What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-05-07 compared with 2025-02-07 · 523 added, 250 removed, 1125 unchanged (41% of the section changed)

20 unchanged sentences

Certain statements made in this Quarterly Report on Form 10-Q may constitute “forward-looking statements” under the Private Securities Litigation Reform Act of 1995.

Forward-looking statements include information concerning future strategic objectives, business prospects, anticipated savings, financial results (including expenses, earnings, liquidity, cash flow and capital expenditures), industry or market conditions (including changes in interest rates and inflation), demand for and pricing of our products (including cash sweep and deposit offerings), anticipated timing and benefits of our acquisitions, and our level of success integrating acquired businesses, anticipated results of litigation, regulatory developments, and general economic conditions.

Forward-looking statements include information concerning future strategic objectives, business prospects, anticipated savings, financial results (including expenses, earnings, liquidity, cash flow and capital expenditures), industry or market conditions (including changes in interest rates, inflation, and international trade policies), demand for and pricing of our products (including cash sweep and deposit offerings), anticipated timing and benefits of our acquisitions, and our level of success integrating acquired businesses, anticipated results of litigation, regulatory developments, and general economic conditions.

In addition, words such as “believes,” “expects,” “anticipates,” “estimates,” “projects,” and future or conditional verbs such as “will,” “may,” “could,” “should,” and “would,” as well as any other statement that necessarily depends on future events, are intended to identify forward-looking statements.

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Although we make such statements based on assumptions that we believe to be reasonable, there can be no assurance that actual results will not differ materially from those expressed in the forward-looking statements.

We caution investors not to rely unduly on any forward-looking statements and urge you to carefully consider the risks described in our filings with the Securities and Exchange Commission (the “SEC”) from time to time, including our most recent Annual Report on Form 10-K and Current Reports on Form 8-K, which are available at www.raymondjames.com and the SEC’s website at www.sec.gov.

We caution investors not to rely unduly on any forward-looking statements and urge you to carefully consider the risks described in our filings with the Securities and Exchange Commission (the “SEC”) from time to time, including our most recent Annual Report on Form 10-K, and subsequent Quarterly Report on Form 10-Q and Current Reports on Form 8-K, which are available at www.raymondjames.com and the SEC’s website at www.sec.gov.

We expressly disclaim any obligation to update any forward-looking statement in the event it later turns out to be inaccurate, whether as a result of new information, future events, or otherwise.

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Summary results of operations

Three months ended December 31,

$ in millions, except per share amounts 2024 2023 % change

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

$ in millions, except per share amounts 2025 2024 % change 2025 2024 % change

Net revenues $ 3,403 $ 3,118 9 % $ 6,940 $ 6,131 13 %

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$ 2.42 $ 2.31 5 % $ 5.36 $ 4.71 14 %

Three months ended December 31,

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

Other selected financial highlights 2025 2024 2025 2024

Pre-tax margin

19.7 % 19.5 % 20.5 % 20.2 %

Adjusted pre-tax margin (1)

20.3 % 20.4 % 21.0 % 21.0 %

Return on common equity 16.4 % 17.5 % 18.4 % 18.3 %

10 unchanged sentences

26.2 % 21.8 % 22.9 % 21.4 %

Quarter ended December 31, 2024 compared with the quarter ended December 31, 2023

For our fiscal first quarter of 2025, we generated net revenues of $3.54 billion, an increase of 17% compared with the prior-year quarter, and pre-tax income of $749 million, an increase of 19% compared with the prior-year quarter.

Our net income available to common shareholders of $599 million also increased 21%, and our earnings per diluted share were $2.86, reflecting an increase of 23%.

Quarter ended March 31, 2025 compared with the quarter ended March 31, 2024

For our fiscal second quarter of 2025, we generated net revenues of $3.40 billion, an increase of 9% compared with the prior-year quarter, and pre-tax income of $671 million, an increase of 10% compared with the prior-year quarter.

Our net income available to common shareholders of $493 million increased 4%, and our earnings per diluted share were $2.36, reflecting an increase of 6%.

Our annualized return on common equity (“ROCE”) for the quarter was 16.4%, compared with 17.5% for the prior-year quarter, and our annualized return on tangible common equity (“ROTCE”) was 19.2% (1) , compared with 21.0% (1) for the prior-year quarter.

Excluding the impact of $20 million of expenses related to acquisitions completed in prior years, such as compensation expenses related to retention awards and amortization of identifiable intangible assets, our adjusted net income available to common shareholders was $614 million (1) for the three months ended December 31, 2024, an increase of 19% compared with adjusted net income available to common shareholders for the prior-year quarter.

Excluding the impact of $19 million of expenses related to acquisitions completed in prior years, such as compensation expenses related to retention awards and amortization of identifiable intangible assets, our adjusted net income available to common shareholders was $507 million (1) for the three months ended March 31, 2025, an increase of 3% compared with adjusted net income available to common shareholders for the prior-year quarter.

Our adjusted earnings per diluted share were $2.42 (1) , an increase of 5% compared with the prior-year quarter.

Adjusted annualized ROCE for the quarter was 16.9% (1) and adjusted annualized ROTCE was 19.7% (1) compared with adjusted annualized ROCE of 18.3% (1) and adjusted annualized ROTCE of 21.8% (1) for the prior-year quarter.

The increase in net revenues compared with the prior-year quarter was primarily due to higher asset management and related administrative fees, largely the result of higher PCG client assets in fee-based accounts due to equity market appreciation and net new assets to the firm since the prior-year period.

Investment banking revenues also increased significantly compared with the prior-year quarter primarily due to more favorable market conditions in the current period, particularly for merger & acquisition activity.

Offsetting these increases was a decrease in combined net interest income and RJBDP fees from third‑party banks of $25 million, or 4%, due to lower interest rates compared with the prior-year quarter, which more than offset the favorable impact from growth in interest-earning assets and RJBDP balances swept to third-party banks.

The increase in net revenues compared with the prior-year quarter was primarily due to higher asset management and related administrative fees largely the result of higher PCG client assets in fee-based accounts.

The increase in PCG client assets in fee-based accounts was primarily due to market appreciation and net new assets to the firm since the prior-year period.

Brokerage revenues increased compared with the prior-year quarter largely due to higher fixed income brokerage revenues.

Investment banking revenues also increased primarily due to more favorable market conditions compared with the prior-year quarter, although activity levels slowed compared with our fiscal first quarter of 2025 due to market uncertainty.

Offsetting these increases was a decrease in combined net interest income and RJBDP fees from third‑party banks due to lower short-term interest rates compared with the prior-year quarter, which more than offset a favorable impact from growth in average interest-earning assets.

(1) These are non-GAAP financial measures.

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Management’s Discussion and Analysis

Compensation, commissions and benefits expense increased 18%, primarily due to an increase in compensable revenues, as well as an increase in compensation costs to support our growth and annual cost increases, including salaries.

Compensation, commissions and benefits expense increased 8%, resulting from an increase in compensable revenues, annual salary increases, and an increase in compensation costs to support our growth.

Our compensation ratio, or the ratio of compensation, commissions and benefits expense to net revenues, was 64.8%, compared with 65.5% for the prior-year quarter.

Excluding acquisition-related compensation expenses, our adjusted compensation ratio was 64.5% (1) , compared with 65.2% (1) for the prior-year quarter.

Non-compensation expenses increased 12%, primarily due to higher communications and information processing expenses resulting from continued investments in technology to benefit our clients and advisors and to support our growth, and higher investment sub-advisory fees resulting from growth in assets under management in sub-advised programs.

Expenses related to legal and regulatory matters also increased as the current quarter included provisions for legal and regulatory matters while the prior-year quarter reflected a net reserve release.

Partially offsetting these increases in expenses, was a decrease in the bank loan provision for credit losses.

Our effective income tax rate was 19.9% for our fiscal first quarter of 2025, a decrease compared with the 21.0% effective income tax rate for the prior-year quarter, primarily due to the impact of a larger tax benefit recognized during the current quarter related to share-based compensation that vested during the period.

As of December 31, 2024, our tier 1 leverage ratio was 13.0% and total capital ratio was 25.0% both well above regulatory capital requirements.

We also continue to have substantial liquidity with $2.3 billion (2) of cash at the parent as of December 31, 2024.

In December 2024, the Board of Directors increased the quarterly cash dividend on common shares 11% to $0.50 per share and authorized common stock repurchases of up to $1.5 billion, replacing the previous authorization.

During the three months ended December 31, 2024, we repurchased 310 thousand shares of our common stock for $50 million at an average price of $161 per share under the Board’s common stock repurchase authorization, leaving $1.45 billion available under such authorization.

Non-compensation expenses increased 13%, primarily due to higher legal and regulatory matters expenses as the prior-year quarter reflected a net reserve release, which did not reoccur in the current quarter.

Non-compensation expenses also increased due to higher communications and information processing expenses resulting from continued investments in technology to benefit our advisors and their clients and to support our growth and higher investment sub-advisory fees resulting from growth in assets under management in sub-advised programs.

Our effective income tax rate was 26.2% for our fiscal second quarter of 2025, an increase compared with the 21.8% effective income tax rate for the prior-year quarter, primarily due to the impact of non-deductible valuation losses on our company-owned life insurance policies recognized in the current quarter compared with nontaxable valuation gains in the prior-year quarter, which had favorably impacted our effective tax rate for that quarter.

As of March 31, 2025, our tier 1 leverage ratio was 13.3% and total capital ratio was 24.8% both well above regulatory capital requirements.

We also continue to have substantial liquidity with $2.5 billion (2) of corporate cash as of March 31, 2025.

During the three months ended March 31, 2025, we repurchased 1.7 million shares of our common stock for $250 million at an average price of $146 per share under the Board of Directors’ common stock repurchase authorization, leaving $1.2 billion available under the Boards’ common stock share repurchase authorization as of March 31, 2025.

We believe our capital and funding position provides us the opportunity to manage our balance sheet prudently and to continue to be opportunistic and invest in growth across our businesses.

We expect to continue to repurchase our common stock to offset dilution from share-based compensation and to be opportunistic with incremental repurchases.

However, we will continue to monitor market conditions and other capital needs as we consider the magnitude and timing of these repurchases.

As we look ahead to the remainder of our fiscal 2025, we believe we are well-positioned for long-term growth with our strong capital position, total client assets under administration of $1.56 trillion, and net bank loans of $47.2 billion.

Our PCG segment continues to benefit from growth in fee-based accounts and our financial advisor recruiting pipeline remains solid.

Our fiscal second quarter of 2025 results will be negatively impacted by two fewer billable days which we expect to result in an approximate 2% decline in asset management and related administrative fees, as well as impacting our combined net interest income and RJBDP fees from third-party banks.

Given our healthy pipeline and our investments in our platform and capabilities, we expect investment banking revenues to continue to benefit over the next few quarters as the market environment has become more conducive for transaction closings.

Although the market is still challenging for our fixed income brokerage revenues, we expect to benefit from increased activity from depository institution clients resulting from changes in the outlook for short-term interest rates.

With ample client cash balances and capital, we believe we are well-positioned to increase lending as new origination activity increases, which may increase provisions for credit losses in future periods.

In addition, although our current loan portfolio credit metrics are solid and we continue to proactively manage our credit risk in our loan portfolio, future economic deterioration or changes in the macroeconomic outlook could also result in increased bank loan provisions for credit losses in future periods.

While we maintain discipline in controlling our expenses, we continue to invest to support growth across our businesses which may increase expenses in future periods.

Our fiscal second quarter of 2025 compensation expenses will also reflect our annual salary increases and the reset of payroll taxes on January 1, 2025.

As we look ahead to the remainder of our fiscal 2025, we believe we are well-positioned for long-term growth with our strong capital and liquidity position, total client assets under administration of $1.54 trillion, PCG client assets in fee-based accounts of $872.8 billion, and net bank loans of $48.3 billion.

(1) These are non-GAAP financial measures.

Please see the “Reconciliation of non-GAAP financial measures to GAAP financial measures” in this MD&A for a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures, and for other important disclosures.

(2) This amount includes cash on hand at the parent, as well as parent cash loaned to RJ&A, which RJ&A has invested on behalf of RJF in cash and cash equivalents or otherwise deployed in its normal business activities.

For additional information, please see the “Liquidity and capital resources - Sources of liquidity” section in this MD&A.

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Management’s Discussion and Analysis

Six months ended March 31, 2025 compared with the six months ended March 31, 2024

For the six months ended March 31, 2025, we generated net revenues of $6.94 billion, an increase of 13% compared with the prior-year period, and pre-tax income of $1.42 billion, an increase of 15%.

Our net income available to common shareholders of $1.09 billion was 12% higher than the prior-year period and our earnings per diluted share were $5.22, reflecting a 15% increase.

