What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2025-08-06 compared with 2025-05-07 · 269 added, 263 removed, 1385 unchanged (28% of the section changed)

21 unchanged sentences

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.

In addition, words such as “believes,” “expects,” “anticipates,” “intends,” “plans,” “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.

Forward-looking statements are not guarantees, and they involve risks, uncertainties and assumptions.

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

We caution investors not to rely unduly on any forward-looking statements and urge you to carefully consider the risks described in our filings with the Securities and Exchange Commission (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 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, 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.

13 unchanged sentences

Summary results of operations

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

Three months ended June 30, Nine months ended June 30,

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

13 unchanged sentences

$ 2.18 $ 2.39 (9) % $ 7.55 $ 7.10 6 %

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

Three months ended June 30, Nine months ended June 30,

Other selected financial highlights 2025 2024 2025 2024

15 unchanged sentences

22.6 % 23.6 % 22.8 % 22.1 %

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%.

Quarter ended June 30, 2025 compared with the quarter ended June 30, 2024

For our fiscal third quarter of 2025, we generated net revenues of $3.40 billion, an increase of 5% compared with the prior-year quarter, while pre-tax income of $563 million decreased 13% compared with the prior-year quarter.

Our net income available to common shareholders was $435 million and our earnings per diluted share were $2.12, reflecting a decrease from the prior-year quarter levels of 11% and 8%, respectively.

Our annualized return on common equity (“ROCE”) for the quarter was 14.3%, compared with 17.8% for the prior-year quarter, and our annualized return on tangible common equity (“ROTCE”) was 16.7% (1) , compared with 21.2% (1) 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.

The results for the quarter were adversely impacted by a $58 million increase in expense associated with the settlement of a legal matter related to bond underwritings for a specific issuer sold to institutional investors between 2013 and 2015.

Excluding the impact of $14 million of expenses, net of their tax effect, 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 $449 million (1) for the three months ended June 30, 2025, a decrease of 12% compared with adjusted net income available to common shareholders for the prior-year quarter.

Our adjusted earnings per diluted share were $2.18 (1) , a decrease of 9% compared with the prior-year quarter.

Adjusted annualized ROCE for the quarter was 14.8% (1) and adjusted annualized ROTCE was 17.2% (1) compared with adjusted annualized ROCE of 18.4% (1) and adjusted annualized ROTCE of 21.9% (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.

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.

3 unchanged sentences

Management’s Discussion and Analysis

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.

Investment banking revenues increased 16% compared with the prior-year quarter primarily due to an increase in mergers & acquisition and advisory revenues, as well as increased underwriting revenues, although uncertain market conditions for transaction closings adversely impacted both periods.

Brokerage revenues also increased compared with the prior-year quarter.

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 and lower average RJBDP balances swept to third-party banks compared with the prior-year quarter, which more than offset a favorable impact from growth in average interest-earning assets.

Compensation, commissions and benefits expense increased 5%, 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 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.

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.

Our compensation ratio, or the ratio of compensation, commissions and benefits expense to net revenues, was 64.8%, and excluding acquisition-related compensation expenses, our adjusted compensation ratio was 64.5% (1) , both remaining relatively unchanged compared with the prior-year quarter.

Non-compensation expenses increased 28%, primarily due to higher provisions for legal and regulatory matters as the current quarter included the aforementioned $58 million expense increase related to the settlement of a legal matter.

Non-compensation expenses also increased due to a bank loan provision for credit losses of $15 million for the current quarter compared with a benefit of $10 million for the prior-year quarter, 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 22.6% for our fiscal third quarter of 2025, a decrease compared with the 23.6% effective income tax rate for the prior-year quarter, primarily due to higher non-taxable valuation gains on our corporate-owned life insurance policies recognized in the current quarter compared with the prior-year quarter.

As of June 30, 2025, our tier 1 leverage ratio was 13.1% and total capital ratio was 24.2% both well above regulatory capital requirements.

We also continue to have substantial liquidity with $2.35 billion of RJF corporate cash (2) as of June 30, 2025.

During the three months ended June 30, 2025, we repurchased 3.3 million shares of our common stock for $451 million at an average price of $137 per share under the Board of Directors’ common stock repurchase authorization, leaving $749 million available under the authorization as of June 30, 2025.

We believe our capital and liquidity levels allow us to invest in growth across our businesses and continue to be opportunistic in our deployment of capital.

(1) These are non-GAAP financial measures.

5 unchanged sentences

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%.

Nine months ended June 30, 2025 compared with the nine months ended June 30, 2024

For the nine months ended June 30, 2025, we generated net revenues of $10.34 billion, an increase of 10% compared with the prior-year period, and pre-tax income of $1.98 billion, an increase of 5%.

Our net income available to common shareholders of $1.53 billion was 4% higher than the prior-year period and our earnings per diluted share were $7.35, reflecting a 7% 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 annualized ROCE was 17.1%, down from 18.2% for the prior-year period, and our annualized ROTCE was 19.9% (1) , compared with 21.8% (1) for the prior-year period.

Excluding the impact of $43 million of expenses, net of their tax effect, related to acquisitions completed in prior years, adjusted net income available to common shareholders for the nine months ended June 30, 2025 was $1.57 billion (1) , an increase of 4% compared with adjusted net income available to common shareholders for the prior-year period.

