rjf shareholders meetingsecure.raymondjamesbank.com/pdfs/shareholders_2016.pdf · rjf shareholders...

RJF SHAREHOLDERS MEETING

February 18, 2016

FORWARD LOOKING STATEMENTS

Certain statements made in this presentation and the associated webcast may constitute “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. Forward-looking

statements include information concerning future strategic objectives, business prospects, anticipated savings, financial results (including expenses, earnings, liquidity, cash flow and capital expenditures), industry or market conditions, demand for and pricing of our products, acquisitions and divestitures, anticipated results of litigation and regulatory developments or general economic

conditions. In addition, words such as “believes,” “expects,” “anticipates,” “intends,” “plans,” “estimates,” “projects,” “forecasts,” and future or conditional verbs such as “will,” “may,” “could,”

“should,” and “would,” as well as any other statement that necessarily depends on future events, are intended to identify forward-looking statements. Forward-looking statements are not guarantees,

and they involve risks, uncertainties and assumptions. Although we make such statements based on assumptions that we believe to be reasonable, there can be no assurance that actual results will not differ materially from those expressed in the forward-looking statements. We caution investors not to rely unduly on any forward-looking statements and urge you to carefully consider the risks

described in our filings with the Securities and Exchange Commission from time to time, including our most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q,

which are available on www.raymondjames.com and the SEC’s website at www.sec.gov. We expressly disclaim any obligation to update any forward-looking statement in the event it later turns

out to be inaccurate, whether as a result of new information, future events or otherwise.

RAYMOND JAMES FINANCIAL

Tom James

Executive Chairman

REPORT OF

SHARES PRESENT


Tom James

Executive Chairman

BOARD OF DIRECTORS

CHARLES G. VON ARENTSCHILDT

SHELLEY G. BROADER

JEFFREY N. EDWARDS

BENJAMIN C. ESTY

FRANCIS S. GODBOLD

THOMAS A. JAMES

GORDON L. JOHNSON

RODERICK C. MCGEARY

PAUL C. REILLY

ROBERT P. SALTZMAN

WICK SIMMONS

SUSAN N. STORY

INDEPENDENT AUDITORS

KPMG LLP

John Rodi, Lead Engagement Partner

John Crish, Engagement Partner

Julie Barba, Senior Manager

THANK YOU

Wick Simmons

PROXY REVIEW

RJF HIGHLIGHTS Twelve Months

Ended

September 2015

Twelve Months

Ended

September 2014

Change*

* Percentage change in this table reflects calculations from actual numbers and cannot be recalculated from the figures shown

due to rounding differences.

As of September 2015 Change* As of September 2014

Total Revenues $5.31 billion $4.97 billion 7%

Net Revenues $5.20 billion $4.86 billion 7%

Net Income $502 million $480 million 5%

Net Income Per Share (diluted) $3.43 $3.32 3%

Equity Attributable to RJF $4.5 billion $4.1 billion 9%

Market Capitalization $7.1 billion $7.6 billion (6)%


* Charts are intended to show relative contribution of each of the firm's four core business segments. Dollar amounts do not add to total net

revenues due to "Other" segment and intersegment eliminations not being depicted. Other includes the firm's principal capital and private

equity activities, as well as certain corporate overhead costs of Raymond James Financial including the interest cost on our public debt.

2015

$5,200,210,000

Core Business Net Revenue, Twelve Months Ended September 30*

Private

Client

Group

$3,508m

67%

Capital

Markets

$960m

18%

Asset

Mgmt.

$392m

7%

RJ Bank

$414m

8%

Other

0%

Other

(1)%

Private

Client

Group

$3,280m

67%

Capital

Markets

$953m

19%

Asset

Mgmt.

$370m

8%

RJ Bank

$352m

7%

2014

$4,861,369,000


Private

Client

Group

$342m

43%

Capital

Markets

$107m

13%

Asset

Mgmt.

$135m

17%

RJ Bank

$279m

35% Private

Client

Group

$330m

44%

Capital

Markets

$131m

18%

Asset

Mgmt.

