Attached files
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| 8-K - 8-K - RAYMOND JAMES FINANCIAL INC | a8-k_nov18revrec.htm |
November 28, 2018 | ||
STATEMENT OF INCOME REPORTING CHANGES
Effective with the firm's first fiscal quarter ended December 31, 2018, Raymond James Financial, Inc. has reclassified certain revenues among income statement line items and renamed certain line items. The Company believes that these reclassifications will better align with the performance obligations identified in connection with our adoption of Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606) (effective beginning October 1, 2018) and will make our financial statements more comparable with those of other financial services companies. These reclassifications do not represent a restatement of previously-issued consolidated financial statements, but rather a reclassification among income statement line items, and they do not affect the Company’s reported total revenues or the total revenues in any of our segments for any of the previously reported periods. The changes primarily relate to the following:
• | Report all revenue related to investment advisory, asset management and related administrative services in a single income statement line item entitled “Asset management and related administrative fees.” Portions of these revenues had previously been included in “Securities commissions and fees,” as fee-based commissions within our Private Client Group segment, and “Investment advisory and related administrative fees." Certain revenues related to trust services within our Asset Management segment, which were previously included in "Account and service fees,” were also reclassified. |
• | Report all underwriting revenue in the “Investment banking” income statement line item. A portion of these revenues had previously been included in “Securities commissions and fees” as new issue sales credits within our Private Client Group segment and institutional equity and fixed income commissions within our Capital Markets segment. |
• | Report all non-interest revenue associated with transactions conducted on a principal basis in a single income statement line item entitled “Principal transactions.” Portions of these revenues had previously been included in “Securities commissions and fees,” as fixed income and, to a lesser extent, equities commissions in our Capital Markets and Private Client Group segments, and “Net trading profit.” |
• | Report all non-interest revenues related to our tax credit fund business in “Other” revenues. A portion of such revenues had previously been included in “Investment banking,” as tax credit fund syndication fees in our Capital Markets segment, and “Investment advisory and related administrative fees.” |
Prior period results, which are presented below, have been conformed to the current presentation. In addition, as a result of our adoption of (ASU) No. 2014-09, we will change the presentation of certain costs from a net presentation within revenues to a gross presentation, particularly those related to merger & acquisitions advisory and underwriting transactions and certain administrative costs related to our multi-bank sweep program. The income statement gross up as a result of these changes, which will be made prospectively beginning with our 2019 fiscal year, will depend on activity after adoption but will have no impact on our net earnings. The information included in this Form 8-K should be read in conjunction with the Company’s 2018 Annual Report on Form 10-K (“2018 10-K”). This Form 8-K does not reflect events occurring after the Company filed its 2018 10-K and does not modify or update the disclosures therein in any way, other than to reflect the above-referenced reclassifications.
The Company has made an Excel version of the tables below available in the Other Reports section of the Investor Relations Financial Reports pages of its website.
