What changed in this filing

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Item 1. Financial Statements

2023-05-08 compared with 2023-02-03 · 430 added, 195 removed, 1452 unchanged (30% of the section changed)

3 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

$ in millions, except per share amounts December 31, 2022 September 30, 2022

$ in millions, except per share amounts March 31, 2023 September 30, 2022

Cash and cash equivalents $ 8,663 $ 6,178

32 unchanged sentences

650,000,000 shares authorized;

248,081,414 shares issued and 214,984,869 shares outstanding as of December 31, 2022;

248,323,901 shares issued and 211,581,156 shares outstanding as of March 31, 2023;

248,018,564 shares issued and 215,122,523 shares outstanding as of September 30, 2022

2 unchanged sentences

Treasury stock, at cost;

33,096,545 and 32,896,041 common shares as of December 31, 2022 and September 30, 2022, respectively

36,742,745 and 32,896,041 common shares as of March 31, 2023 and September 30, 2022, respectively

( 1,954 ) ( 1,512 )

8 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

Three months ended December 31,

Three months ended March 31, Six months ended March 31,

in millions, except per share amounts 2023 2022 2023 2022

6 unchanged sentences

Investment banking

154 235 295 660

Interest income

915 242 1,742 467

Total revenues

3,157 2,711 6,184 5,529

Interest expense

( 284 ) ( 38 ) ( 525 ) ( 75 )

2,873 2,673 5,659 5,454

Non-interest expenses:

Compensation, commissions and benefits

1,820 1,852 3,556 3,736

Non-compensation expenses:

Communications and information processing

153 127 292 239

Occupancy and equipment

68 62 134 121

Business development

1 unchanged sentence

Professional fees

Bank loan provision/(benefit) for credit losses 14 ( 11 )

Bank loan provision for credit losses 28 21 42 10

119 77 176 155

Total non-compensation expenses 496 388 894 727

1 unchanged sentence

Pre-tax income

557 433 1,209 991

Provision for income taxes

130 110 273 222

Net income 427 323 936 769

6 unchanged sentences

Weighted-average common shares outstanding – basic

214.3 207.7 214.5 207.0

Weighted-average common and common equivalent shares outstanding – diluted

219.2 213.0 219.7 212.6

$ 427 $ 323 $ 936 $ 769

Other comprehensive income/(loss), net of tax:

Available-for-sale securities

97 ( 320 ) 144 ( 375 )

Currency translations, net of the impact of net investment hedges 7 ( 11 ) 53 ( 11 )

Cash flow hedges

( 11 ) 29 ( 13 ) 38

Total other comprehensive income/(loss), net of tax 93 ( 302 ) 184 ( 348 )

4 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

Three months ended December 31,

Three months ended March 31, Six months ended March 31,

$ in millions, except per share amounts 2023 2022 2023 2022

1 unchanged sentence

Balance beginning of period

$ 120 $ — $ 120 $ —

Shares issuances — — — —

6 unchanged sentences

Balance beginning of period

2,055 2,987 2,088

Employee stock purchases

Distributions due to vesting of restricted stock units and exercise of stock options, net of forfeitures ( 11 )

( 17 ) ( 110 ) ( 122 )

Share-based compensation amortization 56

Balance end of period

3,035 2,093 3,035 2,093

Retained earnings:

Balance beginning of period

8,003 8,843 7,633

Net income 427

2 unchanged sentences

Balance end of period

9,590 8,256 9,590 8,256

Treasury stock:

17 unchanged sentences

$ ( 26 ) $ 52 $ ( 26 ) $ 58

Net income attributable to noncontrolling interests — 2

Net loss attributable to noncontrolling interests — ( 2 ) — —

Deconsolidations and sales — ( 43 ) — ( 51 )

Balance end of period

( 26 ) 7 ( 26 ) 7

Total shareholders’ equity

4 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Three months ended December 31,

Six months ended March 31,

$ in millions 2023 2022

4 unchanged sentences

Premium and discount amortization on available-for-sale securities and bank loans and net unrealized gain/loss on other investments ( 23 ) 24

Provisions/(benefits) for credit losses and legal and regulatory proceedings 21 ( 8 )

Provisions for credit losses and legal and regulatory proceedings 78 16

Share-based compensation expense 138 109

Unrealized gain on company-owned life insurance policies, net of expenses ( 48 ) ( 38 )

Unrealized (gain)/loss on company-owned life insurance policies, net of expenses ( 86 ) 19

Other ( 3 ) 10

18 unchanged sentences

Available-for-sale securities maturations, repayments and redemptions

Cash and cash equivalents acquired in business acquisitions, including those segregated for regulatory purposes, net of cash paid for acquisitions — 1,671

Additions to property and equipment

( 69 ) ( 42 )

Purchase of Federal Home Loan Bank stock, net ( 35 ) —

Investment in note receivable — ( 125 )

Purchases of other investments, net ( 6 ) ( 80 )

Other investing activities, net ( 44 ) ( 71 )

4 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Three months ended December 31,

Six months ended March 31,

$ in millions 2023 2022

25 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2022

March 31, 2023

NOTE 1 – ORGANIZATION AND BASIS OF PRESENTATION

33 unchanged sentences

$ in millions Level 1 Level 2 Level 3 Netting

adjustments Balance as of December 31, 2022

adjustments Balance as of March 31, 2023

Assets at fair value on a recurring basis:

13 unchanged sentences

Derivative assets:

Interest rate - matched book — 14 — — 14

Interest rate - other 2 418 — ( 327 ) 93

Interest rate 9 361 — ( 279 ) 91

Total derivative assets 9 361 — ( 279 ) 91

12 unchanged sentences

Government and agency obligations 99 2 — — 101

Non-agency CMOs and ABS — 4 — — 4

Total debt securities 100 569 — — 669

2 unchanged sentences

Derivative liabilities:

Interest rate - matched book — 14 — — 14

Interest rate - other 3 479 — ( 61 ) 421

Interest rate 8 408 — ( 78 ) 338

Foreign exchange — 9 — — 9

26 unchanged sentences

Derivative assets:

Interest rate - matched book — 52 —

Interest rate - other 42 432 — ( 348 ) 126

Interest rate 42 484 — ( 348 ) 178

Foreign exchange — 10 — — 10

18 unchanged sentences

Derivative liabilities:

Interest rate - matched book

Interest rate - other

40 495 — ( 65 ) 470

Interest rate 40 547 — ( 65 ) 522

Foreign exchange

7 unchanged sentences

See Note 4 for further information.

(2) These assets are comprised of U.S.

Treasuries primarily purchased to meet certain deposit requirements with clearing organizations.

(2) These assets are primarily comprised of U.S.

Treasuries purchased to meet certain deposit requirements with clearing organizations.

RAYMOND JAMES FINANCIAL, INC.

5 unchanged sentences

In the following tables, gains/(losses) on trading and derivative instruments are reported in “Principal transactions” and gains/(losses) on other investments are reported in “Other” revenues on our Condensed Consolidated Statements of Income and Comprehensive Income.

Three months ended December 31, 2022

Three months ended March 31, 2023

Level 3 instruments at fair value

6 unchanged sentences

Purchases and contributions

Sales, distributions, and deconsolidations ( 20 ) — —

Sales and distributions ( 14 ) — —

Into Level 3 — — —

4 unchanged sentences

$ — $ ( 2 ) $ —

Three months ended December 31, 2021

Six months ended March 31, 2023

Level 3 instruments at fair value

Financial assets Financial liabilities

Trading assets Derivative assets Other investments Derivative liabilities

$ in millions Other Other All other Other

Trading assets Other investments Derivative liabilities

$ in millions Other All other Other

Fair value beginning of period

$ 1 $ 29 $ ( 3 )

Total gains included in earnings 2 1 — 1

Total gains/(losses) included in earnings

— ( 1 ) ( 1 )

Purchases and contributions

6 unchanged sentences

$ — $ ( 1 ) $ ( 1 )

As of December 31, 2022, 15 % of our assets and 2 % of our liabilities were measured at fair value on a recurring basis.

In comparison, as of September 30, 2022, 14 % of our assets and 2 % of our liabilities were measured at fair value on a recurring basis.

