
Accrued Compensation, Commissions And Benefits [Member] | Other | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in fair value of derivative asset or liability | $ 0 | $ (1) | $ 0 | $ (1) |
COLLATERALIZED AGREEMENTS AND_3
COLLATERALIZED AGREEMENTS AND FINANCINGS, Schedule of Offsetting Transactions (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Sep. 30, 2020 |
Reverse repurchase agreements | ||
Gross amounts of recognized assets/liabilities | $ 224 | $ 207 |
Gross amounts offset on the Condensed Consolidated Statements of Financial Condition | 0 | 0 |
Net amounts presented on the Condensed Consolidated Statements of Financial Condition | 224 | 207 |
Gross amounts not offset on the Condensed Consolidated Statements of Financial Condition | (224) | (207) |
Net amounts | 0 | 0 |
Securities borrowed | ||
Gross amounts of recognized assets/liabilities | 227 | 215 |
Gross amounts offset on the Condensed Consolidated Statements of Financial Condition | 0 | 0 |
Net amounts presented on the Condensed Consolidated Statements of Financial Condition | 227 | 215 |
Gross amounts not offset on the Condensed Consolidated Statements of Financial Condition | (222) | (209) |
Net amounts | 5 | 6 |
Gross amounts of recognized assets/liabilities | 451 | 422 |
Gross amounts offset on the Condensed Consolidated Statements of Financial Condition | 0 | 0 |
Net amounts presented on the Condensed Consolidated Statements of Financial Condition | 451 | 422 |
Gross amounts not offset on the Condensed Consolidated Statements of Financial Condition | (446) | (416) |
Net amounts | 5 | 6 |
Repurchase agreements | ||
Gross amounts of recognized assets/liabilities | 222 | 165 |
Gross amounts offset on the Condensed Consolidated Statements of Financial Condition | 0 | 0 |
Net amounts presented on the Condensed Consolidated Statements of Financial Condition | 222 | 165 |
Gross amounts not offset on the Condensed Consolidated Statements of Financial Condition | (222) | (165) |
Net amounts | 0 | 0 |
Securities loaned | ||
Gross amounts of recognized assets/liabilities | 56 | 85 |
Gross amounts offset on the Condensed Consolidated Statements of Financial Condition | 0 | 0 |
Net amounts presented on the Condensed Consolidated Statements of Financial Condition | 56 | 85 |
Gross amounts not offset on the Condensed Consolidated Statements of Financial Condition | (55) | (79) |
Net amounts | 1 | 6 |
Gross amounts of recognized assets/liabilities | 278 | 250 |
Gross amounts offset on the Condensed Consolidated Statements of Financial Condition | 0 | 0 |
Net amounts presented on the Condensed Consolidated Statements of Financial Condition | 278 | 250 |
Gross amounts not offset on the Condensed Consolidated Statements of Financial Condition | (277) | (244) |
Net amounts | $ 1 | $ 6 |
COLLATERALIZED AGREEMENTS AND_4
COLLATERALIZED AGREEMENTS AND FINANCINGS, Collateral (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Sep. 30, 2020 |
Collateral Received that Can be Resold or Repledged [Abstract] | ||
Collateral we received that was available to be delivered or repledged | $ 3,225 | $ 2,869 |
Collateral that we delivered or repledged | $ 886 | $ 788 |
COLLATERALIZED AGREEMENTS AND_5
COLLATERALIZED AGREEMENTS AND FINANCINGS, Encumbered Assets (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Sep. 30, 2020 |
Financial instruments owned, at fair value, pledged to counterparties that: | ||
Had the right to deliver or repledge | $ 424 | $ 325 |
Did not have the right to deliver or repledge | 65 | 65 |
Bank loans, net pledged at the Federal Home Loan Bank (“FHLB”) and the Federal Reserve Bank of Atlanta | $ 5,501 | $ 5,367 |
COLLATERALIZED AGREEMENTS AND_6
COLLATERALIZED AGREEMENTS AND FINANCINGS, Repurchase Agreements, Repurchase-to-Maturity Transactions and Securities Loaned Accounted For As Secured Borrowings (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Sep. 30, 2020 |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | $ 222 | $ 165 |
Total | 278 | 250 |
Government and agency obligations | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 121 | 87 |
Agency MBS and agency CMOs | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 101 | 78 |
Equity securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities loaned | 56 | 85 |
Overnight and continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 222 | 165 |
Total | 278 | 250 |
Overnight and continuous | Government and agency obligations | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 121 | 87 |
Overnight and continuous | Agency MBS and agency CMOs | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 101 | 78 |
Overnight and continuous | Equity securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities loaned | 56 | 85 |
Up to 30 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 0 | 0 |
Total | 0 | 0 |
Up to 30 days | Government and agency obligations | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 0 | 0 |
Up to 30 days | Agency MBS and agency CMOs | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 0 | 0 |
Up to 30 days | Equity securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities loaned | 0 | 0 |
30-90 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 0 | 0 |
Total | 0 | 0 |
30-90 days | Government and agency obligations | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 0 | 0 |
30-90 days | Agency MBS and agency CMOs | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 0 | 0 |
30-90 days | Equity securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities loaned | 0 | 0 |
Greater than 90 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 0 | 0 |
Total | 0 | 0 |
Greater than 90 days | Government and agency obligations | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 0 | 0 |
Greater than 90 days | Agency MBS and agency CMOs | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 0 | 0 |
Greater than 90 days | Equity securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities loaned | $ 0 | $ 0 |
BANK LOANS, NET, Held for Sale
BANK LOANS, NET, Held for Sale and Held for Investment (Details) $ in Millions | Mar. 31, 2021USD ($)portfolioSegment | Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Oct. 01, 2019USD ($) | Sep. 30, 2019USD ($) |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Number of loan portfolio segments | portfolioSegment | 6 | ||||||
Financing receivable, gross | $ 23,224 | $ 21,549 | |||||
Allowance for credit losses | (345) | (354) | $ (345) | ||||
Bank loans, net | 22,879 | 21,195 | |||||
Accrued interest receivable on bank loans | $ 46 | $ 45 | |||||
Associated percentage of each major loan category in loan portfolios [Abstract] | |||||||
Loans held for investment (in hundredths) | 100.00% | 100.00% | |||||
Loans held for investment | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Financing receivable, gross | $ 23,021 | $ 21,439 | |||||
Allowance for credit losses | $ (345) | $ (378) | $ (354) | $ (324) | $ (216) | $ (218) | |
Associated percentage of each major loan category in loan portfolios [Abstract] | |||||||
Loans held for investment (in hundredths) | 99.00% | 99.00% | |||||
Loans held for sale | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Financing receivable, gross | $ 203 | $ 110 | |||||
Associated percentage of each major loan category in loan portfolios [Abstract] | |||||||
Loans held for investment (in hundredths) | 1.00% | 1.00% | |||||
C&I loans | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Financing receivable, gross | $ 7,816 | ||||||
C&I loans | Loans held for investment | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Financing receivable, gross | 7,816 | $ 7,421 | |||||
Allowance for credit losses | $ (203) | (198) | $ (200) | (196) | (139) | (139) | |
Associated percentage of each major loan category in loan portfolios [Abstract] | |||||||
Loans held for investment (in hundredths) | 34.00% | 34.00% | |||||
CRE loans | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Financing receivable, gross | $ 2,710 | ||||||
CRE loans | Loans held for investment | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Financing receivable, gross | 2,710 | $ 2,489 | |||||
Allowance for credit losses | $ (74) | (112) | $ (81) | (54) | (36) | (34) | |
Associated percentage of each major loan category in loan portfolios [Abstract] | |||||||
Loans held for investment (in hundredths) | 12.00% | 12.00% | |||||
REIT loans | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Financing receivable, gross | $ 1,380 | ||||||
REIT loans | Loans held for investment | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Financing receivable, gross | 1,380 | $ 1,210 | |||||
Allowance for credit losses | $ (36) | (30) | $ (36) | (38) | (12) | (15) | |
Associated percentage of each major loan category in loan portfolios [Abstract] | |||||||
Loans held for investment (in hundredths) | 6.00% | 5.00% | |||||
Tax-exempt loans | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Financing receivable, gross | $ 1,223 | ||||||
Tax-exempt loans | Loans held for investment | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Financing receivable, gross | 1,223 | $ 1,259 | |||||
Allowance for credit losses | $ (2) | (2) | $ (14) | (11) | (8) | (9) | |
Associated percentage of each major loan category in loan portfolios [Abstract] | |||||||
Loans held for investment (in hundredths) | 5.00% | 6.00% | |||||
Residential mortgage loans | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Financing receivable, gross | $ 5,001 | ||||||