Our annualized ROCE was 18.4%, up slightly from 18.3% for the prior-year period, and our annualized ROTCE was 21.6% (1) , compared with 22.0% (1) for the prior-year period.

Excluding the impact of $39 million of expenses related to acquisitions completed in prior years, adjusted net income available to common shareholders for the six months ended March 31, 2025 was $1.12 billion (1) , an increase of 11% compared with adjusted net income available to common shareholders for the prior-year period.

Our adjusted earnings per diluted share were $5.36 (1) , an increase of 14% compared with the prior-year period.

Adjusted annualized ROCE was 18.9% (1) , compared with 19.0% (1) for the prior-year period, and adjusted annualized ROTCE was 22.1% (1) , compared with 22.8% (1) for the prior-year period.

The increase in net revenues compared with the prior-year period was primarily due to higher asset management and related administrative fees, largely the result of higher PCG client assets in fee-based accounts at the beginning of each of the current-year quarterly billing periods compared with the prior-year billing periods.

The increase in PCG client assets in fee-based accounts resulted from net market appreciation and net new assets to the firm since the prior-year period.

Investment banking revenues also increased significantly compared with the prior-year period primarily due to more favorable market conditions in the current period, particularly in our fiscal first quarter of 2025.

Brokerage revenues also increased compared with the prior-year period largely due to an increase in client activity particularly in the PCG segment.

Offsetting these increases was a decrease in combined net interest income and RJBDP fees from third‑party banks, due to lower short-term interest rates compared with the prior-year period, which more than offset a favorable impact from growth in average interest-earning assets and average RJBDP balances swept to third-party banks.

Compensation, commissions and benefits expense increased 13%, primarily due to an increase in compensable revenues, annual salary increases, and an increase in compensation costs to support our growth.

Our compensation ratio was 64.5%, compared with 64.7% for the prior-year period.

Excluding acquisition-related compensation expenses, our adjusted compensation ratio was 64.3% (1) , flat compared with the prior-year period.

Non-compensation expenses increased 13%, primarily due to higher communications and information processing expenses resulting from continued investments in technology to benefit our advisors and their clients and to support our growth, higher legal and regulatory matters expenses as the prior-year period reflected a net reserve release, which did not reoccur in the current-year period, and higher investment sub-advisory fees resulting from growth in assets under management in sub-advised programs.

Partially offsetting these increases, the bank loan provision for credit losses decreased largely resulting from an improved economic forecast and strong credit metrics.

Our effective income tax rate was 22.9% for the six months ended March 31, 2025, an increase from 21.4% for the prior-year period, primarily due to the impact of non-deductible valuation losses on our company-owned life insurance policies recognized in the current-year period compared with nontaxable valuation gains in the prior-year period, which had favorably impacted our effective tax rate for that period.

(1) ROTCE, adjusted net income available to common shareholders, adjusted earnings per diluted share, adjusted annualized ROCE, adjusted annualized ROTCE, and adjusted compensation ratio are non-GAAP financial measures.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Management’s Discussion and Analysis

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES

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The following tables provide a reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures.

Three months ended December 31,

$ in millions, except per share amounts

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

$ in millions

2025 2024 2025 2024

Net income available to common shareholders $ 493 $ 474 $ 1,092 $ 971

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Professional fees

Other — Amortization of identifiable intangible assets

Amortization of identifiable intangible assets 10 11 21 22

All other acquisition-related expenses

Total “Other” expense 10 13 21 24

Total pre-tax impact of non-GAAP adjustments related to acquisitions 19 26 39 49

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$ 2,196 $ 2,032 $ 4,460 $ 3,942

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Management’s Discussion and Analysis

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

$ in millions, except per share amounts

2025 2024 2025 2024

Pre-tax margin

19.7 % 19.5 % 20.5 % 20.2 %

Less the impact of non-GAAP adjustments on pre-tax margin :

Expenses related to acquisitions:

Compensation, commissions and benefits — Acquisition-related retention

0.3 % 0.3 % 0.2 % 0.4 %

Communications and information processing — % — % — % — %

Professional fees

— % 0.1 % — % — %

Amortization of identifiable intangible assets

0.3 % 0.4 % 0.3 % 0.4 %

All other acquisition-related expenses — % 0.1 % — % — %

Total “Other” expense 0.3 % 0.5 % 0.3 % 0.4 %

Total pre-tax impact of non-GAAP adjustments related to acquisitions 0.6 % 0.9 % 0.5 % 0.8 %

Adjusted pre-tax margin

20.3 % 20.4 % 21.0 % 21.0 %

Total compensation ratio 64.8 % 65.5 % 64.5 % 64.7 %

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Compensation, commissions and benefits — Acquisition-related retention

0.04 0.05 0.08 0.10

Communications and information processing — — — —

Professional fees — 0.01 0.01 0.01

Other — Amortization of identifiable intangible assets

Amortization of identifiable intangible assets 0.05 0.05 0.10 0.11

All other acquisition-related expenses — 0.01 — 0.01

Total “Other” expense 0.05 0.06 0.10 0.12

Total pre-tax impact of non-GAAP adjustments related to acquisitions

0.09 0.12 0.19 0.23

Tax effect of non-GAAP adjustments (0.03) (0.03) (0.05) (0.06)

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Management’s Discussion and Analysis

Three months ended December 31,

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

$ in millions 2025 2024 2025 2024

5 unchanged sentences

Professional fees 1 — 1 1

Other — Amortization of identifiable intangible assets

Amortization of identifiable intangible assets 5 6 11 11

All other acquisition-related expenses — 1 — 1

Total “Other” expense 5 7 11 12

Total pre-tax impact of non-GAAP adjustments related to acquisitions

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Professional fees 1 — 1 1

Other — Amortization of identifiable intangible assets

Amortization of identifiable intangible assets 5 6 11 11

All other acquisition-related expenses — 1 — 1

Total “Other” expense 5 7 11 12

Total pre-tax impact of non-GAAP adjustments related to acquisitions

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Adjusted return on tangible common equity 19.7 % 21.8 % 22.1 % 22.8 %

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Management’s Discussion and Analysis

Diluted earnings per common share is computed by dividing net income available to common shareholders (less allocation of earnings and dividends to participating securities) by diluted weighted-average common shares outstanding for each respective period or, in the case of adjusted diluted earnings per common share, computed by dividing adjusted net income available to common shareholders (less allocation of earnings and dividends to participating securities) by diluted weighted-average common shares outstanding for each respective period.

Pre-tax margin is computed by dividing pre-tax income by net revenues for each respective period or, in the case of adjusted pre-tax margin, computed by dividing adjusted pre-tax income by net revenues for each respective period.

Total compensation ratio is computed by dividing compensation, commissions and benefits expense by net revenues for each respective period.

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Average common equity is computed by adding the total common equity attributable to RJF as of the date indicated to the prior quarter-end total, and dividing by two, or in the case of average tangible common equity, computed by adding tangible common equity as of the date indicated to the prior quarter-end total, and dividing by two.

Average common equity for the year-to-date period is computed by adding the total common equity attributable to RJF as of each quarter-end date during the indicated year-to-date period to the beginning of year total, and dividing by three, or in the case of average tangible common equity, computed by adding tangible common equity as of each quarter-end date during the indicated year-to-date period to the beginning of year total, and dividing by three.

Adjusted average common equity is computed by adjusting for the impact on average common equity of the non-GAAP adjustments, as applicable for each respective period.

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Adjusted ROCE is computed by dividing annualized adjusted net income available to common shareholders by adjusted average common equity for each respective period, or in the case of adjusted ROTCE, computed by dividing annualized adjusted net income available to common shareholders by adjusted average tangible common equity for each respective period.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Management’s Discussion and Analysis

NET INTEREST ANALYSIS

The Fed funds target rate began our fiscal 2024 at a range of 5.25% to 5.50% and remained throughout most of our fiscal 2024.

In late September 2024, the Fed decreased the Fed funds target rate by 50 basis points, followed by two additional 25‑basis-point reductions during our fiscal first quarter of 2025 to end the quarter at a range of 4.25% to 4.50%.

In late September 2024, the Fed decreased the Fed funds target rate by 50 basis points, followed by two additional 25‑basis-point reductions during fiscal 2025 to end the period at a range of 4.25% to 4.50%.

The Fed has indicated that it intends to closely monitor market conditions to determine whether it will consider making additional adjustments to short-term interest rates during the remainder of our fiscal 2025.

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The magnitude of the impact to our net interest margin depends on the yields on interest-earning assets relative to the cost of interest-bearing liabilities, including deposit rates paid to clients on their cash balances.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Management’s Discussion and Analysis

Decreases in short-term interest rates generally also result in a decrease to our RJBDP fees earned from third-party banks, although the magnitude of the impact may also be impacted by demand for cash balances by third-party banks and the rate paid to clients on their cash sweep balances.

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Net interest income and RJBDP fees from third-party banks

Three months ended December 31,

$ in millions 2024 2023 % change

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

$ in millions 2025 2024 % change 2025 2024 % change

Net interest income

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$ 651 $ 689 (6) % $ 1,324 $ 1,387 (5) %

Quarter ended December 31, 2024 compared with the quarter ended December 31, 2023

Combined net interest income and RJBDP fees from third-party banks declined 4% compared with the prior-year quarter primarily due to lower interest rates, which more than offset the favorable impact from growth in interest-earning assets and RJBDP balances swept to third-party banks.

Quarter ended March 31, 2025 compared with the quarter ended March 31, 2024

Combined net interest income and RJBDP fees from third-party banks was $651 million and $689 million for the three months ended March 31, 2025 and 2024, respectively.

The 6% decline compared with the prior-year quarter was primarily due to lower short-term interest rates, which more than offset a favorable impact from growth in average interest-earning assets.

Six months ended March 31, 2025 compared with the six months ended March 31, 2024

Combined net interest income and RJBDP fees from third-party banks was $1.32 billion and $1.39 billion for the six months ended March 31, 2025 and 2024, respectively.

The 5% decline compared with the prior-year period was primarily due to lower short-term interest rates, which more than offset a favorable impact from growth in average interest-earning assets and average RJBDP balances swept to third-party banks.

RAYMOND JAMES FINANCIAL, INC.

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The following table presents our consolidated average interest-earning asset and interest-bearing liability balances, interest income and expense and the related rates.

Quarter ended December 31, 2024 compared with the quarter ended December 31, 2023

Three months ended December 31,

Quarter ended March 31, 2025 compared with the quarter ended March 31, 2024

Three months ended March 31,

$ in millions Average

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Changes attributable to both volume and rate have been allocated proportionately.

Three months ended December 31,

Three months ended March 31,

2025 compared to 2024

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Management’s Discussion and Analysis

Six months ended March 31, 2025 compared with the six months ended March 31, 2024

Six months ended March 31,

$ in millions Average

balance Interest Annualized

Interest-earning assets:

Bank segment:

Cash and cash equivalents $ 6,141 $ 138 4.47 % $ 5,889 $ 160 5.41 %

Available-for-sale securities 8,555 97 2.26 % 10,207 112 2.18 %

Loans held for sale and investment:

Loans held for investment:

SBL 16,794 530 6.24 % 14,567 529 7.14 %

C&I loans 10,248 346 6.69 % 10,428 403 7.60 %

CRE loans 7,620 259 6.72 % 7,314 281 7.56 %

REIT loans 1,683 61 7.18 % 1,691 66 7.71 %

Residential mortgage loans 9,633 187 3.87 % 8,873 157 3.53 %

Tax-exempt loans (3)

1,291 17 3.37 % 1,446 19 3.25 %

Loans held for sale 221 8 6.95 % 155 6 8.36 %

Total loans held for sale and investment 47,490 1,408 5.89 % 44,474 1,461 6.50 %

All other interest-earning assets 239 6 5.45 % 239 7 6.17 %

Interest-earning assets — Bank segment $ 62,425 $ 1,649 5.25 % $ 60,809 $ 1,740 5.67 %

All other segments:

Cash and cash equivalents $ 4,056 $ 90 4.47 % $ 3,248 $ 100 6.13 %

Assets segregated for regulatory purposes and restricted cash 3,539 78 4.39 % 3,639 94 5.18 %

Trading assets — debt securities 1,414 38 5.35 % 1,162 34 5.78 %

Brokerage client receivables 2,389 86 7.23 % 2,214 92 8.28 %

All other interest-earning assets 2,529 49 3.86 % 1,996 42 4.00 %

Interest-earning assets — all other segments $ 13,927 $ 341 4.90 % $ 12,259 $ 362 5.86 %

Total interest-earning assets $ 76,352 $ 1,990 5.19 % $ 73,068 $ 2,102 5.70 %

Interest-bearing liabilities:

Bank segment:

Bank deposits:

Money market and savings accounts $ 32,725 $ 312 1.92 % $ 31,572 $ 324 2.05 %

Interest-bearing demand deposits 20,897 437 4.19 % 20,134 497 4.94 %

Certificates of deposit 2,260 52 4.59 % 2,717 62 4.62 %

Total bank deposits (4)

55,882 801 2.88 % 54,423 883 3.25 %

FHLB advances and all other interest-bearing liabilities 1,078 15 2.69 % 1,207 18 2.94 %

Interest-bearing liabilities — Bank segment $ 56,960 $ 816 2.88 % $ 55,630 $ 901 3.24 %

All other segments:

Trading liabilities — debt securities $ 842 $ 21 5.08 % $ 777 $ 22 5.60 %

Brokerage client payables 4,732 37 1.55 % 4,752 41 1.71 %

Senior notes payable 2,040 46 4.50 % 2,039 46 4.50 %

All other interest-bearing liabilities (4)

1,141 20 3.68 % 935 17 3.69 %

Interest-bearing liabilities — all other segments $ 8,755 $ 124 2.85 % $ 8,503 $ 126 2.95 %

Total interest-bearing liabilities $ 65,715 $ 940 2.88 % $ 64,133 $ 1,027 3.20 %

Firmwide net interest income $ 1,050 $ 1,075

Net interest margin (net yield on interest-earning assets)

Bank segment 2.63 % 2.70 %

Firmwide 2.76 % 2.94 %

(1) Loans are presented net of unamortized discounts, unearned income, deferred loan fees and costs, and charge-offs.