As of both December 31, 2022 and September 30, 2022, Level 3 assets represented less than 1 % of our assets measured at fair value on a recurring basis.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

Three months ended March 31, 2022

Level 3 instruments at fair value

Financial assets Financial liabilities

Trading assets Derivative assets Other investments Trading liabilities

$ in millions Other Other All other Other

Fair value beginning of period

$ 2 $ 1 $ 98 $ —

Total gains/(losses) included in earnings — ( 1 ) — ( 1 )

Purchases and contributions

Sales, distributions, and deconsolidations ( 18 ) — ( 40 ) —

Into Level 3 — — — —

Out of Level 3 — — ( 12 ) —

Fair value end of period

$ 13 $ — $ 53 $ ( 1 )

Unrealized gains/(losses) for the period included in earnings for instruments held at the end of the reporting period

$ ( 1 ) $ ( 1 ) $ — $ ( 1 )

Six months ended March 31, 2022

Level 3 instruments at fair value

Financial assets Financial liabilities

Trading assets Other investments Trading liabilities Derivative liabilities

$ in millions Other All other Other Other

Fair value beginning of period

$ 14 $ 98 $ — $ ( 1 )

Total gains/(losses) included in earnings

Purchases and contributions

Sales, distributions, and deconsolidations ( 57 ) ( 40 ) — —

Into Level 3 — — — —

Out of Level 3 — ( 12 ) — —

Fair value end of period

$ 13 $ 53 $ ( 1 ) $ —

Unrealized gains/(losses) for the period included in earnings for instruments held at the end of the reporting period

$ ( 1 ) $ — $ ( 1 ) $ —

As of both March 31, 2023 and September 30, 2022, 14 % of our assets and 2 % of our liabilities were measured at fair value on a recurring basis and Level 3 assets represented less than 1 % of our assets measured at fair value on a recurring basis.

Investments in private equity measured at net asset value per share

1 unchanged sentence

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, 2023 primarily included investments in third-party funds, including growth equity, venture capital, and mezzanine lending fund investments.

Our investments cannot be redeemed directly with the funds.

Our investments are monetized through the liquidation of underlying assets of fund investments, the timing of which is uncertain.

RAYMOND JAMES FINANCIAL, INC.

1 unchanged sentence

Notes to Condensed Consolidated Financial Statements (Unaudited)

Our private equity portfolio as of December 31, 2022 primarily included investments in third-party funds, including growth equity, venture capital, and mezzanine lending fund investments.

Our investments cannot be redeemed directly with the funds.

Our investments are monetized through the liquidation of underlying assets of fund investments, 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

December 31, 2022

March 31, 2023

Private equity investments measured at NAV $ 99 $ 35

11 unchanged sentences

(weighted-average)

December 31, 2022

March 31, 2023

Residential mortgage loans $ 2 $ 9 $ 11 Collateral or

20 unchanged sentences

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 on the Condensed Consolidated Statements of Financial Condition at December 31, 2022 and September 30, 2022.

This table excludes financial instruments that are carried at amounts which approximate fair value.

1 unchanged sentence

$ in millions Level 2 Level 3 Total estimated fair value Carrying amount

December 31, 2022

March 31, 2023

Financial assets:

23 unchanged sentences

unrealized losses Fair value

December 31, 2022

March 31, 2023

Agency residential MBS $ 5,272 $ 1 $ ( 520 ) $ 4,753

17 unchanged sentences

Total available-for-sale securities $ 11,100 $ — $ ( 1,215 ) $ 9,885

The amortized costs and fair values in the preceding table exclude $ 26 million and $ 24 million of accrued interest on available-for-sale securities as of December 31, 2022 and September 30, 2022, respectively, which was included in “Other receivables, net” on our Condensed Consolidated Statements of Financial Condition.

The amortized costs and fair values in the preceding table exclude $ 25 million and $ 24 million of accrued interest on available-for-sale securities as of March 31, 2023 and September 30, 2022, respectively, which was included in “Other receivables, net” on our Condensed Consolidated Statements of Financial Condition.

See Note 6 for more information regarding available-for-sale securities pledged with the Federal Home Loan Bank (“FHLB”) and Federal Reserve Bank of Atlanta (“FRB”).

RAYMOND JAMES FINANCIAL, INC.

4 unchanged sentences

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 December 31, 2022, the weighted-average life of our available-for-sale securities portfolio was approximately 4.49 years.

December 31, 2022

As a result, as of March 31, 2023, the weighted-average life of our available-for-sale securities portfolio was approximately 4.38 years.

March 31, 2023

$ in millions Within one year After one but

72 unchanged sentences

fair value Unrealized

December 31, 2022

March 31, 2023

Agency residential MBS

8 unchanged sentences

Other 13 — — — 13 —

$ 4,066 $ ( 245 ) $ 5,602 $ ( 885 ) $ 9,668 $ ( 1,130 )

Total $ 2,600 $ ( 116 ) $ 7,007 $ ( 889 ) $ 9,607 $ ( 1,005 )

September 30, 2022

10 unchanged sentences

$ 5,156 $ ( 405 ) $ 4,716 $ ( 810 ) $ 9,872 $ ( 1,215 )

At December 31, 2022, of the 1,066 available-for-sale securities in an unrealized loss position, 635 were in a continuous unrealized loss position for less than 12 months and 431 securities were in a continuous unrealized loss position for greater than 12 months.

At December 31, 2022, debt securities we held in excess of ten percent of our equity included those issued by the Federal National Home Mortgage Association and Federal Home Loan Mortgage Corporation with amortized costs of $ 5.24 billion and $ 3.13 billion, respectively, and fair values of $ 4.62 billion and $ 2.75 billion, respectively.

During the three months ended December 31, 2022 and December 31, 2021, there were no sales of available-for-sale securities.

At March 31, 2023, of the 1,072 available-for-sale securities in an unrealized loss position, 395 were in a continuous unrealized loss position for less than 12 months and 677 securities were in a continuous unrealized loss position for greater than 12 months.

At March 31, 2023, debt securities we held in excess of ten percent of our equity included those issued by the Federal National Home Mortgage Association and Federal Home Loan Mortgage Corporation with amortized costs of $ 5.07 billion and $ 3.05 billion, respectively, and fair values of $ 4.52 billion and $ 2.70 billion, respectively.

During the three and six months ended March 31, 2023 and March 31, 2022, there were no sales of available-for-sale securities.

RAYMOND JAMES FINANCIAL, INC.

7 unchanged sentences

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.

December 31, 2022 September 30, 2022

March 31, 2023 September 30, 2022

$ in millions Derivative assets Derivative liabilities Notional amount Derivative assets Derivative liabilities Notional amount

Derivatives not designated as hedging instruments

Interest rate - matched book $ 14 $ 14 $ 414 $ 52 $ 52 $ 1,340

Interest rate - other (1)

$ 353 $ 407 $ 16,404 $ 462 $ 535 $ 14,647

Interest rate - matched book 8 8 170 52 52 1,340

Foreign exchange — 4 1,128 4 5 958

23 unchanged sentences

(1) Relates to interest rate derivatives entered into as part of our fixed income business operations, including to-be-announced security contracts that are accounted for as derivatives, as well as our banking operations.

(2) During the quarter ended December 31, 2022, we entered into an interest rate swap to manage our risk of increases in interest rates associated with certain bank deposits by converting the balances subject to variable interest rates to a fixed interest rate.

(2) During the six months ended March 31, 2023, we entered into an interest rate swap to manage our risk of increases in interest rates associated with certain money market and savings accounts by converting the balances subject to variable interest rates to a fixed interest rate.

Such interest rate swap has been designated and accounted for as a cash flow hedge.

2 unchanged sentences

As a result, we present the matched book amounts net in the preceding table.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

The following table details the gains/(losses) included in accumulated other comprehensive income/(loss) (“AOCI”), net of income taxes, on derivatives designated as hedging instruments.

1 unchanged sentence

See Note 17 for additional information.

Three months ended December 31,

Three months ended March 31, Six months ended March 31,

$ in millions 2023 2022 2023 2022

2 unchanged sentences

Total gains/(losses) included in AOCI, net of taxes $ ( 14 ) $ 20 $ ( 30 ) $ 28

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

There were no components of derivative gains or losses excluded from the assessment of hedge effectiveness for each of the three months ended December 31, 2022 and 2021.

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, 2023 and 2022.

We expect to reclassify $ 29 million of interest expense out of AOCI and into earnings within the next 12 months.

2 unchanged sentences

These amounts do not include any offsetting gains/(losses) on the related hedged item.

$ in millions Three months ended December 31,

$ in millions Three months ended March 31, Six months ended March 31,

Location of gain/(loss) 2023 2022 2023 2022

12 unchanged sentences

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.

On a daily basis, we monitor our risk exposure on our derivatives based on established sensitivity-based and foreign exchange spot limits.

Derivatives with credit-risk-related contingent features

1 unchanged sentence

If our debt were to fall below investment-grade or we were to default on certain of our outstanding debt, the counterparties to the derivative instruments could terminate the derivative and request immediate payment, or demand immediate and ongoing overnight collateralization on our derivative instruments in liability positions.