Our adjusted earnings per diluted share were $7.55 (1) , an increase of 6% compared with the prior-year period.

2 unchanged sentences

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.

Investment banking revenues also increased significantly compared with the prior-year period primarily due to more favorable market conditions at the beginning of our fiscal 2025.

Brokerage revenues also increased compared with the prior-year period largely due to an increase in client activity in both our PCG and Capital Markets segments.

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 and, to a lesser extent, lower RJBDP balances swept to third-party banks, which more than offset a favorable impact from growth in average interest-earning assets.

Compensation, commissions and benefits expense increased 10%, primarily due to an increase in compensable revenues, an increase in compensation costs to support our growth, and annual salary increases.

Our compensation ratio was 64.6%, and excluding acquisition-related compensation expenses, our adjusted compensation ratio was 64.4% (1) , both remaining relatively unchanged compared with the prior-year period.

Non-compensation expenses increased 18%, primarily due to higher legal and regulatory matters expenses as the current-year period included a net provision expense for legal and regulatory matters, including a $58 million expense increase associated with the aforementioned settlement of a legal matter while the prior-year period reflected a net reserve release.

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, higher investment sub-advisory fees resulting from growth in assets under management in sub-advised programs, and higher business development expenses.

Our effective income tax rate was 22.8% for the nine months ended June 30, 2025, an increase from 22.1% for the prior-year period, primarily due to lower non-taxable valuation gains on our corporate-owned life insurance policies recognized in the current-year period compared with the prior-year period.

During the nine months ended June 30, 2025, we repurchased 5.3 million shares of our common stock for $751 million at an average price of $141 per share under the Board of Directors’ common stock repurchase authorization.

(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.

13 unchanged sentences

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

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

Three months ended June 30, Nine months ended June 30,

$ in millions

23 unchanged sentences

Management’s Discussion and Analysis

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

Three months ended June 30, Nine months ended June 30,

$ in millions, except per share amounts

38 unchanged sentences

Management’s Discussion and Analysis

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

Three months ended June 30, Nine months ended June 30,

$ in millions 2025 2024 2025 2024

41 unchanged sentences

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.

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 four, 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 four.

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.

3 unchanged sentences

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 fiscal 2025 to end the period at a range of 4.25% to 4.50%.

The Fed funds target rate began our fiscal 2024 at a range of 5.25% to 5.50% where it 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 fiscal 2025 to end the current-year 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.

15 unchanged sentences

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.

Decreases in short-term interest rates generally 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.

Rates paid to clients on their cash balances are generally impacted by the level of short-term interest rates, as well as competitive industry dynamics and the demand for client cash.

6 unchanged sentences

Net interest income and RJBDP fees from third-party banks

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

Three months ended June 30, Nine months ended June 30,

$ in millions 2025 2024 % change 2025 2024 % change

5 unchanged sentences

$ 656 $ 672 (2) % $ 1,980 $ 2,059 (4) %

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.

Quarter ended June 30, 2025 compared with the quarter ended June 30, 2024

Combined net interest income and RJBDP fees from third-party banks was $656 million and $672 million for the three months ended June 30, 2025 and 2024, respectively.

The 2% decline compared with the prior-year quarter was primarily due to lower short-term interest rates and lower average RJBDP balances swept to third-party banks, which more than offset favorable impacts from growth in average interest-earning assets and a slight increase in net interest margin.

Nine months ended June 30, 2025 compared with the nine months ended June 30, 2024

Combined net interest income and RJBDP fees from third-party banks was $1.98 billion and $2.06 billion for the nine months ended June 30, 2025 and 2024, respectively.

The 4% decline compared with the prior-year period was primarily due to lower short-term interest rates and, to a lesser extent, lower average RJBDP balances swept to third-party banks, which more than offset a favorable impact from growth in average interest-earning assets.

RAYMOND JAMES FINANCIAL, INC.

2 unchanged sentences

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

Three months ended March 31,

Quarter ended June 30, 2025 compared with the quarter ended June 30, 2024

Three months ended June 30,

$ in millions Average

63 unchanged sentences

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

Three months ended March 31,

Three months ended June 30,

2025 compared to 2024

47 unchanged sentences

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,

Nine months ended June 30, 2025 compared with the nine months ended June 30, 2024

Nine months ended June 30,

$ in millions Average

63 unchanged sentences

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

Six months ended March 31,

Nine months ended June 30,

2025 compared to 2024

50 unchanged sentences

Operating results

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

Three months ended June 30, Nine months ended June 30,

$ in millions 2025 2024 % change 2025 2024 % change

53 unchanged sentences

PCG client asset balances

$ in billions March 31,

$ in billions June 30,

2025 March 31,

2025 December 31,

1 unchanged sentence

2024 June 30,

2024 March 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 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.

As of June 30, 2025, March 31, 2025, and June 30, 2024 PCG AUA included assets associated with firms affiliated with us through our RIA and custody services (“RCS”) division of $201.6 billion, $185.6 billion, and $167.2 billion, respectively, of which $173.9 billion, $158.5 billion, and $140.6 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 over time 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 March 31, Six months ended March 31,

Three months ended June 30, Nine months ended June 30,

$ in millions 2025 2024 2025 2024

5 unchanged sentences

(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 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.