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Raymond James Financial, Inc. Net Revenues by Quarter (Unaudited) | ||||||||||||||||||||
Three months ended | Year ended | |||||||||||||||||||
$ in millions | September 30, 2018 | June 30, 2018 | March 31, 2018 | December 31, 2017 | September 30, 2018 | |||||||||||||||
Revenues: | ||||||||||||||||||||
Asset management and related administrative fees | $ | 832 | $ | 790 | $ | 768 | $ | 729 | $ | 3,119 | ||||||||||
Brokerage revenues: | ||||||||||||||||||||
Securities commissions | 390 | 395 | 425 | 416 | 1,626 | |||||||||||||||
Principal transactions | 74 | 73 | 85 | 97 | 329 | |||||||||||||||
Total brokerage revenues | 464 | 468 | 510 | 513 | 1,955 | |||||||||||||||
Account and service fees | 178 | 187 | 177 | 171 | 713 | |||||||||||||||
Investment banking | 152 | 145 | 116 | 88 | 501 | |||||||||||||||
Interest income | 292 | 271 | 249 | 232 | 1,044 | |||||||||||||||
Other | 44 | 30 | 37 | 33 | 144 | |||||||||||||||
Total revenues | 1,962 | 1,891 | 1,857 | 1,766 | 7,476 | |||||||||||||||
Interest expense | (63 | ) | (54 | ) | (45 | ) | (40 | ) | (202 | ) | ||||||||||
Net revenues | $ | 1,899 | $ | 1,837 | $ | 1,812 | $ | 1,726 | $ | 7,274 | ||||||||||
Three months ended | Year ended | |||||||||||||||||||
$ in millions | September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2017 | |||||||||||||||
Revenues: | ||||||||||||||||||||
Asset management and related administrative fees | $ | 683 | $ | 628 | $ | 586 | $ | 574 | $ | 2,471 | ||||||||||
Brokerage revenues: | ||||||||||||||||||||
Securities commissions | 383 | 397 | 402 | 396 | 1,578 | |||||||||||||||
Principal transactions | 99 | 106 | 95 | 118 | 418 | |||||||||||||||
Total brokerage revenues | 482 | 503 | 497 | 514 | 1,996 | |||||||||||||||
Account and service fees | 167 | 160 | 149 | 136 | 612 | |||||||||||||||
Investment banking | 133 | 137 | 135 | 86 | 491 | |||||||||||||||
Interest income | 223 | 204 | 193 | 182 | 802 | |||||||||||||||
Other | 45 | 31 | 41 | 36 | 153 | |||||||||||||||
Total revenues | 1,733 | 1,663 | 1,601 | 1,528 | 6,525 | |||||||||||||||
Interest expense | (43 | ) | (39 | ) | (37 | ) | (35 | ) | (154 | ) | ||||||||||
Net revenues | $ | 1,690 | $ | 1,624 | $ | 1,564 | $ | 1,493 | $ | 6,371 | ||||||||||
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Raymond James Financial, Inc. Net Revenues by Segment Year ended September 30, 2018 (Unaudited) | ||||||||||||||||||||||||||||
Segment | Year Ended September 30, 2018 | |||||||||||||||||||||||||||
$ in millions | Private Client Group | Capital Markets | Asset Management | RJ Bank | Other | Intersegment eliminations | Total | |||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||
Asset management and related administrative fees | $ | 2,517 | $ | 8 | $ | 610 | $ | — | $ | 1 | $ | (17 | ) | $ | 3,119 | |||||||||||||
Brokerage revenues: | ||||||||||||||||||||||||||||
Securities commissions | ||||||||||||||||||||||||||||
Mutual and other fund products | 703 | 7 | 12 | — | — | (5 | ) | 717 | ||||||||||||||||||||
Insurance and annuity products | 414 | — | — | — | — | — | 414 | |||||||||||||||||||||
Equities and fixed income products | 352 | 145 | — | — | — | (2 | ) | 495 | ||||||||||||||||||||
Sub-total securities commissions | 1,469 | 152 | 12 | — | — | (7 | ) | 1,626 | ||||||||||||||||||||
Principal transactions | 80 | 249 | — | 1 | — | (1 | ) | 329 | ||||||||||||||||||||
Total brokerage revenues | 1,549 | 401 | 12 | 1 | — | (8 | ) | 1,955 | ||||||||||||||||||||
Account and service fees: | ||||||||||||||||||||||||||||
Mutual fund and annuity service fees | 332 | — | 2 | — | — | (9 | ) | 325 | ||||||||||||||||||||
RJBDP fees | 354 | — | 3 | — | — | (92 | ) | 265 | ||||||||||||||||||||
Client account and other fees | 111 | 5 | 23 | — | — | (16 | ) | 123 | ||||||||||||||||||||
Sub-total account and service fees | 797 | 5 | 28 | — | — | (117 | ) | 713 | ||||||||||||||||||||
Investment banking: | ||||||||||||||||||||||||||||