(2) Nonaccrual loans are included in the average loan balances.

Any payments received for corporate nonaccrual loans are applied entirely to principal.

Interest income on residential mortgage nonaccrual loans is recognized on a cash basis.

(3) The average rate on tax-exempt loans in the preceding table is presented on a taxable-equivalent basis utilizing the applicable federal statutory rates for each of the years presented.

(4) The average balance, interest expense, and average rate for “Total bank deposits” included amounts associated with affiliate deposits.

Such amounts are eliminated in consolidation and are offset in “All other interest-bearing liabilities” under “All other segments.”

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Management’s Discussion and Analysis

Increases and decreases in interest income and interest expense result from changes in average balances (volume) of interest-earning assets and interest-bearing liabilities, as well as changes in average interest rates.

The following table shows the effect that these factors had on the interest earned on our interest-earning assets and the interest incurred on our interest-bearing liabilities.

The effect of changes in volume is determined by multiplying the change in volume by the previous period’s average yield/cost.

Similarly, the effect of rate changes is calculated by multiplying the change in average yield/cost by the previous period’s volume.

Changes attributable to both volume and rate have been allocated proportionately.

Six months ended March 31,

2025 compared to 2024

Increase/(decrease) due to

$ in millions Volume Rate Total

Interest-earning assets:

Interest income

Bank segment:

Cash and cash equivalents $ 7 $ (29) $ (22)

Available-for-sale securities (19) 4 (15)

Loans held for sale and investment:

Loans held for investment:

SBL 67 (66) 1

C&I loans (7) (50) (57)

CRE loans 10 (32) (22)

REIT loans — (5) (5)

Residential mortgage loans 14 16 30

Tax-exempt loans (3) 1 (2)

Loans held for sale 3 (1) 2

Total loans held for sale and investment 84 (137) (53)

All other interest-earning assets — (1) (1)

Interest-earning assets — Bank segment $ 72 $ (163) $ (91)

All other segments:

Cash and cash equivalents $ 17 $ (27) $ (10)

Assets segregated for regulatory purposes and restricted cash (3) (13) (16)

Trading assets — debt securities 6 (2) 4

Brokerage client receivables 6 (12) (6)

All other interest-earning assets 8 (1) 7

Interest-earning assets — all other segments $ 34 $ (55) $ (21)

Total interest-earning assets $ 106 $ (218) $ (112)

Interest-bearing liabilities:

Interest expense

Bank segment:

Bank deposits:

Money market and savings accounts $ 9 $ (21) $ (12)

Interest-bearing demand deposits 18 (78) (60)

Certificates of deposit (10) — (10)

Total bank deposits 17 (99) (82)

FHLB advances and all other interest-bearing liabilities (1) (2) (3)

Interest-bearing liabilities — Bank segment $ 16 $ (101) $ (85)

All other segments:

Trading liabilities — debt securities $ 2 $ (3) $ (1)

Brokerage client payables — (4) (4)

Senior notes payable — — —

All other interest-bearing liabilities 3 — 3

Interest-bearing liabilities — all other segments $ 5 $ (7) $ (2)

Total interest-bearing liabilities $ 21 $ (108) $ (87)

Change in firmwide net interest income $ 85 $ (110) $ (25)

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Management’s Discussion and Analysis

RESULTS OF OPERATIONS – PRIVATE CLIENT GROUP

1 unchanged sentence

Operating results

Three months ended December 31,

$ in millions 2024 2023 % change

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

$ in millions 2025 2024 % change 2025 2024 % change

Asset management and related administrative fees

2 unchanged sentences

Mutual and other fund products

152 141 8 % 304 277 10 %

Insurance and annuity products

1 unchanged sentence

Equities, ETFs and fixed income products

150 139 8 % 313 260 20 %

Total brokerage revenues 419 407 3 % 852 789 8 %

1 unchanged sentence

Mutual fund and annuity service fees

130 115 13 % 256 221 16 %

Bank segment 183 206 (11) % 370 429 (14) %

1 unchanged sentence

Client account and other fees

66 64 3 % 136 129 5 %

Total account and service fees 509 545 (7) % 1,036 1,091 (5) %

Investment banking

9 8 13 % 17 19 (11) %

Interest income (1)

110 122 (10) % 236 240 (2) %

6 6 — % 11 10 10 %

Total revenues 2,510 2,371 6 % 5,085 4,623 10 %

10 unchanged sentences

Communications and information processing

116 104 12 % 228 197 16 %

Occupancy and equipment

56 56 — % 111 111 — %

Business development

41 37 11 % 82 77 6 %

Professional fees

16 17 (6) % 31 31 — %

27 19 42 % 59 35 69 %

Total non-compensation expenses

256 233 10 % 511 451 13 %

Total non-interest expenses 2,055 1,897 8 % 4,141 3,684 12 %

Pre-tax income $ 431 $ 444 (3) % $ 893 $ 883 1 %

(1) Effective October 1, 2024, we updated our methodology for allocating interest income on certain cash balances to our segments, resulting in a reduction in interest income in the Other segment and an increase in interest income in the PCG segment.

(1) Effective October 1, 2024, we updated our methodology for allocating interest income on certain cash balances to our segments, resulting in a reallocation of interest income from the Other segment to the PCG segment.

Prior-period segment results have not been conformed to the current-period presentation.

4 unchanged sentences

PCG client asset balances

$ in billions December 31,

$ in billions March 31,

2025 December 31,

2024 September 30,

1 unchanged sentence

2024 March 31,

2024 December 31,

Assets under administration (“AUA”)

6 unchanged sentences

These assets are included in our financial assets under management as disclosed in the “Selected key metrics” section of our “Management’s Discussion and Analysis - Results of Operations - Asset Management.”

As of December 31, 2024, September 30, 2024, and December 31, 2023 PCG AUA included assets associated with firms affiliated with us through our RCS division of $188.2 billion, $180.7 billion, and $146.9 billion, respectively, of which $160.2 billion, $153.1 billion, and $122.8 billion, respectively, were assets in fee-based accounts.

Based on the nature of the services provided to such firms, revenues related to these assets are included in “Account and services fees.” The growth in RCS client assets is partially due to transfers into RCS from our other financial advisor channels.

As of March 31, 2025, December 31, 2024, and March 31, 2024 PCG AUA included assets associated with firms affiliated with us through our RCS division of $185.6 billion, $188.2 billion, and $160.8 billion, respectively, of which $158.5 billion, $160.2 billion, and $134.5 billion, respectively, were assets in fee-based accounts.

Based on the nature of the services provided to such firms, revenues related to these assets in the PCG segment are included in “Account and service fees.” The growth in RCS client assets from March 2024 is partially due to transfers into RCS from our other financial advisor channels.

We may continue to experience transfers to our RCS division;

1 unchanged sentence

Domestic PCG net new assets

Three months ended December 31,

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

$ in millions 2025 2024 2025 2024

2 unchanged sentences

Domestic PCG net new assets growth - annualized (2)

2.6 % 3.2 % 3.3 % 5.7 %

(1) Domestic PCG net new assets represents domestic PCG client inflows, including dividends and interest, less domestic PCG client outflows, including commissions, advisory fees, and other fees.

(2) The Domestic PCG net new asset growth - annualized percentage is based on the beginning Domestic PCG AUA balance for the indicated period.

PCG AUA as of December 31, 2024 decreased 1% compared with September 30, 2024 and were negatively impacted by changes in foreign exchange rates, as well as the departure of primarily one large branch in our independent contractor division which also negatively impacted our PCG assets in fee-based accounts and our domestic PCG net new assets growth.

PCG assets in fee-based accounts were $876.6 billion as of December 31, 2024, a slight increase compared with September 30, 2024.

PCG AUA as of March 31, 2025 decreased 1% and PCG assets in fee-based accounts decreased slightly compared with December 31, 2024 due to market-driven depreciation, partially offset by net new assets.

PCG assets in fee-based accounts continued to be a significant percentage of overall PCG AUA due to many clients’ preference for fee-based alternatives versus transaction-based accounts and, as a result, a significant portion of our PCG revenues is more directly impacted by market movements.

13 unchanged sentences

Clients’ domestic cash sweep balances and ESP balances

$ in millions December 31,

$ in millions March 31,

2025 December 31,

2024 September 30,

1 unchanged sentence

2024 March 31,

2024 December 31,

Bank segment $ 25,783 $ 23,946 $ 23,978 $ 23,371 $ 23,405

7 unchanged sentences

$ 57,759 $ 59,736 $ 57,875 $ 56,448 $ 58,217

Three months ended December 31,

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

2025 2024 2025 2024

Average yield on RJBDP - third-party banks

9 unchanged sentences

The “Average yield on RJBDP - third-party banks” in the preceding table is computed by dividing annualized RJBDP fees from third-party banks, which are net of the interest expense paid to clients by the third-party banks, by the average daily RJBDP balances at third-party banks.

The average yield on RJBDP - third-party banks for the three months ended December 31, 2024 decreased from the prior-year quarter largely as a result of the 50-basis-point decrease in short-term interest rates enacted by the Fed late in the preceding quarter, as well as the two 25-basis-point rate cuts enacted during the current quarter.

The average yield on RJBDP - third-party banks for the three and six months ended March 31, 2025 decreased from the prior year largely as a result of decreases in the Fed’s short-term benchmark interest rate, as well as the impact of growth in RJBDP balances offering enhanced rates to clients which reduced the yield earned from third-party banks on such balances.

See “Management’s Discussion and Analysis - Net interest analysis” for further information.

Total clients’ domestic cash sweep and ESP balances increased 3% compared with September 30, 2024, primarily due to increases in RJBDP balances.

Total clients’ domestic cash sweep and ESP balances decreased 3% compared with December 31, 2024, primarily due to a decrease in RJBDP balances and, to a lesser extent, ESP deposits.

PCG segment results can be impacted by not only changes in the level of client cash balances, but also by the allocation of client cash balances between the RJBDP, the CIP, and the ESP, as the PCG segment may earn different amounts from each of these client cash destinations, depending on multiple factors.

Quarter ended December 31, 2024 compared with the quarter ended December 31, 2023

Net revenues of $2.55 billion increased 14% and pre-tax income of $462 million increased 5%.

Asset management and related administrative fees increased $285 million, or 24%, primarily due to higher assets in fee-based accounts at the beginning of the current quarter compared with the prior-year quarter resulting from market appreciation and net new assets, due to the favorable impact of our advisor recruiting and retention.

Quarter ended March 31, 2025 compared with the quarter ended March 31, 2024

Net revenues of $2.49 billion increased 6%, while pre-tax income of $431 million decreased 3%.

Asset management and related administrative fees increased $174 million, or 14%, primarily due to higher assets in fee-based accounts at the beginning of the current quarter compared with the prior-year quarter resulting from market-driven appreciation and net new assets, due to the favorable impact of our advisor recruiting and retention.

Brokerage revenues increased $12 million, or 3%, primarily due to higher client activity in the current quarter.

Account and service fees decreased $36 million, or 7%, primarily due to a decrease in RJBDP fees.

RJBDP fees paid to PCG from our Bank segment and third-party banks decreased despite an increase in overall RJBDP balances, primarily driven by a

RAYMOND JAMES FINANCIAL, INC.

1 unchanged sentence

Management’s Discussion and Analysis

reduction in the average RJBDP third-party bank yield, resulting from lower short-term interest rates and growth in RJBDP balances offering enhanced rates to clients which reduced the yields earned by the PCG segment.