PCG AUA and PCG assets in fee-based accounts as of June 30, 2025 increased 7% and 8%, respectively, compared with March 31, 2025, and increased 11% and 15%, respectively, compared with June 30, 2024 due to market-driven appreciation and net new assets, reflecting the favorable impact of our advisor recruiting and retention.

Fee-based accounts within our PCG segment are comprised of a wide array of products and programs that we offer our clients.

12 unchanged sentences

Clients’ domestic cash sweep balances and ESP balances

$ in millions March 31,

$ in millions June 30,

2025 March 31,

2025 December 31,

1 unchanged sentence

2024 June 30,

2024 March 31,

Bank segment $ 26,635 $ 25,783 $ 23,946 $ 23,978 $ 23,371

7 unchanged sentences

$ 55,180 $ 57,759 $ 59,736 $ 57,875 $ 56,448

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

Three months ended June 30, Nine months ended June 30,

2025 2024 2025 2024

10 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 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.

The average yield on RJBDP - third-party banks for the three and nine months ended June 30, 2025 decreased from the corresponding prior-year periods largely as a result of decreases in the Fed’s short-term benchmark interest rate.

For the nine-month period, the decrease also reflected 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 decreased 3% compared with December 31, 2024, primarily due to a decrease in RJBDP balances and, to a lesser extent, ESP deposits.

Total clients’ domestic cash sweep and ESP balances decreased 4% compared with March 31, 2025, primarily due to seasonal declines related to client tax payments as well as quarterly asset management fee billings.

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

Quarter ended June 30, 2025 compared with the quarter ended June 30, 2024

Net revenues of $2.49 billion increased 3%, while pre-tax income of $411 million decreased 7%.

1 unchanged sentence

Brokerage revenues increased $11 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.

Account and service fees decreased $30 million, or 6%, primarily due to a decrease in RJBDP fees.

RJBDP fees paid to PCG from third-party banks and our Bank segment decreased despite an increase in average RJBDP balances, primarily driven by a reduction in the average RJBDP third-party bank yield.

RJBDP fees from third-party banks decreased by a greater amount than RJBDP fees from our Bank segment as average balances swept to third-party banks declined due to a higher allocation of balances to our Bank 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 $87 million, or 5%, 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%.

Non-compensation expenses increased $15 million, or 6%, primarily due to higher communications and information processing expenses, largely due to investments in technology to support our growth.

Nine months ended June 30, 2025 compared with the nine months ended June 30, 2024

Net revenues of $7.52 billion increased 8%, while pre-tax income of $1.3 billion decreased 2%.

Asset management and related administrative fees increased $557 million, or 15%, 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.

1 unchanged sentence

Account and service fees decreased $85 million, or 5%, primarily due to a decrease in RJBDP fees.

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.

RJBDP fees paid to PCG from third-party banks and our Bank segment decreased primarily due to a decrease in the average RJBDP third-party bank yield.

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.

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

Compensation-related expenses increased $484 million, or 10%, 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.

Non-compensation expenses increased $75 million, or 11%, primarily due to higher communications and information processing expenses, largely due to investments in technology to support our growth, and higher expenses related to legal and regulatory matters as the prior-year period reflected a net reserve release which did not reoccur in the current-year period.

RAYMOND JAMES FINANCIAL, INC.

4 unchanged sentences

Operating results

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

Three months ended June 30, Nine months ended June 30,

$ in millions 2025 2024 % change 2025 2024 % change

36 unchanged sentences

Total non-interest expenses 435 344 26 % 1,201 1,017 18 %

Pre-tax income

$ 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.

Pre-tax income/(loss)

$ (54) $ (14) (286) % $ 56 $ (28) NM

Quarter ended June 30, 2025 compared with the quarter ended June 30, 2024

Net revenues of $381 million increased 15%, while the segment pre-tax loss was $54 million, compared with a pre-tax loss of $14 million for the prior-year quarter.

Investment banking revenues increased $30 million, or 17%, due to increases in mergers & acquisition and advisory revenues, debt underwriting revenues and, to a lesser extent, equity underwriting revenues.

Brokerage revenues increased $17 million, or 14%, due to higher client activity in fixed income and equity products.

Compensation-related expenses increased $19 million, or 8%, 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.

Non-compensation expenses increased $72 million, or 71%, primarily due to the aforementioned $58 million reserve increase in the current quarter associated with the settlement of a legal matter, as well as higher business development expenses and communications and information processing expenses largely to support our growth.

RAYMOND JAMES FINANCIAL, INC.

1 unchanged sentence

Management’s Discussion and Analysis

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.

Nine months ended June 30, 2025 compared with the nine months ended June 30, 2024

Net revenues of $1.26 billion increased 27% and pre-tax income was $56 million, compared with a pre-tax loss of $28 million for the prior-year period.

Investment banking revenues increased $213 million, or 41%, primarily due to more favorable market conditions and larger transactions during the current-year period.

Brokerage revenues increased $42 million, or 11%, primarily due to an increase in both fixed income and equity securities.

Compensation-related expenses increased $104 million, or 14%, primarily due to the increase in revenues.

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.

Non-compensation expenses increased $80 million, or 27%, primarily due to the aforementioned $58 million reserve increase in the current quarter, as well as 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 March 31, Six months ended March 31,

Three months ended June 30, Nine months ended June 30,

$ in millions 2025 2024 % change 2025 2024 % change

34 unchanged sentences

Financial assets under management

$ in billions March 31,

$ in billions June 30,

2025 March 31,

2025 December 31,

1 unchanged sentence

2024 June 30,

2024 March 31,

$ 198.0 $ 183.3 $ 181.9 $ 182.7 $ 170.5

9 unchanged sentences

Activity (including activity in assets managed for affiliated entities)

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

Three months ended June 30, Nine months ended June 30,

$ in billions 2025 2024 2025 2024

1 unchanged sentence

Raymond James Investment Management:

Net inflows/(outflows)

— (1.5) (0.6) (3.7)

3 unchanged sentences

AMS - net inflows 2.1 4.2 6.9 8.4

Net market appreciation/(depreciation) in asset values

Net market appreciation in asset values

16.6 0.2 11.4 30.4

1 unchanged sentence

(1) The transfer was effective as of October 1, 2024.

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.

1 unchanged sentence

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 March 31, 2025

As of June 30, 2025

$ in billions AUM Average fee rate

7 unchanged sentences

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

$ in billions March 31,

$ in billions June 30,

2025 March 31,

2025 December 31,

1 unchanged sentence

2024 June 30,

2024 March 31,

Total assets $ 547.8 $ 505.3 $ 509.8 $ 506.2 $ 474.7

2 unchanged sentences

(including those managed for affiliated entities).

$ in billions March 31,

$ in billions June 30,

2025 March 31,

2025 December 31,

1 unchanged sentence

2024 June 30,

2024 March 31,

Total assets $ 11.2 $ 10.6 $ 10.7 $ 10.6 $ 10.0

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

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Management’s Discussion and Analysis

Quarter ended June 30, 2025 compared with the quarter ended June 30, 2024

Net revenues of $291 million increased 10% and pre-tax income of $125 million increased 12%.

1 unchanged sentence

Non-compensation expenses increased $15 million, or 15%, 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

Nine months ended June 30, 2025 compared with the nine months ended June 30, 2024

Net revenues of $874 million increased 16% and pre-tax income of $371 million increased 22%.

Asset management and related administrative fees increased $120 million, or 17%, 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.

AND SUBSIDIARIES

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.

Non-compensation expenses increased $54 million, or 19%, 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.

RESULTS OF OPERATIONS – BANK

1 unchanged sentence

Operating results

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

Three months ended June 30, Nine months ended June 30,

$ in millions 2025 2024 % change 2025 2024 % change

9 unchanged sentences

Bank loan provision for credit losses

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

15 (10) NM 31 23 35 %

RJBDP fees to PCG

4 unchanged sentences

Pre-tax income $ 123 $ 115 7 % $ 358 $ 282 27 %

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 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 $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).

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.

Quarter ended June 30, 2025 compared with the quarter ended June 30, 2024

Net revenues of $458 million increased 10% and pre-tax income of $123 million increased 7%.

Net interest income increased $34 million, or 8%, primarily due to the impact of higher average interest-earning assets, particularly securities-based loans, partially offset by the impact of the decrease in short-term interest rates.

The Bank segment net interest margin increased to 2.74% from 2.64% for the prior-year quarter.

The bank loan provision for credit losses was $15 million for the current quarter compared with a benefit of $10 million for the prior-year quarter.

The bank loan provision for credit losses for the current quarter primarily reflected the impacts of a weaker economic outlook for the C&I loan portfolio, loan downgrades, and specific reserves.

The bank loan benefit for credit losses for the prior-year quarter primarily reflected the positive impacts of net loan repayments, sales, and improved loan grades on the C&I loan portfolio, and an improvement in forecasted home prices on the residential mortgage portfolio, partially offset by the impact of loan downgrades in our CRE portfolio.

Non-compensation expenses, excluding the bank loan provision for credit losses, increased $5 million, or 2%, primarily due to higher expenses related to our growth, partially offset by a decrease of $5 million, or 3%, in RJBDP fees paid to PCG.

Nine months ended June 30, 2025 compared with the nine months ended June 30, 2024

Net revenues of $1.32 billion increased 3% and pre-tax income of $358 million increased 27%.

Net interest income increased $28 million, or 2%, primarily due to the impact of higher average interest-earning assets, particularly securities-based loans, partially offset by the impact of lower short-term interest rates.

The Bank segment net interest margin decreased slightly to 2.67% from 2.68% for the prior-year period.

The bank loan provision for credit losses was $31 million for the current-year period, compared with $23 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.

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

The bank loan provision for credit losses for the prior-year period primarily reflected the impacts of loan growth, 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, loan repayments, and loan sales.

Non-compensation expenses, excluding the bank loan provision for credit losses, decreased $52 million, or 6%, primarily due to a decrease of $64 million, or 10%, in RJBDP fees paid to PCG, partially offset by higher expenses related to our growth.

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

3 unchanged sentences

RESULTS OF OPERATIONS – OTHER

This segment includes interest income on certain corporate cash balances, our private equity investments, which predominantly consist of investments in third-party funds, certain other corporate investing activity, and certain corporate overhead costs of RJF that are not allocated to other segments, including the interest costs on our public debt, certain provisions for legal and regulatory matters, and certain acquisition-related expenses.

This segment includes interest income on certain RJF corporate cash balances, our private equity investments, which predominantly consist of investments in third-party funds, certain other corporate investing activity, and certain corporate overhead costs of RJF that are not allocated to other segments, including the interest costs on our public debt, certain provisions for legal and regulatory matters, and certain acquisition-related expenses.

For an overview of our Other segment operations, refer to the information presented in “Item 1 - Business” and “Item 7 - Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our 2024 Form 10-K.

Operating results

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

Three months ended June 30, Nine months ended June 30,

$ in millions 2025 2024 % change 2025 2024 % change

1 unchanged sentence

$ 34 $ 47 (28) % $ 102 $ 140 (27) %

All other 4 (2) NM 7 — NM

All other — 6 (100) % 7 6 17 %

Total revenues 34 53 (36) % 109 146 (25) %

3 unchanged sentences

Compensation and benefits 36 29 24 % 112 78 44 %

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

All other 15 9 67 % 28 (7) NM

Total non-interest expenses 51 38 34 % 140 71 97 %

Pre-tax income/(loss)

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

$ (42) $ (10) (320) % $ (106) $ — NM

(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.

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.

Quarter ended June 30, 2025 compared with the quarter ended June 30, 2024

Pre-tax loss was $42 million, compared with a pre-tax loss of $10 million for the prior-year quarter.

Net revenues decreased $19 million due to a decrease in interest income which reflected the impact of a decrease in short-term interest rates and, to a lesser extent, lower gains from certain investments in the current-year period.

Non-interest expenses increased $13 million, primarily due to higher compensation costs, professional fees, and communications and information processing expenses in the current-year period.

Nine months ended June 30, 2025 compared with the nine months ended June 30, 2024

Pre-tax loss was $106 million, compared with breakeven results for the prior-year period.

Net revenues decreased $37 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.

Non-interest expenses increased $69 million, or 97%, as the prior-year period reflected a net reserve release related to legal and regulatory matters which did not reoccur in the current-year period, as well as higher compensation costs, professional fees, and communications and information processing expenses in the current-year period partially due to investments in our growth.

RAYMOND JAMES FINANCIAL, INC.

4 unchanged sentences

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.

Total assets of $84.82 billion as of June 30, 2025 were $1.8 billion, or 2%, higher than our total assets as of September 30, 2024.

Banks loans, net increased $3.8 billion, primarily due to continued growth in securities-based loans.

Assets segregated for regulatory purposes and restricted cash balances increased $420 million primarily due to an increase in client cash balances in our broker-dealer subsidiaries.

Brokerage client receivables, net, collateralized agreements, and loans to financial advisors, net also increased $206 million, $192 million, and $174 million, respectively.

These increases were partially offset by a $1.8 billion decrease in cash and cash equivalents primarily due to net investments in bank loans, common stock repurchases, and dividends paid on our common stock during the period, partially offset by net income, an increase in bank deposits, and net maturities of available-for-sale securities during the period.

The net maturities of available-for-sale securities also contributed to a $1.1 billion decrease in our total assets.

As of June 30, 2025, our total liabilities of $72.55 billion were $1.2 billion, or 2%, higher than our total liabilities as of September 30, 2024, largely due to a $1.2 billion increase in bank deposits.

Brokerage client payables also increased $390 million due to an increase in client cash balances.

These increases were partially offset by a $200 million decrease in other borrowings due to the maturity and repayment of certain FHLB borrowings.

LIQUIDITY AND CAPITAL RESOURCES

1 unchanged sentence

The primary goal of our liquidity management activities is to ensure adequate funding and liquidity to conduct our business over a range of economic and market environments, including times of broader industry or market liquidity stress events.

In times of market stress or uncertainty, we generally maintain higher levels of liquidity, including increased cash levels in our Bank segment, to ensure we have adequate funding to support our business and meet our clients’ needs.

In times of market stress or uncertainty, we generally maintain higher levels of liquidity to ensure we have adequate funding to support our business and meet our clients’ needs.

We seek to manage capital levels to support execution of our business strategy, provide financial strength to our subsidiaries, and maintain sustained access to the capital markets, while at the same time meeting our regulatory capital requirements and conservative internal management targets.

Liquidity and capital resources are provided primarily through our business operations and financing activities.

Our business operations generate substantially all of their own liquidity and funding needs.

Our businesses generate substantially all of their own liquidity and funding needs.

We have a contingency funding plan which would guide our actions if one or more of our businesses were to experience disruptions from normal funding and liquidity sources.

28 unchanged sentences

Information about our common equity is included in the Condensed Consolidated Statements of Financial Condition, the Condensed Consolidated Statements of Changes in Shareholders’ Equity, and Note 17 of this Form 10-Q.

Under regulatory capital rules applicable to us as a bank holding company that has made an election to be a financial holding company, we are required to maintain minimum leverage ratios (defined as tier 1 capital divided by adjusted average assets), as well as minimum ratios of tier 1 capital, CET1, and total capital to risk-weighted assets.

