☒
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
|
|
THE SECURITIES EXCHANGE ACT OF 1934
|
☐
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
|
|
THE SECURITIES EXCHANGE ACT OF 1934
|
For the transition period from
|
|
to
|
|
Florida
|
|
59-1517485
|
(State or other jurisdiction of incorporation or organization)
|
|
(I.R.S. Employer Identification No.)
|
|
|
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
Common Stock, $.01 par value
|
RJF
|
New York Stock Exchange
|
Large accelerated filer
|
x
|
Accelerated filer
|
☐
|
Non-accelerated filer
|
☐
|
Smaller reporting company
|
☐
|
|
|
Emerging growth company
|
☐
|
$ in millions, except per share amounts
|
|
June 30, 2019
|
|
September 30, 2018
|
||||
Assets:
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
3,596
|
|
|
$
|
3,500
|
|
Cash segregated pursuant to regulations
|
|
2,356
|
|
|
2,441
|
|
||
Securities purchased under agreements to resell
|
|
411
|
|
|
373
|
|
||
Securities borrowed
|
|
306
|
|
|
255
|
|
||
Financial instruments, at fair value:
|
|
|
|
|
||||
Trading instruments (includes $557 and $465 pledged as collateral)
|
|
803
|
|
|
702
|
|
||
Available-for-sale securities (includes $16 and $20 pledged as collateral)
|
|
2,960
|
|
|
2,696
|
|
||
Derivative assets
|
|
304
|
|
|
180
|
|
||
Private equity investments
|
|
146
|
|
|
147
|
|
||
Other investments (includes $24 and $25 pledged as collateral)
|
|
253
|
|
|
202
|
|
||
Brokerage client receivables, net
|
|
2,613
|
|
|
3,343
|
|
||
Receivables from brokers, dealers and clearing organizations
|
|
274
|
|
|
257
|
|
||
Other receivables
|
|
631
|
|
|
592
|
|
||
Bank loans, net
|
|
20,691
|
|
|
19,518
|
|
||
Loans to financial advisors, net
|
|
936
|
|
|
925
|
|
||
Investments in real estate partnerships held by consolidated variable interest entities
|
|
69
|
|
|
107
|
|
||
Property and equipment, net
|
|
518
|
|
|
486
|
|
||
Deferred income taxes, net
|
|
210
|
|
|
203
|
|
||
Goodwill and identifiable intangible assets, net
|
|
635
|
|
|
639
|
|
||
Other assets
|
|
965
|
|
|
847
|
|
||
Total assets
|
|
$
|
38,677
|
|
|
$
|
37,413
|
|
|
|
|
|
|
||||
Liabilities and equity:
|
|
|
|
|
||||
Bank deposits
|
|
$
|
22,166
|
|
|
$
|
19,942
|
|
Securities sold under agreements to repurchase
|
|
165
|
|
|
186
|
|
||
Securities loaned
|
|
429
|
|
|
423
|
|
||
Financial instruments sold but not yet purchased, at fair value:
|
|
|
|
|
||||
Trading instruments
|
|
287
|
|
|
235
|
|
||
Derivative liabilities
|
|
275
|
|
|
247
|
|
||
Brokerage client payables
|
|
4,343
|
|
|
5,625
|
|
||
Payables to brokers, dealers and clearing organizations
|
|
174
|
|
|
206
|
|
||
Accrued compensation, commissions and benefits
|
|
1,093
|
|
|
1,189
|
|
||
Other payables
|
|
686
|
|
|
459
|
|
||
Other borrowings
|
|
945
|
|
|
899
|
|
||
Senior notes payable
|
|
1,550
|
|
|
1,550
|
|
||
Total liabilities
|
|
32,113
|
|
|
30,961
|
|
||
Commitments and contingencies (see Note 14)
|
|
|
|
|
|
|
||
Equity
|
|
|
|
|
||||
Preferred stock; $.10 par value; 10,000,000 shares authorized; -0- shares issued and outstanding
|
|
—
|
|
|
—
|
|
||
Common stock; $.01 par value; 350,000,000 shares authorized; 158,316,880 and 156,363,615 shares issued as of June 30, 2019 and September 30, 2018, respectively, and 139,666,546 and 145,642,437 shares outstanding as of June 30, 2019 and September 30, 2018, respectively
|
|
2
|
|
|
2
|
|
||
Additional paid-in capital
|
|
1,915
|
|
|
1,808
|
|
||
Retained earnings
|
|
5,659
|
|
|
5,032
|
|
||
Treasury stock, at cost; 18,650,334 and 10,693,026 common shares as of June 30, 2019 and September 30, 2018, respectively
|
|
(1,060
|
)
|
|
(447
|
)
|
||
Accumulated other comprehensive loss
|
|
(14
|
)
|
|
(27
|
)
|
||
Total equity attributable to Raymond James Financial, Inc.
|
|
6,502
|
|
|
6,368
|
|
||
Noncontrolling interests
|
|
62
|
|
|
84
|
|
||
Total equity
|
|
6,564
|
|
|
6,452
|
|
||
Total liabilities and equity
|
|
$
|
38,677
|
|
|
$
|
37,413
|
|
|
|
Three months ended June 30,
|
|
Nine months ended June 30,
|
||||||||||||
in millions, except per share amounts
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
|
||||||||
Asset management and related administrative fees
|
|
$
|
879
|
|
|
$
|
790
|
|
|
$
|
2,527
|
|
|
$
|
2,287
|
|
Brokerage revenues:
|
|
|
|
|
|
|
|
|
||||||||
Securities commissions
|
|
358
|
|
|
395
|
|
|
1,095
|
|
|
1,236
|
|
||||
Principal transactions
|
|
93
|
|
|
73
|
|
|
262
|
|
|
255
|
|
||||
Total brokerage revenues
|
|
451
|
|
|
468
|
|
|
1,357
|
|
|
1,491
|
|
||||
Account and service fees
|
|
183
|
|
|
187
|
|
|
559
|
|
|
535
|
|
||||
Investment banking
|
|
139
|
|
|
145
|
|
|
439
|
|
|
349
|
|
||||
Interest income
|
|
321
|
|
|
271
|
|
|
961
|
|
|
752
|
|
||||
Other
|
|
27
|
|
|
30
|
|
|
95
|
|
|
100
|
|
||||
Total revenues
|
|
2,000
|
|
|
1,891
|
|
|
5,938
|
|
|
5,514
|
|
||||
Interest expense
|
|
(73
|
)
|
|
(54
|
)
|
|
(221
|
)
|
|
(139
|
)
|
||||
Net revenues
|
|
1,927
|
|
|
1,837
|
|
|
5,717
|
|
|
5,375
|
|
||||
Non-interest expenses:
|
|
|
|
|
|
|
|
|
|
|
||||||
Compensation, commissions and benefits
|
|
1,277
|
|
|
1,208
|
|
|
3,767
|
|
|
3,557
|
|
||||
Communications and information processing
|
|
92
|
|
|
89
|
|
|
278
|
|
|
262
|
|
||||
Occupancy and equipment costs
|
|
55
|
|
|
49
|
|
|
159
|
|
|
149
|
|
||||
Business development
|
|
57
|
|
|
57
|
|
|
141
|
|
|
134
|
|
||||
Investment sub-advisory fees
|
|
24
|
|
|
23
|
|
|
70
|
|
|
68
|
|
||||
Professional fees
|
|
22
|
|
|
20
|
|
|
61
|
|
|
48
|
|
||||
Bank loan loss provision/(benefit)
|
|
(5
|
)
|
|
5
|
|
|
16
|
|
|
14
|
|
||||
Acquisition and disposition-related expenses
|
|
—
|
|
|
—
|
|
|
15
|
|
|
4
|
|
||||
Other
|
|
65
|
|
|
68
|
|
|
205
|
|
|
178
|
|
||||
Total non-interest expenses
|
|
1,587
|
|
|
1,519
|
|
|
4,712
|
|
|
4,414
|
|
||||
Income including noncontrolling interests and before provision for income taxes
|
|
340
|
|
|
318
|
|
|
1,005
|
|
|
961
|
|
||||
Provision for income taxes
|
|
83
|
|
|
86
|
|
|
252
|
|
|
367
|
|
||||
Net income including noncontrolling interests
|
|
257
|
|
|
232
|
|
|
753
|
|
|
594
|
|
||||
Net loss attributable to noncontrolling interests
|
|
(2
|
)
|
|
—
|
|
|
(16
|
)
|
|
—
|
|
||||
Net income attributable to Raymond James Financial, Inc.
|
|
$
|
259
|
|
|
$
|
232
|
|
|
$
|
769
|
|
|
$
|
594
|
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings per common share – basic
|
|
$
|
1.84
|
|
|
$
|
1.59
|
|
|
$
|
5.42
|
|
|
$
|
4.08
|
|
Earnings per common share – diluted
|
|
$
|
1.80
|
|
|
$
|
1.55
|
|
|
$
|
5.30
|
|
|
$
|
3.99
|
|
Weighted-average common shares outstanding – basic
|
|
140.4
|
|
|
145.6
|
|
|
141.8
|
|
|
145.2
|
|
||||
Weighted-average common and common equivalent shares outstanding – diluted
|
|
143.6
|
|
|
149.4
|
|
|
144.8
|
|
|
148.8
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Net income attributable to Raymond James Financial, Inc.
|
|
$
|
259
|
|
|
$
|
232
|
|
|
$
|
769
|
|
|
$
|
594
|
|
Other comprehensive income/(loss), net of tax:
|
|
|
|
|
|
|
|
|
|
|
||||||
Available-for-sale securities
|
|
24
|
|
|
(4
|
)
|
|
65
|
|
|
(31
|
)
|
||||
Currency translations, net of the impact of net investment hedges
|
|
6
|
|
|
(6
|
)
|
|
1
|
|
|
(8
|
)
|
||||
Cash flow hedges
|
|
(19
|
)
|
|
6
|
|
|
(49
|
)
|
|
27
|
|
||||
Total other comprehensive income/(loss), net of tax
|
|
11
|
|
|
(4
|
)
|
|
17
|
|
|
(12
|
)
|
||||
Total comprehensive income
|
|
$
|
270
|
|
|
$
|
228
|
|
|
$
|
786
|
|
|
$
|
582
|
|
|
|
Three months ended June 30,
|
|
Nine months ended June 30,
|
||||||||||||
$ in millions, except per share amounts
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Common stock, par value $.01 per share:
|
|
|
|
|
|
|
|
|
||||||||
Balance beginning of period
|
|
$
|
2
|
|
|
$
|
2
|
|
|
$
|
2
|
|
|
$
|
2
|
|
Share issuances
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Balance end of period
|
|
2
|
|
|
2
|
|
|
2
|
|
|
2
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Additional paid-in capital:
|
|
|
|
|
|
|
|
|
|
|
||||||
Balance beginning of period
|
|
1,917
|
|
|
1,748
|
|
|
1,808
|
|
|
1,645
|
|
||||
Employee stock purchases
|
|
7
|
|
|
8
|
|
|
27
|
|
|
24
|
|
||||
Exercise of stock options and vesting of restricted stock units, net of forfeitures
|
|
2
|
|
|
4
|
|
|
27
|
|
|
34
|
|
||||
Restricted stock, stock option and restricted stock unit expense
|
|
21
|
|
|
21
|
|
|
85
|
|
|
77
|
|
||||
Acquisition of noncontrolling interest and other
|
|
(32
|
)
|
|
—
|
|
|
(32
|
)
|
|
1
|
|
||||
Balance end of period
|
|
1,915
|
|
|
1,781
|
|
|
1,915
|
|
|
1,781
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Retained earnings:
|
|
|
|
|
|
|
|
|
|
|
||||||
Balance beginning of period
|
|
5,448
|
|
|
4,626
|
|
|
5,032
|
|
|
4,340
|
|
||||
Net income attributable to Raymond James Financial, Inc.
|
|
259
|
|
|
232
|
|
|
769
|
|
|
594
|
|
||||
Cash dividends declared (see Note 20)
|
|
(47
|
)
|
|
(44
|
)
|
|
(146
|
)
|
|
(119
|
)
|
||||
Other
|
|
(1
|
)
|
|
—
|
|
|
4
|
|
|
(1
|
)
|
||||
Balance end of period
|
|
5,659
|
|
|
4,814
|
|
|
5,659
|
|
|
4,814
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Treasury stock:
|
|
|
|
|
|
|
|
|
|
|
||||||
Balance beginning of period
|
|
(976
|
)
|
|
(412
|
)
|
|
(447
|
)
|
|
(390
|
)
|
||||
Purchases/surrenders
|
|
(86
|
)
|
|
(1
|
)
|
|
(598
|
)
|
|
(9
|
)
|
||||
Exercise of stock options and vesting of restricted stock units, net of forfeitures
|
|
2
|
|
|
—
|
|
|
(15
|
)
|
|
(14
|
)
|
||||
Balance end of period
|
|
(1,060
|
)
|
|
(413
|
)
|
|
(1,060
|
)
|
|
(413
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Accumulated other comprehensive loss:
|
|
|
|
|
|
|
|
|
|
|
||||||
Balance beginning of period
|
|
(25
|
)
|
|
(23
|
)
|
|
(27
|
)
|
|
(15
|
)
|
||||
Other comprehensive income/(loss), net of tax
|
|
11
|
|
|
(4
|
)
|
|
17
|
|
|
(12
|
)
|
||||
Other
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
||||
Balance end of period
|
|
(14
|
)
|
|
(27
|
)
|
|
(14
|
)
|
|
(27
|
)
|
||||
Total equity attributable to Raymond James Financial, Inc.
|
|
$
|
6,502
|
|
|
$
|
6,157
|
|
|
$
|
6,502
|
|
|
$
|
6,157
|
|
|
|
|
|
|
|
|
|
|
||||||||
Noncontrolling interests:
|
|
|
|
|
|
|
|
|
|
|
||||||
Balance beginning of period
|
|
$
|
69
|
|
|
$
|
101
|
|
|
$
|
84
|
|
|
$
|
112
|
|
Net loss attributable to noncontrolling interests
|
|
(2
|
)
|
|
—
|
|
|
(16
|
)
|
|
—
|
|
||||
Capital contributions
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
||||
Distributions and other
|
|
(5
|
)
|
|
(8
|
)
|
|
(8
|
)
|
|
(19
|
)
|
||||
Balance end of period
|
|
62
|
|
|
93
|
|
|
62
|
|
|
93
|
|
||||
Total equity
|
|
$
|
6,564
|
|
|
$
|
6,250
|
|
|
$
|
6,564
|
|
|
$
|
6,250
|
|
RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
||||||||
|
|
Nine months ended June 30,
|
||||||
$ in millions
|
|
2019
|
|
2018
|
||||
Cash flows from operating activities:
|
|
|
|
|
||||
Net income attributable to Raymond James Financial, Inc.
|
|
$
|
769
|
|
|
$
|
594
|
|
Net loss attributable to noncontrolling interests
|
|
(16
|
)
|
|
—
|
|
||
Net income including noncontrolling interests
|
|
753
|
|
|
594
|
|
||
Adjustments to reconcile net income including noncontrolling interests to net cash provided by operating activities:
|
|
|
|
|
|
|
||
Depreciation and amortization
|
|
81
|
|
|
72
|
|
||
Deferred income taxes
|
|
(22
|
)
|
|
99
|
|
||
Premium and discount amortization on available-for-sale securities and loss on other investments
|
|
14
|
|
|
3
|
|
||
Provisions for loan losses, legal and regulatory proceedings and bad debts
|
|
45
|
|
|
34
|
|
||
Share-based compensation expense
|
|
88
|
|
|
75
|
|
||
Unrealized gain on company-owned life insurance policies, net of expenses
|
|
(9
|
)
|
|
(20
|
)
|
||
Other
|
|
47
|
|
|
22
|
|
||
Net change in:
|
|
|
|
|
|
|
||
Securities purchased under agreements to resell, net of securities sold under agreements to repurchase
|
|
(61
|
)
|
|
(48
|
)
|
||
Securities borrowed, net of securities loaned
|
|
(44
|
)
|
|
(24
|
)
|
||
Loans provided to financial advisors, net of repayments
|
|
(28
|
)
|
|
(78
|
)
|
||
Brokerage client receivables and other accounts receivable, net
|
|
679
|
|
|
(144
|
)
|
||
Trading instruments, net
|
|
(52
|
)
|
|
(88
|
)
|
||
Derivative instruments, net
|
|
(137
|
)
|
|
77
|
|
||
Other assets
|
|
(83
|
)
|
|
(49
|
)
|
||
Brokerage client payables and other accounts payable
|
|
(1,300
|
)
|
|
(184
|
)
|
||
Accrued compensation, commissions and benefits
|
|
(99
|
)
|
|
(52
|
)
|
||
Proceeds from sales of securitizations and loans held for sale, net of purchases and originations of loans held for sale
|
|
27
|
|
|
(65
|
)
|
||
Net cash provided by/(used in) operating activities
|
|
(101
|
)
|
|
224
|
|
||
|
|
|
|
|
||||
Cash flows from investing activities:
|
|
|
|
|
|
|
||
Additions to property and equipment
|
|
(102
|
)
|
|
(96
|
)
|
||
Increase in bank loans, net
|
|
(1,226
|
)
|
|
(1,875
|
)
|
||
Proceeds from sales of loans held for investment
|
|
210
|
|
|
140
|
|
||
Purchases of available-for-sale securities
|
|
(689
|
)
|
|
(899
|
)
|
||
Available-for-sale securities maturations, repayments and redemptions
|
|
456
|
|
|
360
|
|
||
Business acquisition, net of cash acquired
|
|
(5
|
)
|
|
(159
|
)
|
||
Other investing activities, net
|
|
(30
|
)
|
|
31
|
|
||
Net cash used in investing activities
|
|
(1,386
|
)
|
|
(2,498
|
)
|
||
|
|
|
|
|
||||
|
|
|
|
|
||||
|
|
|
|
|
||||
|
|
|
|
|
||||
|
|
|
|
|
||||
|
|
|
|
|
||||
|
|
|
|
|
||||
|
|
|
|
|
||||
|
|
|
|
|
||||
|
|
|
|
|
||||
|
|
|
|
|
||||
|
|
|
|
|
||||
|
|
|
|
|
||||
|
|
|
|
|
||||
|
|
|
|
|
||||
|
|
|
|
|
||||
|
|
|
|
|
||||
|
|
|
|
|
||||
|
|
|
|
|
RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
||||||||
|
|
Nine months ended June 30,
|
||||||
$ in millions
|
|
2019
|
|
2018
|
||||
Cash flows from financing activities:
|
|
|
|
|
||||
Proceeds from borrowings on the RJF Credit Facility
|
|
300
|
|
|
300
|
|
||
Repayments of borrowings on the RJF Credit Facility
|
|
(300
|
)
|
|
(300
|
)
|
||
Proceeds from/(repayments of) short-term borrowings, net
|
|
50
|
|
|
(610
|
)
|
||
Proceeds from Federal Home Loan Bank advances
|
|
850
|
|
|
850
|
|
||
Repayments of Federal Home Loan Bank advances and other borrowed funds
|
|
(854
|
)
|
|
(854
|
)
|
||
Exercise of stock options and employee stock purchases
|
|
53
|
|
|
54
|
|
||
Increase in bank deposits
|
|
2,224
|
|
|
1,747
|
|
||
Purchases of treasury stock
|
|
(616
|
)
|
|
(24
|
)
|
||
Dividends on common stock
|
|
(143
|
)
|
|
(107
|
)
|
||
Acquisitions of and distributions to noncontrolling interests, net
|
|
(54
|
)
|
|
(14
|
)
|
||
Net cash provided by financing activities
|
|
1,510
|
|
|
1,042
|
|
||
|
|
|
|
|
||||
Currency adjustment:
|
|
|
|
|
|
|
||
Effect of exchange rate changes on cash
|
|
(12
|
)
|
|
(47
|
)
|
||
Net increase/(decrease) in cash, cash equivalents, and cash segregated pursuant to regulations
|
|
11
|
|
|
(1,279
|
)
|
||
Cash, cash equivalents, and cash segregated pursuant to regulations at beginning of year
|
|
5,941
|
|
|
7,146
|
|
||
Cash, cash equivalents, and cash segregated pursuant to regulations at end of period
|
|
$
|
5,952
|
|
|
$
|
5,867
|
|
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
3,596
|
|
|
$
|
3,180
|
|
Cash segregated pursuant to regulations
|
|
2,356
|
|
|
2,687
|
|
||
Total cash, cash equivalents, and cash segregated pursuant to regulations at end of period
|
|
$
|
5,952
|
|
|
$
|
5,867
|
|
|
|
|
|
|
||||
Supplemental disclosures of cash flow information:
|
|
|
|
|
|
|
||
Cash paid for interest
|
|
$
|
208
|
|
|
$
|
127
|
|
Cash paid for income taxes, net
|
|
$
|
295
|
|
|
$
|
192
|
|
$ in millions
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Netting
adjustments
|
|
Balance as of
June 30, 2019 |
||||||||||
Assets at fair value on a recurring basis:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Trading instruments
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Municipal and provincial obligations
|
|
$
|
—
|
|
|
$
|
242
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
242
|
|
Corporate obligations
|
|
12
|
|
|
111
|
|
|
—
|
|
|
—
|
|
|
123
|
|
|||||
Government and agency obligations
|
|
32
|
|
|
84
|
|
|
—
|
|
|
—
|
|
|
116
|
|
|||||
Agency mortgage-backed securities (“MBS”) and collateralized mortgage obligations (“CMOs”)
|
|
—
|
|
|
198
|
|
|
—
|
|
|
—
|
|
|
198
|
|
|||||
Non-agency CMOs and asset-backed securities (“ABS”)
|
|
—
|
|
|
71
|
|
|
—
|
|
|
—
|
|
|
71
|
|
|||||
Total debt securities
|
|
44
|
|
|
706
|
|
|
—
|
|
|
—
|
|
|
750
|
|
|||||
Equity securities
|
|
12
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
13
|
|
|||||
Brokered certificates of deposit
|
|
—
|
|
|
39
|
|
|
—
|
|
|
—
|
|
|
39
|
|
|||||
Other
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|||||
Total trading instruments
|
|
56
|
|
|
746
|
|
|
1
|
|
|
—
|
|
|
803
|
|
|||||
Available-for-sale securities - agency MBS and CMOs
|
|
—
|
|
|
2,960
|
|
|
—
|
|
|
—
|
|
|
2,960
|
|
|||||
Derivative assets
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest rate - Matched book
|
|
—
|
|
|
246
|
|
|
—
|
|
|
—
|
|
|
246
|
|
|||||
Interest rate - Other
|
|
10
|
|
|
127
|
|
|
—
|
|
|
(80
|
)
|
|
57
|
|
|||||
Foreign exchange
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|||||
Total derivative assets
|
|
10
|
|
|
374
|
|
|
—
|
|
|
(80
|
)
|
|
304
|
|
|||||
Private equity investments - not measured at net asset value (“NAV”)
|
|
—
|
|
|
—
|
|
|
59
|
|
|
—
|
|
|
59
|
|
|||||
Other investments
|
|
187
|
|
|
1
|
|
|
65
|
|
|
—
|
|
|
253
|
|
|||||
Subtotal
|
|
253
|
|
|
4,081
|
|
|
125
|
|
|
(80
|
)
|
|
4,379
|
|
|||||
Private equity investments - measured at NAV
|
|
|
|
|
|
|
|
|
|
87
|
|
|||||||||
Total assets at fair value on a recurring basis
|
|
$
|
253
|
|
|
$
|
4,081
|
|
|
$
|
125
|
|
|
$
|
(80
|
)
|
|
$
|
4,466
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Liabilities at fair value on a recurring basis:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Trading instruments sold but not yet purchased
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Municipal and provincial obligations
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1
|
|
Corporate obligations
|
|
1
|
|
|
16
|
|
|
—
|
|
|
—
|
|
|
17
|
|
|||||
Government and agency obligations
|
|
260
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
260
|
|
|||||
Total debt securities
|
|
262
|
|
|
16
|
|
|
—
|
|
|
—
|
|
|
278
|
|
|||||
Equity securities
|
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|||||
Other
|
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
3
|
|
|||||
Total trading instruments sold but not yet purchased
|
|
268
|
|
|
16
|
|
|
3
|
|
|
—
|
|
|
287
|
|
|||||
Derivative liabilities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest rate - Matched book
|
|
—
|
|
|
246
|
|
|
—
|
|
|
—
|
|
|
246
|
|
|||||
Interest rate - Other
|
|
12
|
|
|
106
|
|
|
—
|
|
|
(100
|
)
|
|
18
|
|
|||||
Foreign exchange
|
|
—
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|||||
Equity - Deutsche Bank restricted stock unit (“DBRSU”) obligation
|
|
—
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|||||
Total derivative liabilities
|
|
12
|
|
|
363
|
|
|
—
|
|
|
(100
|
)
|
|
275
|
|
|||||
Total liabilities at fair value on a recurring basis
|
|
$
|
280
|
|
|
$
|
379
|
|
|
$
|
3
|
|
|
$
|
(100
|
)
|
|
$
|
562
|
|
$ in millions
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Netting
adjustments |
|
Balance as of
September 30, 2018 |
||||||||||
Assets at fair value on a recurring basis:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Trading instruments
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Municipal and provincial obligations
|
|
$
|
1
|
|
|
$
|
247
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
248
|
|
Corporate obligations
|
|
10
|
|
|
100
|
|
|
—
|
|
|
—
|
|
|
110
|
|
|||||
Government and agency obligations
|
|
19
|
|
|
72
|
|
|
—
|
|
|
—
|
|
|
91
|
|
|||||
Agency MBS and CMOs
|
|
3
|
|
|
124
|
|
|
—
|
|
|
—
|
|
|
127
|
|
|||||
Non-agency CMOs and ABS
|
|
—
|
|
|
69
|
|
|
—
|
|
|
—
|
|
|
69
|
|
|||||
Total debt securities
|
|
33
|
|
|
612
|
|
|
—
|
|
|
—
|
|
|
645
|
|
|||||
Equity securities
|
|
15
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15
|
|
|||||
Brokered certificates of deposit