Residential mortgage loans | Loans held for investment | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Financing receivable, gross | 5,001 | $ 4,973 | |||||
Allowance for credit losses | $ (26) | (33) | $ (18) | (18) | (17) | (16) | |
Associated percentage of each major loan category in loan portfolios [Abstract] | |||||||
Loans held for investment (in hundredths) | 21.00% | 23.00% | |||||
SBL and other | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Financing receivable, gross | $ 4,891 | ||||||
SBL and other | Loans held for investment | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Financing receivable, gross | 4,891 | $ 4,087 | |||||
Allowance for credit losses | $ (4) | $ (3) | $ (5) | $ (7) | $ (4) | $ (5) | |
Associated percentage of each major loan category in loan portfolios [Abstract] | |||||||
Loans held for investment (in hundredths) | 21.00% | 19.00% |
BANK LOANS, NET, Originations,
BANK LOANS, NET, Originations, Purchases, and Sales (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Loans held for sale | ||||
Financing Receivables, Schedule of Purchases and Sales [Line Items] | ||||
Loans held for sale originated or purchased | $ 528 | $ 443 | $ 1,110 | $ 1,150 |
Proceeds from sale of loans held-for-sale | 207 | 220 | 395 | 434 |
Loans held for investment | ||||
Financing Receivables, Schedule of Purchases and Sales [Line Items] | ||||
Purchases | 652 | 401 | 820 | 659 |
Sales | 95 | 0 | 100 | 20 |
Loans held for investment | C&I loans | ||||
Financing Receivables, Schedule of Purchases and Sales [Line Items] | ||||
Purchases | 538 | 296 | 660 | 396 |
Sales | 95 | 0 | 100 | 20 |
Loans held for investment | CRE loans | ||||
Financing Receivables, Schedule of Purchases and Sales [Line Items] | ||||
Purchases | 0 | 5 | 0 | 5 |
Sales | 0 | 0 | 0 | 0 |
Loans held for investment | Residential mortgage loans | ||||
Financing Receivables, Schedule of Purchases and Sales [Line Items] | ||||
Purchases | 114 | 100 | 160 | 258 |
Sales | $ 0 | $ 0 | $ 0 | $ 0 |
BANK LOANS, NET, Analysis of Pa
BANK LOANS, NET, Analysis of Payment Status of Loans Held for Investment (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Sep. 30, 2020 |
Analysis of payment status of loans held for investment [Abstract] | ||
Total loans held for investment | $ 23,224 | $ 21,549 |
Performing nonaccrual loans | 15 | 15 |
Loans held for investment | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Financing receivable past due | 1 | 0 |
Nonaccrual with allowance | 14 | 5 |
Nonaccrual with no allowance | 17 | 25 |
Current and accruing | 22,989 | 21,409 |
Total loans held for investment | 23,021 | 21,439 |
30-89 days and accruing | Loans held for investment | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Financing receivable past due | 1 | 0 |
90 days or more and accruing | Loans held for investment | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Financing receivable past due | 0 | 0 |
C&I loans | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Total loans held for investment | 7,816 | |
C&I loans | Loans held for investment | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Financing receivable past due | 0 | 0 |
Nonaccrual with allowance | 0 | 2 |
Nonaccrual with no allowance | 0 | 0 |
Current and accruing | 7,816 | 7,419 |
Total loans held for investment | 7,816 | 7,421 |
C&I loans | 30-89 days and accruing | Loans held for investment | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Financing receivable past due | 0 | 0 |
C&I loans | 90 days or more and accruing | Loans held for investment | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Financing receivable past due | 0 | 0 |
CRE loans | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Total loans held for investment | 2,710 | |
Troubled debt restructuring | 13 | 6 |
CRE loans | Loans held for investment | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Financing receivable past due | 0 | 0 |
Nonaccrual with allowance | 0 | 0 |
Nonaccrual with no allowance | 13 | 14 |
Current and accruing | 2,697 | 2,475 |
Total loans held for investment | 2,710 | 2,489 |
CRE loans | 30-89 days and accruing | Loans held for investment | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Financing receivable past due | 0 | 0 |
CRE loans | 90 days or more and accruing | Loans held for investment | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Financing receivable past due | 0 | 0 |
REIT loans | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Total loans held for investment | 1,380 | |
REIT loans | Loans held for investment | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Financing receivable past due | 0 | 0 |
Nonaccrual with allowance | 0 | 0 |
Nonaccrual with no allowance | 0 | 0 |
Current and accruing | 1,380 | 1,210 |
Total loans held for investment | 1,380 | 1,210 |
REIT loans | 30-89 days and accruing | Loans held for investment | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Financing receivable past due | 0 | 0 |
REIT loans | 90 days or more and accruing | Loans held for investment | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Financing receivable past due | 0 | 0 |
Tax-exempt loans | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Total loans held for investment | 1,223 | |
Tax-exempt loans | Loans held for investment | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Financing receivable past due | 0 | 0 |
Nonaccrual with allowance | 0 | 0 |
Nonaccrual with no allowance | 0 | 0 |
Current and accruing | 1,223 | 1,259 |
Total loans held for investment | 1,223 | 1,259 |
Tax-exempt loans | 30-89 days and accruing | Loans held for investment | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Financing receivable past due | 0 | 0 |
Tax-exempt loans | 90 days or more and accruing | Loans held for investment | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Financing receivable past due | 0 | 0 |
Residential mortgage loans | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Total loans held for investment | 5,001 | |
Residential mortgage loans | Loans held for investment | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Financing receivable past due | 1 | 0 |
Nonaccrual with allowance | 14 | 3 |
Nonaccrual with no allowance | 4 | 11 |
Current and accruing | 4,982 | 4,959 |
Total loans held for investment | 5,001 | 4,973 |
Residential mortgage loans | 30-89 days and accruing | Loans held for investment | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Financing receivable past due | 1 | 0 |
Residential mortgage loans | 90 days or more and accruing | Loans held for investment | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Financing receivable past due | 0 | 0 |
SBL and other | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Total loans held for investment | 4,891 | |
SBL and other | Loans held for investment | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Financing receivable past due | 0 | 0 |
Nonaccrual with allowance | 0 | 0 |
Nonaccrual with no allowance | 0 | 0 |
Current and accruing | 4,891 | 4,087 |
Total loans held for investment | 4,891 | 4,087 |
SBL and other | 30-89 days and accruing | Loans held for investment | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Financing receivable past due | 0 | 0 |
SBL and other | 90 days or more and accruing | Loans held for investment | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Financing receivable past due | 0 | 0 |
Residential Mortgage - First Mortgage Portfolio Segment | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Troubled debt restructuring | $ 14 | $ 15 |
BANK LOANS, NET, Collateral-dep
BANK LOANS, NET, Collateral-dependent loans (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Sep. 30, 2020 |
Loans held for investment | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Financing receivable past due | $ 1 | $ 0 |
CRE loans | Loans held for investment | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Financing receivable past due | 0 | 0 |
CRE loans | Retail and Industrial Real Estate | Loans held for investment | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Collateral dependent loans | 13 | |
Residential mortgage loans | Loans held for investment | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Financing receivable past due | 1 | 0 |
Residential mortgage loans | One-to-four family residential mortgage loans | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Financing receivable past due | 6 | $ 6 |
Residential mortgage loans | Single Family | Loans held for investment | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Collateral dependent loans | $ 6 |
BANK LOANS, NET, Credit Quality
BANK LOANS, NET, Credit Quality of Held for Investment Loan Portfolio (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Sep. 30, 2020 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held for investment | $ 23,224 | $ 21,549 |
C&I loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 312 | |
2020 | 1,259 | |
2019 | 1,288 | |
2018 | 1,591 | |
2017 | 1,043 | |
Prior | 1,672 | |
Revolving loans | 651 | |
Total loans held for investment | 7,816 | |
C&I loans | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 312 | |
2020 | 1,259 | |
2019 | 1,206 | |
2018 | 1,404 | |
2017 | 1,043 | |
Prior | 1,590 | |
Revolving loans | 649 | |
Total loans held for investment | 7,463 | |
C&I loans | Special mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 0 | |