Partially offsetting the overall decline in total RJBDP fees, mutual fund service fees increased, primarily due to higher average mutual fund assets.

Net interest income decreased $6 million, or 7%, primarily due to the impact of lower short-term interest rates, partially offset by the impact of an updated methodology for allocating interest income on certain cash balances to our segments, which resulted in a reduction in interest income in the Other segment and an increase in interest income in the PCG segment.

Compensation-related expenses increased $135 million, or 8%, primarily due to higher commission expense resulting from higher compensable revenues, including asset management and related administrative fees and brokerage revenues, as well as an increase in compensation costs to support our growth and annual salary increases.

Non-compensation expenses increased $23 million, or 10%, primarily due to higher communications and information processing expenses, largely to support our growth, and higher legal and regulatory matters expenses as the prior-year quarter reflected a net reserve release, which did not reoccur in the current quarter.

Six months ended March 31, 2025 compared with the six months ended March 31, 2024

Net revenues of $5.03 billion increased 10% and pre-tax income of $893 million increased 1%.

Asset management and related administrative fees increased $459 million, or 19%, primarily due to higher assets in fee-based accounts at the beginning of each of the current-year billing periods compared with the prior-year periods resulting from market-driven appreciation and net new assets, due to the favorable impact of our advisor recruiting and retention.

Brokerage revenues increased $63 million, or 8%, primarily due to higher client activity in the current-year period.

Account and service fees decreased $55 million, or 5%, primarily due to a decrease in RJBDP fees.

RJBDP fees paid to PCG from our Bank segment decreased due to the impact of lower short-term interest rates and, to a lesser extent, a decline in average balances allocated to our Bank segment, while RJBDP fees from third-party banks decreased due to lower short-term interest rates, partially offset by higher average balances swept to such banks.

RJBDP fees paid to PCG from our Bank segment and third-party banks decreased primarily due to a decrease in the average RJBDP third-party bank yield largely due to the impact of lower short-term interest rates, as well as the impact of growth in RJBDP balances offering enhanced rates to clients which reduced the yield the PCG segment earned on such balances.

These decreases were partially offset by higher average RJBDP balances.

Partially offsetting the decline in total RJBDP fees, mutual fund service fees increased, primarily from higher average mutual fund assets.

Net interest income increased $7 million, or 8%, largely due to an updated methodology for allocating interest income on certain cash balances to our segments, which resulted in a reduction in interest income in the Other segment and an increase in interest income in the PCG segment.

Compensation-related expenses increased $262 million, or 17%, primarily due to higher commission expense resulting from higher compensable revenues, including asset management and related administrative fees and brokerage revenues, as well as an increase in compensation costs to support our growth and annual cost increases, including salaries.

Non-compensation expenses increased $37 million, or 17%, primarily due to higher communications and information processing expenses, largely to support our growth, and higher provisions for legal and regulatory matters, as the current quarter included provisions for legal and regulatory matters while the prior-year quarter reflected a net reserve release.

Compensation-related expenses increased $397 million, or 12%, primarily due to higher commission expense resulting from higher compensable revenues, including asset management and related administrative fees and brokerage revenues, as well as an increase in compensation costs to support our growth and annual salary increases.

Non-compensation expenses increased $60 million, or 13%, primarily due to higher communications and information processing expenses, largely to support our growth, and higher legal and regulatory matters expenses as the prior-year period reflected a net reserve release, which did not reoccur in the current-year period.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Management’s Discussion and Analysis

RESULTS OF OPERATIONS – CAPITAL MARKETS

1 unchanged sentence

Operating results

Three months ended December 31,

$ in millions 2024 2023 % change

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

$ in millions 2025 2024 % change 2025 2024 % change

Brokerage revenues:

5 unchanged sentences

Merger & acquisition and advisory

129 107 21 % 355 225 58 %

Equity underwriting

31 23 35 % 66 49 35 %

Debt underwriting

47 41 15 % 103 67 54 %

Total investment banking 207 171 21 % 524 341 54 %

Interest income

28 26 8 % 57 49 16 %

Affordable housing investments business revenues 20 22 (9) % 49 45 9 %

4 4 — % 9 8 13 %

Total revenues 420 345 22 % 926 705 31 %

4 unchanged sentences

Compensation, commissions and benefits

262 240 9 % 563 478 18 %

Non-compensation expenses:

Communications and information processing

30 30 — % 60 57 5 %

Occupancy and equipment

11 12 (8) % 23 23 — %

Business development

16 15 7 % 37 31 19 %

Professional fees

10 11 (9) % 20 25 (20) %

31 30 3 % 63 59 7 %

Total non-compensation expenses

98 98 — % 203 195 4 %

Total non-interest expenses 360 338 7 % 766 673 14 %

Pre-tax income

$ 74 $ 3 2,367 %

$ 36 $ (17) NM $ 110 $ (14) NM

Quarter ended March 31, 2025 compared with the quarter ended March 31, 2024

Net revenues of $396 million increased 23% and pre-tax income was $36 million, compared with a pre-tax loss of $17 million for the prior-year quarter.

Investment banking revenues increased $36 million, or 21%, primarily due to more favorable market conditions compared with the prior-year quarter.

Brokerage revenues increased $39 million, or 32%, including higher client activity in fixed income and equity securities.

Compensation-related expenses increased $22 million, or 9%, primarily due to the increase in revenues.

Six months ended March 31, 2025 compared with the six months ended March 31, 2024

Net revenues of $876 million increased 33% and pre-tax income was $110 million, compared with a pre-tax loss of $14 million for the prior-year period.

RAYMOND JAMES FINANCIAL, INC.

1 unchanged sentence

Management’s Discussion and Analysis

Quarter ended December 31, 2024 compared with the quarter ended December 31, 2023

Net revenues of $480 million increased 42% and pre-tax income was $74 million, compared with $3 million for the prior-year quarter.

Investment banking revenues increased $147 million, or 86%, primarily due to more favorable market conditions in the current quarter compared with the prior-year quarter, particularly for merger & acquisition activity.

Brokerage revenues decreased $14 million, or 10%, due to a decrease in fixed income brokerage revenues primarily due to lower volatility in credit spreads in the current quarter compared with the prior-year quarter.

Investment banking revenues increased $183 million, or 54%, primarily due to more favorable market conditions in the current-year period, particularly in our first fiscal quarter of 2025, compared with the prior-year period.

The increase in investment banking revenues also reflected the impact of larger transactions during the current-year period.

Brokerage revenues increased $25 million, or 10%, primarily due to an increase in both fixed income and equity securities.

Compensation-related expenses increased $85 million, or 18%, primarily due to the increase in revenues.

Non-compensation expenses increased $8 million, or 8%, primarily due to higher business development expenses and communications and information processing expenses, partially offset by lower professional fees.

Non-compensation expenses increased $8 million, or 4%, primarily due to higher business development expenses and communications and information processing expenses largely to support our growth, partially offset by lower professional fees.

RESULTS OF OPERATIONS – ASSET MANAGEMENT

1 unchanged sentence

Operating results

Three months ended December 31,

$ in millions 2024 2023 % change

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

$ in millions 2025 2024 % change 2025 2024 % change

Asset management and related administrative fees:

4 unchanged sentences

Account and service fees

6 5 20 % 12 11 9 %

All other 5 5 — % 11 10 10 %

2 unchanged sentences

Compensation, commissions and benefits

57 58 (2) % 115 111 4 %

Non-compensation expenses:

Communications and information processing

19 16 19 % 36 31 16 %

Investment sub-advisory fees

52 43 21 % 105 82 28 %

40 35 14 % 81 70 16 %

Total non-compensation expenses 111 94 18 % 222 183 21 %

1 unchanged sentence

Pre-tax income $ 121 $ 100 21 % $ 246 $ 193 27 %

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Management’s Discussion and Analysis

Selected key metrics

1 unchanged sentence

Management fees recorded in our Asset Management segment are generally calculated as a percentage of the value of our fee-billable financial assets under management (“AUM”).

These AUM include the portion of fee-based AUA in our PCG segment that is invested in programs overseen by our Asset Management segment (included in the “AMS” line of the following table), as well as retail accounts managed on behalf of third-party institutions, institutional accounts and proprietary mutual funds that we manage (collectively included in the Raymond James Investment Management line of the following table).

These AUM include the portion of fee-based AUA in our PCG segment that is invested in programs overseen by AMS, as well as retail accounts managed on behalf of third-party institutions, institutional accounts and proprietary mutual funds managed by Raymond James Investment Management.

Revenues related to fee-based AUA in our PCG segment are shared by the PCG and Asset Management segments, the amount of which depends on whether or not clients are invested in assets that are in managed programs overseen by our Asset Management segment and the administrative services provided (see our “Management’s Discussion and Analysis - Results of Operations - Private Client Group” for additional information).

Our AUM in AMS are impacted by market fluctuations and net inflows or outflows of assets, including transfers between fee-based accounts and transaction-based accounts within our PCG segment.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Management’s Discussion and Analysis

Revenues earned by Raymond James Investment Management for retail accounts managed on behalf of third-party institutions, institutional accounts, and our proprietary mutual funds are recorded entirely in the Asset Management segment.

3 unchanged sentences

Financial assets under management

$ in billions December 31,

$ in billions March 31,

2025 December 31,

2024 September 30,

1 unchanged sentence

2024 March 31,

2024 December 31,

$ 183.3 $ 181.9 $ 182.7 $ 170.5 $ 165.7

5 unchanged sentences

Total financial assets under management $ 245.0 $ 243.9 $ 244.8 $ 229.3 $ 226.8

(1) Represents the portion of our PCG segment fee-based AUA (as disclosed in “Assets in fee-based accounts” in the “Selected key metrics - PCG client asset balances” section of our “Management’s Discussion and Analysis - Results of Operations - Private Client Group”) that is invested in managed programs overseen by the Asset Management segment.

(2) Represents the portion of the AMS AUM that is managed by Raymond James Investment Management and, as a result, is included in both AMS and Raymond James Investment Management in the preceding table.

1 unchanged sentence

Activity (including activity in assets managed for affiliated entities)

Three months ended December 31,

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

$ in billions 2025 2024 2025 2024

1 unchanged sentence

Raymond James Investment Management:

Net inflows/(outflows)

0.1 (1.3) (0.6) (2.2)

Transfer of Charles Stanley Asset Management (1)

Total Raymond James Investment Management

0.1 (1.3) 0.8 (2.2)

AMS - net inflows 3.7 2.5 4.8 4.2

Net market appreciation/(depreciation) in asset values

(2.5) 11.4 (5.2) 30.2

Financial assets under management at end of period $ 259.9 $ 240.1 $ 259.9 $ 240.1

1 unchanged sentence

See “Management’s Discussion and Analysis - Results of Operations - Private Client Group” for further information about our retail client assets, including those fee-based assets invested in programs managed by AMS.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Management’s Discussion and Analysis

Raymond James Investment Management

The following table presents Raymond James Investment Management’s AUM by objective, excluding assets for which it does not exercise discretion, as well as the approximate average client fee rate earned on such assets.

As of December 31, 2024

As of March 31, 2025

$ in billions AUM Average fee rate

3 unchanged sentences

Total financial assets under management $ 76.6 0.31 %

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Management’s Discussion and Analysis

Non-discretionary asset-based programs

2 unchanged sentences

Administrative fees associated with these programs are predominantly based on balances at the beginning of the quarter.

$ in billions December 31,

$ in billions March 31,

2025 December 31,

2024 September 30,

1 unchanged sentence

2024 March 31,

2024 December 31,

Total assets $ 505.3 $ 509.8 $ 506.2 $ 474.7 $ 462.9

2 unchanged sentences

(including those managed for affiliated entities).

$ in billions December 31,

$ in billions March 31,

2025 December 31,

2024 September 30,

1 unchanged sentence

2024 March 31,

2024 December 31,

Total assets $ 10.6 $ 10.7 $ 10.6 $ 10.0 $ 9.8

Fees earned on trust services are primarily reported within “Asset management and related administrative fees” on the Condensed Consolidated Statements of Income and Comprehensive Income.

Quarter ended December 31, 2024 compared with the quarter ended December 31, 2023

Quarter ended March 31, 2025 compared with the quarter ended March 31, 2024

Net revenues of $289 million increased 15% and pre-tax income of $121 million increased 21%.

Asset management and related administrative fees increased $36 million, or 15%, driven by higher financial assets under management and assets in non-discretionary asset-based programs at AMS, primarily due to market-driven appreciation in asset values and net inflows to PCG fee-based accounts.

Compensation expenses increased $5 million, or 9%, primarily due to higher revenues, as well as an increase in compensation costs to support our growth and annual cost increases, including salaries.