|
|
—
|
|
|
39
|
|
|
—
|
|
|
—
|
|
|
39
|
|
|||||
Other
|
|
—
|
|
|
2
|
|
|
1
|
|
|
—
|
|
|
3
|
|
|||||
Total trading instruments
|
|
48
|
|
|
653
|
|
|
1
|
|
|
—
|
|
|
702
|
|
|||||
Available-for-sale securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Agency MBS and CMOs
|
|
—
|
|
|
2,628
|
|
|
—
|
|
|
—
|
|
|
2,628
|
|
|||||
Other securities
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|||||
Auction rate securities (“ARS”) preferred
|
|
—
|
|
|
—
|
|
|
67
|
|
|
—
|
|
|
67
|
|
|||||
Total available-for-sale securities
|
|
1
|
|
|
2,628
|
|
|
67
|
|
|
—
|
|
|
2,696
|
|
|||||
Derivative assets
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest rate - Matched book
|
|
—
|
|
|
160
|
|
|
—
|
|
|
—
|
|
|
160
|
|
|||||
Interest rate - Other
|
|
—
|
|
|
74
|
|
|
—
|
|
|
(55
|
)
|
|
19
|
|
|||||
Foreign exchange
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|||||
Total derivative assets
|
|
—
|
|
|
235
|
|
|
—
|
|
|
(55
|
)
|
|
180
|
|
|||||
Private equity investments - not measured at NAV
|
|
—
|
|
|
—
|
|
|
56
|
|
|
—
|
|
|
56
|
|
|||||
Other investments
|
|
201
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
202
|
|
|||||
Subtotal
|
|
250
|
|
|
3,517
|
|
|
124
|
|
|
(55
|
)
|
|
3,836
|
|
|||||
Private equity investments - measured at NAV
|
|
|
|
|
|
|
|
|
|
91
|
|
|||||||||
Total assets at fair value on a recurring basis
|
|
$
|
250
|
|
|
$
|
3,517
|
|
|
$
|
124
|
|
|
$
|
(55
|
)
|
|
$
|
3,927
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Liabilities at fair value on a recurring basis:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Trading instruments sold but not yet purchased
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Municipal and provincial obligations
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1
|
|
Corporate obligations
|
|
2
|
|
|
25
|
|
|
—
|
|
|
—
|
|
|
27
|
|
|||||
Government and agency obligations
|
|
194
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
194
|
|
|||||
Non-agency MBS and CMOs
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|||||
Total debt securities
|
|
196
|
|
|
27
|
|
|
—
|
|
|
—
|
|
|
223
|
|
|||||
Equity securities
|
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|||||
Other
|
|
—
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
7
|
|
|||||
Total trading instruments sold but not yet purchased
|
|
201
|
|
|
27
|
|
|
7
|
|
|
—
|
|
|
235
|
|
|||||
Derivative liabilities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest rate - Matched book
|
|
—
|
|
|
160
|
|
|
—
|
|
|
—
|
|
|
160
|
|
|||||
Interest rate - Other
|
|
—
|
|
|
114
|
|
|
—
|
|
|
(47
|
)
|
|
67
|
|
|||||
Foreign exchange
|
|
—
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|||||
Equity - DBRSU obligation
|
|
—
|
|
|
16
|
|
|
—
|
|
|
—
|
|
|
16
|
|
|||||
Total derivative liabilities
|
|
—
|
|
|
294
|
|
|
—
|
|
|
(47
|
)
|
|
247
|
|
|||||
Total liabilities at fair value on a recurring basis
|
|
$
|
201
|
|
|
$
|
321
|
|
|
$
|
7
|
|
|
$
|
(47
|
)
|
|
$
|
482
|
|
Three months ended June 30, 2019
Level 3 instruments at fair value
|
||||||||||||||||
|
|
Financial assets
|
|
Financial liabilities
|
||||||||||||
$ in millions
|
|
Trading instruments - Other
|
|
Private equity investments
|
|
Other investments
|
|
Trading instruments - Other
|
||||||||
Fair value beginning of period
|
|
$
|
2
|
|
|
$
|
59
|
|
|
$
|
67
|
|
|
$
|
(7
|
)
|
Total gains/(losses) included in earnings
|
|
(1
|
)
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
||||
Purchases and contributions
|
|
26
|
|
|
—
|
|
|
—
|
|
|
7
|
|
||||
Sales
|
|
(26
|
)
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
||||
Transfers:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Into Level 3
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Out of Level 3
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Fair value end of period
|
|
$
|
1
|
|
|
$
|
59
|
|
|
$
|
65
|
|
|
$
|
(3
|
)
|
Unrealized gains/(losses) for the period included in earnings for instruments held at the end of the reporting period
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
(2
|
)
|
|
$
|
—
|
|
Nine months ended June 30, 2019
Level 3 instruments at fair value |
||||||||||||||||
|
|
Financial assets
|
|
Financial liabilities
|
||||||||||||
$ in millions
|
|
Trading instruments - Other
|
|
Private equity investments
|
|
Other investments (1)
|
|
Trading instruments - Other
|
||||||||
Fair value beginning of period
|
|
$
|
1
|
|
|
$
|
56
|
|
|
$
|
67
|
|
|
$
|
(7
|
)
|
Total gains/(losses) included in earnings
|
|
(1
|
)
|
|
—
|
|
|
(2
|
)
|
|
2
|
|
||||
Purchases and contributions
|
|
86
|
|
|
3
|
|
|
—
|
|
|
16
|
|
||||
Sales
|
|
(85
|
)
|
|
—
|
|
|
—
|
|
|
(14
|
)
|
||||
Transfers:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Into Level 3
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Out of Level 3
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Fair value end of period
|
|
$
|
1
|
|
|
$
|
59
|
|
|
$
|
65
|
|
|
$
|
(3
|
)
|
Unrealized gains/(losses) for the period included in earnings for instruments held at the end of the reporting period
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
(2
|
)
|
|
$
|
—
|
|
(1)
|
Beginning of period balance includes $67 million of preferred ARS, which were reclassified from available-for-sale securities in connection with the adoption of ASU 2016-01. See Note 2 for additional information.
|
Three months ended June 30, 2018
Level 3 instruments at fair value
|
||||||||||||||||
|
|
Financial assets
|
|
Financial
liabilities
|
||||||||||||
$ in millions
|
|
Trading instruments - Other
|
|
Available-for-sale securities - ARS -
preferred
|
|
Private equity
investments
|
|
Trading instruments - Other
|
||||||||
Fair value beginning of period
|
|
$
|
1
|
|
|
$
|
108
|
|
|
$
|
96
|
|
|
$
|
(1
|
)
|
Total gains/(losses) for the period:
|
|
|
|
|
|
|
|
|
|
|
||||||
Included in earnings
|
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
||||
Included in other comprehensive income
|
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
||||
Purchases and contributions
|
|
18
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Sales
|
|
(15
|
)
|
|
—
|
|
|
(28
|
)
|
|
(1
|
)
|
||||
Transfers:
|
|
|
|
|
|
|
|
|
||||||||
Into Level 3
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Out of Level 3
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Fair value end of period
|
|
$
|
4
|
|
|
$
|
111
|
|
|
$
|
72
|
|
|
$
|
(2
|
)
|
Unrealized gains/(losses) for the period included in earnings for instruments held at the end of the reporting period
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Unrealized gains/(losses) for the period included in other comprehensive income for instruments held at the end of the reporting period
|
|
$
|
—
|
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Nine months ended June 30, 2018
Level 3 instruments at fair value
|
||||||||||||||||
|
|
Financial assets
|
|
Financial
liabilities |
||||||||||||
$ in millions
|
|
Trading instruments - Other
|
|
Available-for-sale securities - ARS -
preferred
|
|
Private equity
investments
|
|
Trading instruments - Other
|
||||||||
Fair value beginning of period
|
|
$
|
6
|
|
|
$
|
106
|
|
|
$
|
89
|
|
|
$
|
—
|
|
Total gains/(losses) for the period:
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Included in earnings
|
|
(1
|
)
|
|
—
|
|
|
11
|
|
|
—
|
|
||||
Included in other comprehensive income
|
|
—
|
|
|
5
|
|
|
—
|
|
|
—
|
|
||||
Purchases and contributions
|
|
62
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Sales
|
|
(63
|
)
|
|
—
|
|
|
(28
|
)
|
|
(2
|
)
|
||||
Transfers:
|
|
|
|
|
|
|
|
|
||||||||
Into Level 3
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Out of Level 3
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Fair value end of period
|
|
$
|
4
|
|
|
$
|
111
|
|
|
$
|
72
|
|
|
$
|
(2
|
)
|
Unrealized gains/(losses) for the period included in earnings for instruments held at the end of the reporting period
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Unrealized gains/(losses) for the period included in other comprehensive income for instruments held at the end of the reporting period
|
|
$
|
—
|
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Level 3 financial instrument
$ in millions
|
|
Fair value at
June 30, 2019
|
|
Valuation technique(s)
|
|
Unobservable input
|
|
Range
(weighted-average)
|
|||
Recurring measurements
|
|
|
|
|
|
|
|
|
|||
Other investments - ARS preferred
|
|
$
|
24
|
|
|
Discounted cash flow
|
|
Average discount rate
|
|
5.35% - 6.35% (5.85%)
|
|
|
|
|
|
|
|
|
Average interest rates applicable to future interest income on the securities (1)
|
|
2.31% - 2.31% (2.31%)
|
|
|
|
|
|
|
|
|
|
Prepayment year (2)
|
|
2019 - 2022 (2022)
|
|
|
|
|
$
|
40
|
|
|
Other investment-specific events (3)
|
|
Not meaningful (3)
|
|
Not meaningful (3)
|
|
Private equity investments (not measured at NAV)
|
|
$
|
46
|
|
|
Income approach - discounted cash flow
|
|
Discount rate
|
|
25
|
%
|
|
|
|
|
|
|
Terminal EBITDA multiple
|
|
10.0x
|
|
||
|
|
|
|
|
|
Terminal year
|
|
2022 - 2042 (2023)
|
|
||
|
|
$
|
13
|
|
|
Transaction price or other investment-specific events (4)
|
|
Not meaningful (4)
|
|
Not meaningful (4)
|
|
Level 3 financial instrument
$ in millions |
|
Fair value at
September 30, 2018
|
|
Valuation technique(s)
|
|
Unobservable input
|
|
Range
(weighted-average)
|
|||
Recurring measurements
|
|
|
|
|
|
|
|
|
|||
ARS preferred
|
|
$
|
67
|
|
|
Discounted cash flow
|
|
Average discount rate
|
|
6.50% - 7.85% (7.13%)
|
|
|
|
|
|
|
|
|
Average interest rates applicable to future interest income on the securities (1)
|
|
4.13% - 5.51% (4.47%)
|
|
|
|
|
|
|
|
|
|
Prepayment year (2)
|
|
2018 - 2021 (2021)
|
|
|
Private equity investments
(not measured at NAV)
|
|
$
|
43
|
|
|
Income approach - discounted cash flow
|
|
Discount rate
|
|
25
|
%
|
|
|
|
|
|
|
Terminal EBITDA multiple
|
|
10.0x
|
|
||
|
|
|
|
|
|
Terminal year
|
|
2022 - 2042 (2023)
|
|
||
|
|
$
|
13
|
|
|
Transaction price or other investment-specific events (4)
|
|
Not meaningful (4)
|
|
Not meaningful (4)
|
|
(1)
|
Interest rates are projected based upon a forward interest rate path, plus a spread over such projected base rate that is applicable to each future period for each security within this portfolio segment. The interest rates presented represent the average interest rate over all projected periods for securities within the portfolio segment.
|
(2)
|
Assumed calendar year of at least a partial redemption of the outstanding security by the issuer.
|
(3)
|
During the third fiscal quarter of 2019, an issuer within our ARS preferred portfolio commenced tender offers to which we tendered holdings with a fair value of $40 million as of June 30, 2019. The tender offers were settled and payment was received in July 2019.
|
(4)
|
Certain investments are valued initially at transaction price and updated as other investment-specific events take place which indicate that a change in the carrying values of these investments is appropriate. Other investment-specific events include such events as our periodic review, significant transactions occur, new developments become known, or we receive information from a fund manager which allows us to update our proportionate share of net assets.
|
$ in millions
|
|
Recorded value
|
|
Unfunded commitment
|
||||
June 30, 2019
|
|
|
|
|
||||
Private equity investments measured at NAV
|
|
$
|
87
|
|
|
$
|
15
|
|
Private equity investments not measured at NAV
|
|
59
|
|
|
|
|||
Total private equity investments
|
|
$
|
146
|
|
|
|
||
|
|
|
|
|
||||
September 30, 2018
|
|
|
|
|
||||
Private equity investments measured at NAV
|
|
$
|
91
|
|
|
$
|
18
|
|
Private equity investments not measured at NAV
|
|
56
|
|
|
|
|||
Total private equity investments
|
|
$
|
147
|
|
|
|
$ in millions
|
|
Level 2
|
|
Level 3
|
|
Total fair value
|
|
Valuation technique(s)
|
|
Unobservable input
|
|
Range
(weighted-average)
|
||||||
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Bank loans, net:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Impaired loans: residential
|
|
$
|
7
|
|
|
$
|
15
|
|
|
$
|
22
|
|
|
Discounted cash flow
|
|
Prepayment rate
|
|
7 yrs. - 12 yrs. (10.4 yrs.)
|
Impaired loans: corporate
|
|
$
|
—
|
|
|
$
|
28
|
|
|
$
|
28
|
|
|
Collateral or discounted cash flow (1)
|
|
Not meaningful (1)
|
|
Not meaningful (1)
|
Loan held for sale
|
|
$
|
52
|
|
|
$
|
—
|
|
|
$
|
52
|
|
|
N/A
|
|
N/A
|
|
N/A
|
Other assets: other real estate owned
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
September 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Bank loans, net:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Impaired loans: residential
|
|
$
|
10
|
|
|
$
|
17
|
|
|
$
|
27
|
|
|
Discounted cash flow
|
|
Prepayment rate
|
|
7 yrs. - 12 yrs. (10.5 yrs.)
|
Impaired loans: corporate
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
Collateral or discounted cash flow (1)
|
|
Not meaningful (1)
|
|
Not meaningful (1)
|
Loan held for sale
|
|
$
|
41
|
|
|
$
|
—
|
|
|
$
|
41
|
|
|
N/A
|
|
N/A
|
|
N/A
|
(1)
|
The valuation techniques used for the corporate loans are collateral value less selling costs for the collateral dependent loans and discounted cash flows for impaired loans that are not collateral dependent.
|
$ in millions
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total estimated fair value
|
|
Carrying amount
|
||||||||||
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Bank loans, net
|
|
$
|
—
|
|
|
$
|
81
|
|
|
$
|
20,474
|
|
|
$
|
20,555
|
|
|
$
|
20,589
|
|
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Bank deposits - Certificates of deposit
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
550
|
|
|
$
|
550
|
|
|
$
|
543
|
|
Senior notes payable
|
|
$
|
—
|
|
|
$
|
1,694
|
|
|
$
|
—
|
|
|
$
|
1,694
|
|
|
$
|
1,550
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
September 30, 2018
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Bank loans, net
|
|
$
|
—
|
|
|
$
|
124
|
|
|
$
|
19,116
|
|
|
$
|
19,240
|
|
|
$
|
19,449
|
|
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Bank deposits
|
|
$
|
—
|
|
|
$
|
19,496
|
|
|
$
|
439
|
|
|
$
|
19,935
|
|
|
$
|
19,942
|
|
Senior notes payable
|
|
$
|
—
|
|
|
$
|
1,558
|
|
|
$
|
—
|
|
|
$
|
1,558
|
|
|
$
|
1,550
|
|
$ in millions
|
|
Cost basis
|
|
Gross
unrealized gains
|
|
Gross
unrealized losses
|
|
Fair value
|
||||||||
June 30, 2019
|
|
|
|
|
|
|
|
|
||||||||
Agency residential MBS
|
|
$
|
1,529
|
|
|
$
|
17
|
|
|
$
|
(2
|
)
|
|
$
|
1,544
|
|
Agency commercial MBS
|
|
285
|
|
|
4
|
|
|
—
|
|
|
289
|
|
||||
Agency CMOs
|
|
1,125
|
|
|
6
|
|
|
(4
|
)
|
|
1,127
|
|
||||
Total available-for-sale securities
|
|
$
|
2,939
|
|
|
$
|
27
|
|
|
$
|
(6
|
)
|
|
$
|
2,960
|
|
|
|
|
|
|
|
|
|
|
||||||||
September 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Agency residential MBS
|
|
$
|
1,616
|
|
|
$
|
—
|
|
|
$
|
(40
|
)
|
|
$
|
1,576
|
|
Agency commercial MBS
|
|
47
|
|
|
—
|
|
|
—
|
|
|
47
|
|
||||
Agency CMOs
|
|
1,035
|
|
|
—
|
|
|
(30
|
)
|
|
1,005
|
|
||||
Other securities
|
|
2
|
|
|
—
|
|
|
(1
|
)
|
|
1
|
|
||||
Total RJ Bank available-for-sale securities
|
|
2,700
|
|
|
—
|
|
|
(71
|
)
|
|
2,629
|
|
||||
ARS preferred
|
|
61
|
|
|
6
|
|
|
—
|
|
|
67
|
|
||||
Total available-for-sale securities
|
|
$
|
2,761
|
|
|
$
|
6
|
|
|
$
|
(71
|
)
|
|
$
|
2,696
|
|
|
|
June 30, 2019
|
||||||||||||||||||
$ in millions
|
|
Within one year
|
|
After one but
within five years
|
|
After five but
within ten years
|
|
After ten years
|
|
Total
|
||||||||||
Agency residential MBS
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Amortized cost
|
|
$
|
—
|
|
|
$
|
25
|
|
|
$
|
869
|
|
|
$
|
635
|
|
|
$
|
1,529
|
|
Carrying value
|
|
$
|
—
|
|
|
$
|
25
|
|
|
$
|
877
|
|
|
$
|
642
|
|
|
$
|
1,544
|
|
Agency commercial MBS
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Amortized cost
|
|
$
|
5
|
|
|
$
|
214
|
|
|
$
|
32
|
|
|
$
|
34
|
|
|
$
|
285
|
|
Carrying value
|
|
$
|
5
|
|
|
$
|
216
|
|
|
$
|
33
|
|
|
$
|
35
|
|
|
$
|
289
|
|
Agency CMOs
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Amortized cost
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
92
|
|
|
$
|
1,033
|
|
|
$
|
1,125
|
|
Carrying value
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
92
|
|
|
$
|
1,035
|
|
|
$
|
1,127
|
|
Total available-for-sale securities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Amortized cost
|
|
$
|
5
|
|
|
$
|
239
|
|
|
$
|
993
|
|
|
$
|
1,702
|
|
|
$
|
2,939
|
|
Carrying value
|
|
$
|
5
|
|
|
$
|
241
|
|
|
$
|
1,002
|
|
|
$
|
1,712
|
|
|
$
|
2,960
|
|
Weighted-average yield
|
|
1.85
|
%
|
|
2.31
|
%
|
|
2.39
|
%
|
|
2.53
|
%
|
|
2.46
|
%
|
|
|
Less than 12 months
|
|
12 months or more
|
|
Total
|
||||||||||||||||||
$ in millions
|
|
Estimated
fair value
|
|
Unrealized
losses
|
|
Estimated
fair value
|
|
Unrealized
losses
|
|
Estimated
fair value
|
|
Unrealized
losses
|
||||||||||||
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Agency residential MBS
|
|
$
|
37
|
|
|
$
|
—
|
|
|
$
|
397
|
|
|
$
|
(2
|
)
|
|
$
|
434
|
|
|
$
|
(2
|
)
|
Agency commercial MBS
|
|
—
|
|
|
—
|
|
|
48
|
|
|
—
|
|
|
48
|
|
|
—
|
|
||||||
Agency CMOs
|
|
19
|
|
|
—
|
|
|
529
|
|
|
(4
|
)
|
|
548
|
|
|
(4
|
)
|
||||||
Total
|
|
$
|
56
|
|
|
$
|
—
|
|
|
$
|
974
|
|
|
$
|
(6
|
)
|
|
$
|
1,030
|
|
|
$
|
(6
|
)
|
September 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Agency residential MBS
|
|
$
|
747
|
|
|
$
|
(15
|
)
|
|
$
|
753
|
|
|
$
|
(25
|
)
|
|
$
|
1,500
|
|
|
$
|
(40
|
)
|
Agency commercial MBS
|
|
40
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
46
|
|
|
—
|
|
||||||
Agency CMOs
|
|
316
|
|
|
(5
|
)
|
|
666
|
|
|
(25
|
)
|
|
982
|
|
|
(30
|
)
|
||||||
Other securities
|
|
—
|
|
|
—
|
|
|
1
|
|
|
(1
|
)
|
|
1
|
|
|
(1
|
)
|
||||||
Total
|
|
$
|
1,103
|
|
|
$
|
(20
|
)
|
|
$
|
1,426
|
|
|
$
|
(51
|
)
|
|
$
|
2,529
|
|
|
$
|
(71
|
)
|
|
|
June 30, 2019
|
|
September 30, 2018
|
||||||||||||||||||||
$ in millions
|
|
Derivative assets
|
|
Derivative liabilities
|
|
Notional amount
|
|
Derivative assets
|
|
Derivative liabilities
|
|
Notional amount
|
||||||||||||
Derivatives not designated as hedging instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Matched book
|
|
$
|
246
|
|
|
$
|
246
|
|
|
$
|
2,325
|
|
|
$
|
160
|
|
|
$
|
160
|
|
|
$
|
2,416
|
|
Other (1)
|
|
133
|
|
|
117
|
|
|
10,197
|
|
|
74
|
|
|
113
|
|
|
9,398
|
|
||||||
Foreign exchange
|
|
1
|
|
|
1
|
|
|
552
|
|
|
1
|
|
|
1
|
|
|
549
|
|
||||||
Equity - DBRSU obligation
|
|
—
|
|
|
7
|
|
|
7
|
|
|
—
|
|
|
16
|
|
|
16
|
|
||||||
Subtotal
|
|
380
|
|
|
371
|
|
|
13,081
|
|
|
235
|
|
|
290
|
|
|
12,379
|
|
||||||
Derivatives designated as hedging instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate
|
|
4
|
|
|
1
|
|
|
850
|
|
|
—
|
|
|
1
|
|
|
850
|
|
||||||
Foreign exchange
|
|
—
|
|
|
3
|
|
|
853
|
|
|
—
|
|
|
3
|
|
|
892
|
|
||||||
Subtotal
|
|
4
|
|
|
4
|
|
|
1,703
|
|
|
—
|
|
|
4
|
|
|
1,742
|
|
||||||
Total gross fair value/notional amount
|
|
384
|
|
|
375
|
|
|
$
|
14,784
|
|
|
235
|
|
|
294
|
|
|
$
|
14,121
|
|
||||
Offset on the Condensed Consolidated Statements of Financial Condition
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Counterparty netting
|
|
(16
|
)
|
|
(16
|
)
|
|
|
|
(26
|
)
|
|
(26
|
)
|
|
|
||||||||
Cash collateral netting
|
|
(64
|
)
|
|
(84
|
)
|
|
|
|
(29
|
)
|
|
(21
|
)
|
|
|
||||||||
Total amounts offset
|
|
(80
|
)
|
|
(100
|
)
|
|
|
|
(55
|
)
|
|
(47
|
)
|
|
|
||||||||
Net amounts presented on the Condensed Consolidated Statements of Financial Condition
|
|
304
|
|
|
275
|
|
|
|
|
180
|
|
|
247
|
|
|
|
||||||||
Gross amounts not offset on the Condensed Consolidated Statements of Financial Condition
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Financial instruments (2)
|
|
(259
|
)
|
|
(246
|
)
|
|
|
|
(162
|
)
|
|
(160
|
)
|
|
|
||||||||
Total
|
|
$
|
45
|
|
|
$
|
29
|
|
|
|
|
$
|
18
|
|
|
$
|
87
|
|
|
|
(1)
|
Substantially all relates to interest rate derivatives entered into as part of our fixed income business operations, including to be announced (“TBA”) security contracts that are accounted for as derivatives.