2020 | 0 | |
2019 | 43 | |
2018 | 103 | |
2017 | 0 | |
Prior | 54 | |
Revolving loans | 2 | |
Total loans held for investment | 202 | |
C&I loans | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 0 | |
2020 | 0 | |
2019 | 39 | |
2018 | 84 | |
2017 | 0 | |
Prior | 28 | |
Revolving loans | 0 | |
Total loans held for investment | 151 | |
C&I loans | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior | 0 | |
Revolving loans | 0 | |
Total loans held for investment | 0 | |
CRE loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 194 | |
2020 | 480 | |
2019 | 690 | |
2018 | 780 | |
2017 | 234 | |
Prior | 271 | |
Revolving loans | 61 | |
Total loans held for investment | 2,710 | |
CRE loans | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 194 | |
2020 | 435 | |
2019 | 572 | |
2018 | 645 | |
2017 | 226 | |
Prior | 209 | |
Revolving loans | 61 | |
Total loans held for investment | 2,342 | |
CRE loans | Special mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 0 | |
2020 | 45 | |
2019 | 86 | |
2018 | 49 | |
2017 | 0 | |
Prior | 0 | |
Revolving loans | 0 | |
Total loans held for investment | 180 | |
CRE loans | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 0 | |
2020 | 0 | |
2019 | 32 | |
2018 | 86 | |
2017 | 8 | |
Prior | 62 | |
Revolving loans | 0 | |
Total loans held for investment | 188 | |
CRE loans | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior | 0 | |
Revolving loans | 0 | |
Total loans held for investment | 0 | |
REIT loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 171 | |
2020 | 123 | |
2019 | 164 | |
2018 | 98 | |
2017 | 93 | |
Prior | 344 | |
Revolving loans | 387 | |
Total loans held for investment | 1,380 | |
REIT loans | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 171 | |
2020 | 123 | |
2019 | 115 | |
2018 | 87 | |
2017 | 50 | |
Prior | 220 | |
Revolving loans | 364 | |
Total loans held for investment | 1,130 | |
REIT loans | Special mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 0 | |
2020 | 0 | |
2019 | 28 | |
2018 | 11 | |
2017 | 39 | |
Prior | 124 | |
Revolving loans | 21 | |
Total loans held for investment | 223 | |
REIT loans | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 0 | |
2020 | 0 | |
2019 | 21 | |
2018 | 0 | |
2017 | 4 | |
Prior | 0 | |
Revolving loans | 2 | |
Total loans held for investment | 27 | |
REIT loans | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior | 0 | |
Revolving loans | 0 | |
Total loans held for investment | 0 | |
Tax-exempt loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 9 | |
2020 | 59 | |
2019 | 123 | |
2018 | 209 | |
2017 | 276 | |
Prior | 547 | |
Revolving loans | 0 | |
Total loans held for investment | 1,223 | |
Tax-exempt loans | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 9 | |
2020 | 59 | |
2019 | 123 | |
2018 | 209 | |
2017 | 276 | |
Prior | 547 | |
Revolving loans | 0 | |
Total loans held for investment | 1,223 | |
Tax-exempt loans | Special mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior | 0 | |
Revolving loans | 0 | |
Total loans held for investment | 0 | |
Tax-exempt loans | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior | 0 | |
Revolving loans | 0 | |
Total loans held for investment | 0 | |
Tax-exempt loans | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior | 0 | |
Revolving loans | 0 | |
Total loans held for investment | 0 | |
Residential mortgage loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 836 | |
2020 | 1,459 | |
2019 | 788 | |
2018 | 500 | |
2017 | 558 | |
Prior | 842 | |
Revolving loans | 18 | |
Total loans held for investment | 5,001 | |
Residential mortgage loans | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 836 | |
2020 | 1,459 | |
2019 | 788 | |
2018 | 499 | |
2017 | 556 | |
Prior | 815 | |
Revolving loans | 18 | |
Total loans held for investment | 4,971 | |
Residential mortgage loans | Special mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior | 5 | |
Revolving loans | 0 | |
Total loans held for investment | 5 | |
Residential mortgage loans | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 1 | |
2017 | 2 | |
Prior | 22 | |
Revolving loans | 0 | |
Total loans held for investment | 25 | |
Residential mortgage loans | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior | 0 | |
Revolving loans | 0 | |
Total loans held for investment | 0 | |
SBL and other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 6 | |
2020 | 45 | |
2019 | 12 | |
2018 | 0 | |
2017 | 0 | |
Prior | 0 | |
Revolving loans | 4,828 | |
Total loans held for investment | 4,891 | |
SBL and other | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 6 | |
2020 | 45 | |
2019 | 12 | |
2018 | 0 | |
2017 | 0 | |
Prior | 0 | |
Revolving loans | 4,828 | |
Total loans held for investment | 4,891 | |
SBL and other | Special mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior | 0 | |
Revolving loans | 0 | |
Total loans held for investment | 0 | |
SBL and other | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior | 0 | |
Revolving loans | 0 | |
Total loans held for investment | 0 | |
SBL and other | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior | 0 | |
Revolving loans | 0 | |
Total loans held for investment | $ 0 |
BANK LOANS, NET, Held for Inves
BANK LOANS, NET, Held for Investment Residential Mortgage Loan Portfolio by FICO Score and by LTV Ratio (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Sep. 30, 2020 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, gross | $ 23,224 | $ 21,549 |
Loans held for investment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, gross | 23,021 | 21,439 |
Residential mortgage loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, gross | 5,001 | |
Residential mortgage loans | Loans held for investment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, gross | 5,001 | 4,973 |
Below 80% | Residential mortgage loans | Loans held for investment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, gross | 3,901 | 3,852 |
80%+ | Residential mortgage loans | Loans held for investment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, gross | 1,100 | 1,121 |
Below 600 | Residential mortgage loans | Loans held for investment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, gross | 67 | 67 |
600 - 699 | Residential mortgage loans | Loans held for investment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, gross | 398 | 363 |
700 - 799 | Residential mortgage loans | Loans held for investment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, gross | 3,496 | 3,463 |
800 + | Residential mortgage loans | Loans held for investment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, gross | 1,035 | 1,076 |
FICO score not available | Residential mortgage loans | Loans held for investment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, gross | $ 5 | $ 4 |
BANK LOANS, NET, Changes in the
BANK LOANS, NET, Changes in the Allowance for Loan Losses (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Sep. 30, 2020 | |
Changes in the allowance for loan losses [Roll Forward] | ||||||
Balance at beginning of period | $ 354 | |||||
Net (charge-offs)/recoveries: | ||||||
Balance at end of period | $ 345 | 345 | ||||
Unfunded lending commitments | 17 | 17 | $ 20 | $ 12 | ||
Cumulative Effect, Period of Adoption, Adjustment | ||||||
Net (charge-offs)/recoveries: | ||||||
Balance at end of period | 33 | 33 | ||||
Unfunded lending commitments | $ 8 | |||||
Loans held for investment | ||||||
Changes in the allowance for loan losses [Roll Forward] | ||||||
Balance at beginning of period | 378 | $ 216 | 354 | $ 218 | ||
Provision/(benefit) for credit losses | (32) | 109 | (18) | 107 | ||
Net (charge-offs)/recoveries: | ||||||
Charge-offs | (2) | 0 | (2) | 0 | ||
Recoveries | 0 | 0 | 0 | 0 | ||
Net (charge-offs)/recoveries | (2) | 0 | (2) | 0 | ||
Foreign exchange translation adjustment | 1 | (1) | 2 | (1) | ||
Balance at end of period | 345 | 324 | 345 | 324 | ||
Loans held for investment | Cumulative Effect, Period of Adoption, Adjustment | ||||||
Changes in the allowance for loan losses [Roll Forward] | ||||||
Balance at beginning of period | 9 | |||||
Loans held for investment | C&I loans | ||||||
Changes in the allowance for loan losses [Roll Forward] | ||||||
Balance at beginning of period | 198 | 139 | 200 | 139 | ||
Provision/(benefit) for credit losses | 7 | 58 | (15) | 58 | ||
Net (charge-offs)/recoveries: | ||||||
Charge-offs | (2) | 0 | (2) | 0 | ||
Recoveries | 0 | 0 | 0 | 0 | ||
Net (charge-offs)/recoveries | (2) | 0 | (2) | 0 | ||
Foreign exchange translation adjustment | 0 | (1) | 1 | (1) | ||
Balance at end of period | 203 | 196 | 203 | 196 | ||
Loans held for investment | C&I loans | Cumulative Effect, Period of Adoption, Adjustment | ||||||
Changes in the allowance for loan losses [Roll Forward] | ||||||
Balance at beginning of period | 19 | |||||
Loans held for investment | CRE loans | ||||||
Changes in the allowance for loan losses [Roll Forward] | ||||||
Balance at beginning of period | 112 | 36 | 81 | 34 | ||
Provision/(benefit) for credit losses | (39) | 18 | 3 | 20 | ||
Net (charge-offs)/recoveries: | ||||||
Charge-offs | 0 | 0 | 0 | 0 | ||
Recoveries | 0 | 0 | 0 | 0 | ||
Net (charge-offs)/recoveries | 0 | 0 | 0 | 0 | ||
Foreign exchange translation adjustment | 1 | 0 | 1 | 0 | ||
Balance at end of period | 74 | 54 | 74 | 54 | ||
Loans held for investment | CRE loans | Cumulative Effect, Period of Adoption, Adjustment | ||||||