Non-compensation expenses increased $17 million, or 18%, largely due to higher investment sub-advisory fees, resulting from the increase in assets under management in sub-advised programs, as well as higher communications and information processing expenses.

Six months ended March 31, 2025 compared with the six months ended March 31, 2024

Net revenues of $583 million increased 20% and pre-tax income of $246 million increased 27%.

Asset management and related administrative fees increased $94 million, or 20%, primarily driven by higher financial assets under management and assets in non-discretionary asset-based programs at AMS, primarily due to market-driven appreciation in asset values and net inflows to PCG fee-based accounts.

Compensation expenses increased $4 million, or 4%, primarily due to higher revenues, annual salary increases, and an increase in compensation costs to support our growth.

Non-compensation expenses increased $39 million, or 21%, largely due to higher

RAYMOND JAMES FINANCIAL, INC.

1 unchanged sentence

Management’s Discussion and Analysis

investment sub-advisory fees, resulting from the increase in assets under management in sub-advised programs, as well as higher communications and information processing expenses.

RESULTS OF OPERATIONS – BANK

1 unchanged sentence

Operating results

Three months ended December 31,

$ in millions 2024 2023 % change

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

$ in millions 2025 2024 % change 2025 2024 % change

Interest income $ 802 $ 868 (8) % $ 1,649 $ 1,740 (5) %

5 unchanged sentences

Compensation and benefits

45 48 (6) % 91 91 — %

Non-compensation expenses:

Bank loan provision for credit losses

16 21 (24) % 16 33 (52) %

RJBDP fees to PCG

183 206 (11) % 370 429 (14) %

73 74 (1) % 147 145 1 %

Total non-compensation expenses 272 301 (10) % 533 607 (12) %

1 unchanged sentence

Pre-tax income $ 117 $ 75 56 % $ 235 $ 167 41 %

Quarter ended December 31, 2024 compared with the quarter ended December 31, 2023

Net revenues of $425 million decreased 4%, while pre-tax income of $118 million increased 28%.

Net interest income decreased $12 million, or 3%, primarily due to the impact of the decrease in short-term interest rates enacted by the Fed late in the preceding quarter, as well as rate cuts enacted during the current quarter, partially offset by the impact of higher average interest-earning asset balances, particularly securities-based loans.

The Bank segment net interest margin decreased to 2.60% from 2.74% for the prior-year quarter.

Quarter ended March 31, 2025 compared with the quarter ended March 31, 2024

Net revenues of $434 million increased 2% and pre-tax income of $117 million increased 56%.

Net interest income increased $6 million, or 1%, primarily due to the impact of higher average interest-earning asset balances, particularly securities-based loans, partially offset by the impact of the decrease in short-term interest rates.

The Bank segment net interest margin increased slightly to 2.67% from 2.66% for the prior-year quarter.

The bank loan provision for credit losses decreased $5 million compared with the prior-year quarter.

The bank loan provision for credit losses for the current quarter primarily reflected the impacts of an improved macroeconomic forecast and loan repayments on criticized loans, offset by provisions on new loans, loan downgrades, primarily in the CRE and C&I loan portfolios, and charge-offs of certain loans.

The bank loan provision for credit losses for the prior-year quarter primarily reflected the impacts of specific reserves in our C&I and CRE portfolios, loan downgrades, and charge-offs, partially offset by the favorable impact of loan repayments and sales, which had a larger impact than provisions on new loans.

Compensation expenses increased $3 million, or 7%.

The bank loan provision for credit losses for the current quarter primarily reflected the impacts of charge-offs of certain CRE and C&I loans and loan downgrades primarily related to our CRE loan portfolio.

The bank loan provision for credit losses for the prior-year quarter primarily reflected the impacts of specific reserves, loan downgrades, and charge-offs in our CRE and C&I loan portfolios, partially offset by the favorable impact of an improved economic forecast at that time and net loan payments.

Compensation expenses decreased $3 million, or 6%, due to lower acquisition-related compensation expenses.

Non - compensation expenses, excluding the bank loan provision for credit losses, decreased $24 million, or 9%, primarily due to a decrease in RJBDP fees paid to PCG.

RJBDP fees paid to PCG decreased $36 million, or 16%, primarily due to the impact of the aforementioned decreases in short-term interest rates, as well as lower average RJBDP balances swept to the Bank segment.

RJBDP fees paid to PCG decreased $23 million, or 11%, primarily due to the impact of the aforementioned decreases in short-term interest rates, partially offset by higher average RJBDP balances swept to the Bank segment.

These Bank segment fees and the related revenues earned by the PCG segment are eliminated in consolidation (see “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Private Client Group” for further information about these servicing fees).

Additionally, non-compensation expenses decreased as the prior-year quarter included the impact of the FDIC special assessment during that quarter which did not reoccur in the current quarter.

These decreases in expenses were partially offset by higher communications and information processing expenses.

RAYMOND JAMES FINANCIAL, INC.

1 unchanged sentence

Management’s Discussion and Analysis

Six months ended March 31, 2025 compared with the six months ended March 31, 2024

Net revenues of $859 million decreased 1%, while pre-tax income of $235 million increased 41%.

Net interest income decreased $6 million, or 1%, primarily due to the impact of the decrease in short-term interest rates, partially offset by the impact of higher average interest-earning asset balances, particularly securities-based loans.

The Bank segment net interest margin decreased to 2.63% from 2.70% for the prior-year period.

The bank loan provision for credit losses was $16 million for the current-year period, compared with $33 million for the prior-year period.

The bank loan provision for credit losses for the current-year period primarily reflected the impacts of loan downgrades and charge-offs in our CRE and C&I loan portfolios, as well as the impacts of specific reserves.

The bank loan provision for credit losses for the prior-year period primarily reflected the impacts of specific reserves, loan downgrades, and charge-offs in our C&I and CRE loan portfolios, partially offset by the favorable impacts of an improved economic forecast at that time and net loan payments.

Non-compensation expenses, excluding the bank loan provision for credit losses, decreased $57 million, or 10%, primarily due to a decrease in RJBDP fees paid to PCG.

RJBDP fees paid to PCG decreased $59 million, or 14%, primarily due to the impact of the aforementioned decreases in short-term interest rates, partially offset by higher average RJBDP balances swept to the Bank segment.

These Bank segment fees and the related revenues earned by the PCG segment are eliminated in consolidation.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Management’s Discussion and Analysis

RESULTS OF OPERATIONS – OTHER

2 unchanged sentences

Operating results

Three months ended December 31,

$ in millions 2024 2023 % change

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

$ in millions 2025 2024 % change 2025 2024 % change

Interest income (1)

$ 34 $ 44 (23) % $ 68 $ 93 (27) %

All other 3 2 50 %

All other 4 (2) NM 7 — NM

Total revenues 38 42 (10) % 75 93 (19) %

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Compensation and benefits 40 32 25 % 76 49 55 %

All other 6 6 — %

All other 7 (22) NM 13 (16) NM

Total non-interest expenses 47 10 370 % 89 33 170 %

Pre-tax income/(loss)

$ (30) $ 3 NM

$ (34) $ 7 NM $ (64) $ 10 NM

Prior-period segment results have not been conformed to the current-period presentation.

Quarter ended December 31, 2024 compared with the quarter ended December 31, 2023

Pre-tax loss was $30 million, compared with a pre-tax income of $3 million for the prior-year quarter.

Net revenues decreased $14 million primarily due to a decrease in interest income due to an updated methodology for allocating interest income on certain cash balances to our segments, resulting in a reduction in interest income in the Other segment and an increase in interest income in the PCG segment, as well as a decrease in short-term interest rates.

Non-interest expenses increased $19 million, primarily due to higher compensation expenses in the current quarter.

STATEMENT OF FINANCIAL CONDITION ANALYSIS

The assets on our Condensed Consolidated Statements of Financial Condition consisted primarily of cash and cash equivalents, assets segregated for regulatory purposes and restricted cash (primarily segregated for the benefit of clients), receivables including bank loans, financial instruments held either for trading purposes or as investments, goodwill and identifiable intangible assets, and other assets.

A significant portion of our assets were liquid in nature providing us with flexibility in financing our business.

Total assets of $82.28 billion as of December 31, 2024 were $710 million, or 1%, less than our total assets as of September 30, 2024.

Cash and cash equivalents decreased $950 million predominantly driven by a decrease in cash held in our Bank segment, largely resulting from investments in bank loans.

Available-for-sale securities decreased $533 million primarily driven by net maturities and, to a lesser extent, sales.

Other receivables, net and collateralized agreements also decreased $317 million and $219 million, respectively.

These decreases were partially offset by a $1.2 billion increase in bank loans, net including continued growth in securities-based loans.

As of December 31, 2024, our total liabilities of $70.35 billion were $972 million, or 1%, less than our total liabilities as of September 30, 2024.

Accrued compensation, commissions, and benefits decreased $538 million, primarily due to the payment of prior-year bonuses during the quarter.

Collateralized financings, bank deposits, and trading liabilities also decreased $170 million, $160 million, and $141 million, respectively.

Quarter ended March 31, 2025 compared with the quarter ended March 31, 2024

Pre-tax loss was $34 million, compared with pre-tax income of $7 million for the prior-year quarter.

Net revenues decreased $4 million due to a decrease in interest income which reflected the impact of a decrease in short-term interest rates.

Partially offsetting the decrease in interest income was the impact of gains on our private equity investments compared with losses in the prior-year quarter.

Non-interest expenses increased $37 million, as the prior-year quarter reflected a net reserve release related to legal and regulatory matters, which did not reoccur in the current quarter and, to a lesser extent, higher expenses related to our growth.

Six months ended March 31, 2025 compared with the six months ended March 31, 2024

Pre-tax loss was $64 million, compared with pre-tax income of $10 million for the prior-year period.

Net revenues decreased $18 million due to a decrease in interest income which reflected the impact of a decrease in short-term interest rates.

Partially offsetting the decrease in interest income was the impact of gains on our private equity investments in the current-year period.

Non-interest expenses increased $56 million, or 170%, primarily due to the aforementioned net reserve release related to legal and regulatory matters in the prior-year period, which did not reoccur in the current-year period, as well as higher compensation costs, communications and information processing expenses, and professional fees in the current-year period partially due to investments in our growth.

RAYMOND JAMES FINANCIAL, INC.

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Management’s Discussion and Analysis

STATEMENT OF FINANCIAL CONDITION ANALYSIS

The assets on our Condensed Consolidated Statements of Financial Condition consisted primarily of cash and cash equivalents, assets segregated for regulatory purposes and restricted cash (primarily segregated for the benefit of clients), receivables, including bank loans, financial instruments held either for trading purposes or as investments, goodwill and identifiable intangible assets, and other assets.

A significant portion of our assets were liquid in nature providing us with flexibility in financing our business.

Total assets of $83.13 billion as of March 31, 2025 were $140 million higher than our total assets as of September 30, 2024.

Banks loans, net increased $2.3 billion, largely due to continued growth in securities-based loans.

This increase was partially offset by a $1.3 billion decrease in cash and cash equivalents predominantly driven by a decrease in cash held in our Bank segment, largely resulting from investments in bank loans, and an $821 million decrease in our available-for-sale securities primarily driven by net maturities.

Collateralized agreements also decreased $198 million.

As of March 31, 2025, our total liabilities of $70.91 billion were $420 million, or 1%, less than our total liabilities as of September 30, 2024.

Accrued compensation, commissions, and benefits decreased $411 million primarily due to the payment of prior-year bonuses during the period, other borrowings decreased $200 million due to the maturity and repayment of certain FHLB borrowings, and collateralized financings decreased $151 million.

These decreases were partially offset by a $393 million increase in bank deposits.

LIQUIDITY AND CAPITAL RESOURCES

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We also believe that we will be able to continue to meet our long-term funding and liquidity requirements due to our strong financial position and ability to access capital from financial markets.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Management’s Discussion and Analysis

Liquidity and capital management

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We conduct enterprise-wide capital stress testing to ensure that we maintain adequate capital to adhere to our established tolerances under multiple scenarios, including a stressed scenario.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Management’s Discussion and Analysis

Capital structure

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We have elected the AOCI opt-out for regulatory capital purposes and therefore exclude certain elements of AOCI, including gains/losses on our available-for-sale portfolio, from our capital calculations.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Management’s Discussion and Analysis

The following table presents the components of RJF’s regulatory capital used to calculate the aforementioned regulatory capital ratios.

$ in millions

December 31, 2024 September 30, 2024

March 31, 2025 September 30, 2024

Common equity tier 1 capital/Tier 1 capital

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Total capital $ 11,585 $ 11,001

RAYMOND JAMES FINANCIAL, INC.

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Management’s Discussion and Analysis

The following table presents RJF’s risk-weighted assets by exposure type used to calculate the aforementioned regulatory capital ratios.

$ in millions

December 31, 2024 September 30, 2024

March 31, 2025 September 30, 2024

Credit risk-weighted assets:

On-balance sheet assets:

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Other off-balance sheet items 389 429

Total credit risk-weighted assets

43,683 42,825

Market risk-weighted assets

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government and its agencies.

Cash and cash equivalents (excluding amounts segregated for regulatory purposes and restricted cash) of $10.05 billion at December 31, 2024 decreased $950 million compared with September 30, 2024.

The decrease in cash and cash equivalents primarily resulted from net investments in bank loans, payments of prior-year bonuses, a decrease in bank deposits, and common stock repurchases and dividends paid on our common stock.

These decreases were partially offset by net income and net maturities of available-for-sale securities during the period.

Cash and cash equivalents (excluding amounts segregated for regulatory purposes and restricted cash) of $9.66 billion at March 31, 2025 decreased $1.3 billion compared with September 30, 2024.

The decrease in cash and cash equivalents primarily resulted from net investments in bank loans, payments of prior-year bonuses, common stock repurchases, dividends paid on our common stock, and the repayment of certain FHLB borrowings during the period.

These decreases were partially offset by net income, net maturities of available-for-sale securities, and an increase in bank deposits during the period.

RAYMOND JAMES FINANCIAL, INC.

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Management’s Discussion and Analysis

Sources of liquidity

Approximately $2.34 billion of our total December 31, 2024 cash and cash equivalents was RJF corporate cash, which included the cash held at the parent company, as well as cash it loaned to RJ&A.

As of December 31, 2024, RJF had loaned $1.60 billion to RJ&A (such amount is included in the RJ&A cash balance in the following table), which RJ&A has invested on behalf of RJF in cash and cash equivalents or otherwise deployed in its normal business activities.

Approximately $2.49 billion of our total March 31, 2025 cash and cash equivalents was RJF corporate cash, which included the cash held at the parent company, as well as cash it loaned to RJ&A.

As of March 31, 2025, RJF had loaned $1.74 billion to RJ&A (such amount is included in the RJ&A cash balance in the following table), which RJ&A has invested on behalf of RJF in cash and cash equivalents or otherwise deployed in its normal business activities.

The following table presents our holdings of cash and cash equivalents.

$ in millions December 31, 2024

$ in millions March 31, 2025

TriState Capital Bank 2,783

1 unchanged sentence

Raymond James Capital Services, LLC 158

Charles Stanley 145

Charles Stanley & Co.

Limited (“Charles Stanley”) 137

Raymond James Trust Company of New Hampshire 131

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Total cash and cash equivalents $ 9,662

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Management’s Discussion and Analysis

RJF maintained depository accounts at Raymond James Bank and TriState Capital Bank totaling $301 million as of December 31, 2024.

The portion of this total that was available on demand without restrictions, which amounted to $256 million as of December 31, 2024, is reflected in the RJF cash balance and excluded from Raymond James Bank’s cash balance in the preceding table.

RJF maintained depository accounts at Raymond James Bank and TriState Capital Bank totaling $291 million as of March 31, 2025.

The portion of this total that was available on demand without restrictions, which amounted to $259 million as of March 31, 2025, is reflected in the RJF cash balance and excluded from Raymond James Bank’s cash balance in the preceding table.

A large portion of the cash and cash equivalents balances at our non-U.S.

subsidiaries, including RJ Ltd.

and Charles Stanley, was held to meet regulatory requirements and was not available for use by the parent as of December 31, 2024.

and Charles Stanley, was held to meet regulatory requirements and was not available for use by the parent as of March 31, 2025.

In addition to the cash balances described, we have various other potential sources of cash available to the parent company from subsidiaries, as described in the following section.

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In addition, covenants in RJ&A’s committed financing arrangements require its net capital to be a minimum of 10% of aggregate debit items.

At December 31, 2024, RJ&A significantly exceeded the minimum regulatory requirements, the covenants in its financing arrangements pertaining to net capital, as well as its internally-targeted net capital tolerances.

At March 31, 2025, RJ&A significantly exceeded the minimum regulatory requirements, the covenants in its financing arrangements pertaining to net capital, as well as its internally-targeted net capital tolerances.

FINRA may impose certain restrictions, such as restricting withdrawals of equity capital, if a member firm were to fall below a certain threshold or fail to meet minimum net capital requirements which may result in RJ&A limiting dividends it would otherwise remit to RJF.

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Although we have liquidity available to us from our other subsidiaries, the available amounts may not be as significant as those previously described and, in certain instances, may be subject to regulatory requirements.

RAYMOND JAMES FINANCIAL, INC.

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Management’s Discussion and Analysis

Borrowings and financing arrangements

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Our ability to borrow under these arrangements is dependent upon compliance with the conditions in our various loan agreements and, in the case of secured borrowings, collateral eligibility requirements.

As of December 31, 2024, RJF and RJ&A had the ability to borrow under our $750 million Credit Facility, a committed unsecured line of credit.

We had no such borrowings outstanding under this facility as of December 31, 2024.

As of March 31, 2025, RJF and RJ&A had the ability to borrow under our $750 million Credit Facility, a committed unsecured line of credit.

We had no such borrowings outstanding under this facility as of March 31, 2025.

See Note 14 of the Notes to Condensed Consolidated Financial Statements of this Form 10-Q for additional information regarding our Credit Facility.

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Our uncommitted secured financing arrangements generally require us to post collateral in excess of the amount borrowed and are generally collateralized by RJ&A-owned securities or by securities that we have received as collateral under reverse repurchase agreements (i.e., securities purchased under agreements to resell).

As of December 31, 2024, we had outstanding borrowings under three uncommitted secured borrowing arrangements out of a total of 12 uncommitted financing arrangements (eight uncommitted secured and four uncommitted unsecured).

However, lenders are generally under no contractual obligation to lend

RAYMOND JAMES FINANCIAL, INC.

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Management’s Discussion and Analysis

to us under uncommitted credit facilities.

As of March 31, 2025, we had outstanding borrowings under one uncommitted secured borrowing arrangements out of a total of 12 uncommitted financing arrangements (eight uncommitted secured and four uncommitted unsecured).

However, lenders are generally under no contractual obligation to lend to us under uncommitted credit facilities.

See Notes 6 and 14 of the Notes to Condensed Consolidated Financial Statements of this Form 10-Q for additional information regarding these borrowings.

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during the quarter End of period

March 31, 2025 $ 273 $ 299 $ 205 $ 268 $ 305 $ 215

December 31, 2024 $ 344 $ 345 $ 307 $ 318 $ 330 $ 267

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March 31, 2024 $ 256 $ 371 $ 371 $ 244 $ 449 $ 449

December 31, 2023 $ 171 $ 193 $ 169 $ 225 $ 252 $ 194

Other borrowings and collateralized financings

We had $950 million in FHLB borrowings outstanding at December 31, 2024, comprised of floating-rate and fixed-rate advances.

We had $750 million in FHLB borrowings outstanding at March 31, 2025, comprised of floating-rate and fixed-rate advances.

The interest rates on our floating-rate advances are based on SOFR.

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

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.

As of December 31, 2024, we had $9.52 billion in immediate credit available from the FHLB based on the collateral pledged.

As of March 31, 2025, we had $9.49 billion in immediate credit available from the FHLB based on the collateral pledged.

With the pledge of incremental collateral, we could further increase credit available to us from the FHLB.

See Notes 6 and 14 of the Notes to Condensed Consolidated Financial Statements of this Form 10-Q for additional information regarding bank loans and available-for-sale securities pledged with the FHLB and for additional information on our FHLB borrowings, including the related maturities and interest rates.

RAYMOND JAMES FINANCIAL, INC.

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Management’s Discussion and Analysis

As member banks, our bank subsidiaries have access to the Federal Reserve’s discount window and may have access to other lending programs that may be established by the Federal Reserve in unusual and exigent circumstances.

As of December 31, 2024, our bank subsidiaries had pledged certain bank loans with the Federal Reserve and had $2.1 billion in immediate credit available from the FRB based on collateral pledged.

With the pledge of incremental collateral, we could further increase credit available to us from the FRB.

As of March 31, 2025, our bank subsidiaries had pledged certain bank loans with the Federal Reserve and had $3.4 billion in immediate credit available from the FRB based on collateral pledged.

Subsequent to March 31, 2025, we have continued to pledge incremental collateral, further increasing our credit available to us from the FRB.

See Note 6 of the Notes to Condensed Consolidated Financial Statements of this Form 10-Q for additional information regarding our assets pledged with the FRB.

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Amounts outstanding under this financing arrangement are collateralized by a portion of our trading inventory and accrue interest based on market rates.

While we had borrowings outstanding as of December 31, 2024, the clearing organization is under no contractual obligation to lend to us under this arrangement.

At December 31, 2024, we had subordinated notes due May 2030 outstanding, with an aggregate principal amount of $98 million.

While we had borrowings outstanding as of March 31, 2025, the clearing organization is under no contractual obligation to lend to us under this arrangement.

At March 31, 2025, we had subordinated notes due May 2030 outstanding, with an aggregate principal amount of $98 million.

See Note 14 of the Notes to Condensed Consolidated Financial Statements of this Form 10-Q and Note 16 of our 2024 Form 10-K for additional information regarding these borrowings.

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Where permitted, we have also loaned securities owned by clients or the firm to broker-dealers and other financial institutions.

We account for each of these types of transactions as collateralized agreements and financings, with the outstanding balance of $461 million as of December 31, 2024 related to the securities loaned included in “Collateralized financings” on our Condensed Consolidated Statements of Financial Condition of this Form 10-Q.

We account for each of these types of transactions as collateralized agreements and financings, with the outstanding balance of $582 million as of March 31, 2025 related to the securities loaned included in “Collateralized financings” on our Condensed Consolidated Statements of Financial Condition of this Form 10-Q.

See Note 6 of the Notes to Condensed Consolidated Financial Statements of this Form 10-Q and Note 2 of our 2024 Form 10-K for more information on our collateralized agreements and financings.

RAYMOND JAMES FINANCIAL, INC.

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Management’s Discussion and Analysis

Senior notes payable

At December 31, 2024, we had aggregate outstanding senior notes payable of $2.04 billion, which, exclusive of any unaccreted premiums or discounts and debt issuance costs, was comprised of $500 million par 4.65% senior notes due April 2030, $800 million par 4.95% senior notes due July 2046, and $750 million par 3.75% senior notes due April 2051.

At March 31, 2025, we had aggregate outstanding senior notes payable of $2.04 billion, which, exclusive of any unaccreted premiums or discounts and debt issuance costs, was comprised of $500 million par 4.65% senior notes due April 2030, $800 million par 4.95% senior notes due July 2046, and $750 million par 3.75% senior notes due April 2051.

See Note 17 of the Notes to Consolidated Financial Statements of our 2024 Form 10-K for additional information on our senior notes payable.

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Date of last rating action

April 2025 March 2025

Our current credit ratings depend upon a number of factors, including industry dynamics, operating and economic environment, operating results, operating margins, earnings trends and volatility, balance sheet composition, liquidity and liquidity management, capital structure, overall risk management, business diversification and market share, and competitive position in the markets in which we operate.

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Any rating downgrades could increase our costs in the event we were to obtain additional financing.

RAYMOND JAMES FINANCIAL, INC.

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Management’s Discussion and Analysis

Should our credit rating be downgraded prior to a public debt offering, it is probable that we would have to offer a higher rate of interest to bond investors.

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Of the company-owned life insurance policies which fund these plans, certain policies could be used as a source of liquidity for the firm.

Those policies against which we could readily borrow had a cash surrender value of $1.20 billion as of December 31, 2024, comprised of $822 million related to employee-directed plans and $382 million related to company-directed plans, and we were able to borrow up to 90%, or $1.08 billion, of the December 31, 2024 total without restriction.

Those policies against which we could readily borrow had a cash surrender value of $1.19 billion as of March 31, 2025, comprised of $815 million related to employee-directed plans and $370 million related to company-directed plans, and we were able to borrow up to 90%, or $1.07 billion, of the March 31, 2025 total without restriction.

To effect any such borrowing, the underlying investments would be converted to money market investments, therefore requiring us to take market risk related to the employee-directed plans.

There were no borrowings outstanding against any of these policies as of December 31, 2024.

RAYMOND JAMES FINANCIAL, INC.

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Management’s Discussion and Analysis

There were no borrowings outstanding against any of these policies as of March 31, 2025.

On May 8, 2024, we filed a “universal” shelf registration statement with the SEC pursuant to which we can issue debt, equity and other capital instruments if and when necessary or perceived by us to be opportune.

Subject to certain conditions, this registration statement will be effective through May 8, 2027.

We purchase our own common stock from time to time in conjunction with a number of activities, which are described in further detail in Note 17 and “Part II - Item 2 - Unregistered sales of equity securities and use of proceeds” of this Form 10-Q.

In periods where our capital and liquidity position are strong, and subject to our Board of Directors’ common stock repurchase authorization limit, we may purchase higher quantities of our shares on a more consistent basis than we have historically as part of our capital deployment strategies.

As part of our ongoing operations, we also enter into contractual arrangements that may require future cash payments, including certificates of deposit, lease obligations and other contractual arrangements, such as for software licenses and various services.

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RJF and many of its subsidiaries are each subject to various regulatory capital requirements.

As of December 31, 2024, all of our active regulated domestic and international subsidiaries had net capital in excess of minimum requirements.

In addition, RJF, Raymond James Bank, and TriState Capital Bank were categorized as “well-capitalized” as of December 31, 2024.

As of March 31, 2025, all of our active regulated domestic and international subsidiaries had net capital in excess of minimum requirements.

In addition, RJF, Raymond James Bank, and TriState Capital Bank were categorized as “well-capitalized” as of March 31, 2025.

The maintenance of certain risk-based and other regulatory capital levels could influence various capital allocation decisions impacting one or more of our businesses.

1 unchanged sentence

See Note 21 of the Notes to Condensed Consolidated Financial Statements and “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and capital resources - Capital structure” of this Form 10-Q for additional information on regulatory capital requirements.

RAYMOND JAMES FINANCIAL, INC.

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Management’s Discussion and Analysis

RJF and certain of its subsidiaries are subject to regular reviews and inspections by regulatory authorities and SROs.

In addition, regulatory agencies and SROs institute investigations from time to time into industry practices, among other things.

For example, in August 2024, the SEC’s Division of Enforcement requested information regarding our practices related to cash sweep programs for investment advisory clients and is reportedly conducting similar reviews at other financial institutions.

For example, beginning in August 2024, the SEC’s Division of Enforcement requested information regarding our practices related to cash sweep programs for investment advisory clients and is reportedly conducting similar reviews at other financial institutions.

The firm has been cooperating with this inquiry.

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All three cases have been consolidated, and we intend to vigorously defend against these lawsuits.

The SEC adopted final rules mandating central clearing of cash, repurchase transactions and reverse repurchase transactions in U.S.

The rules require initial compliance for cash transaction reporting by December 2025, and reporting of repurchase and reverse repurchase transactions by June 2026.

Industry groups have requested extensions to those compliance dates, and we are monitoring the status of this rule.

We are continuing to evaluate the impact that this rule will have on our business practices, financial position, and results of operations.

The SEC adopted final rules mandating central clearing of cash, repurchase, and reverse repurchase transactions in U.S.

In February 2025, the SEC extended the compliance dates for these rules by one year to December 2026 for cash market transactions and to June 2027 for repurchase and reverse repurchase transactions.

We are continuing to monitor the status of this rule while evaluating the impact the rule will have on our business practices, financial position, and results of operations.

In December 2024, the SEC adopted a final rule amending SEC Rules 15c3-3, the Customer Protection rule, and 15c3-1, the Net Capital rule.

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The effective date for the regulation is December 31, 2025.

We are currently evaluating the impact that this rule will have on our business practices, financial position, and results of operations.

We are monitoring the status of this rule while evaluating the impact the rule will have on our business practices, financial position, and results of operations.

CRITICAL ACCOUNTING ESTIMATES

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For a description of our significant accounting policies, see Note 2 of the Notes to Consolidated Financial Statements of our 2024 Form 10-K.

RAYMOND JAMES FINANCIAL, INC.

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Management’s Discussion and Analysis

Due to their nature, estimates involve judgment based upon available information.

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After testing the reasonableness of a variety of economic forecast scenarios, each model is run using a single forecast scenario selected for each model.

Our forecasts incorporate assumptions related to macroeconomic indicators including, but not limited to, U.S.

Our forecasts incorporate assumptions related to macroeconomic indicators as of March 31, 2025 including, but not limited to, U.S.

gross domestic product, equity market indices, unemployment rates, and commercial real estate and residential home price indices.

To demonstrate the sensitivity of credit loss estimates on our bank loan portfolio to macroeconomic forecasts, we compared our modeled estimates under the base case economic scenario used to estimate the allowance for credit losses as of December 31, 2024, to what our estimate would have been under a downside case scenario and an upside case scenario, without considering any offsetting effects in the qualitative component of our allowance for credit losses as of December 31, 2024.

As of December 31, 2024, use of the downside case scenario would have resulted in an increase of approximately $175 million in the quantitative portion of our allowance for credit losses on bank loans, while the use of the upside case scenario would have resulted in a reduction of approximately $35 million in the quantitative portion of our allowance for credit losses on bank loans at December 31, 2024.

RAYMOND JAMES FINANCIAL, INC.

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Management’s Discussion and Analysis

to what our estimate would have been under a downside case scenario and an upside case scenario, without considering any offsetting effects in the qualitative component of our allowance for credit losses as of March 31, 2025.

As of March 31, 2025, use of the downside case scenario would have resulted in an increase of approximately $180 million in the quantitative portion of our allowance for credit losses on bank loans, while the use of the upside case scenario would have resulted in a reduction of approximately $30 million in the quantitative portion of our allowance for credit losses on bank loans at March 31, 2025.

These hypothetical outcomes reflect the relative sensitivity of the modeled portion of our allowance estimate to macroeconomic forecasted scenarios but do not consider any potential impact qualitative adjustments could have on the allowance for credit losses in such environments.

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See Note 2 of the Notes to Consolidated Financial Statements of our 2024 Form 10-K for information regarding our methodologies and assumptions used in estimating the allowance for credit losses.

See Note 7 of the Notes to Condensed Consolidated Financial Statements of this Form 10-Q for information regarding our allowance for credit losses related to bank loans as of December 31, 2024.

See Note 7 of the Notes to Condensed Consolidated Financial Statements of this Form 10-Q for information regarding our allowance for credit losses related to bank loans as of March 31, 2025.

Loss provisions for legal and regulatory matters

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For a description of the significant estimates and judgments associated with establishing such accruals, see the “Contingent liabilities” section of Note 2 of the Notes to Consolidated Financial Statements of our 2024 Form 10-K.

In addition, refer to Note 15 of the Notes to Condensed Consolidated Financial Statements of this Form 10-Q for information regarding legal and regulatory matters contingencies as of December 31, 2024.

RAYMOND JAMES FINANCIAL, INC.

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Management’s Discussion and Analysis

In addition, refer to Note 16 of the Notes to Condensed Consolidated Financial Statements of this Form 10-Q for information regarding legal and regulatory matters contingencies as of March 31, 2025.

ACCOUNTING STANDARDS UPDATE

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The guidance also requires a public entity to disclose, for each reportable segment, an amount for other segment items (those not captured as a significant expense) and the reported measure of a segment’s profit or loss.

This new guidance is effective for annual periods beginning in our fiscal 2025 and interim periods beginning in our fiscal first quarter of 2026 with early adoption permitted.

This new guidance is effective for annual periods beginning in our fiscal 2025 and interim periods beginning in our fiscal first quarter of 2026 with early adoption permitted, although we do not plan to early adopt.

This guidance will be applied on a retrospective basis.

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The guidance also requires an entity to disclose income taxes paid (net of refunds received), disaggregated by federal, state, and foreign taxes, and net amounts paid to an individual jurisdiction when they represent 5% or more of the total income taxes paid.

This new guidance is effective for annual periods beginning in our fiscal 2026 with early adoption permitted.

This new guidance is effective for annual periods beginning in our fiscal 2026 with early adoption permitted, although we do not plan to early adopt.

This guidance will be applied on a prospective basis with retrospective application permitted.

Since this amendment only requires additional disclosures, adoption of this ASU will not have an impact on our financial condition, results of operations, or cash flows.

RAYMOND JAMES FINANCIAL, INC.

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Management’s Discussion and Analysis

In November 2024, the FASB issued amended guidance related to disclosure of disaggregated expenses (ASU 2024-03).

This amendment requires public business entities to provide detailed disclosures in the notes to financial statements disaggregating specific expense categories, including employee compensation, depreciation, and intangible asset amortization, as well as certain other disclosures to provide enhanced transparency into the nature and function of expenses.

This new guidance is effective for annual periods beginning in our fiscal 2028 and interim periods beginning in our fiscal first quarter of 2029 with early adoption permitted.

This new guidance is effective for annual periods beginning in our fiscal 2028 and interim periods beginning in our fiscal first quarter of 2029 with early adoption permitted, although we do not plan to early adopt.

This guidance will be applied on a prospective basis with retrospective application permitted.

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Our legal department provides legal advice and guidance to each of these three lines of risk management.

RAYMOND JAMES FINANCIAL, INC.

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Management’s Discussion and Analysis

Market risk is our risk of loss resulting from the impact of changes in market prices on our trading inventory, derivatives, and investment positions.

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While Market Risk Management maintains ongoing communication with the revenue-generating business units, it is independent of such units.

RAYMOND JAMES FINANCIAL, INC.

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Management’s Discussion and Analysis

Trading activities

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As a result, management complements VaR with sensitivity analysis and stress testing and employs additional controls such as a daily review of trading results, review of aged inventory, independent review of pricing, monitoring of concentrations, and review of issuer ratings.

RAYMOND JAMES FINANCIAL, INC.

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Management’s Discussion and Analysis

To calculate VaR, we use models that incorporate historical simulation.

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As a result, VaR results are more reliable when used as indicators of risk levels and trends within a firm than as a basis for inferring differences in risk-taking across firms.

RAYMOND JAMES FINANCIAL, INC.

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Management’s Discussion and Analysis

The following table sets forth the high, low, period-end and average daily one-day VaR for all of our trading portfolios, including fixed income and equity instruments, and for our derivatives for the periods and dates indicated.

Three months ended December 31, 2024 Period-end VaR Three months ended December 31,

$ in millions High Low December 31,

Six months ended March 31, 2025 Period-end VaR Three months ended March 31, Six months ended March 31,

$ in millions High Low March 31,

2025 September 30,

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Based on these daily “ex ante” versus “ex post” comparisons, we determine whether the number of times that regulatory-defined daily trading losses exceed VaR is consistent with our expectations at a 99% confidence level.

During the three months ended December 31, 2024, our regulatory-defined daily losses in our trading portfolios exceeded our predicted VaR on one occasion.

During the three months ended March 31, 2025, our regulatory-defined daily losses in our trading portfolios did not exceed our predicted VaR.

During the six months ended March 31, 2025, our regulatory-defined daily losses in our trading portfolios exceeded our predicted VaR on one occasion.

Separately, RJF provides additional market risk disclosures to comply with the MRR, including 10-day VaR and 10-day Stressed VaR, which are available on our website at https://www.raymondjames.com/investor-relations/financial-information/filings-and-reports within “Other Reports and Information.”

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See “Item 2 - Management’s Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and capital resources” of this Form 10-Q for additional information.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Management’s Discussion and Analysis

To ensure that we remain within the tolerances established for net interest income, a sensitivity analysis of net interest income to interest rate conditions is estimated under a variety of scenarios.

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Various interest rate scenarios are modeled in order to determine the effect those scenarios may have on net interest income.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Management’s Discussion and Analysis

The following table is an analysis of our banking operations’ estimated net interest income over a 12-month period based on instantaneous shifts in interest rates (expressed in basis points) using our previously described asset/liability model, which assumes a dynamic balance sheet, a weighted-average deposit beta on our interest-bearing deposit accounts without stated maturities of approximately 70% as interest rates rise and approximately 60% as interest rates fall, and that interest rates do not decline below zero.

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-200 $1,664 (9)%

(1) Our 0-basis point scenario was based on interest rates as of December 31, 2024.

(1) Our 0-basis point scenario was based on interest rates as of March 31, 2025.

The preceding table does not include the impacts of an instantaneous change in interest rates on net interest income on assets and liabilities outside of our banking operations or on our RJBDP fees from third-party banks, which are also sensitive to changes in interest rates and are included in “Account and service fees” on our Condensed Consolidated Statements of Income and Comprehensive Income.

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government and government agency-backed securities, changes in fair value are primarily driven by changes in interest rates.

At December 31, 2024, our available-for-sale securities portfolio had a fair value of $7.73 billion with a weighted-average yield of 2.23% and a weighted-average life, after factoring in estimated prepayments, of 4.0 years.

At March 31, 2025, our available-for-sale securities portfolio had a fair value of $7.44 billion with a weighted-average yield of 2.23% and a weighted-average life, after factoring in estimated prepayments, of 3.9 years.

To evaluate the interest rate sensitivity of our available-for-sale securities portfolio we also monitor, among other things, effective duration, defined as the approximate percentage change in price for a 100-basis point change in rates.

As of December 31, 2024, the effective duration of our available-for-sale securities portfolio was approximately 3.49, which means that we would expect the market value of our available-for-sale securities portfolio to increase approximately 3.49% for every 100-basis point decline in interest rates and decline approximately 3.49% for every 100-basis point increase in interest rates.

As of March 31, 2025, the effective duration of our available-for-sale securities portfolio was approximately 3.42, which means that we would expect the market value of our available-for-sale securities portfolio to increase approximately 3.42% for every 100-basis point decline in interest rates and decline approximately 3.42% for every 100-basis point increase in interest rates.

See Note 2 of the Notes to Consolidated Financial Statements of our 2024 Form 10-K and Note 4 of the Notes to Condensed Consolidated Financial Statements of this Form 10-Q for additional information on our available-for-sale securities portfolio.

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These limits set a risk tolerance to changing interest rates and assist in determining strategies for mitigating this risk as EVE approaches these limits.

As of December 31, 2024, our EVE analyses were within approved limits.

As of March 31, 2025, our EVE analyses were within approved limits.

RAYMOND JAMES FINANCIAL, INC.

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Management’s Discussion and Analysis

The following table shows the maturities of our bank loan portfolio at December 31, 2024, including contractual principal repayments.

The following table shows the maturities of our bank loan portfolio at March 31, 2025, including contractual principal repayments.

Maturities are generally determined based upon contractual terms;

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Total loans held for sale and investment $ 19,648 $ 13,025 $ 6,239 $ 9,813 $ 48,725

The following table shows the distribution of the recorded investment of those bank loans that mature in more than one year between fixed and adjustable interest rate loans at December 31, 2024.

The following table shows the distribution of the recorded investment of those bank loans that mature in more than one year between fixed and adjustable interest rate loans at March 31, 2025.

Interest rate type

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Residential mortgage loans (1)

210 9,585 9,795

Tax-exempt loans 1,204 — 1,204

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Total loans held for sale and investment $ 2,782 $ 26,295 $ 29,077

(1) Adjustable rate residential mortgage loans included loans which were still in their fixed-rate period at March 31, 2025

Contractual loan terms for SBL, C&I loans, CRE loans, REIT loans, and residential mortgage loans may include an interest rate floor, cap and/or fixed interest rates for a certain period of time, which would impact the timing of the interest rate reset for the respective loan.

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dollar (“USD”).

For example, our bank loan portfolio includes loans which are denominated in Canadian dollars (“CAD”), totaling $1.09 billion and $1.23 billion at December 31, 2024 and September 30, 2024, respectively, when converted to the USD using the spot rate at that time.

For example, our bank loan portfolio includes loans which are denominated in Canadian dollars (“CAD”), totaling $1.01 billion and $1.23 billion at March 31, 2025 and September 30, 2024, respectively, when converted to the USD using the spot rate at that time.

A majority of such loans are held in a Canadian subsidiary of Raymond James Bank.

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Investments in non-bank foreign subsidiaries

At December 31, 2024, we had foreign exchange risk in our investment in RJ Ltd.

of CAD 461 million and in our investment in Charles Stanley of £289 million, which were not hedged.

At March 31, 2025, we had foreign exchange risk in our investment in RJ Ltd.

of CAD 485 million and in our investment in Raymond James Wealth Management, our U.K.

PCG subsidiary, of £314 million, which were not hedged.

We had other, less significant investments in foreign domiciled subsidiaries, primarily in Europe, which were not hedged;

however, we do not believe we had material foreign exchange risk either individually, or in the aggregate, pertaining to these subsidiaries as of December 31, 2024.

Foreign exchange gains/losses related to our foreign investments are primarily reflected in OCI on our Condensed Consolidated Statements of Income

however, we do not

RAYMOND JAMES FINANCIAL, INC.

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Management’s Discussion and Analysis

and Comprehensive Income.

believe we had material foreign exchange risk either individually, or in the aggregate, pertaining to these subsidiaries as of March 31, 2025.

Foreign exchange gains/losses related to our foreign investments are primarily reflected in OCI on our Condensed Consolidated Statements of Income and Comprehensive Income.

See Note 17 of the Notes to Condensed Consolidated Financial Statements of this Form 10-Q for further information regarding our components of OCI.

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The following table presents net loan (charge-offs)/recoveries and the annualized percentage of net loan (charge-offs)/recoveries to the average outstanding loan balances by loan portfolio segment.

Three months ended December 31,

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

2025 2024 2025 2024

$ in millions Net loan

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amount Annualized

loans Net loan

(charge-off)/recovery

amount Annualized

loans Net loan

(charge-off)/recovery

amount Annualized

C&I loans $ (8) 0.31 % $ (23) 0.89 % $ (12) 0.23 % $ (29) 0.56 %

CRE loans (7) 0.37 % (5) 0.27 % (7) 0.18 % (7) 0.19 %

Total loans held for sale and investment $ (4) 0.03 % $ (8) 0.07 %

Total loans held for investment

$ (15) 0.13 % $ (28) 0.25 % $ (19) 0.08 % $ (36) 0.16 %

The level of nonperforming assets is another indicator of potential future credit losses.

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The following table presents the balance of nonperforming loans, nonperforming assets, and related key credit ratios.

$ in millions December 31, 2024 September 30, 2024

$ in millions March 31, 2025 September 30, 2024

Nonperforming loans (1)

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Nonperforming assets as a % of Bank segment total assets 0.34 % 0.28 %

(1) Nonperforming loans at December 31, 2024 and September 30, 2024 included $72 million and $89 million, respectively, of loans, which were current pursuant to their contractual terms.

RAYMOND JAMES FINANCIAL, INC.

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Management’s Discussion and Analysis

(1) Nonperforming loans at March 31, 2025 and September 30, 2024 included $128 million and $89 million, respectively, of loans, which were current pursuant to their contractual terms.

See the table summarizing nonaccrual loans by portfolio segment in Note 7 of the Notes to Condensed Consolidated Financial Statements of this Form 10-Q for additional information.

Although our nonperforming assets as a percentage of our Bank segment’s assets remained low as of December 31, 2024, any prolonged period of market deterioration could result in an increase in our nonperforming assets, an increase in our allowance for credit losses and/or an increase in net charge-offs in future periods, although the extent would depend on future developments that are highly uncertain.

Although our nonperforming assets as a percentage of our Bank segment’s assets remained low as of March 31, 2025, any prolonged period of market deterioration could result in an increase in our nonperforming assets, an increase in our allowance for credit losses and/or an increase in net charge-offs in future periods, although the extent would depend on future developments that are highly uncertain.

See further explanation of our bank loan portfolio segments, allowance for credit losses, and the credit loss provision in Note 7 of the Notes to Condensed Consolidated Financial Statements of this Form 10-Q and “Management’s Discussion and Analysis - Results of Operations - Bank” of this Form 10-Q and Note 2 of the Notes to Consolidated Financial Statements of our 2024 Form 10-K.

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There are various other factors included in these processes, depending on the loan portfolio.

There were no significant changes to those processes during the three months ended December 31, 2024.

There were no significant changes to those processes during the three months ended March 31, 2025.

See further discussion of our risk monitoring process in “Item 7 - Management’s Discussion and Analysis of Financial Condition and Results of Operations - Risk management - Credit risk - Banking activities” of our 2024 Form 10-K.

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Collateral adjustments, as triggered by our monitoring procedures, are made by the borrower as necessary to ensure our loans are adequately secured, resulting in minimizing our credit risk.

Collateral calls have been minimal relative to our SBL portfolio.

We track and review many factors to monitor credit risk in our residential mortgage loan portfolio.

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$ in millions 30-89 days 90 days or more Total 30-89 days 90 days or more Total

December 31, 2024 $ 5 $ 9 $ 14 0.05 % 0.10 % 0.15 %

March 31, 2025 $ 5 $ 10 $ 15 0.05 % 0.10 % 0.15 %

September 30, 2024 $ 6 $ 8 $ 14 0.07 % 0.08 % 0.15 %

Our December 31, 2024 percentage of over 30 day delinquent residential mortgage loans compares favorably to the national average of 1.84%, as most recently reported by the Fed.

Our March 31, 2025 percentage of over 30 day delinquent residential mortgage loans compares favorably to the national average of 1.94%, as most recently reported by the Fed.

RAYMOND JAMES FINANCIAL, INC.

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The following table details the geographic concentrations (top five states) of our one-to-four family residential mortgage loans.

December 31, 2024

March 31, 2025

Loans outstanding as a % of

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Payments may increase significantly when the interest-only period ends and the loan principal begins to amortize.

At December 31, 2024 and September 30, 2024, these loans totaled $2.94 billion and $2.96 billion, respectively, or approximately 31% of the residential mortgage portfolio at each respective period end.

The weighted-average number of years before the remainder of the loans, which were still in their interest-only period at December 31, 2024, begins amortizing is five years.

At March 31, 2025 and September 30, 2024, these loans totaled $2.97 billion and $2.96 billion, respectively, or approximately 30% and 31% of the residential mortgage portfolio, respectively.

The weighted-average number of years before the remainder of the loans, which were still in their interest-only period at March 31, 2025, begins amortizing is five years.

Corporate and tax-exempt loans

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The following table details the industry concentrations (top five categories) of our corporate bank loans.

December 31, 2024

March 31, 2025

Loans outstanding as a % of

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Subscription lines 5% 2%

The Fed enacted a 50-basis-point decrease in short-term interest rates late in the preceding quarter and two 25-basis-point rate cuts during the current quarter.

Despite lower short-term interest rates, market-wide corporate loan growth has remained muted in our fiscal first quarter of 2025, but we believe we are well-positioned to increase lending as new origination activity increases, which may increase provisions for credit losses in future periods.

We continue to closely monitor economic and other factors that may impact our borrowers and corporate loan portfolio, including the regulatory environment following the recent change in the U.S.

presidential administration, inflation, and interest rates.

Market-wide corporate loan growth has remained muted in our fiscal second quarter of 2025, but we believe we are well-positioned to increase lending as new origination activity increases, which may increase provisions for credit losses in future periods.

We continue to closely monitor economic and other factors that may impact our borrowers and corporate loan portfolio, including the potential impact of any changes in international trade policies on certain corporate borrowers, which could impact our provision for credit losses in future periods.

RAYMOND JAMES FINANCIAL, INC.

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Management’s Discussion and Analysis

Risks related to our CRE loans, specifically, office real estate loans, continue to be impacted by remote work, pressure from the relatively high interest rate environment that persisted throughout most of our fiscal 2024, uncertainty related to tenant lease renewals, and elevated refinancing risk for loans with near-term maturities, among other issues.

As of December 31, 2024, our highest industry concentrations within our CRE portfolio were multi-family, industrial warehouse, and office real estate, and the concentrations of such loans were generally consistent with those for our corporate loan portfolio detailed in the preceding table.

Risks related to our CRE loans, specifically, office real estate loans, continue to be impacted by corporate remote work policies, pressure from the relatively high interest rate environment that persisted throughout most of our fiscal 2024, uncertainty related to tenant lease renewals, and elevated refinancing risk for loans with near-term maturities, among other issues.

As of March 31, 2025, our highest industry concentrations within our CRE portfolio were multi-family, industrial warehouse, and office real estate, and the concentrations of such loans were generally consistent with those for our corporate loan portfolio detailed in the preceding table.

Refer to “Item 7 - Management’s Discussion and Analysis of Financial Condition and Results of Operations - Risk management - Credit risk - Banking activities” of our 2024 Form 10-K for further information on our CRE loans and a discussion of our risk monitoring process for these loans.

There were no significant changes to those processes during the three months ended December 31, 2024.

There were no significant changes to those processes during the six months ended March 31, 2025.

Refer to Note 7 of the Notes to Condensed Consolidated Financial Statements of this Form 10-Q for additional information on our credit metrics related to our CRE loan portfolio.

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These losses can result from, but are not limited to, trade errors, failed transaction settlements, late collateral calls to borrowers and counterparties, or interruptions to our system processing.

We did not incur any significant losses related to such operational challenges during the three months ended December 31, 2024 or 2023.

We did not incur any significant losses related to such operational challenges during the six months ended March 31, 2025 or 2024.

As more fully described in the discussion of our business technology risks included in various risk factors presented in “Item 1A - Risk Factors” and “Item 1C - Cybersecurity” of our 2024 Form 10-K, despite our implementation of protective measures and endeavoring to modify them as circumstances warrant, our computer systems, software and networks may be vulnerable to human error, natural disasters, power loss, cyber-attacks and other information security breaches, and other events that could have an impact on the security and stability of our operations.

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See “Item 7 - Management’s Discussion and Analysis of Financial Condition and Results of Operations - Risk management - Compliance risk” of our 2024 Form 10-K for information on our compliance risks, including how we manage such risks.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES Index

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

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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 2. Management’s Discussion and Analysis