These capital ratios incorporate quantitative measures of our assets, liabilities, and certain off-balance sheet items as calculated under the regulatory capital rules and are subject to qualitative judgments by the regulators about components, risk-weightings, and other factors.

4 unchanged sentences

Accordingly, we account for our available-for-sale securities at fair value at each reporting date, with unrealized gains and losses, net of tax, included in AOCI.

Current Basel III rules permit us to make an election to exclude most components of AOCI when calculating CET1, tier 1 capital, and total capital.

Current Basel III rules permit us to make an election to exclude most components of AOCI when calculating CET1 capital, tier 1 capital, and total capital.

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.

4 unchanged sentences

$ in millions

March 31, 2025 September 30, 2024

June 30, 2025 September 30, 2024

Common equity tier 1 capital/Tier 1 capital

18 unchanged sentences

$ in millions

March 31, 2025 September 30, 2024

June 30, 2025 September 30, 2024

Credit risk-weighted assets:

23 unchanged sentences

government and its agencies.

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.

Cash and cash equivalents (excluding amounts segregated for regulatory purposes and restricted cash) of $9.20 billion at June 30, 2025 decreased $1.80 billion compared with September 30, 2024.

The decrease in cash and cash equivalents primarily resulted from net investments in bank loans, common stock repurchases, dividends paid on our common stock, the repayment of certain FHLB borrowings, and net loans provided to financial advisors 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.

3 unchanged sentences

Sources of liquidity

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.

Approximately $2.35 billion of our total June 30, 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 June 30, 2025, RJF had loaned $1.56 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 March 31, 2025

$ in millions June 30, 2025

TriState Capital Bank 2,795

1 unchanged sentence

Raymond James Capital Services, LLC 144

Charles Stanley & Co.

Limited (“Charles Stanley”) 137

Raymond James Wealth Management Limited (1)

Raymond James Trust Company of New Hampshire 133

3 unchanged sentences

Total cash and cash equivalents $ 9,195

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.

(1) Effective July 1, 2025, Charles Stanley & Co.

Limited changed its legal name to Raymond James Wealth Management Limited (“RJWM”).

RJF maintained depository accounts at Raymond James Bank and TriState Capital Bank totaling $299 million as of June 30, 2025.

The portion of this total that was available on demand without restrictions, which amounted to $267 million as of June 30, 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 March 31, 2025.

and RJWM, was held to meet regulatory requirements and was not available for use by the parent as of June 30, 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.

6 unchanged sentences

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 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.

At June 30, 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.

2 unchanged sentences

Dividends paid to RJF from our bank subsidiaries may be limited to the extent that capital is needed to support balance sheet growth or as part of our liquidity and capital management activities.

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.

1 unchanged sentence

Management’s Discussion and Analysis

If necessary, RJF can also access additional liquidity, largely without regulatory preapproval, from certain other subsidiaries that generally do not serve as regular sources of dividend distributions to the parent.

Borrowings and financing arrangements

3 unchanged sentences

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 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.

As of June 30, 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 June 30, 2025.

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

1 unchanged sentence

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 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).

As of June 30, 2025, we had outstanding borrowings under two uncommitted secured borrowing arrangements out of a total of 13 uncommitted financing arrangements (eight uncommitted secured and five uncommitted unsecured).

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

13 unchanged sentences

during the quarter End of period

June 30, 2025 $ 273 $ 315 $ 228 $ 211 $ 210 $ 210

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

2 unchanged sentences

June 30, 2024 $ 407 $ 374 $ 110 $ 349 $ 311 $ 181

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

Other borrowings and collateralized financings

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

We had $750 million in FHLB borrowings outstanding at June 30, 2025, comprised of floating-rate and fixed-rate advances.

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

1 unchanged sentence

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

As of June 30, 2025, we had $9.38 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.

4 unchanged sentences

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 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.

As of June 30, 2025, our bank subsidiaries had pledged certain bank loans with the Federal Reserve and had $7.2 billion in immediate credit available from the FRB based on collateral pledged.

Subsequent to June 30, 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.

2 unchanged sentences

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 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.

While we had borrowings outstanding as of June 30, 2025, the clearing organization is under no contractual obligation to lend to us under this arrangement.

At June 30, 2025, we had subordinated notes due May 2030 outstanding, with an aggregate principal amount of $98 million.

In July 2025, we notified holders of the subordinated notes of our intent to redeem all such notes on August 15, 2025 (the “Redemption Date”), pursuant to the applicable indenture provisions.

The subordinated notes will be redeemed at 100% of their principal amount, plus accrued and unpaid interest to, but excluding, the Redemption Date for a total of $100 million.

We have the ability to utilize our cash on hand to fund the redemption.

The redemption of the subordinated notes will not have a material impact on results for our fiscal fourth quarter of 2025.

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.

1 unchanged sentence

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 $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.

We account for each of these types of transactions as collateralized agreements and financings, with the outstanding balance of $655 million as of June 30, 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.

Senior notes payable

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.

At June 30, 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.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Management’s Discussion and Analysis

Credit ratings

16 unchanged sentences

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

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

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.