Equity underwriting | 35 | 93 | — | — | — | — | 128 | |||||||||||||||||||||
Mergers & acquisition and advisory | — | 297 | — | — | — | — | 297 | |||||||||||||||||||||
Fixed income investment banking | — | 76 | — | — | — | — | 76 | |||||||||||||||||||||
Sub-total investment banking | 35 | 466 | — | — | — | — | 501 | |||||||||||||||||||||
Other: | ||||||||||||||||||||||||||||
Tax credit fund revenues | — | 79 | — | — | — | — | 79 | |||||||||||||||||||||
Other | 30 | 1 | 2 | 22 | 17 | (7 | ) | 65 | ||||||||||||||||||||
Sub-total other revenues | 30 | 80 | 2 | 22 | 17 | (7 | ) | 144 | ||||||||||||||||||||
Total non-interest revenues | 4,928 | 960 | 652 | 23 | 18 | (149 | ) | 6,432 | ||||||||||||||||||||
Interest income | 193 | 32 | 2 | 793 | 42 | (18 | ) | 1,044 | ||||||||||||||||||||
Total revenues | 5,121 | 992 | 654 | 816 | 60 | (167 | ) | 7,476 | ||||||||||||||||||||
Interest expense | (28 | ) | (28 | ) | — | (89 | ) | (75 | ) | 18 | (202 | ) | ||||||||||||||||
Net revenues | $ | 5,093 | $ | 964 | $ | 654 | $ | 727 | $ | (15 | ) | $ | (149 | ) | $ | 7,274 | ||||||||||||
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Raymond James Financial, Inc. Net Revenues by Segment Year ended September 30, 2017 (Unaudited) | ||||||||||||||||||||||||||||
Segment | Year Ended September 30, 2017 | |||||||||||||||||||||||||||
$ in millions | Private Client Group | Capital Markets | Asset Management | RJ Bank | Other | Intersegment eliminations | Total | |||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||
Asset management and related administrative fees | $ | 2,022 | $ | 9 | $ | 453 | $ | — | $ | 1 | $ | (14 | ) | $ | 2,471 | |||||||||||||
Brokerage revenues: | ||||||||||||||||||||||||||||
Securities commissions | ||||||||||||||||||||||||||||
Mutual and other fund products | 698 | 9 | 12 | — | — | (5 | ) | 714 | ||||||||||||||||||||
Insurance and annuity products | 385 | — | — | — | — | — | 385 | |||||||||||||||||||||
Equities and fixed income products | 331 | 152 | — | — | — | (4 | ) | 479 | ||||||||||||||||||||
Sub-total securities commissions | 1,414 | 161 | 12 | — | — | (9 | ) | 1,578 | ||||||||||||||||||||
Principal transactions | 93 | 323 | — | 2 | — | — | 418 | |||||||||||||||||||||
Total brokerage revenues | 1,507 | 484 | 12 | 2 | — | (9 | ) | 1,996 | ||||||||||||||||||||
Account and service fees: | ||||||||||||||||||||||||||||
Mutual fund and annuity service fees | 291 | — | 2 | — | — | (8 | ) | 285 | ||||||||||||||||||||
RJBDP fees | 270 | — | 2 | — | — | (68 | ) | 204 | ||||||||||||||||||||
Client account and other fees | 116 | 5 | 16 | — | — | (14 | ) | 123 | ||||||||||||||||||||
Sub-total account and service fees | 677 | 5 | 20 | — | — | (90 | ) | 612 | ||||||||||||||||||||
Investment banking: | ||||||||||||||||||||||||||||
Equity underwriting | 62 | 117 | — | — | — | — | 179 | |||||||||||||||||||||
Mergers & acquisition and advisory | — | 228 | — | — | — | — | 228 | |||||||||||||||||||||
Fixed income investment banking | — | 84 | — | — | — | — | 84 | |||||||||||||||||||||
Sub-total investment banking | 62 | 429 | — | — | — | — | 491 | |||||||||||||||||||||
Other: | ||||||||||||||||||||||||||||
Tax credit fund revenues | — | 79 | — | — | — | — | 79 | |||||||||||||||||||||
Other | 17 | 2 | 2 | 16 | 39 | (2 | ) | 74 | ||||||||||||||||||||
Sub-total other revenues | 17 | 81 | 2 | 16 | 39 | (2 | ) | 153 | ||||||||||||||||||||
Total non-interest revenues | 4,285 | 1,008 | 487 | 18 | 40 | (115 | ) | 5,723 | ||||||||||||||||||||
Interest income | 153 | 27 | 1 | 610 | 25 | (14 | ) | 802 | ||||||||||||||||||||
Total revenues | 4,438 | 1,035 | 488 | 628 | 65 | (129 | ) | 6,525 | ||||||||||||||||||||
Interest expense | (16 | ) | (21 | ) | — | (35 | ) | (95 | ) | 13 | (154 | ) | ||||||||||||||||
Net revenues | $ | 4,422 | $ | 1,014 | $ | 488 | $ | 593 | $ | (30 | ) | $ | (116 | ) | $ | 6,371 | ||||||||||||
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