$128m

17%

RJ Bank

$243m

32%

Core Business Pre-Tax Income, Twelve Months Ended September 30*

*Charts are intended to show relative contribution of each of the firm's four core business segments. Dollar amounts do not add to Pre-Tax

Income due to "Other" segment not being depicted. Other includes the firm's principal capital and private equity activities, as well as certain

corporate overhead costs of Raymond James Financial including the interest cost on our public debt.

2015

$798,174,000

2014

$748,045,000

RJF HIGHLIGHTS

Three Months

Ended

December 2015

Three Months

Ended

December 2014

Change*

* Percentage change in this table reflects calculations from actual numbers and cannot be recalculated from the figures shown

due to rounding differences.

Total Revenues $1.30 billion $1.28 billion 2%

Net Revenues $1.27 billion $1.25 billion 2%

Net Income $106 million $126 million (16)%

Net Income Per Share (diluted) $0.73 $0.87 (16)%

Equity Attributable to RJF $4.6 billion $4.3 billion 9%

Market Capitalization $8.3 billion $8.1 billion 2%

As of December 2015 Change* As of December 2014

RJF HIGHLIGHTS

Total Assets $26.9 billion

Shares Outstanding 143.7 million

Equity Attributable to RJF $4.6 billion

Book Value Per Share $32.37

Leverage (Assets / RJF Equity) 5.79x

Senior Notes Payable $1.15 billion

Leverage Ex. RJ Bank 3.87x

Balance Sheet Highlights, as of December 31, 2015


* Charts are intended to show relative contribution of each of the firm's four core business segments. Dollar amounts do not add to total net

revenues due to "Other" segment and intersegment eliminations not being depicted. Other includes the firm's principal capital and private

equity activities, as well as certain corporate overhead costs of Raymond James Financial including the interest cost on our public debt.

2015

$1,274,517,000

Core Business Net Revenue, Three Months Ended December 31*

Private

Client Group

$872m

67%

Capital

Markets

$227m

18%

Asset

Mgmt.

$100m

8%

RJ Bank

$108m

8%

Other

(1)% Other

(1)%

Capital

Markets

$232m

18%

Asset

Mgmt.

$100m

8%

RJ Bank

$101m

8%

2014

$1,252,460,000

Private

Client Group

$845m

67%


2015

$168,338,000

Core Business Pre-Tax Income, Three Months Ended December 31*

Private

Client

Group

$69m

41%

Capital

Markets

$25m

15%

Asset

Mgmt.

$33m

20%

RJ Bank

$66m

39%

Capital

Markets

$28m

14%

Asset

Mgmt.

$40m

20%

RJ Bank

$64m

32%

2014

$202,908,000

Private

Client

Group

$93m

46%

* Charts are intended to show relative contribution of each of the firm's four core business segments. Dollar amounts do not add to Pre-

Tax Income due to "Other" segment not being depicted. Other includes the firm's principal capital and private equity activities, as well as

certain corporate overhead costs of Raymond James Financial including the interest cost on our public debt.

PRIVATE CLIENT GROUP TRENDS

Pre-Tax Income

$ Millions

13.0% CAGR

5-Year 2015

16.0% CAGR

5-Year 2015

Total Revenue

$ Millions

AN

NU

AL

IZE

D

AN

NU

AL

IZE

D

PRIVATE CLIENT GROUP TRENDS

5.1% CAGR

5-Year 2015

12.7% CAGR

5-Year 2015

Number of Advisors PCG Assets Under Administration

$ Billions

CAPITAL MARKETS TRENDS

Total Revenue

$ Millions

9.4% CAGR

5-Year 2015

Pre-Tax Income

$ Millions

6.3% CAGR

5-Year 2015

AN

NU

AL

IZE

D

AN

NU

AL

IZE

D

ASSET MANAGEMENT GROUP TRENDS

Total Revenue

$ Millions

14.8% CAGR

5-Year 2015

Pre-Tax Income

$ Millions

23.5% CAGR

5-Year 2015

AN

NU

AL

IZE

D

AN

NU

AL

IZE

D

RAYMOND JAMES BANK TRENDS

Pre-Tax Income

$ Millions

Total Revenue

$ Millions

Assets

$ Billions

6.4% CAGR

5-Year 2015

9.0% CAGR

5-Year 2015

20.0% CAGR

5-Year 2015

AN

NU

AL

IZE

D

AN

NU

AL

IZE

D

1 Includes $3.5 billion excess for regulatory reasons.

1


Net Interest Earnings


Percentage of Total Revenues

Transactional vs. Recurring Revenues

Recurring

Transactional


RJF Stock Price vs. Sector, Five-Year Change

Five Years Ended December 31, 2015


Total Return Performance vs. Select Peer Financial Services Competitors As of February 17, 2016