6 unchanged sentences

Other sources and uses of liquidity

We have company-owned life insurance policies which are utilized to fund certain non-qualified deferred compensation plans and other employee benefit plans.

We have corporate-owned life insurance policies which are utilized to fund certain non-qualified deferred compensation plans and other employee benefit plans.

Certain of our non-qualified deferred compensation plans and other employee benefit plans are employee-directed (i.e., the participant chooses investment portfolio benchmarks) while others are company-directed.

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 $1.19 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.

Of the corporate-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 $1.28 billion as of June 30, 2025, comprised of $888 million related to employee-directed plans and $392 million related to company-directed plans, and we were able to borrow up to 90%, or $1.15 billion, of the June 30, 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 March 31, 2025.

There were no borrowings outstanding against any of these policies as of June 30, 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.

2 unchanged sentences

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.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Management’s Discussion and Analysis

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.

4 unchanged sentences

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

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.

As of June 30, 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 June 30, 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.

AND SUBSIDIARIES

Management’s Discussion and Analysis

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

3 unchanged sentences

In addition, in August and December 2024, a total of three putative class action lawsuits were filed in federal district court alleging, among other things, that the firm breached its fiduciary duties or agreements with regard to rates paid to clients in our cash sweep programs.

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

All three cases were subsequently consolidated, but on July 24, 2025, the plaintiff in one of the three lawsuits voluntarily dismissed all of their claims without prejudice.

We intend to vigorously defend against the claims asserted by the remaining named plaintiffs.

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.

We are actively working to update our business practices to align with the new requirements and do not expect the rule to have a material impact on our financial position.

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.

These amendments will require large clearing/carrying broker-dealers, including RJ&A, to compute customer and Proprietary Account of Broker-dealer reserve requirements and make any required reserve account deposits daily rather than the current weekly requirement.

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

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.

In June 2025, the SEC extended the compliance date for this rule by six months to June 30, 2026.

We are prepared to comply with the rule as of its effective date and do not expect it to have a material impact on our statement of financial position.

On July 4, 2025, the One Big Beautiful Bill Act was signed into law, enacting significant changes to the U.S.

Among its many provisions, those most likely to have an impact on our firm include the restoration of accelerated depreciation provisions (i.e., bonus depreciation), immediate expensing for domestic research and development costs (reversing prior amortization requirements), modifications to certain U.S.

international tax provisions enacted under the 2017 Tax Cuts and Jobs Act, a new limitation on charitable contributions whereby deductions will only be permitted for amounts exceeding 1% of taxable income, and the eventual phaseout of certain renewable energy tax credit programs.

The changes to renewable energy programs do not impact tax credits applicable to our existing renewable energy equity investments.

The effective dates of these provisions vary, and we are currently evaluating the impact these changes will have on our consolidated financial statements, including the potential effects on our effective tax rate, deferred tax assets and liabilities, and related disclosures.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Management’s Discussion and Analysis

CRITICAL ACCOUNTING ESTIMATES

18 unchanged sentences

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 as of March 31, 2025 including, but not limited to, U.S.

Our forecasts incorporate assumptions related to macroeconomic indicators as of June 30, 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.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

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.

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 June 30, 2025, 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 June 30, 2025.

As of June 30, 2025, use of the downside case scenario would have resulted in an increase of approximately $185 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 June 30, 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.

6 unchanged sentences

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 March 31, 2025.

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 June 30, 2025.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Management’s Discussion and Analysis

Loss provisions for legal and regulatory matters

1 unchanged sentence

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 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.

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 June 30, 2025.

ACCOUNTING STANDARDS UPDATE

11 unchanged sentences

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.

AND SUBSIDIARIES

Management’s Discussion and Analysis

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

15 unchanged sentences

The second line of risk management tests and monitors the effectiveness of controls, as deemed necessary, and escalates risks when appropriate to senior management and the Board of Directors.

The third line of risk management, Internal Audit, independently reviews activities conducted by the previous lines of risk management to assess their management and mitigation of risk, providing additional assurance to the Board of Directors and senior management, with a view toward enhancing our oversight, management, and mitigation of risk.

The third line of risk

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Management’s Discussion and Analysis

management, Internal Audit, independently reviews activities conducted by the previous lines of risk management to assess their management and mitigation of risk, providing additional assurance to the Board of Directors and senior management, with a view toward enhancing our oversight, management, and mitigation of risk.

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

13 unchanged sentences

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

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Management’s Discussion and Analysis

Trading activities

19 unchanged sentences

and extended periods of one-directional markets potentially distort risks within the portfolio.

In addition, should markets become more volatile, actual trading losses may exceed VaR results presented on a single day and might accumulate over a longer time horizon.

In addition, should markets become more volatile, actual trading losses may exceed VaR results presented on a single day and might accumulate

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Management’s Discussion and Analysis

over a longer time horizon.

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.

9 unchanged sentences

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.

AND SUBSIDIARIES

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.

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,

Nine months ended June 30, 2025 Period-end VaR Three months ended June 30, Nine months ended June 30,

$ in millions High Low June 30,

2025 September 30,

4 unchanged sentences

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 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.

During the three and nine months ended June 30, 2025, our regulatory-defined daily losses in our trading portfolios exceeded our predicted VaR on two and three occasions, respectively, primarily due to heightened market volatility in early April 2025 driven by economic uncertainties surrounding the potential impacts of changes in international trade policy.

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.”

10 unchanged sentences

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.

4 unchanged sentences

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.

13 unchanged sentences

-200 $1,718 (10)%

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

(1) Our 0-basis point scenario was based on interest rates as of June 30, 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.

5 unchanged sentences

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

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.

At June 30, 2025, our available-for-sale securities portfolio had a fair value of $7.17 billion with a weighted-average yield of 2.24% 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 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.

As of June 30, 2025, the effective duration of our available-for-sale securities portfolio was approximately 3.50, which means that we would expect the market value of our available-for-sale securities portfolio to increase approximately 3.50% for every 100-basis point decline in interest rates and decline approximately 3.50% 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.

3 unchanged sentences

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

As of June 30, 2025, our EVE analyses were within approved limits.

RAYMOND JAMES FINANCIAL, INC.

1 unchanged sentence

Management’s Discussion and Analysis

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

The following table shows the maturities of our bank loan portfolio at June 30, 2025, including contractual principal repayments.

Maturities are generally determined based upon contractual terms;

12 unchanged sentences

Total loans held for sale and investment $ 20,809 $ 13,231 $ 6,220 $ 10,045 $ 50,305

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.

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 June 30, 2025.

Interest rate type

10 unchanged sentences

Total loans held for sale and investment $ 2,863 $ 26,633 $ 29,496

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

(1) Adjustable rate residential mortgage loans included loans which were still in their fixed-rate period at June 30, 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.

2 unchanged sentences

dollar (“USD”).

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.

For example, our bank loan portfolio includes loans which are denominated in Canadian dollars (“CAD”), totaling $1.04 billion and $1.23 billion at June 30, 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.

4 unchanged sentences

Investments in non-bank foreign subsidiaries

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.

At June 30, 2025, we had foreign exchange risk in our investment in RJ Ltd.

of CAD 474 million, and in our investment in 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

however, we do not believe we had material foreign exchange risk

RAYMOND JAMES FINANCIAL, INC.

1 unchanged sentence

Management’s Discussion and Analysis

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

either individually, or in the aggregate, pertaining to these subsidiaries as of June 30, 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.

55 unchanged sentences

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 March 31, Six months ended March 31,

Three months ended June 30, Nine months ended June 30,

2025 2024 2025 2024

13 unchanged sentences

CRE loans — — % (1) 0.05 % (7) 0.12 % (8) 0.14 %

Residential mortgage loans — — % 1 0.04 % — — % 1 0.09 %

Total loans held for investment

$ (3) 0.02 % $ (6) 0.05 % $ (22) 0.06 % $ (42) 0.13 %

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Management’s Discussion and Analysis

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

2 unchanged sentences

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

$ in millions March 31, 2025 September 30, 2024

$ in millions June 30, 2025 September 30, 2024

Nonperforming loans (1)

3 unchanged sentences

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

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

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.

(1) Nonperforming loans at June 30, 2025 and September 30, 2024 included $127 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 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.

Although our nonperforming assets as a percentage of our Bank segment’s assets remained low as of June 30, 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.

4 unchanged sentences

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 March 31, 2025.

There were no significant changes to those processes during the three months ended June 30, 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.

6 unchanged sentences

See Note 7 of the Notes to the Condensed Consolidated Financial Statements of this Form 10-Q for additional information.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Management’s Discussion and Analysis

The following table presents a summary of delinquent residential mortgage loans, the vast majority of which are first mortgage loans, which are comprised of loans which are two or more payments past due as well as loans in the process of foreclosure.

1 unchanged sentence

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

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

June 30, 2025 $ 3 $ 10 $ 13 0.03 % 0.10 % 0.13 %

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

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.

AND SUBSIDIARIES

Management’s Discussion and Analysis

Our June 30, 2025 percentage of over 30 day delinquent residential mortgage loans compares favorably to the national average of 1.91%, as most recently reported by the Fed.

Credit risk is also managed by diversifying the residential mortgage portfolio.

1 unchanged sentence

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

March 31, 2025

June 30, 2025

Loans outstanding as a % of

8 unchanged sentences

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

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.

At June 30, 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 June 30, 2025, begins amortizing is five years.

Corporate and tax-exempt loans

We closely monitor economic and other factors that may impact our borrowers and corporate loan portfolio which could impact our provision for credit losses in future periods.

Credit risk in our corporate and tax-exempt loan portfolios is monitored on an individual loan basis for trends in borrower operating performance, payment history, credit ratings, collateral performance, loan covenant compliance, municipality demographics and other factors including industry performance and concentrations, geographic concentrations, and total relationship exposure.

3 unchanged sentences

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

March 31, 2025

June 30, 2025

Loans outstanding as a % of

6 unchanged sentences

Subscription lines 5% 2%

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.

2 unchanged sentences

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.

As of June 30, 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 six months ended March 31, 2025.

There were no significant changes to those processes during the nine months ended June 30, 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.

6 unchanged sentences

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 six months ended March 31, 2025 or 2024.

We did not incur any significant losses related to such operational challenges during the nine months ended June 30, 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.

4 unchanged sentences

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

1 unchanged sentence

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