The aggregate fair value of all derivative instruments with such credit-risk-related contingent features that were in a liability position was $ 7 million as of December 31, 2022 and $ 8 million as of September 30, 2022.

The aggregate fair value of all derivative instruments with such credit-risk-related contingent features that were in a liability position was $ 7 million as of March 31, 2023 and $ 8 million as of September 30, 2022.

RAYMOND JAMES FINANCIAL, INC.

11 unchanged sentences

$ in millions Reverse repurchase agreements Securities borrowed Total Repurchase agreements Securities loaned Total

December 31, 2022

March 31, 2023

Gross amounts of recognized assets/liabilities $ 167 $ 212 $ 379 $ 150 $ 177 $ 327

16 unchanged sentences

$ in millions Overnight and continuous Up to 30 days 30-90 days Greater than 90 days Total

December 31, 2022

March 31, 2023

Repurchase agreements:

20 unchanged sentences

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 December 31, 2022 September 30, 2022

$ in millions March 31, 2023 September 30, 2022

Collateral we received that was available to be delivered or repledged $ 2,993 $ 3,812

4 unchanged sentences

Encumbered assets

We pledge certain of our assets to collateralize 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.

We pledge certain of our bank loans with the Federal Home Loan Bank (“FHLB”) as security for both the repayment of certain borrowings and to secure capacity for additional borrowings as needed as well as with the Federal Reserve Bank of Atlanta (“FRB”) to be eligible to participate in the Federal Reserve’s discount window program.

We pledge certain of our assets to collateralize repurchase agreements or other secured borrowings, maintain lines of credit, to maintain our ability to hold certain deposits, 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.

We pledge certain of our bank loans and available-for-sale securities with the FHLB as security for both the repayment of certain borrowings and to secure capacity for additional borrowings as needed.

We also pledge certain loans and available-for-sale securities with the FRB to be eligible to participate in the Federal Reserve’s discount window program and to participate in certain deposit programs.

During the quarter ended March 31, 2023, Raymond James Bank increased its borrowing capacity with the FHLB through the pledge of additional available-for-sale securities.

The FHLB does not have the ability to sell or repledge such securities until they are borrowed against.

For additional information regarding our outstanding FHLB advances see Note 14.

The following table presents information about our assets that have been pledged for one of the purposes previously described.

$ in millions December 31, 2022 September 30, 2022

$ in millions March 31, 2023 September 30, 2022

Had the right to deliver or repledge $ 982 $ 1,276

3 unchanged sentences

Total bank loans, net pledged with the FHLB and FRB $ 9,561 $ 8,800

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

NOTE 7 – BANK LOANS, NET

8 unchanged sentences

The following table presents the balances for held for investment loans by portfolio segment and held for sale loans.

$ in millions December 31, 2022 September 30, 2022

$ in millions March 31, 2023 September 30, 2022

SBL $ 14,227 $ 15,297

12 unchanged sentences

Accrued interest receivable on bank loans (included in “Other receivables, net”) $ 192 $ 137

(1) Bank loans, net as of December 31, 2022 and September 30, 2022 are presented net of $ 108 million and $ 112 million, respectively, of net unamortized discount, unearned income, and deferred loan fees and costs.

The net unamortized discount primarily arose from the acquisition date fair value purchased discount on bank loans acquired in the TriState Capital acquisition.

(1) Bank loans, net as of March 31, 2023 and September 30, 2022 are presented net of $ 89 million and $ 112 million, respectively, of net unamortized discount, unearned income, and deferred loan fees and costs.

The net unamortized discount primarily arose from the acquisition date fair value purchase discount on bank loans acquired in the TriState Capital acquisition.

See Note 3 of our 2022 Form 10-K for further information.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

See Note 6 for more information regarding bank loans, net pledged with the FHLB and FRB and Note 14 for more information regarding borrowings from the FHLB.

Held for sale loans

We originated or purchased $ 802 million and $ 968 million of loans held for sale during the three months ended December 31, 2022 and 2021, respectively.

We originated or purchased $ 624 million and $ 1.43 billion of loans held for sale during the three and six months ended March 31, 2023, respectively, and $ 999 million and $ 1.97 billion during the three and six months ended March 31, 2022, respectively.

The majority of these loans were purchases of the guaranteed portions of Small Business Administration (“SBA”) loans that were initially classified as loans held for sale upon purchase and subsequently transferred to trading instruments once they had been securitized into pools.

Proceeds from the sales of all loans held for sale and not securitized amounted to $ 198 million and $ 338 million during the three months ended December 31, 2022 and 2021, respectively.

Net gains resulting from such sales were insignificant for each of the three months ended December 31, 2022 and 2021.

Proceeds from the sales of these loans held for sale and not securitized amounted to $ 155 million and $ 353 million during the three and six months ended March 31, 2023, respectively, and $ 339 million and $ 677 million during the three and six months ended March 31, 2022, respectively.

Net gains resulting from such sales were insignificant for each of the three and six months ended March 31, 2023 and 2022.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

Purchases and sales of loans held for investment

1 unchanged sentence

$ in millions C&I loans CRE loans REIT loans Residential mortgage loans Total

Three months ended December 31, 2022

Three months ended March 31, 2023

Purchases $ 194 $ — $ — $ 110 $ 304

Sales $ 147 $ — $ — $ — $ 147

Three months ended December 31, 2021

Six months ended March 31, 2023

Purchases $ 357 $ 39 $ 24 $ 300 $ 720

Sales $ 147 $ — $ — $ — $ 147

Three months ended March 31, 2022

Purchases $ 441 $ — $ — $ 223 $ 664

Sales $ 61 $ — $ — $ — $ 61

Six months ended March 31, 2022

Purchases $ 780 $ — $ — $ 407 $ 1,187

Sales $ 112 $ — $ — $ — $ 112

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.

3 unchanged sentences

$ 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

December 31, 2022

March 31, 2023

SBL $ — $ — $ — $ — $ — $ 14,227 $ 14,227

13 unchanged sentences

Total loans held for investment $ 4 $ — $ 4 $ 44 $ 30 $ 43,420 $ 43,498

The preceding table includes $ 39 million and $ 63 million at December 31, 2022 and September 30, 2022, respectively, of nonaccrual loans which were current pursuant to their contractual terms.

The table also includes troubled debt restructurings of $ 11 million, $ 8 million, and $ 10 million for C&I loans, CRE loans, and residential first mortgage loans, respectively, at

The preceding table includes $ 90 million and $ 63 million at March 31, 2023 and September 30, 2022, respectively, of nonaccrual loans which were current pursuant to their contractual terms.

The table also includes troubled debt restructurings of $ 20 million, $ 8 million, and $ 10 million for C&I loans, CRE loans, and residential first mortgage loans, respectively, at March 31, 2023, and $ 11 million, $ 9 million, and $ 10 million for C&I loans, CRE loans and residential first mortgage loans, respectively, at September 30, 2022.

Other real estate owned, included in “Other assets” on our Condensed Consolidated Statements of Financial Condition, was insignificant at both March 31, 2023 and September 30, 2022.

RAYMOND JAMES FINANCIAL, INC.

1 unchanged sentence

Notes to Condensed Consolidated Financial Statements (Unaudited)

December 31, 2022, and $ 11 million, $ 9 million, and $ 10 million for C&I loans, CRE loans and residential first mortgage loans, respectively, at September 30, 2022.

Other real estate owned, included in “Other assets” on our Condensed Consolidated Statements of Financial Condition, was insignificant at both December 31, 2022 and September 30, 2022.

Collateral-dependent loans

2 unchanged sentences

Loan type ($ in millions)

Nature of collateral December 31, 2022 September 30, 2022

Nature of collateral March 31, 2023 September 30, 2022

C&I loans Commercial real estate and other business assets $ 9 $ 11

CRE loans Retail, industrial, and health care real estate $ 19 $ 21

CRE loans Retail, industrial, office and health care real estate $ 52 $ 21

Residential mortgage loans Single family homes $ 6 $ 6

The recorded investment in residential mortgage loans secured by one-to-four family residential properties for which formal foreclosure proceedings were in process was $ 5 million at both December 31, 2022 and September 30, 2022.

Credit quality indicators

16 unchanged sentences

Loans classified as special mention, substandard or doubtful are all considered to be “criticized” loans.

December 31, 2022

March 31, 2023

Loans by origination fiscal year

77 unchanged sentences

The following table presents the held for investment residential mortgage loan portfolio by FICO score and by LTV ratio at origination.