|
(2)
|
Although the matched book derivative arrangements do not meet the definition of a master netting arrangement as specified by GAAP, the agreement with the third-party intermediary includes terms that are similar to a master netting agreement. As a result, we present the matched book amounts net in the preceding table.
|
|
|
Three months ended June 30,
|
|
Nine months ended June 30,
|
||||||||||||
$ in millions
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Interest rate (cash flow hedges)
|
|
$
|
(19
|
)
|
|
$
|
6
|
|
|
$
|
(49
|
)
|
|
$
|
27
|
|
Foreign exchange (net investment hedges)
|
|
(12
|
)
|
|
13
|
|
|
14
|
|
|
38
|
|
||||
Total gains/(losses) in AOCI, net of taxes
|
|
$
|
(31
|
)
|
|
$
|
19
|
|
|
$
|
(35
|
)
|
|
$
|
65
|
|
$ in millions
|
|
Location of gain/(loss) included in the
Condensed Consolidated Statements of Income
and Comprehensive Income
|
|
Gain/(loss) recognized during the
|
||||||||||||||
|
|
three months ended June 30,
|
|
nine months ended June 30,
|
||||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||
Interest rate
|
|
Principal transactions/other revenues
|
|
$
|
2
|
|
|
$
|
3
|
|
|
$
|
4
|
|
|
$
|
5
|
|
Foreign exchange
|
|
Other revenues
|
|
$
|
(8
|
)
|
|
$
|
15
|
|
|
$
|
14
|
|
|
$
|
24
|
|
Equity - DBRSU obligation
|
|
Compensation, commissions and benefits expense
|
|
$
|
—
|
|
|
$
|
4
|
|
|
$
|
5
|
|
|
$
|
9
|
|
|
|
Assets
|
|
Liabilities
|
||||||||||||
$ in millions
|
|
Reverse repurchase agreements
|
|
Securities borrowed
|
|
Repurchase agreements
|
|
Securities loaned
|
||||||||
June 30, 2019
|
|
|
|
|
|
|
|
|
||||||||
Gross amounts of recognized assets/liabilities
|
|
$
|
411
|
|
|
$
|
306
|
|
|
$
|
165
|
|
|
$
|
429
|
|
Gross amounts offset on the Condensed Consolidated Statements of Financial Condition
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Net amounts presented on the Condensed Consolidated Statements of Financial Condition
|
|
411
|
|
|
306
|
|
|
165
|
|
|
429
|
|
||||
Gross amounts not offset on the Condensed Consolidated Statements of Financial Condition
|
|
(411
|
)
|
|
(301
|
)
|
|
(165
|
)
|
|
(419
|
)
|
||||
Net amounts
|
|
$
|
—
|
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
10
|
|
September 30, 2018
|
|
|
|
|
|
|
|
|
||||||||
Gross amounts of recognized assets/liabilities
|
|
$
|
373
|
|
|
$
|
255
|
|
|
$
|
186
|
|
|
$
|
423
|
|
Gross amounts offset on the Condensed Consolidated Statements of Financial Condition
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Net amounts presented on the Condensed Consolidated Statements of Financial Condition
|
|
373
|
|
|
255
|
|
|
186
|
|
|
423
|
|
||||
Gross amounts not offset on the Condensed Consolidated Statements of Financial Condition
|
|
(373
|
)
|
|
(248
|
)
|
|
(186
|
)
|
|
(408
|
)
|
||||
Net amounts
|
|
$
|
—
|
|
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
15
|
|
$ in millions
|
|
June 30,
2019 |
|
September 30,
2018 |
||||
Collateral we received that was available to be delivered or repledged
|
|
$
|
3,093
|
|
|
$
|
3,165
|
|
Collateral that we delivered or repledged
|
|
$
|
1,195
|
|
|
$
|
1,389
|
|
$ in millions
|
|
June 30,
2019 |
|
September 30,
2018 |
||||
Financial instruments owned, at fair value, pledged to counterparties that:
|
|
|
|
|
||||
Had the right to deliver or repledge
|
|
$
|
597
|
|
|
$
|
510
|
|
Did not have the right to deliver or repledge
|
|
$
|
65
|
|
|
$
|
65
|
|
Bank loans, net pledged at FHLB and the Federal Reserve Bank
|
|
$
|
4,563
|
|
|
$
|
4,075
|
|
$ in millions
|
|
Overnight and continuous
|
|
Up to 30 days
|
|
30-90 days
|
|
Greater than 90 days
|
|
Total
|
||||||||||
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Repurchase agreements:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Government and agency obligations
|
|
$
|
48
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
48
|
|
Agency MBS and CMOs
|
|
117
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
117
|
|
|||||
Total repurchase agreements
|
|
165
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
165
|
|
|||||
Securities loaned:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity securities
|
|
429
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
429
|
|
|||||
Total
|
|
$
|
594
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
594
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
September 30, 2018
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Repurchase agreements:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Government and agency obligations
|
|
$
|
102
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
102
|
|
Agency MBS and CMOs
|
|
84
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
84
|
|
|||||
Total repurchase agreements
|
|
186
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
186
|
|
|||||
Securities loaned:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity securities
|
|
423
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
423
|
|
|||||
Total
|
|
$
|
609
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
609
|
|
|
|
June 30, 2019
|
|
September 30, 2018
|
||||||||||
$ in millions
|
|
Balance
|
|
%
|
|
Balance
|
|
%
|
||||||
Loans held for investment:
|
|
|
|
|
|
|
|
|
|
|
|
|
||
C&I loans
|
|
$
|
8,401
|
|
|
40
|
%
|
|
$
|
7,786
|
|
|
40
|
%
|
CRE construction loans
|
|
248
|
|
|
1
|
%
|
|
151
|
|
|
1
|
%
|
||
CRE loans
|
|
3,468
|
|
|
17
|
%
|
|
3,624
|
|
|
18
|
%
|
||
Tax-exempt loans
|
|
1,296
|
|
|
6
|
%
|
|
1,227
|
|
|
6
|
%
|
||
Residential mortgage loans
|
|
4,198
|
|
|
20
|
%
|
|
3,757
|
|
|
19
|
%
|
||
SBL and other
|
|
3,177
|
|
|
15
|
%
|
|
3,033
|
|
|
15
|
%
|
||
Total loans held for investment
|
|
20,788
|
|
|
|
|
|
19,578
|
|
|
|
|
||
Net unearned income and deferred expenses
|
|
(16
|
)
|
|
|
|
|
(21
|
)
|
|
|
|
||
Total loans held for investment, net
|
|
20,772
|
|
|
|
|
|
19,557
|
|
|
|
|
||
Loans held for sale, net
|
|
134
|
|
|
1
|
%
|
|
164
|
|
|
1
|
%
|
||
Total loans held for sale and investment
|
|
20,906
|
|
|
100
|
%
|
|
19,721
|
|
|
100
|
%
|
||
Allowance for loan losses
|
|
(215
|
)
|
|
|
|
|
(203
|
)
|
|
|
|
||
Bank loans, net
|
|
$
|
20,691
|
|
|
|
|
|
$
|
19,518
|
|
|
|
|
$ in millions
|
|
C&I loans
|
|
CRE loans
|
|
Residential mortgage loans
|
|
Total
|
||||||||
Three months ended June 30, 2019
|
|
|
|
|
|
|
|
|
||||||||
Purchases
|
|
$
|
247
|
|
|
$
|
10
|
|
|
$
|
132
|
|
|
$
|
389
|
|
Sales
|
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
7
|
|
Nine months ended June 30, 2019
|
|
|
|
|
|
|
|
|
||||||||
Purchases
|
|
$
|
937
|
|
|
$
|
35
|
|
|
$
|
254
|
|
|
$
|
1,226
|
|
Sales
|
|
$
|
100
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
100
|
|
Three months ended June 30, 2018
|
|
|
|
|
|
|
|
|
||||||||
Purchases
|
|
$
|
195
|
|
|
$
|
82
|
|
|
$
|
123
|
|
|
$
|
400
|
|
Sales
|
|
$
|
38
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
38
|
|
Nine months ended June 30, 2018
|
|
|
|
|
|
|
|
|
||||||||
Purchases
|
|
$
|
467
|
|
|
$
|
145
|
|
|
$
|
217
|
|
|
$
|
829
|
|
Sales
|
|
$
|
146
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
146
|
|
$ in millions
|
|
30-89
days and accruing
|
|
90 days or more and accruing
|
|
Total past due and accruing
|
|
Nonaccrual
|
|
Current and accruing
|
|
Total loans held for investment
|
||||||||||||
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
C&I loans
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
22
|
|
|
$
|
8,379
|
|
|
$
|
8,401
|
|
CRE construction loans
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
248
|
|
|
248
|
|
||||||
CRE loans
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
3,458
|
|
|
3,468
|
|
||||||
Tax-exempt loans
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,296
|
|
|
1,296
|
|
||||||
Residential mortgage loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
First mortgage loans
|
|
1
|
|
|
5
|
|
|
6
|
|
|
16
|
|
|
4,148
|
|
|
4,170
|
|
||||||
Home equity loans/lines
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
28
|
|
|
28
|
|
||||||
SBL and other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,177
|
|
|
3,177
|
|
||||||
Total loans held for investment
|
|
$
|
1
|
|
|
$
|
5
|
|
|
$
|
6
|
|
|
$
|
48
|
|
|
$
|
20,734
|
|
|
$
|
20,788
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
September 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
C&I loans
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
7,784
|
|
|
$
|
7,786
|
|
CRE construction loans
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
151
|
|
|
151
|
|
||||||
CRE loans
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,624
|
|
|
3,624
|
|
||||||
Tax-exempt loans
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,227
|
|
|
1,227
|
|
||||||
Residential mortgage loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
First mortgage loans
|
|
1
|
|
|
—
|
|
|
1
|
|
|
23
|
|
|
3,707
|
|
|
3,731
|
|
||||||
Home equity loans/lines
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
26
|
|
|
26
|
|
||||||
SBL and other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,033
|
|
|
3,033
|
|
||||||
Total loans held for investment
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
25
|
|
|
$
|
19,552
|
|
|
$
|
19,578
|
|
|
|
June 30, 2019
|
|
September 30, 2018
|
||||||||||||||||||||
$ in millions
|
|
Gross
recorded
investment
|
|
Unpaid
principal
balance
|
|
Allowance
for losses
|
|
Gross
recorded
investment
|
|
Unpaid
principal
balance
|
|
Allowance
for losses
|
||||||||||||
Impaired loans with allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
C&I loans
|
|
$
|
19
|
|
|
$
|
19
|
|
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Residential - first mortgage loans
|
|
11
|
|
|
14
|
|
|
1
|
|
|
15
|
|
|
20
|
|
|
2
|
|
||||||
Total
|
|
30
|
|
|
33
|
|
|
5
|
|
|
15
|
|
|
20
|
|
|
2
|
|
||||||
Impaired loans without allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
C&I loans
|
|
3
|
|
|
3
|
|
|
—
|
|
|
2
|
|
|
2
|
|
|
—
|
|
||||||
CRE loans
|
|
10
|
|
|
13
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Residential - first mortgage loans
|
|
12
|
|
|
19
|
|
|
—
|
|
|
13
|
|
|
20
|
|
|
—
|
|
||||||
Total
|
|
25
|
|
|
35
|
|
|
—
|
|
|
15
|
|
|
22
|
|
|
—
|
|
||||||
Total impaired loans
|
|
$
|
55
|
|
|
$
|
68
|
|
|
$
|
5
|
|
|
$
|
30
|
|
|
$
|
42
|
|
|
$
|
2
|
|
|
|
Three months ended June 30,
|
|
Nine months ended June 30,
|
||||||||||||
$ in millions
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Average impaired loan balance:
|
|
|
|
|
|
|
|
|
||||||||
C&I loans
|
|
$
|
26
|
|
|
$
|
4
|
|
|
$
|
19
|
|
|
$
|
4
|
|
CRE loans
|
|
10
|
|
|
—
|
|
|
4
|
|
|
—
|
|
||||
Residential - first mortgage loans
|
|
24
|
|
|
34
|
|
|
25
|
|
|
34
|
|
||||
Total
|
|
$
|
60
|
|
|
$
|
38
|
|
|
$
|
48
|
|
|
$
|
38
|
|
$ in millions
|
|
Pass
|
|
Special mention
|
|
Substandard
|
|
Doubtful
|
|
Total
|
||||||||||
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
||||||||||
C&I loans
|
|
$
|
8,296
|
|
|
$
|
22
|
|
|
$
|
83
|
|
|
$
|
—
|
|
|
$
|
8,401
|
|
CRE construction loans
|
|
248
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
248
|
|
|||||
CRE loans
|
|
3,410
|
|
|
20
|
|
|
38
|
|
|
—
|
|
|
3,468
|
|
|||||
Tax-exempt loans
|
|
1,296
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,296
|
|
|||||
Residential mortgage loans:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
First mortgage loans
|
|
4,136
|
|
|
8
|
|
|
26
|
|
|
—
|
|
|
4,170
|
|
|||||
Home equity loans/lines
|
|
28
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
28
|
|
|||||
SBL and other
|
|
3,177
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,177
|
|
|||||
Total
|
|
$
|
20,591
|
|
|
$
|
50
|
|
|
$
|
147
|
|
|
$
|
—
|
|
|
$
|
20,788
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
September 30, 2018
|
|
|
|
|
|
|
|
|
|
|||||||||||
C&I loans
|
|
$
|
7,679
|
|
|
$
|
48
|
|
|
$
|
59
|
|
|
$
|
—
|
|
|
$
|
7,786
|
|
CRE construction loans
|
|
140
|
|
|
11
|
|
|
—
|
|
|
—
|
|
|
151
|
|
|||||
CRE loans
|
|
3,547
|
|
|
44
|
|
|
33
|
|
|
—
|
|
|
3,624
|
|
|||||
Tax-exempt loans
|
|
1,227
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,227
|
|
|||||
Residential mortgage loans:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
First mortgage loans
|
|
3,693
|
|
|
8
|
|
|
30
|
|
|
—
|
|
|
3,731
|
|
|||||
Home equity loans/lines
|
|
26
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
26
|
|
|||||
SBL and other
|
|
3,033
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,033
|
|
|||||
Total
|
|
$
|
19,345
|
|
|
$
|
111
|
|
|
$
|
122
|
|
|
$
|
—
|
|
|
$
|
19,578
|
|
|
|
Loans held for investment
|
||||||||||||||||||||||||||
$ in millions
|
|
C&I loans
|
|
CRE construction loans
|
|
CRE loans
|
|
Tax-exempt loans
|
|
Residential mortgage loans
|
|
SBL and other
|
|
Total
|
||||||||||||||
Three months ended June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Balance at beginning of period
|
|
$
|
140
|
|
|
$
|
3
|
|
|
$
|
45
|
|
|
$
|
8
|
|
|
$
|
17
|
|
|
$
|
5
|
|
|
$
|
218
|
|
Provision/(benefit) for loan losses
|
|
(8
|
)
|
|
1
|
|
|
1
|
|
|
1
|
|
|
(1
|
)
|
|
1
|
|
|
(5
|
)
|
|||||||
Net (charge-offs)/recoveries:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Charge-offs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Recoveries
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|||||||
Net charge-offs
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|||||||
Foreign exchange translation adjustment
|
|
1
|
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|||||||
Balance at end of period
|
|
$
|
134
|
|
|
$
|
4
|
|
|
$
|
46
|
|
|
$
|
9
|
|
|
$
|
16
|
|
|
$
|
6
|
|
|
$
|
215
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Nine months ended June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Balance at beginning of period
|
|
$
|
123
|
|
|
$
|
3
|
|
|
$
|
47
|
|
|
$
|
9
|
|
|
$
|
17
|
|
|
$
|
4
|
|
|
$
|
203
|
|
Provision/(benefit) for loan losses
|
|
13
|
|
|
1
|
|
|
2
|
|
|
—
|
|
|
(2
|
)
|
|
2
|
|
|
16
|
|
|||||||
Net (charge-offs)/recoveries:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Charge-offs
|
|
(3
|
)
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
|
|
|
—
|
|
|
(6
|
)
|
|||||||
Recoveries
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
2
|
|
|||||||
Net (charge-offs)/recoveries
|
|
(2
|
)
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
1
|
|
|
—
|
|
|
(4
|
)
|
|||||||
Foreign exchange translation adjustment
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Balance at end of period
|
|
$
|
134
|
|
|
$
|
4
|
|
|
$
|
46
|
|
|
$
|
9
|
|
|
$
|
16
|
|
|
$
|
6
|
|
|
$
|
215
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Three months ended June 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Balance at beginning of period
|
|
$
|
125
|
|
|
$
|
2
|
|
|
$
|
43
|
|
|
$
|
8
|
|
|
$
|
13
|
|
|
$
|
4
|
|
|
$
|
195
|
|
Provision/(benefit) for loan losses
|
|
2
|
|
|
1
|
|
|
2
|
|
|
—
|
|
|
1
|
|
|
(1
|
)
|
|
5
|
|
|||||||
Net (charge-offs)/recoveries:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Charge-offs
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|||||||
Recoveries
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|||||||
Net (charge-offs)/recoveries
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
(4
|
)
|
|||||||
Foreign exchange translation adjustment
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Balance at end of period
|
|
$
|
122
|
|
|
$
|
3
|
|
|
$
|
45
|
|
|
$
|
8
|
|
|
$
|
15
|
|
|
$
|
3
|
|
|
$
|
196
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Nine months ended June 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Balance at beginning of period
|
|
$
|
120
|
|
|
$
|
1
|
|
|
$
|
42
|
|
|
$
|
6
|
|
|
$
|
17
|
|
|
$
|
4
|
|
|
$
|
190
|
|
Provision/(benefit) for loan losses
|
|
11
|
|
|
2
|
|
|
3
|
|
|
2
|
|
|
(3
|
)
|
|
(1
|
)
|
|
14
|
|
|||||||
Net (charge-offs)/recoveries:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Charge-offs
|
|
(9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9
|
)
|
|||||||
Recoveries
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|||||||
Net (charge-offs)/recoveries
|
|
(9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
(8
|
)
|
|||||||
Foreign exchange translation adjustment
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Balance at end of period
|
|
$
|
122
|
|
|
$
|
3
|
|
|
$
|
45
|
|
|
$
|
8
|
|
|
$
|
15
|
|
|
$
|
3
|
|
|
$
|
196
|
|
|
|
Loans held for investment
|
||||||||||||||||||||||
|
|
Allowance for loan losses
|
|
Recorded investment
|
||||||||||||||||||||
$ in millions
|
|
Individually evaluated for impairment
|
|
Collectively evaluated for impairment
|
|
Total
|
|
Individually evaluated for impairment
|
|
Collectively evaluated for impairment
|
|
Total
|
||||||||||||
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
C&I loans
|
|
$
|
4
|
|
|
$
|
130
|
|
|
$
|
134
|
|
|
$
|
22
|
|
|
$
|
8,379
|
|
|
$
|
8,401
|
|
CRE construction loans
|
|
—
|
|
|
4
|
|
|
4
|
|
|
—
|
|
|
248
|
|
|
248
|
|
||||||
CRE loans
|
|
—
|
|
|
46
|
|
|
46
|
|
|
10
|
|
|
3,458
|
|
|
3,468
|
|
||||||
Tax-exempt loans
|
|
—
|
|
|
9
|
|
|
9
|
|
|
—
|
|
|
1,296
|
|
|
1,296
|
|
||||||
Residential mortgage loans
|
|
1
|
|
|
15
|
|
|
16
|
|
|
28
|
|
|
4,170
|
|
|
4,198
|
|
||||||
SBL and other
|
|
—
|
|
|
6
|
|
|
6
|
|
|
—
|
|
|
3,177
|
|
|
3,177
|
|
||||||
Total
|
|
$
|
5
|
|
|
$
|
210
|
|
|
$
|
215
|
|
|
$
|
60
|
|
|
$
|
20,728
|
|
|
$
|
20,788
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
September 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
C&I loans
|
|
$
|
—
|
|
|
$
|
123
|
|
|
$
|
123
|