-40%

-30%

-20%

-10%

0%

10%

20%

YTD 1-Year 5-Year

RJF

Peer Group*Average

*Peer Group includes Ameriprise Financial, Evercore Partners, Goldman Sachs, Greenhill & Co, Lazard, LPL, Morgan Stanley,

Piper Jaffray and Stifel.

FINANCIAL SUMMARY

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 CAGR**

Total Revenues* $2,168

$2,646

$3,110

$3,205

$2,603

$2,980

$3,400

$3,898 $4,596 $4,965 $5,308 9.4 %

Net Revenues* 2,050

2,349

2,610

2,813

2,546

2,917

3,334

3,807 4,485 4,861 5,200 9.8 %

Net Income* 151 214 250 235 153 228 278 296 367 480 502 12.8 %

Net Income

per Share: Basic 1.37 1.86 2.10 1.95 1.25 1.83 2.20 2.22 2.64 3.41 3.51 9.9 %

Total Assets* 8,365

11,505

16,229

20,710

18,227 17,883

18,007

21,160 23,186 23,326 26,480 12.2 %

*Figures are in millions

**CAGR are calculated for FY2005 through FY2015


Return on Equity


Long-Term Stock Performance

$374,922 16.26%

Rate of Return,

Including

Reinvested

Dividends

$239,474 14.67%

Rate of Return,

Excluding

Dividends

$74,088 10.60%

S&P 500 Index

Rate of Return,

Including

Reinvested

Dividends *

200 Shares of RJF Stock Purchased at Initial Offering

* Performance of the S&P 500 was calculated by investing the equivalent amount needed to purchase 200 shares of RJF stock on the IPO

date of 7/1/1983, and then multiplying that amount by the close of the S&P 500 at the date of each fiscal year end between 1984-2016.

Dividends were reinvested quarterly.


Present Day vs. First Year as a Public Company

2015 vs. 1983 Operating Metrics

Total Revenues $70.6 million

Total Pre-Tax Income $9.2 million

Equity Attributable to RJF $28.3 million

$5.3 billion

$798.2 million

$4.5 billion

Twelve Months Ended

September 1983

Twelve Months Ended

September 2015

As of Sept. 2015 As of Sept. 1983 Increase*

14.5%

15.0%

17.2%

* Increase in this table reflects calculations from actual numbers and cannot be recalculated from the

figures shown due to rounding differences.

160x

87x

75x

Increase*

CAGR 32-year 2015

CAGR 32-year 2015

VOTING CLOSED


Paul Reilly, CEO

CONTINUED PROFITABILITY

112 Consecutive Profitable Quarters

Earn

ing

s P

er

Sh

are

(B

asic

)