December 31, 2022

March 31, 2023

Loans by origination fiscal year

27 unchanged sentences

$ in millions SBL C&I loans CRE loans REIT loans Residential mortgage loans Tax-exempt loans Total

Three months ended December 31, 2022

Three months ended March 31, 2023

Balance at beginning of period

$ 4 $ 222 $ 91 $ 15 $ 74 $ 2 $ 408

Provision for credit losses 1 18 9 — — — 28

Net (charge-offs)/recoveries:

Charge-offs — ( 20 ) — — — — ( 20 )

Recoveries — — — — — — —

Net (charge-offs)/recoveries

— ( 20 ) — — — — ( 20 )

Foreign exchange translation adjustment

— ( 1 ) — — — — ( 1 )

Balance at end of period

$ 5 $ 219 $ 100 $ 15 $ 74 $ 2 $ 415

ACL by loan portfolio segment as a % of total ACL 1.2 % 52.8 % 24.1 % 3.6 % 17.8 % 0.5 % 100.0 %

Six months ended March 31, 2023

Balance at beginning of period

$ 3 $ 226 $ 87 $ 21 $ 57 $ 2 $ 396

Provision/(benefit) for credit losses 2 18 11 ( 6 ) 17 — 42

9 unchanged sentences

ACL by loan portfolio segment as a % of total ACL 1.2 % 52.8 % 24.1 % 3.6 % 17.8 % 0.5 % 100.0 %

Three months ended December 31, 2021

Three months ended March 31, 2022

Balance at beginning of period

10 unchanged sentences

ACL by loan portfolio segment as a % of total ACL 0.9 % 59.5 % 21.6 % 7.6 % 9.8 % 0.6 % 100.0 %

The allowance for credit losses on held for investment bank loans increased $ 12 million during the three months ended December 31, 2022 resulting from a $ 14 million provision for credit losses, primarily due to a weaker macroeconomic outlook, primarily on the residential mortgage portfolio, and the impact of loan growth during the quarter.

The allowance for credit losses on unfunded lending commitments, which is included in “Other payables” on our Condensed Consolidated Statements of Financial Condition, was $ 19 million at both December 31, 2022 and September 30, 2022.

Six months ended March 31, 2022

Balance at beginning of period

$ 4 $ 191 $ 66 $ 22 $ 35 $ 2 $ 320

Provision/(benefit) for credit losses ( 1 ) 7 5 3 ( 4 ) — 10

Net (charge-offs)/recoveries:

Charge-offs — ( 3 ) — — — — ( 3 )

Recoveries — — — — 1 — 1

Net (charge-offs)/recoveries

— ( 3 ) — — 1 — ( 2 )

Foreign exchange translation adjustment

— — — — — — —

Balance at end of period

$ 3 $ 195 $ 71 $ 25 $ 32 $ 2 $ 328

ACL by loan portfolio segment as a % of total ACL 0.9 % 59.5 % 21.6 % 7.6 % 9.8 % 0.6 % 100.0 %

The allowance for credit losses on held for investment bank loans increased $ 7 million and $ 19 million during the three and six months ended March 31, 2023, respectively, resulting from a $ 28 million and $ 42 million provision for credit losses, respectively, partially offset by net charge-offs which were primarily related to two C&I loans.

The provision for credit losses for the three months ended March 31, 2023 primarily reflected the impacts of charge-offs of certain loans during the quarter, loan downgrades in the CRE and C&I loan portfolios, and additional volatility in the macroeconomic outlook.

The provision for credit losses for the six months ended March 31, 2023 was primarily due to a weaker macroeconomic outlook, net charge-offs, and the impact of loan growth during the period.

RAYMOND JAMES FINANCIAL, INC.

1 unchanged sentence

Notes to Condensed Consolidated Financial Statements (Unaudited)

The allowance for credit losses on unfunded lending commitments, which is included in “Other payables” on our Condensed Consolidated Statements of Financial Condition, was $ 21 million at March 31, 2023 and $ 19 million at both December 31, 2022 and September 30, 2022.

NOTE 8 – LOANS TO FINANCIAL ADVISORS, NET

2 unchanged sentences

The following table presents the balances for our loans to financial advisors and the related accrued interest receivable.

$ in millions December 31, 2022 September 30, 2022

$ in millions March 31, 2023 September 30, 2022

Affiliated with the firm as of period-end (1)

18 unchanged sentences

$ in millions Aggregate assets Aggregate liabilities

December 31, 2022

March 31, 2023

Restricted Stock Trust Fund

8 unchanged sentences

Intercompany balances are eliminated in consolidation and are not reflected in the following table.

$ in millions December 31, 2022 September 30, 2022

$ in millions March 31, 2023 September 30, 2022

Cash and cash equivalents and assets segregated for regulatory purposes and restricted cash $ 5 $ 5

6 unchanged sentences

As discussed in Note 2 of our 2022 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 LIHTC funds, certain Private Equity Interests, and other limited partnerships.

Such VIEs include certain LIHTC funds, our interests in certain limited partnerships which are part of our private equity portfolio (“Private Equity Interests”), 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.

1 unchanged sentence

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.

December 31, 2022 September 30, 2022

March 31, 2023 September 30, 2022

$ in millions Aggregate

8 unchanged sentences

Total $ 10,944 $ 3,382 $ 175 $ 10,088 $ 3,133 $ 234

NOTE 10 - GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS, NET

Our goodwill and identifiable intangible assets result from various acquisitions.

See Notes 2 and 11 of our 2022 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 assets as of our January 1, 2023 evaluation date, evaluating balances as of December 31, 2022.

In that testing, we performed a qualitative impairment assessment for each of our reporting units that had goodwill, as well as for our indefinite-lived intangible assets.

Our qualitative assessments consider macroeconomic indicators and industry and market considerations, such as trends in equity and fixed income markets, gross domestic product, labor markets, interest rates, and housing markets.

We also consider regulatory changes, as well as company-specific factors such as 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 our qualitative assessments, no impairment was identified.

No events have occurred since such assessments that would cause us to update this impairment testing.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

NOTE 11 - OTHER ASSETS

1 unchanged sentence

See Note 2 of our 2022 Form 10-K for a discussion of the accounting polices related to certain of these components.

$ in millions December 31, 2022 September 30, 2022

$ in millions March 31, 2023 September 30, 2022

Investments in company-owned life insurance policies $ 1,077 $ 944

6 unchanged sentences

See Note 13 of our 2022 Form 10-K for further information regarding our property and equipment and Note 12 of this Form 10-Q and Note 14 of our 2022 Form 10-K for further information regarding our leases.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

NOTE 12 – LEASES

1 unchanged sentence

See Notes 2 and 14 of our 2022 Form 10-K for additional information related to our leases, including a discussion of our accounting policies.

$ in millions December 31, 2022 September 30, 2022

$ in millions March 31, 2023 September 30, 2022

ROU assets (included in Other assets) $ 476 $ 480

Lease liabilities (included in Other payables) $ 478 $ 482

Lease liabilities as of December 31, 2022 excluded $ 63 million of minimum lease payments related to lease arrangements that were legally binding but had not yet commenced.

These leases are estimated to commence between dates later in fiscal year 2023 and fiscal year 2025 with lease terms ranging from three to 13 years.

Lease liabilities as of March 31, 2023 excluded $ 53 million of minimum lease payments related to lease arrangements that were legally binding but had not yet commenced.

These leases are estimated to commence between dates later in fiscal year 2023 and fiscal year 2025 with lease terms ranging from two to 13 years.

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.

Three months ended December 31,

Three months ended March 31, Six months ended March 31,

$ in millions 2023 2022 2023 2022

2 unchanged sentences

Variable lease costs in the preceding table include payments required under lease arrangements for common area maintenance charges and other variable costs that are not reflected in the measurement of ROU assets and lease liabilities.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

NOTE 13 – BANK DEPOSITS

Bank deposits include money market and savings accounts, interest-bearing checking accounts, which include Negotiable Order of Withdrawal accounts, certificates of deposit, and non-interest-bearing checking accounts.

Bank deposits include money market and savings accounts, interest-bearing demand deposits, which include Negotiable Order of Withdrawal accounts, certificates of deposit, and non-interest-bearing 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 was based on the actual deposit balances and rates at each respective period end.