Changes in the allowance for loan losses [Roll Forward] | ||||||
Balance at beginning of period | (11) | |||||
Loans held for investment | REIT loans | ||||||
Changes in the allowance for loan losses [Roll Forward] | ||||||
Balance at beginning of period | 30 | 12 | 36 | 15 | ||
Provision/(benefit) for credit losses | 6 | 26 | 9 | 23 | ||
Net (charge-offs)/recoveries: | ||||||
Charge-offs | 0 | 0 | 0 | 0 | ||
Recoveries | 0 | 0 | 0 | 0 | ||
Net (charge-offs)/recoveries | 0 | 0 | 0 | 0 | ||
Foreign exchange translation adjustment | 0 | 0 | 0 | 0 | ||
Balance at end of period | 36 | 38 | 36 | 38 | ||
Loans held for investment | REIT loans | Cumulative Effect, Period of Adoption, Adjustment | ||||||
Changes in the allowance for loan losses [Roll Forward] | ||||||
Balance at beginning of period | (9) | |||||
Loans held for investment | Tax-exempt loans | ||||||
Changes in the allowance for loan losses [Roll Forward] | ||||||
Balance at beginning of period | 2 | 8 | 14 | 9 | ||
Provision/(benefit) for credit losses | 0 | 3 | 0 | 2 | ||
Net (charge-offs)/recoveries: | ||||||
Charge-offs | 0 | 0 | 0 | 0 | ||
Recoveries | 0 | 0 | 0 | 0 | ||
Net (charge-offs)/recoveries | 0 | 0 | 0 | 0 | ||
Foreign exchange translation adjustment | 0 | 0 | 0 | 0 | ||
Balance at end of period | 2 | 11 | 2 | 11 | ||
Loans held for investment | Tax-exempt loans | Cumulative Effect, Period of Adoption, Adjustment | ||||||
Changes in the allowance for loan losses [Roll Forward] | ||||||
Balance at beginning of period | (12) | |||||
Loans held for investment | Residential mortgage loans | ||||||
Changes in the allowance for loan losses [Roll Forward] | ||||||
Balance at beginning of period | 33 | 17 | 18 | 16 | ||
Provision/(benefit) for credit losses | (7) | 1 | (16) | 2 | ||
Net (charge-offs)/recoveries: | ||||||
Charge-offs | 0 | 0 | 0 | 0 | ||
Recoveries | 0 | 0 | 0 | 0 | ||
Net (charge-offs)/recoveries | 0 | 0 | 0 | 0 | ||
Foreign exchange translation adjustment | 0 | 0 | 0 | 0 | ||
Balance at end of period | 26 | 18 | 26 | 18 | ||
Loans held for investment | Residential mortgage loans | Cumulative Effect, Period of Adoption, Adjustment | ||||||
Changes in the allowance for loan losses [Roll Forward] | ||||||
Balance at beginning of period | 24 | |||||
Loans held for investment | SBL and other | ||||||
Changes in the allowance for loan losses [Roll Forward] | ||||||
Balance at beginning of period | 3 | 4 | 5 | 5 | ||
Provision/(benefit) for credit losses | 1 | 3 | 1 | 2 | ||
Net (charge-offs)/recoveries: | ||||||
Charge-offs | 0 | 0 | 0 | 0 | ||
Recoveries | 0 | 0 | 0 | 0 | ||
Net (charge-offs)/recoveries | 0 | 0 | 0 | 0 | ||
Foreign exchange translation adjustment | 0 | 0 | 0 | 0 | ||
Balance at end of period | $ 4 | $ 7 | 4 | $ 7 | ||
Loans held for investment | SBL and other | Cumulative Effect, Period of Adoption, Adjustment | ||||||
Changes in the allowance for loan losses [Roll Forward] | ||||||
Balance at beginning of period | $ (2) |
LOANS TO FINANCIAL ADVISORS, _3
LOANS TO FINANCIAL ADVISORS, NET, Balance of Loans to Financial Advisors (Details) - USD ($) $ in Millions | 6 Months Ended | |
Mar. 31, 2021 | Sep. 30, 2020 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Currently affiliated with the firm | $ 1,006 | $ 1,001 |
No longer affiliated with the firm | 10 | 15 |
Total loans to financial advisors | 1,016 | 1,016 |
Allowance for credit losses | (28) | (4) |
Loans to financial advisors, net | 988 | 1,012 |
Accrued interest receivable on loans to financial advisors | $ 4 | 4 |
Past due period | 180 days | |
Cumulative Effect, Period of Adoption, Adjustment | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Allowance for credit losses | $ (25) |
VARIABLE INTEREST ENTITIES, Pri
VARIABLE INTEREST ENTITIES, Primary Beneficiary - Aggregate Assets and Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Sep. 30, 2020 |
Variable interest entity, consolidated, aggregate assets and liabilities [Abstract] | ||
Total assets | $ 56,066 | $ 47,482 |
Total liabilities | 48,429 | 40,306 |
Variable Interest Entity, Primary Beneficiary | ||
Variable interest entity, consolidated, aggregate assets and liabilities [Abstract] | ||
Total assets | 137 | 221 |
Total liabilities | 31 | 94 |
Private Equity Interests | Variable Interest Entity, Primary Beneficiary | ||
Variable interest entity, consolidated, aggregate assets and liabilities [Abstract] | ||
Total assets | 48 | 39 |
Total liabilities | 4 | 4 |
LIHTC funds | Variable Interest Entity, Primary Beneficiary | ||
Variable interest entity, consolidated, aggregate assets and liabilities [Abstract] | ||
Total assets | 68 | 168 |
Total liabilities | 6 | 76 |
Restricted Stock Trust Fund | Variable Interest Entity, Primary Beneficiary | ||
Variable interest entity, consolidated, aggregate assets and liabilities [Abstract] | ||
Total assets | 21 | 14 |
Total liabilities | $ 21 | $ 14 |
VARIABLE INTEREST ENTITIES, P_2
VARIABLE INTEREST ENTITIES, Primary Beneficiary - Carrying Value of Assets, Liabilities and Equity (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 |
Assets: | ||||
Cash and cash equivalents and assets segregated pursuant to regulations | $ 10,275 | $ 9,634 | $ 14,693 | $ 5,971 |
Other assets | 1,616 | 1,525 | ||
Total assets | 56,066 | 47,482 | ||
Liabilities: | ||||
Other payables | 1,608 | 1,513 | ||
Total liabilities | 48,429 | 40,306 | ||
Noncontrolling interests | 45 | 62 | ||
Variable Interest Entity, Primary Beneficiary | ||||
Assets: | ||||
Total assets | 137 | 221 | ||
Liabilities: | ||||
Total liabilities | 31 | 94 | ||
Variable Interest Entity, Primary Beneficiary | Carrying amount | ||||
Assets: | ||||
Cash and cash equivalents and assets segregated pursuant to regulations | 11 | 9 | ||
Other investments | 46 | 37 | ||
Other assets | 59 | 164 | ||
Total assets | 116 | 210 | ||
Liabilities: | ||||
Other payables | 3 | 76 | ||
Total liabilities | 3 | 76 | ||
Noncontrolling interests | $ 42 | $ 62 |
VARIABLE INTEREST ENTITIES, Not
VARIABLE INTEREST ENTITIES, Not the Primary Beneficiary - Aggregate Assets, Liabilities Exposure to Loss (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Sep. 30, 2020 |
Variable Interest Entity [Line Items] | ||
Total assets | $ 56,066 | $ 47,482 |
Total liabilities | 48,429 | 40,306 |
Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Total assets | 14,924 | 14,481 |
Total liabilities | 2,491 | 2,225 |
Our risk of loss | 114 | 139 |
Private Equity Interests | Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Total assets | 7,416 | 7,738 |
Total liabilities | 167 | 96 |
Our risk of loss | 77 | 67 |
LIHTC funds | Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Total assets | 7,151 | 6,516 |
Total liabilities | 2,178 | 1,993 |
Our risk of loss | 28 | 66 |
Other Entities [Member] | Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Total assets | 357 | 227 |
Total liabilities | 146 | 136 |
Our risk of loss | $ 9 | $ 6 |
GOODWILL AND IDENTIFIABLE INT_2
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS, NET (Details) | 6 Months Ended |
Mar. 31, 2021USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Impairment | $ 0 |
LEASES - Operating Lease Assets
LEASES - Operating Lease Assets and Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Sep. 30, 2020 |
Leases [Abstract] | ||
Weighted-average remaining lease term (years) | 5 years 8 months 12 days | |
Weighted-average discount rate | 3.80% | |
Operating lease assets | $ 348 | $ 321 |
Operating lease liabilities | $ 376 | $ 345 |
LEASES - Lease Cost (Details)
LEASES - Lease Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Leases [Abstract] | ||||
Lease costs | $ 27 | $ 23 | $ 54 | $ 46 |
Variable lease cost | $ 7 | $ 4 | $ 13 | $ 12 |
LEASES - Operating Lease Maturi
LEASES - Operating Lease Maturities (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Sep. 30, 2020 |
Lessee, Lease, Description [Line Items] | ||
Remainder of 2021 | $ 47 | |
2022 | 96 | |
2023 | 77 | |
2024 | 58 | |
2025 | 43 | |
Thereafter | 102 | |
Gross lease payments | 423 | |
Less: interest | (47) | |
Present value of lease liabilities | 376 | $ 345 |
Legally binding minimum lease payments | $ 123 | |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Contract term | 1 year | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Contract term | 11 years |
BANK DEPOSITS, Summary of Bank
BANK DEPOSITS, Summary of Bank Deposits (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Sep. 30, 2020 |
Bank deposits: | ||
Savings and money market accounts | $ 28,180 | $ 25,604 |
Certificates of deposit | 889 | 1,017 |
NOW accounts | 163 | 156 |
Demand deposits (non-interest-bearing) | 22 | 24 |
Total bank deposits | $ 29,254 | $ 26,801 |
Weighted-average rate [Abstract] | ||
Savings and money market accounts, weighted-average rate (in hundredths) | 0.01% | 0.01% |
Certificates of deposit, weighted-average rate (in hundredths) | 1.91% | 1.94% |
NOW accounts, weighted-average rate (in hundredths) | 1.84% | 1.92% |
Demand deposits (non-interest-bearing), weighted-average rate (in hundredths) | 0.00% | 0.00% |
Total bank deposits, weighted-average rate (in hundredths) | 0.08% | 0.09% |
Related party deposit liabilities | $ 185 | $ 185 |
Time deposit amount that exceeds FDIC insurance limit | $ 23 |
BANK DEPOSITS, Schedule Maturit
BANK DEPOSITS, Schedule Maturities of Certificates of Deposit (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Sep. 30, 2020 |
Scheduled maturities of certificates of deposit, denominations greater than or equal to $100,000 [Abstract] | ||
