COVER PAGE
COVER PAGE - shares | 9 Months Ended | |
Jun. 30, 2019 | Aug. 07, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2019 | |
Entity File Number | 1-9109 | |
Document Transition Report | false | |
Entity Registrant Name | RAYMOND JAMES FINANCIAL, INC. | |
Entity Incorporation, State or Country Code | FL | |
Entity Tax Identification Number | 59-1517485 | |
Entity Address, Address Line One | 880 Carillon Parkway | |
Entity Address, City or Town | St. Petersburg | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 33716 | |
City Area Code | 727 | |
Local Phone Number | 567-1000 | |
Title of 12(b) Security | Common Stock, $.01 par value | |
Trading Symbol | RJF | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 138,843,196 | |
Entity Central Index Key | 0000720005 | |
Current Fiscal Year End Date | --09-30 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited) - USD ($) $ in Millions | Jun. 30, 2019 | Sep. 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 | |
Available-for-sale securities (includes $16 and $20 pledged as collateral) | 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 |
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 | 0 | 0 |
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 |
LIHTC Funds - Primary Beneficiary | ||
Financial instruments, at fair value: | ||
Investments in real estate partnerships held by consolidated variable interest entities | $ 69 | $ 107 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited) (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2019 | Sep. 30, 2018 |
Statement of Financial Position [Abstract] | ||
Trading instruments, pledged as collateral | $ 557 | $ 465 |
Other investments, pledged as collateral | 24 | 25 |
Available-for-sale securities, pledged as collateral | $ 16 | $ 20 |
Equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 350,000,000 | 350,000,000 |
Common stock, shares issued (in shares) | 158,316,880 | 156,363,615 |
Common stock, shares outstanding (in shares) | 139,666,546 | 145,642,437 |
Treasury stock, shares (in shares) | 18,650,334 | 10,693,026 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenues: | ||||
Principal transactions | $ 93 | $ 73 | $ 262 | $ 255 |
Interest income | 321 | 271 | 961 | 752 |
Other | 1,679 | 1,620 | 4,977 | 4,762 |
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 | 0 | 0 | 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) | 0 | (16) | 0 |
Net income attributable to Raymond James Financial, Inc. | $ 259 | $ 232 | $ 769 | $ 594 |
Earnings per common share – basic (in dollars per share) | $ 1.84 | $ 1.59 | $ 5.42 | $ 4.08 |
Earnings per common share – diluted (in dollars per share) | $ 1.80 | $ 1.55 | $ 5.30 | $ 3.99 |
Weighted-average common shares outstanding – basic (in shares) | 140.4 | 145.6 | 141.8 | 145.2 |
Weighted-average common and common equivalent shares outstanding – diluted (in shares) | 143.6 | 149.4 | 144.8 | 148.8 |
Net income attributable to RJF | $ 259 | $ 232 | $ 769 | $ 594 |
Other comprehensive (loss) income, 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 comprehensive income | 270 | 228 | 786 | 582 |
Asset management and related administrative fees | ||||
Revenues: | ||||
Revenue from contract with customer | 879 | 790 | 2,527 | 2,287 |
Total brokerage revenues | ||||
Revenues: | ||||
Other | 451 | 468 | 1,357 | 1,491 |
Securities commissions | ||||
Revenues: | ||||
Revenue from contract with customer | 358 | 395 | 1,095 | 1,236 |
Account and service fees | ||||
Revenues: | ||||
Revenue from contract with customer | 183 | 187 | 559 | 535 |
Investment banking | ||||
Revenues: | ||||
Revenue from contract with customer | 139 | 145 | 439 | 349 |
Total other | ||||
Revenues: | ||||
Other | $ 27 | $ 30 | $ 95 | $ 100 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Millions | Total | Common stock, par value $.01 per share | Additional paid-in capital | Retained earnings | Treasury stock | Accumulated other comprehensive loss | Total equity attributable to Raymond James Financial, Inc. | Noncontrolling interests |
Balance beginning of period at Sep. 30, 2017 | $ 2 | $ 1,645 | $ 4,340 | $ (390) | $ (15) | $ 112 | ||
Changes in Shareholders' Equity: | ||||||||
Share issuances | 0 | |||||||
Employee stock purchases | 24 | |||||||
Exercise of stock options and vesting of restricted stock units, net of forfeitures | 34 | (14) | ||||||
Restricted stock, stock option and restricted stock unit expense | 77 | |||||||
Acquisition of noncontrolling interest and other | 1 | |||||||
Other | (1) | 0 | ||||||
Net income attributable to Raymond James Financial, Inc. | $ 594 | 594 | ||||||
Cash dividends declared (see Note 20) | (119) | |||||||
Purchases/surrenders | (9) | |||||||
Other comprehensive income/(loss), net of tax | (12) | |||||||
Net loss attributable to noncontrolling interests | 0 | 0 | ||||||
Capital contributions | 0 | |||||||
Distributions and other | (19) | |||||||
Balance end of period at Jun. 30, 2018 | 6,250 | 2 | 1,781 | 4,814 | (413) | (27) | $ 6,157 | 93 |
Balance beginning of period at Mar. 31, 2018 | 2 | 1,748 | 4,626 | (412) | (23) | 101 | ||
Changes in Shareholders' Equity: | ||||||||
Share issuances | 0 | |||||||
Employee stock purchases | 8 | |||||||
Exercise of stock options and vesting of restricted stock units, net of forfeitures | 4 | 0 | ||||||
Restricted stock, stock option and restricted stock unit expense | 21 | |||||||
Acquisition of noncontrolling interest and other | 0 | |||||||
Other | 0 | 0 | ||||||
Net income attributable to Raymond James Financial, Inc. | 232 | 232 | ||||||
Cash dividends declared (see Note 20) | (44) | |||||||
Purchases/surrenders | (1) | |||||||
Other comprehensive income/(loss), net of tax | (4) | |||||||
Net loss attributable to noncontrolling interests | 0 | 0 | ||||||
Capital contributions | 0 | |||||||
Distributions and other | (8) | |||||||
Balance end of period at Jun. 30, 2018 | 6,250 | 2 | 1,781 | 4,814 | (413) | (27) | 6,157 | 93 |
Balance beginning of period at Sep. 30, 2018 | 6,452 | 2 | 1,808 | 5,032 | (447) | (27) | 84 | |
Changes in Shareholders' Equity: | ||||||||
Share issuances | 0 | |||||||
Employee stock purchases | 27 | |||||||
Exercise of stock options and vesting of restricted stock units, net of forfeitures | 27 | (15) | ||||||
Restricted stock, stock option and restricted stock unit expense | 85 | |||||||
Acquisition of noncontrolling interest and other | (32) | |||||||
Other | 4 | (4) | ||||||
Net income attributable to Raymond James Financial, Inc. | 769 | 769 | ||||||
Cash dividends declared (see Note 20) | (146) | |||||||
Purchases/surrenders | (598) | |||||||
Other comprehensive income/(loss), net of tax | 17 | |||||||
Net loss attributable to noncontrolling interests | 16 | (16) | ||||||
Capital contributions | 2 | |||||||
Distributions and other | (8) | |||||||
Balance end of period at Jun. 30, 2019 | 6,564 | 2 | 1,915 | 5,659 | (1,060) | (14) | 6,502 | 62 |
Balance beginning of period at Mar. 31, 2019 | 2 | 1,917 | 5,448 | (976) | (25) | 69 | ||
Changes in Shareholders' Equity: | ||||||||
Share issuances | 0 | |||||||
Employee stock purchases | 7 | |||||||
Exercise of stock options and vesting of restricted stock units, net of forfeitures | 2 | 2 | ||||||
Restricted stock, stock option and restricted stock unit expense | 21 | |||||||
Acquisition of noncontrolling interest and other | (32) | |||||||
Other | (1) | 0 | ||||||
Net income attributable to Raymond James Financial, Inc. | 259 | 259 | ||||||
Cash dividends declared (see Note 20) | (47) | |||||||
Purchases/surrenders | (86) | |||||||
Other comprehensive income/(loss), net of tax | 11 | |||||||
Net loss attributable to noncontrolling interests | 2 | (2) | ||||||
Capital contributions | 0 | |||||||
Distributions and other | (5) | |||||||
Balance end of period at Jun. 30, 2019 | $ 6,564 | $ 2 | $ 1,915 | $ 5,659 | $ (1,060) | $ (14) | $ 6,502 | $ 62 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDER'S EQUITY (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2018 |
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Net income attributable to Raymond James Financial, Inc. | $ 769 | $ 594 |
Net loss attributable to noncontrolling interests | (16) | 0 |
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) | |
Purchases of available-for-sale securities | (899) | |
Available-for-sale securities maturations, repayments and redemptions | 456 | |
Available-for-sale securities maturations, repayments and redemptions | 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) |
Cash flows from financing activities: | ||
Proceeds from/(repayments of) short-term borrowings, net | 50 | (610) |
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 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | 208 | 127 |
Cash paid for income taxes, net | 295 | 192 |
RJF Credit Facility | ||
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) |
FHLB advances | ||
Cash flows from financing activities: | ||
Proceeds from Federal Home Loan Bank advances | $ 850 | $ 850 |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 9 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND BASIS OF PRESENTATION | ORGANIZATION AND BASIS OF PRESENTATION Organization Raymond James Financial, Inc. (“RJF,” the “firm” or the “Company”) is a financial holding company which, together with its subsidiaries, is engaged in various financial services activities, including providing investment management services for retail and institutional clients, the underwriting, distribution, trading and brokerage of equity and debt securities and the sale of mutual funds and other investment products. The firm also provides corporate and retail banking services, and trust services. For further information about our business segments, see Note 21 of this Form 10-Q. As used herein, the terms “our,” “we,” or “us” refer to RJF and/or one or more of its subsidiaries. Basis of presentation The accompanying unaudited condensed consolidated financial statements include the accounts of RJF and its consolidated subsidiaries that are generally controlled through a majority voting interest. We consolidate all of our 100% owned subsidiaries. In addition, we consolidate any variable interest entity ( “VIE” ) in which we are the primary beneficiary. Additional information on these VIEs is provided in Note 2 of our Annual Report on Form 10-K (the “2018 Form 10-K”) for the year ended September 30, 2018 , as filed with the United States (“U.S.”) Securities and Exchange Commission (“SEC”) and in Note 9 of this Form 10-Q. When we do not have a controlling interest in an entity, but we exert significant influence over the entity, we apply the equity method of accounting. All material intercompany balances and transactions have been eliminated in consolidation. Accounting estimates and assumptions Certain financial information that is normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“ GAAP ”) but is not required for interim reporting purposes has been condensed or omitted. These unaudited condensed consolidated financial statements reflect, in the opinion of management, all adjustments necessary for a fair presentation of our consolidated financial position and results of operations for the periods presented. The nature of our business is such that the results of any interim period are not necessarily indicative of results for a full year. These unaudited condensed consolidated financial statements should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations and the consolidated financial statements and notes thereto included in our 2018 Form 10-K. To prepare condensed consolidated financial statements in conformity with GAAP , we must make certain estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenues and expenses for the reporting period. Actual results could differ from those estimates and could have a material impact on the condensed consolidated financial statements. Reclassifications Effective with the firm’s first fiscal quarter ended December 31, 2018, we have reclassified certain revenues among income statement line items and renamed certain line items. These reclassifications do not affect the Company’s reported total revenues or the total revenues in any of our segments for any of the previously reported periods. Prior period results have been conformed to the current presentation. In addition to the reclassifications discussed in the preceding paragraph, certain other prior period amounts have been reclassified to conform to the current period’s presentation. |
UPDATE OF SIGNIFICANT ACCOUNTIN
UPDATE OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
UPDATE OF SIGNIFICANT ACCOUNTING POLICIES | UPDATE OF SIGNIFICANT ACCOUNTING POLICIES A summary of our significant accounting policies is included in Note 2 of our 2018 Form 10-K. During the nine months ended June 30, 2019 , there were no significant changes to our significant accounting policies other than the accounting policies adopted or modified as part of our implementation of new or amended accounting guidance, as noted in the following sections. Loans to financial advisors, net We offer loans to financial advisors and certain other key revenue producers, primarily for recruiting, transitional cost assistance, and retention purposes. We present the outstanding balance of loans to financial advisors on our Condensed Consolidated Statements of Financial Condition, net of the allowance for doubtful accounts. Of the gross balance outstanding, the portion associated with financial advisors who are no longer affiliated with us was $22 million and $20 million at June 30, 2019 and September 30, 2018 , respectively. Our allowance for doubtful accounts was $10 million and $8 million at June 30, 2019 and September 30, 2018 , respectively. Recent accounting developments Accounting guidance recently adopted Goodwill - In January 2017, the FASB issued amended guidance to simplify the subsequent measurement of goodwill, eliminating “Step 2” from the goodwill impairment test (ASU 2017-04). Under this amended guidance, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and subsequently recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. We early-adopted this guidance on January 1, 2019 , our goodwill impairment test date. The adoption did not have any impact on our financial position or results of operations. Revenue recognition - In May 2014, the FASB issued new guidance related to revenue recognition (ASU 2014-09). The new guidance is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. It also provides guidance on accounting for certain contract costs and requires additional disclosures. We adopted this guidance as of October 1, 2018, under a modified retrospective approach for all open contracts as of the date of initial adoption. As such, there was no impact on our prior period results. The primary impact of this guidance was the change in the presentation of certain costs from a net presentation within revenues to a gross presentation, particularly costs related to merger & acquisitions advisory and underwriting transactions and certain administrative costs related to our multi-bank sweep program. These presentation changes had no impact on our net earnings. There were no material changes in timing of revenues recognized associated with the adoption. As a result, adoption of this guidance had no material impact on our net results of operations or financial position. See Note 16 for further information. Financial instruments - In January 2016, the FASB issued new guidance related to the accounting for financial instruments (ASU 2016-01). Among its provisions, this new guidance generally requires equity investments to be measured at fair value with changes in fair value recognized in net income, subject to certain exceptions, and amends certain disclosure requirements associated with the fair value of financial instruments. We adopted this guidance as of October 1, 2018, under a modified retrospective approach. As a result, on a prospective basis beginning as of the date of adoption, we record changes in the fair value of our investments in equity securities that were previously classified as available-for-sale in net income. Previously, such unrealized gains/(losses) were reflected in other comprehensive income/(loss) (“OCI”). The impact of adopting the new guidance resulted in a reclassification from accumulated other comprehensive income/(loss) (“AOCI”) to retained earnings of an accumulated gain of approximately $4 million at October 1, 2018 . See Note 5 for further information. Statement of Cash Flows (classification of certain cash receipts and cash payments) - In August 2016, the FASB issued amended guidance related to the Statement of Cash Flows (ASU 2016-15). The amended guidance provides guidance on disclosure and classification of certain items within the statements of cash flows. We adopted this guidance on October 1, 2018 , under a retrospective approach. The adoption did not have a material impact on our consolidated statements of cash flows and did not have an impact on our financial position or results of operations. Statement of Cash Flows (restricted cash) - In November 2016, the FASB issued new guidance related to the classification and presentation of changes in restricted cash on the statement of cash flows (ASU 2016-18). The guidance requires an entity to include restricted cash and cash equivalents in its total of cash and cash equivalents on its statement of cash flows and to present a reconciliation of the beginning-of-period and end-of-period total of such amounts on the statement of cash flows. We adopted this guidance on October 1, 2018 , under a retrospective approach. As a result of adoption, we recorded a decrease of $765 million in net cash provided by operating activities for the nine months ended June 30, 2018 related to reclassifying changes in cash segregated pursuant to regulations from operating activities to the cash and cash equivalents balance in the Condensed Consolidated Statements of Cash Flows. The total of cash segregated pursuant to regulations and cash and cash equivalents is included in a separate table in the Condensed Consolidated Statements of Cash Flows. The adoption did not have an impact on our financial position or results of operations. Definition of a business - In January 2017, the FASB issued amended guidance related to the definition of a business (ASU 2017-01). This amended guidance clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. We adopted this guidance on October 1, 2018 , on a prospective basis. The impact of the adoption of this amended guidance is dependent upon acquisition and disposal activities subsequent to the date of adoption. The adoption did not have any impact on our financial position or results of operations. Share-based payment awards (modifications) - In May 2017, the FASB issued amended guidance that clarifies when changes to the terms or conditions of share-based payment awards require an entity to apply modification accounting (ASU 2017-09). The amended guidance states an entity should account for the effects of a modification unless certain criteria are met which include that the modified award has the same fair value, vesting conditions and classification as the original award. We adopted the guidance on October 1, 2018 , on a prospective basis. We generally do not modify our share-based payments awards. The adoption did not have an impact on our financial position or results of operations. Share-based payment awards (nonemployee) - In June 2018, the FASB issued amended guidance that aligns the measurement and classification guidance for share-based payments to nonemployees with the guidance for share-based payments to employees, with certain exceptions (ASU 2018-07). The amended guidance states an entity should measure the fair value of the award by estimating the fair value of the equity instruments to be issued and, for equity-classified awards, the fair value should be measured on the grant date. The amended guidance also clarifies that nonemployee awards that contain a performance condition are to be measured based on the outcome that is probable and that entities may elect, on an award-by-award basis, to use the expected term or contractual term to measure the award. We early-adopted this standard on October 1, 2018 , using a modified retrospective approach. The adoption did not have a significant impact on our financial position or results of operations. Accounting guidance not yet adopted as of June 30, 2019 Lease accounting - In February 2016, the FASB issued new guidance related to the accounting for leases (ASU 2016-02). The new guidance and subsequent amendments requires the recognition of assets and liabilities on the balance sheet related to the rights and obligations created by lease agreements with terms greater than twelve months, regardless of whether they are classified as finance or operating leases. Consistent with current guidance, the recognition, measurement and presentation of expenses and cash flows arising from a lease will primarily depend upon its classification as a finance or operating lease. The new guidance requires new disclosures to help financial statement users better understand the amount, timing and cash flows arising from leases. This new guidance, including subsequent amendments, is first effective for our fiscal year beginning on October 1, 2019 . Although permitted, we do not plan to early adopt. Upon adoption, we will use the alternative modified retrospective approach, with a cumulative effect adjustment to opening retained earnings in the period of adoption. Our implementation efforts include reviewing existing leases and service contracts, which may include embedded leases. We are near completion with the process of identifying and validating changes to our business policies and processes, systems and controls, and reports to support adoption of the new guidance. This new guidance will increase both our assets and liabilities on our statement of financial condition. We are evaluating the magnitude of such impact. We do not expect a material impact on our results of operations. Credit losses - In June 2016, the FASB issued new guidance related to the measurement of credit losses on financial instruments (ASU 2016-13). The amended guidance involves several aspects of the accounting for credit losses related to certain financial instruments including assets measured at amortized cost, available-for-sale debt securities and certain off-balance sheet commitments. The new guidance, and subsequent updates, broadens the information that an entity must consider in developing its estimated credit losses expected to occur over the remaining life of assets measured either collectively or individually to include historical experience, current conditions and reasonable and supportable forecasts, replacing the existing incurred credit loss model and other models with the Current Expected Credit Losses (“CECL”) model. The new guidance expands the disclosure requirements regarding an entity’s assumptions, models, and methods for estimating credit losses and requires new disclosures of the amortized cost balance for each class of financial asset by credit quality indicator, disaggregated by the year of origination. This new guidance is first effective for our fiscal year beginning on October 1, 2020 and will be adopted under a modified retrospective approach. Although permitted, we do not plan to early adopt. We have continued with our implementation and evaluation efforts, which include a cross-functional team to assess the required changes to our credit loss estimation methodologies and systems, as well as the determination of additional data and resources required to comply with the new guidance. We are evaluating the impact the adoption of this new guidance will have on our financial position and results of operations, which will depend on, among other things, the current and expected macroeconomic conditions and the nature and characteristics of financial assets held by us on the date of adoption. Callable debt securities - In March 2017, the FASB issued new guidance that requires certain premiums on callable debt securities to be amortized to the earliest call date instead of the contractual life of the security (ASU 2017-08). Discounts on callable debt securities will continue to be amortized to the contractual maturity date. This guidance is first effective for our fiscal year beginning on October 1, 2019 and will be adopted using a modified retrospective approach. Although permitted, we do not plan to early adopt. We are evaluating the impact the adoption of this new guidance will have on our financial position and results of operations. Internal use software (cloud computing) - In August 2018, the FASB issued guidance on the accounting for implementation costs incurred by customers in cloud computing arrangements (ASU 2018-15). This guidance requires implementation costs incurred by customers in cloud computing arrangements to be deferred over the non-cancellable term of the cloud computing arrangements plus any optional renewal periods (1) that are reasonably certain to be exercised by the customer or (2) for which exercise of the renewal option is controlled by the cloud service provider. This amended guidance is first effective for our fiscal year beginning on October 1, 2020 with early adoption permitted. The guidance may be adopted either using the prospective or retrospective approach. We are currently evaluating the impact of this new guidance on our financial position and results of operations. Derivatives and hedging (interest rate) - In October 2018, the FASB issued guidance amending Derivatives and Hedging (Topic 815) to add the overnight index swap (OIS rate) rate based on the Secured Overnight Financing Rate (SOFR) to the list of US benchmark interest rates that are eligible to be hedged (ASU 2018-16). This guidance is first effective for our fiscal year beginning on October 1, 2019 . Early adoption is permitted. We are evaluating the impact the adoption of this new guidance will have on our financial position and results of operations. Consolidation (decision making fees) - In October 2018, the FASB issued guidance on how all entities evaluate decision-making fees under the variable interest entity guidance (ASU 2018-17). Under the new guidance, to determine whether decision-making fees represent a variable interest, an entity considers indirect interests held through related parties under common control on a proportionate basis, rather than in their entirety. This guidance is first effective for our fiscal year beginning on October 1, 2020 . Early adoption is permitted. We are evaluating the impact the adoption of this new guidance will have on our financial position and results of operations. |
ACQUISITIONS
ACQUISITIONS | 9 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
ACQUISITIONS | ACQUISITIONS Effective April 2019, we increased our ownership of ClariVest Asset Management LLC (“ClariVest”) from 45% to 100% making ClariVest a wholly-owned subsidiary of Eagle Asset Management. ClariVest has been included in our consolidated financial statements since our initial investment of the 45% interest as we concluded we were required to consolidate as defined by accounting guidance. The increase in ownership was accounted for as a shareholder’s equity transaction. In April 2019, we completed our acquisition of Silver Lane Advisors LLC (“Silver Lane”), a boutique investment bank focused on merger & acquisition advisory. Silver Lane has been integrated into our Capital Markets segment. We accounted for this acquisition under the acquisition method of accounting with the assets and liabilities of Silver Lane recorded as of the acquisition date at their respective fair values in our consolidated financial statements. For purposes of certain acquisition-related financial reporting requirements, the Silver Lane acquisition was not considered a material acquisition. Silver Lane’s results of operations have been included in our results prospectively from April 1, 2019. |
FAIR VALUE
FAIR VALUE | 9 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | FAIR VALUE Our “Financial instruments owned” and “Financial instruments sold but not yet purchased” on our Condensed Consolidated Statements of Financial Condition are recorded at fair value under GAAP. For further information about such instruments and our significant accounting policies related to fair value, see Note 2 and Note 4 of our 2018 Form 10-K. The following tables present assets and liabilities measured at fair value on a recurring basis. Netting adjustments represent the impact of counterparty and collateral netting on our derivative balances included on our Condensed Consolidated Statements of Financial Condition. See Note 6 for additional information. $ in millions Level 1 Level 2 Level 3 Netting adjustments Balance as of 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 Balance as of 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 Level 3 recurring fair value measurements The following tables present the changes in fair value for Level 3 assets and liabilities measured at fair value on a recurring basis. The realized and unrealized gains and losses in the tables may include changes in fair value that were attributable to both observable and unobservable inputs. In the following tables, gains/(losses) on trading instruments are reported in “Principal transactions,” gains/(losses) on private equity and other investments are reported in “Other” revenues, and gains/(losses) on available-for-sale securities are reported in either “Other” revenues (when included in earnings) or “Other comprehensive income” in our Condensed Consolidated Statements of Income and Comprehensive Income. 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 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 $ 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 $ — $ — As of June 30, 2019 , 12% of our assets and 2% of our liabilities were measured at fair value on a recurring basis. In comparison, as of September 30, 2018 , 10% of our assets and 2% of our liabilities were measured at fair value on a recurring basis. Instruments measured at fair value on a recurring basis categorized as Level 3 represented 3% of our assets measured at fair value as of both June 30, 2019 and September 30, 2018 . Quantitative information about level 3 fair value measurements The following tables present the valuation techniques and significant unobservable inputs used in the valuation of a significant majority of our financial instruments classified as level 3. These inputs represent those that a market participant would take into account when pricing these instruments. Weighted averages are calculated by weighting each input by the relative fair values of the related financial instrument. 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. Qualitative disclosure about unobservable inputs For our recurring fair value measurements categorized within Level 3 of the fair value hierarchy, the sensitivity of the fair value measurement to changes in significant unobservable inputs and interrelationships between those unobservable inputs are described in the following sections. Other investments - ARS preferred The future interest rate and prepayment assumptions impacting the valuation of the auction rate securities are directly related. As short-term interest rates rise, the penalty interest rates, which are embedded in most of these securities in the event auctions fail to set the security’s interest rate, also increase. As penalty interest rates rise, we estimate that issuers of the securities will have the economic incentive to refinance (and thus prepay) the securities. As such, increases in interest rates, which would generally result in an earlier prepayment assumption, would have increased the fair value of the securities. Increases in the discount rates would have resulted in a lower fair value of the securities. Private equity investments The significant unobservable inputs used in the fair value measurement of private equity investments generally relate to the financial performance of the investment entity and the market’s required return on investments from entities in industries in which we hold investments. Increases in the discount rate and/or a later terminal year would have resulted in a lower fair value measurement. Increases in the terminal EBITDA multiple would have resulted in a higher fair value measurement. Investments in private equity measured at net asset value per share As more fully described in Note 2 of our 2018 Form 10-K, as a practical expedient, we utilize NAV or its equivalent to determine the recorded value of a portion of our private equity investments portfolio. We utilize NAV when the fund investment does not have a readily determinable fair value and the NAV of the fund is calculated in a manner consistent with the measurement principles of investment company accounting, including measurement of the investments at fair value. Our private equity portfolio as of June 30, 2019 included various direct investments, as well as investments in third-party private equity funds and various private equity funds which we sponsor. The portfolio is primarily invested in a broad range of industries including leveraged buyouts, growth capital, distressed capital, venture capital and mezzanine capital. Due to the closed-end nature of certain of our fund investments, such investments cannot be redeemed directly with the funds. Our investment is monetized by distributions received through the liquidation of the underlying assets of those funds, the timing of which is uncertain. The following table presents the recorded value and unfunded commitments related to our private equity investments portfolio. $ 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 Of the total private equity investments, the portions we owned were $101 million and $ 103 million as of June 30, 2019 and September 30, 2018 , respectively. The portions of the private equity investments we did not own were $45 million and $44 million as of June 30, 2019 and September 30, 2018 , respectively, and were included as a component of noncontrolling interests on our Condensed Consolidated Statements of Financial Condition. Many of these fund investments meet the definition of prohibited covered funds as defined by the Volcker Rule enacted pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd-Frank Act”). We have received approval from the Board of Governors of the Federal Reserve System (the “Fed”) to continue to hold the majority of our covered fund investments until July 2022. However, our current focus is on the divestiture of this portfolio. Financial instruments measured at fair value on a nonrecurring basis The following table presents assets measured at fair value on a nonrecurring basis along with the valuation techniques and significant unobservable inputs used in the valuation of the assets classified as level 3. These inputs represent those that a market participant would take into account when pricing these instruments. Weighted averages are calculated by weighting each input by the relative fair values of the related financial instrument. $ 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. Financial instruments not measured at fair value The following table presents the estimated fair value and fair value hierarchy of financial assets and liabilities that are not recorded at fair value on the Condensed Consolidated Statements of Financial Condition. This table excludes financial instruments that are carried at amounts which approximate fair value. Refer to Note 4 of our 2018 Form 10-K for discussion of the fair value hierarchy classification of our financial instruments that are not recorded at fair value. Effective October 1, 2018, we adopted new accounting guidance (ASU 2016-01), which requires the fair value of financial instruments not carried at fair value on our statement of financial condition to be estimated utilizing an exit price and eliminates certain disclosure requirements related to these instruments, including exempting certain financial instruments from disclosure (e.g., demand deposits). Prior periods have not been updated to reflect this new accounting guidance. $ 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 |