December 31, 2022 September 30, 2022

March 31, 2023 September 30, 2022

$ in millions Balance Weighted-average rate Balance Weighted-average rate

Money market and savings accounts $ 43,136 1.24 % $ 44,446 1.01 %

Interest-bearing checking accounts 5,309 4.10 % 5,286 2.77 %

Interest-bearing demand deposits 7,809 4.45 % 5,286 2.77 %

Certificates of deposit 2,656 4.15 % 999 1.85 %

Non-interest-bearing checking accounts 488 — 626 —

Non-interest-bearing demand deposits 628 — 626 —

Total bank deposits $ 54,229 1.86 % $ 51,357 1.21 %

At December 31, 2022 and September 30, 2022, money market and savings accounts in the preceding table included $ 39.10 billion and $ 38.71 billion, respectively, of deposits that are cash balances swept to our Bank segment from the client investment accounts maintained at Raymond James & Associates, Inc.

(“RJ&A”), which are held in Federal Deposit Insurance Corporation (“FDIC”)-insured bank accounts through the Raymond James Bank Deposit Program (“RJBDP”).

As of December 31, 2022 and September 30, 2022, money market and savings accounts also included direct accounts held by TriState Capital Bank on behalf of third-party clients.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

As of December 31, 2022 and September 30, 2022, the estimated amount of total bank deposits that exceeded the FDIC insurance limit was $ 8.18 billion and $ 7.84 billion, respectively.

The following table sets forth the estimated amount of certificates of deposit that exceeded the FDIC insurance limit by time remaining until maturity as of December 31, 2022.

$ in millions December 31, 2022

Money market and savings accounts in the preceding table included $ 37.68 billion and $ 38.71 billion as of March 31, 2023 and September 30, 2022, respectively, of cash balances which were swept to our Bank segment from the client investment accounts maintained at Raymond James & Associates, Inc.

Such deposits are held in Federal Deposit Insurance Corporation (“FDIC”)-insured bank accounts through the Raymond James Bank Deposit Program (“RJBDP”).

Money market and savings accounts also included direct accounts held by TriState Capital Bank on behalf of third-party clients.

Interest-bearing demand deposits in the preceding table included $ 2.75 billion of deposits as of March 31, 2023 associated with our Enhanced Savings Program, in which Private Client Group clients may deposit cash in a high-yield Raymond James Bank account.

The following table details the estimated amount of total bank deposits that are FDIC-insured, as well as the estimated amount of total bank deposits that exceeded the FDIC insurance limit at each respective period.

$ in millions March 31, 2023 September 30, 2022

FDIC-insured bank deposits $ 47,475 $ 43,520

Bank deposits exceeding FDIC insurance limit 6,754 7,837

Total bank deposits $ 54,229 $ 51,357

FDIC-insured bank deposits as a % of total bank deposits 88 % 85 %

The following table sets forth the estimated amount of certificates of deposit that exceeded the FDIC insurance limit by time remaining until maturity as of March 31, 2023.

$ in millions March 31, 2023

Three months or less

4 unchanged sentences

Interest expense on deposits, excluding interest expense related to affiliated deposits, is summarized in the following table.

Three months ended December 31,

Three months ended March 31, Six months ended March 31,

$ in millions 2023 2022 2023 2022

Money market and savings accounts $ 128 $ 1 $ 245 $ 2

Interest-bearing checking accounts 47 1

Interest-bearing demand deposits 62 1 109 2

Certificates of deposit 16 3 24 7

Total interest expense on deposits $ 206 $ 5 $ 378 $ 11

We use an interest rate swap to manage the risk of increases in interest rates associated with certain bank deposits by converting the balances subject to variable interest rates to a fixed interest rate.

We use an interest rate swap to manage the risk of increases in interest rates associated with certain money market and savings accounts by converting the balances subject to variable interest rates to a fixed interest rate.

Refer to Note 5 of this Form 10-Q for information regarding this interest rate swap, which has been designated and accounted for as a cash flow hedge.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

NOTE 14 – OTHER BORROWINGS

The following table details the components of our other borrowings, which are primarily comprised of short-term and long-term FHLB advances and subordinated notes.

December 31, 2022 September 30, 2022

March 31, 2023 September 30, 2022

$ in millions Weighted average interest rate Maturity date Balance Weighted average interest rate Maturity date Balance

1 unchanged sentence

Floating rate - term (1)

4.58 % December 2023 $ 200 3.32 % December 2023 $ 850

Floating rate - term (1)

4.60 % June 2024 650 N/A N/A —

5.09 % December 2023 - June 2024 $ 850 3.32 % December 2023 $ 850

Floating rate - overnight (1)

N/A Overnight — 3.11 % Overnight 140

Fixed rate 4.82 % March 2023 200 3.45 % December 2022 200

Fixed rate 5.13 % April 2023 - June 2023 700 3.45 % December 2022 200

Total FHLB advances 1,550 1,190

5 unchanged sentences

We may redeem these subordinated notes beginning in August 2025 at a redemption price equal to 100 % of the principal amount of the notes to be redeemed plus accrued and unpaid interest thereon to the redemption date.

We use interest rate swaps to manage the risk of increases in interest rates associated with our floating-rate FHLB advances by converting the balances subject to variable interest rates to a fixed interest rate.

We use interest rate swaps to manage the risk of increases in interest rates associated with the majority our floating-rate FHLB advances by converting the balances subject to variable interest rates to a fixed interest rate.

Refer to Note 2 of our 2022 Form 10-K and Note 5 of this Form 10-Q for information regarding these interest rate swaps, which have been designated and accounted for as cash flow hedges.

Refer to Note 6 for more information regarding bank loans, net pledged with the FHLB as security for our FHLB borrowings.

Refer to Note 6 for more information regarding bank loans, net and available-for-sale securities pledged with the FHLB as security for our FHLB borrowings.

For further information on our other borrowing arrangements refer to Note 16 of our 2022 Form 10-K.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

NOTE 15 – INCOME TAXES

5 unchanged sentences

Effective tax rate

Our effective income tax rate of 21.9 % for the three months ended December 31, 2022 was lower than the 25.4 % effective tax rate for our fiscal year 2022.

The decrease in the effective income tax rate was primarily due to non-taxable valuation gains associated with our company-owned life insurance policies that were recognized during the current period compared to fiscal year 2022 which had non-deductible losses.

Our effective income tax rate of 22.6 % for the six months ended March 31, 2023 was lower than the 25.4 % effective tax rate for our fiscal year 2022.

The decrease in the effective income tax rate was primarily due to nontaxable valuation gains associated with our company-owned life insurance policies that were recognized during the current period compared to fiscal year 2022 which had nondeductible losses.

Uncertain tax positions

Although management cannot predict with any degree of certainty the timing of ultimate resolution of matters under review by various taxing jurisdictions, it is reasonably possible that our uncertain tax position liability balance may decrease within the next 12 months by up to $ 10 million as a result of the expiration of statutes of limitations and the completion of tax authorities’ examinations.

Although management cannot predict with any degree of certainty the timing of ultimate resolution of matters under review by various taxing jurisdictions, it is reasonably possible that our uncertain tax position liability balance may decrease within the next 12 months by up to $ 10 million due to expirations of statutes of limitations and the completion of tax examinations.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

NOTE 16 – COMMITMENTS, CONTINGENCIES AND GUARANTEES

2 unchanged sentences

In the normal course of business, we enter into commitments for debt and equity underwritings.

As of December 31, 2022, we had one such open underwriting commitment, which was subsequently settled in an open market transaction and did not result in a significant loss.

As of March 31, 2023, we had one such open underwriting commitment, which was subsequently settled in an open market transaction and did not result in a significant loss.

Lending commitments and other credit-related financial instruments

3 unchanged sentences

The following table presents our commitments to extend credit and other credit-related off-balance sheet financial instruments outstanding at our Bank segment.

$ in millions December 31, 2022 September 30, 2022

$ in millions March 31, 2023 September 30, 2022

SBL and other consumer lines of credit $ 36,998 $ 33,641

7 unchanged sentences

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.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

Because many of our 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.

7 unchanged sentences

Investment commitments

We had unfunded commitments to various investments, primarily held by Raymond James Bank and TriState Capital Bank, of $ 48 million as of December 31, 2022.

We had unfunded commitments to various investments, primarily held by Raymond James Bank and TriState Capital Bank, of $ 63 million as of March 31, 2023.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

Other commitments

3 unchanged sentences

Until such investments are sold to LIHTC funds, RJAHI is responsible for funding investment commitments to such partnerships.

As of December 31, 2022, RJAHI had committed approximately $ 254 million to project partnerships that had not yet been sold to LIHTC funds.

As of March 31, 2023, RJAHI had committed approximately $ 149 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.

15 unchanged sentences

The SEC is reportedly conducting similar investigations of record preservation practices at other financial institutions.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

We may contest liability and/or the amount of damages, as appropriate, in each pending matter.