Trailing 10 Years

CLIENT-FIRST VALUES BASED CULTURE

INTEGRITY

INDEPENDENCE CONSERVATISM

CLIENT

FIRST

CORPORATE STRATEGY

Succession Planning Advisor Training

and Support

Associate Career

Support

INVESTING IN PEOPLE

Cybersecurity

INVESTING IN TECHNOLOGY

Mobile Capabilities Advisor Desktop

LONG-TERM, CONSERVATIVE VIEW

>2X Regulatory Requirement

$1 Billion

Cash

24%

ADVISOR-CENTRIC CULTURE

SECOND IN J.D. POWER INDEPENDENT

ADVISOR SATISFACTION SURVEY

1 Edward Jones 925

2 Raymond James & Associates 885

3 Charles Schwab 785

4 Wells Fargo Advisors 706

Industry Average 701

5 UBS Financial Services 683

6 Merrill Lynch Wealth Management 645

7 Morgan Stanley 611

1 Commonwealth Financial Network 950

2 Raymond James Financial Services 908

3 Cambridge Investment Research 903

Industry Average 773

4 Ameriprise Financial 763

5 LPL Financial 743

SECOND IN J.D. POWER EMPLOYEE

ADVISOR SATISFACTION SURVEY

2015 J.D. Power Financial Advisor Satisfaction Study Results

ADVISOR-CENTRIC CULTURE

FIRST IN REP. MAGAZINE’S

BROKER REPORT CARD 2015

#1 Raymond James & Associates 9.3

2 Edward Jones 9.2

3 UBS / Industry Average 8.1

4 Wells Fargo Advisors 7.5

5 Morgan Stanley 7.4

6 Merrill Lynch Wealth Management 7.3

REGULATION

2,600 Associates

30 States 5,600 Hours

CULTURE OF SERVICE & GIVING

Public Finance

Expansion

Advisor

Recruiting

Investment Banking

Life Sciences

RECRUITING

CLIENT OF THE FUTURE


Products & Services Technology


Advisor Training Diversity Focus


1995 2000 2005 2010 2015

ECM United States/Europe Net Revenues

$ Millions

ECM

Formalized

Lane

Berry

Acquired

Howe

Barnes

Acquired

Morgan

Keegan

Merger

1996 2009 2011 2012

ACQUISITIONS

All references to "Alex. Brown” are intended for illustrative purposes only and are conditioned

upon the closing of the transaction whereby Raymond James acquires Deutsche Bank's

Private Client Services business.

ACQUISITION RATIONALE

1 Culture

2 Strategic Benefit

Price 4 3 Ability to Integrate

HERITAGE OF ALEX. BROWN

Alex. Brown Building by Jyothis, licensed under CC BY 3.0 via Commons

https://commons.wikimedia.org/wiki/File:AlexBrownBuilding.JPG#/media/File:AlexBrownBuilding.JPG

HISTORY OF RAYMOND JAMES

SHARED VALUES

SHARED VALUES

INTEGRITY


CLIENT

FIRST

RAYMOND JAMES FINANCIAL – IPO

Drexel Burnham

Dain Bosworth

Bear Stearns

First Boston

AG Becker Paribas

Blyth Eastman Paine Webber

Oppenheimer

Alex Brown & Sons

Kidder Peabody

Lazard Feres

Merrill Lynch

Prudential Bache

L F Rothschild

Shearson

Piper Jaffray

Advest

Banque de Paris

AG Edwards

Ladenburg,Thalmann

Montgomery

Moseley, Hallgarten

Robertson, Colman & Stephens

Thomas McKinnon

Tucker Anthony

Bacon Stifel Nicolaus

Bateman Eicher

Blunt Ellis

Boettcher & Company

Cowen

Whitehead

Eppler, Guerin & Turner

First of Michigan

Gruntal

Herzfeld

Howard, Weil, Labousse

Interstate Securities

Johnson Lane

Johnston Lemon

Josephthal

Legg Mason

Neward Cook

The Ohio Company

Parker/Hunter

Rauscher Pierce

Robinson Humphrey

Boenning & Scattergood

Rotan Mosle

Schneider, Bernet & Hickman

Sutro

Underwood, Neuhaus

Wheat First

Allen & Company

Anderson Strudwick

DH Blair

Burgess & Leith

Carolina Securities

Craig-Hallum

Craigie Inc

JC Bradford

Butcher

Woodman Kirpatrick

& Singer

D A Davidson

Davis Scaggs

R G Dickinson

Evans & Co

First Albany

First Equity

First Mid America

Furman Selz

Gintel

Heaford & Company

Institutional Equity Corp

Edward D Jones

John G Kinnard

Laidlaw Adams

Cyrus Lawrence

Manley, Bennet McDonald

Moore & Schley Capital

Morgan Keegan

Morgan Olmstead, Kennedy

Neuberger & Berman

WH Newbold’s and Son

Rodman & Renshaw

Rooney, Pace

R. Rowland & Co

Scherck, Stein & Franc

Seidler Amdec

Weinrich Zitzmann

Underwriting Companies – 1983


Piper Jaffray

Oppenheimer

Stifel Nicolaus

Legg Mason


Davidson

Edward Jones

Neuberger & Berman

Ladenburg, Thalmann

Underwriting Companies –Today


Piper Jaffray

Oppenheimer

Stifel Nicolaus

Legg Mason


Davidson

Edward Jones

Neuberger & Berman

Ladenburg, Thalmann

Underwriting Companies –Today

Alex. Brown

STRATEGIC BENEFIT: GEOGRAPHIC EXPANSION

STRATEGIC BENEFIT: ULTRA HNW

STRATEGIC BENEFIT: CONTINUED HNW GROWTH

Average

Production

Top 200 Raymond James $ 2.4 million

Alex. Brown $ 1.5 million

Average

Production

Top 800 Raymond James $ 1.5 million

Alex. Brown $ 1.5 million

Raymond James includes domestic employee and independent contractor advisors.

STRATEGIC BENEFIT: ENHANCEMENTS

RATIONALE: ABILITY TO INTEGRATE

MERGER RATIONALE: FINANCIALLY COMPELLING

THE PREMIER ALTERNATIVE TO WALL STREET

CLIENT-FIRST, VALUES-BASED CULTURE

INTEGRITY


CLIENT

FIRST

RAYMOND JAMES BANK

Steve Raney

President & CEO, Raymond James Bank

RAYMOND JAMES BANK

RJ Bank’s vision is to maximize shareholder value through prudent investing, efficient operations and delivery

of selected banking products that enhance client relationships while providing mutually beneficial

opportunities for financial advisors and affiliates.

Conservative Credit

Standards

Prudent Financial /

Capital Management

Strong Internal Controls / Regulatory Compliance

Sustainable, Profitable Growth

Serve Financial Advisors, Retail & Institutional

Clients

Business Model

• Stable, low cost source of

deposits

• Flexible deposit base and

capital base

• Only one branch and two ATMs

(no plans to increase either)

• Synergies with Private Client

Group and Capital Markets

Segments

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&docid=-0Iem6XOmIrZnM&tbnid=W3mFesrTVIlBWM:&ved=0CAUQjRw&url=http://www.stonac.co.uk/process-improvement/&ei=6fIcUdzKIoXY9ASvjoCQBQ&bvm=bv.42452523,d.eWU&psig=AFQjCNHzm24DFw_Q2UdQqTo262rRcFXSqw&ust=1360938043234711

RAYMOND JAMES BANK

RJ Bank has a targeted lending strategy focused on corporate, commercial real estate and retail loans.

Corporate

(C&I) Residential Mortgages

Typically target:

• Institutional / Capital Markets

clients

• Relatively mature industries

• Near investment grade ratings

• EBITDA greater than $25 -

$50 million

• No mezzanine lending

• Mostly floating rate facilities

• Target debt service coverage

of at least 1.25x

Tax-Exempt Lending:

• Public Finance clients

• Investment grade ratings

• Generally secured by pledge

of revenues or taxes

Typically target:

• Private Client Group

clients

• High credit quality / strong

payment histories

• Well collateralized loans

• No Alt. A / subprime /

negative amortizing

mortgages

Commercial Real Estate

(CRE)

Typically target:

• Institutional / Capital

Markets clients

• REITs and stabilized

properties – limited

exposure to construction /

development

• Project finance loans are

well collateralized and

provided to experienced

borrowers with good

repayment histories

Securities Based Lending

Typically target:

• High Net Worth Private

Client Group clients

• Flexible, LIBOR-based

line of credit used for

non-purpose lending

• Collateralized by assets

in brokerage accounts

RAYMOND JAMES BANK

112

173

240 268

243 279

66

FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FYTD16

263* 258 269

336 347 352

414

108

FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FYTD16

3.31% 3.43% 3.50% 3.25%

2.98% 3.07%

2.90%

Net Revenues

($ millions) Pre-Tax Income

($ millions)

RJ Bank has consistently grown revenues and pre-tax income, although

compression of net interest margins has resulted in headwinds since FY 2012.

20% 5-YR

CAGR 434*

Net

Interest

Margin

Net

Revenues

* First quarter of fiscal 2016, annualized.

Notes: Charts not to scale; FYTD 16 includes first quarter of fiscal year 2016.

RAYMOND JAMES BANK

6,095 6,548

7,992 8,821

10,964

12,988 13,733

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Q1 FY 16

RAYMOND JAMES BANK

NET LOAN GROWTH

($ millions)

RJ Bank has grown its loan portfolio nearly 16% annually since FY 2010.

16%

5 -YR

CAGR

Commercial and

Industrial, 45.9%

Commercial Real Estate,

18.4%

Residential Mortgages,

35.7%

RAYMOND JAMES BANK

RJ Bank maintains a well-diversified loan portfolio, particularly in terms of type of loans.

Commercial and

Industrial 51.2%

Commercial Real Estate

16.8%

Residential Mortgages

14.8%

Securities Based Loans

11.7%

Tax Exempt Loans 4.2%

Loans Held for Sale

1.3%

LOAN COMPOSITION

(% of total loans, Q1 FY 2016)

LOAN COMPOSITION

(% of total loans, FYE 2009)

RAYMOND JAMES BANK

, 96.8%

Energy Portfolio,

3.2%

Energy Portfolio Statistics

(Q1 FY 2016)

Total Loan Portfolio

(Q1 FY 2016)

Subsector

# of

Loans

Total

($ millions)

Midstream Products and

Services 24 $323.2

Oilfield Services 4 $58.5

Mining and Minerals 3 $52.1

Exploration and

Production 1 $10.3

$13.7 billion

32 Loans for $444.1 million,

representing 3.2% of Total Loans

Energy Reserves of $18.7 million

• 10.1% of Total Reserves

• 4.2% of Energy Outstandings

• 23.1% of Energy Criticized Outstandings

The Energy industry, particularly the Exploration and Production subsector, represents only a modest portion of

the overall loan portfolio, and RJ Bank continuously monitors its Energy reserves.

80,413

33,655 25,894

2,565 13,565 23,570

13,910

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FYTD 16

2.48%

1.64% 1.18%

0.99% 0.69%

0.39% 0.34%


2.36% 2.18% 1.81%

1.52% 1.33% 1.32% 1.35%


RAYMOND JAMES BANK

PROVISION EXPENSE

($ thousands)

NET CHARGE OFFS

($ thousands)

NONPERFORMING ASSETS

(% of total assets)

ALLOWANCE FOR LOAN LOSSES

(% of loans)

83,601

34,995 24,214 13,309 1,747 (2,757) 323


Notes: Charts not to scale; FYTD 16 includes first quarter of fiscal year 2016.

KEY CREDIT TRENDS

RAYMOND JAMES BANK

Expand Lending and Cash Management Solutions to Private

Client Group including Aligning High Net Worth Offering as part

of the Alex. Brown Integration*

Lending to Capital Markets Clients

GROWTH INITIATIVES

RJ Bank’s growth initiatives continue to be focused on strengthening relationships with clients in the Private

Client Group and Capital Markets segments.

*References to “Alex. Brown” are intended for illustrative purposes only and are conditioned upon the

closing of the transition where by Raymond James acquires Deutsche Bank’s PCS division.

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=iVtj3e4QS_9OaM&tbnid=I_MU-ZSgO52ZNM:&ved=0CAUQjRw&url=http://www.profoundpacific.com/businessevents.cfm&ei=HL8jUfqjNIT68gSgqYAQ&bvm=bv.42553238,d.eWU&psig=AFQjCNG913jMikPTW4OlTDNLWq5EhkJH8g&ust=1361383569724350

RAYMOND JAMES BANK

Higher levels of bank loan loss provision expense

commensurate with loan growth

More resilient net interest margins; poised for rising

rates given limited fixed-rate exposure

OUTLOOK

Continued growth in loan portfolio with focus on

expanding synergies with PCG and Capital Markets

Intensifying regulatory environment


Tom James

Executive Chairman

REPORT OF VOTE

THANK YOU

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