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Raymond James Financial Annual Report, Year Ended Sep 30, 2011

Filing Date
Filed November 23, 2011
Period End
September 30, 2011
Security
RJF
In the record · 2016–202610-K1010-Q338-K266

RJF filed 10 annual reports (10-K), 33 quarterly reports (10-Q) and 266 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · May ’17May ’17
  2. Leadership change8-K · Dec ’19Dec ’19
  3. Leadership change8-K · Dec ’21Dec ’21
  4. FY2025 annual report10-K · Nov ’25Nov ’25

01—Abstract

Summary

Summary of the 10-K filed November 23, 2011. Cited figures are marked; the original filing is the authoritative source.

Raymond James Financial, Inc. (RJF) reported record fiscal 2011 results for the year ended September 30, 2011.

Net revenues rose $417 milliona, or 14%, to a record $3.3 billion, and net income attributable to RJF increased $50 million, or 22%, to $278 million. Non-interest expenses increased $323 million, or 13%, to $2.9 billion, driven mainly by higher variable compensation and a $41 million pre-tax loss on auction rate securities (ARS) repurchased, partially offset by a $47 million, or 58%, decrease in the bank loan loss provision. Excluding the ARS loss, net income would have been $303 million, a 33% increase (a non-GAAP measure).

Results were driven by the Private Client Group (pre-tax income up $58 millionb, or 36%), RJ Bank (pre-tax income up $61 million, or 54%, on a lower loan loss provision) and Asset Management (pre-tax income up $19 million, or 41%). Capital Markets pre-tax income fell $6 million, or 7%, as fixed income trading and commissions weakened. The effective tax rate rose to 39.7% from 36.9%.

Management stated that market conditions in October and November 2011 would lead to a more difficult December 2011 quarter. Balance sheet activity included the April 2011 sale of $250 millionc of 4.25% senior notes due 2016, the acquisition of Howe Barnes Hoefer & Arnett, and the settlement of the ARS matter, under which $245 million par value of ARS was purchased from clients.

Total assets were $18.0 billiond and shareholders' equity was $2.59 billion at September 30, 2011. The filing also notes pending applications for RJ Bank to convert to a national bank charter and for RJF to become a bank holding company, with approval anticipated before calendar year-end.

02—Key points

Key Highlights

  1. Record net revenues of $3.3 billion, up $417 million, or 14%, from fiscal 2010.
  2. Record net income of $278 million, up $50 million, or 22%; excluding the $41 million pre-tax ARS repurchase loss, net income would have been $303 million (non-GAAP).
  3. Private Client Group pre-tax income rose $58 million, or 36%, with total client assets under administration of $256 billion.
  4. RJ Bank pre-tax income rose $61 million, or 54%, as the provision for loan losses fell $47 million, or 58%, to $34 million.
  5. Effective tax rate increased to 39.7% from 36.9%.
  6. Diluted earnings per share were $2.19, compared with $1.83 in fiscal 2010; book value per share was $20.99.
  7. Management anticipates a more difficult December 2011 quarter given October and November 2011 market conditions.

03—One dollar

04—Financials

Financial Highlights

Figures from 10-KFY2011filed November 23, 2011
Revenue$3.40BNet Income$278.35M8.2% Net MarginEPS (Diluted)$2.19Total Assets$18.01BCash & Equivalents$2.44BFree Cash Flow$1.52B

Financial Statements

FY2011 against FY2010

Line itemFY2011FY2010Change
Revenue$3.40B$2.98B+14.1%
Net Income$278.35M$228.28M+21.9%
EPS (Basic)$2.20$1.83+20.2%
EPS (Diluted)$2.19$1.83+19.7%
Shares Outstanding (Basic)122.45M119.33M+2.6%
Shares Outstanding (Diluted)122.84M119.59M+2.7%

05—Questions

Frequently Asked Questions

  1. What drove the increase in Raymond James's fiscal 2011 earnings?

    Net revenues rose 14% to a record $3.3 billion, led by the Private Client Group, where securities commissions and fees increased $232 million, or 15%, and advisor productivity reached record levels. RJ Bank's earnings also improved sharply because the loan loss provision fell to $34 million from $80 million.

  2. How much did the auction rate securities settlement cost the company?

    The company recorded a pre-tax loss of $41 million on ARS repurchased under the settlement with the SEC and other regulators. It purchased $245 million par value of ARS from current or former clients, and $16 million of those securities were redeemed at par by their issuers before September 30, 2011.

  3. What did the company say about the outlook?

    Management said market conditions in October and November 2011 would lead to a more difficult December 2011 quarter. Asset Management fees were also expected to be hurt in the first quarter of fiscal 2012 because the fourth-quarter market decline lowers the beginning-of-quarter asset values on which those fees are computed.

  4. What regulatory changes affect the company's bank subsidiary?

    RJ Bank is a federally chartered savings bank, and RJF became subject to Federal Reserve oversight on July 21, 2011, under the Dodd-Frank Act. RJ Bank's application to convert to a national bank is pending, and RJF has re-filed to become a bank holding company, with approval anticipated before calendar year-end 2011.

06—Continue

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