14 unchanged sentences

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.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

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 December 31, 2022, we estimated the upper end of the range of reasonably possible aggregate loss to be approximately $ 100 million in excess of the aggregate accruals for such matters.

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, 2023, we estimated the upper end of the range of reasonably possible aggregate loss to be approximately $ 100 million in excess of the aggregate accruals for such matters.

Refer to Note 2 of our 2022 Form 10-K for a discussion of our criteria for recognizing liabilities for contingencies.

3 unchanged sentences

For further details regarding our preferred stock see Note 20 of our 2022 Form 10-K.

$ in millions, except share count December 31, 2022 September 30, 2022

$ in millions, except share count March 31, 2023 September 30, 2022

6.75 % Fixed-to-Floating Rate Series A Non-Cumulative Perpetual Preferred Stock (“Series A Preferred Stock”):

6 unchanged sentences

Aggregate liquidation preference $ 81 $ 81

The following table details dividends declared and dividends paid on our Series A and Series B preferred stock for the three months ended December 31, 2022.

On April 3, 2023, we redeemed all 40,250 outstanding shares of our Series A Preferred Stock, which triggered the redemption of the related depositary shares (“Series A Depositary Shares”), each representing a 1/40th interest of a share of Series A Preferred Stock, for an aggregate redemption value of $ 40 million.

The redemption of the Series A Preferred Stock will be reflected in our condensed consolidated financial statements in our fiscal third quarter of 2023.

The following table details dividends declared and dividends paid on our Series A and Series B preferred stock for the three and six months ended March 31, 2023.

Three months ended March 31, 2023 Six months ended March 31, 2023

$ in millions, except per share amounts Total dividends Per preferred

share amount Total dividends Per preferred

Dividends declared:

18 unchanged sentences

Our share repurchases are effected primarily through regular open-market purchases, typically under a SEC Rule 10b-18 plan, the amounts and timing of which are determined primarily by our current and projected capital position, applicable law and regulatory constraints, general market conditions, and the price and trading volumes of our common stock.

During the three months ended December 31, 2022, we repurchased 1.29 million shares of our common stock for $ 138 million at an average price of $ 106 per share under the Board of Directors’ common stock repurchase authorization.

As of December 31, 2022, approximately $ 1.4 billion remained available under such authorization.

During the three months ended March 31, 2023, we repurchased 3.75 million shares of our common stock for $ 350 million at an average price of $ 93 per share under the Board of Directors’ common stock repurchase authorization.

During the six months ended March 31, 2023, we repurchased 5.04 million shares of our common stock for $ 488 million at an average price of $ 97 per share under the Board of Directors’ common stock repurchase authorization.

As of March 31, 2023, approximately $ 1.1 billion remained available under such authorization.

Common stock dividends

Dividends per common share declared and paid are detailed in the following table for each respective period.

Three months ended December 31,

Three months ended March 31, Six months ended March 31,

2023 2022 2023 2022

Dividends per common share - declared $ 0.42 $ 0.34 $ 0.84 $ 0.68

1 unchanged sentence

Our dividend payout ratio is detailed in the following table for each respective period and is computed by dividing dividends declared per common share by earnings per diluted common share.

Three months ended December 31,

Three months ended March 31, Six months ended March 31, 2023

2023 2022 2023 2022

Dividend payout ratio

12 unchanged sentences

net investment hedges and currency translations Available- for-sale securities Cash flow hedges Total

Three months ended December 31, 2022

Three months ended March 31, 2023

AOCI as of beginning of period $ 139 $ ( 216 ) $ ( 77 ) $ ( 855 ) $ 41 $ ( 891 )

5 unchanged sentences

AOCI as of end of period $ 136 $ ( 206 ) $ ( 70 ) $ ( 758 ) $ 30 $ ( 798 )

Three months ended December 31, 2021

Six months ended March 31, 2023

AOCI as of beginning of period $ 153 $ ( 276 ) $ ( 123 ) $ ( 902 ) $ 43 $ ( 982 )

5 unchanged sentences

AOCI as of end of period $ 136 $ ( 206 ) $ ( 70 ) $ ( 758 ) $ 30 $ ( 798 )

Reclassifications from AOCI to net income, excluding taxes, for the three months ended December 31, 2022 and 2021 were recorded in “Interest expense” on the Condensed Consolidated Statements of Income and Comprehensive Income.

Three months ended March 31, 2022

AOCI as of beginning of period $ 80 $ ( 89 ) $ ( 9 ) $ ( 60 ) $ ( 18 ) $ ( 87 )

OCI before reclassifications and taxes ( 12 ) ( 2 ) ( 14 ) ( 433 ) 35 ( 412 )

Amounts reclassified from AOCI, before tax — — — — 4 4

Pre-tax net OCI ( 12 ) ( 2 ) ( 14 ) ( 433 ) 39 ( 408 )

Income tax effect 3 — 3 113 ( 10 ) 106

OCI for the period, net of tax ( 9 ) ( 2 ) ( 11 ) ( 320 ) 29 ( 302 )

AOCI as of end of period $ 71 $ ( 91 ) $ ( 20 ) $ ( 380 ) $ 11 $ ( 389 )

Six months ended March 31, 2022

AOCI as of beginning of period $ 81 $ ( 90 ) $ ( 9 ) $ ( 5 ) $ ( 27 ) $ ( 41 )

OCI before reclassifications and taxes ( 14 ) ( 1 ) ( 15 ) ( 505 ) 43 ( 477 )

Amounts reclassified from AOCI, before tax — — — — 8 8

Pre-tax net OCI ( 14 ) ( 1 ) ( 15 ) ( 505 ) 51 ( 469 )

Income tax effect 4 — 4 130 ( 13 ) 121

OCI for the period, net of tax ( 10 ) ( 1 ) ( 11 ) ( 375 ) 38 ( 348 )

AOCI as of end of period $ 71 $ ( 91 ) $ ( 20 ) $ ( 380 ) $ 11 $ ( 389 )

Reclassifications from AOCI to net income, excluding taxes, for the three and six months ended March 31, 2023 and 2022 were recorded in “Interest expense” on the Condensed Consolidated Statements of Income and Comprehensive Income.

Our net investment hedges and cash flow hedges relate to derivatives associated with our Bank segment.

7 unchanged sentences

For further information about our significant accounting policies related to revenue recognition see Note 2 of our 2022 Form 10-K.

See and Note 22 of this Form 10-Q for additional information on our segment results.

Three Months Ended December 31, 2022

See Note 26 of our 2022 Form 10-K and Note 23 of this Form 10-Q for additional information on our segment results.

Three months ended March 31, 2023

$ in millions Private Client Group Capital Markets Asset Management Bank Other and intersegment eliminations Total

33 unchanged sentences

Notes to Condensed Consolidated Financial Statements (Unaudited)

Three Months Ended December 31, 2021

Three months ended March 31, 2022

$ in millions Private Client Group Capital Markets Asset Management Bank Other and intersegment eliminations Total

21 unchanged sentences

All other (1)

6 1 — 8 ( 3 ) 12

Total other 6 16 — 8 ( 3 ) 27

6 unchanged sentences

(1) These revenues are generally not in scope of the accounting guidance for revenue from contracts with customers.

At December 31, 2022 and September 30, 2022, net receivables related to contracts with customers were $ 432 million and $ 511 million, respectively.

RAYMOND JAMES FINANCIAL, INC.

