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RAYMOND JAMES FINANCIAL INC

RJF
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Business Summary

Raymond James Financial, Inc. is a leading diversified financial services company providing private client group, capital markets, asset management, banking and other services to individuals, corporations, and municipalities. The firm operates predominantly in the United States and, to a lesser extent, in Canada, the United Kingdom, and other parts of Europe. As a bank holding company and financial holding company, RJF is subject to supervision, examination and regulation by the Board of Governors of the Federal Reserve System. The financial services industry is intensely competitive, and the firm competes with many other financial services firms, including a number of larger securities firms, most of which are affiliated with major financial services companies, insurance companies, banking institutions, and other organizations, as well as companies that offer web-based financial services and discount brokerage services and financial technology companies.

The firm competes principally on the basis of the quality of its associates, services, technology platform, product selection, performance records, location, and reputation in local markets. Its ability to compete effectively is substantially dependent on its continuing ability to develop or attract, retain, and motivate qualified financial advisors, investment bankers, trading professionals, portfolio managers, and other revenue-producing or specialized personnel. The labor market continues to experience elevated levels of competition for talent across all areas of the business, as well as increased competition with non-traditional competitors, such as technology companies.

The firm generates revenue through five reportable segments: Private Client Group, Capital Markets, Asset Management, Bank, and Other. Revenues are derived from asset management and related administrative fees, brokerage revenues (including commissions on securities transactions and distribution fees), account and service fees (including fees from the Raymond James Bank Deposit Program), investment banking fees (merger and acquisition advisory, equity underwriting, and debt underwriting), net interest income, and other revenue. The mix includes both recurring income, such as asset-based fees and net interest income, and transactional income, such as brokerage commissions and investment banking fees. Primary customer segments include retail individuals, corporations, and municipalities.

The Private Client Group segment provides financial planning, investment advisory, and securities transaction services to clients through financial advisors. Total client assets under administration in the PCG segment as of September 30, 2025 were $1.67 trillion , of which $1.01 trillion related to fee-based accounts. The segment had 8,943 employee and independent contractor financial advisors affiliated as of September 30, 2025. PCG segment net revenues for fiscal 2025 were $10.18 billion . The segment offers multiple affiliation options through AdvisorChoice, including employee financial advisors, independent contractor financial advisors, and RIA and Custody Services. AUA associated with firms in the RCS division totaled $217.3 billion as of September 30, 2025. Revenues are typically driven by AUA and are generally either asset-based or transactional in nature, including asset management and related administrative fees, brokerage revenues, account and service fees, and net interest income.

The Capital Markets segment conducts investment banking, institutional sales, securities trading, equity research, and the syndication and management of investments in low-income housing funds and funds of a similar nature. Capital Markets segment net revenues for fiscal 2025 were $1.77 billion . Investment banking revenues include merger and acquisition and advisory services, equity underwriting, and debt underwriting. Brokerage revenues include fixed income and equity products. The Asset Management segment earns asset management and related administrative fees for providing asset management, portfolio management and related administrative services to retail and institutional clients. Total financial assets under management as of September 30, 2025 were $274.9 billion . The Bank segment reflects the results of banking operations, including Raymond James Bank and TriState Capital Bank. As of September 30, 2025, SBL and residential mortgage loans held for investment represented 46% of the Bank segment's total assets. Corporate and tax exempt loans held for investment represented 33% of the Bank segment's total assets as of September 30, 2025, and 66% of such loans were U.S. or Canadian syndicated loans. Bank Segment Total Assets were $65.26 billion as of September 30, 2025.

During fiscal 2025, the firm issued $1.5 billion in senior notes, consisting of $650 million in 4.90% senior notes due 2035 and $850 million in 5.65% senior notes due 2055. The firm also amended its revolving credit facility to increase borrowing capacity to $1 billion and reduce its cost of borrowing. During the year ended September 30, 2025, the firm repurchased 7.4 million shares of its common stock for $1.1 billion at an average price of $148 per share under the Board of Directors' common stock repurchase authorization, leaving $399 million available under the authorization as of September 30, 2025. In December 2024, the Board of Directors authorized repurchase of common stock in an aggregate amount of up to $1.5 billion , which replaced the previous authorization.

For fiscal 2025, net revenues were $14.07 billion , an increase of 10% compared with the prior year. Pre-tax income was $2.71 billion , an increase of 3% . Net income available to common shareholders was $2.13 billion , 3% higher than the prior year. Earnings per diluted share were $10.30 , reflecting a 6% increase. The compensation ratio was 64.5% , compared with 64.1% for the prior year. The effective income tax rate was 21.3% for fiscal 2025, a decrease from 21.8% for the prior year. ROCE was 17.7% , down from 18.9% for the prior year, and ROTCE was 20.6% , compared with 22.6% for the prior year.

Business Outlook

The firm anticipates that combined net interest income and RJBDP fees from third-party banks will be unfavorably impacted in fiscal 2026 due to the impact of the two 25-basis point decreases in short-term interest rates enacted by the Fed in September 2025 and October 2025. The magnitude of this decline will largely depend on the level of short-term interest rates, including any additional rate cuts during fiscal 2026, as well as interest-earning asset levels, client cash balances, and other market-related factors. However, declines in short-term interest rates are also expected to have a favorable impact on certain of the firm's other businesses.

The firm continues to grow, including through acquisitions and through its recruiting efforts. Integrating acquired businesses, providing a platform for new businesses and partnering with other firms involve risks and present financial, managerial, and operational challenges. The firm may incur significant expense, including in the areas of technology and cybersecurity, in connection with expanding its existing businesses, recruiting financial advisors, or when acquiring and integrating businesses. The firm's overall profitability would be negatively affected if investments and expenses associated with such growth are not matched or exceeded by the earnings derived from such investments or growth.

The firm's compensation ratio was 64.5% for fiscal 2025, compared with 64.1% for the prior year. Excluding acquisition-related compensation expenses, the adjusted compensation ratio was 64.3% , compared with an adjusted compensation ratio of 63.7% for the prior year. The increase in the compensation ratio primarily resulted from changes in the firm's revenue mix due to increases in compensable revenues compared with the prior year, including asset management and related administrative fees, investment banking revenues, and brokerage revenues, as well as a decrease in combined net interest income and RJBDP fees from third-party banks, which have little associated direct compensation.

The firm has operations personnel at various locations responsible for processing securities transactions, custody of client securities, support of client accounts, the receipt, identification, and delivery of funds and securities, and compliance with regulatory and legal requirements. The information technology department develops and supports integrated solutions that provide a customized platform for the businesses, including a platform for financial advisors, systems that support institutional and retail sales and trading activity, and security protocols to protect firm and client information. The firm's business continuity program has been developed to provide reasonable assurance that it will continue to operate in the event of disruptions at its critical facilities or other business disruptions.

During the year ended September 30, 2025, the firm repurchased 7.4 million shares of its common stock for $1.1 billion at an average price of $148 per share under the Board of Directors' common stock repurchase authorization, leaving $399 million available under the authorization as of September 30, 2025. In December 2024, the Board of Directors authorized repurchase of common stock in an aggregate amount of up to $1.5 billion , which replaced the previous authorization. The firm also amended its revolving credit facility to increase its borrowing capacity to $1 billion and reduce its cost of borrowing. These actions increased available liquidity on hand for deployment in growth and to meet client needs, resulting in $3.7 billion of RJF corporate cash as of September 30, 2025.

The firm is exposed to risks from domestic and international macroeconomic conditions caused by political and geopolitical developments, fiscal, monetary, and tax policies, regulations, and other domestic or international events. Fed policies determine, in large part, interest rates and the cost of funds which directly affect the returns and fair value on the firm's lending and investing activities. The market impact from such policies can also materially decrease the value of certain financial assets, most notably debt securities, as well as cash flows. Macroeconomic conditions may also be negatively affected by domestic or international events, including natural disasters, political unrest, the indirect impact of wars and conflicts, or public health epidemics and pandemics.

The firm faces intense competition and pricing pressures and may not be able to keep pace with technological change. The firm competes directly with other national full service broker-dealers, investment banking firms, commercial banks, investment advisors, investment managers and, to a lesser extent, discount brokers and dealers. The firm faces competition from more recent entrants into the market, including fintechs, and increased use of alternative sales channels by other firms. Technology has lowered barriers to entry and made it possible for fintechs to compete with larger financial institutions in providing electronic, internet-based, and mobile phone-based financial solutions.

Risk Factors

The firm is exposed to significant credit risk from lending activities, including securities-based loans, commercial and industrial loans, commercial real estate loans, REIT loans, residential mortgage loans, and tax-exempt loans. As of September 30, 2025, SBL and residential mortgage loans held for investment represented 46% of the Bank segment's total assets, and corporate and tax exempt loans held for investment represented 33% . A downgrade in the firm's credit ratings could adversely affect liquidity, increase borrowing costs, and trigger obligations under certain financial agreements, including a higher facility fee on its $1 billion unsecured revolving credit facility. The firm is also subject to extensive regulation, and failure to meet minimum capital requirements can trigger mandatory actions by regulators; as of September 30, 2025, the tier 1 leverage ratio was 13.1% and the total capital ratio was 24.1% . The firm's business is sensitive to changes in interest rates, and decreases in short-term interest rates are expected to generally reduce net earnings, with combined net interest income and RJBDP fees from third-party banks declining 4% in fiscal 2025 compared to the prior year.

Management Priorities

Management's message emphasizes the firm's strong levels of liquidity and capital, noting that as of September 30, 2025, the tier 1 leverage ratio was 13.1% and the total capital ratio was 24.1% , both well above regulatory capital requirements. Management believes the strong capital and liquidity positions enable the firm to invest in growth across its businesses and remain opportunistic in capital deployment. The strategic priorities emphasized for the period ahead include continuing to maintain strong liquidity and capital levels, investing in growth across the businesses, and remaining opportunistic in capital deployment, as evidenced by the issuance of $1.5 billion in senior notes and the amendment of the revolving credit facility to increase borrowing capacity to $1 billion .

View Source Annual Report on SEC.gov ↗

References

  1. [1] Item 1, Business — Private Client Group
  2. [2] Item 1, Business — Private Client Group
  3. [3] Item 1, Business — Private Client Group
  4. [4] Item 7, MD&A — Results of Operations — Private Client Group
  5. [5] Item 1, Business — Private Client Group
  6. [6] Item 7, MD&A — Results of Operations — Capital Markets
  7. [7] Item 7, MD&A — Results of Operations — Asset Management
  8. [8] Item 1, Business — Bank
  9. [9] Item 1, Business — Bank
  10. [10] Item 1, Business — Bank
  11. [11] Item 1, Business — Bank
  12. [12] Item 7, MD&A — Executive Overview
  13. [13] Item 7, MD&A — Executive Overview
  14. [14] Item 7, MD&A — Executive Overview
  15. [15] Item 7, MD&A — Executive Overview
  16. [16] Item 7, MD&A — Executive Overview
  17. [17] Item 7, MD&A — Executive Overview
  18. [18] Item 7, MD&A — Executive Overview
  19. [19] Item 7, MD&A — Executive Overview
  20. [20] Item 5, Market for Registrant's Common Equity
  21. [21] Item 7, MD&A — Executive Overview
  22. [22] Item 7, MD&A — Executive Overview
  23. [23] Item 7, MD&A — Executive Overview
  24. [24] Item 7, MD&A — Executive Overview
  25. [25] Item 7, MD&A — Executive Overview
  26. [26] Item 7, MD&A — Executive Overview
  27. [27] Item 7, MD&A — Executive Overview
  28. [28] Item 7, MD&A — Executive Overview
  29. [29] Item 7, MD&A — Executive Overview
  30. [30] Item 7, MD&A — Executive Overview
  31. [31] Item 7, MD&A — Executive Overview
  32. [32] Item 7, MD&A — Executive Overview
  33. [33] Item 7, MD&A — Executive Overview
  34. [34] Item 7, MD&A — Executive Overview
  35. [35] Item 7, MD&A — Executive Overview
  36. [36] Item 7, MD&A — Executive Overview
  37. [37] Item 7, MD&A — Executive Overview
  38. [38] Item 7, MD&A — Executive Overview
  39. [39] Item 7, MD&A — Reconciliation of Non-GAAP Financial Measures
  40. [40] Item 7, MD&A — Reconciliation of Non-GAAP Financial Measures
  41. [41] Item 7, MD&A — Executive Overview
  42. [42] Item 7, MD&A — Executive Overview
  43. [43] Item 7, MD&A — Executive Overview
  44. [44] Item 7, MD&A — Executive Overview
  45. [45] Item 5, Market for Registrant's Common Equity
  46. [46] Item 7, MD&A — Executive Overview
  47. [47] Item 7, MD&A — Executive Overview
  48. [48] Item 1, Business — Bank
  49. [49] Item 1, Business — Bank
  50. [50] Item 1A, Risk Factors
  51. [51] Item 7, MD&A — Executive Overview
  52. [52] Item 7, MD&A — Executive Overview
  53. [53] Item 7, MD&A — Net Interest Analysis
  54. [54] Item 7, MD&A — Executive Overview
  55. [55] Item 7, MD&A — Executive Overview
  56. [56] Item 7, MD&A — Executive Overview
  57. [57] Item 7, MD&A — Executive Overview
  58. [58] Item 7, MD&A — Executive Overview
  59. [59] Item 7, MD&A — Executive Overview
  60. [60] Item 7, MD&A — Executive Overview
  61. [61] Item 7, MD&A — Executive Overview
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  63. [63] Item 7, MD&A — Executive Overview
  64. [64] Item 7, MD&A — Executive Overview
  65. [65] Item 7, MD&A — Executive Overview
  66. [66] Item 7, MD&A — Executive Overview
  67. [67] Item 7, MD&A — Executive Overview
  68. [68] Item 7, MD&A — Executive Overview
  69. [69] Item 7, MD&A — Executive Overview
  70. [70] Item 7, MD&A — Executive Overview
  71. [71] Item 7, MD&A — Executive Overview
  72. [72] Item 7, MD&A — Executive Overview
  73. [73] Item 7, MD&A — Executive Overview
  74. [74] Item 7, MD&A — Executive Overview
  75. [75] Item 7, MD&A — Executive Overview
  76. [76] Item 7, MD&A — Results of Operations — Private Client Group
  77. [77] Item 7, MD&A — Results of Operations — Private Client Group
  78. [78] Item 7, MD&A — Results of Operations — Capital Markets
  79. [79] Item 7, MD&A — Results of Operations — Capital Markets
  80. [80] Item 7, MD&A — Results of Operations — Asset Management
  81. [81] Item 7, MD&A — Results of Operations — Asset Management
  82. [82] Item 7, MD&A — Results of Operations — Bank
  83. [83] Item 7, MD&A — Results of Operations — Bank

Analysis on 6/21/2026