Three months or less | $ 31 | $ 59 |
Over three through six months | 12 | 26 |
Over six through twelve months | 25 | 19 |
Over one through two years | 58 | 43 |
Over two through three years | 67 | 67 |
Over three through four years | 7 | 37 |
Over four through five years | 9 | 7 |
Total certificates of deposit | 209 | 258 |
Scheduled maturities of certificates of deposit, denominations less than 100,000 [Abstract] | ||
Three months or less | 14 | 76 |
Over three through six months | 21 | 18 |
Over six through twelve months | 159 | 26 |
Over one through two years | 161 | 206 |
Over two through three years | 171 | 170 |
Over three through four years | 150 | 165 |
Over four through five years | 4 | 98 |
Total certificates of deposit | $ 680 | $ 759 |
BANK DEPOSITS, Summary of Inter
BANK DEPOSITS, Summary of Interest Expense on Deposits (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Interest expense on deposits [Abstract] | ||||
Savings, money market, and NOW accounts | $ 2 | $ 6 | $ 3 | $ 18 |
Certificates of deposit | 4 | 6 | 9 | 10 |
Total interest expense on deposits | $ 6 | $ 12 | $ 12 | $ 28 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 6 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 21.20% | 22.20% |
Unrecognized tax benefits, period increase (decrease) | $ (8) |
COMMITMENTS, CONTINGENCIES AN_3
COMMITMENTS, CONTINGENCIES AND GUARANTEES, Commitments and Contingencies (Details) $ in Millions | 6 Months Ended |
Mar. 31, 2021USD ($)agreement | |
Underwriting commitment | |
Commitments [Line Items] | |
Number of open underwriting commitments | agreement | 5 |
Independent venture capital or private equity investment commitment | |
Commitments [Line Items] | |
Amount of commitment | $ 38 |
Commitment to lend to RJTCF | |
Commitments [Line Items] | |
Amount of commitment | $ 178 |
Number of days that investments in project partnerships typically sold | 90 days |
Forward GNMA MBS purchase commitments | |
Commitments [Line Items] | |
Amount of commitment | $ 263 |
Expected time of purchase (in days) | 90 days |
COMMITMENTS, CONTINGENCIES AN_4
COMMITMENTS, CONTINGENCIES AND GUARANTEES, Summary of Commitments to Extend Credit and Other Credit-Related Off-Balance Sheet Financial Instruments Outstanding (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Sep. 30, 2020 |
Commitments and Contingencies Disclosure [Abstract] | ||
Open-end consumer lines of credit (primarily SBL) | $ 14,300 | $ 12,148 |
Commercial lines of credit | 1,740 | 1,482 |
Unfunded loan commitments | 532 | 532 |
Standby letters of credit | $ 27 | $ 33 |
COMMITMENTS, CONTINGENCIES AN_5
COMMITMENTS, CONTINGENCIES AND GUARANTEES, Guarantees (Details) | Mar. 31, 2021USD ($) |
Securities Industry Protection Corporation (SIPC) | |
Guarantees [Abstract] | |
SIPC fund securities per customer limit (up to) | $ 500,000 |
Per customer upper limit claims for cash balances | 250,000 |
Raymond James & Associates Inc | |
Guarantees [Abstract] | |
Excess SIPC insured amount upper limit | 750,000,000 |
Excess SIPC Sub-limit per customer cash above basic SIPC | 1,900,000 |
Private equity investments | Financial Guarantee | |
Guarantees [Abstract] | |
Current exposure of guarantees | $ 13,000,000 |
COMMITMENTS, CONTINGENCIES AN_6
COMMITMENTS, CONTINGENCIES AND GUARANTEES, Legal and Regulatory Matters Contingencies (Details) $ in Millions | Mar. 31, 2021USD ($) |
Pending Litigation | Various lawsuits | |
Loss Contingencies [Line Items] | |
Range of loss portion not accrued | $ 180 |
SENIOR NOTES PAYABLE - Schedule
SENIOR NOTES PAYABLE - Schedule of Senior Notes (Details) - Senior Notes - USD ($) $ in Millions | Mar. 31, 2021 | Sep. 30, 2020 | Mar. 31, 2020 | Jul. 31, 2016 | Mar. 31, 2012 |
Debt Instrument [Line Items] | |||||
Senior notes payable | $ 2,050 | $ 2,050 | |||
Unaccreted premium/(discount) | 9 | 10 | |||
Unamortized debt issuance costs | (14) | (15) | |||
Total senior notes payable | 2,045 | 2,045 | |||
Senior Notes Due 2024 | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 5.625% | ||||
Senior notes payable | 250 | 250 | |||
Senior Notes Due 2026 | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 3.625% | ||||
Senior notes payable | 500 | 500 | |||
Senior Notes Due 2030 | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 4.65% | ||||
Senior notes payable | 500 | 500 | |||
Senior Notes Due 2046 | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 4.95% | ||||
Senior notes payable | $ 800 | $ 800 |
SENIOR NOTES PAYABLE - Narrativ
SENIOR NOTES PAYABLE - Narrative (Details) - Senior Notes - USD ($) | May 03, 2021 | Apr. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2020 | Jul. 31, 2016 | Mar. 31, 2012 |
Forecast | ||||||
Debt Instrument [Line Items] | ||||||
Gain (loss) on extinguishment of debt | $ (97,000,000) | |||||
Senior Notes Due 2024 | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, face amount | $ 250,000,000 | |||||
Stated interest rate | 5.625% | |||||
Senior Notes Due 2026 | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, face amount | $ 500,000,000 | |||||
Stated interest rate | 3.625% | |||||
Senior Notes Due 2030 | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, face amount | $ 500,000,000 | |||||
Stated interest rate | 4.65% | |||||
Percentage of principal amount of notes redeemed | 100.00% | |||||
Basis spread used in determining redemption price | 0.50% | |||||
Senior Notes Due 2046 | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, face amount | $ 300,000,000 | |||||
Stated interest rate | 4.95% | |||||
Percentage of principal amount of notes redeemed | 100.00% | |||||
Basis spread used in determining redemption price | 0.45% | |||||
Senior Notes Due 2046, Additional | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, face amount | $ 500,000,000 | |||||
Senior Notes Due 2051 | Subsequent Event | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, face amount | $ 750,000,000 | |||||
Stated interest rate | 3.75% | |||||
Percentage of principal amount of notes redeemed | 100.00% | |||||
Basis spread used in determining redemption price | 0.20% | |||||
Existing Notes | Subsequent Event | ||||||
Debt Instrument [Line Items] | ||||||
Repurchased face amount | $ 418,000,000 | $ 332,000,000 | ||||
Repayments of senior debt | $ 473,000,000 | $ 373,000,000 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS), Schedule of Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance beginning of period | $ 7,176 | |||
OCI: | ||||
OCI before reclassifications and taxes | $ (81) | $ 18 | (89) | $ 35 |
Amounts reclassified from AOCI, before tax | 4 | 0 | 5 | 0 |
Pre-tax net OCI | (77) | 18 | (84) | 35 |
Income tax effect | 22 | (24) | 35 | (23) |
Total other comprehensive income/(loss), net of tax | (55) | (6) | (49) | 12 |
Balance end of period | 7,637 | 6,834 | 7,637 | 6,834 |
Net investment hedges | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance beginning of period | 86 | 97 | 115 | 110 |
OCI: | ||||
OCI before reclassifications and taxes | (13) | 69 | (51) | 52 |
Amounts reclassified from AOCI, before tax | 0 | 0 | 0 | 0 |
Pre-tax net OCI | (13) | 69 | (51) | 52 |
Income tax effect | 3 | (17) | 12 | (13) |
Total other comprehensive income/(loss), net of tax | (10) | 52 | (39) | 39 |
Balance end of period | 76 | 149 | 76 | 149 |
Currency translations | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance beginning of period | (93) | (113) | (140) | (135) |
OCI: | ||||
OCI before reclassifications and taxes | 12 | (78) | 57 | (56) |
Amounts reclassified from AOCI, before tax | 0 | 0 | 2 | 0 |
Pre-tax net OCI | 12 | (78) | 59 | (56) |
Income tax effect | 0 | 0 | 0 | 0 |
Total other comprehensive income/(loss), net of tax | 12 | (78) | 59 | (56) |
Balance end of period | (81) | (191) | (81) | (191) |
Subtotal: net investment hedges and currency translations | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance beginning of period | (7) | (16) | (25) | (25) |
OCI: | ||||
OCI before reclassifications and taxes | (1) | (9) | 6 | (4) |
Amounts reclassified from AOCI, before tax | 0 | 0 | 2 | 0 |
Pre-tax net OCI | (1) | (9) | 8 | (4) |
Income tax effect | 3 | (17) | 12 | (13) |
Total other comprehensive income/(loss), net of tax | 2 | (26) | 20 | (17) |
Balance end of period | (5) | (42) | (5) | (42) |
Available- for-sale securities | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance beginning of period | 72 | 20 | 89 | 21 |
OCI: | ||||
OCI before reclassifications and taxes | (102) | 85 | (120) | 83 |
Amounts reclassified from AOCI, before tax | 0 | 0 | (5) | 0 |
Pre-tax net OCI | (102) | 85 | (125) | 83 |
Income tax effect | 26 | (22) | 32 | (21) |
Total other comprehensive income/(loss), net of tax | (76) | 63 | (93) | 62 |
Balance end of period | (4) | 83 | (4) | 83 |
Cash flow hedges | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance beginning of period | (48) | (9) | (53) | (19) |
OCI: | ||||
OCI before reclassifications and taxes | 22 | (58) | 25 | (44) |
Amounts reclassified from AOCI, before tax | 4 | 0 | 8 | 0 |
Pre-tax net OCI | 26 | (58) | 33 | (44) |
Income tax effect | (7) | 15 | (9) | 11 |
Total other comprehensive income/(loss), net of tax | 19 | (43) | 24 | (33) |
Balance end of period | (29) | (52) | (29) | (52) |
Accumulated other comprehensive income/ (loss) | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance beginning of period | 17 | (5) | 11 | (23) |
OCI: | ||||
Total other comprehensive income/(loss), net of tax | (55) | (6) | (49) | 12 |
