A letter from our chair and chief executive officer

In fiscal 2024, Raymond James achieved our fourth consecutive year with record results. Our strong financial results were driven by record revenues and pre-tax income in the Private Client Group and Asset Management segments. Record net revenues of $12.8 billion increased 10%, record pre-tax income of $2.6 billion increased 16% and record net income available to common shareholders of $2.06 billion increased 19% compared to fiscal 2023.

Additionally, we generated a return on common equity of 18.9% and an adjusted return on tangible common equity of 23.3%¹ – both strong results particularly given our robust capital position. We ended the year with total common equity attributable to RJF of $11.6 billion and book value per share of $57.03, which increased 14% and 17%, respectively, over September 2023. Our capital ratios remained well above regulatory requirements, with a total capital ratio of 24.1% and tier 1 leverage ratio of 12.8% at the end of the year, providing significant flexibility to continue being opportunistic and investing in growth.

In fiscal 2024, the firm returned $1.3 billion to shareholders through the combination of common stock dividends and share repurchases. The quarterly common stock dividend increased in the year approximately 7% to $0.45 per quarter and we repurchased 7.7 million shares for $900 million, an average price of approximately $117 per share. Subsequent to the fiscal year end, the board approved an 11% increase of the quarterly dividend on our common stock to $0.50 per share and a share repurchase authorization of up to $1.5 billion, which replaces the previous authorization under which $644 million remained available. Over the long term, our capital deployment priorities remain steadfast: investing in organic growth, which we believe delivers the best returns for our shareholders over time; selectively making acquisitions; paying an ongoing dividend; and repurchasing our common stock. We are committed to driving long-term growth and deploying excess capital to generate attractive returns for our shareholders.

Reviewing our segment results, the Private Client Group, our largest business, generated record net revenues of $9.5 billion, an increase of 9% over fiscal 2023, and record pre-tax income of $1.8 billion, a 1% increase over fiscal 2023. Record net revenues were driven primarily by higher client asset levels. Fiscal 2024 concluded with PCG assets under administration of $1.5 trillion and PCG assets in fee-based accounts of $875 billion, up 25% and 28%, respectively, compared to the end of fiscal 2023. In addition to higher equity markets, client assets were boosted by strong net inflows, which included healthy domestic PCG net new assets of $61 billion, or 5.5% of beginning-of-period assets, driven by strong financial advisor retention and recruiting.

We ended the year with nearly 8,800 financial advisors affiliated with the firm. Despite a competitive environment, our regrettable attrition remained very low in fiscal 2024. Meanwhile, financial advisors totaling approximately $335 million of trailing 12-month production and approximately $57 billion of assets at their prior firms joined Raymond James’ domestic employee and independent contractor channels during the year. Our recruiting pipeline is strong across all affiliation options as our client-first values and leading technology, product, and service offerings continue to resonate with current and prospective advisors.

Supported by a strong team, the Capital Markets segment results improved over the prior year despite the continued challenging market environment. The segment generated net revenues of $1.5 billion, up 21% compared to prior-year results, and pre-tax income of $67 million. Elevated interest rates and valuation concerns continued to pressure investment banking activity and transaction closings across the industry. We were pleased to see significantly improved results in our fiscal fourth quarter of 2024 as the market environment became more constructive for investment banking results, particularly M&A. Our M&A pipeline remains healthy, and we are optimistic that the consistent investments in our platform and people over the years will drive growth over time.

Fixed income brokerage revenues grew as client activity improved, particularly with small and mid-sized depositories, as deposit levels stabilized throughout the year and the rate environment became clearer. While the market is still challenging, we’ve begun to see some improvement as depository clients are starting to be more engaged in managing their securities portfolio owing to short-term rates decreasing and the yield curve steepening.

The Asset Management segment generated record net revenues of $1.03 billion, which increased 16%, and record pre-tax income of $421 million, which increased 20% over fiscal 2023. Financial assets under management ended the year at $244.8 billion, representing a 25% increase year-over-year, driven by strong net inflows in fee-based accounts in the Private Client Group, as well as significant market appreciation. And while the entire industry has been challenged by high levels of redemption activity, Raymond James Investment Management’s record levels of sales in fiscal 2024 are a testament to our strong portfolio management and sales teams.