1 unchanged sentence

Notes to Condensed Consolidated Financial Statements (Unaudited)

Six months ended March 31, 2023

$ in millions Private Client Group Capital Markets Asset Management Bank Other and intersegment eliminations Total

Asset management and related administrative fees $ 2,155 $ 1 $ 403 $ — $ ( 15 ) $ 2,544

Brokerage revenues:

Securities commissions:

Mutual and other fund products 263 3 2 — ( 1 ) 267

Insurance and annuity products 217 — — — — 217

Equities, ETFs and fixed income products 173 65 — — ( 1 ) 237

Subtotal securities commissions 653 68 2 — ( 2 ) 721

Principal transactions (1)

56 196 — 8 ( 1 ) 259

Total brokerage revenues 709 264 2 8 ( 3 ) 980

Account and service fees:

Mutual fund and annuity service fees 203 — 1 — ( 1 ) 203

RJBDP fees 816 2 — — ( 581 ) 237

Client account and other fees 116 3 10 — ( 22 ) 107

Total account and service fees 1,135 5 11 — ( 604 ) 547

Investment banking:

Merger & acquisition and advisory — 189 — — — 189

Equity underwriting 18 44 — — ( 1 ) 61

Debt underwriting — 45 — — — 45

Total investment banking 18 278 — — ( 1 ) 295

Affordable housing investments business revenues — 47 — — — 47

All other (1)

15 1 2 19 ( 8 ) 29

Total other 15 48 2 19 ( 8 ) 76

Total non-interest revenues 4,032 596 418 27 ( 631 ) 4,442

Interest income (1)

226 44 5 1,425 42 1,742

Total revenues 4,258 640 423 1,452 ( 589 ) 6,184

Interest expense ( 51 ) ( 43 ) — ( 404 ) ( 27 ) ( 525 )

Net revenues $ 4,207 $ 597 $ 423 $ 1,048 $ ( 616 ) $ 5,659

(1) These revenues are generally not in scope of the accounting guidance for revenue from contracts with customers.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

Six months ended March 31, 2022

$ in millions Private Client Group Capital Markets Asset Management Bank Other and intersegment eliminations Total

Asset management and related administrative fees $ 2,407 $ 2 $ 453 $ — $ ( 16 ) $ 2,846

Brokerage revenues:

Securities commissions:

Mutual and other fund products 337 4 4 — ( 1 ) 344

Insurance and annuity products 221 — — — — 221

Equities, ETFs and fixed income products 209 73 — — — 282

Subtotal securities commissions 767 77 4 — ( 1 ) 847

Principal transactions (1)

27 248 — — — 275

Total brokerage revenues 794 325 4 — ( 1 ) 1,122

Account and service fees:

Mutual fund and annuity service fees 223 — — — ( 1 ) 222

RJBDP fees 136 — — — ( 99 ) 37

Client account and other fees 102 4 12 — ( 21 ) 97

Total account and service fees 461 4 12 — ( 121 ) 356

Investment banking:

Merger & acquisition and advisory — 410 — — — 410

Equity underwriting 22 149 — — — 171

Debt underwriting — 79 — — — 79

Total investment banking 22 638 — — — 660

Affordable housing investments business revenues — 50 — — — 50

All other (1)

13 3 1 14 ( 3 ) 28

Total other 13 53 1 14 ( 3 ) 78

Total non-interest revenues 3,697 1,022 470 14 ( 141 ) 5,062

Interest income (1)

70 10 — 386 1 467

Total revenues 3,767 1,032 470 400 ( 140 ) 5,529

Interest expense ( 6 ) ( 5 ) — ( 20 ) ( 44 ) ( 75 )

Net revenues $ 3,761 $ 1,027 $ 470 $ 380 $ ( 184 ) $ 5,454

(1) These revenues are generally not in scope of the accounting guidance for revenue from contracts with customers.

At March 31, 2023 and September 30, 2022, net receivables related to contracts with customers were $ 540 million and $ 511 million, respectively.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

NOTE 19 – INTEREST INCOME AND INTEREST EXPENSE

The following table details the components of interest income and interest expense.

Three months ended December 31,

Three months ended March 31, Six months ended March 31,

$ in millions 2023 2022 2023 2022

8 unchanged sentences

Total interest income

$ 915 $ 242 $ 1,742 $ 467

Interest expense:

Bank deposits

$ 206 $ 5 378 $ 11

Trading liabilities — debt securities 7 1 17 2

4 unchanged sentences

Total interest expense

$ 284 $ 38 $ 525 $ 75

Net interest income $ 631 $ 204 $ 1,217 $ 392

Bank loan (provision)/benefit for credit losses ( 14 ) 11

Net interest income after bank loan (provision)/benefit for credit losses $ 572 $ 199

Bank loan provision for credit losses ( 28 ) ( 21 ) ( 42 ) ( 10 )

Net interest income after bank loan provision for credit losses $ 603 $ 183 $ 1,175 $ 382

Interest expense related to bank deposits in the preceding table excludes interest expense associated with affiliate deposits, which has been eliminated in consolidation.

NOTE 20 – SHARE-BASED COMPENSATION

We have one share-based compensation plan, The Amended and Restated 2012 Stock Incentive Plan (“the Plan”), for our employees, Board of Directors, and independent contractor financial advisors.

Generally, we reissue our treasury shares under the Plan;

however, we are also permitted to issue new shares.

Our share-based compensation awards are primarily issued during the fiscal first quarter of each year.

We have one share-based compensation plan, the Amended and Restated 2012 Stock Incentive Plan (“the Plan”), for our employees, directors, and independent contractor financial advisors.

On February 23, 2023, our shareholders approved an amendment to the Plan to increase the number of shares available for grant by 18 million.

Following this amendment, the Plan authorizes us to grant 96.4 million shares (including the shares available for grant under six predecessor plans).

As of March 31, 2023, 21.0 million shares remained available for grant under the Plan.

We may utilize treasury shares for grants under the Plan;

though we are also permitted to issue new shares.

Our share-based compensation awards are primarily issued during the first quarter of each fiscal year.

Our share-based compensation accounting policies are described in Note 2 of our 2022 Form 10-K.

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Restricted stock units

During the three months ended December 31, 2022, we granted approximately 1.9 million RSUs with a weighted-average grant-date fair value of $ 117.66 , compared with approximately 2.3 million RSUs granted during the three months ended December 31, 2021, with a weighted-average grant-date fair value of $ 96.99 .

For the three months ended December 31, 2022, total share-based compensation amortization related to RSUs was $ 76 million, compared with $ 63 million for the three months ended December 31, 2021.

As of December 31, 2022, there were $ 462 million of total pre-tax compensation costs not yet recognized (net of estimated forfeitures) related to RSUs, including those granted during the three months ended December 31, 2022.

These costs are expected to be recognized over a weighted-average period of three years .

During the three and six months ended March 31, 2023, we granted approximately 203 thousand and 2.1 million RSUs, respectively, with a weighted-average grant-date fair value of $ 108.39 and $ 116.75 , respectively, compared with approximately 550 thousand and 2.9 million RSUs granted during the three and six months ended March 31, 2022, respectively, with a weighted-average grant-date fair value of $ 107.06 and $ 98.86 , respectively.

For the three and six months ended March 31, 2023, total share-based compensation amortization related to RSUs was $ 54 million and $ 130 million, respectively, compared with $ 41 million and $ 105 million for the three and six months ended March 31, 2022, respectively.

As of March 31, 2023, there were $ 430 million of total pre-tax compensation costs not yet recognized (net of estimated forfeitures) related to RSUs, including those granted during the six months ended March 31, 2023.

These costs are expected to be recognized over a weighted-average period of 2.8 years.

RAYMOND JAMES FINANCIAL, INC.

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See Note 23 of our 2022 Form 10-K for further discussion of these awards.

For the three months ended December 31, 2022 total share-based compensation amortization related to RSAs was $ 3 million.

As of December 31, 2022, there were $ 18 million of total pre-tax compensation costs not yet recognized for these RSAs.

For the three and six months ended March 31, 2023 total share-based compensation amortization related to these RSAs was $ 2 million and $ 5 million, respectively.

As of March 31, 2023, there were $ 16 million of total pre-tax compensation costs not yet recognized for these RSAs.

These costs are expected to be recognized over a weighted-average period of 2.5 years.

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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 December 31, 2022, capital levels at RJF, Raymond James Bank, and TriState Capital Bank exceeded the capital conservation buffer requirement and each entity was categorized as “well-capitalized.”

As of March 31, 2023, capital levels at RJF, Raymond James Bank, and TriState Capital Bank exceeded the capital conservation buffer requirement and each entity was categorized as “well-capitalized.”

For further discussion of regulatory capital requirements applicable to certain of our businesses and subsidiaries, see Note 24 of our 2022 Form 10-K.

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$ in millions Amount Ratio Amount Ratio Amount Ratio

RJF as of December 31, 2022:

RJF as of March 31, 2023:

Tier 1 leverage $ 8,903 11.5 % $ 3,104 4.0 % $ 3,879 5.0 %

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Total capital $ 9,031 20.4 % $ 3,534 8.0 % $ 4,418 10.0 %

As of December 31, 2022, RJF’s regulatory capital increase compared with September 30, 2022 was driven by positive earnings, net of share repurchases and dividends paid during our fiscal first quarter of 2023.

RJF’s Tier 1 and Total capital ratios increased compared with September 30, 2022 resulting from the increase in regulatory capital, as well as a decrease in risk-weighted assets.

The decrease in risk-weighted assets was primarily driven by a decrease in our assets segregated for regulatory purposes and restricted cash, as well as a decrease in receivables, partially offset by an increase in our bank loan portfolio.