Balance end of period | $ (38) | $ (11) | $ (38) | $ (11) |
REVENUES, Disaggregation of Rev
REVENUES, Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Sep. 30, 2020 | |
Disaggregation of Revenue [Line Items] | |||||
Principal transactions | $ 148 | $ 105 | $ 295 | $ 202 | |
Noninterest Income | 2,209 | 1,826 | 4,266 | 3,589 | |
All other | 20 | (27) | 60 | (16) | |
Interest income | 200 | 285 | 403 | 582 | |
Total revenues | 2,409 | 2,111 | 4,669 | 4,171 | |
Interest expense | (37) | (43) | (75) | (94) | |
Net revenues | 2,372 | 2,068 | 4,594 | 4,077 | |
Receivables related to contracts with customers | 357 | 357 | $ 342 | ||
Asset management and related administrative fees | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 1,173 | 1,006 | 2,240 | 1,961 | |
Total brokerage revenues | |||||
Disaggregation of Revenue [Line Items] | |||||
Noninterest Income | 591 | 515 | 1,119 | 975 | |
Subtotal securities commissions | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 443 | 410 | 824 | 773 | |
Mutual and other fund products | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 186 | 166 | 337 | 314 | |
Insurance and annuity products | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 109 | 99 | 207 | 200 | |
Equities, ETFs and fixed income products | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 148 | 145 | 280 | 259 | |
Total account and service fees | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 159 | 172 | 304 | 350 | |
Mutual fund and annuity service fees | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 99 | 88 | 193 | 178 | |
RJBDP fees | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 19 | 51 | 40 | 109 | |
Client account and other fees | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 41 | 33 | 71 | 63 | |
Total investment banking | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 242 | 148 | 503 | 289 | |
Merger & acquisition and advisory | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 122 | 72 | 271 | 132 | |
Equity underwriting | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 83 | 54 | 149 | 104 | |
Debt underwriting | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 37 | 22 | 83 | 53 | |
Total other | |||||
Disaggregation of Revenue [Line Items] | |||||
Noninterest Income | 44 | (15) | 100 | 14 | |
Tax credit fund revenues | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 24 | 12 | 40 | 30 | |
Operating segments | Private Client Group | |||||
Disaggregation of Revenue [Line Items] | |||||
Principal transactions | 13 | 17 | 25 | 34 | |
Noninterest Income | 1,620 | 1,457 | 3,059 | 2,830 | |
All other | 8 | 7 | 13 | 16 | |
Interest income | 30 | 45 | 60 | 94 | |
Total revenues | 1,650 | 1,502 | 3,119 | 2,924 | |
Interest expense | (3) | (7) | (5) | (15) | |
Net revenues | 1,647 | 1,495 | 3,114 | 2,909 | |
Operating segments | Private Client Group | Asset management and related administrative fees | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 979 | 833 | 1,864 | 1,615 | |
Operating segments | Private Client Group | Total brokerage revenues | |||||
Disaggregation of Revenue [Line Items] | |||||
Noninterest Income | 413 | 384 | 766 | 731 | |
Operating segments | Private Client Group | Subtotal securities commissions | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 400 | 367 | 741 | 697 | |
Operating segments | Private Client Group | Mutual and other fund products | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 183 | 163 | 331 | 307 | |
Operating segments | Private Client Group | Insurance and annuity products | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 109 | 99 | 207 | 200 | |
Operating segments | Private Client Group | Equities, ETFs and fixed income products | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 108 | 105 | 203 | 190 | |
Operating segments | Private Client Group | Total account and service fees | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 204 | 222 | 394 | 446 | |
Operating segments | Private Client Group | Mutual fund and annuity service fees | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 99 | 88 | 193 | 178 | |
Operating segments | Private Client Group | RJBDP fees | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 63 | 99 | 127 | 204 | |
Operating segments | Private Client Group | Client account and other fees | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 42 | 35 | 74 | 64 | |
Operating segments | Private Client Group | Total investment banking | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 16 | 11 | 22 | 22 | |
Operating segments | Private Client Group | Merger & acquisition and advisory | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 0 | 0 | 0 | 0 | |
Operating segments | Private Client Group | Equity underwriting | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 16 | 11 | 22 | 22 | |
Operating segments | Private Client Group | Debt underwriting | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 0 | 0 | 0 | 0 | |
Operating segments | Private Client Group | Total other | |||||
Disaggregation of Revenue [Line Items] | |||||
Noninterest Income | 8 | 7 | 13 | 16 | |
Operating segments | Private Client Group | Tax credit fund revenues | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 0 | 0 | 0 | 0 | |
Operating segments | Capital Markets | |||||
Disaggregation of Revenue [Line Items] | |||||
Principal transactions | 135 | 89 | 269 | 171 | |
Noninterest Income | 430 | 286 | 881 | 552 | |
All other | 1 | 4 | 4 | 4 | |
Interest income | 5 | 10 | 8 | 18 | |
Total revenues | 435 | 296 | 889 | 570 | |
Interest expense | (2) | (6) | (4) | (12) | |
Net revenues | 433 | 290 | 885 | 558 | |
Operating segments | Capital Markets | Asset management and related administrative fees | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 0 | 1 | 2 | 3 | |
Operating segments | Capital Markets | Total brokerage revenues | |||||
Disaggregation of Revenue [Line Items] | |||||
Noninterest Income | 176 | 130 | 349 | 245 | |
Operating segments | Capital Markets | Subtotal securities commissions | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 41 | 41 | 80 | 74 | |
Operating segments | Capital Markets | Mutual and other fund products | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 1 | 1 | 3 | 4 | |
Operating segments | Capital Markets | Insurance and annuity products | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 0 | 0 | 0 | 0 | |
Operating segments | Capital Markets | Equities, ETFs and fixed income products | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 40 | 40 | 77 | 70 | |
Operating segments | Capital Markets | Total account and service fees | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 3 | 2 | 5 | 3 | |
Operating segments | Capital Markets | Mutual fund and annuity service fees | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 0 | 0 | 0 | 0 | |
Operating segments | Capital Markets | RJBDP fees | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 1 | 0 | 1 | 0 | |
Operating segments | Capital Markets | Client account and other fees | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 2 | 2 | 4 | 3 | |
Operating segments | Capital Markets | Total investment banking | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 226 | 137 | 481 | 267 | |
Operating segments | Capital Markets | Merger & acquisition and advisory | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 122 | 72 | 271 | 132 | |
Operating segments | Capital Markets | Equity underwriting | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 67 | 43 | 127 | 82 | |
Operating segments | Capital Markets | Debt underwriting | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 37 | 22 | 83 | 53 | |
Operating segments | Capital Markets | Total other | |||||
Disaggregation of Revenue [Line Items] | |||||
Noninterest Income | 25 | 16 | 44 | 34 | |
Operating segments | Capital Markets | Tax credit fund revenues | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 24 | 12 | 40 | 30 | |
Operating segments | Asset Management | |||||
Disaggregation of Revenue [Line Items] | |||||
Principal transactions | 0 | 0 | 0 | 0 | |
Noninterest Income | 209 | 184 | 404 | 367 | |
All other | 0 | 1 | 1 | 1 | |
Interest income | 0 | 0 | 0 | 1 | |
Total revenues | 209 | 184 | 404 | 368 | |
Interest expense | 0 | 0 | 0 | 0 | |
Net revenues | 209 | 184 | 404 | 368 | |
Operating segments | Asset Management | Asset management and related administrative fees | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 201 | 177 | 389 | 353 | |
Operating segments | Asset Management | Total brokerage revenues | |||||
Disaggregation of Revenue [Line Items] | |||||
Noninterest Income | 3 | 2 | 5 | 4 | |
Operating segments | Asset Management | Subtotal securities commissions | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 3 | 2 | 5 | 4 | |
Operating segments | Asset Management | Mutual and other fund products | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 3 | 2 | 5 | 4 | |
Operating segments | Asset Management | Insurance and annuity products | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 0 | 0 | 0 | 0 | |
Operating segments | Asset Management | Equities, ETFs and fixed income products | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 0 | 0 | 0 | 0 | |
Operating segments | Asset Management | Total account and service fees | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 5 | 4 | 9 | 9 | |
Operating segments | Asset Management | Mutual fund and annuity service fees | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 0 | 0 | 0 | 1 | |
Operating segments | Asset Management | RJBDP fees | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 0 | 0 | 0 | 0 | |
Operating segments | Asset Management | Client account and other fees | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 5 | 4 | 9 | 8 | |
Operating segments | Asset Management | Total investment banking | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 0 | 0 | 0 | 0 | |
Operating segments | Asset Management | Merger & acquisition and advisory | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 0 | 0 | 0 | 0 | |
Operating segments | Asset Management | Equity underwriting | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 0 | 0 | 0 | 0 | |
Operating segments | Asset Management | Debt underwriting | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 0 | 0 | 0 | 0 | |
Operating segments | Asset Management | Total other | |||||
Disaggregation of Revenue [Line Items] | |||||
Noninterest Income | 0 | 1 | 1 | 1 | |
Operating segments | Asset Management | Tax credit fund revenues | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 0 | 0 | 0 | 0 | |
Operating segments | RJ Bank | |||||
Disaggregation of Revenue [Line Items] | |||||
Principal transactions | 0 | 0 | 1 | 0 | |
Noninterest Income | 5 | 5 | 15 | 11 | |
All other | 5 | 5 | 14 | 11 | |
Interest income | 165 | 223 | 333 | 454 | |
Total revenues | 170 | 228 | 348 | 465 | |
Interest expense | (10) | (18) | (21) | (39) | |
Net revenues | 160 | 210 | 327 | 426 | |
Operating segments | RJ Bank | Asset management and related administrative fees | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 0 | 0 | 0 | 0 | |
Operating segments | RJ Bank | Total brokerage revenues | |||||
Disaggregation of Revenue [Line Items] | |||||
Noninterest Income | 0 | 0 | 1 | 0 | |
Operating segments | RJ Bank | Subtotal securities commissions | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 0 | 0 | 0 | 0 | |
Operating segments | RJ Bank | Mutual and other fund products | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 0 | 0 | 0 | 0 | |
Operating segments | RJ Bank | Insurance and annuity products | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 0 | 0 | 0 | 0 | |
Operating segments | RJ Bank | Equities, ETFs and fixed income products | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 0 | 0 | 0 | 0 | |
Operating segments | RJ Bank | Total account and service fees | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 0 | 0 | 0 | 0 | |
Operating segments | RJ Bank | Mutual fund and annuity service fees | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 0 | 0 | 0 | 0 | |
Operating segments | RJ Bank | RJBDP fees | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 0 | 0 | 0 | 0 | |
Operating segments | RJ Bank | Client account and other fees | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 0 | 0 | 0 | 0 | |
Operating segments | RJ Bank | Total investment banking | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 0 | 0 | 0 | 0 | |
Operating segments | RJ Bank | Merger & acquisition and advisory | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 0 | 0 | 0 | 0 | |
Operating segments | RJ Bank | Equity underwriting | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 0 | 0 | 0 | 0 | |
Operating segments | RJ Bank | Debt underwriting | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 0 | 0 | 0 | 0 | |
Operating segments | RJ Bank | Total other | |||||
Disaggregation of Revenue [Line Items] | |||||
Noninterest Income | 5 | 5 | 14 | 11 | |
Operating segments | RJ Bank | Tax credit fund revenues | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 0 | 0 | 0 | 0 | |
Other and intersegment eliminations | |||||
Disaggregation of Revenue [Line Items] | |||||
All other | 6 | ||||
Other and intersegment eliminations | Other and intersegment eliminations | |||||
Disaggregation of Revenue [Line Items] | |||||
Principal transactions | 0 | (1) | 0 | (3) | |
Noninterest Income | (55) | (106) | (93) | (171) | |
All other | (44) | 28 | (48) | ||
Interest income | 0 | 7 | 2 | 15 | |
Total revenues | (55) | (99) | (91) | (156) | |
Interest expense | (22) | (12) | (45) | (28) | |
Net revenues | (77) | (111) | (136) | (184) | |
Other and intersegment eliminations | Other and intersegment eliminations | Asset management and related administrative fees | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | (7) | (5) | (15) | (10) | |
Other and intersegment eliminations | Other and intersegment eliminations | Total brokerage revenues | |||||
Disaggregation of Revenue [Line Items] | |||||
Noninterest Income | (1) | (1) | (2) | (5) | |
Other and intersegment eliminations | Other and intersegment eliminations | Subtotal securities commissions | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | (1) | 0 | (2) | (2) | |
Other and intersegment eliminations | Other and intersegment eliminations | Mutual and other fund products | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | (1) | 0 | (2) | (1) | |
Other and intersegment eliminations | Other and intersegment eliminations | Insurance and annuity products | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 0 | 0 | 0 | 0 | |
Other and intersegment eliminations | Other and intersegment eliminations | Equities, ETFs and fixed income products | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 0 | 0 | 0 | (1) | |
Other and intersegment eliminations | Other and intersegment eliminations | Total account and service fees | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | (53) | (56) | (104) | (108) | |
Other and intersegment eliminations | Other and intersegment eliminations | Mutual fund and annuity service fees | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 0 | 0 | 0 | (1) | |
Other and intersegment eliminations | Other and intersegment eliminations | RJBDP fees | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | (45) | (48) | (88) | (95) | |
Other and intersegment eliminations | Other and intersegment eliminations | Client account and other fees | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | (8) | (8) | (16) | (12) | |
Other and intersegment eliminations | Other and intersegment eliminations | Total investment banking | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 0 | 0 | 0 | 0 | |
Other and intersegment eliminations | Other and intersegment eliminations | Merger & acquisition and advisory | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 0 | 0 | 0 | 0 | |
Other and intersegment eliminations | Other and intersegment eliminations | Equity underwriting | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 0 | 0 | 0 | 0 | |
Other and intersegment eliminations | Other and intersegment eliminations | Debt underwriting | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 0 | 0 | 0 | 0 | |
Other and intersegment eliminations | Other and intersegment eliminations | Total other | |||||
Disaggregation of Revenue [Line Items] | |||||
Noninterest Income | 6 | (44) | 28 | (48) | |
Other and intersegment eliminations | Other and intersegment eliminations | Tax credit fund revenues | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | $ 0 | $ 0 | $ 0 | $ 0 |
INTEREST INCOME AND INTEREST _3
INTEREST INCOME AND INTEREST EXPENSE (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Interest income: | ||||
Cash and cash equivalents | $ 2 | $ 16 | $ 6 | $ 33 |
Assets segregated pursuant to regulations | 5 | 11 | 8 | 22 |
Available-for-sale securities | 21 | 19 | 44 | 37 |
Brokerage client receivables | 19 | 21 | 37 | 48 |
Bank loans, net of unearned income and deferred expenses | 142 | 198 | 287 | 404 |
All other | 11 | 20 | 21 | 38 |
Total Interest income | 200 | 285 | 403 | 582 |
Interest expense: | ||||
Bank deposits | 6 | 12 | 12 | 28 |
Brokerage client payables | 1 | 3 | 2 | 6 |
Other borrowings | 5 | 5 | 10 | 10 |
Senior notes payable | 24 | 19 | 48 | 37 |
All other | 1 | 4 | 3 | 13 |
Total interest expense | 37 | 43 | 75 | 94 |
Net interest income | 163 | 242 | 328 | 488 |
Bank loan (provision)/benefit for credit losses | 32 | (109) | 18 | (107) |
Net interest income after bank loan (provision)/benefit for credit losses | $ 195 | $ 133 | $ 346 | $ 381 |
SHARE-BASED COMPENSATION, Share
SHARE-BASED COMPENSATION, Share-based Compensation Plans (Details) - Stock Incentive Plan 2012 $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021USD ($)plan$ / sharesshares | Mar. 31, 2020USD ($) | Mar. 31, 2021USD ($)plan$ / sharesshares | Mar. 31, 2020USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of share-based compensation plans | plan | 1 | 1 | ||
Employees and Outside Members of the Board of Directors | Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
RSUs granted during period (in shares) | shares | 150 | 1,500 | ||
RSUs granted during period, weighted-average grant-date fair value (in usd per share) | $ / shares | $ 116.73 | $ 93.63 | ||
Employees and Member of the Board of Directors | Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total compensation expense for restricted equity awards | $ 30 | $ 27 | $ 71 | $ 67 |
Total pre-tax compensation costs not yet recognized, net of forfeitures | $ 231 | $ 231 | ||
Compensation costs not yet recognized, period of recognition | 3 years 2 months 12 days |
REGULATORY CAPITAL REQUIREMEN_3
REGULATORY CAPITAL REQUIREMENTS (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Sep. 30, 2020 |
Raymond James Financial Inc | ||
Common Equity Tier 1 Capital (to Risk-Weighted Assets) | ||
Actual, amount | $ 6,787 | $ 6,490 |
Actual, ratio | 23.60% | 24.20% |
Requirement for capital adequacy purposes, amount | $ 1,296 | $ 1,208 |
Requirement for capital adequacy purposes, ratio (in hundredths) | 4.50% | 4.50% |
To be well capitalized under regulatory provisions, amount | $ 1,872 | $ 1,744 |
To be well capitalized under regulatory provisions, ratio (in hundredths) | 6.50% | 6.50% |
Tier 1 Capital (to Risk-Weighted Assets) | ||
Actual, amount | $ 6,787 | $ 6,490 |
Actual, ratio | 0.236 | 0.242 |
Requirement for capital adequacy purposes, amount | $ 1,728 | $ 1,610 |
Requirement for capital adequacy purposes, ratio (in hundredths) | 0.060 | 0.060 |
To be well capitalized under regulatory provisions, amount | $ 2,304 | $ 2,147 |
To be well capitalized under regulatory provisions, ratio (in hundredths) | 0.080 | 0.080 |
Total Capital (to Risk-Weighted Assets) | ||
Actual, amount | $ 7,120 | $ 6,804 |
Actual, ratio | 0.247 | 0.254 |
Requirement for capital adequacy purposes, amount | $ 2,304 | $ 2,147 |
Requirement for capital adequacy purposes, ratio (in hundredths) | 0.080 | 0.080 |
To be well capitalized under regulatory provisions, amount | $ 2,880 | $ 2,684 |
To be well capitalized under regulatory provisions, ratio (in hundredths) | 0.100 | 0.100 |
Tier 1 leverage | ||
Actual, amount | $ 6,787 | $ 6,490 |
Actual, ratio | 0.122 | 0.142 |
Requirement for capital adequacy purposes, amount | $ 2,218 | $ 1,824 |
Requirement for capital adequacy purposes, ratio (in hundredths) | 0.040 | 0.040 |
To be well capitalized under regulatory provisions, amount | $ 2,773 | $ 2,280 |
To be well capitalized under regulatory provisions, ratio (in hundredths) | 0.050 | 0.050 |
RJ Bank | ||
Common Equity Tier 1 Capital (to Risk-Weighted Assets) | ||
Actual, amount | $ 2,442 | $ 2,279 |
Actual, ratio | 13.10% | 13.00% |
Requirement for capital adequacy purposes, amount | $ 838 | $ 788 |
Requirement for capital adequacy purposes, ratio (in hundredths) | 4.50% | 4.50% |
To be well capitalized under regulatory provisions, amount | $ 1,210 | $ 1,138 |
To be well capitalized under regulatory provisions, ratio (in hundredths) | 6.50% | 6.50% |
Tier 1 Capital (to Risk-Weighted Assets) | ||
Actual, amount | $ 2,442 | $ 2,279 |
Actual, ratio | 0.131 | 0.130 |
Requirement for capital adequacy purposes, amount | $ 1,117 | $ 1,051 |
Requirement for capital adequacy purposes, ratio (in hundredths) | 0.060 | 0.060 |
To be well capitalized under regulatory provisions, amount | $ 1,489 | $ 1,401 |
To be well capitalized under regulatory provisions, ratio (in hundredths) | 0.080 | 0.080 |
Total Capital (to Risk-Weighted Assets) | ||
Actual, amount | $ 2,676 | $ 2,500 |
Actual, ratio | 0.144 | 0.143 |
Requirement for capital adequacy purposes, amount | $ 1,489 | $ 1,401 |
Requirement for capital adequacy purposes, ratio (in hundredths) | 0.080 | 0.080 |
To be well capitalized under regulatory provisions, amount | $ 1,862 | $ 1,751 |
To be well capitalized under regulatory provisions, ratio (in hundredths) | 0.100 | 0.100 |
Tier 1 leverage | ||
Actual, amount | $ 2,442 | $ 2,279 |
Actual, ratio | 0.075 | 0.077 |
Requirement for capital adequacy purposes, amount | $ 1,296 | $ 1,183 |
Requirement for capital adequacy purposes, ratio (in hundredths) | 0.040 | 0.040 |
To be well capitalized under regulatory provisions, amount | $ 1,620 | $ 1,479 |
To be well capitalized under regulatory provisions, ratio (in hundredths) | 0.050 | 0.050 |
Raymond James & Associates Inc | ||
Alternative Method Elected [Abstract] | ||
Net capital as a percent of aggregate debit items (in hundredths) | 61.50% | 48.00% |
Net capital | $ 1,644 | $ 1,245 |
Less: required net capital | (53) | (52) |
Excess net capital | $ 1,591 | $ 1,193 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Income for basic earnings per common share: | ||||
Net income | $ 355 | $ 169 | $ 667 | $ 437 |
Less allocation of earnings and dividends to participating securities | 0 | 0 | (1) | (1) |
Net income attributable to RJF common shareholders | 355 | 169 | 666 | 436 |
Income for diluted earnings per common share: | ||||
Net income | 355 | 169 | 667 | 437 |
Less allocation of earnings and dividends to participating securities | 0 | 0 | (1) | (1) |
Net income attributable to RJF common shareholders | $ 355 | $ 169 | $ 666 | $ 436 |
Common shares: | ||||
Average common shares in basic computation (in shares) | 137.8 | 138.4 | 137.3 | 138.4 |
Dilutive effect of outstanding stock options and certain restricted stock units (in shares) | 3.4 | 2.7 | 3.1 | 2.9 |
Average common shares used in diluted computation (in shares) | 141.2 | 141.1 | 140.4 | 141.3 |
Earnings per common share: | ||||
Basic (in dollars per share) | $ 2.58 | $ 1.22 | $ 4.85 | $ 3.15 |
Diluted (in dollars per share) | $ 2.51 | $ 1.20 | $ 4.74 | $ 3.09 |
Stock options and certain restricted stock units excluded from weighted-average diluted common shares because their effect would be antidilutive (in shares) | 0.1 | 0.7 | 0.2 | 0.6 |
Dividends per common share declared and paid: [Abstract] | ||||
Dividends per common share - declared (in dollars per share) | $ 0.39 | $ 0.37 | $ 0.78 | $ 0.74 |
Dividends per common share - paid (in dollars per share) | $ 0.39 | $ 0.37 | $ 0.76 | $ 0.71 |
SEGMENT INFORMATION, Informatio
SEGMENT INFORMATION, Information Concerning Operations (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2020USD ($) | Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2021USD ($)businessSegment | Mar. 31, 2020USD ($) | Sep. 30, 2020USD ($) | |
Segment Reporting Information [Line Items] | ||||||
Number of operating segments | businessSegment | 5 | |||||
Revenues: | ||||||
Total net revenues | $ 2,372 | $ 2,068 | $ 4,594 | $ 4,077 | ||
Pre-tax income | ||||||
Total pre-tax income | 447 | 239 | 846 | 598 | ||
Net interest income (expense): | ||||||
Net interest income | 163 | 242 | 328 | 488 | ||
Total assets: | ||||||
Total assets | 56,066 | 56,066 | $ 47,482 | |||
Goodwill: | ||||||
Goodwill | 636 | 636 | 466 | |||
NWPS | ||||||
Goodwill: | ||||||
Goodwill, acquired during period | $ 139 | |||||
Operating segments | Private Client Group | ||||||
Revenues: | ||||||
Total net revenues | 1,647 | 1,495 | 3,114 | 2,909 | ||
Pre-tax income | ||||||
Total pre-tax income | 192 | 170 | 332 | 323 | ||
Net interest income (expense): | ||||||
Net interest income | 27 | 38 | 55 | 79 | ||
Total assets: | ||||||
Total assets | 18,338 | 18,338 | 12,574 | |||
Goodwill: | ||||||
Goodwill | 417 | 417 | 277 | |||
Operating segments | Capital Markets | ||||||
Revenues: | ||||||
Total net revenues | 433 | 290 | 885 | 558 | ||
Pre-tax income | ||||||
Total pre-tax income | 105 | 28 | 234 | 57 | ||
Net interest income (expense): | ||||||
Net interest income | 3 | 4 | 4 | 6 | ||
Total assets: | ||||||
Total assets | 2,334 | 2,334 | 2,336 | |||
Goodwill: | ||||||
Goodwill | 150 | 150 | 120 | |||
Operating segments | Asset Management | ||||||
Revenues: | ||||||
Total net revenues | 209 | 184 | 404 | 368 | ||
Pre-tax income | ||||||
Total pre-tax income | 87 | 73 | 170 | 146 | ||
Net interest income (expense): | ||||||
Net interest income | 0 | 0 | 0 | 1 | ||
Total assets: | ||||||
Total assets | 369 | 369 | 380 | |||
Goodwill: | ||||||
Goodwill | 69 | 69 | 69 | |||
Operating segments | RJ Bank | ||||||
Revenues: | ||||||
Total net revenues | 160 | 210 | 327 | 426 | ||
Pre-tax income | ||||||
Total pre-tax income | 111 | 14 | 182 | 149 | ||
Net interest income (expense): | ||||||
Net interest income | 155 | 205 | 312 | 415 | ||
Total assets: | ||||||
Total assets | 33,010 | 33,010 | 30,356 | |||
Operating segments | Other | ||||||
Revenues: | ||||||
Total net revenues | (12) | (44) | (8) | (52) | ||
Pre-tax income | ||||||
Total pre-tax income | (48) | (46) | (72) | (77) | ||
Net interest income (expense): | ||||||
Net interest income | (22) | (5) | (43) | (13) | ||
Total assets: | ||||||
Total assets | 2,015 | 2,015 | $ 1,836 | |||
Intersegment eliminations | ||||||
Revenues: | ||||||
Total net revenues | $ (65) | $ (67) | $ (128) | $ (132) |
SEGMENT INFORMATION, Classified
SEGMENT INFORMATION, Classified by Major Geographic Areas (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Sep. 30, 2020 | |
Revenues: | ||||||
Total net revenues | $ 2,372 | $ 2,068 | $ 4,594 | $ 4,077 | ||
Pre-tax income | ||||||
Total pre-tax income | 447 | 239 | 846 | 598 | ||
Total assets: | ||||||
Total assets | 56,066 | 56,066 | $ 47,482 | |||
Goodwill: | ||||||
Goodwill | 636 | 636 | 466 | |||
NWPS | ||||||
Goodwill: | ||||||
Goodwill, acquired during period | $ 139 | |||||
U.S. | ||||||
Revenues: | ||||||
Total net revenues | 2,194 | 1,920 | 4,273 | 3,795 | ||
Pre-tax income | ||||||
Total pre-tax income | 415 | 227 | 812 | 579 | ||
Total assets: | ||||||
Total assets | 52,349 | 52,349 | 44,090 | |||
Goodwill: | ||||||
Goodwill | 602 | 602 | 433 | |||
Canada | ||||||
Revenues: | ||||||
Total net revenues | 130 | 112 | 235 | 207 | ||
Pre-tax income | ||||||
Total pre-tax income | 25 | 13 | 26 | 21 | ||
Total assets: | ||||||
Total assets | 3,581 | 3,581 | 3,260 | |||
Goodwill: | ||||||
Goodwill | 25 | 25 | 24 | |||
Europe | ||||||
Revenues: | ||||||
Total net revenues | 48 | 36 | 86 | 75 | ||
Pre-tax income | ||||||
Total pre-tax income | 7 | $ (1) | 8 | $ (2) | ||
Total assets: | ||||||
Total assets | 136 | 136 | 132 | |||
Goodwill: | ||||||
Goodwill | $ 9 | $ 9 | $ 9 |