Bank segment net revenues of $1.72 billion decreased 15%, while pre-tax income of $380 million increased 2%, compared to fiscal 2023. Net revenues declined due to lower net interest income, which was largely the result of increased interest expense from higher-cost funding. The Bank segment’s net interest margin decreased 61 basis points during the fiscal year to 2.67%. Pre-tax income grew, primarily driven by lower Raymond James Bank Deposit Program fees paid to PCG and a lower bank loan provision for credit losses. The Enhanced Savings Program, which offers clients a competitive rate and robust FDIC insurance for deposits, ended the fiscal year at $14.0 billion, providing an important source of diversified funding to the firm as domestic cash sweep balances stabilized following a sharp decline the prior year. Net bank loans increased 5% to $46 billion driven primarily by the growth of securities-based loans and residential mortgage loans. The credit quality of the loan portfolio remained strong, with criticized loans as a percent of total loans held for investment ending the fiscal year at 1.47% and nonperforming assets as a percent of total assets at 0.28%. The bank loan allowance for credit losses as a percent of total loans held for investment was approximately 1%, and the bank loan allowance for credit losses on corporate loans as a percent of corporate loans held for investment was approximately 2%. We remain focused on fortifying the balance sheet in our Bank segment with diversified funding sources and prudently growing assets to support client demand.

Complementing the performance within our businesses, we also achieved several other notable accomplishments during the fiscal year:

• Our associates and advisors continue to give back and support the communities where we live and work. This year during Raymond James Cares Month, an annual tradition of month-long focused giving, more than 3,300 advisors and associates volunteered over 8,300 hours to benefit more than 260 charitable organizations across the United States, Canada and the U.K. Additionally, between associate contributions and a company match, Raymond James raised more than $7 million for communities across the United States through its annual United Way campaign, and associates, advisors, friends and family members across the country supported various American Heart Association events, together raising over $370,000 in fiscal year 2024.
• In the wake of Hurricanes Helene and Milton, Raymond James supported our impacted communities and associates by giving stipends to eligible associates and by donating to relief organizations including the American Red Cross, United Way Florida Disaster Recovery Fund, Friends of Raymond James and other charitable organizations across impacted communities. Firm leaders also contributed more than $450,000 in personal donations to Friends of Raymond James. In total, the firm and leadership team contributed approximately $11 million to associate and community relief.
• Raymond James was honored with more than a dozen awards in technology, practice management support, diversity and overall corporate reputation, while more than 500 financial advisors earned awards and were named to industry lists across multiple categories.
• Our technology platform for advisors is one of the best in the industry. This year, we continued to evolve our Artificial Intelligence program with enhancement to the advisor platform including fully integrated Microsoft Copilot.

Following a multi-year succession planning process, designed to build upon the firm’s well-established position for future growth, Paul Shoukry was appointed president of Raymond James Financial and will become CEO following our Annual Meeting in February 2025. Upon becoming CEO, Paul will become only the fourth chief executive in the company’s history.

We are fortunate that Tom James remains with the firm as chair emeritus, and following this transition, I will continue to serve on the board as executive chair. Paul has been an exceptional leader and major contributor to Raymond James’ steady growth and financial stability thus far. Serving as the firm’s CFO, as well as overseeing our Bank segment, he has consistently demonstrated that even as we grow, keeping our Private Client Group, advisors and their clients at the center of our business plans – while always embracing our values – will remain essential to our future success. I have every confidence in his and his management team’s ability to lead the firm and look forward to continuing to work with Paul during and after this transition.

In addition, there were several other leadership changes and appointments announced. Jeff Dowdle retired and stepped down as COO at the end of fiscal 2024. During his career at Raymond James, Jeff contributed significantly to the firm's growth and success. George Catanese announced his retirement as chief risk officer following a long and impactful career at the firm. David Krauss joined the firm as chief risk officer, bringing many years of leadership and experience in the financial services industry, and I know he will benefit from the fantastic team George developed. I thank Jeff and George for their leadership and dedication, and I’m pleased they will serve in an advisory capacity to facilitate smooth transitions.

As part of these changes, Private Client Group President Scott Curtis became COO of Raymond James Financial, Raymond James & Associates CEO Tash Elwyn was promoted to president of the Private Client Group, Global Equities & Investment Banking President Jim Bunn became president of the Capital Markets segment, Raymond James Bank Chairman and CEO Steve Raney became executive chairman of the Bank segment, and Chief Accounting Officer Butch Oorlog was named chief financial officer.

The board and I are very confident that our succession planning process has identified capable and experienced leaders who represent over 100 years of experience with Raymond James. They each embody our culture and have been important contributors to our success.

With our focus on good governance practices, including productive board refreshment, our board of directors appointed two new directors this year.

Following the sudden and devasting loss of our friend and board member Bob Dutkowsky, Cecily Mistarz, former executive vice president and U.S. chief risk officer of BMO Financial Group, was selected to join the board. Cecily brings extensive risk management experience to our discussions as Raymond James navigates an increasingly dynamic regulatory landscape. We believe her client-focused approach fits seamlessly with our culture and we look forward to her contributions.

Raymond James President Paul Shoukry, who will transition to the CEO role in February 2025, also joined the board. His contributions will be crucial to sustaining our culture, and to delivering outstanding service and industry-leading resources to advisors and their clients.