|
|
$
|
2
|
|
|
$
|
7,784
|
|
|
$
|
7,786
|
|
CRE construction loans
|
|
—
|
|
|
3
|
|
|
3
|
|
|
—
|
|
|
151
|
|
|
151
|
|
||||||
CRE loans
|
|
—
|
|
|
47
|
|
|
47
|
|
|
—
|
|
|
3,624
|
|
|
3,624
|
|
||||||
Tax-exempt loans
|
|
—
|
|
|
9
|
|
|
9
|
|
|
—
|
|
|
1,227
|
|
|
1,227
|
|
||||||
Residential mortgage loans
|
|
2
|
|
|
15
|
|
|
17
|
|
|
35
|
|
|
3,722
|
|
|
3,757
|
|
||||||
SBL and other
|
|
—
|
|
|
4
|
|
|
4
|
|
|
—
|
|
|
3,033
|
|
|
3,033
|
|
||||||
Total
|
|
$
|
2
|
|
|
$
|
201
|
|
|
$
|
203
|
|
|
$
|
37
|
|
|
$
|
19,541
|
|
|
$
|
19,578
|
|
$ in millions
|
|
Aggregate assets
|
|
Aggregate liabilities
|
||||
June 30, 2019
|
|
|
|
|
||||
Private Equity Interests
|
|
$
|
69
|
|
|
$
|
4
|
|
LIHTC fund in which RJ Bank is an investor member
|
|
61
|
|
|
—
|
|
||
Guaranteed LIHTC Fund
|
|
18
|
|
|
3
|
|
||
Other LIHTC funds
|
|
26
|
|
|
28
|
|
||
Restricted Stock Trust Fund
|
|
19
|
|
|
19
|
|
||
Total
|
|
$
|
193
|
|
|
$
|
54
|
|
|
|
|
|
|
||||
September 30, 2018
|
|
|
|
|
|
|
||
Private Equity Interests
|
|
$
|
67
|
|
|
$
|
5
|
|
LIHTC fund in which RJ Bank is an investor member
|
|
53
|
|
|
—
|
|
||
Guaranteed LIHTC Fund
|
|
40
|
|
|
3
|
|
||
Other LIHTC funds
|
|
18
|
|
|
18
|
|
||
Restricted Stock Trust Fund
|
|
14
|
|
|
14
|
|
||
Total
|
|
$
|
192
|
|
|
$
|
40
|
|
$ in millions
|
|
June 30, 2019
|
|
September 30, 2018
|
||||
Assets:
|
|
|
|
|
||||
Cash, cash equivalents and cash segregated pursuant to regulations
|
|
$
|
20
|
|
|
$
|
7
|
|
Intercompany and other receivables
|
|
—
|
|
|
1
|
|
||
Private equity investments
|
|
62
|
|
|
63
|
|
||
Investments in real estate partnerships held by consolidated variable interest entities
|
|
69
|
|
|
107
|
|
||
Trust fund investment in RJF common stock
|
|
19
|
|
|
14
|
|
||
Other assets
|
|
23
|
|
|
—
|
|
||
Total assets
|
|
$
|
193
|
|
|
$
|
192
|
|
|
|
|
|
|
||||
Liabilities and equity:
|
|
|
|
|
|
|
||
Other payables
|
|
$
|
29
|
|
|
$
|
27
|
|
Intercompany payables
|
|
22
|
|
|
17
|
|
||
Total liabilities
|
|
51
|
|
|
44
|
|
||
RJF equity
|
|
79
|
|
|
70
|
|
||
Noncontrolling interests
|
|
63
|
|
|
78
|
|
||
Total equity
|
|
142
|
|
|
148
|
|
||
Total liabilities and equity
|
|
$
|
193
|
|
|
$
|
192
|
|
|
|
June 30, 2019
|
|
September 30, 2018
|
||||||||||||||||||||
$ in millions
|
|
Aggregate
assets
|
|
Aggregate
liabilities
|
|
Our risk
of loss
|
|
Aggregate
assets
|
|
Aggregate
liabilities
|
|
Our risk
of loss
|
||||||||||||
Private Equity Interests
|
|
$
|
6,170
|
|
|
$
|
155
|
|
|
$
|
66
|
|
|
$
|
6,908
|
|
|
$
|
154
|
|
|
$
|
68
|
|
LIHTC funds
|
|
5,776
|
|
|
2,167
|
|
|
62
|
|
|
5,692
|
|
|
1,912
|
|
|
93
|
|
||||||
Other
|
|
222
|
|
|
125
|
|
|
4
|
|
|
211
|
|
|
114
|
|
|
4
|
|
||||||
Total
|
|
$
|
12,168
|
|
|
$
|
2,447
|
|
|
$
|
132
|
|
|
$
|
12,811
|
|
|
$
|
2,180
|
|
|
$
|
165
|
|
|
|
June 30, 2019
|
|
September 30, 2018
|
||||||||||
$ in millions
|
|
Balance
|
|
Weighted-average rate
|
|
Balance
|
|
Weighted-average rate
|
||||||
Savings and money market accounts
|
|
$
|
21,605
|
|
|
0.54
|
%
|
|
$
|
19,475
|
|
|
0.54
|
%
|
Certificates of deposit
|
|
543
|
|
|
2.38
|
%
|
|
445
|
|
|
2.03
|
%
|
||
NOW accounts
|
|
6
|
|
|
0.01
|
%
|
|
6
|
|
|
0.01
|
%
|
||
Demand deposits (non-interest-bearing)
|
|
12
|
|
|
—
|
|
|
16
|
|
|
—
|
|
||
Total bank deposits
|
|
$
|
22,166
|
|
|
0.58
|
%
|
|
$
|
19,942
|
|
|
0.57
|
%
|
|
|
June 30, 2019
|
|
September 30, 2018
|
||||||||||||
$ in millions
|
|
Denominations
greater than or
equal to $100,000
|
|
Denominations
less than $100,000
|
|
Denominations
greater than or
equal to $100,000
|
|
Denominations
less than $100,000
|
||||||||
Three months or less
|
|
$
|
39
|
|
|
$
|
26
|
|
|
$
|
30
|
|
|
$
|
17
|
|
Over three through six months
|
|
22
|
|
|
17
|
|
|
20
|
|
|
13
|
|
||||
Over six through twelve months
|
|
47
|
|
|
32
|
|
|
38
|
|
|
26
|
|
||||
Over one through two years
|
|
50
|
|
|
37
|
|
|
65
|
|
|
40
|
|
||||
Over two through three years
|
|
30
|
|
|
73
|
|
|
21
|
|
|
14
|
|
||||
Over three through four years
|
|
58
|
|
|
27
|
|
|
44
|
|
|
26
|
|
||||
Over four through five years
|
|
56
|
|
|
29
|
|
|
63
|
|
|
28
|
|
||||
Total
|
|
$
|
302
|
|
|
$
|
241
|
|
|
$
|
281
|
|
|
$
|
164
|
|
|
|
Three months ended June 30,
|
|
Nine months ended June 30,
|
||||||||||||
$ in millions
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Savings, money market, and NOW accounts
|
|
$
|
29
|
|
|
$
|
18
|
|
|
$
|
96
|
|
|
$
|
35
|
|
Certificates of deposit
|
|
4
|
|
|
1
|
|
|
9
|
|
|
4
|
|
||||
Total interest expense on deposits
|
|
$
|
33
|
|
|
$
|
19
|
|
|
$
|
105
|
|
|
$
|
39
|
|
$ in millions
|
|
June 30, 2019
|
|
September 30, 2018
|
||||
FHLB advances
|
|
$
|
875
|
|
|
$
|
875
|
|
Secured lines of credit
|
|
50
|
|
|
—
|
|
||
Mortgage notes payable and other
|
|
20
|
|
|
24
|
|
||
Total other borrowings
|
|
$
|
945
|
|
|
$
|
899
|
|
$ in millions
|
|
June 30, 2019
|
|
September 30, 2018
|
||||
Open-end consumer lines of credit (primarily SBL)
|
|
$
|
8,766
|
|
|
$
|
7,332
|
|
Commercial lines of credit
|
|
$
|
1,567
|
|
|
$
|
1,643
|
|
Unfunded loan commitments
|
|
$
|
628
|
|
|
$
|
541
|
|
Standby letters of credit
|
|
$
|
40
|
|
|
$
|
41
|
|
$ in millions
|
|
Net investment hedges
|
|
Currency translations
|
|
Subtotal: net investment hedges and currency translations
|
|
Available- for-sale securities
|
|
Cash flow hedges
|
|
Total
|
||||||||||||
Three months ended June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
AOCI as of beginning of period
|
|
$
|
114
|
|
|
$
|
(142
|
)
|
|
$
|
(28
|
)
|
|
$
|
(9
|
)
|
|
$
|
12
|
|
|
$
|
(25
|
)
|
OCI:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
OCI before reclassifications and taxes
|
|
(16
|
)
|
|
18
|
|
|
2
|
|
|
32
|
|
|
(24
|
)
|
|
10
|
|
||||||
Amounts reclassified from AOCI, before tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
||||||
Pre-tax net OCI
|
|
(16
|
)
|
|
18
|
|
|
2
|
|
|
32
|
|
|
(25
|
)
|
|
9
|
|
||||||
Income tax effect
|
|
4
|
|
|
—
|
|
|
4
|
|
|
(8
|
)
|
|
6
|
|
|
2
|
|
||||||
OCI for the period, net of tax
|
|
(12
|
)
|
|
18
|
|
|
6
|
|
|
24
|
|
|
(19
|
)
|
|
11
|
|
||||||
AOCI as of end of period
|
|
$
|
102
|
|
|
$
|
(124
|
)
|
|
$
|
(22
|
)
|
|
$
|
15
|
|
|
$
|
(7
|
)
|
|
$
|
(14
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Nine months ended June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
AOCI as of beginning of period
|
|
$
|
88
|
|
|
$
|
(111
|
)
|
|
$
|
(23
|
)
|
|
$
|
(46
|
)
|
|
$
|
42
|
|
|
$
|
(27
|
)
|
Cumulative effect of adoption of ASU 2016-01
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
(4
|
)
|
||||||
OCI:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
OCI before reclassifications and taxes
|
|
18
|
|
|
(13
|
)
|
|
5
|
|
|
90
|
|
|
(64
|
)
|
|
31
|
|
||||||
Amounts reclassified from AOCI, before tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
(4
|
)
|
||||||
Pre-tax net OCI
|
|
18
|
|
|
(13
|
)
|
|
5
|
|
|
90
|
|
|
(68
|
)
|
|
27
|
|
||||||
Income tax effect
|
|
(4
|
)
|
|
—
|
|
|
(4
|
)
|
|
(25
|
)
|
|
19
|
|
|
(10
|
)
|
||||||
OCI for the period, net of tax
|
|
14
|
|
|
(13
|
)
|
|
1
|
|
|
65
|
|
|
(49
|
)
|
|
17
|
|
||||||
AOCI as of end of period
|
|
$
|
102
|
|
|
$
|
(124
|
)
|
|
$
|
(22
|
)
|
|
$
|
15
|
|
|
$
|
(7
|
)
|
|
$
|
(14
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Three months ended June 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
AOCI as of beginning of period
|
|
$
|
85
|
|
|
$
|
(107
|
)
|
|
$
|
(22
|
)
|
|
$
|
(31
|
)
|
|
$
|
30
|
|
|
$
|
(23
|
)
|
OCI:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
OCI before reclassifications and taxes
|
|
18
|
|
|
(19
|
)
|
|
(1
|
)
|
|
(5
|
)
|
|
10
|
|
|
4
|
|
||||||
Amounts reclassified from AOCI, before tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
||||||
Pre-tax net OCI
|
|
18
|
|
|
(19
|
)
|
|
(1
|
)
|
|
(5
|
)
|
|
9
|
|
|
3
|
|
||||||
Income tax effect
|
|
(5
|
)
|
|
—
|
|
|
(5
|
)
|
|
1
|
|
|
(3
|
)
|
|
(7
|
)
|
||||||
OCI for the period, net of tax
|
|
13
|
|
|
(19
|
)
|
|
(6
|
)
|
|
(4
|
)
|
|
6
|
|
|
(4
|
)
|
||||||
AOCI as of end of period
|
|
$
|
98
|
|
|
$
|
(126
|
)
|
|
$
|
(28
|
)
|
|
$
|
(35
|
)
|
|
$
|
36
|
|
|
$
|
(27
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Nine months ended June 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
AOCI as of beginning of period
|
|
$
|
60
|
|
|
$
|
(80
|
)
|
|
$
|
(20
|
)
|
|
$
|
(2
|
)
|
|
$
|
7
|
|
|
$
|
(15
|
)
|
Cumulative effect of adoption of ASU 2018-02
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
2
|
|
|
—
|
|
||||||
OCI:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
OCI before reclassifications and taxes
|
|
52
|
|
|
(46
|
)
|
|
6
|
|
|
(45
|
)
|
|
39
|
|
|
—
|
|
||||||
Amounts reclassified from AOCI, before tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
||||||
Pre-tax net OCI
|
|
52
|
|
|
(46
|
)
|
|
6
|
|
|
(45
|
)
|
|
40
|
|
|
1
|
|
||||||
Income tax effect
|
|
(14
|
)
|
|
—
|
|
|
(14
|
)
|
|
14
|
|
|
(13
|
)
|
|
(13
|
)
|
||||||
OCI for the period, net of tax
|
|
38
|
|
|
(46
|
)
|
|
(8
|
)
|
|
(31
|
)
|
|
27
|
|
|
(12
|
)
|
||||||
AOCI as of end of period
|
|
$
|
98
|
|
|
$
|
(126
|
)
|
|
$
|
(28
|
)
|
|
$
|
(35
|
)
|
|
$
|
36
|
|
|
$
|
(27
|
)
|
|
|
Three months ended June 30, 2019
|
||||||||||||||||||||||
$ in millions
|
|
Private Client Group
|
|
Capital Markets
|
|
Asset Management
|
|
RJ Bank
|
|
Other and intersegment eliminations
|
|
Total
|
||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Asset management and related administrative fees
|
|
$
|
718
|
|
|
$
|
2
|
|
|
$
|
165
|
|
|
$
|
—
|
|
|
$
|
(6
|
)
|
|
$
|
879
|
|
Brokerage revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Securities commissions:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Mutual and other fund products
|
|
147
|
|
|
1
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
150
|
|
||||||
Insurance and annuity products
|
|
105
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
105
|
|
||||||
Equities, ETFs and fixed income products
|
|
74
|
|
|
29
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
103
|
|
||||||
Subtotal securities commissions
|
|
326
|
|
|
30
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
358
|
|
||||||
Principal transactions (1)
|
|
20
|
|
|
74
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
93
|
|
||||||
Total brokerage revenues
|
|
346
|
|
|
104
|
|
|
2
|
|
|
—
|
|
|
(1
|
)
|
|
451
|
|
||||||
Account and services fees:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Mutual fund and annuity service fees
|
|
85
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
84
|
|
||||||
RJBDP fees
|
|
111
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
(46
|
)
|
|
66
|
|
||||||
Client account and other fees
|
|
32
|
|
|
1
|
|
|
7
|
|
|
—
|
|
|
(7
|
)
|
|
33
|
|
||||||
Total account and service fees
|
|
228
|
|
|
1
|
|
|
8
|
|
|
—
|
|
|
(54
|
)
|
|
183
|
|
||||||
Investment banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Equity underwriting
|
|
10
|
|
|
27
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
37
|
|
||||||
Merger & acquisition and advisory
|
|
—
|
|
|
78
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
78
|
|
||||||
Fixed income investment banking
|
|
—
|
|
|
24
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
24
|
|
||||||
Total investment banking
|
|
10
|
|
|
129
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
139
|
|
||||||
Other:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Tax credit fund revenues
|
|
—
|
|
|
16
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16
|
|
||||||
All other (1)
|
|
3
|
|
|
(1
|
)
|
|
1
|
|
|
7
|
|
|
1
|
|
|
11
|
|
||||||
Total other
|
|
3
|
|
|
15
|
|
|
1
|
|
|
7
|
|
|
1
|
|
|
27
|
|
||||||
Total non-interest revenues
|
|
1,305
|
|
|
251
|
|
|
176
|
|
|
7
|
|
|
(60
|
)
|
|
1,679
|
|
||||||
Interest income (1)
|
|
56
|
|
|
10
|
|
|
1
|
|
|
246
|
|
|
8
|
|
|
321
|
|
||||||
Total revenues
|
|
1,361
|
|
|
261
|
|
|
177
|
|
|
253
|
|
|
(52
|
)
|
|
2,000
|
|
||||||
Interest expense
|
|
(10
|
)
|
|
(10
|
)
|
|
—
|
|
|
(38
|
)
|
|
(15
|
)
|
|
(73
|
)
|
||||||
Net revenues
|
|
$
|
1,351
|
|
|
$
|
251
|
|
|
$
|
177
|
|
|
$
|
215
|
|
|
$
|
(67
|
)
|
|
$
|
1,927
|
|
|
|
Three months ended June 30, 2018
|
||||||||||||||||||||||
$ in millions
|
|
Private Client Group
|
|
Capital Markets
|
|
Asset Management
|
|
RJ Bank
|
|
Other and intersegment eliminations
|
|
Total
|
||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Asset management and related administrative fees
|
|
$
|
636
|
|
|
$
|
1
|
|
|
$
|
157
|
|
|
$
|
—
|
|
|
$
|
(4
|
)
|
|
$
|
790
|
|
Brokerage revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Securities commissions:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Mutual and other fund products
|
|
172
|
|
|
2
|
|
|
3
|
|
|
—
|
|
|
(3
|
)
|
|
174
|
|
||||||
Insurance and annuity products
|
|
97
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
97
|
|
||||||
Equities, ETFs and fixed income products
|
|
84
|
|
|
40
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
124
|
|
||||||
Subtotal securities commissions
|
|
353
|
|
|
42
|
|
|
3
|
|
|
—
|
|
|
(3
|
)
|
|
395
|
|
||||||
Principal transactions (1)
|
|
22
|
|
|
52
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
73
|
|
||||||
Total brokerage revenues
|
|
375
|
|
|
94
|
|
|
3
|
|
|
—
|
|
|
(4
|
)
|
|
468
|
|
||||||
Account and services fees:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Mutual fund and annuity service fees
|
|
85
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
83
|
|
||||||
RJBDP fees
|
|
94
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
(24
|
)
|
|
71
|
|
||||||
Client account and other fees
|
|
30
|
|
|
2
|
|
|
8
|
|
|
—
|
|
|
(7
|
)
|
|
33
|
|
||||||
Total account and service fees
|
|
209
|
|
|
2
|
|
|
9
|
|
|
—
|
|
|
(33
|
)
|
|
187
|
|
||||||
Investment banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Equity underwriting
|
|
9
|
|
|
30
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
39
|
|
||||||
Merger & acquisition and advisory
|
|
—
|
|
|
85
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
85
|
|
||||||
Fixed income investment banking
|
|
—
|
|
|
21
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21
|
|
||||||
Total investment banking
|
|
9
|
|
|
136
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
145
|
|
||||||
Other:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Tax credit fund revenues
|
|
—
|
|
|
12
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12
|
|
||||||
All other (1)
|
|
8
|
|
|
(2
|
)
|
|
(1
|
)
|
|
8
|
|
|
5
|
|
|
18
|
|
||||||
Total other
|
|
8
|
|
|
10
|
|
|
(1
|
)
|
|
8
|
|
|
5
|
|
|
30
|
|
||||||
Total non-interest revenues
|
|
1,237
|
|
|
243
|
|
|
168
|
|
|
8
|
|
|
(36
|
)
|
|
1,620
|
|
||||||
Interest income (1)
|
|
50
|
|
|
9
|
|
|
—
|
|
|
205
|
|
|
7
|
|
|
271
|
|
||||||
Total revenues
|
|
1,287
|
|
|
252
|
|
|
168
|
|
|
213
|
|
|
(29
|
)
|
|
1,891
|
|
||||||
Interest expense
|
|
(8
|
)
|
|
(9
|
)
|
|
—
|
|
|
(25
|
)
|
|
(12
|
)
|
|
(54
|
)
|
||||||
Net revenues
|
|
$
|
1,279
|
|
|
$
|
243
|
|
|
$
|
168
|
|
|
$
|
188
|
|
|
$
|
(41
|
)
|
|
$
|
1,837
|
|
|
|
Nine Months Ended June 30, 2019
|
||||||||||||||||||||||
$ in millions
|
|
Private Client Group
|
|
Capital Markets
|
|
Asset Management
|
|
RJ Bank
|
|
Other and intersegment eliminations
|
|
Total
|
||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Asset management and related administrative fees
|
|
$
|
2,063
|
|
|
$
|
5
|
|
|
$
|
475
|
|
|
$
|
—
|
|
|
$
|
(16
|
)
|
|
$
|
2,527
|
|
Brokerage revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Securities commissions:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Mutual and other fund products
|
|
449
|
|
|
4
|
|
|
7
|
|
|
—
|
|
|
(2
|
)
|
|
458
|
|
||||||
Insurance and annuity products
|
|
308
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
308
|
|
||||||
Equities, ETFs and fixed income products
|
|
232
|
|
|
99
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
329
|
|
||||||
Subtotal securities commissions
|
|
989
|
|
|
103
|
|
|
7
|
|
|
—
|
|
|
(4
|
)
|
|
1,095
|
|
||||||
Principal transactions (1)
|
|
59
|
|
|
203
|
|
|
—
|
|
|
1
|
|
|
(1
|
)
|
|
262
|
|
||||||
Total brokerage revenues
|
|
1,048
|
|
|
306
|
|
|
7
|
|
|
1
|
|
|
(5
|
)
|
|
1,357
|
|
||||||
Account and services fees:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Mutual fund and annuity service fees
|
|
250
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
(9
|
)
|
|
243
|
|
||||||
RJBDP fees
|
|
342
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
(131
|
)
|
|
214
|
|
||||||
Client account and other fees
|
|
92
|
|
|
3
|
|
|
22
|
|
|
—
|
|
|
(15
|
)
|
|
102
|
|
||||||
Total account and service fees
|
|
684
|
|
|
3
|
|
|
27
|
|
|
—
|
|
|
(155
|
)
|
|
559
|
|
||||||
Investment banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Equity underwriting
|
|
25
|
|
|
72
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
97
|
|
||||||
Merger & acquisition and advisory
|
|
—
|
|
|
279
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
279
|
|
||||||
Fixed income investment banking
|
|
—
|
|
|
63
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
63
|
|
||||||
Total investment banking
|
|
25
|
|
|
414
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
439
|
|
||||||
Other:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Tax credit fund revenues
|
|
—
|
|
|
49
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
49
|
|
||||||
All other (1)
|
|
19
|
|
|
1
|
|
|
1
|
|
|
19
|
|
|
6
|
|
|
46
|
|
||||||
Total other
|
|
19
|
|
|
50
|
|
|
1
|
|
|
19
|
|
|
6
|
|
|
95
|
|
||||||
Total non-interest revenues
|
|
3,839
|
|
|
778
|
|
|
510
|
|
|
20
|
|
|
(170
|
)
|
|
4,977
|
|
||||||
Interest income (1)
|
|
170
|
|
|
29
|
|
|
3
|
|
|
732
|
|
|
27
|
|
|
961
|
|
||||||
Total revenues
|
|
4,009
|
|
|
807
|
|
|
513
|
|
|
752
|
|
|
(143
|
)
|
|
5,938
|
|
||||||
Interest expense
|
|
(31
|
)
|
|
(26
|
)
|
|
—
|
|
|
(122
|
)
|
|
(42
|
)
|
|
(221
|
)
|
||||||
Net revenues
|
|
$
|
3,978
|
|
|
$
|
781
|
|
|
$
|
513
|
|
|
$
|
630
|
|
|
$
|
(185
|
)
|
|
$
|
5,717
|
|
|
|
Nine Months Ended June 30, 2018
|
||||||||||||||||||||||
$ in millions
|
|
Private Client Group
|
|
Capital Markets
|
|
Asset Management
|
|
RJ Bank
|
|
Other and intersegment eliminations
|
|
Total
|
||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Asset management and related administrative fees
|
|
$
|
1,843
|
|
|
$
|
6
|
|
|
$
|
450
|
|
|
$
|
—
|
|
|
$
|
(12
|
)
|
|
$
|
2,287
|
|
Brokerage revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Securities commissions:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Mutual and other fund products
|
|
535
|
|
|
6
|
|
|
9
|
|
|
—
|
|
|
(4
|
)
|
|
546
|
|
||||||
Insurance and annuity products
|
|
308
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
308
|
|
||||||
Equities, ETFs and fixed income products
|
|
270
|
|
|
114
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
382
|
|
||||||
Subtotal securities commissions
|
|
1,113
|
|
|
120
|
|
|
9
|
|
|
—
|
|
|
(6
|
)
|
|
1,236
|
|
||||||
Principal transactions (1)
|
|
62
|
|
|
193
|
|
|
—
|
|
|
1
|
|
|
(1
|
)
|
|
255
|
|
||||||
Total brokerage revenues
|
|
1,175
|
|
|
313
|
|
|
9
|
|
|
1
|
|
|
(7
|
)
|
|
1,491
|
|
||||||
Account and services fees:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Mutual fund and annuity service fees
|
|
246
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
(6
|
)
|
|
241
|
|
||||||
RJBDP fees
|
|
265
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
(67
|
)
|
|
201
|
|
||||||
Client account and other fees
|
|
85
|
|
|
4
|
|
|
18
|
|
|
—
|
|
|
(14
|
)
|
|
93
|
|
||||||
Total account and service fees
|
|
596
|
|
|
4
|
|
|
22
|
|
|
—
|
|
|
(87
|
)
|
|
535
|
|
||||||
Investment banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Equity underwriting
|
|
25
|
|
|
66
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
91
|
|
||||||
Merger & acquisition and advisory
|
|
—
|
|
|
200
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
200
|
|
||||||
Fixed income investment banking
|
|
—
|
|
|
58
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
58
|
|
||||||
Total investment banking
|
|
25
|
|
|
324
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
349
|
|
||||||
Other:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Tax credit fund revenues
|
|
—
|
|
|
40
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
40
|
|
||||||
All other (1)
|
|
24
|
|
|
—
|
|
|
—
|
|
|
16
|
|
|
20
|
|
|
60
|
|
||||||
Total other
|
|
24
|
|
|
40
|
|
|
—
|
|
|
16
|
|
|
20
|
|
|
100
|
|
||||||
Total non-interest revenues
|
|
3,663
|
|
|
687
|
|
|
481
|
|
|
17
|
|
|
(86
|
)
|
|
4,762
|
|
||||||
Interest income (1)
|
|
140
|
|
|
24
|
|
|
1
|
|
|
571
|
|
|
16
|
|
|
752
|
|
||||||
Total revenues
|
|
3,803
|
|
|
711
|
|
|
482
|
|
|
588
|
|
|
(70
|
)
|
|
5,514
|
|
||||||
Interest expense
|
|
(19
|
)
|
|
(21
|
)
|
|
—
|
|
|
(56
|
)
|
|
(43
|
)
|
|
(139
|
)
|
||||||
Net revenues
|
|
$
|
3,784
|
|
|
$
|
690
|
|
|
$
|
482
|
|
|
$
|
532
|
|
|
$
|
(113
|
)
|
|
$
|
5,375
|
|
|
|
Three months ended June 30,
|
|
Nine months ended June 30,
|
||||||||||||
$ in millions
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Interest income:
|
|
|
|
|
|
|
|
|
||||||||
Cash segregated pursuant to regulations
|
|
$
|
13
|
|
|
$
|
14
|
|
|
$
|
42
|
|
|
$
|
40
|
|
Trading instruments
|
|
7
|
|
|
7
|
|
|
20
|
|
|
17
|
|
||||
Available-for-sale securities
|
|
18
|
|
|
14
|
|
|
51
|
|
|
37
|
|
||||
Margin loans
|
|
30
|
|
|
28
|
|
|
93
|
|
|
77
|
|
||||
Bank loans, net of unearned income
|
|
221
|
|
|
186
|
|
|
655
|
|
|
519
|
|
||||
Loans to financial advisors
|
|
5
|
|
|
4
|
|
|
14
|
|
|
11
|
|
||||
Corporate cash and all other
|
|
27
|
|
|
18
|
|
|
86
|
|
|
51
|
|
||||
Total interest income
|
|
$
|
321
|
|
|
$
|
271
|
|
|
$
|
961
|
|
|
$
|
752
|
|
Interest expense:
|
|
|
|
|
|
|
|
|
|
|
||||||
Bank deposits
|
|
$
|
33
|
|
|
$
|
19
|
|
|
$
|
105
|
|
|
$
|
39
|
|
Trading instruments sold but not yet purchased
|
|
2
|
|
|
2
|
|
|
6
|
|
|
5
|
|
||||
Brokerage client payables
|
|
5
|
|
|
4
|
|
|
16
|
|
|
10
|
|
||||
Other borrowings
|
|
5
|
|
|
6
|
|
|
16
|
|
|
17
|
|
||||
Senior notes payable
|
|
19
|
|
|
19
|
|
|
55
|
|
|
55
|
|
||||
Other
|
|
9
|
|
|
4
|
|
|
23
|
|
|
13
|
|
||||
Total interest expense
|
|
73
|
|
|
54
|
|
|
221
|
|
|
139
|
|
||||
Net interest income
|
|
248
|
|
|
217
|
|
|
740
|
|
|
613
|
|
||||
Bank loan loss (provision)/benefit
|
|
5
|
|
|
(5
|
)
|
|
(16
|
)
|
|
(14
|
)
|
||||
Net interest income after bank loan loss (provision)/benefit
|
|
$
|
253
|
|
|
$
|
212
|
|
|
$
|
724
|
|
|
$
|
599
|
|
|
|
Actual
|
|
Requirement for capital
adequacy purposes
|
|
To be well capitalized
under regulatory provisions
|
|||||||||||||||
$ in millions
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|||||||||
RJF as of June 30, 2019:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
CET1
|
|
$
|
5,854
|
|
|
24.2
|
%
|
|
$
|
1,089
|
|
|
4.5
|
%
|
|
$
|
1,572
|
|
|
6.5
|
%
|
Tier 1 capital
|
|
$
|
5,854
|
|
|
24.2
|
%
|
|
$
|
1,451
|
|
|
6.0
|
%
|
|
$
|
1,935
|
|
|
8.0
|
%
|
Total capital
|
|
$
|
6,089
|
|
|
25.2
|
%
|
|
$
|
1,935
|
|
|
8.0
|
%
|
|
$
|
2,419
|
|
|
10.0
|
%
|
Tier 1 leverage
|
|
$
|
5,854
|
|
|
15.7
|
%
|
|
$
|
1,496
|
|
|
4.0
|
%
|
|
$
|
1,870
|
|
|
5.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
RJF as of September 30, 2018:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
CET1
|
|
$
|
5,718
|
|
|
24.3
|
%
|
|
$
|
1,057
|
|
|
4.5
|
%
|
|
$
|
1,527
|
|
|
6.5
|
%
|
Tier 1 capital
|
|
$
|
5,718
|
|
|
24.3
|
%
|
|
$
|
1,410
|
|
|
6.0
|
%
|
|
$
|
1,880
|
|
|
8.0
|
%
|
Total capital
|
|
$
|
5,941
|
|
|
25.3
|
%
|
|
$
|
1,880
|
|
|
8.0
|
%
|
|
$
|
2,350
|
|
|
10.0
|
%
|
Tier 1 leverage
|
|
$
|
5,718
|
|
|
15.8
|
%
|
|
$
|
1,451
|
|
|
4.0
|
%
|
|
$
|
1,814
|
|
|
5.0
|
%
|
|
|
Actual
|
|
Requirement for capital
adequacy purposes
|
|
To be well capitalized
under regulatory provisions
|
|||||||||||||||
$ in millions
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|||||||||
RJ Bank as of June 30, 2019:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
CET1
|
|
$
|
2,190
|
|
|
12.8
|
%
|
|
$
|
768
|
|
|
4.5
|
%
|
|
$
|
1,109
|
|
|
6.5
|
%
|
Tier 1 capital
|
|
$
|
2,190
|
|
|
12.8
|
%
|
|
$
|
1,024
|
|
|
6.0
|
%
|
|
$
|
1,365
|
|
|
8.0
|
%
|
Total capital
|
|
$
|
2,403
|
|
|
14.1
|
%
|
|
$
|
1,365
|
|
|
8.0
|
%
|
|
$
|
1,706
|
|
|
10.0
|
%
|
Tier 1 leverage
|
|
$
|
2,190
|
|
|
8.8
|
%
|
|
$
|
991
|
|
|
4.0
|
%
|
|
$
|
1,239
|
|
|
5.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
RJ Bank as of September 30, 2018:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
CET1
|
|
$
|
2,029
|
|
|
12.7
|
%
|
|
$
|
721
|
|
|
4.5
|
%
|
|
$
|
1,042
|
|
|
6.5
|
%
|
Tier 1 capital
|
|
$
|
2,029
|
|
|
12.7
|
%
|
|
$
|
961
|
|
|
6.0
|
%
|
|
$
|
1,282
|
|
|
8.0
|
%
|
Total capital
|
|
$
|
2,229
|
|
|
13.9
|
%
|
|
$
|
1,282
|
|
|
8.0
|
%
|
|
$
|
1,602
|
|
|
10.0
|
%
|
Tier 1 leverage
|
|
$
|
2,029
|
|
|
8.8
|
%
|
|
$
|
926
|
|
|
4.0
|
%
|
|
$
|
1,158
|
|
|
5.0
|
%
|
$ in millions
|
|
June 30, 2019
|
|
September 30, 2018
|
||||
Raymond James & Associates, Inc.:
|
|
|
|
|
||||
(Alternative Method elected)
|
|
|
|
|
||||
Net capital as a percent of aggregate debit items
|
|
41.9
|
%
|
|
28.2
|
%
|
||
Net capital
|
|
$
|
1,088
|
|
|
$
|
934
|
|
Less: required net capital
|
|
(52
|
)
|
|
(66
|
)
|
||
Excess net capital
|
|
$
|
1,036
|
|
|
$
|
868
|
|
|
|
Three months ended June 30,
|
|
Nine months ended June 30,
|
||||||||||||
in millions, except per share amounts
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Income for basic earnings per common share:
|
|
|
|
|
|
|
|
|
||||||||
Net income attributable to RJF
|
|
$
|
259
|
|
|
$
|
232
|
|
|
$
|
769
|
|
|
$
|
594
|
|
Less allocation of earnings and dividends to participating securities
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
||||
Net income attributable to RJF common shareholders
|
|
$
|
258
|
|
|
$
|
232
|
|
|
$
|
768
|
|
|
$
|
593
|
|
Income for diluted earnings per common share:
|
|
|
|
|
|
|
|
|
|
|
||||||
Net income attributable to RJF
|
|
$
|
259
|
|
|
$
|
232
|
|
|
$
|
769
|
|
|
$
|
594
|
|
Less allocation of earnings and dividends to participating securities
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
||||
Net income attributable to RJF common shareholders
|
|
$
|
258
|
|
|
$
|
232
|
|
|
$
|
768
|
|
|
$
|
593
|
|
Common shares:
|
|
|
|
|
|
|
|
|
|
|
||||||
Average common shares in basic computation
|
|
140.4
|
|
|
145.6
|
|
|
141.8
|
|
|
145.2
|
|
||||
Dilutive effect of outstanding stock options and certain RSUs
|
|
3.2
|
|
|
3.8
|
|
|
3.0
|
|
|
3.6
|
|
||||
Average common shares used in diluted computation
|
|
143.6
|
|
|
149.4
|
|
|
144.8
|
|
|
148.8
|
|
||||
Earnings per common share:
|
|
|
|
|
|
|
|
|
|
|
||||||
Basic
|
|
$
|
1.84
|
|
|
$
|
1.59
|
|
|
$
|
5.42
|
|
|
$
|
4.08
|
|
Diluted
|
|
$
|
1.80
|
|
|
$
|
1.55
|
|
|
$
|
5.30
|
|
|
$
|
3.99
|
|
Stock options and certain RSUs excluded from weighted-average diluted common shares because their effect would be antidilutive
|
|
0.2
|
|
|
0.2
|
|
|
0.5
|
|
|
1.1
|
|
|
Three months ended June 30,
|
|
Nine months ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Dividends per common share - declared
|
$
|
0.34
|
|
|
$
|
0.30
|
|
|
$
|
1.02
|
|
|
$
|
0.80
|
|
Dividends per common share - paid
|
$
|
0.34
|
|
|
$
|
0.25
|
|
|
$
|
0.98
|
|
|
$
|
0.72
|
|
|
|
Three months ended June 30,
|
|
Nine months ended June 30,
|
||||||||||||
$ in millions
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
|
||||||||
Private Client Group
|
|
$
|
1,361
|
|
|
$
|
1,287
|
|
|
$
|
4,009
|
|
|
$
|
3,803
|
|
Capital Markets
|
|
261
|
|
|
252
|
|
|
807
|
|
|
711
|
|
||||
Asset Management
|
|
177
|
|
|
168
|
|
|
513
|
|
|
482
|
|
||||
RJ Bank
|
|
253
|
|
|
213
|
|
|
752
|
|
|
588
|
|
||||
Other
|
|
15
|
|
|
16
|
|
|
55
|
|
|
53
|
|
||||
Intersegment eliminations
|
|
(67
|
)
|
|
(45
|
)
|
|
(198
|
)
|
|
(123
|
)
|
||||
Total revenues
|
|
$
|
2,000
|
|
|
$
|
1,891
|
|
|
$
|
5,938
|
|
|
$
|
5,514
|
|
Income/(loss) excluding noncontrolling interests and before provision for income taxes:
|
|
|
|
|
|
|
|
|
||||||||
Private Client Group
|
|
$
|
140
|
|
|
$
|
132
|
|
|
$
|
436
|
|
|
$
|
445
|
|
Capital Markets
|
|
24
|
|
|
22
|
|
|
77
|
|
|
43
|
|
||||
Asset Management
|
|
65
|
|
|
58
|
|
|
184
|
|
|
171
|
|
||||
RJ Bank
|
|
138
|
|
|
130
|
|
|
384
|
|
|
362
|
|
||||
Other
|
|
(25
|
)
|
|
(24
|
)
|
|
(60
|
)
|
|
(60
|
)
|
||||
Pre-tax income excluding noncontrolling interests
|
|
342
|
|
|
318
|
|
|
1,021
|
|
|
961
|
|
||||
Net loss attributable to noncontrolling interests
|
|
(2
|
)
|
|
—
|
|
|
(16
|
)
|
|
—
|
|
||||
Income including noncontrolling interests and before provision for income taxes
|
|
$
|
340
|
|
|
$
|
318
|
|
|
$
|
1,005
|
|
|
$
|
961
|
|
|
|
Three months ended June 30,
|
|
Nine months ended June 30,
|
||||||||||||
$ in millions
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net interest income/(expense):
|
|
|
|
|
|
|
|
|
||||||||
Private Client Group
|
|
$
|
46
|
|
|
$
|
42
|
|
|
$
|
139
|
|
|
$
|
121
|
|
Capital Markets
|
|
—
|
|
|
—
|
|
|
3
|
|
|
3
|
|
||||
Asset Management
|
|
1
|
|
|
—
|
|
|
3
|
|
|
1
|
|
||||
RJ Bank
|
|
208
|
|
|
180
|
|
|
610
|
|
|
515
|
|
||||
Other and intersegment eliminations
|
|
(7
|
)
|
|
(5
|
)
|
|
(15
|
)
|
|
(27
|
)
|
||||
Net interest income
|
|
$
|
248
|
|
|
$
|
217
|
|
|
$
|
740
|
|
|
$
|
613
|
|
$ in millions
|
|
June 30, 2019
|
|
September 30, 2018
|
||||
Total assets:
|
|
|
|
|
||||
Private Client Group
|
|
$
|
8,877
|
|
|
$
|
10,173
|
|
Capital Markets
|
|
2,420
|
|
|
2,279
|
|
||
Asset Management
|
|
390
|
|
|
387
|
|
||
RJ Bank
|
|
25,501
|
|
|
22,922
|
|
||
Other
|
|
1,489
|
|
|
1,652
|
|
||
Total
|
|
$
|
38,677
|
|
|
$
|
37,413
|
|
$ in millions
|
|
June 30, 2019
|
|
September 30, 2018
|
||||
Goodwill:
|
|
|
|
|
||||
Private Client Group
|
|
$
|
276
|
|
|
$
|
276
|
|
Capital Markets
|
|
139
|
|
|
133
|
|
||
Asset Management
|
|
69
|
|
|
69
|
|
||
Total
|
|
$
|
484
|
|
|
$
|
478
|
|
|
|
Three months ended June 30,
|
|
Nine months ended June 30,
|
||||||||||||
$ in millions
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
$
|
1,858
|
|
|
$
|
1,750
|
|
|
$
|
5,508
|
|
|
$
|
5,094
|
|
Canada
|
|
110
|
|
|
107
|
|
|
321
|
|
|
316
|
|
||||
Europe
|
|
32
|
|
|
34
|
|
|
109
|
|
|
104
|
|
||||
Total
|
|
$
|
2,000
|
|
|
$
|
1,891
|
|
|
$
|
5,938
|
|
|
$
|
5,514
|
|
|
|
|
|
|
|
|
|
|
||||||||
Pre-tax income/(loss) excluding noncontrolling interests:
|
|
|
|
|
|
|
|
|
|
|||||||
U.S.
|
|
$
|
330
|
|
|
$
|
303
|
|
|
$
|
994
|
|
|
$
|
925
|
|
Canada
|
|
12
|
|
|
16
|
|
|
35
|
|
|
39
|
|
||||
Europe (1)
|
|
—
|
|
|
(1
|
)
|
|
(8
|
)
|
|
(3
|
)
|
||||
Total
|
|
$
|
342
|
|
|
$
|
318
|
|
|
$
|
1,021
|
|
|
$
|
961
|
|
(1)
|
The pre-tax loss in Europe for the nine months ended June 30, 2019 reflects a $15 million loss on the sale of our operations related to research, sales and trading of European equities incurred during the first fiscal quarter of 2019.
|
$ in millions
|
|
June 30, 2019
|
|
September 30, 2018
|
||||
Total assets:
|
|
|
|
|
||||
U.S.
|
|
$
|
35,909
|
|
|
$
|
34,651
|
|
Canada
|
|
2,673
|
|
|
2,673
|
|
||
Europe
|
|
95
|
|
|
89
|
|
||
Total
|
|
$
|
38,677
|
|
|
$
|
37,413
|
|
$ in millions
|
|
June 30, 2019
|
|
September 30, 2018
|
||||
Goodwill:
|
|
|
|
|
||||
U.S.
|
|
$
|
433
|
|
|
$
|
426
|
|
Canada
|
|
42
|
|
|
43
|
|
||
Europe
|
|
9
|
|
|
9
|
|
||
Total
|
|
$
|
484
|
|
|
$
|
478
|
|
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
INDEX
|
|
|
PAGE
|
Factors affecting “forward-looking statements”
|
|
Introduction
|
|
Executive overview
|
|
Segments
|
|
Reconciliation of GAAP measures to non-GAAP measures
|
|
Net interest analysis
|
|
Results of Operations
|
|
Private Client Group
|
|
Capital Markets
|
|
Asset Management
|
|
RJ Bank
|
|
Other
|
|
Certain statistical disclosures by bank holding companies
|
|
Liquidity and capital resources
|
|
Sources of liquidity
|
|
Statement of financial condition analysis
|
|
Contractual obligations
|
|
Regulatory
|
|
Critical accounting estimates
|
|
Recent accounting developments
|
|
Off-balance sheet arrangements
|
|
Effects of inflation
|
|
Risk management
|
•
|
Our PCG segment generated net revenues of $1.35 billion, an increase of 6%, and pre-tax income also increased 6% to $140 million. The segment benefited from an increase in asset management and related administrative fees, primarily due to starting
|
•
|
Capital Markets net revenues of $251 million increased 3% and pre-tax income increased 9% to $24 million. The increase in net revenues was primarily due to an increase in fixed income brokerage revenues, partially offset by a decline in equity brokerage revenues and investment banking revenues. Non-interest expenses increased $4 million, or 2%, reflecting an increase in professional fees due to the gross-up of certain investment banking transaction-related expenses which were netted against revenues in previous years.
|
•
|
Our Asset Management segment net revenues of $177 million increased 5% and pre-tax income increased 12% to $65 million. Financial assets under management of $143.1 billion increased 6% over the prior year quarter primarily due to equity market appreciation and positive inflows from clients moving to fee-based alternatives from traditional transaction-based accounts.
|
•
|
RJ Bank net revenues of $215 million increased 14% and pre-tax income increased 6% to $138 million. The increase in net revenues resulted from an increase in net interest income due to growth in interest-earning assets and an increase in net interest margin, which was helped by higher short-term interest rates. Non-interest expenses increased $19 million, or 33%, largely due to the aforementioned increase in the per-account RJBDP servicing fee paid to PCG.
|
•
|
Our Other segment reflected a pre-tax loss that was comparable to the loss generated in the prior year quarter, as a decrease in private equity gains compared to the prior year quarter was offset by an increase in interest income, which was positively impacted by an increase in interest rates earned on higher corporate cash balances.
|
•
|
Our PCG segment generated net revenues of $3.98 billion a 5% increase, while pre-tax income of $436 million decreased 2%. The increase in net revenues was primarily attributable to an increase in asset management and related administrative fees, primarily due to higher assets in fee-based accounts compared with the prior year period. The segment also benefited from an increase in account and service fees related to RJBDP, the majority of which related to an increase in the per-account servicing fee from RJ Bank. These increases were partially offset by a decline in brokerage revenues. Non-interest expenses increased $203 million, or 6%, primarily resulting from an increase in financial advisor compensation-related expenses in line with the growth in revenues. Non-compensation expenses also increased $26 million, or 6% over the prior year period.
|
•
|
Capital Markets net revenues of $781 million increased 13% and pre-tax income increased significantly to $77 million. The increase in net revenues was primarily due to an increase in investment banking revenues, largely due to merger & acquisition activity. The decline in equity brokerage revenues was offset by an increase in fixed income brokerage revenues compared with the prior year period. Non-interest expenses increased $66 million, or 10%, primarily due to the aforementioned $15 million loss on the sale of our operations related to research, sales and trading of European equities, an increase in compensation-related expenses and an increase in professional fees due to the gross-up of certain investment banking transaction-related expenses, which were previously netted against revenues.
|
•
|
Our Asset Management segment net revenues of $513 million increased 6% and pre-tax income increased 8% to $184 million. The increase in net revenues reflected increases in fees from managed programs, a full period of results for Scout Investments and its Reams Asset Management division (“the Scout Group”), which was acquired in November 2017, and higher asset-based administration fees. Non-interest expenses increased $22 million, or 7%, primarily resulting from increased expenses related to the addition of the Scout Group.
|
•
|
RJ Bank net revenues increased 18% to $630 million and pre-tax income increased 6% to $384 million. The increase in net revenues primarily resulted from an increase in net interest income due to growth in interest-earning assets and an increase in net interest margin, lifted by higher short-term interest rates. Non-interest expenses increased $76 million, or 45%, primarily reflecting an increase in RJBDP servicing fees paid to PCG largely due to an increase in the per-account fee effective October 1, 2018.
|
•
|
Our Other segment reflected a pre-tax loss that was flat compared to the prior year period, as lower gains on private equity investments were offset by an increase in interest income.
|
|
|
Three months ended June 30,
|
|
Nine months ended June 30,
|
||||||||||||||||||
$ in millions
|
|
2019
|
|
2018
|
|
% change
|
|
2019
|
|
2018
|
|
% change
|
||||||||||
Total company
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net revenues
|
|
$
|
1,927
|
|
|
$
|
1,837
|
|
|
5
|
%
|
|
$
|
5,717
|
|
|
$
|
5,375
|
|
|
6
|
%
|
Pre-tax income
|
|
$
|
342
|
|
|
$
|
318
|
|
|
8
|
%
|
|
$
|
1,021
|
|
|
$
|
961
|
|
|
6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Private Client Group
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net revenues
|
|
$
|
1,351
|
|
|
$
|
1,279
|
|
|
6
|
%
|
|
$
|
3,978
|
|
|
$
|
3,784
|
|
|
5
|
%
|
Pre-tax income
|
|
$
|
140
|
|
|
$
|
132
|
|
|
6
|
%
|
|
$
|
436
|
|
|
$
|
445
|
|
|
(2
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital Markets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net revenues
|
|
$
|
251
|
|
|
$
|
243
|
|
|
3
|
%
|
|
$
|
781
|
|
|
$
|
690
|
|
|
13
|
%
|
Pre-tax income
|
|
$
|
24
|
|
|
$
|
22
|
|
|
9
|
%
|
|
$
|
77
|
|
|
$
|
43
|
|
|
79
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Asset Management
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net revenues
|
|
$
|
177
|
|
|
$
|
168
|
|
|
5
|
%
|
|
$
|
513
|
|
|
$
|
482
|
|
|
6
|
%
|
Pre-tax income
|
|
$
|
65
|
|
|
$
|
58
|
|
|
12
|
%
|
|
$
|
184
|
|
|
$
|
171
|
|
|
8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
RJ Bank
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net revenues
|
|
$
|
215
|
|
|
$
|
188
|
|
|
14
|
%
|
|
$
|
630
|
|
|
$
|
532
|
|
|
18
|
%
|
Pre-tax income
|
|
$
|
138
|
|
|
$
|
130
|
|
|
6
|
%
|
|
$
|
384
|
|
|
$
|
362
|
|
|
6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net revenues
|
|
$
|
(4
|
)
|
|
$
|
(2
|
)
|
|
(100
|
)%
|
|
$
|
(2
|
)
|
|
$
|
(3
|
)
|
|
33
|
%
|
Pre-tax loss
|
|
$
|
(25
|
)
|
|
$
|
(24
|
)
|
|
(4
|
)%
|
|
$
|
(60
|
)
|
|
$
|
(60
|
)
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Intersegment eliminations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net revenues
|
|
$
|
(63
|
)
|
|
$
|
(39
|
)
|
|
|
|
$
|
(183
|
)
|
|
$
|
(110
|
)
|
|
|
|
|
|
Nine months ended June 30,
|
||||||
$ in millions, except per share amounts
|
|
2019
|
|
2018
|
||||
Net income
|
|
$
|
769
|
|
|
$
|
594
|
|
Non-GAAP adjustments:
|
|
|
|
|
||||
Acquisition and disposition-related expenses
|
|
15
|
|
|
4
|
|
||
Tax effect of non-GAAP adjustments
|
|
—
|
|
|
(1
|
)
|
||
Impact of the Tax Act
|
|
—
|
|
|
117
|
|
||
Total non-GAAP adjustments, net of tax
|
|
15
|
|
|
120
|
|
||
Adjusted net income
|
|
$
|
784
|
|
|
$
|
714
|
|
Less allocation of earnings and dividends to participating securities
|
|
(1
|
)
|
|
(1
|
)
|
||
Adjusted net income attributable to RJF common shareholders
|
|
$
|
783
|
|
|
$
|
713
|
|
|
|
|
|
|
||||
Earnings per common share:
|
|
|
|
|
||||
Basic
|
|
$
|
5.42
|
|
|
$
|
4.08
|
|
Diluted
|
|
$
|
5.30
|
|
|
$
|
3.99
|
|
Adjusted basic
|
|
$
|
5.52
|
|
|
$
|
4.91
|
|
Adjusted diluted
|
|
$
|
5.41
|
|
|
$
|
4.79
|
|
|
|
|
|
|
||||
Average equity
|
|
$
|
6,345
|
|
|
$
|
5,844
|
|
Annualized return on equity
|
|
16.2
|
%
|
|
13.6
|
%
|
||
Adjusted average equity
|
|
$
|
6,356
|
|
|
$
|
5,934
|
|
Adjusted annualized return on equity
|
|
16.4
|
%
|
|
16.0
|
%
|
|
|
Three months ended June 30,
|
||||||||||||||||||||
|
|
2019
|
|
2018
|
||||||||||||||||||
$ in millions
|
|
Average
balance |
|
Interest
inc./exp. |
|
Average
yield/cost |
|
Average
balance |
|
Interest
inc./exp. |
|
Average
yield/cost |
||||||||||
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Assets segregated pursuant to regulations
|
|
$
|
1,613
|
|
|
$
|
13
|
|
|
3.22
|
%
|
|
$
|
2,438
|
|
|
$
|
14
|
|
|
2.22
|
%
|
Trading instruments
|
|
771
|
|
|
7
|
|
|
3.53
|
%
|
|
760
|
|
|
7
|
|
|
3.68
|
%
|
||||
Available-for-sale securities
|
|
2,901
|
|
|
18
|
|
|
2.41
|
%
|
|
2,534
|
|
|
14
|
|
|
2.11
|
%
|
||||
Margin loans
|
|
2,531
|
|
|
30
|
|
|
4.74
|
%
|
|
2,688
|
|
|
28
|
|
|
4.23
|
%
|
||||
Bank loans, net:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans held for investment:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
C&I loans
|
|
8,278
|
|
|
98
|
|
|
4.68
|
%
|
|
7,647
|
|
|
85
|
|
|
4.40
|
%
|
||||
CRE construction loans
|
|
248
|
|
|
4
|
|
|
5.45
|
%
|
|
182
|
|
|
2
|
|
|
5.23
|
%
|
||||
CRE loans
|
|
3,359
|
|
|
39
|
|
|
4.53
|
%
|
|
3,259
|
|
|
34
|
|
|
4.15
|
%
|
||||
Tax-exempt loans
|
|
1,291
|
|
|
9
|
|
|
2.79
|
%
|
|
1,191
|
|
|
8
|
|
|
2.58
|
%
|
||||
Residential mortgage loans
|
|
4,127
|
|
|
34
|
|
|
3.32
|
%
|
|
3,514
|
|
|
27
|
|
|
3.10
|
%
|
||||
SBL and other
|
|
3,125
|
|
|
36
|
|
|
4.64
|
%
|
|
2,741
|
|
|
29
|
|
|
4.26
|
%
|
||||
Loans held for sale
|
|
118
|
|
|
1
|
|
|
4.78
|
%
|
|
109
|
|
|
1
|
|
|
4.34
|
%
|
||||
Total bank loans, net
|
|
20,546
|
|
|
221
|
|
|
4.30
|
%
|
|
18,643
|
|
|
186
|
|
|
4.04
|
%
|
||||
Loans to financial advisors, net
|
|
912
|
|
|
5
|
|
|
2.06
|
%
|
|
895
|
|
|
4
|
|
|
1.70
|
%
|
||||
Corporate cash and all other
|
|
4,107
|
|
|
27
|
|
|
2.72
|
%
|
|
3,518
|
|
|
18
|
|
|
2.05
|
%
|
||||
Total interest-earning assets
|
|
$
|
33,381
|
|
|
$
|
321
|
|
|
3.85
|
%
|
|
$
|
31,476
|
|
|
$
|
271
|
|
|
3.44
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Bank deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Certificates of deposit
|
|
$
|
561
|
|
|
$
|
4
|
|
|
2.33
|
%
|
|
$
|
389
|
|
|
$
|
1
|
|
|
1.64
|
%
|
Savings, money market and NOW accounts
|
|
20,842
|
|
|
29
|
|
|
0.56
|
%
|
|
18,423
|
|
|
18
|
|
|
0.37
|
%
|
||||
Trading instruments sold but not yet purchased
|
|
307
|
|
|
2
|
|
|
2.39
|
%
|
|
294
|
|
|
2
|
|
|
2.72
|
%
|
||||
Brokerage client payables
|
|
3,108
|
|
|
5
|
|
|
0.64
|
%
|
|
4,061
|
|
|
4
|
|
|
0.44
|
%
|
||||
Other borrowings
|
|
897
|
|
|
5
|
|
|
2.20
|
%
|
|
901
|
|
|
6
|
|
|
2.32
|
%
|
||||
Senior notes payable
|
|
1,550
|
|
|
19
|
|
|
4.71
|
%
|
|
1,549
|
|
|
19
|
|
|
4.69
|
%
|
||||
Other
|
|
772
|
|
|
9
|
|
|
4.93
|
%
|
|
595
|
|
|
4
|
|
|
2.69
|
%
|
||||
Total interest-bearing liabilities
|
|
$
|
28,037
|
|
|
$
|
73
|
|
|
1.04
|
%
|
|
$
|
26,212
|
|
|
$
|
54
|
|
|
0.82
|
%
|
Net interest income
|
|
|
|
$
|
248
|
|
|
|
|
|
|
$
|
217
|
|
|
|
|
|
Nine months ended June 30,
|
||||||||||||||||||||
|
|
2019
|
|
2018
|
||||||||||||||||||
$ in millions
|
|
Average
balance
|
|
Interest
inc./exp.
|
|
Average
yield/cost
|
|
Average
balance
|
|
Interest
inc./exp.
|
|
Average
yield/cost
|
||||||||||
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Assets segregated pursuant to regulations
|
|
$
|
1,859
|
|
|
$
|
42
|
|
|
3.01
|
%
|
|
$
|
2,752
|
|
|
$
|
40
|
|
|
1.92
|
%
|
Trading instruments
|
|
727
|
|
|
20
|
|
|
3.66
|
%
|
|
702
|
|
|
17
|
|
|
3.23
|
%
|
||||
Available-for-sale securities
|
|
2,831
|
|
|
51
|
|
|
2.39
|
%
|
|
2,358
|
|
|
37
|
|
|
2.09
|
%
|
||||
Margin loans
|
|
2,620
|
|
|
93
|
|
|
4.73
|
%
|
|
2,559
|
|
|
77
|
|
|
4.03
|
%
|
||||
Bank loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans held for investment:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
C&I loans
|
|
8,065
|
|
|
286
|
|
|
4.67
|
%
|
|
7,538
|
|
|
237
|
|
|
4.15
|
%
|
||||
CRE construction loans
|
|
205
|
|
|
9
|
|
|
5.58
|
%
|
|
166
|
|
|
6
|
|
|
5.03
|
%
|
||||
CRE loans
|
|
3,433
|
|
|
120
|
|
|
4.60
|
%
|
|
3,160
|
|
|
95
|
|
|
3.97
|
%
|
||||
Tax-exempt loans
|
|
1,285
|
|
|
26
|
|
|
2.70
|
%
|
|
1,126
|
|
|
22
|
|
|
2.57
|
%
|
||||
Residential mortgage loans
|
|
3,999
|
|
|
100
|
|
|
3.32
|
%
|
|
3,363
|
|
|
78
|
|
|
3.08
|
%
|
||||
SBL and other
|
|
3,098
|
|
|
109
|
|
|
4.64
|
%
|
|
2,594
|
|
|
78
|
|
|
3.98
|
%
|
||||
Loans held for sale
|
|
149
|
|
|
5
|
|
|
4.87
|
%
|
|
123
|
|
|
3
|
|
|
3.83
|
%
|
||||
Total bank loans, net
|
|
20,234
|
|
|
655
|
|
|
4.32
|
%
|
|
18,070
|
|
|
519
|
|
|
3.85
|
%
|
||||
Loans to financial advisors, net
|
|
907
|
|
|
14
|
|
|
2.00
|
%
|
|
873
|
|
|
11
|
|
|
1.68
|
%
|
||||
Corporate cash and all other
|
|
4,674
|
|
|
86
|
|
|
2.50
|
%
|
|
3,882
|
|
|
51
|
|
|
1.75
|
%
|
||||
Total interest-earning assets
|
|
$
|
33,852
|
|
|
$
|
961
|
|
|
3.79
|
%
|
|
$
|
31,196
|
|
|
$
|
752
|
|
|
3.21
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Bank deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Certificates of deposit
|
|
$
|
527
|
|
|
$
|
9
|
|
|
2.20
|
%
|
|
$
|
353
|
|
|
$
|
4
|
|
|
1.60
|
%
|
Savings, money market and NOW accounts
|
|
20,689
|
|
|
96
|
|
|
0.62
|
%
|
|
18,193
|
|
|
35
|
|
|
0.25
|
%
|
||||
Trading instruments sold but not yet purchased
|
|
297
|
|
|
6
|
|
|
2.63
|
%
|
|
282
|
|
|
5
|
|
|
2.36
|
%
|
||||
Brokerage client payables
|
|
3,430
|
|
|
16
|
|
|
0.62
|
%
|
|
4,289
|
|
|
10
|
|
|
0.32
|
%
|
||||
Other borrowings
|
|
942
|
|
|
16
|
|
|
2.32
|
%
|
|
919
|
|
|
17
|
|
|
2.40
|
%
|
||||
Senior notes payable
|
|
1,550
|
|
|
55
|
|
|
4.70
|
%
|
|
1,549
|
|
|
55
|
|
|
4.69
|
%
|
||||
Other
|
|
759
|
|
|
23
|
|
|
3.95
|
%
|
|
591
|
|
|
13
|
|
|
2.93
|
%
|
||||
Total interest-bearing liabilities
|
|
$
|
28,194
|
|
|
$
|
221
|
|
|
1.05
|
%
|
|
$
|
26,176
|
|
|
$
|
139
|
|
|
0.71
|
%
|
Net interest income
|
|
|
|
|
$
|
740
|
|
|
|
|
|
|
|
|
$
|
613
|
|
|
|
|
|
|
Three months ended June 30,
|
|
Nine months ended June 30,
|
||||||||||||||||||
$ in millions
|
|
2019
|
|
2018
|
|
% change
|
|
2019
|
|
2018
|
|
% change
|
||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Asset management and related administrative fees
|
|
$
|
718
|
|
|
$
|
636
|
|
|
13
|
%
|
|
$
|
2,063
|
|
|
$
|
1,843
|
|
|
12
|
%
|
Brokerage revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Mutual and other fund products
|
|
147
|
|
|
172
|
|
|
(15
|
)%
|
|
449
|
|
|
535
|
|
|
(16
|
)%
|
||||
Insurance and annuity products
|
|
105
|
|
|
97
|
|
|
8
|
%
|
|
308
|
|
|
308
|
|
|
—
|
|
||||
Equities, ETFs and fixed income products
|
|
94
|
|
|
106
|
|
|
(11
|
)%
|
|
291
|
|
|
332
|
|
|
(12
|
)%
|
||||
Total brokerage revenues
|
|
346
|
|
|
375
|
|
|
(8
|
)%
|
|
1,048
|
|
|
1,175
|
|
|
(11
|
)%
|
||||
Investment banking
|
|
10
|
|
|
9
|
|
|
11
|
%
|
|
25
|
|
|
25
|
|
|
—
|
|
||||
Interest income
|
|
56
|
|
|
50
|
|
|
12
|
%
|
|
170
|
|
|
140
|
|
|
21
|
%
|
||||
Account and service fees:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Mutual fund and annuity service fees
|
|
85
|
|
|
85
|
|
|
—
|
|
|
250
|
|
|
246
|
|
|
2
|
%
|
||||
RJBDP fees:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Third-party banks
|
|
67
|
|
|
70
|
|
|
(4
|
)%
|
|
215
|
|
|
198
|
|
|
9
|
%
|
||||
RJ Bank
|
|
44
|
|
|
24
|
|
|
83
|
%
|
|
127
|
|
|
67
|
|
|
90
|
%
|
||||
Client account and other fees
|
|
32
|
|
|
30
|
|
|
7
|
%
|
|
92
|
|
|
85
|
|
|
8
|
%
|
||||
Total account and service fees
|
|
228
|
|
|
209
|
|
|
9
|
%
|
|
684
|
|
|
596
|
|
|
15
|
%
|
||||
All other
|
|
3
|
|
|
8
|
|
|
(63
|
)%
|
|
19
|
|
|
24
|
|
|
(21
|
)%
|
||||
Total revenues
|
|
1,361
|
|
|
1,287
|
|
|
6
|
%
|
|
4,009
|
|
|
3,803
|
|
|
5
|
%
|
||||
Interest expense
|
|
(10
|
)
|
|
(8
|
)
|
|
25
|
%
|
|
(31
|
)
|
|
(19
|
)
|
|
63
|
%
|
||||
Net revenues
|
|
1,351
|
|
|
1,279
|
|
|
6
|
%
|
|
3,978
|
|
|
3,784
|
|
|
5
|
%
|
||||
Non-interest expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Financial advisor compensation and benefit costs
|
|
805
|
|
|
759
|
|
|
6
|
%
|
|
2,358
|
|
|
2,258
|
|
|
4
|
%
|
||||
Administrative compensation and benefit costs
|
|
237
|
|
|
214
|
|
|
11
|
%
|
|
700
|
|
|
623
|
|
|
12
|
%
|
||||
Communications and information processing
|
|
57
|
|
|
55
|
|
|
4
|
%
|
|
174
|
|
|
164
|
|
|
6
|
%
|
||||
Occupancy and equipment costs
|
|
43
|
|
|
38
|
|
|
13
|
%
|
|
122
|
|
|
114
|
|
|
7
|
%
|
||||
Business development
|
|
37
|
|
|
39
|
|
|
(5
|
)%
|
|
90
|
|
|
84
|
|
|
7
|
%
|
||||
Professional fees
|
|
8
|
|
|
12
|
|
|
(33
|
)%
|
|
24
|
|
|
29
|
|
|
(17
|
)%
|
||||
All other
|
|
24
|
|
|
30
|
|
|
(20
|
)%
|
|
74
|
|
|
67
|
|
|
10
|
%
|
||||
Total non-interest expenses
|
|
1,211
|
|
|
1,147
|
|
|
6
|
%
|
|
3,542
|
|
|
3,339
|
|
|
6
|
%
|
||||
Pre-tax income
|
|
$
|
140
|
|
|
$
|
132
|
|
|
6
|
%
|
|
$
|
436
|
|
|
$
|
445
|
|
|
(2
|
)%
|
Pre-tax margin on net revenues
|
|
10.4
|
%
|
|
10.3
|
%
|
|
|
|
11.0
|
%
|
|
11.8
|
%
|
|
|
|
|
As of
|
||||||||||||||||||||||
$ in billions
|
|
June 30,
2019 |
|
March 31,
2019 |
|
September 30,
2018 |
|
June 30,
2018 |
|
March 31,
2018 |
|
September 30,
2017 |
||||||||||||
Assets under administration (“AUA”)
|
|
$
|
787.4
|
|
|
$
|
760.0
|
|
|
$
|
755.7
|
|
|
$
|
719.5
|
|
|
$
|
694.8
|
|
|
$
|
659.5
|
|
Assets in fee-based accounts (1)
|
|
$
|
398.0
|
|
|
$
|
378.4
|
|
|
$
|
366.3
|
|
|
$
|
343.1
|
|
|
$
|
325.1
|
|
|
$
|
294.5
|
|
Percent of AUA in fee-based accounts
|
|
50.5
|
%
|
|
49.8
|
%
|
|
48.5
|
%
|
|
47.7
|
%
|
|
46.8
|
%
|
|
44.7
|
%
|
(1)
|
A portion of our “Assets in fee-based accounts” is overseen by our Asset Management segment, specifically our Asset Management Services division of RJ&A (“AMS”). 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.”
|
|
June 30,
2019 |
|
September 30,
2018 |
|
June 30,
2018 |
|||
Employees
|
3,228
|
|
|
3,167
|
|
|
3,126
|
|
Independent Contractors
|
4,676
|
|
|
4,646
|
|
|
4,593
|
|
Total advisors
|
7,904
|
|
|
7,813
|
|
|
7,719
|
|
|
|
As of
|
||||||||||||||||||
$ in millions
|
|
June 30,
2019 |
|
March 31,
2019 |
|
December 31,
2018 |
|
September 30,
2018 |
|
June 30,
2018 |
||||||||||
RJBDP
|
|
|
|
|
|
|
|
|
|
|
||||||||||
RJ Bank
|
|
$
|
21,600
|
|
|
$
|
21,023
|
|
|
$
|
21,138
|
|
|
$
|
19,446
|
|
|
$
|
19,014
|
|
Third-party banks
|
|
14,425
|
|
|
14,343
|
|
|
18,320
|
|
|
15,564
|
|
|
16,971
|
|
|||||
Subtotal RJBDP
|
|
36,025
|
|
|
35,366
|
|
|
39,458
|
|
|
35,010
|
|
|
35,985
|
|
|||||
Money market funds
|
|
—
|
|
|
4,001
|
|
|
4,436
|
|
|
3,240
|
|
|
2,687
|
|
|||||
Client Interest Program (“CIP”)
|
|
2,130
|
|
|
2,349
|
|
|
2,935
|
|
|
2,807
|
|
|
2,784
|
|
|||||
Total clients’ domestic cash sweep balances
|
|
$
|
38,155
|
|
|
$
|
41,716
|
|
|
$
|
46,829
|
|
|
$
|
41,057
|
|
|
$
|
41,456
|
|
|
|
Three months ended June 30,
|
|
Nine months ended June 30,
|
||||||||||||||||||
$ in millions
|
|
2019
|
|
2018
|
|
% change
|
|
2019
|
|
2018
|
|
% change
|
||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Brokerage revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Equity
|
|
$
|
31
|
|
|
$
|
41
|
|
|
(24
|
)%
|
|
$
|
105
|
|
|
$
|
123
|
|
|
(15
|
)%
|
Fixed income
|
|
73
|
|
|
53
|
|
|
38
|
%
|
|
201
|
|
|
190
|
|
|
6
|
%
|
||||
Total brokerage revenues
|
|
104
|
|
|
94
|
|
|
11
|
%
|
|
306
|
|
|
313
|
|
|
(2
|
)%
|
||||
Investment banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity underwriting
|
|
27
|
|
|
30
|
|
|
(10
|
)%
|
|
72
|
|
|
66
|
|
|
9
|
%
|
||||
Merger & acquisition and advisory
|
|
78
|
|
|
85
|
|
|
(8
|
)%
|
|
279
|
|
|
200
|
|
|
40
|
%
|
||||
Fixed income investment banking
|
|
24
|
|
|
21
|
|
|
14
|
%
|
|
63
|
|
|
58
|
|
|
9
|
%
|
||||
Total investment banking
|
|
129
|
|
|
136
|
|
|
(5
|
)%
|
|
414
|
|
|
324
|
|
|
28
|
%
|
||||
Interest income
|
|
10
|
|
|
9
|
|
|
11
|
%
|
|
29
|
|
|
24
|
|
|
21
|
%
|
||||
Tax credit fund revenues
|
|
16
|
|
|
12
|
|
|
33
|
%
|
|
49
|
|
|
40
|
|
|
23
|
%
|
||||
All other
|
|
2
|
|
|
1
|
|
|
100
|
%
|
|
9
|
|
|
10
|
|
|
(10
|
)%
|
||||
Total revenues
|
|
261
|
|
|
252
|
|
|
4
|
%
|
|
807
|
|
|
711
|
|
|
14
|
%
|
||||
Interest expense
|
|
(10
|
)
|
|
(9
|
)
|
|
11
|
%
|
|
(26
|
)
|
|
(21
|
)
|
|
24
|
%
|
||||
Net revenues
|
|
251
|
|
|
243
|
|
|
3
|
%
|
|
781
|
|
|
690
|
|
|
13
|
%
|
||||
Non-interest expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Compensation, commissions and benefits
|
|
160
|
|
|
161
|
|
|
(1
|
)%
|
|
486
|
|
|
471
|
|
|
3
|
%
|
||||
Communications and information processing
|
|
18
|
|
|
18
|
|
|
—
|
|
|
56
|
|
|
55
|
|
|
2
|
%
|
||||
Occupancy and equipment costs
|
|
8
|
|
|
8
|
|
|
—
|
|
|
26
|
|
|
25
|
|
|
4
|
%
|
||||
Business development
|
|
12
|
|
|
13
|
|
|
(8
|
)%
|
|
37
|
|
|
35
|
|
|
6
|
%
|
||||
Professional fees
|
|
11
|
|
|
3
|
|
|
267
|
%
|
|
31
|
|
|
8
|
|
|
288
|
%
|
||||
Acquisition and disposition-related expenses
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|
NM
|
|
||||
All other
|
|
20
|
|
|
22
|
|
|
(9
|
)%
|
|
71
|
|
|
62
|
|
|
15
|
%
|
||||
Total non-interest expenses
|
|
229
|
|
|
225
|
|
|
2
|
%
|
|
722
|
|
|
656
|
|
|
10
|
%
|
||||
Income before taxes and including noncontrolling interests
|
|
22
|
|
|
18
|
|
|
22
|
%
|
|
59
|
|
|
34
|
|
|
74
|
%
|
||||
Noncontrolling interests
|
|
(2
|
)
|
|
(4
|
)
|
|
50
|
%
|
|
(18
|
)
|
|
(9
|
)
|
|
(100
|
)%
|
||||
Pre-tax income excluding noncontrolling interests
|
|
$
|
24
|
|
|
$
|
22
|
|
|
9
|
%
|
|
$
|
77
|
|
|
$
|
43
|
|
|
79
|
%
|
Pre-tax margin on net revenues
|
|
9.6
|
%
|
|
9.1
|
%
|
|
|
|
9.9
|
%
|
|
6.2
|
%
|
|
|
|
|
Three months ended June 30,
|
|
Nine months ended June 30,
|
||||||||||||||||||
$ in millions
|
|
2019
|
|
2018
|
|
% change
|
|
2019
|
|
2018
|
|
% change
|
||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Asset management and related administrative fees:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Managed programs
|
|
$
|
120
|
|
|
$
|
118
|
|
|
2
|
%
|
|
$
|
346
|
|
|
$
|
336
|
|
|
3
|
%
|
Administration and other
|
|
45
|
|
|
39
|
|
|
15
|
%
|
|
129
|
|
|
114
|
|
|
13
|
%
|
||||
Total asset management and related administrative fees
|
|
165
|
|
|
157
|
|
|
5
|
%
|
|
475
|
|
|
450
|
|
|
6
|
%
|
||||
Account and service fees
|
|
8
|
|
|
9
|
|
|
(11
|
)%
|
|
27
|
|
|
22
|
|
|
23
|
%
|
||||
All other
|
|
4
|
|
|
2
|
|
|
100
|
%
|
|
11
|
|
|
10
|
|
|
10
|
%
|
||||
Net revenues
|
|
177
|
|
|
168
|
|
|
5
|
%
|
|
513
|
|
|
482
|
|
|
6
|
%
|
||||
Non-interest expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Compensation and benefits
|
|
47
|
|
|
45
|
|
|
4
|
%
|
|
135
|
|
|
127
|
|
|
6
|
%
|
||||
Communications and information processing
|
|
12
|
|
|
10
|
|
|
20
|
%
|
|
33
|
|
|
29
|
|
|
14
|
%
|
||||
Investment sub-advisory fees
|
|
23
|
|
|
22
|
|
|
5
|
%
|
|
68
|
|
|
66
|
|
|
3
|
%
|
||||
All other
|
|
29
|
|
|
31
|
|
|
(6
|
)%
|
|
90
|
|
|
82
|
|
|
10
|
%
|
||||
Total non-interest expenses
|
|
111
|
|
|
108
|
|
|
3
|
%
|
|
326
|
|
|
304
|
|
|
7
|
%
|
||||
Income before taxes and including noncontrolling interests
|
|
66
|
|
|
60
|
|
|
10
|
%
|
|
187
|
|
|
178
|
|
|
5
|
%
|
||||
Noncontrolling interests
|
|
1
|
|
|
2
|
|
|
(50
|
)%
|
|
3
|
|
|
7
|
|
|
(57
|
)%
|
||||
Pre-tax income excluding noncontrolling interests
|
|
$
|
65
|
|
|
$
|
58
|
|
|
12
|
%
|
|
$
|
184
|
|
|
$
|
171
|
|
|
8
|
%
|
Pre-tax margin on net revenues
|
|
36.7
|
%
|
|
34.5
|
%
|
|
|
|
35.9
|
%
|
|
35.5
|
%
|
|
|
$ in millions
|
|
June 30,
2019 |
|
March 31,
2019 |
|
September 30,
2018 |
|
June 30,
2018 |
|
March 31,
2018 |
|
September 30,
2017 |
||||||||||||
AMS (1)
|
|
$
|
89,106
|
|
|
$
|
84,906
|
|
|
$
|
83,289
|
|
|
$
|
78,897
|
|
|
$
|
76,091
|
|
|
$
|
69,962
|
|
Carillon Tower Advisers
|
|
60,737
|
|
|
59,852
|
|
|
63,330
|
|
|
62,210
|
|
|
61,751
|
|
|
31,831
|
|
||||||
Subtotal financial assets under management
|
|
149,843
|
|
|
144,758
|
|
|
146,619
|
|
|
141,107
|
|
|
137,842
|
|
|
101,793
|
|
||||||
Less: Assets managed for affiliated entities
|
|
(6,712
|
)
|
|
(6,220
|
)
|
|
(5,702
|
)
|
|
(5,573
|
)
|
|
(5,538
|
)
|
|
(5,397
|
)
|
||||||
Total financial assets under management
|
|
$
|
143,131
|
|
|
$
|
138,538
|
|
|
$
|
140,917
|
|
|
$
|
135,534
|
|
|
$
|
132,304
|
|
|
$
|
96,396
|
|
(1)
|
Represents the portion of our PCG segment fee-based AUA (as disclosed in “Assets in fee-based accounts” in the “Selected key metrics - PCG client asset balances” section of our “Management’s Discussion and Analysis - Results of Operations - Private Client Group”) that is invested in programs overseen by the Asset Management segment.
|
|
|
Three months ended June 30,
|
|
Nine months ended June 30,
|
||||||||||||
$ in millions
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Financial assets under management at beginning of period
|
|
$
|
144,758
|
|
|
$
|
137,842
|
|
|
$
|
146,619
|
|
|
$
|
101,793
|
|
Carillon Tower Advisers:
|
|
|
|
|
|
|
|
|
||||||||
Scout Group acquisition
|
|
—
|
|
|
—
|
|
|
—
|
|
|
27,087
|
|
||||
Other - net inflows/(outflows)
|
|
(910
|
)
|
|
(544
|
)
|
|
(3,584
|
)
|
|
862
|
|
||||
AMS - net inflows
|
|
1,751
|
|
|
2,348
|
|
|
4,138
|
|
|
7,283
|
|
||||
Net market appreciation/(depreciation) in asset values
|
|
4,244
|
|
|
1,461
|
|
|
2,670
|
|
|
4,082
|
|
||||
Financial assets under management at end of period
|
|
$
|
149,843
|
|
|
$
|
141,107
|
|
|
$
|
149,843
|
|
|
$
|
141,107
|
|
$ in millions
|
|
June 30,
2019 |
|
Average fee rate
|
||
Equity
|
|
$
|
29,874
|
|
|
0.51%
|
Fixed income
|
|
26,335
|
|
|
0.18%
|
|
Balanced
|
|
4,528
|
|
|
0.37%
|
|
Total financial assets under management
|
|
$
|
60,737
|
|
|
0.36%
|
|
|
Three months ended June 30,
|
|
Nine months ended June 30,
|
||||||||||||||||||
$ in millions
|
|
2019
|
|
2018
|
|
% change
|
|
2019
|
|
2018
|
|
% change
|
||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest income
|
|
$
|
246
|
|
|
$
|
205
|
|
|
20
|
%
|
|
$
|
732
|
|
|
$
|
571
|
|
|
28
|
%
|
Interest expense
|
|
(38
|
)
|
|
(25
|
)
|
|
52
|
%
|
|
(122
|
)
|
|
(56
|
)
|
|
118
|
%
|
||||
Net interest income
|
|
208
|
|
|
180
|
|
|
16
|
%
|
|
610
|
|
|
515
|
|
|
18
|
%
|
||||
All other
|
|
7
|
|
|
8
|
|
|
(13
|
)%
|
|
20
|
|
|
17
|
|
|
18
|
%
|
||||
Net revenues
|
|
215
|
|
|
188
|
|
|
14
|
%
|
|
630
|
|
|
532
|
|
|
18
|
%
|
||||
Non-interest expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Compensation and benefits
|
|
13
|
|
|
12
|
|
|
8
|
%
|
|
36
|
|
|
31
|
|
|
16
|
%
|
||||
Loan loss provision/(benefit)
|
|
(5
|
)
|
|
5
|
|
|
(200
|
)%
|
|
16
|
|
|
14
|
|
|
14
|
%
|
||||
RJBDP fees to PCG
|
|
44
|
|
|
24
|
|
|
83
|
%
|
|
127
|
|
|
67
|
|
|
90
|
%
|
||||
All other
|
|
25
|
|
|
17
|
|
|
47
|
%
|
|
67
|
|
|
58
|
|
|
16
|
%
|
||||
Total non-interest expenses
|
|
77
|
|
|
58
|
|
|
33
|
%
|
|
246
|
|
|
170
|
|
|
45
|
%
|
||||
Pre-tax income
|
|
$
|
138
|
|
|
$
|
130
|
|
|
6
|
%
|
|
$
|
384
|
|
|
$
|
362
|
|
|
6
|
%
|
Pre-tax margin on net revenues
|
|
64.2
|
%
|
|
69.1
|
%
|
|
|
|
61.0
|
%
|
|
68.0
|
%
|
|
|
|
|
Three months ended June 30,
|
||||||||||||||||||||
|
|
2019
|
|
2018
|
||||||||||||||||||
$ in millions
|
|
Average
balance |
|
Interest
inc./exp. |
|
Average
yield/ cost |
|
Average
balance |
|
Interest
inc./exp. |
|
Average
yield/ cost |
||||||||||
Interest-earning banking assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash
|
|
$
|
998
|
|
|
$
|
5
|
|
|
2.36
|
%
|
|
$
|
660
|
|
|
$
|
4
|
|
|
1.79
|
%
|
Available-for-sale securities
|
|
2,901
|
|
|
18
|
|
|
2.41
|
%
|
|
2,534
|
|
|
14
|
|
|
2.11
|
%
|
||||
Bank loans, net of unearned income:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans held for investment:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
C&I loans
|
|
8,278
|
|
|
98
|
|
|
4.68
|
%
|
|
7,647
|
|
|
85
|
|
|
4.40
|
%
|
||||
CRE construction loans
|
|
248
|
|
|
4
|
|
|
5.45
|
%
|
|
182
|
|
|
2
|
|
|
5.23
|
%
|
||||
CRE loans
|
|
3,359
|
|
|
39
|
|
|
4.53
|
%
|
|
3,259
|
|
|
34
|
|
|
4.15
|
%
|
||||
Tax-exempt loans
|
|
1,291
|
|
|
9
|
|
|
3.35
|
%
|
|
1,191
|
|
|
8
|
|
|
3.41
|
%
|
||||
Residential mortgage loans
|
|
4,127
|
|
|
34
|
|
|
3.32
|
%
|
|
3,514
|
|
|
27
|
|
|
3.10
|
%
|
||||
SBL and other
|
|
3,125
|
|
|
36
|
|
|
4.64
|
%
|
|
2,741
|
|
|
29
|
|
|
4.26
|
%
|
||||
Loans held for sale
|
|
118
|
|
|
1
|
|
|
4.78
|
%
|
|
109
|
|
|
1
|
|
|
4.34
|
%
|
||||
Total bank loans, net
|
|
20,546
|
|
|
221
|
|
|
4.30
|
%
|
|
18,643
|
|
|
186
|
|
|
4.04
|
%
|
||||
FHLB stock, Federal Reserve Bank stock and other
|
|
168
|
|
|
2
|
|
|
4.42
|
%
|
|
133
|
|
|
1
|
|
|
4.53
|
%
|
||||
Total interest-earning banking assets
|
|
24,613
|
|
|
$
|
246
|
|
|
4.00
|
%
|
|
21,970
|
|
|
$
|
205
|
|
|
3.75
|
%
|
||
Non-interest-earning banking assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Unrealized loss on available-for-sale securities
|
|
(6
|
)
|
|
|
|
|
|
|
|
(57
|
)
|
|
|
|
|
|
|
||||
Allowance for loan losses
|
|
(218
|
)
|
|
|
|
|
|
|
|
(195
|
)
|
|
|
|
|
||||||
Other assets
|
|
390
|
|
|
|
|
|
|
|
|
367
|
|
|
|
|
|
|
|
||||
Total non-interest-earning banking assets
|
|
166
|
|
|
|
|
|
|
|
|
115
|
|
|
|
|
|
|
|
||||
Total banking assets
|
|
$
|
24,779
|
|
|
|
|
|
|
|
|
$
|
22,085
|
|
|
|
|
|
|
|
||
Interest-bearing banking liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Bank deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Certificates of deposit
|
|
$
|
561
|
|
|
$
|
4
|
|
|
2.33
|
%
|
|
$
|
389
|
|
|
$
|
1
|
|
|
1.64
|
%
|
Savings, money market and NOW accounts
|
|
20,989
|
|
|
30
|
|
|
0.59
|
%
|
|
18,634
|
|
|
18
|
|
|
0.39
|
%
|
||||
FHLB advances and other
|
|
895
|
|
|
4
|
|
|
2.08
|
%
|
|
939
|
|
|
6
|
|
|
2.09
|
%
|
||||
Total interest-bearing banking liabilities
|
|
22,445
|
|
|
$
|
38
|
|
|
0.69
|
%
|
|
19,962
|
|
|
$
|
25
|
|
|
0.49
|
%
|
||
Non-interest-bearing banking liabilities
|
|
156
|
|
|
|
|
|
|
|
|
183
|
|
|
|
|
|
|
|
||||
Total banking liabilities
|
|
22,601
|
|
|
|
|
|
|
|
|
20,145
|
|
|
|
|
|
|
|
||||
Total banking shareholder’s equity
|
|
2,178
|
|
|
|
|
|
|
|
|
1,940
|
|
|
|
|
|
|
|
||||
Total banking liabilities and shareholder’s equity
|
|
$
|
24,779
|
|
|
|
|
|
|
|
|
$
|
22,085
|
|
|
|
|
|
|
|
||
Excess of interest-earning banking assets over interest-bearing banking liabilities/net interest income
|
|
$
|
2,168
|
|
|
$
|
208
|
|
|
|
|
$
|
2,008
|
|
|
$
|
180
|
|
|
|
||
Bank net interest:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Spread
|
|
|
|
|
|
|
|
3.31
|
%
|
|
|
|
|
|
|
|
3.26
|
%
|
||||
Margin (net yield on interest-earning banking assets)
|
|
|
|
|
|
|
|
3.37
|
%
|
|
|
|
|
|
|
|
3.30
|
%
|
||||
Ratio of interest-earning banking assets to interest-bearing banking liabilities
|
|
|
|
|
|
|
|
109.66
|
%
|
|
|
|
|
|
|
110.06
|
%
|
|
|
Three months ended June 30,
|
||||||||||
|
|
2019 compared to 2018
|
||||||||||
|
|
Increase/(decrease) due to
|
||||||||||
$ in millions
|
|
Volume
|
|
Rate
|
|
Total
|
||||||
Interest revenue:
|
|
|
|
|
|
|
||||||
Interest-earning banking assets:
|
|
|
|
|
|
|
||||||
Cash
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
1
|
|
Available-for-sale securities
|
|
2
|
|
|
2
|
|
|
4
|
|
|||
Bank loans, net of unearned income:
|
|
|
|
|
|
|
||||||
Loans held for investment:
|
|
|
|
|
|
|
|
|||||
C&I loans
|
|
7
|
|
|
6
|
|
|
13
|
|
|||
CRE construction loans
|
|
2
|
|
|
—
|
|
|
2
|
|
|||
CRE loans
|
|
1
|
|
|
4
|
|
|
5
|
|
|||
Tax-exempt loans
|
|
1
|
|
|
—
|
|
|
1
|
|
|||
Residential mortgage loans
|
|
5
|
|
|
2
|
|
|
7
|
|
|||
SBL and other
|
|
4
|
|
|
3
|
|
|
7
|
|
|||
Total bank loans, net
|
|
20
|
|
|
15
|
|
|
35
|
|
|||
FHLB stock, Federal Reserve Bank stock, and other
|
|
1
|
|
|
—
|
|
|
1
|
|
|||
Total interest-earning banking assets
|
|
24
|
|
|
17
|
|
|
41
|
|
|||
Interest expense:
|
|
|
|
|
|
|
|
|
|
|||
Interest-bearing banking liabilities:
|
|
|
|
|
|
|
|
|
|
|||
Bank deposits:
|
|
|
|
|
|
|
|
|
|
|||
Certificates of deposit
|
|
1
|
|
|
2
|
|
|
3
|
|
|||
Savings, money market, and NOW accounts
|
|
2
|
|
|
10
|
|
|
12
|
|
|||
FHLB advances and other
|
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
|||
Total interest-bearing banking liabilities
|
|
1
|
|
|
12
|
|
|
13
|
|
|||
Change in net interest income
|
|
$
|
23
|
|
|
$
|
5
|
|
|
$
|
28
|
|
|
|
Nine months ended June 30,
|
||||||||||||||||||||
|
|
2019
|
|
2018
|
||||||||||||||||||
$ in millions
|
|
Average
balance
|
|
Interest
inc./exp.
|
|
Average
yield/
cost
|
|
Average
balance
|
|
Interest
inc./exp.
|
|
Average
yield/
cost
|
||||||||||
Interest-earning banking assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash
|
|
$
|
1,231
|
|
|
$
|
21
|
|
|
2.33
|
%
|
|
$
|
1,040
|
|
|
$
|
12
|
|
|
1.48
|
%
|
Available-for-sale securities
|
|
2,831
|
|
|
51
|
|
|
2.39
|
%
|
|
2,358
|
|
|
36
|
|
|
2.00
|
%
|
||||
Bank loans, net of unearned income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Loans held for investment:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
C&I loans
|
|
8,065
|
|
|
286
|
|
|
4.67
|
%
|
|
7,538
|
|
|
237
|
|
|
4.15
|
%
|
||||
CRE construction loans
|
|
205
|
|
|
9
|
|
|
5.58
|
%
|
|
166
|
|
|
6
|
|
|
5.03
|
%
|
||||
CRE loans
|
|
3,433
|
|
|
120
|
|
|
4.60
|
%
|
|
3,160
|
|
|
95
|
|
|
3.97
|
%
|
||||
Tax-exempt loans
|
|
1,285
|
|
|
26
|
|
|
3.34
|
%
|
|
1,126
|
|
|
22
|
|
|
3.41
|
%
|
||||
Residential mortgage loans
|
|
3,999
|
|
|
100
|
|
|
3.32
|
%
|
|
3,363
|
|
|
78
|
|
|
3.08
|
%
|
||||
SBL and other
|
|
3,098
|
|
|
109
|
|
|
4.64
|
%
|
|
2,594
|
|
|
78
|
|
|
3.98
|
%
|
||||
Loans held for sale
|
|
149
|
|
|
5
|
|
|
4.87
|
%
|
|
123
|
|
|
3
|
|
|
3.83
|
%
|
||||
Total bank loans, net
|
|
20,234
|
|
|
655
|
|
|
4.32
|
%
|
|
18,070
|
|
|
519
|
|
|
3.85
|
%
|
||||
FHLB stock, Federal Reserve Bank stock and other
|
|
163
|
|
|
5
|
|
|
4.27
|
%
|
|
138
|
|
|
4
|
|
|
4.13
|
%
|
||||
Total interest-earning banking assets
|
|
24,459
|
|
|
$
|
732
|
|
|
3.99
|
%
|
|
21,606
|
|
|
$
|
571
|
|
|
3.54
|
%
|
||
Non-interest-earning banking assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Unrealized loss on available-for-sale securities
|
|
(37
|
)
|
|
|
|
|
|
|
|
(39
|
)
|
|
|
|
|
|
|
||||
Allowance for loan losses
|
|
(214
|
)
|
|
|
|
|
|
|
|
(192
|
)
|
|
|
|
|
|
|
||||
Other assets
|
|
404
|
|
|
|
|
|
|
|
|
373
|
|
|
|
|
|
|
|
||||
Total non-interest-earning banking assets
|
|
153
|
|
|
|
|
|
|
|
|
142
|
|
|
|
|
|
|
|
||||
Total banking assets
|
|
$
|
24,612
|
|
|
|
|
|
|
|
|
$
|
21,748
|
|
|
|
|
|
|
|
||
Interest-bearing banking liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Bank deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Certificates of deposit
|
|
$
|
527
|
|
|
$
|
9
|
|
|
2.20
|
%
|
|
$
|
353
|
|
|
$
|
4
|
|
|
1.60
|
%
|
Savings, money market and NOW accounts
|
|
20,861
|
|
|
99
|
|
|
0.64
|
%
|
|
18,426
|
|
|
37
|
|
|
0.27
|
%
|
||||
FHLB advances and other
|
|
919
|
|
|
14
|
|
|
2.13
|
%
|
|
908
|
|
|
15
|
|
|
2.09
|
%
|
||||
Total interest-bearing banking liabilities
|
|
22,307
|
|
|
$
|
122
|
|
|
0.73
|
%
|
|
19,687
|
|
|
$
|
56
|
|
|
0.37
|
%
|
||
Non-interest-bearing banking liabilities
|
|
191
|
|
|
|
|
|
|
|
|
176
|
|
|
|
|
|
|
|
||||
Total banking liabilities
|
|
22,498
|
|
|
|
|
|
|
|
|
19,863
|
|
|
|
|
|
|
|
||||
Total banking shareholder’s equity
|
|
2,114
|
|
|
|
|
|
|
|
|
1,885
|
|
|
|
|
|
|
|
||||
Total banking liabilities and shareholder’s equity
|
|
$
|
24,612
|
|
|
|
|
|
|
|
|
$
|
21,748
|
|
|
|
|
|
|
|
||
Excess of interest-earning banking assets over interest-bearing banking liabilities/net interest income
|
|
$
|
2,152
|
|
|
$
|
610
|
|
|
|
|
$
|
1,919
|
|
|
$
|
515
|
|
|
|
||
Bank net interest:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Spread
|
|
|
|
|
|
|
|
3.26
|
%
|
|
|
|
|
|
|
|
3.17
|
%
|
||||
Margin (net yield on interest-earning banking assets)
|
|
|
|
|
|
|
|
3.32
|
%
|
|
|
|
|
|
|
|
3.20
|
%
|
||||
Ratio of interest-earning banking assets to interest-bearing banking liabilities
|
|
|
|
|
|
|
|
109.65
|
%
|
|
|
|
|
|
|
109.75
|
%
|
|
|
Nine months ended June 30,
|
||||||||||
|
|
2019 compared to 2018
|
||||||||||
|
|
Increase/(decrease) due to
|
||||||||||
$ in millions
|
|
Volume
|
|
Rate
|
|
Total
|
||||||
Interest revenue:
|
|
|
|
|
|
|
||||||
Interest-earning banking assets:
|
|
|
|
|
|
|
||||||
Cash
|
|
$
|
2
|
|
|
$
|
7
|
|
|
$
|
9
|
|
Available-for-sale securities
|
|
7
|
|
|
8
|
|
|
15
|
|
|||
Bank loans, net of unearned income:
|
|
|
|
|
|
|
||||||
Loans held for investment:
|
|
|
|
|
|
|
|
|||||
C&I loans
|
|
17
|
|
|
32
|
|
|
49
|
|
|||
CRE construction loans
|
|
2
|
|
|
1
|
|
|
3
|
|
|||
CRE loans
|
|
8
|
|
|
17
|
|
|
25
|
|
|||
Tax-exempt loans
|
|
3
|
|
|
1
|
|
|
4
|
|
|||
Residential mortgage loans
|
|
15
|
|
|
7
|
|
|
22
|
|
|||
SBL and other
|
|
15
|
|
|
16
|
|
|
31
|
|
|||
Loans held for sale
|
|
1
|
|
|
1
|
|
|
2
|
|
|||
Total bank loans, net
|
|
61
|
|
|
75
|
|
|
136
|
|
|||
FHLB stock, Federal Reserve Bank stock, and other
|
|
1
|
|
|
—
|
|
|
1
|
|
|||
Total interest-earning banking assets
|
|
71
|
|
|
90
|
|
|
161
|
|
|||
Interest expense:
|
|
|
|
|
|
|
|
|
|
|||
Interest-bearing banking liabilities:
|
|
|
|
|
|
|
|
|
|
|||
Bank deposits:
|
|
|
|
|
|
|
|
|
|
|||
Certificates of deposit
|
|
2
|
|
|
3
|
|
|
5
|
|
|||
Savings, money market, and NOW accounts
|
|
5
|
|
|
57
|
|
|
62
|
|
|||
FHLB advances and other
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|||
Total interest-bearing banking liabilities
|
|
7
|
|
|
59
|
|
|
66
|
|
|||
Change in net interest income
|
|
$
|
64
|
|
|
$
|
31
|
|
|
$
|
95
|
|
|
|
Three months ended June 30,
|
|
Nine months ended June 30,
|
||||||||||||||||||
$ in millions
|
|
2019
|
|
2018
|
|
% change
|
|
2019
|
|
2018
|
|
% change
|
||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest income
|
|
$
|
12
|
|
|
$
|
11
|
|
|
9
|
%
|
|
$
|
42
|
|
|
$
|
28
|
|
|
50
|
%
|
Gains on private equity investments
|
|
2
|
|
|
3
|
|
|
(33
|
)%
|
|
8
|
|
|
21
|
|
|
(62
|
)%
|
||||
All other
|
|
1
|
|
|
2
|
|
|
(50
|
)%
|
|
5
|
|
|
4
|
|
|
25
|
%
|
||||
Total revenues
|
|
15
|
|
|
16
|
|
|
(6
|
)%
|
|
55
|
|
|
53
|
|
|
4
|
%
|
||||
Interest expense
|
|
(19
|
)
|
|
(18
|
)
|
|
6
|
%
|
|
(57
|
)
|
|
(56
|
)
|
|
2
|
%
|
||||
Net revenues
|
|
(4
|
)
|
|
(2
|
)
|
|
100
|
%
|
|
(2
|
)
|
|
(3
|
)
|
|
(33
|
)%
|
||||
Non-interest expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Compensation and other
|
|
22
|
|
|
20
|
|
|
10
|
%
|
|
59
|
|
|
51
|
|
|
16
|
%
|
||||
Acquisition-related expenses
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
(100
|
)%
|
||||
Total non-interest expenses
|
|
22
|
|
|
20
|
|
|
10
|
%
|
|
59
|
|
|
55
|
|
|
7
|
%
|
||||
Loss before taxes and including noncontrolling interests
|
|
(26
|
)
|
|
(22
|
)
|
|
(18
|
)%
|
|
(61
|
)
|
|
(58
|
)
|
|
(5
|
)%
|
||||
Noncontrolling interests
|
|
(1
|
)
|
|
2
|
|
|
NM
|
|
|
(1
|
)
|
|
2
|
|
|
NM
|
|
||||
Pre-tax loss excluding noncontrolling interests
|
|
$
|
(25
|
)
|
|
$
|
(24
|
)
|
|
(4
|
)%
|
|
$
|
(60
|
)
|
|
$
|
(60
|
)
|
|
—
|
|
|
Three months ended June 30,
|
|
Nine months ended June 30,
|
||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Return on assets
|
2.7%
|
|
2.6%
|
|
2.7%
|
|
2.2%
|
Annualized return on equity
|
16.1%
|
|
15.4%
|
|
16.2%
|
|
13.6%
|
Average equity to average assets
|
16.7%
|
|
16.7%
|
|
16.6%
|
|
16.3%
|
Dividend payout ratio
|
18.9%
|
|
19.4%
|
|
19.2%
|
|
20.1%
|
$ in millions
|
|
June 30, 2019
|
||
RJF
|
|
$
|
448
|
|
RJ&A
|
|
949
|
|
|
RJ Bank
|
|
1,419
|
|
|
RJ Ltd.
|
|
382
|
|
|
RJFS
|
|
131
|
|
|
Carillon Tower Advisers
|
|
89
|
|
|
Other subsidiaries
|
|
178
|
|
|
Total cash and cash equivalents
|
|
$
|
3,596
|
|
|
|
June 30, 2019
|
|||||||||||||
$ in millions
|
|
RJ&A
|
|
RJF
|
|
Total
|
|
Total number of arrangements
|
|||||||
Financing arrangement:
|
|
|
|
|
|
|
|
|
|||||||
Committed secured
|
|
$
|
200
|
|
|
$
|
—
|
|
|
$
|
200
|
|
|
2
|
|
Committed unsecured (1)
|
|
200
|
|
|
300
|
|
|
500
|
|
|
1
|
|
|||
Total committed financing arrangements
|
|
$
|
400
|
|
|
$
|
300
|
|
|
$
|
700
|
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|||||||
Outstanding borrowing amount:
|
|
|
|
|
|
|
|
|
|||||||
Committed secured
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
Committed unsecured
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
||||
Total outstanding borrowing amount
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
(1)
|
The Credit Facility provides for maximum borrowings of up to $500 million, with a sublimit of $300 million for RJF. For additional details on our committed unsecured financing arrangement, see our discussion of the Credit Facility in Note 12 of the Notes to Condensed Consolidated Financial Statements of this Form 10-Q.
|
$ in millions
|
|
June 30, 2019
|
||
Outstanding borrowing amount:
|
|
|
||
Uncommitted secured
|
|
$
|
215
|
|
Uncommitted unsecured
|
|
—
|
|
|
Total outstanding borrowing amount
|
|
$
|
215
|
|
|
|
Repurchase transactions
|
|
Reverse repurchase transactions
|
||||||||||||||||||||
For the quarter ended:
($ in millions)
|
|
Average daily
balance
outstanding
|
|
Maximum month-end
balance outstanding
during the quarter
|
|
End of period
balance
outstanding
|
|
Average daily
balance
outstanding
|
|
Maximum month-end
balance outstanding
during the quarter
|
|
End of period
balance
outstanding
|
||||||||||||
June 30, 2019
|
|
$
|
211
|
|
|
$
|
212
|
|
|
$
|
165
|
|
|
$
|
442
|
|
|
$
|
479
|
|
|
$
|
411
|
|
March 31, 2019
|
|
$
|
172
|
|
|
$
|
210
|
|
|
$
|
210
|
|
|
$
|
358
|
|
|
$
|
447
|
|
|
$
|
447
|
|
December 31, 2018
|
|
$
|
171
|
|
|
$
|
189
|
|
|
$
|
156
|
|
|
$
|
413
|
|
|
$
|
479
|
|
|
$
|
399
|
|
September 30, 2018
|
|
$
|
117
|
|
|
$
|
186
|
|
|
$
|
186
|
|
|
$
|
355
|
|
|
$
|
376
|
|
|
$
|
373
|
|
June 30, 2018
|
|
$
|
151
|
|
|
$
|
165
|
|
|
$
|
115
|
|
|
$
|
364
|
|
|
$
|
369
|
|
|
$
|
343
|
|
Rating Agency
|
|
Rating
|
|
Outlook
|
Standard & Poor’s Ratings Services
|
|
BBB+
|
|
Stable
|
Moody’s Investors Services
|
|
Baa1
|
|
Stable
|
|
|
Nine months ended June 30, 2019
|
|
Period-end VaR
|
|
|
|
Three months ended June 30,
|
|
Nine months ended June 30,
|
||||||||||||||||||||||||
$ in millions
|
|
High
|
|
Low
|
|
June 30,
2019 |
|
September 30,
2018 |
|
$ in millions
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||||||||
Daily VaR
|
|
$
|
2
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
Daily average VaR
|
|
$
|
1
|
|
|
$
|
2
|
|
|
$
|
1
|
|
|
$
|
1
|
|
Instantaneous changes in rate
|
|
Net interest income
($ in millions)
|
|
Projected change in
net interest income
|
+200
|
|
$880
|
|
(1.23)%
|
+100
|
|
$887
|
|
(0.45)%
|
0
|
|
$891
|
|
—
|
-100
|
|
$827
|
|
(7.18)%
|
|
|
Due in
|
||||||||||||||
$ in millions
|
|
One year or less
|
|
> One year – five years
|
|
> 5 years
|
|
Total
|
||||||||
Loans held for investment:
|
|
|
|
|
|
|
|
|
|
|
|
|||||
C&I loans
|
|
$
|
138
|
|
|
$
|
4,701
|
|
|
$
|
3,562
|
|
|
$
|
8,401
|
|
CRE construction loans
|
|
34
|
|
|
214
|
|
|
—
|
|
|
248
|
|
||||
CRE loans
|
|
413
|
|
|
2,502
|
|
|
553
|
|
|
3,468
|
|
||||
Tax-exempt loans
|
|
—
|
|
|
31
|
|
|
1,265
|
|
|
1,296
|
|
||||
Residential mortgage loans
|
|
—
|
|
|
4
|
|
|
4,194
|
|
|
4,198
|
|
||||
SBL and other
|
|
3,133
|
|
|
44
|
|
|
—
|
|
|
3,177
|
|
||||
Total loans held for investment
|
|
3,718
|
|
|
7,496
|
|
|
9,574
|
|
|
20,788
|
|
||||
Loans held for sale
|
|
—
|
|
|
—
|
|
|
125
|
|
|
125
|
|
||||
Total loans
|
|
$
|
3,718
|
|
|
$
|
7,496
|
|
|
$
|
9,699
|
|
|
$
|
20,913
|
|
|
|
Interest rate type
|
||||||||||
$ in millions
|
|
Fixed
|
|
Adjustable
|
|
Total
|
||||||
Loans held for investment:
|
|
|
|
|
|
|
|
|
|
|||
C&I loans
|
|
$
|
96
|
|
|
$
|
8,167
|
|
|
$
|
8,263
|
|
CRE construction loans
|
|
—
|
|
|
214
|
|
|
214
|
|
|||
CRE loans
|
|
79
|
|
|
2,976
|
|
|
3,055
|
|
|||
Tax-exempt loans
|
|
1,264
|
|
|
32
|
|
|
1,296
|
|
|||
Residential mortgage loans
|
|
239
|
|
|
3,959
|
|
|
4,198
|
|
|||
SBL and other
|
|
44
|
|
|
—
|
|
|
44
|
|
|||
Total loans held for investment
|
|
1,722
|
|
|
15,348
|
|
|
17,070
|
|
|||
Loans held for sale
|
|
125
|
|
|
—
|
|
|
125
|
|
|||
Total loans
|
|
$
|
1,847
|
|
|
$
|
15,348
|
|
|
$
|
17,195
|
|
|
|
Three months ended June 30,
|
|
Nine months ended June 30,
|
||||||||||||||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||||||||||||
$ in millions
|
|
Net loan
(charge-off)/recovery
amount
|
|
% of avg.
outstanding
loans
|
|
Net loan
(charge-off)/recovery
amount
|
|
% of avg.
outstanding
loans
|
|
Net loan
(charge-off)/recovery amount |
|
% of avg.
outstanding
loans
|
|
Net loan
(charge-off)/recovery amount |
|
% of avg.
outstanding
loans
|
||||||||||||
C&I loans
|
|
$
|
1
|
|
|
0.06
|
%
|
|
$
|
(5
|
)
|
|
0.23
|
%
|
|
$
|
(2
|
)
|
|
0.02
|
%
|
|
$
|
(9
|
)
|
|
0.15
|
%
|
CRE loans
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
0.13
|
%
|
|
—
|
|
|
—
|
|
||||
Residential mortgage loans
|
|
—
|
|
|
—
|
|
|
1
|
|
|
0.08
|
%
|
|
1
|
|
|
0.02
|
%
|
|
1
|
|
|
0.05
|
%
|
||||
Total
|
|
$
|
1
|
|
|
0.02
|
%
|
|
$
|
(4
|
)
|
|
0.08
|
%
|
|
$
|
(4
|
)
|
|
0.03
|
%
|
|
$
|
(8
|
)
|
|
0.05
|
%
|
|
|
June 30, 2019
|
|
September 30, 2018
|
||||||||||||
$ in millions
|
|
Nonperforming
loan balance
|
|
Allowance for
loan losses
balance
|
|
Nonperforming
loan balance
|
|
Allowance for
loan losses
balance
|
||||||||
Loans held for investment:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
C&I loans
|
|
$
|
22
|
|
|
$
|
134
|
|
|
$
|
2
|
|
|
$
|
123
|
|
CRE construction loans
|
|
—
|
|
|
4
|
|
|
—
|
|
|
3
|
|
||||
CRE loans
|
|
10
|
|
|
46
|
|
|
—
|
|
|
47
|
|
||||
Tax-exempt loans
|
|
—
|
|
|
9
|
|
|
—
|
|
|
9
|
|
||||
Residential mortgage loans
|
|
21
|
|
|
16
|
|
|
23
|
|
|
17
|
|
||||
SBL and other
|
|
—
|
|
|
6
|
|
|
—
|
|
|
4
|
|
||||
Total
|
|
$
|
53
|
|
|
$
|
215
|
|
|
$
|
25
|
|
|
$
|
203
|
|
Total nonperforming loans as a % of RJ Bank total loans
|
|
0.25
|
%
|
|
|
|
0.12
|
%
|
|
|
|
|
Amount of delinquent residential loans
|
|
Delinquent residential loans as a percentage of outstanding loan balances
|
|||||||||||||||||
$ in millions
|
|
30-89 days
|
|
90 days or more
|
|
Total
|
|
30-89 days
|
|
90 days or more
|
|
Total
|
|||||||||
June 30, 2019
|
|
$
|
1
|
|
|
$
|
15
|
|
|
$
|
16
|
|
|
0.03
|
%
|
|
0.36
|
%
|
|
0.39
|
%
|
September 30, 2018
|
|
$
|
2
|
|
|
$
|
13
|
|
|
$
|
15
|
|
|
0.06
|
%
|
|
0.33
|
%
|
|
0.39
|
%
|
|
|
June 30, 2019
|
||
|
|
Loans outstanding as a % of RJ Bank total residential mortgage loans
|
|
Loans outstanding as a % of RJ Bank total loans
|
CA
|
|
24.8%
|
|
5.0%
|
FL
|
|
16.6%
|
|
3.4%
|
NY
|
|
8.3%
|
|
1.7%
|
TX
|
|
8.1%
|
|
1.6%
|
CO
|
|
3.6%
|
|
0.7%
|
|
|
June 30, 2019
|
||
|
|
Loans outstanding as a % of RJ Bank total corporate loans
|
|
Loans outstanding as a % of RJ Bank total loans
|
Business systems and services
|
|
8.2%
|
|
4.7%
|
Office real estate
|
|
7.6%
|
|
4.4%
|
Hospitality
|
|
5.3%
|
|
3.0%
|
Automotive/transportation
|
|
5.2%
|
|
3.0%
|
Consumer products and services
|
|
4.5%
|
|
2.6%
|
|
Total number of shares
purchased
|
|
Average price
per share
|
|
Number of shares purchased as part of publicly announced plans or programs
|
|
Approximate dollar value (in millions) at each month-end, of securities that may yet be purchased under the plans or programs
|
||||
|
|
|
|
|
|
|
|
||||
October 1, 2018 – October 31, 2018
|
469,566
|
|
|
$
|
74.88
|
|
|
423,903
|
|
|
$182
|
November 1, 2018 – November 30, 2018
|
2,420,562
|
|
|
$
|
77.66
|
|
|
2,341,466
|
|
|
$500
|
December 1, 2018 – December 31, 2018
|
3,449,198
|
|
|
$
|
74.55
|
|
|
3,287,237
|
|
|
$255
|
First quarter
|
6,339,326
|
|
|
$
|
75.76
|
|
|
6,052,606
|
|
|
|
|
|
|
|
|
|
|
|
||||
January 1, 2019 – January 31, 2019
|
13,408
|
|
|
$
|
75.16
|
|
|
—
|
|
|
$255
|
February 1, 2019 – February 28, 2019
|
4,050
|
|
|
$
|
82.54
|
|
|
—
|
|
|
$255
|
March 1, 2019 – March 31, 2019
|
603,529
|
|
|
$
|
78.23
|
|
|
602,938
|
|
|
$458
|
Second quarter
|
620,987
|
|
|
$
|
78.19
|
|
|
602,938
|
|
|
|
|
|
|
|
|
|
|
|
||||
April 1, 2019 – April 30, 2019
|
22,241
|
|
|
$
|
81.07
|
|
|
—
|
|
|
$458
|
May 1, 2019 – May 31, 2019
|
302,699
|
|
|
$
|
83.53
|
|
|
301,756
|
|
|
$433
|
June 1, 2019 – June 30, 2019
|
744,251
|
|
|
$
|
80.95
|
|
|
742,076
|
|
|
$373
|
Third quarter
|
1,069,191
|
|
|
$
|
81.68
|
|
|
1,043,832
|
|
|
|
Fiscal year-to-date total
|
8,029,504
|
|
|
$
|
76.74
|
|
|
7,699,376
|
|
|
|
ITEM 3.
|
DEFAULTS UPON SENIOR SECURITIES
|
ITEM 4.
|
MINE SAFETY DISCLOSURES
|
ITEM 5.
|
OTHER INFORMATION
|
ITEM 6.
|
EXHIBITS
|
Exhibit Number
|
|
Description
|
3.1
|
|
|
3.2
|
|
|
10.1
|
|
|
31.1
|
|
|
31.2
|
|
|
32
|
|
|
101.INS
|
|
XBRL Instance Document (The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.)
|
101.SCH
|
|
Inline XBRL Taxonomy Extension Schema Document.
|
101.CAL
|
|
Inline XBRL Taxonomy Extension Calculation Linkbase Document.
|
101.DEF
|
|
Inline XBRL Taxonomy Extension Definition Linkbase Document.
|
101.LAB
|
|
Inline XBRL Taxonomy Extension Label Linkbase Document.
|
101.PRE
|
|
Inline XBRL Taxonomy Extension Presentation Linkbase Document.
|
104
|
|
Cover Page Interactive Data File - the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
|
|
|
|
RAYMOND JAMES FINANCIAL, INC.
|
|
|
|
(Registrant)
|
|
|
|
|
Date:
|
August 8, 2019
|
|
/s/ Paul C. Reilly
|
|
|
|
Paul C. Reilly
|
|
|
|
Chairman and Chief Executive Officer
|
|
|
|
|
Date:
|
August 8, 2019
|
|
/s/ Jeffrey P. Julien
|
|
|
|
Jeffrey P. Julien
|
|
|
|
Executive Vice President - Finance and Chief Financial Officer
|
BORROWERS:
|
RAYMOND JAMES FINANCIAL, INC.,
|
AGENT:
|
BANK OF AMERICA, N.A.,
|
LENDERS:
|
BANK OF AMERICA, N.A.,
|
|
Date:
|
August 8, 2019
|
|
/s/ PAUL C. REILLY
|
|
Paul C. Reilly
|
|
Chairman and Chief Executive Officer
|
|
Date:
|
August 8, 2019
|
|
/s/ JEFFREY P. JULIEN
|
|
Jeffrey P. Julien
|
|
Executive Vice President - Finance and Chief Financial Officer
|
1.
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
|
/s/ PAUL C. REILLY
|
|
Paul C. Reilly
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Chairman and Chief Executive Officer
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August 8, 2019
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/s/ JEFFREY P. JULIEN
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Jeffrey P. Julien
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Executive Vice President - Finance and Chief Financial Officer
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August 8, 2019
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