AVAILABLE-FOR-SALE SECURITIES
AVAILABLE-FOR-SALE SECURITIES | 9 Months Ended |
Jun. 30, 2019 | |
Debt Securities, Available-for-sale [Abstract] | |
AVAILABLE-FOR-SALE SECURITIES | AVAILABLE-FOR-SALE SECURITIES Available-for-sale securities are comprised of agency MBS and CMOs owned by Raymond James Bank, N.A. (“RJ Bank”). Refer to the discussion of our available-for-sale securities accounting policies, including the fair value determination process, in Note 2 of our 2018 Form 10-K. As of October 1, 2018, we adopted new accounting guidance related to the classification and measurement of financial instruments (ASU 2016-01), which requires changes in the fair value of equity securities to be recorded in net income. See Note 2 for further information. As a result, on a prospective basis beginning October 1, 2018, unrealized gains/(losses) on our equity securities previously classified and accounted for as available-for-sale are recorded in net income instead of OCI. Accordingly, as of the date of adoption we reclassified approximately $68 million of equity securities, substantially all of which consisted of preferred ARS, from “Available-for-sale securities” to “Other investments” on our Condensed Consolidated Statements of Financial Condition. The following table details the amortized cost and fair values of our available-for-sale securities. $ 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 See Note 4 for additional information regarding the fair value of available-for-sale securities. The following table details the contractual maturities, amortized cost, carrying values and current yields for our available-for-sale securities. Since our MBS and CMO available-for-sale securities are backed by mortgages, actual maturities may differ from contractual maturities because borrowers may have the right to prepay obligations without prepayment penalties. 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 % The following table details the gross unrealized losses and fair value of securities that were in a loss position at the reporting period end, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position. 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 ) U.S. government agencies guarantee the contractual cash flows of the agency MBS and CMOs. At June 30, 2019 , of the 131 agency MBS and CMOs in an unrealized loss position, six were in a continuous unrealized loss position for less than 12 months and 125 were for 12 months or more. We do not consider these securities to be other-than-temporarily impaired due to the guarantee of the full payment of principal and interest, and the fact that we have the ability and intent to hold these securities. At June 30, 2019 , debt securities we held in excess of ten percent of our equity included Federal National Home Mortgage Association (“ FNMA ”) and Federal Home Loan Mortgage Corporation (“ FHLMC ”) which had an amortized cost of $1.85 billion and $833 million , respectively, and a fair value of $1.86 billion and $839 million , respectively. During the three and nine months ended June 30, 2019 and 2018 , there were no sales of agency MBS or CMO available-for-sale securities. |
DERIVATIVE ASSETS AND DERIVATIV
DERIVATIVE ASSETS AND DERIVATIVE LIABILITIES | 9 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE ASSETS AND DERIVATIVE LIABILITIES | DERIVATIVE ASSETS AND DERIVATIVE LIABILITIES Our derivative assets and derivative liabilities are recorded at fair value and are included in “Derivative assets” and “Derivative liabilities” on our Condensed Consolidated Statements of Financial Condition. Cash flows related to our derivatives are included within operating activities in the Condensed Consolidated Statements of Cash Flows. The significant accounting policies governing our derivatives, including our methodologies for determining fair value, are described in Note 2 of our 2018 Form 10-K. Derivatives arising from our fixed income business operations We enter into interest rate derivatives in our fixed income business to facilitate client transactions or to actively manage risk exposures that arise from our client activity, including a portion of our trading inventory. The majority of these derivatives are traded in the over-the-counter market and are executed directly with another counterparty or are cleared and settled through a clearing organization. We also facilitate matched book derivative transactions in which Raymond James Financial Products, Inc. (“RJFP”), a wholly owned subsidiary, enters into interest rate derivatives with clients. For every derivative RJFP enters into with a client, it also enters into an offsetting derivative on terms that mirror the client transaction with a credit support provider, which is a third-party financial institution. Any collateral required to be exchanged under these derivatives is administered directly between the client and the third-party financial institution. Due to this pass-through transaction structure, RJFP has completely mitigated the market and credit risk on these derivatives. As a result, derivatives for which the fair value is in an asset position have an equal and offsetting derivative liability. RJFP only has credit risk on its uncollected derivative transaction fee revenues. The receivable for uncollected derivative transaction fee revenues of RJFP was insignificant as of June 30, 2019 and September 30, 2018 . Derivatives arising from RJ Bank’s business operations We enter into forward foreign exchange contracts and interest rate swaps to hedge certain exposures arising out of RJ Bank’s business operations. Each of these activities is described in Note 2 of our 2018 Form 10-K and in the following paragraphs. We enter into three-month forward foreign exchange contracts primarily to hedge the risks related to RJ Bank’s investment in its Canadian subsidiary, as well as their risk resulting from transactions denominated in currencies other than the U.S. dollar. The majority of these derivatives are designated as net investment hedges. The cash flows associated with certain assets held by RJ Bank provide interest income at fixed interest rates. Therefore, the value of these assets, absent any risk mitigation, is subject to fluctuation based upon changes in market rates of interest over time. RJ Bank enters into floating-rate advances from the Federal Home Loan Bank (“FHLB”) to, in part, fund these assets and then enters into interest rate contracts which swap variable interest payments on this debt for fixed interest payments. These interest rate swaps are designated as cash flow hedges and effectively fix RJ Bank’s cost of funds associated with these assets to mitigate a portion of the market risk. Derivative arising from our acquisition of Alex. Brown As part of our acquisition of Alex. Brown (see Note 3 of our 2018 Form 10-K for additional information regarding the acquisition), we assumed certain DBRSU awards, which will ultimately be settled in Deutsche Bank AG (“DB”) common shares, provided certain performance metrics are achieved. The DBRSU obligation results in a derivative, the fair value and notional of which is measured by multiplying the number of outstanding DBRSU awards to be settled in DB common shares as of the end of the reporting period by the end of reporting period DB share price, as traded on the New York Stock Exchange. Counterparty netting and collateral related to derivatives To reduce credit exposure on certain of our derivative transactions, we may enter into a master netting arrangement that allows for net settlement of all derivatives with each counterparty. In addition, the credit support annex allows parties to the master netting agreement to mitigate their credit risk by requiring the party which is out of the money to post collateral. We accept collateral in the form of cash or other marketable securities. Where permitted, we elect to net-by-counterparty certain derivatives entered into under a legally enforceable master netting agreement and, therefore, the fair value of those derivatives are netted by counterparty on the Condensed Consolidated Statements of Financial Condition. As we elect to net-by-counterparty the fair value of such derivatives, we also net-by-counterparty cash collateral exchanged as part of those derivative agreements. We may also require certain counterparties to make a deposit at the inception of a derivative agreement, referred to as “initial margin.” This initial margin is included in “Other payables” on our Condensed Consolidated Statements of Financial Condition. We are also required to maintain deposits with the clearing organizations we utilize to clear certain of our interest rate derivatives. This initial margin is included as a component of “Other investments” or “Available-for-sale securities” on our Condensed Consolidated Statements of Financial Condition. On a daily basis, we also pay cash to or receive cash from these clearing organizations due to changes in the fair value of the derivatives which they clear. Such payments are referred to as “variation margin” and are considered to be settlement of the related derivatives. Due to the short-term nature of forward foreign exchange contracts, RJ Bank is generally not required to post collateral with and does not generally receive collateral from its respective counterparties. Derivative balances included in our financial statements The following table presents the gross fair value and notional amount of derivatives by product type, the amounts of counterparty and cash collateral netting on our Condensed Consolidated Statements of Financial Condition, as well as collateral posted and received under credit support agreements that do not meet the criteria for netting under GAAP. 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. The following table details the gains/(losses) included in AOCI, net of income taxes, on derivatives designated as hedging instruments. These gains/(losses) include any amounts reclassified from AOCI to income during the period. See Note 15 for additional information. 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 There were no components of derivative gains or losses excluded from the assessment of hedge effectiveness for each of the three and nine months ended June 30, 2019 and 2018 . We expect to reclassify an insignificant amount of interest expense out of AOCI and into earnings within the next 12 months . The maximum length of time over which forecasted transactions are or will be hedged is 8 years . The following table details the gains/(losses) on derivatives not designated as hedging instruments recognized in the Condensed Consolidated Statements of Income and Comprehensive Income. $ 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 Risks associated with, and our risk mitigation related to, our derivative contracts Credit risk We are exposed to credit losses in the event of nonperformance by the counterparties to forward foreign exchange derivative agreements and interest rate derivatives that are not cleared through a clearing organization. Where we are subject to credit exposure, we perform a credit evaluation of counterparties prior to entering into derivative transactions and we monitor their credit standings. We may require initial margin or collateral from counterparties in the form of cash deposits or other marketable securities to support certain of these obligations as established by the credit threshold specified by the agreement and/or as a result of monitoring the credit standing of the counterparties. Our only exposure to credit risk in the matched book derivatives operations is related to our uncollected derivative transaction fee revenues. We are not exposed to market risk on these derivatives due to the pass-through transaction structure previously described. Interest rate and foreign exchange risk We are exposed to interest rate risk related to certain of our interest rate derivatives. We are also exposed to foreign exchange risk related to our forward foreign exchange derivatives. On a daily basis, we monitor our risk exposure on our derivatives based on established limits with respect to a number of factors, including interest rate, foreign exchange spot and forward rates, spread, ratio, basis and volatility risks. These exposures are monitored both on a total portfolio basis and separately for each agreement for selected maturity periods. Derivatives with credit-risk-related contingent features Certain of our derivative contracts contain provisions that require our debt to maintain an investment-grade rating from one or more of the major credit rating agencies. If our debt were to fall below investment-grade, the counterparties to the derivative instruments could terminate and request immediate payment or demand immediate and ongoing overnight collateralization on our derivative instruments in liability positions. The aggregate fair value of all derivative instruments with such credit-risk-related contingent features that were in a liability position was insignificant as of both June 30, 2019 and September 30, 2018 . |
COLLATERALIZED AGREEMENTS AND F
COLLATERALIZED AGREEMENTS AND FINANCINGS | 9 Months Ended |
Jun. 30, 2019 | |
Offsetting [Abstract] | |
COLLATERALIZED AGREEMENTS AND FINANCINGS | COLLATERALIZED AGREEMENTS AND FINANCINGS Collateralized agreements are securities purchased under agreements to resell (“reverse repurchase agreements”) and securities borrowed. Collateralized financings are securities sold under agreements to repurchase (“repurchase agreements”) and securities loaned. We enter into these transactions in order to facilitate client activities, invest excess cash, acquire securities to cover short positions and finance certain firm activities. The significant accounting policies governing our collateralized agreements and financings are described in Note 2 of our 2018 Form 10-K. For financial statement purposes, we do not offset our reverse repurchase agreements, repurchase agreements, securities borrowing and securities lending transactions because the conditions for netting as specified by GAAP are not met. Our reverse repurchase agreements, repurchase agreements, securities borrowing and securities lending transactions are governed by master agreements that are widely used by counterparties and that may allow for net settlements of payments in the normal course, as well as offsetting of all contracts with a given counterparty in the event of bankruptcy or default of one of the parties to the transaction. Although not offset on the Condensed Consolidated Statements of Financial Condition, these transactions are included in the following table. 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 The required market value of the collateral associated with collateralized agreements and financings generally exceeds the amount financed. Accordingly, the total collateral received under reverse repurchase agreements and the total amount of collateral posted under repurchase agreements exceeds the carrying value of these agreements on our Condensed Consolidated Statements of Financial Condition. In the event the market value of the securities we pledge as collateral in these activities declines, we may have to post additional collateral or reduce the borrowing amounts. We monitor such levels daily. Collateral received and pledged We receive cash and securities as collateral, primarily in connection with reverse repurchase agreements, securities borrowed, derivative transactions and client margin loans. The collateral we receive reduces our credit exposure to individual counterparties. In many cases, we are permitted to deliver or repledge financial instruments we have received as collateral in our repurchase agreements, securities lending agreements, other secured borrowings, satisfaction of deposit requirements with clearing organizations, or otherwise meeting either our or our clients’ settlement requirements. The following table presents financial instruments at fair value that we received as collateral, were not included on our Condensed Consolidated Statements of Financial Condition, and that were available to be delivered or repledged, along with the balances of such instruments that were delivered or repledged, to satisfy one of our purposes previously described. $ in millions June 30, September 30, 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 Encumbered assets We pledge certain of our financial instruments to collateralize either repurchase agreements or other secured borrowings, maintain lines of credit, or to satisfy our collateral or settlement requirements with counterparties or clearing organizations who may or may not have the right to deliver or repledge such instruments. The following table presents information about the fair value of our assets that have been pledged for one of the purposes previously described. $ in millions June 30, September 30, 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 Repurchase agreements, repurchase-to-maturity transactions and securities loaned accounted for as secured borrowings The following table presents the remaining contractual maturity of repurchase agreements and securities lending transactions accounted for as secured borrowings. $ 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 As of both June 30, 2019 and September 30, 2018 , we did not have any “repurchase-to-maturity” agreements, which are repurchase agreements where a security is transferred under an agreement to repurchase and the maturity date of the repurchase agreement matches the maturity date of the underlying security. |
BANK LOANS, NET
BANK LOANS, NET | 9 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
BANK LOANS, NET | BANK LOANS, NET Bank client receivables are comprised of loans originated or purchased by RJ Bank and include commercial and industrial (“C&I”) loans, tax-exempt loans, securities-based and other loans (“SBL and other”), and commercial and residential real estate loans. These receivables are collateralized by first and, to a lesser extent, second mortgages on residential or other real property, other assets of the borrower, a pledge of revenue or are unsecured. See Note 2 of our 2018 Form 10-K for a discussion of accounting policies related to bank loans and allowances for losses. We segregate our loan portfolio into six loan portfolio segments: C&I, commercial real estate (“CRE”), CRE construction, tax-exempt, residential mortgage, and SBL and other. These portfolio segments also serve as the portfolio loan classes for purposes of credit analysis, except for residential mortgage loans which are further disaggregated into residential first mortgage and residential home equity classes. The following table presents the balances for both the held for sale and held for investment loan portfolios, as well as the associated percentage of each portfolio segment in RJ Bank’s total loan portfolio. “Loans held for sale, net” and “Total loans held for investment, net” in the following table are presented net of unearned income and deferred expenses, which include purchase premiums, purchase discounts and net deferred origination fees and costs. 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 At June 30, 2019 , the FHLB had a blanket lien on RJ Bank’s residential mortgage loan portfolio as security for the repayment of certain borrowings. See Note 12 for more information regarding borrowings from the FHLB. Loans held for sale RJ Bank originated or purchased $522 million and $1.79 billion of loans held for sale during the three and nine months ended June 30, 2019 , respectively, and $444 million and $1.13 billion during the three and nine months ended June 30, 2018 respectively. Proceeds from the sale of these held for sale loans amounted to $159 million and $516 million during the three and nine months ended June 30, 2019 and $166 million and $394 million during the three and nine months ended June 30, 2018 , respectively. Net gains resulting from such sales were insignificant in all periods during the three and nine months ended June 30, 2019 and 2018 . Purchases and sales of loans held for investment The following table presents purchases and sales of any loans held for investment by portfolio segment. $ 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 Sales in the preceding table represent the recorded investment of loans held for investment that were transferred to loans held for sale and subsequently sold to a third party during the respective period. As more fully described in Note 2 of our 2018 Form 10-K, corporate loan (C&I, CRE and CRE construction) sales generally occur as part of our credit management activities. Aging analysis of loans held for investment The following table presents an analysis of the payment status of loans held for investment. Amounts in the table exclude any net unearned income and deferred expenses. $ 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 The preceding table includes $37 million and $11 million at June 30, 2019 and September 30, 2018 , respectively, of nonaccrual loans which were current pursuant to their contractual terms. Other real estate owned, included in “Other assets” on our Condensed Consolidated Statements of Financial Condition, was $3 million at both June 30, 2019 and September 30, 2018 . The recorded investment in mortgage loans secured by one-to-four family residential properties for which formal foreclosure proceedings were in process was $8 million and $12 million at June 30, 2019 and September 30, 2018 , respectively. Impaired loans and troubled debt restructurings The following table provides a summary of RJ Bank’s impaired loans. 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 Impaired loan balances with allowances for loan losses have had reserves established based upon management’s analysis. There is no allowance required when the discounted cash flow, collateral value or market value of a loan equals or exceeds the carrying value. These are generally loans in process of foreclosure that have already been adjusted to fair value. The preceding table includes troubled debt restructurings (“TDRs”) of $10 million and $19 million related to CRE and residential first mortgage loans, respectively, at June 30, 2019 and $21 million of residential first mortgage TDRs at September 30, 2018 . The average balance of the total impaired loans was as follows. 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 Credit quality indicators The credit quality of RJ Bank’s loan portfolio is summarized monthly by management using the standard asset classification system utilized by bank regulators for the SBL and other and residential mortgage loan portfolios, and internal risk ratings, which correspond to the same standard asset classifications, for the corporate loan portfolios. These classifications are divided into three groups: Not Classified (Pass), Special Mention, and Classified or Adverse Rating (Substandard, Doubtful and Loss). These terms are defined as follows: Pass – Loans which are well protected by the current net worth and paying capacity of the obligor (or guarantors, if any) or by the fair value, less costs to acquire and sell, of any underlying collateral in a timely manner. Special Mention – Loans which have potential weaknesses that deserve management’s close attention. These loans are not adversely classified and do not expose RJ Bank to sufficient risk to warrant an adverse classification. Substandard – Loans which are inadequately protected by the current sound worth and paying capacity of the obligor or by the collateral pledged, if any. Loans with this classification are characterized by the distinct possibility that RJ Bank will sustain some loss if the deficiencies are not corrected. Doubtful – Loans which have all the weaknesses inherent in loans classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full highly questionable and improbable on the basis of currently-known facts, conditions and values. Loss – Loans which are considered by management to be uncollectible and of such little value that their continuance on RJ Bank’s books as an asset, without establishment of a specific valuation allowance or charge-off, is not warranted. RJ Bank does not have any loan balances within this classification because, in accordance with its accounting policy, loans, or a portion thereof considered to be uncollectible, are charged-off prior to the assignment of this classification. The following table presents the credit quality of RJ Bank’s held for investment loan portfolio. $ 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 classified as special mention, substandard or doubtful are all considered to be “criticized” loans. Allowance for loan losses and reserve for unfunded lending commitments The following table presents changes in the allowance for loan losses of RJ Bank by portfolio segment. 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 The following table presents, by loan portfolio segment, RJ Bank’s recorded investment (excluding any net unearned income and deferred expenses) and the related allowance for loan losses. 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 The reserve for unfunded lending commitments, which is included in “Other payables” on our Condensed Consolidated Statements of Financial Condition, was $10 million at both June 30, 2019 and September 30, 2018 . |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 9 Months Ended |
Jun. 30, 2019 | |
Variable Interest Entities [Abstract] | |
VARIABLE INTEREST ENTITIES | VARIABLE INTEREST ENTITIES A VIE requires consolidation by the entity’s primary beneficiary. We evaluate all of the entities in which we are involved to determine if the entity is a VIE and if so, whether we hold a variable interest and are the primary beneficiary. Refer to Note 2 of our 2018 Form 10-K for a discussion of our principal involvement with VIEs and the accounting policies regarding determination of whether we are deemed to be the primary beneficiary of VIEs. VIEs where we are the primary beneficiary Of the VIEs in which we hold an interest, we have determined that certain limited partnerships which are part of our private equity investments portfolio (“Private Equity Interests”), a Low-Income Housing Tax Credit fund (“LIHTC fund”) in which RJ Bank is an investor and an affiliate of Raymond James Tax Credit Funds, Inc. (“RJTCF”) is the managing member, a multi-investor LIHTC fund where RJTCF provides an investor member with a guaranteed return on their investment (“Guaranteed LIHTC Fund”), certain other LIHTC funds and the trust we utilize in connection with restricted stock unit (“RSU”) awards granted to certain employees of one of our Canadian subsidiaries (the “Restricted Stock Trust Fund”) require consolidation in our financial statements, as we are deemed the primary beneficiary of such VIEs. The aggregate assets and liabilities of the VIEs we consolidate are provided in the following table. Aggregate assets and aggregate liabilities may differ from the consolidated carrying value of assets and liabilities due to the elimination of intercompany assets and liabilities held by the consolidated VIE. $ 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 See Note 14 of this Form 10-Q for additional information regarding the commitment related to the Guaranteed LIHTC Fund and Note 9 of our 2018 Form 10-K for information regarding the financing asset associated with this fund. The following table presents information about the carrying value of the assets, liabilities and equity of the VIEs which we consolidate and which are included on our Condensed Consolidated Statements of Financial Condition. The noncontrolling interests presented in this table represent the portion of these net assets which are not ours. $ 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 The trust fund investment in RJF common stock in the preceding table relates to the Restricted Stock Trust Fund, which is included in “Treasury stock” on our Condensed Consolidated Statements of Financial Condition. VIEs where we hold a variable interest but are not the primary beneficiary As discussed in Note 2 of our 2018 Form 10-K, we have concluded that for certain VIE s we are not the primary beneficiary and therefore do not consolidate these VIE s. Such VIE s include certain Private Equity Interests, certain LIHTC funds, and other limited partnerships. Our risk of loss for these VIE s is limited to our investments in, advances to, and/or receivables due from these VIE s. Aggregate assets, liabilities and risk of loss The aggregate assets, liabilities, and our exposure to loss from those VIEs in which we hold a variable interest, but as to which we have concluded we are not the primary beneficiary, are provided in the following table. 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 |
GOODWILL AND IDENTIFIABLE INTAN
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS, NET | 9 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INDENTIFIABLE INTANGIBLE ASSETS, NET | GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS, NET Our goodwill and identified intangible assets result from various acquisitions. See Notes 2 and 12 of our 2018 Form 10-K for information about our goodwill and intangible assets, including the related accounting policies. We had an addition to goodwill of $7 million during the three months ended June 30, 2019 due to our acquisition of Silver Lane. See Note 3 of this Form 10-Q for additional information regarding this acquisition. We perform goodwill and indefinite-lived intangible asset impairment testing on an annual basis or when an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value or indicate that the asset is impaired. We performed our latest annual impairment testing for our goodwill and indefinite-lived intangible asset as of our January 1, 2019 evaluation date, evaluating balances as of December 31, 2018 . We performed a qualitative impairment assessment for each of our reporting units that had goodwill, as well as for our indefinite-lived intangible asset. Our qualitative assessments consider macroeconomic indicators, such as trends in equity and fixed income markets, GDP, unemployment rates, interest rates, housing markets and trade policy. We also consider regulatory changes, reporting unit specific results, and changes in key personnel and strategy. Changes in these indicators, and our ability to respond to such changes, may trigger the need for impairment testing at a point other than our annual assessment date. Based upon the outcome of our qualitative assessments, no impairment was identified. No events have occurred since our assessments that would cause us to update this impairment testing. |
BANK DEPOSITS
BANK DEPOSITS | 9 Months Ended |
Jun. 30, 2019 | |
Deposits [Abstract] | |
BANK DEPOSITS | BANK DEPOSITS Bank deposits include savings and money market accounts, certificates of deposit with RJ Bank, Negotiable Order of Withdrawal (“NOW”) accounts and demand deposits. The following table presents a summary of bank deposits including the weighted-average rate, the calculation of which was based on the actual deposit balances at each respective period. 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 % Total bank deposits in the preceding table exclude affiliate deposits of $148 million at June 30, 2019 and $279 million at September 30, 2018 . These affiliate deposits included $147 million at June 30, 2019 and $277 million at September 30, 2018 , held in a deposit account at RJ Bank on behalf of RJF. Savings and money market accounts in the preceding table consist primarily of deposits that are cash balances swept from the client investment accounts maintained at Raymond James & Associates, Inc. (“RJ&A”) to RJ Bank. These balances are held in Federal Deposit Insurance Corporation (“FDIC”) insured bank accounts through the Raymond James Bank Deposit Program (“RJBDP”). The aggregate amount of individual time deposit account balances that exceeded the FDIC insurance limit at June 30, 2019 was approximately $25 million . The following table sets forth the scheduled maturities of certificates of deposit. 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 Interest expense on deposits, excluding interest expense related to affiliate deposits, is summarized in the following table. 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 |
OTHER BORROWINGS
OTHER BORROWINGS | 9 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
OTHER BORROWINGS | OTHER BORROWINGS The following table details the components of other borrowings. $ 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 Borrowings from the FHLB as of June 30, 2019 and September 30, 2018 , were comprised of both floating and fixed-rate advances. As of June 30, 2019 and September 30, 2018 , the floating-rate advances, which have interest rates that reset quarterly, totaled $850 million . The floating-rate advances mature in December 2020 . We use interest rate swaps to manage the risk of increases in interest rates associated with these floating-rate advances by converting the balances subject to variable interest rates to a fixed interest rate. Refer to Note 6 for information regarding these interest rate swaps, which are accounted for as hedging instruments. As of both June 30, 2019 and September 30, 2018 , the fixed-rate advance totaled $25 million and bears interest at a fixed rate of 3.4% . This advance matures in October 2020 . All of the advances were secured by a blanket lien granted to the FHLB on our residential mortgage loan portfolio. The weighted average interest rate on these FHLB advances as of June 30, 2019 and September 30, 2018 was 2.39% and 2.41% , respectively. On February 19, 2019, RJF and RJ&A entered into an unsecured revolving credit facility agreement (the “Credit Facility”) which replaced the previous unsecured revolving credit facility agreement (the “RJF Credit Facility”) entered into by RJF. The Credit Facility has a maturity date of February 2024 and the lenders include a number of financial institutions. This committed unsecured borrowing facility provides for maximum borrowings of up to $500 million , with a sublimit of $300 million for RJF, at variable rates of interest. There were no borrowings outstanding on the Credit Facility as of June 30, 2019 . There is a facility fee associated with the Credit Facility, which varies depending upon RJF ’s credit rating. Based upon RJF ’s credit rating as of June 30, 2019 , the variable rate facility fee, which is applied to the committed amount, was 0.175% per annum. The interest rates for all of our U.S. and Canadian secured and unsecured financing facilities are variable and are based on the Fed Funds rate, London Inter-bank Offered Rate (“LIBOR”), a lenders prime rate, or the Canadian prime rate, as applicable. The weighted average interest rate on the borrowings outstanding as of June 30, 2019 was 3.25% . Borrowings on secured lines of credit were day-to-day and were generally utilized to finance certain fixed income securities. In addition, we have other collateralized financings included in “Securities sold under agreements to repurchase” and “Securities loaned” on our Condensed Consolidated Statements of Financial Condition. See Note 7 for information regarding our collateralized financing arrangements. Mortgage notes payable pertain to mortgage loans on certain of our corporate headquarters offices located in St. Petersburg, Florida. These mortgage loans are secured by land, buildings, and improvements. These mortgage loans bear a fixed interest rate of 5.7% with repayment terms of monthly interest and principal debt service and have a January 2023 maturity. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The income tax provision for interim periods is comprised of tax on ordinary income provided at the most recent estimated annual effective tax rate, adjusted for the tax effect of discrete items. We estimate the annual effective tax rate quarterly based on the forecasted pretax results of our U.S. and non-U.S. operations. Items unrelated to current year ordinary income are recognized entirely in the period identified as a discrete item of tax. These discrete items generally relate to changes in tax laws, adjustments to the actual liability determined upon filing tax returns, excess tax benefits related to share-based compensation and adjustments to previously recorded reserves for uncertain tax positions. For discussion of income tax accounting policies and other income tax related information, see Notes 2 and 16 of our 2018 Form 10-K. Effective tax rate Our effective income tax rate was 25.1% for the nine months ended June 30, 2019 , which was lower than the 34.8% effective tax rate for fiscal year 2018 . The decrease in the current period effective income tax rate compared to fiscal year 2018 ’s effective income tax rate was due to the prior year remeasurement of our deferred tax assets at a lower enacted federal corporate tax rate, which negatively impacted the prior year’s effective income tax rate by 8.1% , as well as a decrease in the current year’s federal tax rate from 24.5% to 21.0% . Uncertain tax positions We anticipate that the uncertain tax position liability balance will not change significantly over the next twelve months. |
COMMITMENTS, CONTINGENCIES AND
COMMITMENTS, CONTINGENCIES AND GUARANTEES | 9 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS, CONTINGENCIES AND GUARANTEES | COMMITMENTS, CONTINGENCIES AND GUARANTEES Commitments and contingencies Loan and underwriting commitments In the normal course of business, we enter into commitments for fixed income and equity underwritings. As of June 30, 2019 , we had three such open underwriting commitments, which were subsequently settled in open market transactions and none of which resulted in a significant loss. As part of our recruiting efforts, we offer loans to prospective financial advisors and certain key revenue producers primarily for recruiting, transitional cost assistance, and retention purposes (see Note 2 of our 2018 Form 10-K for a discussion of our accounting policies governing these transactions). These commitments are contingent upon certain events occurring, including, but not limited to, the individual joining us. As of June 30, 2019 , we had made commitments through the extension of formal offers totaling approximately $214 million ; however, it is possible that not all of our offers will be accepted and therefore, we would not fund the total amount of the offers extended. As of June 30, 2019 , $128 million of the total amount extended consisted of unfunded commitments to prospective financial advisors that had accepted our offers, or recently hired producers. Commitments to extend credit and other credit-related financial instruments RJ Bank has outstanding at any time a significant number of commitments to extend credit and other credit-related off-balance sheet financial instruments such as standby letters of credit and loan purchases, which then extend over varying periods of time. These arrangements are subject to strict underwriting assessments and each customer’s credit worthiness is evaluated on a case-by-case basis. Fixed-rate commitments are also subject to market risk resulting from fluctuations in interest rates and our exposure is limited to the replacement value of those commitments. The following table presents RJ Bank’s commitments to extend credit and other credit-related off-balance sheet financial instruments outstanding. $ 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 Because many of our lending commitments expire without being funded in whole or part, the contractual amounts are not estimates of our actual future credit exposure or future liquidity requirements. We maintain a reserve to provide for potential losses related to the unfunded lending commitments. See Note 8 for further discussion of this reserve for unfunded lending commitments. RJ&A enters into margin lending arrangements which allow customers to borrow against the value of qualifying securities. Margin loans are collateralized by the securities held in the customer’s account at RJ&A. Collateral levels and established credit terms are monitored daily and we require customers to deposit additional collateral or reduce balances as necessary. Investment commitments RJ Bank has committed approximately $81 million as an investor member in a LIHTC fund which has invested in various project partnerships and in which a subsidiary of RJTCF is the managing member (see Note 2 of our 2018 Form 10-K for information regarding the accounting policies governing these investments). As of June 30, 2019 , RJ Bank had invested $80 million of the committed amount. We had unfunded commitments to various private equity investments of $15 million as of June 30, 2019 . Other commitments RJF has committed an amount of up to $225 million , subject to certain limitations, to either lend to, or guarantee obligations of RJTCF in connection with RJTCF’s low-income housing development/rehabilitation and syndication activities. At June 30, 2019 , RJTCF had $96 million outstanding against this commitment. RJTCF may borrow from RJF in order to make investments in, or fund loans or advances to, either project partnerships that purchase and develop properties qualifying for tax credits or LIHTC funds. Investments in project partnerships are sold to various LIHTC funds, which have third-party investors, and for which RJTCF serves as the managing member or general partner. RJTCF typically sells investments in project partnerships to LIHTC funds within 90 days of their acquisition, and the proceeds from the sales are used to repay RJTCF’s borrowings from RJF. RJTCF may also make short-term loans or advances to project partnerships and LIHTC funds. As a part of our fixed income public finance operations, we enter into forward commitments to purchase agency MBS (see the discussion of these activities within Note 2 of our 2018 Form 10-K). At June 30, 2019 , we had $301 million principal amount of outstanding forward MBS purchase commitments, which were expected to be purchased within 90 days following commitment. In order to hedge the market interest rate risk to which we would otherwise be exposed between the date of the commitment and the date of sale of the MBS, we enter into TBA security contracts with investors for generic MBS at specific rates and prices to be delivered on settlement dates in the future. We may be subject to loss if the timing of, or the actual amount of, the MBS differs significantly from the term and notional amount of the TBA security contract to which we entered. These TBA securities and related purchase commitments are accounted for at fair value. As of June 30, 2019 , the fair value of the TBA securities and the estimated fair value of the purchase commitments were insignificant. Guarantees Our U.S. broker-dealer subsidiaries are required by federal law to be members of the Securities Investors Protection Corporation (“SIPC”). The SIPC fund provides protection up to $500 thousand per client for securities and cash held in client accounts, including a limitation of $250 thousand on claims for cash balances. We have purchased excess SIPC coverage through various syndicates of Lloyd’s of London. For RJ&A, our clearing broker-dealer, the additional protection currently provided has an aggregate firm limit of $750 million for cash and securities, including a sub-limit of $1.9 million per client for cash above basic SIPC. Account protection applies when a SIPC member fails financially and is unable to meet obligations to clients. This coverage does not protect against market fluctuations. RJF has provided an indemnity to Lloyd’s of London against any and all losses they may incur associated with the excess SIPC policies. RJTCF has provided a guaranteed return on investment to a third-party investor in the Guaranteed LIHTC Fund and RJF has guaranteed RJTCF’s performance under the arrangement. Under the terms of the performance guarantee, should the underlying LIHTC project partnerships held by the Guaranteed LIHTC Fund fail to deliver a certain amount of tax credits and other tax benefits to this investor over the next three years , RJTCF is obligated to pay the investor an amount that results in the investor achieving a minimum specified return on their investment. A $5 million financing asset was included in “Other assets,” and a related $5 million liability was included in “Other payables” on our Condensed Consolidated Statements of Financial Condition as of June 30, 2019 related to this obligation. The maximum exposure to loss under this guarantee was $5 million at June 30, 2019 , which represented the undiscounted future payments due the investor. We guarantee the debt of one of our private equity investments. The amount of such debt, including the undrawn portion of a revolving credit facility, was $14 million as of June 30, 2019 . The debt, which matures in 2021 , is secured by substantially all of the assets of the borrower. Legal and regulatory matter contingencies In addition to any matters that may be specifically described in the following sections, in the normal course of our business, we have been named, from time to time, as a defendant in various legal actions, including arbitrations, class actions and other litigation, arising in connection with our activities as a diversified financial services institution. RJF and certain of its subsidiaries are subject to regular reviews and inspections by regulatory authorities and self-regulatory organizations. Reviews can result in the imposition of sanctions for regulatory violations, ranging from non-monetary censures to fines and, in serious cases, temporary or permanent suspension from conducting business, or limitations on certain business activities. In addition, regulatory agencies and self-regulatory organizations institute investigations from time to time into industry practices, which can also result in the imposition of such sanctions. We cannot predict if, how or when such proceedings or investigations will be resolved or what the eventual settlement, fine, penalty or other relief, if any, may be. A large number of factors may contribute to this inherent unpredictability: the proceeding is in its early stages; the damages sought are unspecified, unsupported or uncertain; it is unclear whether a case brought as a class action will be allowed to proceed on that basis; the other party is seeking relief other than or in addition to compensatory damages (including, in the case of regulatory and governmental proceedings, potential fines and penalties); the matters present significant legal uncertainties; we have not engaged in settlement discussions; discovery is not complete; there are significant facts in dispute; and numerous parties are named as defendants (including where it is uncertain how liability might be shared among defendants). We contest liability and/or the amount of damages, as appropriate, in each pending matter. Over the last several years, the level of litigation and investigatory activity (both formal and informal) by government and self-regulatory agencies has increased significantly in the financial services industry. There can be no assurance that material losses will not be incurred from claims that have not yet been asserted or are not yet determined to be material. We may from time to time include in any descriptions of individual matters herein certain quantitative information about the plaintiff’s claim against us as alleged in the plaintiff’s pleadings or other public filings. Although this information may provide insight into the potential magnitude of a matter, it does not represent our estimate of reasonably possible loss or our judgment as to any currently appropriate accrual related thereto. Subject to the foregoing, we believe, after consultation with counsel and consideration of the accrued liability amounts included in the accompanying condensed consolidated financial statements, that the outcome of such litigation and regulatory proceedings will not have a material adverse effect on our consolidated financial condition. However, the outcome of such litigation and proceedings could be material to our operating results and cash flows for a particular future period, depending on, among other things, our revenues or income for such period. With respect to legal and regulatory matters for which management has been able to estimate a range of reasonably possible loss as of June 30, 2019 , we estimated the upper end of the range of reasonably possible aggregate loss to be approximately $85 million in excess of the aggregate reserves for such matters. Refer to Note 2 of our 2018 Form 10-K for a discussion of our criteria for recognizing liabilities for contingencies. Legal matters On February 17, 2015, Jyll Brink (“Brink”) filed a putative class action complaint in the U.S. District Court for the Southern District of Florida (the “District Court”) under the caption Jyll Brink v. Raymond James & Associates, Inc. (the “Brink Complaint”). The Brink Complaint alleges that Brink, a former customer of RJ&A, was charged a fee in her Passport Investment Account, and that the fee included an unauthorized and undisclosed profit to RJ&A in violation of its customer agreement and applicable industry standards. The Passport Investment Account is a fee-based account in which clients pay asset-based advisory fees and certain processing fees for ongoing investment advice and monitoring of securities holdings. The Brink Complaint seeks, among other relief, damages in the amount of the difference between the actual cost of processing a trade, as alleged by Brink, and the fee charged by RJ&A. On October 19, 2018, the District Court certified a class of former and current customers of RJ&A who executed a Passport Agreement and were charged processing fees during the period between February 17, 2010 and February 17, 2015. On February 11, 2016, Caleb Wistar (“Wistar”) and Ernest Mayeaux (“Mayeaux”) filed a putative class action complaint in the District Court under the caption Caleb Wistar and Ernest Mayeaux v. Raymond James Financial Services, Inc. and Raymond James Financial Services Advisors, Inc. (as subsequently amended, the “Wistar Complaint”). Similar to the Brink Complaint, the Wistar Complaint alleges that Wistar and Mayeaux, former customers of Raymond James Financial Services, Inc. (“RJFS”) and Raymond James Financial Services Advisors, Inc. (“RJFSA”), were charged a fee in RJFS and RJFSA’s Passport Investment Account and that the fee included an unauthorized and undisclosed profit to RJFS and RJFSA in violation of its customer agreement and applicable industry standards. The Wistar Complaint seeks, among other relief, damages in the amount of the difference between the actual cost of processing a trade, as alleged by Wistar and Mayeaux, and the fee charge by RJFS and RJFSA. On April 5, 2019, the parties to the Brink Complaint and the Wistar Complaint agreed in principle to an aggregate settlement of $15 million. On June 11, 2019, the parties filed a Stipulation of Settlement and Joint Motion for Preliminary Approval of Class Action Settlement and Certification of the Settled Subclasses. On June 12, 2019, the District Court entered an order preliminarily approving the Class Action Settlement and set a hearing date of October 25, 2019 for final approval of the settlement. While the hearing for final approval has been set, the settlement remains subject to approval by the District Court. The settlement amounts for both complaints were included in “Other payables” in our Condensed Consolidated Statement of Financial Condition as of June 30, 2019. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) | 9 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) | ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) All of the components of OCI, net of tax, were attributable to RJF. The following table presents the net change in OCI as well as the changes, and the related tax effects, of each component of AOCI. $ 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 ) As of October 1, 2018, we adopted new accounting guidance related to the classification and measurement of financial instruments (ASU 2016-01), which generally requires changes in the fair value of equity securities to be recorded in net income. As a result, on a prospective basis beginning October 1, 2018, unrealized gains/(losses) on our equity securities previously classified and accounted for as available-for-sale are recorded in net income instead of OCI. Accordingly, we reclassified a cumulative unrealized gain on such securities, net of tax, from AOCI to retained earnings. See Notes 2 and 5 for additional information. Reclassifications from AOCI to net income, excluding taxes, for each of the three and nine months ended June 30, 2019 and 2018 were recorded in “Interest expense” in the Condensed Consolidated Statements of Income and Comprehensive Income. Our net investment hedges and cash flow hedges relate to our derivatives associated with RJ Bank’s business operations (see Note 6 for additional information on these derivatives). Our policy is to release tax effects remaining in AOCI on an individual security basis. |
REVENUES
REVENUES | 9 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
REVENUES | REVENUES On October 1, 2018, we adopted new accounting guidance for revenue from contracts with customers. Under the new guidance, revenue is recognized when promised goods or services are delivered to our customers in an amount we expect to receive in exchange for those goods or services (i.e., the transaction price). Contracts with customers can include multiple services, which are accounted for as separate “performance obligations” if they are determined to be distinct. Our performance obligations to our customers are generally satisfied when we transfer the promised good or service to our customer, either at a point in time or over time. Revenue from a performance obligation transferred at a point in time is recognized at the time that the customer obtains control over the promised good or service. Revenue from our performance obligations satisfied over time are recognized in a manner that depicts our performance in transferring control of the good or service, which is generally measured based on time elapsed, as our customers simultaneously receive and consume the benefit of our services as they are provided. Payment for the majority of our services is considered to be variable consideration, as the amount of revenues we expect to receive is subject to factors outside of our control, including market conditions. Variable consideration is only included in revenue when amounts are not subject to significant reversal, which is generally when uncertainty around the amount of revenue to be received is resolved. We involve third parties in providing services to the customer for some of our contracts with customers. Under the new guidance, we are generally deemed to control the promised services before they are transferred to the customer. Accordingly, beginning with adoption of the new guidance, we present the related revenues gross of the related costs. The following tables present our sources of revenues by segment. See Note 21 for additional information on our segment results. 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 (1) These revenues are generally not in scope of the new accounting guidance for revenue from contracts with customers. Asset management and related administrative fees We earn asset management and related administrative fees for performing asset management, investment advisory and related administrative services for retail and institutional clients. Such fees are generally calculated as a percentage of the value of assets in fee-based accounts under administration in our Private Client Group (“PCG”) segment or the net asset value of institutional accounts, retail accounts we manage on behalf of third-party institutions or funds that we manage in our Asset Management segment. The value of these assets is impacted by market fluctuations and net inflows or outflows of assets. Fees are generally collected quarterly and are based on balances either at the beginning of the quarter, the end of the quarter, or average balances throughout the quarter. Asset management and related administrative fees are recognized on a monthly basis (i.e., over time) as the services are performed. Revenues related to fee-based accounts under administration in PCG are shared by the PCG and Asset Management segments, the amount of which depends on whether clients are invested in assets that are overseen by our Asset Management segment (i.e., included in financial assets under management (“AUM”) in the Asset Management segment) and the administrative services being provided. Asset management revenues earned for retail accounts managed on behalf of third-party institutions, institutional accounts or funds that we manage are recorded entirely in the Asset Management segment. Brokerage revenues Securities commissions Mutual and other fund products and insurance and annuity products We earn revenues for distribution and related support services performed related to mutual and other funds, fixed and variable annuities and insurance products. Depending on the product sold, we may receive an upfront fee for our services, a trailing commission, or some combination thereof. Upfront commissions received are generally based on a fixed rate applied, as a percentage, to amounts invested or the value of the contract at the time of sale and are recognized at the time of sale (or, in the case of insurance and annuity products, when the policy is accepted by the carrier). Trailing commissions are generally based on a fixed rate applied, as a percentage, to the net asset value of the fund, or the value of the insurance policy or annuity contract. Trailing commissions are generally received monthly or quarterly while our client holds the investment or holds the contract. As these trailing commissions are based on factors outside of our control, including market movements and client behavior (i.e., how long clients hold their investment, insurance policy or annuity contract), such revenue is recognized when it is probable that a significant reversal will not occur. Equities, exchange-traded funds (“ETFs”) and fixed income products We earn commissions for executing and clearing transactions for customers, primarily in listed and OTC equity securities, including ETFs, and options. Such revenues primarily arise from transactions for retail clients in our PCG segment, as well as services related to sales and trading activities transacted on an agency basis in our Capital Markets segment. Commissions are recognized on trade date, generally received from the customer on settlement date, and we record a receivable between the trade date and the date collected from the customer. Principal transaction revenues Principal transactions include revenues from customers’ purchases and sales of financial instruments, including fixed income and equity securities and derivatives, in which we transact on a principal basis. To facilitate such transactions, we carry inventories of financial instruments. The gains and losses on such inventories, both realized and unrealized, are reported as principal transactions revenues. Account and service fees Mutual fund and annuity service fees We earn servicing fees for providing sales and marketing support to product partners and for supporting the availability and distribution of their products on our platforms. We also earn servicing fees from such partners for accounting and administrative services. These fees, which are received monthly or quarterly, are generally based on the market value of assets or number of positions in such programs or, in certain cases, are a fixed annual fee, and are recognized over time as the services are performed. RJBDP fees We earn servicing fees from various banks for administrative services we provide related to our clients’ deposits that are swept to such banks as part of RJBDP, our multi-bank sweep program. The amounts received from third-party banks are variable in nature and fluctuate based on client cash balances in the program, as well as the level of short-term interest rates relative to interest paid to clients on balances in the RJBDP. The fees are earned over time as the related administrative services are performed and are received monthly. Our PCG segment also earns servicing fees from RJ Bank, which are based on the number of accounts that are swept to RJ Bank. These fees are eliminated in consolidation. Investment banking revenues We earn revenue from investment banking transactions, including public and private equity and debt financing, merger & acquisition advisory services, and other advisory services. Underwriting revenues, which are typically deducted from the proceeds remitted to the issuer, are recognized on trade date if there is no uncertainty or contingency related to the amount to be paid. Fees from merger & acquisition and advisory assignments are generally recognized at the time the services related to the transaction are completed under the terms of the engagement. Fees for advisory services are typically received upfront, as non-refundable retainer fees, or as a success fee upon completion of a transaction. Expenses related to investment banking transactions are generally deferred until the related revenue is recognized or the assignment is otherwise concluded. Beginning October 1, 2018, such expenses have been included in “Professional fees” on our Condensed Consolidated Statements of Income and Comprehensive Income. Impact of adoption As a result of the adoption of the new accounting guidance, we have changed the presentation of certain costs from a net presentation within revenues to a gross presentation, particularly those related to merger & acquisition, advisory and underwriting transactions and certain administrative costs related to the RJBDP. As a result of this change, “Investment banking” and “Professional fees” were each $6 million higher for the three months ended June 30, 2019 and $16 million higher for the nine months ended June 30, 2019 , and “Account and service fees” and “Other” expense were each $1 million higher for the three months ended June 30, 2019 and $5 million higher for the nine months ended June 30, 2019 . These changes had no impact on pre-tax or net income. Other items At June 30, 2019 and September 30, 2018 , net receivables related to contracts with customers were $340 million and $384 million , respectively. We record deferred revenue from contracts with customers when payment is received prior to the performance of our obligation to the customer. Deferred revenue balances were not material as of June 30, 2019 and September 30, 2018 . We have elected the practical expedient allowable by the guidance to not disclose information about remaining performance obligations pertaining to contracts that have an original expected duration of one year or less. |
INTEREST INCOME AND INTEREST EX
INTEREST INCOME AND INTEREST EXPENSE | 9 Months Ended |
Jun. 30, 2019 | |
Interest Income (Expense), Net [Abstract] | |
INTEREST INCOME AND INTEREST EXPENSE | INTEREST INCOME AND INTEREST EXPENSE The following table details the components of interest income and interest expense. 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 Interest expense related to bank deposits in the preceding table excludes interest expense associated with affiliate deposits, which has been eliminated in consolidation. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 9 Months Ended |
Jun. 30, 2019 | |
Share-based Compensation [Abstract] | |
SHARE-BASED AND OTHER COMPENSATION | SHARE-BASED COMPENSATION We have one share-based compensation plan for our employees, Board of Directors and non-employees (independent contractor financial advisors). Effective during the three months ended June 30, 2019 , we generally reissue our treasury shares under The Amended and Restated 2012 Stock Incentive Plan; however, we are also permitted to issue new shares. Annual share-based compensation awards are primarily issued during the first fiscal quarter of each year. Our share-based compensation accounting policies are described in Note 2 of our 2018 Form 10-K. Other information related to our share-based awards is presented in Note 20 of our 2018 Form 10-K. During the nine months ended June 30, 2019 , we granted approximately 1.5 million RSUs to employees and outside members of our Board of Directors with a weighted-average grant-date fair value of $76.71 . Grants for the three months ended June 30, 2019 were insignificant. For the three and nine months ended June 30, 2019 , total compensation expense for restricted equity awards granted to our employees and members of our Board of Directors was $20 million and $81 million , respectively, compared with $19 million and $70 million , respectively, for the three and nine months ended June 30, 2018 . As of June 30, 2019 , there were $164 million of total pre-tax compensation costs not yet recognized, net of estimated forfeitures, related to RSUs granted to employees and members of our Board of Directors. These costs are expected to be recognized over a weighted-average period of 3.0 years . |
REGULATORY CAPITAL REQUIREMENTS
REGULATORY CAPITAL REQUIREMENTS | 9 Months Ended |
Jun. 30, 2019 | |
Regulatory Capital Requirements [Abstract] | |
REGULATORY CAPITAL REQUIREMENTS | REGULATORY CAPITAL REQUIREMENTS RJF, as a bank holding company and financial holding company, RJ Bank, and our broker-dealer subsidiaries are subject to capital requirements by various regulatory authorities. Capital levels of each entity are monitored to ensure compliance with our various regulatory capital requirements. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on our financial results. As a bank holding company, RJF is subject to the risk-based capital requirements of the Fed. These risk-based capital requirements are expressed as capital ratios that compare measures of regulatory capital to risk-weighted assets, which involve quantitative measures of our assets, liabilities, and certain off-balance-sheet items as calculated under regulatory guidelines. RJF’s and RJ Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk-weightings, and other factors. RJF and RJ Bank are required to maintain minimum amounts and ratios of Total and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined), Tier 1 capital to average assets (as defined), and under rules defined under the Basel III standardized approach, Common equity Tier 1 capital (“CET1”) to risk-weighted assets. RJF and RJ Bank each calculate these ratios in order to assess compliance with both regulatory requirements and their internal capital policies. The minimum CET1, Tier 1 capital, and Total capital ratios of RJF and RJ Bank are supplemented by a capital conservation buffer, consisting entirely of capital that qualifies as CET1, that became fully-phased in at 2.5% of risk-weighted assets on January 1, 2019. Failure to maintain the capital conservation buffer could limit our ability to take certain capital actions, including dividends and common equity repurchases, and to make discretionary bonus payments. As of June 30, 2019 , both RJF’s and RJ Bank’s capital levels exceeded the capital conservation buffer requirement and were each categorized as “well capitalized.” For further discussion of regulatory capital requirements applicable to certain of our businesses and subsidiaries, see Note 21 of our 2018 Form 10-K. To meet requirements for capital adequacy purposes or to be categorized as “well capitalized,” RJF must maintain minimum CET1, Tier 1 capital, Total capital and Tier 1 leverage amounts and ratios as set forth in the following table. 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 % RJF’s Tier 1 and Total capital ratios at June 30, 2019 decreased slightly compared to September 30, 2018 , as the impacts of share repurchases and the growth of the bank loan portfolio during the nine months ended June 30, 2019 were offset by positive earnings during the current period. To meet the requirements for capital adequacy or to be categorized as “well capitalized,” RJ Bank must maintain CET1, Tier 1 capital, Total capital and Tier 1 leverage amounts and ratios as set forth in the following table. 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 % RJ Bank’s Tier 1 and Total capital ratios at June 30, 2019 increased slightly compared to September 30, 2018 due to the impact of positive earnings during the current period, partially offset by growth of the bank loan portfolio. Certain of our broker-dealer subsidiaries are subject to the requirements of the Uniform Net Capital Rule (Rule 15c3-1) under the Securities Exchange Act of 1934. The following table presents the net capital position of RJ&A. $ 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 As of June 30, 2019 , all of our other active regulated domestic and international subsidiaries were in compliance with and exceeded all applicable capital requirements. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The following table presents the computation of basic and diluted earnings per common share. 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 The allocation of earnings and dividends to participating securities in the preceding table represents dividends paid during the period to participating securities plus an allocation of undistributed earnings to participating securities. Participating securities represent unvested restricted stock and certain RSUs. Participating securities and related dividends paid on these participating securities were insignificant for the three and nine months ended June 30, 2019 and 2018 . Undistributed earnings are allocated to participating securities based upon their right to share in earnings if all earnings for the period had been distributed. Dividends per common share declared and paid are detailed in the following table for each respective period. 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 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION We currently operate through the following five segments: PCG; Capital Markets; Asset Management; RJ Bank; and Other. The business segments are determined based upon factors such as the services provided and the distribution channels served and are consistent with how we assess performance and determine how to allocate our resources throughout our subsidiaries. For a further discussion of our business segments, see Note 23 of our 2018 Form 10-K. The following tables present information concerning operations in these segments of business. 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 No individual client accounted for more than ten percent of total revenues in any of the periods presented. 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 The following table presents our total assets on a segment basis. $ 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 The following table presents goodwill, which was included in our total assets, on a segment basis. $ 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 We have operations in the U.S., Canada and Europe. Substantially all long-lived assets are located in the U.S. The following table presents our revenues and income before provision for income taxes and excluding noncontrolling interests, classified by major geographic area in which they were earned. 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. The following table presents our total assets by major geographic area in which they were held. $ 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 The following table presents goodwill, which was included in our total assets, classified by major geographic area in which it was held. $ in millions June 30, 2019 September 30, 2018 Goodwill: U.S. $ 433 $ 426 Canada 42 43 Europe 9 9 Total $ 484 $ 478 |
UPDATE OF SIGNIFICANT ACCOUNT_2
UPDATE OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The accompanying unaudited condensed consolidated financial statements include the accounts of RJF and its consolidated subsidiaries that are generally controlled through a majority voting interest. We consolidate all of our 100% owned subsidiaries. In addition, we consolidate any variable interest entity ( “VIE” ) in which we are the primary beneficiary. Additional information on these VIEs is provided in Note 2 of our Annual Report on Form 10-K (the “2018 Form 10-K”) for the year ended September 30, 2018 , as filed with the United States (“U.S.”) Securities and Exchange Commission (“SEC”) and in Note 9 of this Form 10-Q. When we do not have a controlling interest in an entity, but we exert significant influence over the entity, we apply the equity method of accounting. All material intercompany balances and transactions have been eliminated in consolidation. |
Accounting estimates and assumptions | Accounting estimates and assumptions Certain financial information that is normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“ GAAP ”) but is not required for interim reporting purposes has been condensed or omitted. These unaudited condensed consolidated financial statements reflect, in the opinion of management, all adjustments necessary for a fair presentation of our consolidated financial position and results of operations for the periods presented. The nature of our business is such that the results of any interim period are not necessarily indicative of results for a full year. These unaudited condensed consolidated financial statements should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations and the consolidated financial statements and notes thereto included in our 2018 Form 10-K. To prepare condensed consolidated financial statements in conformity with GAAP , we must make certain estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenues and expenses for the reporting period. Actual results could differ from those estimates and could have a material impact on the condensed consolidated financial statements. |
Reclassifications | Reclassifications Effective with the firm’s first fiscal quarter ended December 31, 2018, we have reclassified certain revenues among income statement line items and renamed certain line items. These reclassifications do not affect the Company’s reported total revenues or the total revenues in any of our segments for any of the previously reported periods. Prior period results have been conformed to the current presentation. In addition to the reclassifications discussed in the preceding paragraph, certain other prior period amounts have been reclassified to conform to the current period’s presentation. |
Loans to financial advisors, net | Loans to financial advisors, net We offer loans to financial advisors and certain other key revenue producers, primarily for recruiting, transitional cost assistance, and retention purposes. We present the outstanding balance of loans to financial advisors on our Condensed Consolidated Statements of Financial Condition, net of the allowance for doubtful accounts. Of the gross balance outstanding, the portion associated with financial advisors who are no longer affiliated with us was $22 million and $20 million at June 30, 2019 and September 30, 2018 , respectively. Our allowance for doubtful accounts was $10 million and $8 million at June 30, 2019 and September 30, 2018 , respectively. |
Recent accounting developments | Recent accounting developments Accounting guidance recently adopted Goodwill - In January 2017, the FASB issued amended guidance to simplify the subsequent measurement of goodwill, eliminating “Step 2” from the goodwill impairment test (ASU 2017-04). Under this amended guidance, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and subsequently recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. We early-adopted this guidance on January 1, 2019 , our goodwill impairment test date. The adoption did not have any impact on our financial position or results of operations. Revenue recognition - In May 2014, the FASB issued new guidance related to revenue recognition (ASU 2014-09). The new guidance is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. It also provides guidance on accounting for certain contract costs and requires additional disclosures. We adopted this guidance as of October 1, 2018, under a modified retrospective approach for all open contracts as of the date of initial adoption. As such, there was no impact on our prior period results. The primary impact of this guidance was the change in the presentation of certain costs from a net presentation within revenues to a gross presentation, particularly costs related to merger & acquisitions advisory and underwriting transactions and certain administrative costs related to our multi-bank sweep program. These presentation changes had no impact on our net earnings. There were no material changes in timing of revenues recognized associated with the adoption. As a result, adoption of this guidance had no material impact on our net results of operations or financial position. See Note 16 for further information. Financial instruments - In January 2016, the FASB issued new guidance related to the accounting for financial instruments (ASU 2016-01). Among its provisions, this new guidance generally requires equity investments to be measured at fair value with changes in fair value recognized in net income, subject to certain exceptions, and amends certain disclosure requirements associated with the fair value of financial instruments. We adopted this guidance as of October 1, 2018, under a modified retrospective approach. As a result, on a prospective basis beginning as of the date of adoption, we record changes in the fair value of our investments in equity securities that were previously classified as available-for-sale in net income. Previously, such unrealized gains/(losses) were reflected in other comprehensive income/(loss) (“OCI”). The impact of adopting the new guidance resulted in a reclassification from accumulated other comprehensive income/(loss) (“AOCI”) to retained earnings of an accumulated gain of approximately $4 million at October 1, 2018 . See Note 5 for further information. Statement of Cash Flows (classification of certain cash receipts and cash payments) - In August 2016, the FASB issued amended guidance related to the Statement of Cash Flows (ASU 2016-15). The amended guidance provides guidance on disclosure and classification of certain items within the statements of cash flows. We adopted this guidance on October 1, 2018 , under a retrospective approach. The adoption did not have a material impact on our consolidated statements of cash flows and did not have an impact on our financial position or results of operations. Statement of Cash Flows (restricted cash) - In November 2016, the FASB issued new guidance related to the classification and presentation of changes in restricted cash on the statement of cash flows (ASU 2016-18). The guidance requires an entity to include restricted cash and cash equivalents in its total of cash and cash equivalents on its statement of cash flows and to present a reconciliation of the beginning-of-period and end-of-period total of such amounts on the statement of cash flows. We adopted this guidance on October 1, 2018 , under a retrospective approach. As a result of adoption, we recorded a decrease of $765 million in net cash provided by operating activities for the nine months ended June 30, 2018 related to reclassifying changes in cash segregated pursuant to regulations from operating activities to the cash and cash equivalents balance in the Condensed Consolidated Statements of Cash Flows. The total of cash segregated pursuant to regulations and cash and cash equivalents is included in a separate table in the Condensed Consolidated Statements of Cash Flows. The adoption did not have an impact on our financial position or results of operations. Definition of a business - In January 2017, the FASB issued amended guidance related to the definition of a business (ASU 2017-01). This amended guidance clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. We adopted this guidance on October 1, 2018 , on a prospective basis. The impact of the adoption of this amended guidance is dependent upon acquisition and disposal activities subsequent to the date of adoption. The adoption did not have any impact on our financial position or results of operations. Share-based payment awards (modifications) - In May 2017, the FASB issued amended guidance that clarifies when changes to the terms or conditions of share-based payment awards require an entity to apply modification accounting (ASU 2017-09). The amended guidance states an entity should account for the effects of a modification unless certain criteria are met which include that the modified award has the same fair value, vesting conditions and classification as the original award. We adopted the guidance on October 1, 2018 , on a prospective basis. We generally do not modify our share-based payments awards. The adoption did not have an impact on our financial position or results of operations. Share-based payment awards (nonemployee) - In June 2018, the FASB issued amended guidance that aligns the measurement and classification guidance for share-based payments to nonemployees with the guidance for share-based payments to employees, with certain exceptions (ASU 2018-07). The amended guidance states an entity should measure the fair value of the award by estimating the fair value of the equity instruments to be issued and, for equity-classified awards, the fair value should be measured on the grant date. The amended guidance also clarifies that nonemployee awards that contain a performance condition are to be measured based on the outcome that is probable and that entities may elect, on an award-by-award basis, to use the expected term or contractual term to measure the award. We early-adopted this standard on October 1, 2018 , using a modified retrospective approach. The adoption did not have a significant impact on our financial position or results of operations. Accounting guidance not yet adopted as of June 30, 2019 Lease accounting - In February 2016, the FASB issued new guidance related to the accounting for leases (ASU 2016-02). The new guidance and subsequent amendments requires the recognition of assets and liabilities on the balance sheet related to the rights and obligations created by lease agreements with terms greater than twelve months, regardless of whether they are classified as finance or operating leases. Consistent with current guidance, the recognition, measurement and presentation of expenses and cash flows arising from a lease will primarily depend upon its classification as a finance or operating lease. The new guidance requires new disclosures to help financial statement users better understand the amount, timing and cash flows arising from leases. This new guidance, including subsequent amendments, is first effective for our fiscal year beginning on October 1, 2019 . Although permitted, we do not plan to early adopt. Upon adoption, we will use the alternative modified retrospective approach, with a cumulative effect adjustment to opening retained earnings in the period of adoption. Our implementation efforts include reviewing existing leases and service contracts, which may include embedded leases. We are near completion with the process of identifying and validating changes to our business policies and processes, systems and controls, and reports to support adoption of the new guidance. This new guidance will increase both our assets and liabilities on our statement of financial condition. We are evaluating the magnitude of such impact. We do not expect a material impact on our results of operations. Credit losses - In June 2016, the FASB issued new guidance related to the measurement of credit losses on financial instruments (ASU 2016-13). The amended guidance involves several aspects of the accounting for credit losses related to certain financial instruments including assets measured at amortized cost, available-for-sale debt securities and certain off-balance sheet commitments. The new guidance, and subsequent updates, broadens the information that an entity must consider in developing its estimated credit losses expected to occur over the remaining life of assets measured either collectively or individually to include historical experience, current conditions and reasonable and supportable forecasts, replacing the existing incurred credit loss model and other models with the Current Expected Credit Losses (“CECL”) model. The new guidance expands the disclosure requirements regarding an entity’s assumptions, models, and methods for estimating credit losses and requires new disclosures of the amortized cost balance for each class of financial asset by credit quality indicator, disaggregated by the year of origination. This new guidance is first effective for our fiscal year beginning on October 1, 2020 and will be adopted under a modified retrospective approach. Although permitted, we do not plan to early adopt. We have continued with our implementation and evaluation efforts, which include a cross-functional team to assess the required changes to our credit loss estimation methodologies and systems, as well as the determination of additional data and resources required to comply with the new guidance. We are evaluating the impact the adoption of this new guidance will have on our financial position and results of operations, which will depend on, among other things, the current and expected macroeconomic conditions and the nature and characteristics of financial assets held by us on the date of adoption. Callable debt securities - In March 2017, the FASB issued new guidance that requires certain premiums on callable debt securities to be amortized to the earliest call date instead of the contractual life of the security (ASU 2017-08). Discounts on callable debt securities will continue to be amortized to the contractual maturity date. This guidance is first effective for our fiscal year beginning on October 1, 2019 and will be adopted using a modified retrospective approach. Although permitted, we do not plan to early adopt. We are evaluating the impact the adoption of this new guidance will have on our financial position and results of operations. Internal use software (cloud computing) - In August 2018, the FASB issued guidance on the accounting for implementation costs incurred by customers in cloud computing arrangements (ASU 2018-15). This guidance requires implementation costs incurred by customers in cloud computing arrangements to be deferred over the non-cancellable term of the cloud computing arrangements plus any optional renewal periods (1) that are reasonably certain to be exercised by the customer or (2) for which exercise of the renewal option is controlled by the cloud service provider. This amended guidance is first effective for our fiscal year beginning on October 1, 2020 with early adoption permitted. The guidance may be adopted either using the prospective or retrospective approach. We are currently evaluating the impact of this new guidance on our financial position and results of operations. Derivatives and hedging (interest rate) - In October 2018, the FASB issued guidance amending Derivatives and Hedging (Topic 815) to add the overnight index swap (OIS rate) rate based on the Secured Overnight Financing Rate (SOFR) to the list of US benchmark interest rates that are eligible to be hedged (ASU 2018-16). This guidance is first effective for our fiscal year beginning on October 1, 2019 . Early adoption is permitted. We are evaluating the impact the adoption of this new guidance will have on our financial position and results of operations. Consolidation (decision making fees) - In October 2018, the FASB issued guidance on how all entities evaluate decision-making fees under the variable interest entity guidance (ASU 2018-17). Under the new guidance, to determine whether decision-making fees represent a variable interest, an entity considers indirect interests held through related parties under common control on a proportionate basis, rather than in their entirety. This guidance is first effective for our fiscal year beginning on October 1, 2020 . Early adoption is permitted. We are evaluating the impact the adoption of this new guidance will have on our financial position and results of operations. |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Nonrecurring [Table Text Block] | The following table presents assets measured at fair value on a nonrecurring basis along with the valuation techniques and significant unobservable inputs used in the valuation of the assets classified as level 3. These inputs represent those that a market participant would take into account when pricing these instruments. Weighted averages are calculated by weighting each input by the relative fair values of the related financial instrument. $ 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. |
Assets and Liabilities Measured at Fair Value on a Recurring and Nonrecurring Basis | The following tables present assets and liabilities measured at fair value on a recurring basis. Netting adjustments represent the impact of counterparty and collateral netting on our derivative balances included on our Condensed Consolidated Statements of Financial Condition. See Note 6 for additional information. $ in millions Level 1 Level 2 Level 3 Netting adjustments Balance as of 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 Balance as of 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 |
Level 3 Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis, Roll Forward Table of Change in Balances | The following tables present the changes in fair value for Level 3 assets and liabilities measured at fair value on a recurring basis. The realized and unrealized gains and losses in the tables may include changes in fair value that were attributable to both observable and unobservable inputs. In the following tables, gains/(losses) on trading instruments are reported in “Principal transactions,” gains/(losses) on private equity and other investments are reported in “Other” revenues, and gains/(losses) on available-for-sale securities are reported in either “Other” revenues (when included in earnings) or “Other comprehensive income” in our Condensed Consolidated Statements of Income and Comprehensive Income. 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 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 $ — $ — |
Significant Assumptions Used in Valuation of Level 3 Financial Instruments | The following tables present the valuation techniques and significant unobservable inputs used in the valuation of a significant majority of our financial instruments classified as level 3. These inputs represent those that a market participant would take into account when pricing these instruments. Weighted averages are calculated by weighting each input by the relative fair values of the related financial instrument. 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. |
Net asset value of recorded value and unfunded commitments | The following table presents the recorded value and unfunded commitments related to our private equity investments portfolio. $ 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 |
Carrying Amounts and Estimated Fair Values of Financial Instruments Not Carried at Fair Value | The following table presents the estimated fair value and fair value hierarchy of financial assets and liabilities that are not recorded at fair value on the Condensed Consolidated Statements of Financial Condition. This table excludes financial instruments that are carried at amounts which approximate fair value. Refer to Note 4 of our 2018 Form 10-K for discussion of the fair value hierarchy classification of our financial instruments that are not recorded at fair value. Effective October 1, 2018, we adopted new accounting guidance (ASU 2016-01), which requires the fair value of financial instruments not carried at fair value on our statement of financial condition to be estimated utilizing an exit price and eliminates certain disclosure requirements related to these instruments, including exempting certain financial instruments from disclosure (e.g., demand deposits). Prior periods have not been updated to reflect this new accounting guidance. $ 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 |
AVAILABLE-FOR-SALE SECURITIES (
AVAILABLE-FOR-SALE SECURITIES (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Debt Securities, Available-for-sale [Abstract] | |
Amortized Cost and Estimated Fair Values of Available-For-Sale Securities | The following table details the amortized cost and fair values of our available-for-sale securities. $ 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 |
Contractual Maturities, Amortized Cost, Carrying Values, and Current Yields for Available-For-Sales Securities | The following table details the contractual maturities, amortized cost, carrying values and current yields for our available-for-sale securities. Since our MBS and CMO available-for-sale securities are backed by mortgages, actual maturities may differ from contractual maturities because borrowers may have the right to prepay obligations without prepayment penalties. 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 % |
Available-For-Sale Securities in a Continuous Unrealized Loss Position | The following table details the gross unrealized losses and fair value of securities that were in a loss position at the reporting period end, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position. 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 ) |
DERIVATIVE ASSETS AND DERIVAT_2
DERIVATIVE ASSETS AND DERIVATIVE LIABILITIES (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Liabilities at Fair Value | The following table presents the gross fair value and notional amount of derivatives by product type, the amounts of counterparty and cash collateral netting on our Condensed Consolidated Statements of Financial Condition, as well as collateral posted and received under credit support agreements that do not meet the criteria for netting under GAAP. 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. |
Schedule of Derivative Assets at Fair Value | The following table presents the gross fair value and notional amount of derivatives by product type, the amounts of counterparty and cash collateral netting on our Condensed Consolidated Statements of Financial Condition, as well as collateral posted and received under credit support agreements that do not meet the criteria for netting under GAAP. 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. |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The following table details the gains/(losses) included in AOCI, net of income taxes, on derivatives designated as hedging instruments. These gains/(losses) include any amounts reclassified from AOCI to income during the period. See Note 15 for additional information. 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 |
Schedule of Net Investment Hedges in Accumulated Other Comprehensive Income (Loss) | The following table details the gains/(losses) included in AOCI, net of income taxes, on derivatives designated as hedging instruments. These gains/(losses) include any amounts reclassified from AOCI to income during the period. See Note 15 for additional information. 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 |
Amount of Gain (Loss) on Derivatives Recognized in Income | The following table details the gains/(losses) on derivatives not designated as hedging instruments recognized in the Condensed Consolidated Statements of Income and Comprehensive Income. $ 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 |
COLLATERALIZED AGREEMENTS AND_2
COLLATERALIZED AGREEMENTS AND FINANCINGS (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Offsetting [Abstract] | |
Offsetting assets | Although not offset on the Condensed Consolidated Statements of Financial Condition, these transactions are included in the following table. 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 |
Offsetting liabilities | Although not offset on the Condensed Consolidated Statements of Financial Condition, these transactions are included in the following table. 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 |
Collateral | The following table presents financial instruments at fair value that we received as collateral, were not included on our Condensed Consolidated Statements of Financial Condition, and that were available to be delivered or repledged, along with the balances of such instruments that were delivered or repledged, to satisfy one of our purposes previously described. $ in millions June 30, September 30, 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 |
Encumbered assets | The following table presents information about the fair value of our assets that have been pledged for one of the purposes previously described. $ in millions June 30, September 30, 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 |
Transfer of certain financial assets accounted for as secured borrowings | The following table presents the remaining contractual maturity of repurchase agreements and securities lending transactions accounted for as secured borrowings. $ 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 |
BANK LOANS, NET (Tables)
BANK LOANS, NET (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Held for Sale and Held for Investment Loan Portfolios | The following table presents the balances for both the held for sale and held for investment loan portfolios, as well as the associated percentage of each portfolio segment in RJ Bank’s total loan portfolio. “Loans held for sale, net” and “Total loans held for investment, net” in the following table are presented net of unearned income and deferred expenses, which include purchase premiums, purchase discounts and net deferred origination fees and costs. 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 |
Loan Purchases and Sales | The following table presents purchases and sales of any loans held for investment by portfolio segment. $ 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 |
Analysis of the Payment Status of Loans Held for Investment | The following table presents an analysis of the payment status of loans held for investment. Amounts in the table exclude any net unearned income and deferred expenses. $ 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 The preceding table includes $37 million and $11 million at June 30, 2019 and September 30, 2018 , respectively, of nonaccrual loans which were current pursuant to their contractual terms. |
Summary of Impaired Loans | The following table provides a summary of RJ Bank’s impaired loans. 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 |
Average Balance of Impaired Loans and Interest Income Recognized | The average balance of the total impaired loans was as follows. 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 |
Credit Quality of Held for Investment Loan Portfolio | The following table presents the credit quality of RJ Bank’s held for investment loan portfolio. $ 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 |
Changes in the Allowance for Loan Losses | The following table presents changes in the allowance for loan losses of RJ Bank by portfolio segment. 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 |
Recorded Investment and Related Allowance for Loan Losses, by Loan Portfolio Segment | The following table presents, by loan portfolio segment, RJ Bank’s recorded investment (excluding any net unearned income and deferred expenses) and the related allowance for loan losses. 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 |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Variable Interest Entities [Abstract] | |
VIEs where we are the primary beneficiary - aggregate assets and liabilities | The aggregate assets and liabilities of the VIEs we consolidate are provided in the following table. Aggregate assets and aggregate liabilities may differ from the consolidated carrying value of assets and liabilities due to the elimination of intercompany assets and liabilities held by the consolidated VIE. $ 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 |
VIEs where we are the primary beneficiary - carrying value of assets, liabilities and equity | The following table presents information about the carrying value of the assets, liabilities and equity of the VIEs which we consolidate and which are included on our Condensed Consolidated Statements of Financial Condition. The noncontrolling interests presented in this table represent the portion of these net assets which are not ours. $ 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 |
VIEs where we hold a variable interest but we are not the primary beneficiary - aggregate assets, liabilities and exposure to loss | The aggregate assets, liabilities, and our exposure to loss from those VIEs in which we hold a variable interest, but as to which we have concluded we are not the primary beneficiary, are provided in the following table. 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 |
BANK DEPOSITS (Tables)
BANK DEPOSITS (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Deposits [Abstract] | |
Summary of Bank Deposits | The following table presents a summary of bank deposits including the weighted-average rate, the calculation of which was based on the actual deposit balances at each respective period. 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 % |
Scheduled Maturities of Certificates of Deposit | The following table sets forth the scheduled maturities of certificates of deposit. 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 |
Interest Expense on Deposits | Interest expense on deposits, excluding interest expense related to affiliate deposits, is summarized in the following table. 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 |
OTHER BORROWINGS (Tables)
OTHER BORROWINGS (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following table details the components of other borrowings. $ 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 |
COMMITMENTS, CONTINGENCIES AN_2
COMMITMENTS, CONTINGENCIES AND GUARANTEES COMMITMENTS, CONTINGENCIES AND GUARANTEES (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Commitments to Extend Credit and Other Credit-Related Off-Balance Sheet Financial Instruments Outstanding | The following table presents RJ Bank’s commitments to extend credit and other credit-related off-balance sheet financial instruments outstanding. $ 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 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table presents the net change in OCI as well as the changes, and the related tax effects, of each component of AOCI. $ 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 ) |
REVENUES (Tables)
REVENUES (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables present our sources of revenues by segment. See Note 21 for additional information on our segment results. 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 (1) These revenues are generally not in scope of the new accounting guidance for revenue from contracts with customers. |
INTEREST INCOME AND INTEREST _2
INTEREST INCOME AND INTEREST EXPENSE (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Interest Income (Expense), Net [Abstract] | |
Interest Income and Interest Expense | The following table details the components of interest income and interest expense. 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 |
REGULATORY CAPITAL REQUIREMEN_2
REGULATORY CAPITAL REQUIREMENTS (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Raymond James Financial Inc | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |
Summary of Minimum Requirements Under Regulatory Framework | To meet requirements for capital adequacy purposes or to be categorized as “well capitalized,” RJF must maintain minimum CET1, Tier 1 capital, Total capital and Tier 1 leverage amounts and ratios as set forth in the following table. 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 % |
RJ Bank | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |
Summary of Minimum Requirements Under Regulatory Framework | To meet the requirements for capital adequacy or to be categorized as “well capitalized,” RJ Bank must maintain CET1, Tier 1 capital, Total capital and Tier 1 leverage amounts and ratios as set forth in the following table. 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 % |
Raymond James & Associates Inc | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |
Net Capital and Risk Adjusted Capital Positions of Certain Businesses and Subsidiaries | The following table presents the net capital position of RJ&A. $ 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 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table presents the computation of basic and diluted earnings per common share. 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 |
Dividends per Common Share Declared and Paid | Dividends per common share declared and paid are detailed in the following table for each respective period. 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 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenue from Segments to Consolidated | The following tables present information concerning operations in these segments of business. 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 |
Reconciliation of Net Income (Loss) from Segments to Consolidated | The following tables present information concerning operations in these segments of business. 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 |
Reconciliation of Net Interest Income from Segments to Consolidated [Table Text Block] | The following table presents goodwill, which was included in our total assets, classified by major geographic area in which it was held. $ in millions June 30, 2019 September 30, 2018 Goodwill: U.S. $ 433 $ 426 Canada 42 43 Europe 9 9 Total $ 484 $ 478 The following table presents goodwill, which was included in our total assets, on a segment basis. $ 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 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 |
Reconciliation of Total Assets from Segment to Consolidated | The following table presents our total assets on a segment basis. $ 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 |
Revenues, Income Before Provision for Income Taxes and Excluding Noncontrolling Interests, and Total Assets, Classified by Major Geographic Areas | The following table presents our total assets by major geographic area in which they were held. $ 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 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 $15 million loss on the sale of our operations related to research, sales and trading of European equities incurred during the first fiscal quarter of 2019. |
ORGANIZATION AND BASIS OF PRE_2
ORGANIZATION AND BASIS OF PRESENTATION (Details) | Jun. 30, 2019 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Percent ownership of subsidiaries that are consolidated (in hundredths) | 100.00% |
UPDATE OF SIGNIFICANT ACCOUNT_3
UPDATE OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Millions | 9 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Oct. 01, 2018 | Sep. 30, 2018 | |
Loans to financial advisors, net | ||||
Loans associated with financial advisors no longer affiliated with the entity, net of allowance | $ 22 | $ 20 | ||
Loans associated with financial advisors no longer affiliated with us, allowance | 10 | $ 8 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Decrease to cash provided by operating activities | $ 101 | $ (224) | ||
Accounting Standards Update 2016-18 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Decrease to cash provided by operating activities | $ 765 | |||
Retained earnings | Accounting Standards Update 2016-01 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cumulative effect of adoption of accounting standard | $ 4 |
ACQUISITIONS (Details)
ACQUISITIONS (Details) | Apr. 01, 2019 | Mar. 31, 2019 |
Business Acquisition [Line Items] | ||
Initial investment percentage | 45.00% | |
ClariVest | Eagle Asset Management | ||
Business Acquisition [Line Items] | ||
Ownership interest percentage | 100.00% |
FAIR VALUE, Recurring Fair Valu
FAIR VALUE, Recurring Fair Value Measurements (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Sep. 30, 2018 |
Assets, Fair Value Disclosure | ||
Total trading instruments | $ 803 | $ 702 |
Available-for-sale securities | 2,960 | |
Available-for-sale securities | 2,696 | |
Derivative assets, gross | 384 | 235 |
Amount of derivative assets offset | (80) | (55) |
Net amounts presented on the Condensed Consolidated Statements of Financial Condition | 304 | 180 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Total trading instruments sold but not yet purchased | 287 | 235 |
Derivative liabilities | 375 | 294 |
Total amounts offset | (100) | (47) |
Net amounts presented on the Condensed Consolidated Statements of Financial Condition | 275 | 247 |
Recurring | ||
Assets, Fair Value Disclosure | ||
Total debt securities | 750 | 645 |
Equity securities | 15 | |
Equity securities | 13 | |
Brokered certificates of deposit | 39 | 39 |
Trading Securities, Other Security | 1 | 3 |
Total trading instruments | 702 | |
Total trading instruments | 803 | |
Available-for-sale securities | 2,960 | |
Available-for-sale securities | 2,696 | |
Amount of derivative assets offset | (80) | (55) |
Netting adjustments | (80) | (55) |
Net amounts presented on the Condensed Consolidated Statements of Financial Condition | 304 | 180 |
Other investments | 253 | 202 |
Total assets at fair value on a nonrecurring basis | 4,466 | 3,927 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 278 | 223 |
Equity securities | 6 | 5 |
Other | 3 | 7 |
Total trading instruments sold but not yet purchased | 287 | 235 |
Netting adjustments | (100) | (47) |
Net amounts presented on the Condensed Consolidated Statements of Financial Condition | 275 | 247 |
Total liabilities at fair value on a recurring basis | 562 | 482 |
Recurring | Non-agency MBS and CMOs | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 1 | |
Recurring | Municipal and provincial obligations | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 1 | 1 |
Recurring | Corporate obligations | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 17 | 27 |
Recurring | Government obligations | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 260 | 194 |
Recurring | Municipal and provincial obligations | ||
Assets, Fair Value Disclosure | ||
Total debt securities | 242 | 248 |
Recurring | Corporate obligations | ||
Assets, Fair Value Disclosure | ||
Total debt securities | 123 | 110 |
Recurring | Government and agency obligations | ||
Assets, Fair Value Disclosure | ||
Total debt securities | 116 | 91 |
Recurring | Agency mortgage-backed securities (“MBS”) and collateralized mortgage obligations (“CMOs”) | ||
Assets, Fair Value Disclosure | ||
Total debt securities | 198 | 127 |
Available-for-sale securities | 2,628 | |
Recurring | Non-agency CMOs and asset-backed securities (“ABS”) | ||
Assets, Fair Value Disclosure | ||
Total debt securities | 71 | 69 |
Recurring | Other securities | ||
Assets, Fair Value Disclosure | ||
Available-for-sale securities | 1 | |
Recurring | Auction rate securities preferred securities | ||
Assets, Fair Value Disclosure | ||
Available-for-sale securities | 67 | |
Recurring | Assets at Fair Value on a Recurring Basis, Before Investments Measured at NAV | ||
Assets, Fair Value Disclosure | ||
Total assets at fair value on a nonrecurring basis | 4,379 | 3,836 |
Recurring | Level 1 | ||
Assets, Fair Value Disclosure | ||
Total debt securities | 44 | 33 |
Equity securities | 15 | |
Equity securities | 12 | |
Brokered certificates of deposit | 0 | 0 |
Trading Securities, Other Security | 0 | 0 |
Total trading instruments | 48 | |
Total trading instruments | 56 | |
Available-for-sale securities | 0 | |
Available-for-sale securities | 1 | |
Derivative assets, gross | 10 | 0 |
Other investments | 187 | 201 |
Total assets at fair value on a nonrecurring basis | 253 | 250 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 262 | 196 |
Equity securities | 6 | 5 |
Other | 0 | 0 |
Total trading instruments sold but not yet purchased | 268 | 201 |
Derivative contracts liability, gross | 12 | 0 |
Total liabilities at fair value on a recurring basis | 280 | 201 |
Recurring | Level 1 | Non-agency MBS and CMOs | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 0 | |
Recurring | Level 1 | Municipal and provincial obligations | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 1 | 0 |
Recurring | Level 1 | Corporate obligations | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 1 | 2 |
Recurring | Level 1 | Government obligations | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 260 | 194 |
Recurring | Level 1 | Municipal and provincial obligations | ||
Assets, Fair Value Disclosure | ||
Total debt securities | 0 | 1 |
Recurring | Level 1 | Corporate obligations | ||
Assets, Fair Value Disclosure | ||
Total debt securities | 12 | 10 |
Recurring | Level 1 | Government and agency obligations | ||
Assets, Fair Value Disclosure | ||
Total debt securities | 32 | 19 |
Recurring | Level 1 | Agency mortgage-backed securities (“MBS”) and collateralized mortgage obligations (“CMOs”) | ||
Assets, Fair Value Disclosure | ||
Total debt securities | 0 | 3 |
Available-for-sale securities | 0 | |
Recurring | Level 1 | Non-agency CMOs and asset-backed securities (“ABS”) | ||
Assets, Fair Value Disclosure | ||
Total debt securities | 0 | 0 |
Recurring | Level 1 | Other securities | ||
Assets, Fair Value Disclosure | ||
Available-for-sale securities | 1 | |
Recurring | Level 1 | Auction rate securities preferred securities | ||
Assets, Fair Value Disclosure | ||
Available-for-sale securities | 0 | |
Recurring | Level 2 | ||
Assets, Fair Value Disclosure | ||
Total debt securities | 706 | 612 |
Equity securities | 0 | |
Equity securities | 1 | |
Brokered certificates of deposit | 39 | 39 |
Trading Securities, Other Security | 0 | 2 |
Total trading instruments | 653 | |
Total trading instruments | 746 | |
Available-for-sale securities | 2,960 | |
Available-for-sale securities | 2,628 | |
Derivative assets, gross | 374 | 235 |
Other investments | 1 | 1 |
Total assets at fair value on a nonrecurring basis | 4,081 | 3,517 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 16 | 27 |
Equity securities | 0 | 0 |
Other | 0 | 0 |
Total trading instruments sold but not yet purchased | 16 | 27 |
Derivative contracts liability, gross | 363 | 294 |
Total liabilities at fair value on a recurring basis | 379 | 321 |
Recurring | Level 2 | Non-agency MBS and CMOs | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 1 | |
Recurring | Level 2 | Municipal and provincial obligations | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 0 | 1 |
Recurring | Level 2 | Corporate obligations | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 16 | 25 |
Recurring | Level 2 | Government obligations | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 0 | 0 |
Recurring | Level 2 | Municipal and provincial obligations | ||
Assets, Fair Value Disclosure | ||
Total debt securities | 242 | 247 |
Recurring | Level 2 | Corporate obligations | ||
Assets, Fair Value Disclosure | ||
Total debt securities | 111 | 100 |
Recurring | Level 2 | Government and agency obligations | ||
Assets, Fair Value Disclosure | ||
Total debt securities | 84 | 72 |
Recurring | Level 2 | Agency mortgage-backed securities (“MBS”) and collateralized mortgage obligations (“CMOs”) | ||
Assets, Fair Value Disclosure | ||
Total debt securities | 198 | 124 |
Available-for-sale securities | 2,628 | |
Recurring | Level 2 | Non-agency CMOs and asset-backed securities (“ABS”) | ||
Assets, Fair Value Disclosure | ||
Total debt securities | 71 | 69 |
Recurring | Level 2 | Other securities | ||
Assets, Fair Value Disclosure | ||
Available-for-sale securities | 0 | |
Recurring | Level 2 | Auction rate securities preferred securities | ||
Assets, Fair Value Disclosure | ||
Available-for-sale securities | 0 | |
Recurring | Level 3 | ||
Assets, Fair Value Disclosure | ||
Total debt securities | 0 | 0 |
Equity securities | 0 | |
Equity securities | 0 | |
Brokered certificates of deposit | 0 | 0 |
Trading Securities, Other Security | 1 | 1 |
Total trading instruments | 1 | |
Total trading instruments | 1 | |
Available-for-sale securities | 0 | |
Available-for-sale securities | 67 | |
Derivative assets, gross | 0 | 0 |
Other investments | 65 | 0 |
Total assets at fair value on a nonrecurring basis | 125 | 124 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 0 | 0 |
Equity securities | 0 | 0 |
Other | 3 | 7 |
Total trading instruments sold but not yet purchased | 3 | 7 |
Derivative contracts liability, gross | 0 | 0 |
Total liabilities at fair value on a recurring basis | 3 | 7 |
Recurring | Level 3 | Non-agency MBS and CMOs | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 0 | |
Recurring | Level 3 | Municipal and provincial obligations | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 0 | 0 |
Recurring | Level 3 | Corporate obligations | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 0 | 0 |
Recurring | Level 3 | Government obligations | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 0 | 0 |
Recurring | Level 3 | Municipal and provincial obligations | ||
Assets, Fair Value Disclosure | ||
Total debt securities | 0 | 0 |
Recurring | Level 3 | Corporate obligations | ||
Assets, Fair Value Disclosure | ||
Total debt securities | 0 | 0 |
Recurring | Level 3 | Government and agency obligations | ||
Assets, Fair Value Disclosure | ||
Total debt securities | 0 | 0 |
Recurring | Level 3 | Agency mortgage-backed securities (“MBS”) and collateralized mortgage obligations (“CMOs”) | ||
Assets, Fair Value Disclosure | ||
Total debt securities | 0 | 0 |
Available-for-sale securities | 0 | |
Recurring | Level 3 | Non-agency CMOs and asset-backed securities (“ABS”) | ||
Assets, Fair Value Disclosure | ||
Total debt securities | 0 | 0 |
Recurring | Level 3 | Other securities | ||
Assets, Fair Value Disclosure | ||
Available-for-sale securities | 0 | |
Recurring | Level 3 | Auction rate securities preferred securities | ||
Assets, Fair Value Disclosure | ||
Available-for-sale securities | 67 | |
Recurring | Interest rate | ||
Assets, Fair Value Disclosure | ||
Matched book | 246 | 160 |
Amount of derivative assets offset | (80) | (55) |
Net amounts presented on the Condensed Consolidated Statements of Financial Condition | 57 | 19 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Matched book | 246 | 160 |
Total amounts offset | (100) | (47) |
Net amounts presented on the Condensed Consolidated Statements of Financial Condition | 18 | 67 |
Recurring | Interest rate | Level 1 | ||
Assets, Fair Value Disclosure | ||
Matched book | 0 | 0 |
Derivative assets, gross | 10 | 0 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Matched book | 0 | 0 |
Derivative liabilities | 12 | 0 |
Recurring | Interest rate | Level 2 | ||
Assets, Fair Value Disclosure | ||
Matched book | 246 | 160 |
Derivative assets, gross | 127 | 74 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Matched book | 246 | 160 |
Derivative liabilities | 106 | 114 |
Recurring | Interest rate | Level 3 | ||
Assets, Fair Value Disclosure | ||
Matched book | 0 | 0 |
Derivative assets, gross | 0 | 0 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Matched book | 0 | 0 |
Derivative liabilities | 0 | 0 |
Recurring | Deutsche Bank restricted stock unit (“DBRSU”) obligation (equity) | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Net amounts presented on the Condensed Consolidated Statements of Financial Condition | 7 | 16 |
Recurring | Deutsche Bank restricted stock unit (“DBRSU”) obligation (equity) | Level 1 | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liabilities | 0 | 0 |
Recurring | Deutsche Bank restricted stock unit (“DBRSU”) obligation (equity) | Level 2 | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liabilities | 7 | 16 |
Recurring | Deutsche Bank restricted stock unit (“DBRSU”) obligation (equity) | Level 3 | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liabilities | 0 | 0 |
Recurring | Foreign exchange | ||
Assets, Fair Value Disclosure | ||
Net amounts presented on the Condensed Consolidated Statements of Financial Condition | 1 | 1 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Net amounts presented on the Condensed Consolidated Statements of Financial Condition | 4 | 4 |
Recurring | Foreign exchange | Level 1 | ||
Assets, Fair Value Disclosure | ||
Derivative assets, gross | 0 | 0 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative contracts liability, gross | 0 | 0 |
Recurring | Foreign exchange | Level 2 | ||
Assets, Fair Value Disclosure | ||
Derivative assets, gross | 1 | 1 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liabilities | 4 | 4 |
Recurring | Foreign exchange | Level 3 | ||
Assets, Fair Value Disclosure | ||
Derivative assets, gross | 0 | 0 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative contracts liability, gross | 0 | 0 |
Private equity investments | Recurring | ||
Assets, Fair Value Disclosure | ||
Private equity investments not measured at net asset value (NAV) | 59 | 56 |
Private equity investments at NAV | 87 | 91 |
Private equity investments | Recurring | Level 1 | ||
Assets, Fair Value Disclosure | ||
Private equity investments not measured at net asset value (NAV) | 0 | 0 |
Private equity investments | Recurring | Level 2 | ||
Assets, Fair Value Disclosure | ||
Private equity investments not measured at net asset value (NAV) | 0 | $ 0 |
Private equity investments | Recurring | Level 3 | ||
Assets, Fair Value Disclosure | ||
Private equity investments not measured at net asset value (NAV) | $ 59 |
FAIR VALUE, Level 3 Financial A
FAIR VALUE, Level 3 Financial Assets and Liabilities, Roll Forward (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Sep. 30, 2018 | |
Percentage of instruments measured at fair value on a recurring basis | |||||
Instruments measured at fair value, percentage of assets (in hundredths) | 12.00% | 12.00% | 10.00% | ||
Instruments measured at fair value, percentage of liabilities (in hundredths) | 2.00% | 2.00% | 2.00% | ||
Instruments measured at fair value, level 3, percentage of assets (in hundredths) | 3.00% | 3.00% | 3.00% | ||
Trading instruments | Trading instruments - Other | |||||
Changes in Level 3 recurring fair value measurements, liabilities [Roll Forward] | |||||
Fair value beginning of period | $ (7) | $ (1) | $ (7) | $ 0 | |
Total gains/(losses) included in earnings | 0 | 0 | 2 | 0 | |
Included in other comprehensive income | 0 | 0 | |||
Purchases and contributions | 7 | 0 | 16 | 0 | |
Sales | (3) | (1) | (14) | (2) | |
Transfers: | |||||
Into Level 3 | 0 | 0 | 0 | 0 | |
Out of Level 3 | 0 | 0 | 0 | 0 | |
Fair value end of period | (3) | (2) | (3) | (2) | |
Unrealized gains/(losses) for the period included in earnings for instruments held at the end of the reporting period | 0 | 0 | 0 | 0 | |
Unrealized gains/(losses) for the period included in other comprehensive income for instruments held at the end of the reporting period | 0 | 0 | |||
Trading instruments - Other | Trading instruments - Other | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Fair Value, Assets Measured On Recurring Basis, Unrealized Gain (Loss) Included In Earnings | 1 | 1 | 1 | 1 | |
Changes in Level 3 recurring fair value measurements, assets [Roll Forward] | |||||
Fair value beginning of period | 2 | 1 | 1 | 6 | |
Total gains/(losses) included in earnings | (1) | 0 | (1) | (1) | |
Included in other comprehensive income | 0 | 0 | |||
Purchases and contributions | 26 | 18 | 86 | 62 | |
Sales | (26) | (15) | (85) | (63) | |
Transfers: | |||||
Into Level 3 | 0 | 0 | 0 | 0 | |
Out of Level 3 | 0 | 0 | 0 | 0 | |
Fair value end of period | 1 | 4 | 1 | 4 | |
Unrealized gains/(losses) for the period included in other comprehensive income for instruments held at the end of the reporting period | 0 | 0 | |||
Available-for-sale securities - ARS - preferred | Available-for-sale securities - ARS - preferred | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Fair Value, Assets Measured On Recurring Basis, Unrealized Gain (Loss) Included In Earnings | 0 | 0 | |||
Changes in Level 3 recurring fair value measurements, assets [Roll Forward] | |||||
Fair value beginning of period | 108 | 106 | |||
Total gains/(losses) included in earnings | 0 | 0 | |||
Included in other comprehensive income | 3 | 5 | |||
Purchases and contributions | 0 | 0 | |||
Sales | 0 | 0 | |||
Transfers: | |||||
Into Level 3 | 0 | 0 | |||
Out of Level 3 | 0 | 0 | |||
Fair value end of period | 111 | 111 | |||
Unrealized gains/(losses) for the period included in other comprehensive income for instruments held at the end of the reporting period | 3 | 5 | |||
Private equity and other investments | Private equity investments | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Fair Value, Assets Measured On Recurring Basis, Unrealized Gain (Loss) Included In Earnings | 0 | 0 | 0 | 0 | |
Changes in Level 3 recurring fair value measurements, assets [Roll Forward] | |||||
Fair value beginning of period | 59 | 96 | 56 | 89 | |
Total gains/(losses) included in earnings | 0 | 4 | 0 | 11 | |
Included in other comprehensive income | 0 | 0 | |||
Purchases and contributions | 0 | 0 | 3 | 0 | |
Sales | 0 | (28) | 0 | (28) | |
Transfers: | |||||
Into Level 3 | 0 | 0 | 0 | 0 | |
Out of Level 3 | 0 | 0 | 0 | 0 | |
Fair value end of period | 59 | 72 | 59 | 72 | |
Unrealized gains/(losses) for the period included in other comprehensive income for instruments held at the end of the reporting period | $ 0 | $ 0 | |||
Private equity and other investments | Other investments | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Fair Value, Assets Measured On Recurring Basis, Unrealized Gain (Loss) Included In Earnings | (2) | (2) | |||
Changes in Level 3 recurring fair value measurements, assets [Roll Forward] | |||||
Fair value beginning of period | 67 | 67 | |||
Total gains/(losses) included in earnings | (2) | (2) | |||
Purchases and contributions | 0 | 0 | |||
Sales | 0 | 0 | |||
Transfers: | |||||
Into Level 3 | 0 | 0 | |||
Out of Level 3 | 0 | 0 | |||
Fair value end of period | $ 65 | $ 65 |
FAIR VALUE, Significant Assumpt
FAIR VALUE, Significant Assumptions Used in Valuation of Level 3 Financial Instruments (Details) $ in Millions | 9 Months Ended | 12 Months Ended |
Jun. 30, 2019USD ($) | Sep. 30, 2018USD ($) | |
Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets at fair value on a nonrecurring basis | $ 4,466 | $ 3,927 |
Level 3 | Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets at fair value on a nonrecurring basis | 125 | $ 124 |
ARS, tendered holdings | Level 3 | Recurring | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets at fair value on a nonrecurring basis | $ 40 | |
Bank loans: impaired loans - residential | Level 3 | Nonrecurring | Discounted cash flow | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Prepayment term | 7 years | 7 years |
Bank loans: impaired loans - residential | Level 3 | Nonrecurring | Discounted cash flow | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Prepayment term | 12 years | 12 years |
Bank loans: impaired loans - residential | Level 3 | Nonrecurring | Discounted cash flow | Weighted average | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Prepayment term | 10 years 4 months 24 days | 10 years 6 months |
Auction rate securities preferred securities | Level 3 | Recurring | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets at fair value on a nonrecurring basis | $ 24 | $ 67 |
Auction rate securities preferred securities | Level 3 | Recurring | Other investment-specific events | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets at fair value on a nonrecurring basis | 40 | |
Private equity investments | Level 3 | Recurring | Income approach - discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets at fair value on a nonrecurring basis | 46 | 43 |
Private equity investments | Level 3 | Recurring | Transaction price or other investment-specific events | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets at fair value on a nonrecurring basis | $ 13 | $ 13 |
Discount rate | Auction rate securities preferred securities | Level 3 | Recurring | Discounted cash flow | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Measurement input for available-for-sale debt securities | 0.0535 | 0.0650 |
Discount rate | Auction rate securities preferred securities | Level 3 | Recurring | Discounted cash flow | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Measurement input for available-for-sale debt securities | 0.0635 | 0.0785 |
Discount rate | Auction rate securities preferred securities | Level 3 | Recurring | Discounted cash flow | Weighted average | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Measurement input for available-for-sale debt securities | 0.0585 | 0.0713 |
Discount rate | Private equity investments | Level 3 | Recurring | Income approach - discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Multiple applied to revenue | 0.25 | 0.25 |
Average Interest Rates Applicable to Future Income on Securities | Auction rate securities preferred securities | Level 3 | Recurring | Discounted cash flow | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Measurement input for available-for-sale debt securities | 0.0231 | 0.0413 |
Average Interest Rates Applicable to Future Income on Securities | Auction rate securities preferred securities | Level 3 | Recurring | Discounted cash flow | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Measurement input for available-for-sale debt securities | 0.0231 | 0.0551 |
Average Interest Rates Applicable to Future Income on Securities | Auction rate securities preferred securities | Level 3 | Recurring | Discounted cash flow | Weighted average | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Measurement input for available-for-sale debt securities | 0.0231 | 0.0447 |
EBITDA Multiple | Private equity investments | Level 3 | Recurring | Income approach - discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Multiple applied to revenue | 10 | 10 |
FAIR VALUE, Investments in Priv
FAIR VALUE, Investments in Private Equity Measured at Net Asset Value Per Share (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Sep. 30, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total private equity investments | $ 146 | $ 147 |
Private equity investments | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Private equity investments at NAV | 87 | 91 |
Private equity investments not measured at net asset value (NAV) | 59 | 56 |
Total private equity investments | 146 | 147 |
Total equity attributable to Raymond James Financial, Inc. | Private equity investments | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Private equity investments at NAV | 15 | 18 |
Total private equity investments | 101 | 103 |
Noncontrolling interests | Private equity investments | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total private equity investments | $ 45 | $ 44 |
FAIR VALUE, Financial Instrumen
FAIR VALUE, Financial Instruments Measured at Fair Value on a Nonrecurring Basis (Details) - Nonrecurring - USD ($) $ in Millions | Jun. 30, 2019 | Sep. 30, 2018 |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Other assets: other real estate owned | $ 1 | |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Other assets: other real estate owned | 1 | |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Other assets: other real estate owned | 0 | |
Loans held for sale | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Bank loans, net | 52 | $ 41 |
Loans held for sale | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Bank loans, net | 52 | 41 |
Loans held for sale | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Bank loans, net | 0 | 0 |
Discounted cash flow | Bank loans: impaired loans - residential | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Bank loans, net | 22 | 27 |
Discounted cash flow | Bank loans: impaired loans - residential | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Bank loans, net | 7 | 10 |
Discounted cash flow | Bank loans: impaired loans - residential | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Bank loans, net | 15 | 17 |
Appraisal or discounts cash flow | Bank loans: impaired loans - corporate | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Bank loans, net | 28 | 1 |
Appraisal or discounts cash flow | Bank loans: impaired loans - corporate | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Bank loans, net | 0 | 0 |
Appraisal or discounts cash flow | Bank loans: impaired loans - corporate | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Bank loans, net | $ 28 | $ 1 |
FAIR VALUE, Carrying Amounts an
FAIR VALUE, Carrying Amounts and Estimated Fair Value of Financial Instruments Not Carried at Fair Value (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Sep. 30, 2018 |
Carrying amount | ||
Financial assets: | ||
Bank loans, net | $ 20,589 | $ 19,449 |
Financial liabilities: | ||
Bank deposits | 543 | 19,942 |
Senior notes payable | 1,550 | 1,550 |
Level 1 | Total estimated fair value | ||
Financial assets: | ||
Bank loans, net | 0 | 0 |
Financial liabilities: | ||
Bank deposits | 0 | 0 |
Senior notes payable | 0 | 0 |
Level 2 | Total estimated fair value | ||
Financial assets: | ||
Bank loans, net | 81 | 124 |
Financial liabilities: | ||
Bank deposits | 0 | 19,496 |
Senior notes payable | 1,694 | 1,558 |
Level 3 | Total estimated fair value | ||
Financial assets: | ||
Bank loans, net | 20,474 | 19,116 |
Financial liabilities: | ||
Bank deposits | 550 | 439 |
Senior notes payable | 0 | 0 |
Recurring | Total estimated fair value | ||
Financial assets: | ||
Bank loans, net | 20,555 | 19,240 |
Financial liabilities: | ||
Bank deposits | 550 | 19,935 |
Senior notes payable | $ 1,694 | $ 1,558 |
AVAILABLE-FOR-SALE SECURITIES,
AVAILABLE-FOR-SALE SECURITIES, Amortized Cost and Fair Values of AFS Securities (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Sep. 30, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities | $ 2,960 | |
Other Investments [Abstract] | ||
Cost basis | $ 2,761 | |
Gross unrealized gains | 6 | |
Gross unrealized losses | (71) | |
Available-for-sale securities | 2,696 | |
RJ Bank | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost basis | 2,939 | |
Gross unrealized gains | 27 | |
Gross unrealized losses | (6) | |
Available-for-sale securities | 2,960 | |
Other Investments [Abstract] | ||
Cost basis | 2,700 | |
Gross unrealized gains | 0 | |
Gross unrealized losses | (71) | |
Available-for-sale securities | 2,629 | |
RJ Bank | Agency residential MBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost basis | 1,529 | 1,616 |
Gross unrealized gains | 17 | 0 |
Gross unrealized losses | (2) | (40) |
Available-for-sale securities | 1,544 | 1,576 |
RJ Bank | Agency commercial MBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost basis | 285 | 47 |
Gross unrealized gains | 4 | 0 |
Gross unrealized losses | 0 | 0 |
Available-for-sale securities | 289 | 47 |
RJ Bank | Agency CMOs | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost basis | 1,125 | 1,035 |
Gross unrealized gains | 6 | 0 |
Gross unrealized losses | (4) | (30) |
Available-for-sale securities | $ 1,127 | 1,005 |
RJ Bank | Other securities | ||
Other Investments [Abstract] | ||
Cost basis | 2 | |
Gross unrealized gains | 0 | |
Gross unrealized losses | (1) | |
Available-for-sale securities | 1 | |
Non-broker-dealer subsidiaries | Auction rate securities preferred securities | ||
Other Investments [Abstract] | ||
Cost basis | 61 | |
Gross unrealized gains | 6 | |
Gross unrealized losses | 0 | |
Available-for-sale securities | $ 67 |
AVAILABLE-FOR-SALE SECURITIES_2
AVAILABLE-FOR-SALE SECURITIES, Contractual Maturities (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Sep. 30, 2018 |
Carrying value | ||
Total | $ 2,960 | |
RJ Bank | ||
Amortized cost | ||
Within one year | 5 | |
After one but within five years | 239 | |
After five but within ten years | 993 | |
After ten years | 1,702 | |
Cost basis | 2,939 | |
Carrying value | ||
Within one year | 5 | |
After one but within five years | 241 | |
After five but within ten years | 1,002 | |
After ten years | 1,712 | |
Total | $ 2,960 | |
Weighted-average yield | ||
Within one year (in hundredths) | 1.85% | |
After one but within five years (in hundredths) | 2.31% | |
After five but within ten years (in hundredths) | 2.39% | |
After ten years (in hundredths) | 2.53% | |
Total (in hundredths) | 2.46% | |
RJ Bank | Agency residential MBS | ||
Amortized cost | ||
Within one year | $ 0 | |
After one but within five years | 25 | |
After five but within ten years | 869 | |
After ten years | 635 | |
Cost basis | 1,529 | $ 1,616 |
Carrying value | ||
Within one year | 0 | |
After one but within five years | 25 | |
After five but within ten years | 877 | |
After ten years | 642 | |
Total | 1,544 | 1,576 |
RJ Bank | Agency commercial MBS | ||
Amortized cost | ||
Within one year | 5 | |
After one but within five years | 214 | |
After five but within ten years | 32 | |
After ten years | 34 | |
Cost basis | 285 | 47 |
Carrying value | ||
Within one year | 5 | |
After one but within five years | 216 | |
After five but within ten years | 33 | |
After ten years | 35 | |
Total | 289 | 47 |
RJ Bank | Agency CMOs | ||
Amortized cost | ||
Within one year | 0 | |
After one but within five years | 0 | |
After five but within ten years | 92 | |
After ten years | 1,033 | |
Cost basis | 1,125 | 1,035 |
Carrying value | ||
Within one year | 0 | |
After one but within five years | 0 | |
After five but within ten years | 92 | |
After ten years | 1,035 | |
Total | $ 1,127 | $ 1,005 |
AVAILABLE-FOR-SALE SECURITIES_3
AVAILABLE-FOR-SALE SECURITIES, Gross Unrealized Losses and Fair Value and Significant Assumptions (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Sep. 30, 2018 |
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Estimated fair value less than 12 months | $ 1,103 | |
Unrealized losses less than 12 months | (20) | |
Estimated fair value 12 months or more | 1,426 | |
Unrealized losses 12 months or more | (51) | |
Total estimated fair value | 2,529 | |
Total unrealized losses | (71) | |
RJ Bank | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Abstract] | ||
Estimated far value less than 12 months | $ 56 | |
Unrealized losses less than 12 months | 0 | |
Estimated fair value 12 months or more | 974 | |
Unrealized losses 12 months or more | (6) | |
Total estimated fair value | 1,030 | |
Total unrealized losses | (6) | |
RJ Bank | Agency residential MBS | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Abstract] | ||
Estimated far value less than 12 months | 37 | 747 |
Unrealized losses less than 12 months | 0 | (15) |
Estimated fair value 12 months or more | 397 | 753 |
Unrealized losses 12 months or more | (2) | (25) |
Total estimated fair value | 434 | 1,500 |
Total unrealized losses | (2) | (40) |
RJ Bank | Agency commercial MBS | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Abstract] | ||
Estimated far value less than 12 months | 0 | 40 |
Unrealized losses less than 12 months | 0 | 0 |
Estimated fair value 12 months or more | 48 | 6 |
Unrealized losses 12 months or more | 0 | 0 |
Total estimated fair value | 48 | 46 |
Total unrealized losses | 0 | 0 |
RJ Bank | Agency CMOs | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Abstract] | ||
Estimated far value less than 12 months | 19 | 316 |
Unrealized losses less than 12 months | 0 | (5) |
Estimated fair value 12 months or more | 529 | 666 |
Unrealized losses 12 months or more | (4) | (25) |
Total estimated fair value | 548 | 982 |
Total unrealized losses | $ (4) | (30) |
RJ Bank | Other securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Estimated fair value less than 12 months | 0 | |
Unrealized losses less than 12 months | 0 | |
Estimated fair value 12 months or more | 1 | |
Unrealized losses 12 months or more | (1) | |
Total estimated fair value | 1 | |
Total unrealized losses | $ (1) |
AVAILABLE-FOR-SALE SECURITIES_4
AVAILABLE-FOR-SALE SECURITIES, Narrative (Details) $ in Millions | Jun. 30, 2019USD ($)position | Oct. 01, 2018USD ($) | Sep. 30, 2018USD ($) |
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale securities | $ 2,696 | ||
Available-for-sale securities | $ 2,960 | ||
Federal National Mortgage Association (FNMA) | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized cost basis | 1,850 | ||
Available-for-sale securities | 1,860 | ||
Federal Home Loan Mortgage Corporation (FHLMC) | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized cost basis | 833 | ||
Available-for-sale securities | 839 | ||
RJ Bank | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale securities | $ 2,629 | ||
Amortized cost basis | 2,939 | ||
Available-for-sale securities | $ 2,960 | ||
RJ Bank | Agency mortgage-backed securities (“MBS”) and collateralized mortgage obligations (“CMOs”) | |||
Debt Securities, Available-for-sale [Line Items] | |||
Number of available-for-sale investment positions determined to be in an unrealized loss position | position | 131 | ||
Number of available-for-sale investment positions determined to be in an unrealized loss position continuously for less than 12 months | position | 6 | ||
Number of available-for-sale investment positions determined to be in an unrealized loss position continuously for 12 months or more | position | 125 | ||
Accounting Standards Update 2016-01 | Reclassification Adjustment | Auction rate securities preferred securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale securities | $ (68) | ||
Other investments | $ 68 |
DERIVATIVE ASSETS AND DERIVAT_3
DERIVATIVE ASSETS AND DERIVATIVE LIABILITIES (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Derivative [Line Items] | ||||
Gain (loss) excluded from assessment of hedge effectiveness | $ 0 | $ 0 | $ 0 | $ 0 |
RJ Bank | ||||
Derivative [Line Items] | ||||
Maximum length of time hedged in cash flow hedge | 8 years |
DERIVATIVE ASSETS AND DERIVAT_4
DERIVATIVE ASSETS AND DERIVATIVE LIABILITIES, Derivative Assets and Liability Fair Value (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Sep. 30, 2018 |
Derivative assets | ||
Derivative assets | $ 384 | $ 235 |
Counterparty netting | (16) | (26) |
Cash collateral netting | (64) | (29) |
Total amounts offset | (80) | (55) |
Net amounts presented on the Condensed Consolidated Statements of Financial Condition | 304 | 180 |
Financial instruments | (259) | (162) |
Net amount | 45 | 18 |
Derivative liabilities | ||
Derivative liabilities | 375 | 294 |
Counterparty netting | (16) | (26) |
Cash collateral netting | (84) | (21) |
Total amounts offset | (100) | (47) |
Net amounts presented on the Condensed Consolidated Statements of Financial Condition | 275 | 247 |
Financial instruments | (246) | (160) |
Net amount | 29 | 87 |
Notional amount | 14,784 | 14,121 |
Derivatives not designated as hedging instruments | ||
Derivative assets | ||
Derivative assets | 380 | 235 |
Derivative liabilities | ||
Derivative liabilities | 371 | 290 |
Notional amount | 13,081 | 12,379 |
Derivatives not designated as hedging instruments | Matched book | ||
Derivative assets | ||
Matched book | 246 | 160 |
Derivatives With Offsetting Matched Book Positions Fair Value Liability | 246 | 160 |
Derivative liabilities | ||
Notional amount | 2,325 | 2,416 |
Derivatives not designated as hedging instruments | Other | ||
Derivative assets | ||
Derivative assets | 133 | 74 |
Derivative liabilities | ||
Derivative liabilities | 117 | 113 |
Notional amount | 10,197 | 9,398 |
Derivatives not designated as hedging instruments | Foreign exchange | ||
Derivative assets | ||
Derivative assets | 1 | 1 |
Derivative liabilities | ||
Derivative liabilities | 1 | 1 |
Notional amount | 552 | 549 |
Derivatives not designated as hedging instruments | Equity - DBRSU obligation | ||
Derivative assets | ||
Derivative assets | 0 | 0 |
Derivative liabilities | ||
Derivative liabilities | 7 | 16 |
Notional amount | 7 | 16 |
Derivatives designated as hedging instruments | ||
Derivative assets | ||
Derivative assets | 4 | 0 |
Derivative liabilities | ||
Derivative liabilities | 4 | 4 |
Notional amount | 1,703 | 1,742 |
Derivatives designated as hedging instruments | Interest rate | ||
Derivative assets | ||
Derivative assets | 4 | 0 |
Derivative liabilities | ||
Derivative liabilities | 1 | 1 |
Notional amount | 850 | 850 |
Derivatives designated as hedging instruments | Foreign exchange | ||
Derivative assets | ||
Derivative assets | 0 | 0 |
Derivative liabilities | ||
Derivative liabilities | 3 | 3 |
Notional amount | $ 853 | $ 892 |
DERIVATIVE ASSETS AND DERIVAT_5
DERIVATIVE ASSETS AND DERIVATIVE LIABILITIES, Derivative Gain (Loss) Recognized in AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Cash flow hedges | $ (19) | $ 6 | $ (49) | $ 27 |
Total gains/(losses) in AOCI, net of taxes | (31) | 19 | (35) | 65 |
Interest rate | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Cash flow hedges | (19) | 6 | (49) | 27 |
Foreign exchange | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Foreign exchange (net investment hedges) | $ (12) | $ 13 | $ 14 | $ 38 |
DERIVATIVE ASSETS AND DERIVAT_6
DERIVATIVE ASSETS AND DERIVATIVE LIABILITIES, Income Statement Location (Details) - Derivatives not designated as hedging instruments - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Principal transactions/other revenues | Interest rate | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in fair value of derivative liability | $ 2 | $ 3 | $ 4 | $ 5 |
Other revenues | Foreign exchange | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in fair value of derivative liability | (8) | 15 | 14 | 24 |
Compensation, commissions and benefits expense | Equity - DBRSU obligation | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in fair value of derivative liability | $ 0 | $ 4 | $ 5 | $ 9 |
DERIVATIVE ASSETS AND DERIVAT_7
DERIVATIVE ASSETS AND DERIVATIVE LIABILITIES, Risk (Details) | Jun. 30, 2019credit_rating_agency |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Debt, minimum number of agencies required to maintain an investment grade rating | 1 |
COLLATERALIZED AGREEMENTS AND_3
COLLATERALIZED AGREEMENTS AND FINANCINGS, Schedule of Offsetting Transactions (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Sep. 30, 2018 |
Reverse repurchase agreements | ||
Gross amounts of recognized assets/liabilities | $ 411 | $ 373 |
Gross amounts offset on the Condensed Consolidated Statements of Financial Condition | 0 | 0 |
Net amounts presented on the Condensed Consolidated Statements of Financial Condition | 411 | 373 |
Gross amounts not offset on the Condensed Consolidated Statements of Financial Condition | (411) | (373) |
Net amounts | 0 | 0 |
Securities borrowed | ||
Gross amounts of recognized assets/liabilities | 306 | 255 |
Gross amounts offset on the Condensed Consolidated Statements of Financial Condition | 0 | 0 |
Net amounts presented on the Condensed Consolidated Statements of Financial Condition | 306 | 255 |
Gross amounts not offset on the Condensed Consolidated Statements of Financial Condition | (301) | (248) |
Net amounts | 5 | 7 |
Repurchase agreements | ||
Gross amounts of recognized assets/liabilities | 165 | 186 |
Gross amounts offset on the Condensed Consolidated Statements of Financial Condition | 0 | 0 |
Net amounts presented on the Condensed Consolidated Statements of Financial Condition | 165 | 186 |
Gross amounts not offset on the Condensed Consolidated Statements of Financial Condition | (165) | (186) |
Net amounts | 0 | 0 |
Securities loaned | ||
Gross amounts of recognized assets/liabilities | 429 | 423 |
Gross amounts offset on the Condensed Consolidated Statements of Financial Condition | 0 | 0 |
Net amounts presented on the Condensed Consolidated Statements of Financial Condition | 429 | 423 |
Gross amounts not offset on the Condensed Consolidated Statements of Financial Condition | (419) | (408) |
Net amounts | $ 10 | $ 15 |
COLLATERALIZED AGREEMENTS AND_4
COLLATERALIZED AGREEMENTS AND FINANCINGS, Collateral (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Sep. 30, 2018 |
Collateral Received that Can be Resold or Repledged [Abstract] | ||
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 |
COLLATERALIZED AGREEMENTS AND_5
COLLATERALIZED AGREEMENTS AND FINANCINGS, Encumbered Assets (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Sep. 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 |
COLLATERALIZED AGREEMENTS AND_6
COLLATERALIZED AGREEMENTS AND FINANCINGS, Repurchase Agreements, Repurchase-to-Maturity Transactions and Securities Loaned Accounted For As Secured Borrowings (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Sep. 30, 2018 |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | $ 165 | $ 186 |
Total | 594 | 609 |
Government and agency obligations | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 48 | 102 |
Agency mortgage-backed securities (“MBS”) and collateralized mortgage obligations (“CMOs”) | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 117 | 84 |
Equity securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities loaned | 429 | 423 |
Overnight and continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 165 | 186 |
Total | 594 | 609 |
Overnight and continuous | Government and agency obligations | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 48 | 102 |
Overnight and continuous | Agency mortgage-backed securities (“MBS”) and collateralized mortgage obligations (“CMOs”) | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 117 | 84 |
Overnight and continuous | Equity securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities loaned | 429 | 423 |
Up to 30 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 0 | 0 |
Total | 0 | 0 |
Up to 30 days | Government and agency obligations | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 0 | 0 |
Up to 30 days | Agency mortgage-backed securities (“MBS”) and collateralized mortgage obligations (“CMOs”) | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 0 | 0 |
Up to 30 days | Equity securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities loaned | 0 | 0 |
30-90 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 0 | 0 |
Total | 0 | 0 |
30-90 days | Government and agency obligations | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 0 | 0 |
30-90 days | Agency mortgage-backed securities (“MBS”) and collateralized mortgage obligations (“CMOs”) | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 0 | 0 |
30-90 days | Equity securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities loaned | 0 | 0 |
Greater than 90 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 0 | 0 |
Total | 0 | 0 |
Greater than 90 days | Government and agency obligations | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 0 | 0 |
Greater than 90 days | Agency mortgage-backed securities (“MBS”) and collateralized mortgage obligations (“CMOs”) | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 0 | 0 |
Greater than 90 days | Equity securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities loaned | $ 0 | $ 0 |
BANK LOANS, NET, Held for Sale
BANK LOANS, NET, Held for Sale and Held for Investment (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2019USD ($)segment | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)segment | Jun. 30, 2018USD ($) | Sep. 30, 2018USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of loan portfolio segments | segment | 6 | 6 | |||
Loans held for investment: | |||||
Total loans held for investment | $ 20,788 | $ 20,788 | $ 19,578 | ||
Net unearned income and deferred expenses | (16) | (16) | (21) | ||
Total loans held for investment, net | 20,772 | 20,772 | 19,557 | ||
Loans held for sale, net | 134 | 134 | 164 | ||
Total loans held for sale and investment | 20,906 | 20,906 | 19,721 | ||
Allowance for loan losses | (215) | (215) | (203) | ||
Bank loans, net | $ 20,691 | $ 20,691 | $ 19,518 | ||
Associated percentage of each major loan category in loan portfolios [Abstract] | |||||
Loans held for sale, net (in hundredths) | 1.00% | 1.00% | 1.00% | ||
Total loans held for sale and investment (in hundredths) | 100.00% | 100.00% | 100.00% | ||
C&I loans | |||||
Loans held for investment: | |||||
Total loans held for investment | $ 8,401 | $ 8,401 | $ 7,786 | ||
Associated percentage of each major loan category in loan portfolios [Abstract] | |||||
Loans held for investment (in hundredths) | 40.00% | 40.00% | 40.00% | ||
CRE construction loans | |||||
Loans held for investment: | |||||
Total loans held for investment | $ 248 | $ 248 | $ 151 | ||
Associated percentage of each major loan category in loan portfolios [Abstract] | |||||
Loans held for investment (in hundredths) | 1.00% | 1.00% | 1.00% | ||
CRE loans | |||||
Loans held for investment: | |||||
Total loans held for investment | $ 3,468 | $ 3,468 | $ 3,624 | ||
Associated percentage of each major loan category in loan portfolios [Abstract] | |||||
Loans held for investment (in hundredths) | 17.00% | 17.00% | 18.00% | ||
Tax-exempt loans | |||||
Loans held for investment: | |||||
Total loans held for investment | $ 1,296 | $ 1,296 | $ 1,227 | ||
Associated percentage of each major loan category in loan portfolios [Abstract] | |||||
Loans held for investment (in hundredths) | 6.00% | 6.00% | 6.00% | ||
Residential mortgage loans | |||||
Loans held for investment: | |||||
Total loans held for investment | $ 4,198 | $ 4,198 | $ 3,757 | ||
Associated percentage of each major loan category in loan portfolios [Abstract] | |||||
Loans held for investment (in hundredths) | 20.00% | 20.00% | 19.00% | ||
SBL and other | |||||
Loans held for investment: | |||||
Total loans held for investment | $ 3,177 | $ 3,177 | $ 3,033 | ||
Associated percentage of each major loan category in loan portfolios [Abstract] | |||||
Loans held for investment (in hundredths) | 15.00% | 15.00% | 15.00% | ||
Loans Held for Sale [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans held for sale originated or purchased | $ 522 | $ 444 | $ 1,790 | $ 1,130 | |
Associated percentage of each major loan category in loan portfolios [Abstract] | |||||
Proceeds from sale of loans held-for-sale | $ 159 | $ 166 | $ 516 | $ 394 |
BANK LOANS, NET, Originations,
BANK LOANS, NET, Originations, Purchases, and Sales (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Loans held for sale | ||||
Financing Receivables, Schedule of Purchases and Sales [Line Items] | ||||
Loans held for sale originated or purchased | $ 522 | $ 444 | $ 1,790 | $ 1,130 |
Proceeds from sale of loans held-for-sale | 159 | 166 | 516 | 394 |
Loans held for investment | ||||
Financing Receivables, Schedule of Purchases and Sales [Line Items] | ||||
Purchases | 389 | 400 | 1,226 | 829 |
Sales | 7 | 38 | 100 | 146 |
Loans held for investment | C&I loans | ||||
Financing Receivables, Schedule of Purchases and Sales [Line Items] | ||||
Purchases | 247 | 195 | 937 | 467 |
Sales | 7 | 38 | 100 | 146 |
Loans held for investment | CRE loans | ||||
Financing Receivables, Schedule of Purchases and Sales [Line Items] | ||||
Purchases | 10 | 82 | 35 | 145 |
Sales | 0 | 0 | 0 | 0 |
Loans held for investment | Residential mortgage loans | ||||
Financing Receivables, Schedule of Purchases and Sales [Line Items] | ||||
Purchases | 132 | 123 | 254 | 217 |
Sales | $ 0 | $ 0 | $ 0 | $ 0 |
BANK LOANS, NET, Analysis of Pa
BANK LOANS, NET, Analysis of Payment Status of Loans Held for Investment (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Sep. 30, 2018 |
Analysis of payment status of loans held for investment [Abstract] | ||
Total loans held for investment | $ 20,788 | $ 19,578 |
Nonaccrual | 48 | 25 |
Performing nonaccrual loans | 37 | 11 |
Other assets | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Other real estate owned | 3 | 3 |
30-89 days and accruing | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Total loans held for investment | 1 | 1 |
90 days or more and accruing | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Total loans held for investment | 5 | 0 |
Total past due and accruing | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Total loans held for investment | 6 | 1 |
Current and accruing | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Total loans held for investment | 20,734 | 19,552 |
C&I loans | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Total loans held for investment | 8,401 | 7,786 |
Nonaccrual | 22 | 2 |
C&I loans | 30-89 days and accruing | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Total loans held for investment | 0 | 0 |
C&I loans | 90 days or more and accruing | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Total loans held for investment | 0 | 0 |
C&I loans | Total past due and accruing | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Total loans held for investment | 0 | 0 |
C&I loans | Current and accruing | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Total loans held for investment | 8,379 | 7,784 |
CRE construction loans | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Total loans held for investment | 248 | 151 |
Nonaccrual | 0 | 0 |
CRE construction loans | 30-89 days and accruing | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Total loans held for investment | 0 | 0 |
CRE construction loans | 90 days or more and accruing | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Total loans held for investment | 0 | 0 |
CRE construction loans | Total past due and accruing | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Total loans held for investment | 0 | 0 |
CRE construction loans | Current and accruing | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Total loans held for investment | 248 | 151 |
CRE loans | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Total loans held for investment | 3,468 | 3,624 |
Nonaccrual | 10 | 0 |
CRE loans | 30-89 days and accruing | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Total loans held for investment | 0 | 0 |
CRE loans | 90 days or more and accruing | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Total loans held for investment | 0 | 0 |
CRE loans | Total past due and accruing | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Total loans held for investment | 0 | 0 |
CRE loans | Current and accruing | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Total loans held for investment | 3,458 | 3,624 |
Tax-exempt loans | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Total loans held for investment | 1,296 | 1,227 |
Nonaccrual | 0 | 0 |
Tax-exempt loans | 30-89 days and accruing | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Total loans held for investment | 0 | 0 |
Tax-exempt loans | 90 days or more and accruing | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Total loans held for investment | 0 | 0 |
Tax-exempt loans | Total past due and accruing | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Total loans held for investment | 0 | 0 |
Tax-exempt loans | Current and accruing | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Total loans held for investment | 1,296 | 1,227 |
Residential - first mortgage loans | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Total loans held for investment | 4,170 | 3,731 |
Nonaccrual | 16 | 23 |
Residential - first mortgage loans | 30-89 days and accruing | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Total loans held for investment | 1 | 1 |
Residential - first mortgage loans | 90 days or more and accruing | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Total loans held for investment | 5 | 0 |
Residential - first mortgage loans | Total past due and accruing | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Total loans held for investment | 6 | 1 |
Residential - first mortgage loans | Current and accruing | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Total loans held for investment | 4,148 | 3,707 |
Residential mortgage - home equity loans/lines | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Total loans held for investment | 28 | 26 |
Nonaccrual | 0 | 0 |
Residential mortgage - home equity loans/lines | 30-89 days and accruing | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Total loans held for investment | 0 | 0 |
Residential mortgage - home equity loans/lines | 90 days or more and accruing | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Total loans held for investment | 0 | 0 |
Residential mortgage - home equity loans/lines | Total past due and accruing | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Total loans held for investment | 0 | 0 |
Residential mortgage - home equity loans/lines | Current and accruing | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Total loans held for investment | 28 | 26 |
SBL and other | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Total loans held for investment | 3,177 | 3,033 |
Nonaccrual | 0 | 0 |
SBL and other | 30-89 days and accruing | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Total loans held for investment | 0 | 0 |
SBL and other | 90 days or more and accruing | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Total loans held for investment | 0 | 0 |
SBL and other | Total past due and accruing | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Total loans held for investment | 0 | 0 |
SBL and other | Current and accruing | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Total loans held for investment | 3,177 | 3,033 |
Residential mortgage loans | One-to-four family residential mortgage loans | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Financing receivable past due | $ 8 | $ 12 |
BANK LOANS, NET, Summary of Imp
BANK LOANS, NET, Summary of Impaired Loans (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Sep. 30, 2018 | |
Gross recorded investment | |||||
Gross recorded investment, impaired loans with allowance for loan losses | $ 30 | $ 30 | $ 15 | ||
Gross recorded investment, impaired loans without allowance for loan losses | 25 | 25 | 15 | ||
Gross recorded investment | 55 | 55 | 30 | ||
Unpaid principal balance | |||||
Unpaid principal balance, impaired loans with allowance for loan losses | 33 | 33 | 20 | ||
Unpaid principal balance, impaired loans without allowance for loan losses | 35 | 35 | 22 | ||
Unpaid principal balance | 68 | 68 | 42 | ||
Impaired loans with allowance for loan losses, allowance for losses | 5 | 5 | 2 | ||
Loan and Lease Receivables, Impaired | |||||
Average impaired loan balance | 60 | $ 38 | 48 | $ 38 | |
C&I loans | |||||
Gross recorded investment | |||||
Gross recorded investment, impaired loans with allowance for loan losses | 19 | 19 | 0 | ||
Gross recorded investment, impaired loans without allowance for loan losses | 3 | 3 | 2 | ||
Unpaid principal balance | |||||
Unpaid principal balance, impaired loans with allowance for loan losses | 19 | 19 | 0 | ||
Unpaid principal balance, impaired loans without allowance for loan losses | 3 | 3 | 2 | ||
Impaired loans with allowance for loan losses, allowance for losses | 4 | 4 | 0 | ||
Loan and Lease Receivables, Impaired | |||||
Average impaired loan balance | 26 | 4 | 19 | 4 | |
CRE loans | |||||
Gross recorded investment | |||||
Gross recorded investment, impaired loans without allowance for loan losses | 10 | 10 | 0 | ||
Unpaid principal balance | |||||
Unpaid principal balance, impaired loans without allowance for loan losses | 13 | 13 | 0 | ||
Loan and Lease Receivables, Impaired | |||||
Impaired loan, troubled debt restructurings | 10 | 10 | |||
Average impaired loan balance | 10 | 0 | 4 | 0 | |
Residential - first mortgage loans | |||||
Gross recorded investment | |||||
Gross recorded investment, impaired loans with allowance for loan losses | 11 | 11 | 15 | ||
Gross recorded investment, impaired loans without allowance for loan losses | 12 | 12 | 13 | ||
Unpaid principal balance | |||||
Unpaid principal balance, impaired loans with allowance for loan losses | 14 | 14 | 20 | ||
Unpaid principal balance, impaired loans without allowance for loan losses | 19 | 19 | 20 | ||
Impaired loans with allowance for loan losses, allowance for losses | 1 | 1 | 2 | ||
Loan and Lease Receivables, Impaired | |||||
Impaired loan, troubled debt restructurings | 19 | 19 | $ 21 | ||
Average impaired loan balance | $ 24 | $ 34 | $ 25 | $ 34 |
BANK LOANS, NET, Credit Quality
BANK LOANS, NET, Credit Quality of Held for Investment Loan Portfolio (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Sep. 30, 2018 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | $ 20,788 | $ 19,578 |
Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 20,591 | 19,345 |
Special mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 50 | 111 |
Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 147 | 122 |
Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 0 | 0 |
C&I loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 8,401 | 7,786 |
C&I loans | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 8,296 | 7,679 |
C&I loans | Special mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 22 | 48 |
C&I loans | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 83 | 59 |
C&I loans | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 0 | 0 |
CRE construction loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 248 | 151 |
CRE construction loans | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 248 | 140 |
CRE construction loans | Special mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 0 | 11 |
CRE construction loans | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 0 | 0 |
CRE construction loans | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 0 | 0 |
CRE loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 3,468 | 3,624 |
CRE loans | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 3,410 | 3,547 |
CRE loans | Special mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 20 | 44 |
CRE loans | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 38 | 33 |
CRE loans | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 0 | 0 |
Tax-exempt loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 1,296 | 1,227 |
Tax-exempt loans | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 1,296 | 1,227 |
Tax-exempt loans | Special mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 0 | 0 |
Tax-exempt loans | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 0 | 0 |
Tax-exempt loans | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 0 | 0 |
Residential – first mortgage loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 4,170 | 3,731 |
Residential – first mortgage loans | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 4,136 | 3,693 |
Residential – first mortgage loans | Special mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 8 | 8 |
Residential – first mortgage loans | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 26 | 30 |
Residential – first mortgage loans | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 0 | 0 |
Home equity loans/lines | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 28 | 26 |
Home equity loans/lines | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 28 | 26 |
Home equity loans/lines | Special mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 0 | 0 |
Home equity loans/lines | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 0 | 0 |
Home equity loans/lines | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 0 | 0 |
SBL and other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 3,177 | 3,033 |
SBL and other | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 3,177 | 3,033 |
SBL and other | Special mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 0 | 0 |
SBL and other | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 0 | 0 |
SBL and other | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | $ 0 | $ 0 |
BANK LOANS, NET, Changes in the
BANK LOANS, NET, Changes in the Allowance for Loan Losses (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Changes in the allowance for loan losses [Roll Forward] | ||||
Provision/(benefit) for loan losses | $ (5) | $ 5 | $ 16 | $ 14 |
Loans held for investment | ||||
Changes in the allowance for loan losses [Roll Forward] | ||||
Balance at beginning of period | 218 | 195 | 203 | 190 |
Provision/(benefit) for loan losses | (5) | 5 | 16 | 14 |
Net (charge-offs)/recoveries: | ||||
Charge-offs | 0 | (5) | (6) | (9) |
Recoveries | 1 | 1 | 2 | 1 |
Net charge-offs | 1 | (4) | (4) | (8) |
Foreign exchange translation adjustment | 1 | 0 | 0 | 0 |
Balance at end of period | 215 | 196 | 215 | 196 |
Loans held for investment | C&I loans | ||||
Changes in the allowance for loan losses [Roll Forward] | ||||
Balance at beginning of period | 140 | 125 | 123 | 120 |
Provision/(benefit) for loan losses | (8) | 2 | 13 | 11 |
Net (charge-offs)/recoveries: | ||||
Charge-offs | 0 | (5) | (3) | (9) |
Recoveries | 1 | 0 | 1 | 0 |
Net charge-offs | 1 | (5) | (2) | (9) |
Foreign exchange translation adjustment | 1 | 0 | 0 | 0 |
Balance at end of period | 134 | 122 | 134 | 122 |
Loans held for investment | CRE construction loans | ||||
Changes in the allowance for loan losses [Roll Forward] | ||||
Balance at beginning of period | 3 | 2 | 3 | 1 |
Provision/(benefit) for loan losses | 1 | 1 | 1 | 2 |
Net (charge-offs)/recoveries: | ||||
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Net charge-offs | 0 | 0 | 0 | 0 |
Foreign exchange translation adjustment | 0 | 0 | 0 | |
Balance at end of period | 4 | 3 | 4 | 3 |
Loans held for investment | CRE loans | ||||
Changes in the allowance for loan losses [Roll Forward] | ||||
Balance at beginning of period | 45 | 43 | 47 | 42 |
Provision/(benefit) for loan losses | 1 | 2 | 2 | 3 |
Net (charge-offs)/recoveries: | ||||
Charge-offs | 0 | 0 | (3) | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Net charge-offs | 0 | 0 | (3) | 0 |
Foreign exchange translation adjustment | 0 | 0 | 0 | 0 |
Balance at end of period | 46 | 45 | 46 | 45 |
Loans held for investment | Tax-exempt loans | ||||
Changes in the allowance for loan losses [Roll Forward] | ||||
Balance at beginning of period | 8 | 8 | 9 | 6 |
Provision/(benefit) for loan losses | 1 | 0 | 0 | 2 |
Net (charge-offs)/recoveries: | ||||
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Net charge-offs | 0 | 0 | 0 | 0 |
Foreign exchange translation adjustment | 0 | 0 | 0 | 0 |
Balance at end of period | 9 | 8 | 9 | 8 |
Loans held for investment | Residential mortgage loans | ||||
Changes in the allowance for loan losses [Roll Forward] | ||||
Balance at beginning of period | 17 | 13 | 17 | 17 |
Provision/(benefit) for loan losses | (1) | 1 | (2) | (3) |
Net (charge-offs)/recoveries: | ||||
Charge-offs | 0 | 0 | 0 | |
Recoveries | 0 | 1 | 1 | 1 |
Net charge-offs | 0 | 1 | 1 | 1 |
Foreign exchange translation adjustment | 0 | 0 | 0 | 0 |
Balance at end of period | 16 | 15 | 16 | 15 |
Loans held for investment | SBL and other | ||||
Changes in the allowance for loan losses [Roll Forward] | ||||
Balance at beginning of period | 5 | 4 | 4 | 4 |
Provision/(benefit) for loan losses | 1 | (1) | 2 | (1) |
Net (charge-offs)/recoveries: | ||||
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Net charge-offs | 0 | 0 | 0 | 0 |
Foreign exchange translation adjustment | 0 | 0 | 0 | 0 |
Balance at end of period | $ 6 | $ 3 | $ 6 | $ 3 |
BANK LOANS, NET, Allowance for
BANK LOANS, NET, Allowance for Loan Losses, Loans Individually and Collectively Evaluated for Impairment (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2017 |
Recorded investment | ||||||
Total loans held for investment | $ 20,788 | $ 19,578 | ||||
Reserve for unfunded lending commitments [Abstract] | ||||||
Reserve for unfunded lending commitments | 10 | 10 | ||||
C&I loans | ||||||
Recorded investment | ||||||
Total loans held for investment | 8,401 | 7,786 | ||||
CRE construction loans | ||||||
Recorded investment | ||||||
Total loans held for investment | 248 | 151 | ||||
CRE loans | ||||||
Recorded investment | ||||||
Total loans held for investment | 3,468 | 3,624 | ||||
Tax-exempt loans | ||||||
Recorded investment | ||||||
Total loans held for investment | 1,296 | 1,227 | ||||
SBL and other | ||||||
Recorded investment | ||||||
Total loans held for investment | 3,177 | 3,033 | ||||
Loans held for investment | ||||||
Allowance for loan losses | ||||||
Individually evaluated for impairment | 5 | 2 | ||||
Collectively evaluated for impairment | 210 | 201 | ||||
Total allowance for loan losses | 215 | $ 218 | 203 | $ 196 | $ 195 | $ 190 |
Recorded investment | ||||||
Individually evaluated for impairment | 60 | 37 | ||||
Collectively evaluated for impairment | 20,728 | 19,541 | ||||
Total loans held for investment | 20,788 | 19,578 | ||||
Loans held for investment | C&I loans | ||||||
Allowance for loan losses | ||||||
Individually evaluated for impairment | 4 | 0 | ||||
Collectively evaluated for impairment | 130 | 123 | ||||
Total allowance for loan losses | 134 | 140 | 123 | 122 | 125 | 120 |
Recorded investment | ||||||
Individually evaluated for impairment | 22 | 2 | ||||
Collectively evaluated for impairment | 8,379 | 7,784 | ||||
Total loans held for investment | 8,401 | 7,786 | ||||
Loans held for investment | CRE construction loans | ||||||
Allowance for loan losses | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 4 | 3 | ||||
Total allowance for loan losses | 4 | 3 | 3 | 3 | 2 | 1 |
Recorded investment | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 248 | 151 | ||||
Total loans held for investment | 248 | 151 | ||||
Loans held for investment | CRE loans | ||||||
Allowance for loan losses | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 46 | 47 | ||||
Total allowance for loan losses | 46 | 45 | 47 | 45 | 43 | 42 |
Recorded investment | ||||||
Individually evaluated for impairment | 10 | 0 | ||||
Collectively evaluated for impairment | 3,458 | 3,624 | ||||
Total loans held for investment | 3,468 | 3,624 | ||||
Loans held for investment | Tax-exempt loans | ||||||
Allowance for loan losses | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 9 | 9 | ||||
Total allowance for loan losses | 9 | 8 | 9 | 8 | 8 | 6 |
Recorded investment | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 1,296 | 1,227 | ||||
Total loans held for investment | 1,296 | 1,227 | ||||
Loans held for investment | Residential mortgage loans | ||||||
Allowance for loan losses | ||||||
Individually evaluated for impairment | 1 | 2 | ||||
Collectively evaluated for impairment | 15 | 15 | ||||
Total allowance for loan losses | 16 | 17 | 17 | 15 | 13 | 17 |
Recorded investment | ||||||
Individually evaluated for impairment | 28 | 35 | ||||
Collectively evaluated for impairment | 4,170 | 3,722 | ||||
Total loans held for investment | 4,198 | 3,757 | ||||
Loans held for investment | SBL and other | ||||||
Allowance for loan losses | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 6 | 4 | ||||
Total allowance for loan losses | 6 | $ 5 | 4 | $ 3 | $ 4 | $ 4 |
Recorded investment | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 3,177 | 3,033 | ||||
Total loans held for investment | $ 3,177 | $ 3,033 |
VARIABLE INTEREST ENTITIES, Pri
VARIABLE INTEREST ENTITIES, Primary Beneficiary - Aggregate Assets and Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Sep. 30, 2018 |
Private Equity Interests | ||
Variable interest entity, consolidated, aggregate assets and liabilities [Abstract] | ||
Aggregate assets | $ 69 | $ 67 |
Aggregate liabilities | 4 | 5 |
LIHTC fund in which RJ Bank is an investor member | ||
Variable interest entity, consolidated, aggregate assets and liabilities [Abstract] | ||
Aggregate assets | 61 | 53 |
Aggregate liabilities | 0 | 0 |
Guaranteed LIHTC Fund | ||
Variable interest entity, consolidated, aggregate assets and liabilities [Abstract] | ||
Aggregate assets | 18 | 40 |
Aggregate liabilities | 3 | 3 |
Other LIHTC funds | ||
Variable interest entity, consolidated, aggregate assets and liabilities [Abstract] | ||
Aggregate assets | 26 | 18 |
Aggregate liabilities | 28 | 18 |
Restricted Stock Trust Fund | ||
Variable interest entity, consolidated, aggregate assets and liabilities [Abstract] | ||
Aggregate assets | 19 | 14 |
Aggregate liabilities | 19 | 14 |
Total VIEs - primary beneficiary | ||
Variable interest entity, consolidated, aggregate assets and liabilities [Abstract] | ||
Aggregate assets | 193 | 192 |
Aggregate liabilities | $ 54 | $ 40 |
VARIABLE INTEREST ENTITIES, P_2
VARIABLE INTEREST ENTITIES, Primary Beneficiary - Carrying Value of Assets, Liabilities and Equity (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Sep. 30, 2017 |
Assets: | ||||
Cash, cash equivalents and cash segregated pursuant to regulations | $ 5,952 | $ 5,941 | $ 5,867 | $ 7,146 |
Intercompany and other receivables | 631 | 592 | ||
Private equity investments | 146 | 147 | ||
Other assets | 965 | 847 | ||
Total assets | 38,677 | 37,413 | ||
Liabilities and Equity: | ||||
Other payables | 686 | 459 | ||
Total liabilities | 32,113 | 30,961 | ||
RJF equity | 6,502 | 6,368 | ||
Noncontrolling interests | 62 | 84 | ||
Total equity | 6,564 | 6,452 | $ 6,250 | |
Total liabilities and equity | 38,677 | 37,413 | ||
Total VIEs - primary beneficiary | ||||
Assets: | ||||
Cash, cash equivalents and cash segregated pursuant to regulations | 20 | 7 | ||
Intercompany and other receivables | 0 | 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 | 0 | ||
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 |
VARIABLE INTEREST ENTITIES, Not
VARIABLE INTEREST ENTITIES, Not the Primary Beneficiary - Aggregate Assets, Liabilities Exposure to Loss (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Sep. 30, 2018 |
LIHTC funds | ||
Variable interest entity, nonconsolidated, carrying amount of assets and liabilities [Abstract] | ||
Aggregate assets | $ 5,776 | $ 5,692 |
Aggregate liabilities | 2,167 | 1,912 |
Our risk of loss | 62 | 93 |
Private Equity Interests | ||
Variable interest entity, nonconsolidated, carrying amount of assets and liabilities [Abstract] | ||
Aggregate assets | 6,170 | 6,908 |
Aggregate liabilities | 155 | 154 |
Our risk of loss | 66 | 68 |
Other | ||
Variable interest entity, nonconsolidated, carrying amount of assets and liabilities [Abstract] | ||
Aggregate assets | 222 | 211 |
Aggregate liabilities | 125 | 114 |
Our risk of loss | 4 | 4 |
Total VIEs - not primary beneficiary | ||
Variable interest entity, nonconsolidated, carrying amount of assets and liabilities [Abstract] | ||
Aggregate assets | 12,168 | 12,811 |
Aggregate liabilities | 2,447 | 2,180 |
Our risk of loss | $ 132 | $ 165 |
GOODWILL AND IDENTIFIABLE INT_2
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS, NET (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill, Purchase Accounting Adjustments | $ 7 |
BANK DEPOSITS, Summary of Bank
BANK DEPOSITS, Summary of Bank Deposits (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Sep. 30, 2018 |
Bank deposits: | ||
Savings and money market accounts | $ 21,605 | $ 19,475 |
Certificates of deposit | 543 | 445 |
NOW accounts | 6 | 6 |
Demand deposits (non-interest-bearing) | 12 | 16 |
Total bank deposits | $ 22,166 | $ 19,942 |
Weighted-average rate [Abstract] | ||
Savings and money market accounts, weighted-average rate (in hundredths) | 0.54% | 0.54% |
Certificates of deposit, weighted-average rate (in hundredths) | 2.38% | 2.03% |
NOW accounts, weighted-average rate (in hundredths) | 0.01% | 0.01% |
Demand deposits (non-interest-bearing), weighted-average rate (in hundredths) | 0.00% | 0.00% |
Total bank deposits, weighted-average rate (in hundredths) | 0.58% | 0.57% |
Related party deposit liabilities | $ 148 | $ 279 |
RJF parent cash deposited with RJ Bank | 147 | $ 277 |
Time deposit amount that exceeds FDIC insurance limit | $ 25 |
BANK DEPOSITS, Schedule Maturit
BANK DEPOSITS, Schedule Maturities of Certificates of Deposit (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Sep. 30, 2018 |
Scheduled maturities of certificates of deposit, denominations greater than or equal to $100,000 [Abstract] | ||
Three months or less | $ 39 | $ 30 |
Over three through six months | 22 | 20 |
Over six through twelve months | 47 | 38 |
Over one through two years | 50 | 65 |
Over two through three years | 30 | 21 |
Over three through four years | 58 | 44 |
Over four through five years | 56 | 63 |
Total | 302 | 281 |
Scheduled maturities of certificates of deposit, denominations less than 100,000 [Abstract] | ||
Three months or less | 26 | 17 |
Over three through six months | 17 | 13 |
Over six through twelve months | 32 | 26 |
Over one through two years | 37 | 40 |
Over two through three years | 73 | 14 |
Over three through four years | 27 | 26 |
Over four through five years | 29 | 28 |
Total | $ 241 | $ 164 |
BANK DEPOSITS, Summary of Inter
BANK DEPOSITS, Summary of Interest Expense on Deposits (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Interest expense on deposits [Abstract] | ||||
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 |
OTHER BORROWINGS, Schedule of O
OTHER BORROWINGS, Schedule of Other Borrowings (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Sep. 30, 2018 |
Other Borrowings [Line Items] | ||
Total other borrowings | $ 945 | $ 899 |
Mortgage notes payable and other | ||
Other Borrowings [Line Items] | ||
Long-term debt | 20 | 24 |
Secured lines of credit | ||
Other Borrowings [Line Items] | ||
Long-term line of credit | 50 | 0 |
FHLB advances | ||
Other Borrowings [Line Items] | ||
Long-term line of credit | $ 875 | $ 875 |
OTHER BORROWINGS, Narrative (De
OTHER BORROWINGS, Narrative (Details) - USD ($) | 9 Months Ended | |
Jun. 30, 2019 | Sep. 30, 2018 | |
FHLB advances | ||
Debt Instrument [Line Items] | ||
Long-term line of credit | $ 875,000,000 | $ 875,000,000 |
FHLB advances | Weighted average | ||
Debt Instrument [Line Items] | ||
FHLB advances weighted average interest rate | 2.39% | 2.41% |
FHLB advances | FHLB Advance Maturing June 2020 | ||
Debt Instrument [Line Items] | ||
Debt Instrument, face amount | $ 850,000,000 | $ 850,000,000 |
FHLB advances | FHLB Advance Maturing October 2020 | ||
Debt Instrument [Line Items] | ||
Debt Instrument, face amount | $ 25,000,000 | $ 25,000,000 |
Stated interest rate | 3.40% | 3.40% |
Mortgages | 5.70% mortgage notes payable on our headquarters office complex, due 2023 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 5.70% | |
Revolving Credit Facility | The Credit Facility | ||
Debt Instrument [Line Items] | ||
Revolving credit agreement commitment fee percentage | 0.175% | |
Weighted average interest rate | 3.25% | |
Revolving Credit Facility | Line of Credit | The Credit Facility | ||
Debt Instrument [Line Items] | ||
Revolving credit agreement maximum borrowing capacity | $ 500,000,000 | |
Long-term line of credit | 0 | |
Raymond James Financial Inc | Revolving Credit Facility | Line of Credit | The Credit Facility | ||
Debt Instrument [Line Items] | ||
Revolving credit agreement maximum borrowing capacity | $ 300,000,000 |
INCOME TAXES (Details)
INCOME TAXES (Details) | 9 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 25.10% | 34.80% |
Impact of prior year's effective income tax rate | (8.10%) | |
Federal statutory tax rate | 21.00% | 24.50% |
COMMITMENTS, CONTINGENCIES AN_3
COMMITMENTS, CONTINGENCIES AND GUARANTEES, Commitments and Contingencies (Details) $ in Millions | 9 Months Ended |
Jun. 30, 2019USD ($)commitment | |
Commitments [Line Items] | |
Number of open underwriting commitments | commitment | 3 |
Unfunded loans not accepted by financial advisors and certain key revenue producers | |
Commitments [Line Items] | |
Amount of commitment | $ 214 |
Unfunded loans accepted by financial advisors and certain key revenue producers | |
Commitments [Line Items] | |
Amount of commitment | 128 |
Commitment to lend to RJTCF | |
Commitments [Line Items] | |
Amount of commitment | 225 |
Cash funded to invest in loans or investments in project partnerships | $ 96 |
Number of days that investments in project partnerships typically sold | 90 days |
Independent venture capital or private equity investment commitment | |
Commitments [Line Items] | |
Amount of commitment | $ 15 |
Forward GNMA MBS purchase commitments | |
Commitments [Line Items] | |
Amount of commitment | $ 301 |
Expected time of purchase (in days) | 90 days |
Subsidiary of RJ Bank | Commitment to lend to RJTCF | |
Commitments [Line Items] | |
Amount of commitment | $ 81 |
Amount of commitments fulfilled | $ 80 |
COMMITMENTS, CONTINGENCIES AN_4
COMMITMENTS, CONTINGENCIES AND GUARANTEES, Summary of Commitments to Extend Credit and Other Credit-Related Off-Balance Sheet Financial Instruments Outstanding (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Sep. 30, 2018 |
Commitments and Contingencies Disclosure [Abstract] | ||
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 |
COMMITMENTS, CONTINGENCIES AN_5
COMMITMENTS, CONTINGENCIES AND GUARANTEES, Guarantees (Details) | 9 Months Ended |
Jun. 30, 2019USD ($) | |
Guarantees [Abstract] | |
Low-income housing tax credit fund financing asset | $ 5,000,000 |
Amount of liability related to the low-income housing tax credit fund financing asset | 5,000,000 |
Securities Industry Protection Corporation (SIPC) | |
Guarantees [Abstract] | |
SIPC fund securities per customer limit (up to) | 500,000 |
Per customer upper limit claims for cash balances | 250,000 |
Raymond James & Associates Inc | |
Guarantees [Abstract] | |
Excess SIPC insured amount upper limit | 750,000,000 |
Excess SIPC Sub-limit per customer cash above basic SIPC | $ 1,900,000 |
Delivery of certain tax credits and other tax benefits guarantee | |
Guarantees [Abstract] | |
Number Of Years Under The Guarantee To Deliver A Certain Amount Of Tax Credits And Other Tax Benefits | 3 years |
Current exposure of guarantees | $ 5,000,000 |
Private equity investments | Financial Guarantee | |
Guarantees [Abstract] | |
Current exposure of guarantees | $ 14,000,000 |
COMMITMENTS, CONTINGENCIES AN_6
COMMITMENTS, CONTINGENCIES AND GUARANTEES, Legal and Regulatory Matters Contingencies (Details) - Pending Litigation - USD ($) $ in Millions | Jun. 30, 2019 | Apr. 05, 2019 |
Various lawsuits | ||
Loss Contingencies [Line Items] | ||
Range of loss portion not accrued | $ 85 | |
Brink Complaint and Wistar Complaint | ||
Loss Contingencies [Line Items] | ||
Proposed settlement amount | $ 15 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS), Schedule of Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Oct. 01, 2018 | Jan. 01, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||
Balance beginning of period | $ 6,452 | |||||
OCI: | ||||||
Balance end of period | $ 6,564 | $ 6,250 | 6,564 | $ 6,250 | ||
Net investment hedges | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||
Balance beginning of period | 114 | 85 | 88 | 60 | ||
Cumulative effect of adoption of accounting standard | $ 0 | $ 0 | ||||
OCI: | ||||||
OCI before reclassifications and taxes | (16) | 18 | 18 | 52 | ||
Amounts reclassified from AOCI, before tax | 0 | 0 | 0 | 0 | ||
Pre-tax net OCI | (16) | 18 | 18 | 52 | ||
Income tax effect | 4 | (5) | (4) | (14) | ||
Total other comprehensive income/(loss), net of tax | (12) | 13 | 14 | 38 | ||
Balance end of period | 102 | 98 | 102 | 98 | ||
Currency translations | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||
Balance beginning of period | (142) | (107) | (111) | (80) | ||
Cumulative effect of adoption of accounting standard | 0 | 0 | ||||
OCI: | ||||||
OCI before reclassifications and taxes | 18 | (19) | (13) | (46) | ||
Amounts reclassified from AOCI, before tax | 0 | 0 | 0 | 0 | ||
Pre-tax net OCI | 18 | (19) | (13) | (46) | ||
Income tax effect | 0 | 0 | 0 | 0 | ||
Total other comprehensive income/(loss), net of tax | 18 | (19) | (13) | (46) | ||
Balance end of period | (124) | (126) | (124) | (126) | ||
Subtotal: net investment hedges and currency translations | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||
Balance beginning of period | (28) | (22) | (23) | (20) | ||
Cumulative effect of adoption of accounting standard | 0 | 0 | ||||
OCI: | ||||||
OCI before reclassifications and taxes | 2 | (1) | 5 | 6 | ||
Amounts reclassified from AOCI, before tax | 0 | 0 | 0 | 0 | ||
Pre-tax net OCI | 2 | (1) | 5 | 6 | ||
Income tax effect | 4 | (5) | (4) | (14) | ||
Total other comprehensive income/(loss), net of tax | 6 | (6) | 1 | (8) | ||
Balance end of period | (22) | (28) | (22) | (28) | ||
Available- for-sale securities | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||
Balance beginning of period | (9) | (31) | (46) | (2) | ||
Cumulative effect of adoption of accounting standard | (4) | (2) | ||||
OCI: | ||||||
OCI before reclassifications and taxes | 32 | (5) | 90 | (45) | ||
Amounts reclassified from AOCI, before tax | 0 | 0 | 0 | 0 | ||
Pre-tax net OCI | 32 | (5) | 90 | (45) | ||
Income tax effect | (8) | 1 | (25) | 14 | ||
Total other comprehensive income/(loss), net of tax | 24 | (4) | 65 | (31) | ||
Balance end of period | 15 | (35) | 15 | (35) | ||
Cash flow hedges | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||
Balance beginning of period | 12 | 30 | 42 | 7 | ||
Cumulative effect of adoption of accounting standard | 0 | 2 | ||||
OCI: | ||||||
OCI before reclassifications and taxes | (24) | 10 | (64) | 39 | ||
Amounts reclassified from AOCI, before tax | (1) | (1) | (4) | 1 | ||
Pre-tax net OCI | (25) | 9 | (68) | 40 | ||
Income tax effect | 6 | (3) | 19 | (13) | ||
Total other comprehensive income/(loss), net of tax | (19) | 6 | (49) | 27 | ||
Balance end of period | (7) | 36 | (7) | 36 | ||
Accumulated other comprehensive loss | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||
Balance beginning of period | (25) | (23) | (27) | (15) | ||
Cumulative effect of adoption of accounting standard | $ (4) | $ 0 | ||||
OCI: | ||||||
OCI before reclassifications and taxes | 10 | 4 | 31 | 0 | ||
Amounts reclassified from AOCI, before tax | (1) | (1) | (4) | 1 | ||
Pre-tax net OCI | 9 | 3 | 27 | 1 | ||
Income tax effect | 2 | (7) | (10) | (13) | ||
Total other comprehensive income/(loss), net of tax | 11 | (4) | 17 | (12) | ||
Balance end of period | $ (14) | $ (27) | $ (14) | $ (27) |
REVENUES, Disaggregation of Rev
REVENUES, Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Principal transactions | $ 93 | $ 73 | $ 262 | $ 255 |
Other | 1,679 | 1,620 | 4,977 | 4,762 |
All other | 11 | 18 | 46 | 60 |
Interest income | 321 | 271 | 961 | 752 |
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 |
Asset management and related administrative fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 879 | 790 | 2,527 | 2,287 |
Total brokerage revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Other | 451 | 468 | 1,357 | 1,491 |
Subtotal securities commissions | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 358 | 395 | 1,095 | 1,236 |
Mutual and other fund products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 150 | 174 | 458 | 546 |
Insurance and annuity products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 105 | 97 | 308 | 308 |
Equities, ETFs and fixed income products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 103 | 124 | 329 | 382 |
Total account and service fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 183 | 187 | 559 | 535 |
Mutual fund and annuity service fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 84 | 83 | 243 | 241 |
RJBDP fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 66 | 71 | 214 | 201 |
Client account and other fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 33 | 33 | 102 | 93 |
Total investment banking | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 139 | 145 | 439 | 349 |
Equity underwriting | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 37 | 39 | 97 | 91 |
Merger & acquisition and advisory | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 78 | 85 | 279 | 200 |
Fixed income investment banking | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 24 | 21 | 63 | 58 |
Total other | ||||
Disaggregation of Revenue [Line Items] | ||||
Other | 27 | 30 | 95 | 100 |
Tax credit fund revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 16 | 12 | 49 | 40 |
Operating segments | Private Client Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Principal transactions | 20 | 22 | 59 | 62 |
Other | 1,305 | 1,237 | 3,839 | 3,663 |
All other | 3 | 8 | 19 | 24 |
Interest income | 56 | 50 | 170 | 140 |
Total revenues | 1,361 | 1,287 | 4,009 | 3,803 |
Interest expense | (10) | (8) | (31) | (19) |
Net revenues | 1,351 | 1,279 | 3,978 | 3,784 |
Operating segments | Private Client Group | Asset management and related administrative fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 718 | 636 | 2,063 | 1,843 |
Operating segments | Private Client Group | Total brokerage revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Other | 346 | 375 | 1,048 | 1,175 |
Operating segments | Private Client Group | Subtotal securities commissions | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 326 | 353 | 989 | 1,113 |
Operating segments | Private Client Group | Mutual and other fund products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 147 | 172 | 449 | 535 |
Operating segments | Private Client Group | Insurance and annuity products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 105 | 97 | 308 | 308 |
Operating segments | Private Client Group | Equities, ETFs and fixed income products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 74 | 84 | 232 | 270 |
Operating segments | Private Client Group | Total account and service fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 228 | 209 | 684 | 596 |
Operating segments | Private Client Group | Mutual fund and annuity service fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 85 | 85 | 250 | 246 |
Operating segments | Private Client Group | RJBDP fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 111 | 94 | 342 | 265 |
Operating segments | Private Client Group | Client account and other fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 32 | 30 | 92 | 85 |
Operating segments | Private Client Group | Total investment banking | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 10 | 9 | 25 | 25 |
Operating segments | Private Client Group | Equity underwriting | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 10 | 9 | 25 | 25 |
Operating segments | Private Client Group | Merger & acquisition and advisory | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 0 | 0 | 0 | 0 |
Operating segments | Private Client Group | Fixed income investment banking | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 0 | 0 | 0 | 0 |
Operating segments | Private Client Group | Total other | ||||
Disaggregation of Revenue [Line Items] | ||||
Other | 3 | 8 | 19 | 24 |
Operating segments | Private Client Group | Tax credit fund revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 0 | 0 | 0 | 0 |
Operating segments | Capital Markets | ||||
Disaggregation of Revenue [Line Items] | ||||
Principal transactions | 74 | 52 | 203 | 193 |
Other | 251 | 243 | 778 | 687 |
All other | (1) | (2) | 1 | 0 |
Interest income | 10 | 9 | 29 | 24 |
Total revenues | 261 | 252 | 807 | 711 |
Interest expense | (10) | (9) | (26) | (21) |
Net revenues | 251 | 243 | 781 | 690 |
Operating segments | Capital Markets | Asset management and related administrative fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 2 | 1 | 5 | 6 |
Operating segments | Capital Markets | Total brokerage revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Other | 104 | 94 | 306 | 313 |
Operating segments | Capital Markets | Subtotal securities commissions | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 30 | 42 | 103 | 120 |
Operating segments | Capital Markets | Mutual and other fund products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 1 | 2 | 4 | 6 |
Operating segments | Capital Markets | Insurance and annuity products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 0 | 0 | 0 | 0 |
Operating segments | Capital Markets | Equities, ETFs and fixed income products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 29 | 40 | 99 | 114 |
Operating segments | Capital Markets | Total account and service fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 1 | 2 | 3 | 4 |
Operating segments | Capital Markets | Mutual fund and annuity service fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 0 | 0 | 0 | 0 |
Operating segments | Capital Markets | RJBDP fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 0 | 0 | 0 | 0 |
Operating segments | Capital Markets | Client account and other fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 1 | 2 | 3 | 4 |
Operating segments | Capital Markets | Total investment banking | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 129 | 136 | 414 | 324 |
Operating segments | Capital Markets | Equity underwriting | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 27 | 30 | 72 | 66 |
Operating segments | Capital Markets | Merger & acquisition and advisory | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 78 | 85 | 279 | 200 |
Operating segments | Capital Markets | Fixed income investment banking | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 24 | 21 | 63 | 58 |
Operating segments | Capital Markets | Total other | ||||
Disaggregation of Revenue [Line Items] | ||||
Other | 15 | 10 | 50 | 40 |
Operating segments | Capital Markets | Tax credit fund revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 16 | 12 | 49 | 40 |
Operating segments | Asset Management | ||||
Disaggregation of Revenue [Line Items] | ||||
Principal transactions | 0 | 0 | 0 | 0 |
Other | 176 | 168 | 510 | 481 |
All other | 1 | (1) | 1 | 0 |
Interest income | 1 | 0 | 3 | 1 |
Total revenues | 177 | 168 | 513 | 482 |
Interest expense | 0 | 0 | 0 | 0 |
Net revenues | 177 | 168 | 513 | 482 |
Operating segments | Asset Management | Asset management and related administrative fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 165 | 157 | 475 | 450 |
Operating segments | Asset Management | Total brokerage revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Other | 2 | 3 | 7 | 9 |
Operating segments | Asset Management | Subtotal securities commissions | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 2 | 3 | 7 | 9 |
Operating segments | Asset Management | Mutual and other fund products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 2 | 3 | 7 | 9 |
Operating segments | Asset Management | Insurance and annuity products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 0 | 0 | 0 | 0 |
Operating segments | Asset Management | Equities, ETFs and fixed income products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 0 | 0 | 0 | 0 |
Operating segments | Asset Management | Total account and service fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 8 | 9 | 27 | 22 |
Operating segments | Asset Management | Mutual fund and annuity service fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 0 | 0 | 2 | 1 |
Operating segments | Asset Management | RJBDP fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 1 | 1 | 3 | 3 |
Operating segments | Asset Management | Client account and other fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 7 | 8 | 22 | 18 |
Operating segments | Asset Management | Total investment banking | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 0 | 0 | 0 | 0 |
Operating segments | Asset Management | Equity underwriting | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 0 | 0 | 0 | 0 |
Operating segments | Asset Management | Merger & acquisition and advisory | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 0 | 0 | 0 | 0 |
Operating segments | Asset Management | Fixed income investment banking | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 0 | 0 | 0 | 0 |
Operating segments | Asset Management | Total other | ||||
Disaggregation of Revenue [Line Items] | ||||
Other | 1 | (1) | 1 | 0 |
Operating segments | Asset Management | Tax credit fund revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 0 | 0 | 0 | 0 |
Operating segments | RJ Bank | ||||
Disaggregation of Revenue [Line Items] | ||||
Principal transactions | 0 | 0 | 1 | 1 |
Other | 7 | 8 | 20 | 17 |
All other | 7 | 8 | 19 | 16 |
Interest income | 246 | 205 | 732 | 571 |
Total revenues | 253 | 213 | 752 | 588 |
Interest expense | (38) | (25) | (122) | (56) |
Net revenues | 215 | 188 | 630 | 532 |
Operating segments | RJ Bank | Asset management and related administrative fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 0 | 0 | 0 | 0 |
Operating segments | RJ Bank | Total brokerage revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Other | 0 | 0 | 1 | 1 |
Operating segments | RJ Bank | Subtotal securities commissions | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 0 | 0 | 0 | 0 |
Operating segments | RJ Bank | Mutual and other fund products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 0 | 0 | 0 | 0 |
Operating segments | RJ Bank | Insurance and annuity products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 0 | 0 | 0 | 0 |
Operating segments | RJ Bank | Equities, ETFs and fixed income products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 0 | 0 | 0 | 0 |
Operating segments | RJ Bank | Total account and service fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 0 | 0 | 0 | 0 |
Operating segments | RJ Bank | Mutual fund and annuity service fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 0 | 0 | 0 | 0 |
Operating segments | RJ Bank | RJBDP fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 0 | 0 | 0 | 0 |
Operating segments | RJ Bank | Client account and other fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 0 | 0 | 0 | 0 |
Operating segments | RJ Bank | Total investment banking | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 0 | 0 | 0 | 0 |
Operating segments | RJ Bank | Equity underwriting | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 0 | 0 | 0 | 0 |
Operating segments | RJ Bank | Merger & acquisition and advisory | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 0 | 0 | 0 | 0 |
Operating segments | RJ Bank | Fixed income investment banking | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 0 | 0 | 0 | 0 |
Operating segments | RJ Bank | Total other | ||||
Disaggregation of Revenue [Line Items] | ||||
Other | 7 | 8 | 19 | 16 |
Operating segments | RJ Bank | Tax credit fund revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 0 | 0 | 0 | 0 |
Operating segments | Other and intersegment eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 15 | 16 | 55 | 53 |
Other and intersegment eliminations | Other and intersegment eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Principal transactions | (1) | (1) | (1) | (1) |
Other | (60) | (36) | (170) | (86) |
All other | 1 | 5 | 20 | |
Interest income | 8 | 7 | 27 | 16 |
Total revenues | (52) | (29) | (143) | (70) |
Interest expense | (15) | (12) | (42) | (43) |
Net revenues | (67) | (41) | (185) | (113) |
Other and intersegment eliminations | Other and intersegment eliminations | Asset management and related administrative fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | (6) | (4) | (16) | (12) |
Other and intersegment eliminations | Other and intersegment eliminations | Total brokerage revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Other | (1) | (4) | (5) | (7) |
Other and intersegment eliminations | Other and intersegment eliminations | Subtotal securities commissions | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 0 | (3) | (4) | (6) |
Other and intersegment eliminations | Other and intersegment eliminations | Mutual and other fund products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 0 | (3) | (2) | (4) |
Other and intersegment eliminations | Other and intersegment eliminations | Insurance and annuity products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 0 | 0 | 0 | 0 |
Other and intersegment eliminations | Other and intersegment eliminations | Equities, ETFs and fixed income products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 0 | 0 | (2) | (2) |
Other and intersegment eliminations | Other and intersegment eliminations | Total account and service fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | (54) | (33) | (155) | (87) |
Other and intersegment eliminations | Other and intersegment eliminations | Mutual fund and annuity service fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | (1) | (2) | (9) | (6) |
Other and intersegment eliminations | Other and intersegment eliminations | RJBDP fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | (46) | (24) | (131) | (67) |
Other and intersegment eliminations | Other and intersegment eliminations | Client account and other fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | (7) | (7) | (15) | (14) |
Other and intersegment eliminations | Other and intersegment eliminations | Total investment banking | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 0 | 0 | 0 | 0 |
Other and intersegment eliminations | Other and intersegment eliminations | Equity underwriting | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 0 | 0 | 0 | 0 |
Other and intersegment eliminations | Other and intersegment eliminations | Merger & acquisition and advisory | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 0 | 0 | 0 | 0 |
Other and intersegment eliminations | Other and intersegment eliminations | Fixed income investment banking | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 0 | 0 | 0 | 0 |
Other and intersegment eliminations | Other and intersegment eliminations | Total other | ||||
Disaggregation of Revenue [Line Items] | ||||
Other | 1 | 5 | 6 | 20 |
Other and intersegment eliminations | Other and intersegment eliminations | Tax credit fund revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | $ 0 | $ 0 | $ 0 | $ 0 |
REVENUES, Additional Informatio
REVENUES, Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Sep. 30, 2018 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Noninterest Income | $ 1,679 | $ 1,620 | $ 4,977 | $ 4,762 | |
Professional fees | 22 | 20 | 61 | 48 | |
Other expense | 65 | 68 | 205 | 178 | |
Receivables related to contracts with customers | 340 | 340 | $ 384 | ||
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | |||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Professional fees | 0 | 0 | |||
Other expense | 0 | 0 | |||
Total other | |||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Noninterest Income | 27 | 30 | 95 | 100 | |
Investment banking | |||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Revenue from contract with customer | 139 | 145 | 439 | 349 | |
Investment banking | Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | |||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Revenue from contract with customer | 6 | 16 | |||
Account and service fees | |||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Revenue from contract with customer | 183 | 187 | 559 | 535 | |
Account and service fees | Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | |||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Revenue from contract with customer | 1 | 5 | |||
Operating segments | Private Client Group | |||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Noninterest Income | 1,305 | 1,237 | 3,839 | 3,663 | |
Operating segments | Private Client Group | Total other | |||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Noninterest Income | 3 | 8 | 19 | 24 | |
Operating segments | Private Client Group | Investment banking | |||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Revenue from contract with customer | 10 | 9 | 25 | 25 | |
Operating segments | Private Client Group | Account and service fees | |||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Revenue from contract with customer | 228 | 209 | 684 | 596 | |
Operating segments | Capital Markets | |||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Noninterest Income | 251 | 243 | 778 | 687 | |
Operating segments | Capital Markets | Total other | |||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Noninterest Income | 15 | 10 | 50 | 40 | |
Operating segments | Capital Markets | Investment banking | |||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Revenue from contract with customer | 129 | 136 | 414 | 324 | |
Operating segments | Capital Markets | Account and service fees | |||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Revenue from contract with customer | 1 | 2 | 3 | 4 | |
Operating segments | Asset Management | |||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Noninterest Income | 176 | 168 | 510 | 481 | |
Operating segments | Asset Management | Total other | |||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Noninterest Income | 1 | (1) | 1 | 0 | |
Operating segments | Asset Management | Investment banking | |||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Revenue from contract with customer | 0 | 0 | 0 | 0 | |
Operating segments | Asset Management | Account and service fees | |||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Revenue from contract with customer | 8 | 9 | 27 | 22 | |
Operating segments | RJ Bank | |||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Noninterest Income | 7 | 8 | 20 | 17 | |
Operating segments | RJ Bank | Total other | |||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Noninterest Income | 7 | 8 | 19 | 16 | |
Operating segments | RJ Bank | Investment banking | |||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Revenue from contract with customer | 0 | 0 | 0 | 0 | |
Operating segments | RJ Bank | Account and service fees | |||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Revenue from contract with customer | $ 0 | $ 0 | $ 0 | $ 0 |
INTEREST INCOME AND INTEREST _3
INTEREST INCOME AND INTEREST EXPENSE (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 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 |
SHARE-BASED AND OTHER COMPENSAT
SHARE-BASED AND OTHER COMPENSATION, Share-based Compensation Plans (Details) - Stock Incentive Plan 2012 $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019USD ($)plan | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)plan$ / sharesshares | Jun. 30, 2018USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of share-based compensation plans | plan | 1 | 1 | ||
Employees and Outside Members of the Board of Directors | Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
RSUs granted during period (in shares) | shares | 1,500,000 | |||
RSUs granted during period, weighted-average grant-date fair value (in usd per share) | $ / shares | $ 76.71 | |||
Employees and Member of the Board of Directors | Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total compensation expense for restricted equity awards | $ 20 | $ 19 | $ 81 | $ 70 |
Total pre-tax compensation costs not yet recognized, net of forfeitures | $ 164 | $ 164 | ||
Compensation costs not yet recognized, period of recognition | 3 years |
REGULATORY CAPITAL REQUIREMEN_3
REGULATORY CAPITAL REQUIREMENTS (Details) - USD ($) $ in Millions | Jan. 01, 2019 | Jun. 30, 2019 | Sep. 30, 2018 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Capital required for capital adequacy ratio, capital conservation buffer, maximum (in hundredths) | 2.50% | ||
Raymond James Financial Inc | |||
Common Equity Tier 1 Capital (to Risk-Weighted Assets) | |||
Actual, amount | $ 5,854 | $ 5,718 | |
Actual, ratio (in hundredths) | 24.20% | 24.30% | |
Requirement for capital adequacy purposes, amount | $ 1,089 | $ 1,057 | |
Requirement for capital adequacy purposes, ratio (in hundredths) | 4.50% | 4.50% | |
To be well capitalized under regulatory provisions, amount | $ 1,572 | $ 1,527 | |
To be well capitalized under regulatory provisions, ratio (in hundredths) | 6.50% | 6.50% | |
Tier 1 Capital (to Risk-Weighted Assets) | |||
Actual, amount | $ 5,854 | $ 5,718 | |
Actual, ratio (in hundredths) | 24.20% | 24.30% | |
Requirement for capital adequacy purposes, amount | $ 1,451 | $ 1,410 | |
Requirement for capital adequacy purposes, ratio (in hundredths) | 6.00% | 6.00% | |
To be well capitalized under regulatory provisions, amount | $ 1,935 | $ 1,880 | |
To be well capitalized under regulatory provisions, ratio (in hundredths) | 8.00% | 8.00% | |
Total Capital (to Risk-Weighted Assets) | |||
Actual, amount | $ 6,089 | $ 5,941 | |
Actual, ratio (in hundredths) | 25.20% | 25.30% | |
Requirement for capital adequacy purposes, amount | $ 1,935 | $ 1,880 | |
Requirement for capital adequacy purposes, ratio (in hundredths) | 8.00% | 8.00% | |
To be well capitalized under regulatory provisions, amount | $ 2,419 | $ 2,350 | |
To be well capitalized under regulatory provisions, ratio (in hundredths) | 10.00% | 10.00% | |
Tier 1 leverage | |||
Actual, amount | $ 5,854 | $ 5,718 | |
Actual, ratio (in hundredths) | 15.70% | 15.80% | |
Requirement for capital adequacy purposes, amount | $ 1,496 | $ 1,451 | |
Requirement for capital adequacy purposes, ratio (in hundredths) | 4.00% | 4.00% | |
To be well capitalized under regulatory provisions, amount | $ 1,870 | $ 1,814 | |
To be well capitalized under regulatory provisions, ratio (in hundredths) | 5.00% | 5.00% | |
RJ Bank | |||
Common Equity Tier 1 Capital (to Risk-Weighted Assets) | |||
Actual, amount | $ 2,190 | $ 2,029 | |
Actual, ratio (in hundredths) | 12.80% | 12.70% | |
Requirement for capital adequacy purposes, amount | $ 768 | $ 721 | |
Requirement for capital adequacy purposes, ratio (in hundredths) | 4.50% | 4.50% | |
To be well capitalized under regulatory provisions, amount | $ 1,109 | $ 1,042 | |
To be well capitalized under regulatory provisions, ratio (in hundredths) | 6.50% | 6.50% | |
Tier 1 Capital (to Risk-Weighted Assets) | |||
Actual, amount | $ 2,190 | $ 2,029 | |
Actual, ratio (in hundredths) | 12.80% | 12.70% | |
Requirement for capital adequacy purposes, amount | $ 1,024 | $ 961 | |
Requirement for capital adequacy purposes, ratio (in hundredths) | 6.00% | 6.00% | |
To be well capitalized under regulatory provisions, amount | $ 1,365 | $ 1,282 | |
To be well capitalized under regulatory provisions, ratio (in hundredths) | 8.00% | 8.00% | |
Total Capital (to Risk-Weighted Assets) | |||
Actual, amount | $ 2,403 | $ 2,229 | |
Actual, ratio (in hundredths) | 14.10% | 13.90% | |
Requirement for capital adequacy purposes, amount | $ 1,365 | $ 1,282 | |
Requirement for capital adequacy purposes, ratio (in hundredths) | 8.00% | 8.00% | |
To be well capitalized under regulatory provisions, amount | $ 1,706 | $ 1,602 | |
To be well capitalized under regulatory provisions, ratio (in hundredths) | 10.00% | 10.00% | |
Tier 1 leverage | |||
Actual, amount | $ 2,190 | $ 2,029 | |
Actual, ratio (in hundredths) | 8.80% | 8.80% | |
Requirement for capital adequacy purposes, amount | $ 991 | $ 926 | |
Requirement for capital adequacy purposes, ratio (in hundredths) | 4.00% | 4.00% | |
To be well capitalized under regulatory provisions, amount | $ 1,239 | $ 1,158 | |
To be well capitalized under regulatory provisions, ratio (in hundredths) | 5.00% | 5.00% | |
Raymond James & Associates Inc | |||
Alternative Method Elected [Abstract] | |||
Net capital as a percent of aggregate debit items (in hundredths) | 41.90% | 28.20% | |
Net capital | $ 1,088 | $ 934 | |
Less: required net capital | (52) | (66) | |
Excess net capital | $ 1,036 | $ 868 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 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) | 0 | (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) | 0 | (1) | (1) |
Net income attributable to RJF common shareholders | $ 258 | $ 232 | $ 768 | $ 593 |
Common shares: | ||||
Average common shares in basic computation (in shares) | 140.4 | 145.6 | 141.8 | 145.2 |
Dilutive effect of outstanding stock options and certain restricted stock units (in shares) | 3.2 | 3.8 | 3 | 3.6 |
Average common shares used in diluted computation (in shares) | 143.6 | 149.4 | 144.8 | 148.8 |
Earnings per common share: | ||||
Basic (in dollars per share) | $ 1.84 | $ 1.59 | $ 5.42 | $ 4.08 |
Diluted (in dollars per share) | $ 1.80 | $ 1.55 | $ 5.30 | $ 3.99 |
Stock options and certain restricted stock units excluded from weighted-average diluted common shares because their effect would be antidilutive (in shares) | 0.2 | 0.2 | 0.5 | 1.1 |
Dividends per common share declared and paid: [Abstract] | ||||
Dividends per common share - declared (in dollars per share) | $ 0.34 | $ 0.30 | $ 1.02 | $ 0.80 |
Dividends per common share - paid (in dollars per share) | $ 0.34 | $ 0.25 | $ 0.98 | $ 0.72 |
SEGMENT INFORMATION, Informatio
SEGMENT INFORMATION, Information Concerning Operations (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)segment | Jun. 30, 2018USD ($) | Sep. 30, 2018USD ($) | |
Segment Reporting Information [Line Items] | |||||
Number of operating segments | segment | 5 | ||||
Revenues: | |||||
Revenue from contract with customer | $ 2,000 | $ 1,891 | $ 5,938 | $ 5,514 | |
Pre-tax income excluding noncontrolling interests | |||||
Pre-tax income excluding noncontrolling interests | 342 | 318 | 1,021 | 961 | |
Net loss attributable to noncontrolling interests | (2) | 0 | (16) | 0 | |
Income including noncontrolling interests and before provision for income taxes | 340 | 318 | 1,005 | 961 | |
Net interest income (expense): | |||||
Net interest income | 248 | 217 | 740 | 613 | |
Total assets: | |||||
Total assets | 38,677 | 38,677 | $ 37,413 | ||
Goodwill: | |||||
Goodwill | 484 | 484 | 478 | ||
Private Client Group | |||||
Goodwill: | |||||
Goodwill | 276 | 276 | 276 | ||
Capital Markets | |||||
Goodwill: | |||||
Goodwill | 139 | 139 | 133 | ||
Operating segments | Private Client Group | |||||
Revenues: | |||||
Revenue from contract with customer | 1,361 | 1,287 | 4,009 | 3,803 | |
Pre-tax income excluding noncontrolling interests | |||||
Pre-tax income excluding noncontrolling interests | 140 | 132 | 436 | 445 | |
Net interest income (expense): | |||||
Net interest income | 46 | 42 | 139 | 121 | |
Total assets: | |||||
Total assets | 8,877 | 8,877 | 10,173 | ||
Operating segments | Capital Markets | |||||
Revenues: | |||||
Revenue from contract with customer | 261 | 252 | 807 | 711 | |
Pre-tax income excluding noncontrolling interests | |||||
Pre-tax income excluding noncontrolling interests | 24 | 22 | 77 | 43 | |
Net interest income (expense): | |||||
Net interest income | 0 | 0 | 3 | 3 | |
Total assets: | |||||
Total assets | 2,420 | 2,420 | 2,279 | ||
Operating segments | Asset Management | |||||
Revenues: | |||||
Revenue from contract with customer | 177 | 168 | 513 | 482 | |
Pre-tax income excluding noncontrolling interests | |||||
Pre-tax income excluding noncontrolling interests | 65 | 58 | 184 | 171 | |
Net interest income (expense): | |||||
Net interest income | 1 | 0 | 3 | 1 | |
Total assets: | |||||
Total assets | 390 | 390 | 387 | ||
Goodwill: | |||||
Goodwill | 69 | 69 | 69 | ||
Operating segments | RJ Bank | |||||
Revenues: | |||||
Revenue from contract with customer | 253 | 213 | 752 | 588 | |
Pre-tax income excluding noncontrolling interests | |||||
Pre-tax income excluding noncontrolling interests | 138 | 130 | 384 | 362 | |
Net interest income (expense): | |||||
Net interest income | 208 | 180 | 610 | 515 | |
Total assets: | |||||
Total assets | 25,501 | 25,501 | 22,922 | ||
Operating segments | Other | |||||
Revenues: | |||||
Revenue from contract with customer | 15 | 16 | 55 | 53 | |
Pre-tax income excluding noncontrolling interests | |||||
Pre-tax income excluding noncontrolling interests | (25) | (24) | (60) | (60) | |
Total assets: | |||||
Total assets | 1,489 | 1,489 | $ 1,652 | ||
Intersegment eliminations | |||||
Revenues: | |||||
Revenue from contract with customer | (67) | (45) | (198) | (123) | |
Other and intersegment eliminations | Other | |||||
Revenues: | |||||
Revenue from contract with customer | (52) | (29) | (143) | (70) | |
Net interest income (expense): | |||||
Net interest income | $ (7) | $ (5) | $ (15) | $ (27) |
SEGMENT INFORMATION, Classified
SEGMENT INFORMATION, Classified by Major Geographic Areas (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Sep. 30, 2018 | |
Revenues: | ||||||
Revenue from contract with customer | $ 2,000 | $ 1,891 | $ 5,938 | $ 5,514 | ||
Pre-tax income excluding noncontrolling interests | ||||||
Pre-tax income excluding noncontrolling interests | 342 | 318 | 1,021 | 961 | ||
Total assets: | ||||||
Total assets | 38,677 | 38,677 | $ 37,413 | |||
Goodwill: | ||||||
Goodwill | 484 | 484 | 478 | |||
U.S. | ||||||
Revenues: | ||||||
Revenue from contract with customer | 1,858 | 1,750 | 5,508 | 5,094 | ||
Pre-tax income excluding noncontrolling interests | ||||||
Pre-tax income excluding noncontrolling interests | 330 | 303 | 994 | 925 | ||
Total assets: | ||||||
Total assets | 35,909 | 35,909 | 34,651 | |||
Goodwill: | ||||||
Goodwill | 433 | 433 | 426 | |||
Canada | ||||||
Revenues: | ||||||
Revenue from contract with customer | 110 | 107 | 321 | 316 | ||
Pre-tax income excluding noncontrolling interests | ||||||
Pre-tax income excluding noncontrolling interests | 12 | 16 | 35 | 39 | ||
Total assets: | ||||||
Total assets | 2,673 | 2,673 | 2,673 | |||
Goodwill: | ||||||
Goodwill | 42 | 42 | 43 | |||
Europe | ||||||
Revenues: | ||||||
Revenue from contract with customer | 32 | 34 | 109 | 104 | ||
Pre-tax income excluding noncontrolling interests | ||||||
Pre-tax income excluding noncontrolling interests | 0 | $ (1) | (8) | $ (3) | ||
Disposition-related expenses for loss on sale of operations | $ 15 | |||||
Total assets: | ||||||
Total assets | 95 | 95 | 89 | |||
Goodwill: | ||||||
Goodwill | $ 9 | $ 9 | $ 9 |