RJF’s Tier 1 leverage ratio at December 31, 2022 increased compared with September 30, 2022 due to the increase in regulatory capital, as well as lower average assets primarily driven by a decrease in assets segregated for regulatory purposes, partially offset by an increase in our bank loan portfolio.

As of March 31, 2023, RJF’s regulatory capital increase compared with September 30, 2022 was driven by an increase in equity due to positive earnings, partially offset by dividends and share repurchases.

RJF’s Tier 1 and Total capital ratios increased compared with September 30, 2022 resulting from the increase in regulatory capital, partially offset by a small increase in risk-weighted assets.

The increase in risk-weighted assets was primarily driven by increases in our bank loan portfolio, partially offset by a decrease in assets segregated for regulatory purposes.

RJF’s Tier 1 leverage ratio at March 31, 2023 increased compared with September 30, 2022 due to the increase in regulatory capital and lower average assets, primarily driven by a decrease in assets segregated for regulatory purposes.

To meet the requirements for capital adequacy or to be categorized as “well-capitalized,” Raymond James Bank and TriState Capital Bank must maintain Tier 1 leverage, Tier 1 capital, CET1, and Total capital amounts and ratios as set forth in the following tables.

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$ in millions Amount Ratio Amount Ratio Amount Ratio

Raymond James Bank as of December 31, 2022:

Raymond James Bank as of March 31, 2023:

Tier 1 leverage $ 3,303 7.7 % $ 1,725 4.0 % $ 2,156 5.0 %

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Total capital $ 3,308 13.4 % $ 1,979 8.0 % $ 2,474 10.0 %

Raymond James Bank’s regulatory capital increased compared with September 30, 2022, driven by positive earnings, partially offset by dividends paid to RJF.

Raymond James Bank’s Tier 1 and Total capital ratios increased compared with September 30, 2022 resulting from the increase in regulatory capital, partially offset by an increase in risk-weighted assets due to growth in the bank loan portfolio and higher cash balances.

Raymond James Bank’s Tier 1 leverage ratio at March 31, 2023 increased compared with September 30, 2022 due to the increase in regulatory capital, partially offset by an increase in average assets, primarily driven by an increase in the bank loan portfolio and higher cash balances.

RAYMOND JAMES FINANCIAL, INC.

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Notes to Condensed Consolidated Financial Statements (Unaudited)

Raymond James Bank’s regulatory capital increased compared with September 30, 2022, driven by positive earnings, partially offset by dividends paid to RJF.

Raymond James Bank’s Tier 1 leverage ratio at December 31, 2022 increased compared with September 30, 2022 due to the increase in regulatory capital, partially offset by an increase in average assets, primarily driven by an increase in the bank loan portfolio.

Actual Requirement for capital

2 unchanged sentences

$ in millions Amount Ratio Amount Ratio Amount Ratio

TriState Capital Bank as of December 31, 2022:

TriState Capital Bank as of March 31, 2023:

Tier 1 leverage $ 1,159 7.2 % $ 646 4.0 % $ 808 5.0 %

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TriState Capital Bank’s Tier 1 and Total capital ratios decreased compared with September 30, 2022, due to an increase in risk-weighted assets, primarily resulting from increases in bank loans and available-for-sale securities, partially offset by the increase in regulatory capital.

TriState Capital Bank’s Tier 1 leverage ratio at December 31, 2022 was flat compared with September 30, 2022 as the increase in regulatory capital was offset by an increase in average assets, primarily driven by the increases in bank loans and available-for-sale securities.

TriState Capital Bank’s Tier 1 leverage ratio at March 31, 2023 decreased slightly compared with September 30, 2022 as the increase in regulatory capital was offset by an increase in average assets, primarily driven by the increases in bank loans and available-for-sale securities.

Our banking subsidiaries may pay dividends to RJF without prior approval of their respective regulators subject to certain restrictions including retained net income and targeted regulatory capital ratios.

2 unchanged sentences

The following table presents the net capital position of RJ&A.

$ in millions December 31, 2022 September 30, 2022

$ in millions March 31, 2023 September 30, 2022

Raymond James & Associates, Inc.

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$ 1,037 $ 1,096

As of December 31, 2022, all of our other active regulated domestic and international subsidiaries were in compliance with and exceeded all applicable capital requirements.

As of March 31, 2023, all of our other active regulated domestic and international subsidiaries were in compliance with and exceeded all applicable capital requirements.

RAYMOND JAMES FINANCIAL, INC.

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The following table presents the computation of basic and diluted earnings per common share.

Three months ended December 31,

Three months ended March 31, Six months ended March 31,

in millions, except per share amounts 2023 2022 2023 2022

2 unchanged sentences

Less allocation of earnings and dividends to participating securities

( 2 ) — ( 3 ) ( 1 )

Net income available to common shareholders after participating securities $ 423 $ 323 $ 929 $ 768

2 unchanged sentences

Less allocation of earnings and dividends to participating securities

( 2 ) — ( 3 ) ( 1 )

Net income available to common shareholders after participating securities $ 423 $ 323 $ 929 $ 768

1 unchanged sentence

Average common shares in basic computation

214.3 207.7 214.5 207.0

Dilutive effect of outstanding stock options and certain RSUs

4.9 5.3 5.2 5.6

Average common and common equivalent shares used in diluted computation 219.2 213.0 219.7 212.6

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Stock options and certain RSUs excluded from weighted-average diluted common shares because their effect would be antidilutive

1.6 — 1.3 0.5

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, as well as the RSAs granted as part of our acquisition of TriState Capital, plus an allocation of undistributed earnings to such participating securities.

Participating securities and related dividends paid on these participating securities were insignificant for each of the three months ended December 31, 2022 and 2021.

Participating securities and related dividends paid on these participating securities were insignificant for each of the three and six months ended March 31, 2023 and 2022.

Undistributed earnings are allocated to participating securities based upon their right to share in earnings if all earnings for the period had been distributed.

9 unchanged sentences

The following table presents information concerning operations in these segments.

Three months ended December 31,

Three months ended March 31, Six months ended March 31,

$ in millions 2023 2022 2023 2022

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Capital Markets

302 413 597 1,027

Asset Management

216 234 423 470

Bank 540 197 1,048 380

10 ( 18 ) 19 ( 33 )

Intersegment eliminations

4 unchanged sentences

Capital Markets

( 34 ) 87 ( 50 ) 288

Asset Management

82 103 162 210

Bank 91 83 227 185

( 23 ) ( 53 ) ( 5 ) ( 100 )

Total pre-tax income $ 557 $ 433 $ 1,209 $ 991

(1) The three months ended December 31, 2022 included the favorable impact of a $ 32 million insurance settlement received during the quarter related to a previously settled litigation matter.

(1) The six months ended March 31, 2023 included the favorable impact of a $ 32 million insurance settlement received during the period related to a previously settled litigation matter.

This item has been reflected as an offset to “Other” expenses on our Condensed Consolidated Statements of Income and Comprehensive income.

1 unchanged sentence

The following table presents our net interest income on a segment basis.

Three months ended December 31,

Three months ended March 31, Six months ended March 31,

$ in millions 2023 2022 2023 2022

1 unchanged sentence

Private Client Group

$ 88 $ 34 $ 175 $ 64

Capital Markets

Asset Management

Bank 530 189 1,021 366

Other 9 ( 21 ) 15 ( 43 )

1 unchanged sentence

The following table presents our total assets on a segment basis.

$ in millions December 31, 2022 September 30, 2022

$ in millions March 31, 2023 September 30, 2022

Total assets:

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The following table presents goodwill, which was included in our total assets, on a segment basis.

$ in millions December 31, 2022 September 30, 2022

$ in millions March 31, 2023 September 30, 2022

Private Client Group $ 565 $ 550

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The following table presents our net revenues and pre-tax income classified by major geographic area in which they were earned.

Three months ended December 31,

Three months ended March 31, Six months ended March 31,

$ in millions 2023 2022 2023 2022

4 unchanged sentences

Total $ 2,873 $ 2,673 $ 5,659 $ 5,454

Pre-tax income:

Pre-tax income/(loss):

$ 524 $ 406 $ 1,133 $ 937

Canada 36 14 67 32

Europe ( 3 ) 13 9 22

Total $ 557 $ 433 $ 1,209 $ 991

The following table presents our total assets by major geographic area in which they were held.

$ in millions December 31, 2022 September 30, 2022

$ in millions March 31, 2023 September 30, 2022

Total assets:

4 unchanged sentences

The following table presents goodwill, which was included in our total assets, classified by major geographic area in which it was held.

$ in millions December 31, 2022 September 30, 2022

$ in millions March 31, 2023 September 30, 2022

$ 1,250 $ 1,250

4 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements