COVER PAGE
COVER PAGE - shares | 9 Months Ended | |
Jun. 30, 2020 | Aug. 06, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 1-9109 | |
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, $.01 par value | |
Trading Symbol | RJF | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 137,159,781 | |
Entity Central Index Key | 0000720005 | |
Current Fiscal Year End Date | --09-30 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited) - USD ($) $ in Millions | Jun. 30, 2020 | Sep. 30, 2019 |
Assets: | ||
Cash and cash equivalents | $ 5,632 | $ 3,957 |
Cash and cash equivalents segregated pursuant to regulations | 3,205 | 2,014 |
Securities purchased under agreements to resell | 193 | 343 |
Securities borrowed | 300 | 248 |
Financial instruments, at fair value: | ||
Trading instruments ($270 and $535 pledged as collateral) | 361 | 708 |
Available-for-sale securities ($24 and $24 pledged as collateral) | 5,630 | 3,093 |
Derivative assets | 452 | 338 |
Other investments ($40 and $32 pledged as collateral) | 327 | 365 |
Brokerage client receivables, net | 2,346 | 2,671 |
Receivables from brokers, dealers and clearing organizations | 472 | 281 |
Other receivables | 616 | 549 |
Bank loans, net | 21,223 | 20,891 |
Loans to financial advisors, net | 992 | 983 |
Property and equipment, net | 537 | 527 |
Deferred income taxes, net | 222 | 231 |
Goodwill and identifiable intangible assets, net | 602 | 611 |
Other assets | 1,572 | 1,020 |
Total assets | 44,682 | 38,830 |
Liabilities and shareholders’ equity: | ||
Bank deposits | 25,372 | 22,281 |
Securities sold under agreements to repurchase | 228 | 150 |
Securities loaned | 88 | 323 |
Financial instruments sold but not yet purchased, at fair value: | ||
Trading instruments | 154 | 296 |
Derivative liabilities | 394 | 313 |
Brokerage client payables | 5,955 | 4,361 |
Payables to brokers, dealers and clearing organizations | 190 | 229 |
Accrued compensation, commissions and benefits | 1,109 | 1,272 |
Other payables | 1,243 | 518 |
Other borrowings | 890 | 894 |
Senior notes payable | 2,044 | 1,550 |
Total liabilities | 37,667 | 32,187 |
Commitments and contingencies (see Note 15) | ||
Shareholders’ 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; 158,909,194 and 158,435,030 shares issued as of June 30, 2020 and September 30, 2019, respectively, and 137,025,724 and 137,841,952 shares outstanding as of June 30, 2020 and September 30, 2019, respectively | 2 | 2 |
Additional paid-in capital | 1,984 | 1,938 |
Retained earnings | 6,326 | 5,874 |
Treasury stock, at cost; 21,883,470 and 20,593,078 common shares as of June 30, 2020 and September 30, 2019, respectively | (1,348) | (1,210) |
Accumulated other comprehensive income/(loss) | 1 | (23) |
Total equity attributable to Raymond James Financial, Inc. | 6,965 | 6,581 |
Noncontrolling interests | 50 | 62 |
Total shareholders’ equity | 7,015 | 6,643 |
Total liabilities and shareholders’ equity | $ 44,682 | $ 38,830 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited) (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2020 | Sep. 30, 2019 |
Statement of Financial Position [Abstract] | ||
Financial instruments, owned and pledged as collateral, at fair value | $ 270 | $ 535 |
Available-for-sale securities, pledged as collateral | 24 | 24 |
Other investments, owned and pledged as collateral, at fair value | $ 40 | $ 32 |
Equity [Abstract] | ||
Preferred stock, par value per share (in usd 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 | |
Preferred stock, shares outstanding (in shares) | 0 | |
Common stock, par value per share (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 350,000,000 | 350,000,000 |
Common stock, shares issued (in shares) | 158,909,194 | 158,435,030 |
Common stock, shares outstanding (in shares) | 137,025,724 | 137,841,952 |
Treasury stock (in shares) | 21,883,470 | 20,593,078 |
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, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenues: | ||||
Principal transactions | $ 143 | $ 93 | $ 345 | $ 262 |
Noninterest Income | 1,659 | 1,679 | 5,248 | 4,977 |
Interest income | 217 | 321 | 799 | 961 |
Total revenues | 1,876 | 2,000 | 6,047 | 5,938 |
Interest expense | (42) | (73) | (136) | (221) |
Net revenues | 1,834 | 1,927 | 5,911 | 5,717 |
Non-interest expenses: | ||||
Compensation, commissions and benefits | 1,277 | 1,277 | 4,050 | 3,767 |
Non-compensation expenses: | ||||
Communications and information processing | 100 | 92 | 293 | 278 |
Occupancy and equipment | 55 | 55 | 168 | 159 |
Business development | 21 | 57 | 106 | 141 |
Investment sub-advisory fees | 23 | 24 | 75 | 70 |
Professional fees | 24 | 22 | 68 | 61 |
Provision/(benefit) for loan losses | 81 | (5) | 188 | 16 |
Acquisition and disposition-related expenses | 0 | 0 | 0 | 15 |
Other | 55 | 63 | 167 | 189 |
Total non-compensation expenses | 359 | 308 | 1,065 | 929 |
Total non-interest expenses | 1,636 | 1,585 | 5,115 | 4,696 |
Pre-tax income | 198 | 342 | 796 | 1,021 |
Provision for income taxes | 26 | 83 | 187 | 252 |
Net income | $ 172 | $ 259 | $ 609 | $ 769 |
Earnings per common share – basic (in dollars per share) | $ 1.25 | $ 1.84 | $ 4.41 | $ 5.42 |
Earnings per common share – diluted (in dollars per share) | $ 1.23 | $ 1.80 | $ 4.33 | $ 5.30 |
Weighted-average common shares outstanding – basic (in shares) | 137.1 | 140.4 | 137.9 | 141.8 |
Weighted-average common and common equivalent shares outstanding – diluted (in shares) | 139.4 | 143.6 | 140.5 | 144.8 |
Other comprehensive (loss) income, net of tax: | ||||
Available-for-sale securities | $ 5 | $ 24 | $ 67 | $ 65 |
Currency translations, net of the impact of net investment hedges | 11 | 6 | (6) | 1 |
Cash flow hedges | (4) | (19) | (37) | (49) |
Total other comprehensive income, net of tax | 12 | 11 | 24 | 17 |
Total comprehensive income | 184 | 270 | 633 | 786 |
Asset management and related administrative fees | ||||
Revenues: | ||||
Revenue from contract with customer | 867 | 879 | 2,828 | 2,527 |
Total brokerage revenues | ||||
Revenues: | ||||
Noninterest Income | 486 | 451 | 1,461 | 1,357 |
Securities commissions | ||||
Revenues: | ||||
Revenue from contract with customer | 343 | 358 | 1,116 | 1,095 |
Account and service fees | ||||
Revenues: | ||||
Revenue from contract with customer | 134 | 183 | 484 | 559 |
Investment banking | ||||
Revenues: | ||||
Revenue from contract with customer | 139 | 139 | 428 | 439 |
Other | ||||
Revenues: | ||||
Noninterest Income | $ 33 | $ 27 | $ 47 | $ 95 |
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 income/ (loss) | Total equity attributable to Raymond James Financial, Inc. | Noncontrolling interests |
Balance beginning of period at Sep. 30, 2018 | $ 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) | |||||||
Net income attributable to Raymond James Financial, Inc. | $ 769 | 769 | ||||||
Cash dividends declared (see Note 21) | (146) | |||||||
Other | 4 | (4) | ||||||
Purchases/surrenders | (598) | |||||||
Other comprehensive income, net of tax | 17 | 17 | ||||||
Net loss attributable to noncontrolling interests | (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) | |||||||
Net income attributable to Raymond James Financial, Inc. | 259 | 259 | ||||||
Cash dividends declared (see Note 21) | (47) | |||||||
Other | (1) | 0 | ||||||
Purchases/surrenders | (86) | |||||||
Other comprehensive income, net of tax | 11 | 11 | ||||||
Net loss attributable to noncontrolling interests | (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 |
Balance beginning of period at Sep. 30, 2019 | 6,643 | 2 | 1,938 | 5,874 | (1,210) | (23) | 62 | |
Changes in Shareholders' Equity: | ||||||||
Share issuances | 0 | |||||||
Employee stock purchases | 29 | |||||||
Exercise of stock options and vesting of restricted stock units, net of forfeitures | (74) | 84 | ||||||
Restricted stock, stock option and restricted stock unit expense | 91 | |||||||
Acquisition of noncontrolling interest and other | 0 | |||||||
Net income attributable to Raymond James Financial, Inc. | 609 | 609 | ||||||
Cash dividends declared (see Note 21) | (157) | |||||||
Other | 0 | 0 | ||||||
Purchases/surrenders | (222) | |||||||
Other comprehensive income, net of tax | 24 | 24 | ||||||
Net loss attributable to noncontrolling interests | (26) | |||||||
Capital contributions | 0 | |||||||
Distributions and other | 14 | |||||||
Balance end of period at Jun. 30, 2020 | 7,015 | 2 | 1,984 | 6,326 | (1,348) | 1 | 6,965 | 50 |
Balance beginning of period at Mar. 31, 2020 | 2 | 1,953 | 6,205 | (1,351) | (11) | 36 | ||
Changes in Shareholders' Equity: | ||||||||
Share issuances | 0 | |||||||
Employee stock purchases | 12 | |||||||
Exercise of stock options and vesting of restricted stock units, net of forfeitures | (3) | 3 | ||||||
Restricted stock, stock option and restricted stock unit expense | 22 | |||||||
Acquisition of noncontrolling interest and other | 0 | |||||||
Net income attributable to Raymond James Financial, Inc. | 172 | 172 | ||||||
Cash dividends declared (see Note 21) | (51) | |||||||
Other | 0 | 0 | ||||||
Purchases/surrenders | 0 | |||||||
Other comprehensive income, net of tax | 12 | 12 | ||||||
Net loss attributable to noncontrolling interests | (2) | |||||||
Capital contributions | 0 | |||||||
Distributions and other | 16 | |||||||
Balance end of period at Jun. 30, 2020 | $ 7,015 | $ 2 | $ 1,984 | $ 6,326 | $ (1,348) | $ 1 | $ 6,965 | $ 50 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDER'S EQUITY (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2020 | Sep. 30, 2019 |
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||
Common stock, par value per share (in usd per share) | $ 0.01 | $ 0.01 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 9 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 609,000,000 | $ 769,000,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 88,000,000 | 81,000,000 |
Deferred income taxes | (13,000,000) | (22,000,000) |
Premium and discount amortization on available-for-sale securities and loss on other investments | 53,000,000 | 14,000,000 |
Provisions for loan losses, legal and regulatory proceedings and bad debts | 209,000,000 | 45,000,000 |
Share-based compensation expense | 97,000,000 | 88,000,000 |
Unrealized gain on company-owned life insurance policies, net of expenses | (10,000,000) | (9,000,000) |
Other | 4,000,000 | 31,000,000 |
Net change in: | ||
Securities purchased under agreements to resell, net of securities sold under agreements to repurchase | 226,000,000 | (61,000,000) |
Securities loaned, net of securities borrowed | (287,000,000) | (44,000,000) |
Loans provided to financial advisors, net of repayments | (23,000,000) | (28,000,000) |
Brokerage client receivables and other accounts receivable, net | 126,000,000 | 679,000,000 |
Trading instruments, net | 216,000,000 | (52,000,000) |
Derivative instruments, net | (68,000,000) | (137,000,000) |
Other assets | (64,000,000) | (83,000,000) |
Brokerage client payables and other accounts payable | 1,621,000,000 | (1,300,000,000) |
Accrued compensation, commissions and benefits | (161,000,000) | (99,000,000) |
Proceeds from sales of securitizations and loans held for sale, net of purchases and originations of loans held for sale | 32,000,000 | 27,000,000 |
Net cash provided by/(used in) operating activities | 2,655,000,000 | (101,000,000) |
Cash flows from investing activities: | ||
Additions to property and equipment | (97,000,000) | (102,000,000) |
Increase in bank loans, net | (978,000,000) | (1,226,000,000) |
Proceeds from sales of loans held for investment | 272,000,000 | 210,000,000 |
Purchases of available-for-sale securities | (3,147,000,000) | (689,000,000) |
Available-for-sale securities maturations, repayments and redemptions | 744,000,000 | 456,000,000 |
Proceeds from sales of available-for-sale securities | 222,000,000 | 0 |
Business acquisition, net of cash acquired | (5,000,000) | (5,000,000) |
Other investing activities, net | (31,000,000) | (30,000,000) |
Net cash used in investing activities | (3,020,000,000) | (1,386,000,000) |
Cash flows from financing activities: | ||
Proceeds from short-term borrowings, net | 0 | 50,000,000 |
Proceeds from senior notes issuances, net of debt issuance costs paid | 494,000,000 | 0 |
Exercise of stock options and employee stock purchases | 55,000,000 | 53,000,000 |
Increase in bank deposits | 3,091,000,000 | 2,224,000,000 |
Purchases of treasury stock | (222,000,000) | (616,000,000) |
Dividends on common stock | (154,000,000) | (143,000,000) |
Acquisitions of and distributions to noncontrolling interests, net | (2,000,000) | (54,000,000) |
Net cash provided by financing activities | 3,258,000,000 | 1,510,000,000 |
Currency adjustment: | ||
Effect of exchange rate changes on cash | (27,000,000) | (12,000,000) |
Net increase in cash and cash equivalents and cash and cash equivalents segregated pursuant to regulations | 2,866,000,000 | 11,000,000 |
Cash, cash equivalents, and cash segregated pursuant to regulations at beginning of year | 5,971,000,000 | 5,941,000,000 |
Cash and cash equivalents and cash and cash equivalents segregated pursuant to regulations at end of period | 8,837,000,000 | 5,952,000,000 |
Cash and cash equivalents | 5,632,000,000 | 3,596,000,000 |
Cash and cash equivalents segregated pursuant to regulations | 3,205,000,000 | 2,356,000,000 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | 118,000,000 | 208,000,000 |
Cash paid for income taxes, net | 202,000,000 | 295,000,000 |
RJF Credit Facility | ||
Cash flows from financing activities: | ||
Proceeds from borrowings on the RJF Credit Facility | 0 | 300,000,000 |
Repayments of borrowings on the RJF Credit Facility | 0 | (300,000,000) |
FHLB advances | ||
Cash flows from financing activities: | ||
Proceeds from Federal Home Loan Bank advances | 850,000,000 | 850,000,000 |
Repayments of Federal Home Loan Bank advances and other borrowed funds | $ (854,000,000) | $ (854,000,000) |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 9 Months Ended |
Jun. 30, 2020 | |
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 22 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 (“2019 Form 10-K”) for the year ended September 30, 2019, as filed with the United States (“U.S.”) Securities and Exchange Commission (“SEC”) and in Note 8 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 2019 Form 10-K. To prepare condensed consolidated financial statements in accordance 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 Certain 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, 2020 | |
Accounting Policies [Abstract] | |
UPDATE OF SIGNIFICANT ACCOUNTING POLICIES | UPDATE OF SIGNIFICANT ACCOUNTING POLICIESA summary of our significant accounting policies is included in Note 2 of our 2019 Form 10-K. During the nine months ended June 30, 2020, 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. Recent accounting developments Accounting guidance recently adopted Lease accounting - In February 2016, the Financial Accounting Standards Board (“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. We adopted this guidance as of October 1, 2019 using the alternative modified retrospective approach, with no adjustments to prior periods presented. In addition, we elected the practical expedients permitted under the transition guidance which, among other things, allowed us to carry forward historical lease classification determinations. On the adoption date, we recognized right-of-use assets (“ROU assets”) and lease liabilities of $333 million and $357 million, respectively, in “Other assets” and “Other payables” on our Condensed Consolidated Statements of Financial Condition. The ROU assets and lease liabilities were primarily related to operating leases. The adoption had no effect on our results of operations or cash flows. The impact of the adoption on our regulatory capital measures was insignificant. See Note 10 for further information. Derivatives and hedging (interest rate) - In October 2018, the FASB issued guidance amending Derivatives and Hedging (Topic 815) to add the overnight index swap rate based on the Secured Overnight Financing Rate (“SOFR”) to the list of U.S. benchmark interest rates that are eligible during the early stages of the market transition from the London Interbank Offered Rate (“LIBOR”) to SOFR (ASU 2018-16). The amendments to this guidance will provide adequate lead time for entities to prepare for changes to interest rate hedging strategies. We adopted the guidance October 1, 2019 and will apply the guidance prospectively for qualifying new or re-designated hedging relationships. The adoption did not impact our financial position or results of operations. Reference rate reform - In March 2020, the FASB issued guidance to ease the financial reporting burdens of the expected market transition from LIBOR and other interbank offered rates to alternative reference rates, such as SOFR (ASU 2020-04). The guidance simplifies the accounting for modifying contracts (including those in hedging relationships) that refer to LIBOR and other interbank offered rates. In addition, the guidance allows for changes to the critical terms of a hedging relationship affected by reference rate reform without having to dedesignate the relationship. The guidance was effective upon issuance and generally can be applied through December 31, 2022. We have elected certain expedients for cash flow hedges to assert that the hedged forecasted transaction remains probable, regardless of any expected modification in terms related to reference rate reform. The expedients elected did not impact our financial position or results of operations. Accounting guidance not yet adopted as of June 30, 2020 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. Our cross-functional team continues with the implementation efforts. We are in the process of validating our credit loss models and establishing formal procedures and control documentation related to this new guidance. In addition, we are finalizing required disclosures and policies. We continue to evaluate the impact the adoption of this new guidance will have on our financial position and results of operations. The impact will ultimately depend on, among other things, our methodologies, management judgments, current and expected macroeconomic conditions, and the nature and characteristics of financial assets held by us on the date of adoption. 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 and recognized over the non-cancelable 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, and may be adopted using either a prospective or retrospective approach. We plan to adopt this standard prospectively effective for annual periods beginning October 1, 2020. The impact of this amended guidance is dependent on implementation costs incurred subsequent to adoption. Consolidation (decision making fees) - In October 2018, the FASB issued guidance on how all entities evaluate decision-making fees under the VIE 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. 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. |
FAIR VALUE
FAIR VALUE | 9 Months Ended |
Jun. 30, 2020 | |
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 2019 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 5 for additional information. $ in millions Level 1 Level 2 Level 3 Netting Balance as of June 30, 2020 Assets at fair value on a recurring basis: Trading instruments Municipal and provincial obligations $ 5 $ 77 $ — $ — $ 82 Corporate obligations 6 46 — — 52 Government and agency obligations 16 66 — — 82 Agency mortgage-backed securities (“MBS”) and collateralized mortgage obligations (“CMOs”) — 102 — — 102 Non-agency CMOs and asset-backed securities (“ABS”) — 7 — — 7 Total debt securities 27 298 — — 325 Equity securities 9 — — — 9 Brokered certificates of deposit — 12 — — 12 Other — — 15 — 15 Total trading instruments 36 310 15 — 361 Available-for-sale securities (1) 16 5,614 — — 5,630 Derivative assets Interest rate - matched book — 351 — — 351 Interest rate - other 15 239 — (153) 101 Total derivative assets 15 590 — (153) 452 Other investments - private equity - not measured at net asset value (“NAV”) — — 30 — 30 All other investments 201 1 22 — 224 Subtotal 268 6,515 67 (153) 6,697 Other investments - private equity - measured at NAV 73 Total assets at fair value on a recurring basis $ 268 $ 6,515 $ 67 $ (153) $ 6,770 Liabilities at fair value on a recurring basis: Trading instruments sold but not yet purchased Municipal and provincial obligations $ 1 $ — $ — $ — $ 1 Corporate obligations — 3 — — 3 Government and agency obligations 105 — — — 105 Non-agency CMOs and ABS — 3 — — 3 Total debt securities 106 6 — — 112 Equity securities 42 — — — 42 Total trading instruments sold but not yet purchased 148 6 — — 154 Derivative liabilities Interest rate - matched book — 351 — — 351 Interest rate - other 17 154 — (141) 30 Foreign exchange — 12 — — 12 Other — 1 — — 1 Total derivative liabilities 17 518 — (141) 394 Total liabilities at fair value on a recurring basis $ 165 $ 524 $ — $ (141) $ 548 (1) Substantially all of our available-for-sale securities consist of agency MBS and CMOs. See Note 4 for further information. $ in millions Level 1 Level 2 Level 3 Netting Balance as of September 30, 2019 Assets at fair value on a recurring basis: Trading instruments Municipal and provincial obligations $ — $ 267 $ — $ — $ 267 Corporate obligations 8 95 — — 103 Government and agency obligations 12 67 — — 79 Agency MBS and CMOs — 147 — — 147 Non-agency CMOs and ABS — 51 — — 51 Total debt securities 20 627 — — 647 Equity securities 12 1 — — 13 Brokered certificates of deposit — 45 — — 45 Other — — 3 — 3 Total trading instruments 32 673 3 — 708 Available-for-sale securities (1) 10 3,083 — — 3,093 Derivative assets Interest rate - matched book — 280 — — 280 Interest rate - other 3 182 — (127) 58 Total derivative assets 3 462 — (127) 338 Other investments - private equity - not measured at NAV — — 63 — 63 All other investments 194 1 24 — 219 Subtotal 239 4,219 90 (127) 4,421 Other investments - private equity - measured at NAV 83 Total assets at fair value on a recurring basis $ 239 $ 4,219 $ 90 $ (127) $ 4,504 Liabilities at fair value on a recurring basis: Trading instruments sold but not yet purchased Corporate obligations $ 2 $ 20 $ — $ — $ 22 Government and agency obligations 269 — — — 269 Total debt securities 271 20 — — 291 Equity securities 4 — — — 4 Other — — 1 — 1 Total trading instruments sold but not yet purchased 275 20 1 — 296 Derivative liabilities Interest rate - matched book — 280 — — 280 Interest rate - other 4 142 — (121) 25 Foreign exchange — 2 — — 2 Other — 6 — — 6 Total derivative liabilities 4 430 — (121) 313 Total liabilities at fair value on a recurring basis $ 279 $ 450 $ 1 $ (121) $ 609 (1) Substantially all of our available-for-sale securities consist of agency MBS and CMOs. See Note 4 for further information. 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” and gains/(losses) on other investments are reported in “Other” revenues. Three months ended June 30, 2020 Level 3 instruments at fair value Financial assets Financial liabilities Trading instruments Other investments Trading instruments $ in millions Other Private equity investments All other Other Fair value beginning of period $ 21 $ 30 $ 22 $ — Total gains/(losses) included in earnings (5) — — — Purchases and contributions 11 — — — Sales and distributions (12) — — — Transfers: Into Level 3 — — — — Out of Level 3 — — — — Fair value end of period $ 15 $ 30 $ 22 $ — Unrealized gains/(losses) for the period included in earnings for instruments held at the end of the reporting period $ 2 $ — $ — $ — Nine Months Ended June 30, 2020 Level 3 instruments at fair value Financial assets Financial liabilities Trading instruments Other investments Trading instruments $ in millions Other Private equity investments All other Other Fair value beginning of period $ 3 $ 63 $ 24 $ (1) Total gains/(losses) included in earnings (2) (32) (2) — Purchases and contributions 64 — — 2 Sales and distributions (50) (1) — (1) Transfers: Into Level 3 — — — — Out of Level 3 — — — — Fair value end of period $ 15 $ 30 $ 22 $ — Unrealized gains/(losses) for the period included in earnings for instruments held at the end of the reporting period $ 1 $ (32) $ (2) $ — Three months ended June 30, 2019 Level 3 instruments at fair value Financial assets Financial liabilities Trading instruments Other investments Trading instruments $ in millions Other Private equity investments All other Other Fair value beginning of period $ 2 $ 59 $ 67 $ (7) Total gains/(losses) included in earnings (1) — (2) — Purchases and contributions 26 — — 7 Sales and distributions (26) — — (3) Transfers: Into Level 3 — — — — Out of Level 3 — — — — Fair value end of period $ 1 $ 59 $ 65 $ (3) Unrealized gains/(losses) for the period included in earnings for instruments held at the end of the reporting period $ 1 $ — $ (2) $ — Nine Months Ended June 30, 2019 Level 3 instruments at fair value Financial assets Financial liabilities Trading instruments Other investments Trading instruments $ in millions Other Private equity investments All other 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 and distributions (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) $ — The net unrealized losses on our Level 3 private equity investments for the nine months ended June 30, 2020 were primarily driven by the negative impact of the coronavirus (“COVID-19”) pandemic on certain of our investments. As of June 30, 2020, 15% of our assets and 1% of our liabilities were measured at fair value on a recurring basis. In comparison, as of September 30, 2019, 12% of our assets and 2% of our liabilities were measured at fair value on a recurring basis. As of June 30, 2020 and September 30, 2019, instruments measured at fair value on a recurring basis categorized as Level 3 represented 1% and 2%, respectively, of our assets measured at fair value. Quantitative information about level 3 fair value measurements The following tables present the valuation techniques and significant unobservable inputs used in the valuation of certain of our private equity investments 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 value of the related financial instrument. 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 or new developments become known. Recurring measurements $ in millions Fair value at June 30, 2020 Valuation technique(s) Unobservable input Range Other investments - private equity investments (not measured at NAV) $ 30 Discounted cash flow, transaction price or other investment-specific events Discount rate 25% Terminal earnings before interest, tax, depreciation and amortization (“EBITDA”) multiple 9.0x Terminal year 2021 - 2042 (2024) Fair value at September 30, 2019 Other investments - private equity investments (not measured at NAV) $ 63 Discounted cash flow, transaction price or other investment-specific events Discount rate 25% Terminal EBITDA multiple 12.5x Terminal year 2021 - 2042 (2022) Qualitative information 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 section. 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 would have resulted in a lower fair value measurement. Increases in the terminal EBITDA multiple would have resulted in a higher fair value measurement. Increases in the terminal year are dependent upon each investment’s strategy, but generally result in a lower fair value measurement. Investments in private equity measured at net asset value per share As more fully described in Note 2 of our 2019 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 includes various direct investments, as well as investments in third-party private equity funds and various legacy 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, 2020 Private equity investments measured at NAV $ 73 $ 9 Private equity investments not measured at NAV 30 Total private equity investments $ 103 September 30, 2019 Private equity investments measured at NAV $ 83 $ 15 Private equity investments not measured at NAV 63 Total private equity investments $ 146 Of the total private equity investments, the portions we owned were $81 million and $99 million as of June 30, 2020 and September 30, 2019, respectively. The portions of the private equity investments we did not own were $22 million and $47 million as of June 30, 2020 and September 30, 2019, 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. 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 value of the related financial instrument. $ in millions Level 2 Level 3 Total fair value Valuation technique(s) Unobservable input Range June 30, 2020 Bank loans, net: Impaired loans: residential $ 5 $ 13 $ 18 Discounted cash flow Prepayment rate 7 yrs. - 12 yrs. (10.4 yrs.) Impaired loans: corporate $ — $ 7 $ 7 Collateral or discounted cash flow (1) Not meaningful (1) Not meaningful (1) Loan held for sale $ 21 $ — $ 21 N/A N/A N/A Other assets: other real estate owned $ 1 $ — $ 1 N/A N/A N/A September 30, 2019 Bank loans, net: Impaired loans: residential $ 7 $ 14 $ 21 Discounted cash flow Prepayment rate 7 yrs. - 12 yrs. (10.4 yrs.) Impaired loans: corporate $ — $ 21 $ 21 Collateral or discounted cash flow (1) Not meaningful (1) Not meaningful (1) Loan held for sale $ 66 $ — $ 66 N/A N/A N/A Other assets: other real estate owned $ 1 $ — $ 1 N/A N/A N/A (1) The valuation techniques used for the corporate loans are based on 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 recorded at fair value Many, but not all, of the financial instruments we hold were recorded at fair value on the Condensed Consolidated Statements of Financial Condition. The following table presents the estimated fair value and fair value hierarchy of financial assets and liabilities that are not recorded at fair value in accordance with GAAP on the Condensed Consolidated Statements of Financial Condition at June 30, 2020 and September 30, 2019. This table excludes financial instruments that are carried at amounts which approximate fair value. Refer to Note 4 of our 2019 Form 10-K for a discussion of the fair value hierarchy classification of our financial instruments that are not recorded at fair value. $ in millions Level 2 Level 3 Total estimated fair value Carrying amount June 30, 2020 Financial assets: Bank loans, net $ 65 $ 21,278 $ 21,343 $ 21,177 Financial liabilities: Bank deposits - certificates of deposit $ — $ 1,126 $ 1,126 $ 1,088 Senior notes payable $ 2,413 $ — $ 2,413 $ 2,044 September 30, 2019 Financial assets: Bank loans, net $ 75 $ 20,710 $ 20,785 $ 20,783 Financial liabilities: Bank deposits - certificates of deposit $ — $ 617 $ 617 $ 605 Senior notes payable $ 1,760 $ — $ 1,760 $ 1,550 |
AVAILABLE-FOR-SALE SECURITIES
AVAILABLE-FOR-SALE SECURITIES | 9 Months Ended |
Jun. 30, 2020 | |
Debt Securities, Available-for-sale [Abstract] | |
AVAILABLE-FOR-SALE SECURITIES | AVAILABLE-FOR-SALE SECURITIES Available-for-sale securities are primarily comprised of agency MBS and CMOs owned by Raymond James Bank (“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 2019 Form 10-K. The following table details the amortized cost and fair values of our available-for-sale securities. $ in millions Cost basis Gross Gross Fair value June 30, 2020 Agency residential MBS $ 2,895 $ 69 $ (1) $ 2,963 Agency commercial MBS 570 20 — 590 Agency CMOs 2,032 29 — 2,061 Other securities 15 1 — 16 Total available-for-sale securities $ 5,512 $ 119 $ (1) $ 5,630 September 30, 2019 Agency residential MBS $ 1,555 $ 20 $ (1) $ 1,574 Agency commercial MBS 305 5 — 310 Agency CMOs 1,195 7 (3) 1,199 Other securities 10 — — 10 Total available-for-sale securities $ 3,065 $ 32 $ (4) $ 3,093 See Note 3 for additional information regarding the fair value of available-for-sale securities. The following table details the contractual maturities, amortized costs, 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. As of June 30, 2020, the duration of our available-for-sale securities portfolio was approximately three years. June 30, 2020 $ in millions Within one year After one but After five but After ten years Total Agency residential MBS Amortized cost $ — $ 27 $ 1,130 $ 1,738 $ 2,895 Carrying value $ — $ 28 $ 1,160 $ 1,775 $ 2,963 Agency commercial MBS Amortized cost $ 12 $ 170 $ 285 $ 103 $ 570 Carrying value $ 12 $ 175 $ 298 $ 105 $ 590 Agency CMOs Amortized cost $ — $ 11 $ 81 $ 1,940 $ 2,032 Carrying value $ — $ 11 $ 82 $ 1,968 $ 2,061 Other securities Amortized cost $ — $ 3 $ 12 $ — $ 15 Carrying value $ — $ 4 $ 12 $ — $ 16 Total available-for-sale securities Amortized cost $ 12 $ 211 $ 1,508 $ 3,781 $ 5,512 Carrying value $ 12 $ 218 $ 1,552 $ 3,848 $ 5,630 Weighted-average yield 1.99 % 2.29 % 2.05 % 1.82 % 1.90 % The following table details the gross unrealized losses and fair values 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 Unrealized Estimated Unrealized Estimated Unrealized June 30, 2020 Agency residential MBS $ 284 $ (1) $ — $ — $ 284 $ (1) Agency CMOs 149 — — — 149 — Total $ 433 $ (1) $ — $ — $ 433 $ (1) September 30, 2019 Agency residential MBS $ 166 $ — $ 114 $ (1) $ 280 $ (1) Agency commercial MBS — — 44 — 44 — Agency CMOs 145 (1) 351 (2) 496 (3) Other securities 2 — — — 2 — Total $ 313 $ (1) $ 509 $ (3) $ 822 $ (4) The contractual cash flows of our available-for-sale securities are guaranteed by the U.S. government or its agencies. At June 30, 2020, of the 26 available-for-sale securities in an unrealized loss position, all were in a continuous unrealized loss position for less than 12 months. At June 30, 2020, 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 $3.78 billion and $1.44 billion, respectively, and a fair value of $3.86 billion and $1.47 billion, respectively. During the three and nine months ended June 30, 2020, we received proceeds of $222 million, resulting in an insignificant gain, from sales of available-for-sale securities. The gain from the sales was included in “Other” revenues on our Condensed Consolidated Statements of Income and Comprehensive Income. During the three and nine months ended June 30, 2019, there were no sales of available-for-sale securities. |
DERIVATIVE ASSETS AND DERIVATIV
DERIVATIVE ASSETS AND DERIVATIVE LIABILITIES | 9 Months Ended |
Jun. 30, 2020 | |
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 on 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 2019 Form 10-K. Derivative balances included on 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, 2020 September 30, 2019 $ in millions Derivative assets Derivative liabilities Notional amount Derivative assets Derivative liabilities Notional amount Derivatives not designated as hedging instruments Interest rate - matched book $ 351 $ 351 $ 2,182 $ 280 $ 280 $ 2,296 Interest rate - other (1) 254 171 15,443 184 146 10,690 Foreign exchange — 5 623 — 1 573 Other — 1 516 — 6 272 Subtotal 605 528 18,764 464 433 13,831 Derivatives designated as hedging instruments Interest rate — — 850 1 — 850 Foreign exchange — 7 842 — 1 856 Subtotal — 7 1,692 1 1 1,706 Total gross fair value/notional amount 605 535 $ 20,456 465 434 $ 15,537 Offset on the Condensed Consolidated Statements of Financial Condition Counterparty netting (41) (41) (24) (24) Cash collateral netting (112) (100) (103) (97) Total amounts offset (153) (141) (127) (121) Net amounts presented on the Condensed Consolidated Statements of Financial Condition 452 394 338 313 Gross amounts not offset on the Condensed Consolidated Statements of Financial Condition Financial instruments (2) (373) (351) (297) (280) Total $ 79 $ 43 $ 41 $ 33 (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 accumulated other comprehensive income (“AOCI”), net of income taxes, on derivatives designated as hedging instruments. These gains/(losses) included any amounts reclassified from AOCI to net income during the period. See Note 16 for additional information. Three months ended June 30, Nine months ended June 30, $ in millions 2020 2019 2020 2019 Interest rate (cash flow hedges) $ (4) $ (19) $ (37) $ (49) Foreign exchange (net investment hedges) (21) (12) 18 14 Total gains/(losses) in AOCI, net of taxes $ (25) $ (31) $ (19) $ (35) 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, 2020 and 2019. We expect to reclassify $15 million 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 7 years. The following table details the gains/(losses) on derivatives not designated as hedging instruments recognized on the Condensed Consolidated Statements of Income and Comprehensive Income. $ in millions Three months ended June 30, Nine months ended June 30, Location of gain/(loss) 2020 2019 2020 2019 Interest rate Principal transactions/other revenues $ — $ 2 $ 5 $ 4 Foreign exchange Other revenues $ (19) $ (8) $ 13 $ 14 Other Compensation, commissions and benefits expense $ — $ — $ (1) $ 5 Risks associated with our derivatives and related risk mitigation Credit risk We are exposed to credit losses in the event of nonperformance by the counterparties to 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, which were insignificant as of both June 30, 2020 and September 30, 2019. We are not exposed to market risk on these derivatives due to the pass-through transaction structure described in Note 2 of our 2019 Form 10-K. 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, both for the total portfolio and by maturity period. 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, 2020 and September 30, 2019. |
COLLATERALIZED AGREEMENTS AND F
COLLATERALIZED AGREEMENTS AND FINANCINGS | 9 Months Ended |
Jun. 30, 2020 | |
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 2019 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, 2020 Gross amounts of recognized assets/liabilities $ 193 $ 300 $ 228 $ 88 Gross amounts offset on the Condensed Consolidated Statements of Financial Condition — — — — Net amounts presented on the Condensed Consolidated Statements of Financial Condition 193 300 228 88 Gross amounts not offset on the Condensed Consolidated Statements of Financial Condition (193) (293) (228) (78) Net amounts $ — $ 7 $ — $ 10 September 30, 2019 Gross amounts of recognized assets/liabilities $ 343 $ 248 $ 150 $ 323 Gross amounts offset on the Condensed Consolidated Statements of Financial Condition — — — — Net amounts presented on the Condensed Consolidated Statements of Financial Condition 343 248 150 323 Gross amounts not offset on the Condensed Consolidated Statements of Financial Condition (343) (243) (150) (311) Net amounts $ — $ 5 $ — $ 12 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. 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 to satisfy our collateral requirements under our repurchase agreements, securities lending agreements or other secured borrowings, to satisfy deposit requirements with clearing organizations, or to otherwise meet 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 $ 2,516 $ 2,931 Collateral that we delivered or repledged $ 723 $ 897 Encumbered assets We pledge certain of our assets 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 our assets that have been pledged for one of the purposes previously described. $ in millions June 30, September 30, Had the right to deliver or repledge $ 334 $ 591 Did not have the right to deliver or repledge $ 65 $ 65 Bank loans, net pledged at Federal Home Loan Bank (“FHLB”) and the Federal Reserve Bank (“FRB”) $ 5,352 $ 4,653 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, 2020 Repurchase agreements: Government and agency obligations $ 104 $ — $ — $ — $ 104 Agency MBS and CMOs 124 — — — 124 Total repurchase agreements 228 — — — 228 Securities loaned: Equity securities 88 — — — 88 Total $ 316 $ — $ — $ — $ 316 September 30, 2019 Repurchase agreements: Government and agency obligations $ 70 $ — $ — $ — $ 70 Agency MBS and CMOs 80 — — — 80 Total repurchase agreements 150 — — — 150 Securities loaned: Equity securities 323 — — — 323 Total $ 473 $ — $ — $ — $ 473 As of both June 30, 2020 and September 30, 2019, 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, 2020 | |
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, commercial and residential real estate loans, securities-based loans (“SBL”) and other 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 2019 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, 2020 September 30, 2019 $ in millions Balance % Balance % Loans held for investment: C&I loans $ 7,731 36 % $ 8,098 38 % CRE construction loans 219 1 % 185 1 % CRE loans 3,695 17 % 3,652 17 % Tax-exempt loans 1,290 6 % 1,241 6 % Residential mortgage loans 4,917 23 % 4,454 21 % SBL and other 3,631 17 % 3,349 16 % Total loans held for investment 21,483 20,979 Net unearned income and deferred expenses (12) (12) Total loans held for investment, net 21,471 20,967 Loans held for sale, net 86 — 142 1 % Total loans held for sale and investment 21,557 100 % 21,109 100 % Allowance for loan losses (334) (218) Bank loans, net $ 21,223 $ 20,891 At June 30, 2020, 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 $185 million and $1.33 billion of loans held for sale during the three and nine months ended June 30, 2020, respectively, and $522 million and $1.79 billion during the three and nine months ended June 30, 2019, respectively. Proceeds from the sale of these held for sale loans amounted to $130 million and $564 million during the three and nine months ended June 30, 2020, respectively, and $159 million and $516 million during the three and nine months ended June 30, 2019, respectively. Net gains resulting from such sales were insignificant in all periods during the three and nine months ended June 30, 2020 and 2019. 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, 2020 Purchases $ — $ — $ 113 $ 113 Sales $ 265 $ 27 $ — $ 292 Nine months ended June 30, 2020 Purchases $ 363 $ 5 $ 371 $ 739 Sales $ 285 $ 27 $ — $ 312 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 Sales in the preceding table represent the recorded investment (i.e., net of charge-offs and discounts or premiums) 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 2019 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 90 days or more and accruing Total past due and accruing Nonaccrual Current and accruing Total loans held for investment June 30, 2020 C&I loans $ — $ — $ — $ 1 $ 7,730 $ 7,731 CRE construction loans — — — — 219 219 CRE loans — — — 6 3,689 3,695 Tax-exempt loans — — — — 1,290 1,290 Residential mortgage loans: First mortgage loans 4 — 4 14 4,875 4,893 Home equity loans/lines — — — — 24 24 SBL and other — — — — 3,631 3,631 Total loans held for investment $ 4 $ — $ 4 $ 21 $ 21,458 $ 21,483 September 30, 2019 C&I loans $ — $ — $ — $ 19 $ 8,079 $ 8,098 CRE construction loans — — — — 185 185 CRE loans — — — 8 3,644 3,652 Tax-exempt loans — — — — 1,241 1,241 Residential mortgage loans: First mortgage loans 2 — 2 16 4,409 4,427 Home equity loans/lines — — — — 27 27 SBL and other — — — — 3,349 3,349 Total loans held for investment $ 2 $ — $ 2 $ 43 $ 20,934 $ 20,979 The preceding table includes $6 million and $32 million at June 30, 2020 and September 30, 2019, 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 $2 million and $3 million at June 30, 2020 and September 30, 2019, respectively. The recorded investment in mortgage loans secured by one-to-four family residential properties for which formal foreclosure proceedings were in process was $6 million and $7 million at June 30, 2020 and September 30, 2019, respectively. Impaired loans and troubled debt restructurings The following table provides a summary of RJ Bank’s impaired loans. June 30, 2020 September 30, 2019 $ in millions Gross Unpaid Allowance Gross Unpaid Allowance Impaired loans with allowance for loan losses: C&I loans $ 1 $ 1 $ 1 $ 19 $ 20 $ 6 Residential - first mortgage loans 8 10 1 11 13 1 Total 9 11 2 30 33 7 Impaired loans without allowance for loan losses: CRE loans 7 12 — 8 13 — Residential - first mortgage loans 11 16 — 11 17 — Total 18 28 — 19 30 — Total impaired loans $ 27 $ 39 $ 2 $ 49 $ 63 $ 7 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 CRE and residential first mortgage loans troubled debt restructurings (“TDRs”) of $6 million and $16 million, respectively, at June 30, 2020 and C&I, CRE and residential first mortgage loans TDRs of $19 million, $8 million and $18 million, respectively, at September 30, 2019. The average balance of the total impaired loans was as follows. Three months ended June 30, Nine months ended June 30, $ in millions 2020 2019 2020 2019 C&I loans $ 2 $ 26 $ 10 $ 19 CRE loans 6 10 7 4 Residential - first mortgage loans 19 24 20 25 Total average impaired loan balance $ 27 $ 60 $ 37 $ 48 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 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 our books as an asset, without establishment of a specific valuation allowance or charge-off, is not warranted. We do not have any bank loan balances within this classification because, in accordance with our 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, 2020 C&I loans $ 7,384 $ 281 $ 66 $ — $ 7,731 CRE construction loans 219 — — — 219 CRE loans 3,341 262 92 — 3,695 Tax-exempt loans 1,290 — — — 1,290 Residential mortgage loans: First mortgage loans 4,861 9 23 — 4,893 Home equity loans/lines 24 — — — 24 SBL and other 3,631 — — — 3,631 Total loans held for investment $ 20,750 $ 552 $ 181 $ — $ 21,483 September 30, 2019 C&I loans $ 7,870 $ 152 $ 76 $ — $ 8,098 CRE construction loans 185 — — — 185 CRE loans 3,630 — 22 — 3,652 Tax-exempt loans 1,241 — — — 1,241 Residential mortgage loans: First mortgage loans 4,392 10 25 — 4,427 Home equity loans/lines 27 — — — 27 SBL and other 3,349 — — — 3,349 Total loans held for investment $ 20,694 $ 162 $ 123 $ — $ 20,979 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, 2020 Balance at beginning of period $ 197 $ 3 $ 88 $ 11 $ 18 $ 7 $ 324 Provision/(benefit) for loan losses 59 1 20 2 1 (2) 81 Net (charge-offs)/recoveries: Charge-offs (1) (71) — (2) — — — (73) Recoveries — — — — 1 — 1 Net (charge-offs)/recoveries (71) — (2) — 1 — (72) Foreign exchange translation adjustment 1 — — — — — 1 Balance at end of period $ 186 $ 4 $ 106 $ 13 $ 20 $ 5 $ 334 Nine months ended June 30, 2020 Balance at beginning of period $ 139 $ 3 $ 46 $ 9 $ 16 $ 5 $ 218 Provision for loan losses 118 1 62 4 3 — 188 Net (charge-offs)/recoveries: Charge-offs (1) (71) — (2) — — — (73) Recoveries — — — — 1 — 1 Net (charge-offs)/recoveries (71) — (2) — 1 — (72) Foreign exchange translation adjustment — — — — — — — Balance at end of period $ 186 $ 4 $ 106 $ 13 $ 20 $ 5 $ 334 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 (1) — — — — — — — Recoveries 1 — — — — — 1 Net recoveries 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 (1) (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 (1) Charge-offs related to loan sales amounted $61 million for both the three and nine months ended June 30, 2020 and $2 million for the nine months ended June 30, 2019. 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, 2020 C&I loans $ 1 $ 185 $ 186 $ 1 $ 7,730 $ 7,731 CRE construction loans — 4 4 — 219 219 CRE loans — 106 106 6 3,689 3,695 Tax-exempt loans — 13 13 — 1,290 1,290 Residential mortgage loans 1 19 20 25 4,892 4,917 SBL and other — 5 5 — 3,631 3,631 Total $ 2 $ 332 $ 334 $ 32 $ 21,451 $ 21,483 September 30, 2019 C&I loans $ 6 $ 133 $ 139 $ 19 $ 8,079 $ 8,098 CRE construction loans — 3 3 — 185 185 CRE loans — 46 46 8 3,644 3,652 Tax-exempt loans — 9 9 — 1,241 1,241 Residential mortgage loans 1 15 16 28 4,426 4,454 SBL and other — 5 5 — 3,349 3,349 Total $ 7 $ 211 $ 218 $ 55 $ 20,924 $ 20,979 The reserve for unfunded lending commitments, which is included in “Other payables” on our Condensed Consolidated Statements of Financial Condition, was $11 million and $9 million at June 30, 2020 and September 30, 2019, respectively. |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 9 Months Ended |
Jun. 30, 2020 | |
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 2019 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 portfolio (“Private Equity Interests”), certain Low-Income Housing Tax Credit (“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, 2020 Private Equity Interests $ 33 $ 4 LIHTC funds 246 159 Restricted Stock Trust Fund 19 19 Total $ 298 $ 182 September 30, 2019 Private Equity Interests $ 65 $ 4 LIHTC funds 80 5 Restricted Stock Trust Fund 14 14 Total $ 159 $ 23 The following table presents information about the carrying value of the assets and liabilities of the VIEs which we consolidate and which are included on our Condensed Consolidated Statements of Financial Condition. Intercompany balances are eliminated in consolidation and not reflected in the following table. $ in millions June 30, 2020 September 30, 2019 Assets: Cash, cash equivalents and cash segregated pursuant to regulations $ 7 $ 7 Other investments 32 63 Other assets 240 75 Total assets $ 279 $ 145 Liabilities: Other payables $ 156 $ 4 Total liabilities $ 156 $ 4 Noncontrolling interests $ 50 $ 60 VIEs where we hold a variable interest but are not the primary beneficiary As discussed in Note 2 of our 2019 Form 10-K, we have concluded that for certain VIEs we are not the primary beneficiary and therefore do not consolidate these VIEs. Such VIEs include certain Private Equity Interests, certain LIHTC funds, and other limited partnerships. Our risk of loss for these VIEs is limited to our investments in, advances to, and/or receivables due from these VIEs. 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, 2020 September 30, 2019 $ in millions Aggregate Aggregate Our risk Aggregate Aggregate Our risk Private Equity Interests $ 4,404 $ 107 $ 61 $ 6,317 $ 117 $ 63 LIHTC funds 6,218 1,977 25 6,001 2,221 64 Other 216 130 5 205 115 4 Total $ 10,838 $ 2,214 $ 91 $ 12,523 $ 2,453 $ 131 |
GOODWILL AND IDENTIFIABLE INTAN
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS, NET | 9 Months Ended |
Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS, NET | GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS, NET Our goodwill and identified intangible assets result from various acquisitions. See Notes 2 and 11 of our 2019 Form 10-K for information about our goodwill and intangible assets, including the related accounting policies. 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, 2020 evaluation date, evaluating balances as of December 31, 2019. We performed a qualitative impairment assessment for each of our reporting units that had goodwill, as well as for our indefinite-lived intangible asset. Based upon the outcome of our qualitative assessments, no impairment was identified. Our qualitative assessments consider macroeconomic indicators, such as trends in equity and fixed income markets, gross domestic product, 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. Subsequent to our annual impairment testing, as a result of a deterioration in market conditions due to the COVID-19 pandemic, we performed an evaluation to determine whether the economic impacts resulting from the pandemic were indicators requiring us to perform an impairment test as of June 30, 2020. Multiple factors, including performance, macroeconomic, and fair value indicators, were assessed with respect to each of our reporting units to determine whether it was more likely than not that the estimated fair value of any of these reporting units was less than its estimated carrying value. As a result of our review, we concluded that the fair value of our reporting units had not more likely than not been reduced below their respective carrying values and that the impact of the COVID-19 pandemic through the end of our fiscal third quarter of 2020 was not a triggering event to perform a quantitative test. We will continue to monitor the effects of the COVID-19 pandemic, including market declines, unfavorable economic conditions, declining financial performance, and other factors that could increase the risk of impairment of our goodwill and indefinite-lived intangible asset in future periods. |
LEASES
LEASES | 9 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
LEASES | LEASES We have operating leases for the premises we occupy in many of our U.S. and foreign locations, including our employee-based branch office operations. We also lease certain office and technology equipment. At inception, we determine if an arrangement to utilize a building or piece of equipment is a lease and, if so, the appropriate lease classification. If the arrangement is determined to be a lease, we recognize a ROU asset and a corresponding lease liability on our balance sheet. ROU assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. We have elected the practical expedient, where leases with an initial term of 12 months or less are not recorded as an ROU asset or lease liability. Our lease terms include any noncancelable periods and may reflect periods covered by options to extend or terminate when it is reasonably certain that we will exercise those options. As of June 30, 2020, the weighted-average remaining lease term for our operating leases was five years. We record our operating lease ROU assets at the amount of the lease liability plus any prepaid rent and initial direct costs, less any lease incentives and accrued rent. We record lease liabilities at commencement date based on the present value of lease payments over the lease term, which is discounted using our commencement date incremental borrowing rate. Our incremental borrowing rate considers the weighted-average yields on our senior notes payable, adjusted for collateralization and tenor. As of June 30, 2020, the weighted-average discount rate for our operating leases was 3.84%. Payments that vary because of changes in facts or circumstances occurring after the commencement date are considered variable and are expensed in the period incurred. For our real estate leases, we elected the practical expedient to account for the lease and non-lease components as a single lease. We have not elected the practical expedient for our equipment leases and account for lease and non-lease components separately. As of June 30, 2020, ROU assets of $326 million and lease liabilities of $351 million were included as components of “Other assets” and “Other payables,” respectively, on our Condensed Consolidated Statements of Financial Condition. Lease expense Lease expense for operating lease payments is recognized on a straight-line basis over the lease term if the ROU asset has not been impaired or abandoned. The components of lease expense were as follows. $ in million Three months ended June 30, 2020 Nine months ended June 30, 2020 Operating lease costs $ 25 $ 71 Variable lease costs $ 6 $ 18 Variable lease costs in the preceding table includes payments for common area maintenance charges and other variable costs that are not reflected in the measurement of ROU assets and lease liabilities. Finance leases and sublease income were immaterial for all periods presented. Short-term lease expenses for the three and nine months ended June 30, 2020 were immaterial. Lease liabilities Maturities of lease liabilities as of June 30, 2020 were as follows. Maturity of lease liabilities for fiscal year ended September 30, $ in millions Remainder of 2020 $ 18 2021 102 2022 79 2023 63 2024 46 After 2024 85 Total lease payments 393 Less: interest 42 Present value of lease liabilities $ 351 Operating lease payments in the preceding table exclude $188 million of legally binding minimum lease payments for leases signed but not yet commenced. These leases are estimated to commence between fiscal year 2020 and 2021 with lease terms ranging from five years to 11 years. Statement of cash flows supplemental information $ in millions Three months ended June 30, 2020 Nine months ended June 30, 2020 Cash outflows - lease liabilities $ 26 $ 73 Non-cash - ROU assets recorded for new and modified leases $ 21 $ 60 Minimum future lease commitments (under previous GAAP) As of the date of adoption, our undiscounted minimum annual rental commitments under operating leases were materially unchanged from the disclosure in Note 17 of our 2019 Form 10-K, which is included in the following table. Fiscal year ended September 30, $ in millions 2020 $ 103 2021 95 2022 79 2023 66 2024 49 Thereafter 127 Total $ 519 |
BANK DEPOSITS
BANK DEPOSITS | 9 Months Ended |
Jun. 30, 2020 | |
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, 2020 September 30, 2019 $ in millions Balance Weighted-average rate Balance Weighted-average rate Savings and money market accounts $ 24,106 0.01 % $ 21,654 0.25 % Certificates of deposit 1,088 1.98 % 605 2.33 % NOW accounts 156 1.92 % 6 0.01 % Demand deposits (non-interest-bearing) 22 — 16 — Total $ 25,372 0.11 % $ 22,281 0.31 % Total bank deposits in the preceding table exclude affiliate deposits of $185 million at June 30, 2020 and $163 million at September 30, 2019, all of which were 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, 2020 was approximately $47 million. The following table sets forth the scheduled maturities of certificates of deposit. June 30, 2020 September 30, 2019 $ in millions Denominations Denominations Denominations Denominations Three months or less $ 71 $ 30 $ 24 $ 19 Over three through six months 55 73 26 21 Over six through twelve months 28 22 75 37 Over one through two years 36 198 32 36 Over two through three years 58 149 40 93 Over three through four years 56 156 66 47 Over four through five years 7 149 38 51 Total certificates of deposit $ 311 $ 777 $ 301 $ 304 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 2020 2019 2020 2019 Savings, money market, and NOW accounts $ 2 $ 29 $ 20 $ 96 Certificates of deposit 5 4 15 9 Total interest expense on deposits $ 7 $ 33 $ 35 $ 105 |
OTHER BORROWINGS
OTHER BORROWINGS | 9 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
OTHER BORROWINGS | OTHER BORROWINGS The following table details the components of other borrowings. $ in millions June 30, 2020 September 30, 2019 FHLB advances $ 875 $ 875 Mortgage notes payable and other 15 19 Total other borrowings $ 890 $ 894 FHLB advances Borrowings from the FHLB as of June 30, 2020 and September 30, 2019, were comprised of both floating and fixed-rate advances. As of June 30, 2020 and September 30, 2019, the floating-rate advances totaled $850 million. The interest rates on the floating-rate advances, which mature in December 2022, reset quarterly and are generally based on LIBOR. 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 2 of our 2019 Form 10-K for information regarding these interest rate swaps, which are accounted for as hedging instruments. As of both June 30, 2020 and September 30, 2019, 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, 2020 and September 30, 2019 was 0.50% and 2.17%, respectively. Secured and unsecured financing arrangements On February 19, 2019, RJF and RJ&A entered into an unsecured revolving credit facility agreement (the “Credit Facility”). 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. RJ&A may borrow up to $500 million under the Credit Facility, depending on the amount of outstanding borrowings of RJF. The interest rates on borrowings under the Credit Facility are variable and based on LIBOR, as adjusted for RJF’s credit rating. There were no borrowings outstanding on the Credit Facility as of June 30, 2020. There is a facility fee associated with the Credit Facility, which also varies with RJF’s credit rating. Based upon RJF’s credit rating as of June 30, 2020, the variable rate facility fee, which is applied to the committed amount, was 0.175% per annum. In addition to the Credit Facility, we maintain various secured and unsecured lines of credit, which are generally utilized to finance certain fixed income securities or for cash management purposes. Borrowings during the period were generally day-to-day and there were no borrowings outstanding on these arrangements as of June 30, 2020. The interest rates for these arrangements are variable and are based on the Fed Funds rate, LIBOR, a lenders prime rate, or the Canadian prime rate, as applicable. We also 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 6 for information regarding our other collateralized financing arrangements. Mortgage notes payable and other 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. |
SENIOR NOTES PAYABLE
SENIOR NOTES PAYABLE | 9 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Senior Notes Payable | SENIOR NOTES PAYABLE The following table summarizes our senior notes payable. $ in millions June 30, 2020 September 30, 2019 5.625% senior notes, due 2024 $ 250 $ 250 3.625% senior notes, due 2026 500 500 4.65% senior notes, due 2030 500 — 4.95% senior notes, due 2046 800 800 Total principal amount 2,050 1,550 Unaccreted premium/(discount) 9 11 Unamortized debt issuance costs (15) (11) Total senior notes payable $ 2,044 $ 1,550 In March 2012, we sold in a registered underwritten public offering $250 million in aggregate principal amount of 5.625% senior notes due April 2024. Interest on these senior notes is payable semi-annually. We may redeem some or all of these senior notes at any time prior to their maturity, at a redemption price equal to the greater of (i) 100% of the principal amount of the notes redeemed, or (ii) the sum of the present values of the remaining scheduled payments of principal and interest thereon, discounted to the redemption date at a discount rate equal to a designated U.S. Treasury rate, plus 50 basis points, plus accrued and unpaid interest thereon to the redemption date. In July 2016, we sold in a registered underwritten public offering $500 million in aggregate principal amount of 3.625% senior notes due September 2026. Interest on these senior notes is payable semi-annually. We may redeem some or all of these senior notes at any time prior to their maturity, at a redemption price equal to the greater of (i) 100% of the principal amount of the notes redeemed, or (ii) the sum of the present values of the remaining scheduled payments of principal and interest thereon, discounted to the redemption date at a discount rate equal to a designated U.S. Treasury rate, plus 35 basis points, plus accrued and unpaid interest thereon to the redemption date. In March 2020, we sold in a registered underwritten public offering $500 million in aggregate principal amount of 4.65% senior notes due April 2030. Interest on these senior notes is payable semi-annually. We may redeem some or all of these senior notes at any time prior to January 1, 2030, at a redemption price equal to the greater of (i) 100% of the principal amount of the notes redeemed, or (ii) the sum of the present values of the remaining scheduled payments of principal and interest thereon, discounted to the redemption date at a discount rate equal to a designated U.S. Treasury rate, plus 50 basis points; and on or after January 1, 2030, at 100% of the principal amount of the notes redeemed; plus, in each case, accrued and unpaid interest thereon to the redemption date. In July 2016, we sold in a registered underwritten public offering $300 million in aggregate principal amount of 4.95% senior notes due July 2046. In May 2017, we reopened the offering and sold, in a registered underwritten public offering, an additional $500 million in aggregate principal amount of 4.95% senior notes due July 2046. These additional senior notes were consolidated, formed into a single series, and are fully fungible with the $300 million in aggregate principal amount 4.95% senior notes issued in July 2016. Interest on these senior notes is payable semi-annually. We may redeem some or all of these senior notes at any time prior to their maturity, at a redemption price equal to the greater of (i) 100% of the principal amount of the notes redeemed, or (ii) the sum of the present values of the remaining scheduled payments of principal and interest thereon, discounted to the redemption date at a discount rate equal to a designated U.S. Treasury rate, plus 45 basis points, plus accrued and unpaid interest thereon to the redemption date. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXESThe 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 2019 Form 10-K. Effective tax rate Our effective income tax rate was 23.5% for the nine months ended June 30, 2020, which was lower than the 24.8% effective tax rate for fiscal year 2019. The decrease in the effective tax rate compared to the prior year effective tax rate was primarily due to the favorable impact of permanent tax benefits on lower pre-tax earnings during the nine months ended June 30, 2020. 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, 2020 | |
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 debt and equity underwritings. As of June 30, 2020, we had 11 such open underwriting commitments, which were subsequently settled in open market transactions and none of which resulted in a significant loss. 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 2019 Form 10-K for a discussion of our accounting policies governing these transactions). These offers are contingent upon certain events occurring, including the individuals joining us and meeting certain conditions outlined in their offer. Our unfunded loan commitments related to such offers were insignificant as of June 30, 2020. 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, 2020 September 30, 2019 Open-end consumer lines of credit (primarily SBL) $ 11,397 $ 9,328 Commercial lines of credit $ 1,373 $ 1,527 Unfunded loan commitments $ 592 $ 599 Standby letters of credit $ 30 $ 40 Open-end consumer lines of credit primarily represent the unfunded amounts of RJ Bank loans to consumers that are secured by marketable securities at advance rates consistent with industry standards. The proceeds from repayment or, if necessary, the liquidation of collateral, which is monitored daily, are expected to satisfy the amounts drawn against these existing lines of credit. These lines of credit are primarily uncommitted, as we reserve the right to not make any advances or may terminate these lines at any time. 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 7 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 We had unfunded commitments to various investments, including private equity investments and certain RJ Bank investments, of $38 million as of June 30, 2020. Other commitments Raymond James Tax Credit Funds, Inc. (“RJTCF”) sells investments in project partnerships 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. Until such investments are sold to LIHTC funds, RJTCF is responsible for funding investment commitments to such partnerships. As of June 30, 2020, RJTCF had committed approximately $130 million to project partnerships that had not yet been sold to LIHTC funds. Because we expect to sell these project partnerships to LIHTC funds and the equity funding events arise over future periods, the contractual commitments are not expected to impact our future liquidity requirements. 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 2019 Form 10-K). At June 30, 2020, we had $426 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, 2020, 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. 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 $13 million as of June 30, 2020. The debt, which matures in 2022, 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, among other things, into industry practices, which can also result in the imposition of such sanctions. We may 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. For many legal and regulatory matters, we are unable to estimate a range of reasonably possible loss as 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). Subject to the foregoing, after consultation with counsel, we believe 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. There are certain matters for which we are unable to estimate the upper end of the range of reasonably possible loss. 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, 2020, we estimated the upper end of the range of reasonably possible aggregate loss to be approximately $125 million in excess of the aggregate accruals for such matters. Refer to Note 2 of our 2019 Form 10-K for a discussion of our criteria for recognizing liabilities for contingencies. 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. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) | 9 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) | ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) All of the components of other comprehensive income (“OCI”), net of tax, were attributable to RJF. The following table presents the net change in AOCI 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, 2020 AOCI as of beginning of period $ 149 $ (191) $ (42) $ 83 $ (52) $ (11) OCI: OCI before reclassifications and taxes (29) 32 3 7 (7) 3 Amounts reclassified from AOCI, before tax — — — — 2 2 Pre-tax net OCI (29) 32 3 7 (5) 5 Income tax effect 8 — 8 (2) 1 7 OCI for the period, net of tax (21) 32 11 5 (4) 12 AOCI as of end of period $ 128 $ (159) $ (31) $ 88 $ (56) $ 1 Nine months ended June 30, 2020 AOCI as of beginning of period $ 110 $ (135) $ (25) $ 21 $ (19) $ (23) OCI: OCI before reclassifications and taxes 23 (24) (1) 90 (51) 38 Amounts reclassified from AOCI, before tax — — — — 2 2 Pre-tax net OCI 23 (24) (1) 90 (49) 40 Income tax effect (5) — (5) (23) 12 (16) OCI for the period, net of tax 18 (24) (6) 67 (37) 24 AOCI as of end of period $ 128 $ (159) $ (31) $ 88 $ (56) $ 1 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) As of October 1, 2018, we adopted accounting guidance (ASU 2016-01) that generally requires changes in the fair value of equity securities to be recorded in net income. Accordingly, as of the date of adoption, we reclassified a cumulative unrealized gain on such securities, net of tax, from AOCI to retained earnings. Reclassifications from AOCI to net income, excluding taxes, for the three and nine months ended June 30, 2020 and 2019 were recorded in “Interest expense” on 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 2 of our 2019 Form 10-K and Note 5 for additional information on these derivatives. |
REVENUES
REVENUES | 9 Months Ended |
Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
REVENUES | REVENUES The following tables present our sources of revenues by segment. For further information about our significant accounting policies related to revenue recognition, see Note 2 of our 2019 Form 10-K. See Note 22 of this Form 10-Q for additional information on our segment results. Three months ended June 30, 2020 $ in millions Private Client Group Capital Markets Asset Management RJ Bank Other and intersegment eliminations Total Revenues: Asset management and related administrative fees $ 715 $ 1 $ 157 $ — $ (6) $ 867 Brokerage revenues: Securities commissions: Mutual and other fund products 131 2 2 — (1) 134 Insurance and annuity products 88 — — — — 88 Equities, ETFs and fixed income products 84 37 — — — 121 Subtotal securities commissions 303 39 2 — (1) 343 Principal transactions (1) 16 127 — — — 143 Total brokerage revenues 319 166 2 — (1) 486 Account and services fees: Mutual fund and annuity service fees 82 — 1 — — 83 RJBDP fees 63 1 — — (44) 20 Client account and other fees 32 1 2 — (4) 31 Total account and service fees 177 2 3 — (48) 134 Investment banking: Merger & acquisition and advisory — 60 — — — 60 Equity underwriting 7 35 — — — 42 Debt underwriting — 37 — — — 37 Total investment banking 7 132 — — — 139 Other: Tax credit fund revenues — 20 — — — 20 All other (1) 4 — 1 9 (1) 13 Total other 4 20 1 9 (1) 33 Total non-interest revenues 1,222 321 163 9 (56) 1,659 Interest income (1) 31 4 — 181 1 217 Total revenues 1,253 325 163 190 (55) 1,876 Interest expense (4) (2) — (12) (24) (42) Net revenues $ 1,249 $ 323 $ 163 $ 178 $ (79) $ 1,834 (1) These revenues are generally not in scope of the accounting guidance for revenue from contracts with customers. 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: Merger & acquisition and advisory — 80 — — — 80 Equity underwriting 10 27 — — — 37 Debt underwriting — 22 — — — 22 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 (1) These revenues are generally not in scope of the accounting guidance for revenue from contracts with customers. Nine Months Ended June 30, 2020 $ in millions Private Client Group Capital Markets Asset Management RJ Bank Other and intersegment eliminations Total Revenues: Asset management and related administrative fees $ 2,330 $ 4 $ 510 $ — $ (16) $ 2,828 Brokerage revenues: Securities commissions: Mutual and other fund products 438 6 6 — (2) 448 Insurance and annuity products 288 — — — — 288 Equities, ETFs and fixed income products 274 107 — — (1) 380 Subtotal securities commissions 1,000 113 6 — (3) 1,116 Principal transactions (1) 50 298 — — (3) 345 Total brokerage revenues 1,050 411 6 — (6) 1,461 Account and services fees: Mutual fund and annuity service fees 260 — 2 — (1) 261 RJBDP fees 267 1 — — (139) 129 Client account and other fees 96 4 10 — (16) 94 Total account and service fees 623 5 12 — (156) 484 Investment banking: Merger & acquisition and advisory — 192 — — — 192 Equity underwriting 29 117 — — — 146 Debt underwriting — 90 — — — 90 Total investment banking 29 399 — — — 428 Other: Tax credit fund revenues — 50 — — — 50 All other (1) 20 4 2 20 (49) (3) Total other 20 54 2 20 (49) 47 Total non-interest revenues 4,052 873 530 20 (227) 5,248 Interest income (1) 125 22 1 635 16 799 Total revenues 4,177 895 531 655 (211) 6,047 Interest expense (19) (14) — (51) (52) (136) Net revenues $ 4,158 $ 881 $ 531 $ 604 $ (263) $ 5,911 (1) These revenues are generally not in scope of the accounting guidance for revenue from contracts with customers. 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: Merger & acquisition and advisory — 286 — — — 286 Equity underwriting 25 72 — — — 97 Debt underwriting — 56 — — — 56 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 (1) These revenues are generally not in scope of the accounting guidance for revenue from contracts with customers. At June 30, 2020 and September 30, 2019, net receivables related to contracts with customers were $320 million and $347 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, 2020 and September 30, 2019. We have elected the practical expedient allowable by the accounting 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, 2020 | |
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 2020 2019 2020 2019 Interest income: Assets segregated pursuant to regulations $ 3 $ 14 $ 25 $ 46 Trading instruments 4 7 17 20 Available-for-sale securities 23 18 60 51 Margin loans 18 30 66 93 Bank loans, net of unearned income and deferred expenses 157 221 561 655 Loans to financial advisors 5 5 15 14 Corporate cash and all other 7 26 55 82 Total interest income $ 217 $ 321 $ 799 $ 961 Interest expense: Bank deposits $ 7 $ 33 $ 35 $ 105 Trading instruments sold but not yet purchased 1 2 3 6 Brokerage client payables 3 5 9 16 Other borrowings 5 5 15 16 Senior notes payable 24 19 61 55 Other 2 9 13 23 Total interest expense 42 73 136 221 Net interest income 175 248 663 740 Bank loan loss (provision)/benefit (81) 5 (188) (16) Net interest income after bank loan loss (provision)/benefit $ 94 $ 253 $ 475 $ 724 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, 2020 | |
Share-based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION We have one share-based compensation plan for our employees, Board of Directors and non-employees (independent contractor financial advisors). Generally, we 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 fiscal first quarter of each year. Our share-based compensation accounting policies are described in Note 2 of our 2019 Form 10-K. Other information related to our share-based awards is presented in Note 21 of our 2019 Form 10-K. During the three and nine months ended June 30, 2020, we granted approximately 100 thousand and 1.7 million RSUs, respectively, to employees and outside members of our Board of Directors with a weighted-average grant-date fair value of $64.98 and $87.76, respectively. For the three and nine months ended June 30, 2020, total compensation expense for RSUs granted to our employees and members of our Board of Directors was $22 million and $89 million, respectively, compared with $20 million and $81 million, respectively, for the three and nine months ended June 30, 2019. As of June 30, 2020, there were $196 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, including those granted during the nine months ended June 30, 2020. These costs are expected to be recognized over a weighted-average period of 3.2 years. |
REGULATORY CAPITAL REQUIREMENTS
REGULATORY CAPITAL REQUIREMENTS | 9 Months Ended |
Jun. 30, 2020 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
REGULATORY CAPITAL REQUIREMENTS | REGULATORY CAPITAL REQUIREMENTS RJF, as a bank holding company and financial holding company, RJ Bank, our broker-dealer subsidiaries and Raymond James Trust, N.A. (“RJ Trust”) 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 capital framework, Common equity Tier 1 capital (“CET1”) to risk-weighted assets. RJF and RJ Bank each calculate these ratios under the Basel III standardized approach in order to assess compliance with both regulatory requirements and their internal capital policies. In order to maintain our ability to take certain capital actions, including dividends and common equity repurchases, and to make bonus payments, we must hold a capital conservation buffer above our minimum risk-based capital requirements. As of June 30, 2020, 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 22 of our 2019 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 To be well-capitalized $ in millions Amount Ratio Amount Ratio Amount Ratio RJF as of June 30, 2020: CET1 $ 6,351 24.8 % $ 1,152 4.5 % $ 1,664 6.5 % Tier 1 capital $ 6,351 24.8 % $ 1,536 6.0 % $ 2,047 8.0 % Total capital $ 6,661 26.0 % $ 2,047 8.0 % $ 2,559 10.0 % Tier 1 leverage $ 6,351 14.5 % $ 1,749 4.0 % $ 2,187 5.0 % RJF as of September 30, 2019: CET1 $ 5,971 24.8 % $ 1,085 4.5 % $ 1,567 6.5 % Tier 1 capital $ 5,971 24.8 % $ 1,446 6.0 % $ 1,928 8.0 % Total capital $ 6,207 25.8 % $ 1,928 8.0 % $ 2,410 10.0 % Tier 1 leverage $ 5,971 15.7 % $ 1,525 4.0 % $ 1,906 5.0 % As of June 30, 2020, RJF’s Tier 1 capital ratio was unchanged and our Total capital ratio increased slightly compared to September 30, 2019, due to positive earnings, net of share repurchases and dividends, offset by the impacts of an increase in cash and cash equivalents segregated pursuant to regulations and growth in available-for-sale securities held at RJ Bank. RJF’s Tier 1 leverage ratio at June 30, 2020 decreased compared to September 30, 2019, due to the growth of average assets, primarily related to cash, cash and cash equivalents segregated pursuant to regulations and available-for-sale securities held at RJ Bank, partially offset by the aforementioned change in equity. 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 To be well-capitalized $ in millions Amount Ratio Amount Ratio Amount Ratio RJ Bank as of June 30, 2020: CET1 $ 2,247 12.8 % $ 790 4.5 % $ 1,141 6.5 % Tier 1 capital $ 2,247 12.8 % $ 1,053 6.0 % $ 1,404 8.0 % Total capital $ 2,468 14.1 % $ 1,404 8.0 % $ 1,755 10.0 % Tier 1 leverage $ 2,247 7.6 % $ 1,187 4.0 % $ 1,484 5.0 % RJ Bank as of September 30, 2019: CET1 $ 2,246 13.2 % $ 764 4.5 % $ 1,103 6.5 % Tier 1 capital $ 2,246 13.2 % $ 1,018 6.0 % $ 1,358 8.0 % Total capital $ 2,458 14.5 % $ 1,358 8.0 % $ 1,697 10.0 % Tier 1 leverage $ 2,246 8.8 % $ 1,021 4.0 % $ 1,276 5.0 % RJ Bank’s Tier 1 capital and Total capital ratios at June 30, 2020 decreased compared to September 30, 2019, due to dividends paid during the period exceeding earnings and growth in assets, primarily available-for-sale securities. RJ Bank’s Tier 1 leverage ratio at June 30, 2020 decreased compared to September 30, 2019, due to the growth in average assets, primarily related to cash, available-for-sale securities and bank loans, as well as the aforementioned change in equity. 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, 2020 September 30, 2019 Raymond James & Associates, Inc. : (Alternative Method elected) Net capital as a percent of aggregate debit items 46.1 % 39.7 % Net capital $ 1,183 $ 1,056 Less: required net capital (51) (53) Excess net capital $ 1,132 $ 1,003 As of June 30, 2020, RJFS, RJ Ltd., RJ Trust and 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, 2020 | |
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 2020 2019 2020 2019 Income for basic earnings per common share: Net income $ 172 $ 259 $ 609 $ 769 Less allocation of earnings and dividends to participating securities — (1) (1) (1) Net income attributable to RJF common shareholders $ 172 $ 258 $ 608 $ 768 Income for diluted earnings per common share: Net income $ 172 $ 259 $ 609 $ 769 Less allocation of earnings and dividends to participating securities — (1) (1) (1) Net income attributable to RJF common shareholders $ 172 $ 258 $ 608 $ 768 Common shares: Average common shares in basic computation 137.1 140.4 137.9 141.8 Dilutive effect of outstanding stock options and certain RSUs 2.3 3.2 2.6 3.0 Average common shares used in diluted computation 139.4 143.6 140.5 144.8 Earnings per common share: Basic $ 1.25 $ 1.84 $ 4.41 $ 5.42 Diluted $ 1.23 $ 1.80 $ 4.33 $ 5.30 Stock options and certain RSUs excluded from weighted-average diluted common shares because their effect would be antidilutive 1.8 0.2 1.6 0.5 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, 2020 and 2019. 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, 2020 2019 2020 2019 Dividends per common share - declared $ 0.37 $ 0.34 $ 1.11 $ 1.02 Dividends per common share - paid $ 0.37 $ 0.34 $ 1.08 $ 0.98 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION We currently operate through the following five segments: Private Client Group (“PCG”); Capital Markets; Asset Management; RJ Bank; and Other. The 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 segments, see Note 24 of our 2019 Form 10-K. The following table presents information concerning operations in these segments. Three months ended June 30, Nine months ended June 30, $ in millions 2020 2019 2020 2019 Net revenues: Private Client Group $ 1,249 $ 1,351 $ 4,158 $ 3,978 Capital Markets 323 251 881 781 Asset Management 163 177 531 513 RJ Bank 178 215 604 630 Other (20) (4) (72) (2) Intersegment eliminations (59) (63) (191) (183) Total net revenues $ 1,834 $ 1,927 $ 5,911 $ 5,717 Pre-tax income/(loss): Private Client Group $ 91 $ 140 $ 414 $ 436 Capital Markets 62 24 119 77 Asset Management 60 65 206 184 RJ Bank 14 138 163 384 Other (29) (25) (106) (60) Total pre-tax income $ 198 $ 342 $ 796 $ 1,021 No individual client accounted for more than ten percent of revenues in any of the periods presented. The following table presents our net interest on a segment basis. Three months ended June 30, Nine months ended June 30, $ in millions 2020 2019 2020 2019 Net interest income/(expense): Private Client Group $ 27 $ 46 $ 106 $ 139 Capital Markets 2 — 8 3 Asset Management — 1 1 3 RJ Bank 169 208 584 610 Other and intersegment eliminations (23) (7) (36) (15) Net interest income $ 175 $ 248 $ 663 $ 740 The following table presents our total assets on a segment basis. $ in millions June 30, 2020 September 30, 2019 Total assets: Private Client Group $ 11,655 $ 9,042 Capital Markets 2,301 2,287 Asset Management 367 401 RJ Bank 28,830 25,516 Other 1,529 1,584 Total $ 44,682 $ 38,830 The following table presents goodwill, which was included in our total assets, on a segment basis. $ in millions June 30, 2020 September 30, 2019 Goodwill: Private Client Group $ 276 $ 275 Capital Markets 120 120 Asset Management 69 69 Total $ 465 $ 464 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 net revenues and pre-tax income classified by major geographic area in which they were earned. Three months ended June 30, Nine months ended June 30, $ in millions 2020 2019 2020 2019 Net revenues: U.S. $ 1,706 $ 1,793 $ 5,501 $ 5,318 Canada 86 101 293 290 Europe 42 33 117 109 Total $ 1,834 $ 1,927 $ 5,911 $ 5,717 Pre-tax income/(loss): U.S. $ 191 $ 330 $ 770 $ 994 Canada 5 12 26 35 Europe (1) 2 — — (8) Total $ 198 $ 342 $ 796 $ 1,021 (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 fiscal first quarter of 2019. The following table presents our total assets by major geographic area in which they were held. $ in millions June 30, 2020 September 30, 2019 Total assets: U.S. $ 41,459 $ 35,978 Canada 3,099 2,754 Europe 124 98 Total $ 44,682 $ 38,830 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, 2020 September 30, 2019 Goodwill: U.S. $ 433 $ 433 Canada 24 23 Europe 8 8 Total $ 465 $ 464 |
UPDATE OF SIGNIFICANT ACCOUNT_2
UPDATE OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Jun. 30, 2020 | |
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 (“2019 Form 10-K”) for the year ended September 30, 2019, as filed with the United States (“U.S.”) Securities and Exchange Commission (“SEC”) and in Note 8 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 2019 Form 10-K. To prepare condensed consolidated financial statements in accordance 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 Certain prior period amounts have been reclassified to conform to the current period’s presentation. |
Recent accounting developments | Recent accounting developments Accounting guidance recently adopted Lease accounting - In February 2016, the Financial Accounting Standards Board (“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. We adopted this guidance as of October 1, 2019 using the alternative modified retrospective approach, with no adjustments to prior periods presented. In addition, we elected the practical expedients permitted under the transition guidance which, among other things, allowed us to carry forward historical lease classification determinations. On the adoption date, we recognized right-of-use assets (“ROU assets”) and lease liabilities of $333 million and $357 million, respectively, in “Other assets” and “Other payables” on our Condensed Consolidated Statements of Financial Condition. The ROU assets and lease liabilities were primarily related to operating leases. The adoption had no effect on our results of operations or cash flows. The impact of the adoption on our regulatory capital measures was insignificant. See Note 10 for further information. Derivatives and hedging (interest rate) - In October 2018, the FASB issued guidance amending Derivatives and Hedging (Topic 815) to add the overnight index swap rate based on the Secured Overnight Financing Rate (“SOFR”) to the list of U.S. benchmark interest rates that are eligible during the early stages of the market transition from the London Interbank Offered Rate (“LIBOR”) to SOFR (ASU 2018-16). The amendments to this guidance will provide adequate lead time for entities to prepare for changes to interest rate hedging strategies. We adopted the guidance October 1, 2019 and will apply the guidance prospectively for qualifying new or re-designated hedging relationships. The adoption did not impact our financial position or results of operations. Reference rate reform - In March 2020, the FASB issued guidance to ease the financial reporting burdens of the expected market transition from LIBOR and other interbank offered rates to alternative reference rates, such as SOFR (ASU 2020-04). The guidance simplifies the accounting for modifying contracts (including those in hedging relationships) that refer to LIBOR and other interbank offered rates. In addition, the guidance allows for changes to the critical terms of a hedging relationship affected by reference rate reform without having to dedesignate the relationship. The guidance was effective upon issuance and generally can be applied through December 31, 2022. We have elected certain expedients for cash flow hedges to assert that the hedged forecasted transaction remains probable, regardless of any expected modification in terms related to reference rate reform. The expedients elected did not impact our financial position or results of operations. Accounting guidance not yet adopted as of June 30, 2020 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. Our cross-functional team continues with the implementation efforts. We are in the process of validating our credit loss models and establishing formal procedures and control documentation related to this new guidance. In addition, we are finalizing required disclosures and policies. We continue to evaluate the impact the adoption of this new guidance will have on our financial position and results of operations. The impact will ultimately depend on, among other things, our methodologies, management judgments, current and expected macroeconomic conditions, and the nature and characteristics of financial assets held by us on the date of adoption. 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 and recognized over the non-cancelable 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, and may be adopted using either a prospective or retrospective approach. We plan to adopt this standard prospectively effective for annual periods beginning October 1, 2020. The impact of this amended guidance is dependent on implementation costs incurred subsequent to adoption. Consolidation (decision making fees) - In October 2018, the FASB issued guidance on how all entities evaluate decision-making fees under the VIE 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. 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. |
Leases | We have operating leases for the premises we occupy in many of our U.S. and foreign locations, including our employee-based branch office operations. We also lease certain office and technology equipment. At inception, we determine if an arrangement to utilize a building or piece of equipment is a lease and, if so, the appropriate lease classification. If the arrangement is determined to be a lease, we recognize a ROU asset and a corresponding lease liability on our balance sheet. ROU assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. We have elected the practical expedient, where leases with an initial term of 12 months or less are not recorded as an ROU asset or lease liability. Our lease terms include any noncancelable periods and may reflect periods covered by options to extend or terminate when it is reasonably certain that we will exercise those options. As of June 30, 2020, the weighted-average remaining lease term for our operating leases was five years. We record our operating lease ROU assets at the amount of the lease liability plus any prepaid rent and initial direct costs, less any lease incentives and accrued rent. We record lease liabilities at commencement date based on the present value of lease payments over the lease term, which is discounted using our commencement date incremental borrowing rate. Our incremental borrowing rate considers the weighted-average yields on our senior notes payable, adjusted for collateralization and tenor. As of June 30, 2020, the weighted-average discount rate for our operating leases was 3.84%. Payments that vary because of changes in facts or circumstances occurring after the commencement date are considered variable and are expensed in the period incurred. For our real estate leases, we elected the practical expedient to account for the lease and non-lease components as a single lease. We have not elected the practical expedient for our equipment leases and account for lease and non-lease components separately. As of June 30, 2020, ROU assets of $326 million and lease liabilities of $351 million were included as components of “Other assets” and “Other payables,” respectively, on our Condensed Consolidated Statements of Financial Condition. Lease expense Lease expense for operating lease payments is recognized on a straight-line basis over the lease term if the ROU asset has not been impaired or abandoned. |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
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 5 for additional information. $ in millions Level 1 Level 2 Level 3 Netting Balance as of June 30, 2020 Assets at fair value on a recurring basis: Trading instruments Municipal and provincial obligations $ 5 $ 77 $ — $ — $ 82 Corporate obligations 6 46 — — 52 Government and agency obligations 16 66 — — 82 Agency mortgage-backed securities (“MBS”) and collateralized mortgage obligations (“CMOs”) — 102 — — 102 Non-agency CMOs and asset-backed securities (“ABS”) — 7 — — 7 Total debt securities 27 298 — — 325 Equity securities 9 — — — 9 Brokered certificates of deposit — 12 — — 12 Other — — 15 — 15 Total trading instruments 36 310 15 — 361 Available-for-sale securities (1) 16 5,614 — — 5,630 Derivative assets Interest rate - matched book — 351 — — 351 Interest rate - other 15 239 — (153) 101 Total derivative assets 15 590 — (153) 452 Other investments - private equity - not measured at net asset value (“NAV”) — — 30 — 30 All other investments 201 1 22 — 224 Subtotal 268 6,515 67 (153) 6,697 Other investments - private equity - measured at NAV 73 Total assets at fair value on a recurring basis $ 268 $ 6,515 $ 67 $ (153) $ 6,770 Liabilities at fair value on a recurring basis: Trading instruments sold but not yet purchased Municipal and provincial obligations $ 1 $ — $ — $ — $ 1 Corporate obligations — 3 — — 3 Government and agency obligations 105 — — — 105 Non-agency CMOs and ABS — 3 — — 3 Total debt securities 106 6 — — 112 Equity securities 42 — — — 42 Total trading instruments sold but not yet purchased 148 6 — — 154 Derivative liabilities Interest rate - matched book — 351 — — 351 Interest rate - other 17 154 — (141) 30 Foreign exchange — 12 — — 12 Other — 1 — — 1 Total derivative liabilities 17 518 — (141) 394 Total liabilities at fair value on a recurring basis $ 165 $ 524 $ — $ (141) $ 548 (1) Substantially all of our available-for-sale securities consist of agency MBS and CMOs. See Note 4 for further information. $ in millions Level 1 Level 2 Level 3 Netting Balance as of September 30, 2019 Assets at fair value on a recurring basis: Trading instruments Municipal and provincial obligations $ — $ 267 $ — $ — $ 267 Corporate obligations 8 95 — — 103 Government and agency obligations 12 67 — — 79 Agency MBS and CMOs — 147 — — 147 Non-agency CMOs and ABS — 51 — — 51 Total debt securities 20 627 — — 647 Equity securities 12 1 — — 13 Brokered certificates of deposit — 45 — — 45 Other — — 3 — 3 Total trading instruments 32 673 3 — 708 Available-for-sale securities (1) 10 3,083 — — 3,093 Derivative assets Interest rate - matched book — 280 — — 280 Interest rate - other 3 182 — (127) 58 Total derivative assets 3 462 — (127) 338 Other investments - private equity - not measured at NAV — — 63 — 63 All other investments 194 1 24 — 219 Subtotal 239 4,219 90 (127) 4,421 Other investments - private equity - measured at NAV 83 Total assets at fair value on a recurring basis $ 239 $ 4,219 $ 90 $ (127) $ 4,504 Liabilities at fair value on a recurring basis: Trading instruments sold but not yet purchased Corporate obligations $ 2 $ 20 $ — $ — $ 22 Government and agency obligations 269 — — — 269 Total debt securities 271 20 — — 291 Equity securities 4 — — — 4 Other — — 1 — 1 Total trading instruments sold but not yet purchased 275 20 1 — 296 Derivative liabilities Interest rate - matched book — 280 — — 280 Interest rate - other 4 142 — (121) 25 Foreign exchange — 2 — — 2 Other — 6 — — 6 Total derivative liabilities 4 430 — (121) 313 Total liabilities at fair value on a recurring basis $ 279 $ 450 $ 1 $ (121) $ 609 (1) Substantially all of our available-for-sale securities consist of agency MBS and CMOs. See Note 4 for further information. |
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” and gains/(losses) on other investments are reported in “Other” revenues. Three months ended June 30, 2020 Level 3 instruments at fair value Financial assets Financial liabilities Trading instruments Other investments Trading instruments $ in millions Other Private equity investments All other Other Fair value beginning of period $ 21 $ 30 $ 22 $ — Total gains/(losses) included in earnings (5) — — — Purchases and contributions 11 — — — Sales and distributions (12) — — — Transfers: Into Level 3 — — — — Out of Level 3 — — — — Fair value end of period $ 15 $ 30 $ 22 $ — Unrealized gains/(losses) for the period included in earnings for instruments held at the end of the reporting period $ 2 $ — $ — $ — Nine Months Ended June 30, 2020 Level 3 instruments at fair value Financial assets Financial liabilities Trading instruments Other investments Trading instruments $ in millions Other Private equity investments All other Other Fair value beginning of period $ 3 $ 63 $ 24 $ (1) Total gains/(losses) included in earnings (2) (32) (2) — Purchases and contributions 64 — — 2 Sales and distributions (50) (1) — (1) Transfers: Into Level 3 — — — — Out of Level 3 — — — — Fair value end of period $ 15 $ 30 $ 22 $ — Unrealized gains/(losses) for the period included in earnings for instruments held at the end of the reporting period $ 1 $ (32) $ (2) $ — Three months ended June 30, 2019 Level 3 instruments at fair value Financial assets Financial liabilities Trading instruments Other investments Trading instruments $ in millions Other Private equity investments All other Other Fair value beginning of period $ 2 $ 59 $ 67 $ (7) Total gains/(losses) included in earnings (1) — (2) — Purchases and contributions 26 — — 7 Sales and distributions (26) — — (3) Transfers: Into Level 3 — — — — Out of Level 3 — — — — Fair value end of period $ 1 $ 59 $ 65 $ (3) Unrealized gains/(losses) for the period included in earnings for instruments held at the end of the reporting period $ 1 $ — $ (2) $ — Nine Months Ended June 30, 2019 Level 3 instruments at fair value Financial assets Financial liabilities Trading instruments Other investments Trading instruments $ in millions Other Private equity investments All other 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 and distributions (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) $ — |
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 certain of our private equity investments 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 value of the related financial instrument. 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 or new developments become known. Recurring measurements $ in millions Fair value at June 30, 2020 Valuation technique(s) Unobservable input Range Other investments - private equity investments (not measured at NAV) $ 30 Discounted cash flow, transaction price or other investment-specific events Discount rate 25% Terminal earnings before interest, tax, depreciation and amortization (“EBITDA”) multiple 9.0x Terminal year 2021 - 2042 (2024) Fair value at September 30, 2019 Other investments - private equity investments (not measured at NAV) $ 63 Discounted cash flow, transaction price or other investment-specific events Discount rate 25% Terminal EBITDA multiple 12.5x Terminal year 2021 - 2042 (2022) |
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, 2020 Private equity investments measured at NAV $ 73 $ 9 Private equity investments not measured at NAV 30 Total private equity investments $ 103 September 30, 2019 Private equity investments measured at NAV $ 83 $ 15 Private equity investments not measured at NAV 63 Total private equity investments $ 146 |
Fair Value Measurements, Nonrecurring | 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 value of the related financial instrument. $ in millions Level 2 Level 3 Total fair value Valuation technique(s) Unobservable input Range June 30, 2020 Bank loans, net: Impaired loans: residential $ 5 $ 13 $ 18 Discounted cash flow Prepayment rate 7 yrs. - 12 yrs. (10.4 yrs.) Impaired loans: corporate $ — $ 7 $ 7 Collateral or discounted cash flow (1) Not meaningful (1) Not meaningful (1) Loan held for sale $ 21 $ — $ 21 N/A N/A N/A Other assets: other real estate owned $ 1 $ — $ 1 N/A N/A N/A September 30, 2019 Bank loans, net: Impaired loans: residential $ 7 $ 14 $ 21 Discounted cash flow Prepayment rate 7 yrs. - 12 yrs. (10.4 yrs.) Impaired loans: corporate $ — $ 21 $ 21 Collateral or discounted cash flow (1) Not meaningful (1) Not meaningful (1) Loan held for sale $ 66 $ — $ 66 N/A N/A N/A Other assets: other real estate owned $ 1 $ — $ 1 N/A N/A N/A (1) The valuation techniques used for the corporate loans are based on collateral value less selling costs for the collateral dependent loans and discounted cash flows for impaired loans that are not collateral dependent. |
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 in accordance with GAAP on the Condensed Consolidated Statements of Financial Condition at June 30, 2020 and September 30, 2019. This table excludes financial instruments that are carried at amounts which approximate fair value. Refer to Note 4 of our 2019 Form 10-K for a discussion of the fair value hierarchy classification of our financial instruments that are not recorded at fair value. $ in millions Level 2 Level 3 Total estimated fair value Carrying amount June 30, 2020 Financial assets: Bank loans, net $ 65 $ 21,278 $ 21,343 $ 21,177 Financial liabilities: Bank deposits - certificates of deposit $ — $ 1,126 $ 1,126 $ 1,088 Senior notes payable $ 2,413 $ — $ 2,413 $ 2,044 September 30, 2019 Financial assets: Bank loans, net $ 75 $ 20,710 $ 20,785 $ 20,783 Financial liabilities: Bank deposits - certificates of deposit $ — $ 617 $ 617 $ 605 Senior notes payable $ 1,760 $ — $ 1,760 $ 1,550 |
AVAILABLE-FOR-SALE SECURITIES (
AVAILABLE-FOR-SALE SECURITIES (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
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 Gross Fair value June 30, 2020 Agency residential MBS $ 2,895 $ 69 $ (1) $ 2,963 Agency commercial MBS 570 20 — 590 Agency CMOs 2,032 29 — 2,061 Other securities 15 1 — 16 Total available-for-sale securities $ 5,512 $ 119 $ (1) $ 5,630 September 30, 2019 Agency residential MBS $ 1,555 $ 20 $ (1) $ 1,574 Agency commercial MBS 305 5 — 310 Agency CMOs 1,195 7 (3) 1,199 Other securities 10 — — 10 Total available-for-sale securities $ 3,065 $ 32 $ (4) $ 3,093 |
Contractual Maturities, Amortized Cost, Carrying Values, and Current Yields for Available-For-Sales Securities | The following table details the contractual maturities, amortized costs, 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. As of June 30, 2020, the duration of our available-for-sale securities portfolio was approximately three years. June 30, 2020 $ in millions Within one year After one but After five but After ten years Total Agency residential MBS Amortized cost $ — $ 27 $ 1,130 $ 1,738 $ 2,895 Carrying value $ — $ 28 $ 1,160 $ 1,775 $ 2,963 Agency commercial MBS Amortized cost $ 12 $ 170 $ 285 $ 103 $ 570 Carrying value $ 12 $ 175 $ 298 $ 105 $ 590 Agency CMOs Amortized cost $ — $ 11 $ 81 $ 1,940 $ 2,032 Carrying value $ — $ 11 $ 82 $ 1,968 $ 2,061 Other securities Amortized cost $ — $ 3 $ 12 $ — $ 15 Carrying value $ — $ 4 $ 12 $ — $ 16 Total available-for-sale securities Amortized cost $ 12 $ 211 $ 1,508 $ 3,781 $ 5,512 Carrying value $ 12 $ 218 $ 1,552 $ 3,848 $ 5,630 Weighted-average yield 1.99 % 2.29 % 2.05 % 1.82 % 1.90 % |
Available-For-Sale Securities in a Continuous Unrealized Loss Position | The following table details the gross unrealized losses and fair values 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 Unrealized Estimated Unrealized Estimated Unrealized June 30, 2020 Agency residential MBS $ 284 $ (1) $ — $ — $ 284 $ (1) Agency CMOs 149 — — — 149 — Total $ 433 $ (1) $ — $ — $ 433 $ (1) September 30, 2019 Agency residential MBS $ 166 $ — $ 114 $ (1) $ 280 $ (1) Agency commercial MBS — — 44 — 44 — Agency CMOs 145 (1) 351 (2) 496 (3) Other securities 2 — — — 2 — Total $ 313 $ (1) $ 509 $ (3) $ 822 $ (4) |
DERIVATIVE ASSETS AND DERIVAT_2
DERIVATIVE ASSETS AND DERIVATIVE LIABILITIES (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
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, 2020 September 30, 2019 $ in millions Derivative assets Derivative liabilities Notional amount Derivative assets Derivative liabilities Notional amount Derivatives not designated as hedging instruments Interest rate - matched book $ 351 $ 351 $ 2,182 $ 280 $ 280 $ 2,296 Interest rate - other (1) 254 171 15,443 184 146 10,690 Foreign exchange — 5 623 — 1 573 Other — 1 516 — 6 272 Subtotal 605 528 18,764 464 433 13,831 Derivatives designated as hedging instruments Interest rate — — 850 1 — 850 Foreign exchange — 7 842 — 1 856 Subtotal — 7 1,692 1 1 1,706 Total gross fair value/notional amount 605 535 $ 20,456 465 434 $ 15,537 Offset on the Condensed Consolidated Statements of Financial Condition Counterparty netting (41) (41) (24) (24) Cash collateral netting (112) (100) (103) (97) Total amounts offset (153) (141) (127) (121) Net amounts presented on the Condensed Consolidated Statements of Financial Condition 452 394 338 313 Gross amounts not offset on the Condensed Consolidated Statements of Financial Condition Financial instruments (2) (373) (351) (297) (280) Total $ 79 $ 43 $ 41 $ 33 (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, 2020 September 30, 2019 $ in millions Derivative assets Derivative liabilities Notional amount Derivative assets Derivative liabilities Notional amount Derivatives not designated as hedging instruments Interest rate - matched book $ 351 $ 351 $ 2,182 $ 280 $ 280 $ 2,296 Interest rate - other (1) 254 171 15,443 184 146 10,690 Foreign exchange — 5 623 — 1 573 Other — 1 516 — 6 272 Subtotal 605 528 18,764 464 433 13,831 Derivatives designated as hedging instruments Interest rate — — 850 1 — 850 Foreign exchange — 7 842 — 1 856 Subtotal — 7 1,692 1 1 1,706 Total gross fair value/notional amount 605 535 $ 20,456 465 434 $ 15,537 Offset on the Condensed Consolidated Statements of Financial Condition Counterparty netting (41) (41) (24) (24) Cash collateral netting (112) (100) (103) (97) Total amounts offset (153) (141) (127) (121) Net amounts presented on the Condensed Consolidated Statements of Financial Condition 452 394 338 313 Gross amounts not offset on the Condensed Consolidated Statements of Financial Condition Financial instruments (2) (373) (351) (297) (280) Total $ 79 $ 43 $ 41 $ 33 (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 Net Investment Hedges in Accumulated Other Comprehensive Income (Loss) | The following table details the gains/(losses) included in accumulated other comprehensive income (“AOCI”), net of income taxes, on derivatives designated as hedging instruments. These gains/(losses) included any amounts reclassified from AOCI to net income during the period. See Note 16 for additional information. Three months ended June 30, Nine months ended June 30, $ in millions 2020 2019 2020 2019 Interest rate (cash flow hedges) $ (4) $ (19) $ (37) $ (49) Foreign exchange (net investment hedges) (21) (12) 18 14 Total gains/(losses) in AOCI, net of taxes $ (25) $ (31) $ (19) $ (35) |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The following table details the gains/(losses) included in accumulated other comprehensive income (“AOCI”), net of income taxes, on derivatives designated as hedging instruments. These gains/(losses) included any amounts reclassified from AOCI to net income during the period. See Note 16 for additional information. Three months ended June 30, Nine months ended June 30, $ in millions 2020 2019 2020 2019 Interest rate (cash flow hedges) $ (4) $ (19) $ (37) $ (49) Foreign exchange (net investment hedges) (21) (12) 18 14 Total gains/(losses) in AOCI, net of taxes $ (25) $ (31) $ (19) $ (35) |
Amount of Gain (Loss) on Derivatives Recognized in Income | The following table details the gains/(losses) on derivatives not designated as hedging instruments recognized on the Condensed Consolidated Statements of Income and Comprehensive Income. $ in millions Three months ended June 30, Nine months ended June 30, Location of gain/(loss) 2020 2019 2020 2019 Interest rate Principal transactions/other revenues $ — $ 2 $ 5 $ 4 Foreign exchange Other revenues $ (19) $ (8) $ 13 $ 14 Other Compensation, commissions and benefits expense $ — $ — $ (1) $ 5 |
COLLATERALIZED AGREEMENTS AND_2
COLLATERALIZED AGREEMENTS AND FINANCINGS (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
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, 2020 Gross amounts of recognized assets/liabilities $ 193 $ 300 $ 228 $ 88 Gross amounts offset on the Condensed Consolidated Statements of Financial Condition — — — — Net amounts presented on the Condensed Consolidated Statements of Financial Condition 193 300 228 88 Gross amounts not offset on the Condensed Consolidated Statements of Financial Condition (193) (293) (228) (78) Net amounts $ — $ 7 $ — $ 10 September 30, 2019 Gross amounts of recognized assets/liabilities $ 343 $ 248 $ 150 $ 323 Gross amounts offset on the Condensed Consolidated Statements of Financial Condition — — — — Net amounts presented on the Condensed Consolidated Statements of Financial Condition 343 248 150 323 Gross amounts not offset on the Condensed Consolidated Statements of Financial Condition (343) (243) (150) (311) Net amounts $ — $ 5 $ — $ 12 |
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, 2020 Gross amounts of recognized assets/liabilities $ 193 $ 300 $ 228 $ 88 Gross amounts offset on the Condensed Consolidated Statements of Financial Condition — — — — Net amounts presented on the Condensed Consolidated Statements of Financial Condition 193 300 228 88 Gross amounts not offset on the Condensed Consolidated Statements of Financial Condition (193) (293) (228) (78) Net amounts $ — $ 7 $ — $ 10 September 30, 2019 Gross amounts of recognized assets/liabilities $ 343 $ 248 $ 150 $ 323 Gross amounts offset on the Condensed Consolidated Statements of Financial Condition — — — — Net amounts presented on the Condensed Consolidated Statements of Financial Condition 343 248 150 323 Gross amounts not offset on the Condensed Consolidated Statements of Financial Condition (343) (243) (150) (311) Net amounts $ — $ 5 $ — $ 12 |
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 $ 2,516 $ 2,931 Collateral that we delivered or repledged $ 723 $ 897 |
Encumbered assets | The following table presents information about our assets that have been pledged for one of the purposes previously described. $ in millions June 30, September 30, Had the right to deliver or repledge $ 334 $ 591 Did not have the right to deliver or repledge $ 65 $ 65 Bank loans, net pledged at Federal Home Loan Bank (“FHLB”) and the Federal Reserve Bank (“FRB”) $ 5,352 $ 4,653 |
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, 2020 Repurchase agreements: Government and agency obligations $ 104 $ — $ — $ — $ 104 Agency MBS and CMOs 124 — — — 124 Total repurchase agreements 228 — — — 228 Securities loaned: Equity securities 88 — — — 88 Total $ 316 $ — $ — $ — $ 316 September 30, 2019 Repurchase agreements: Government and agency obligations $ 70 $ — $ — $ — $ 70 Agency MBS and CMOs 80 — — — 80 Total repurchase agreements 150 — — — 150 Securities loaned: Equity securities 323 — — — 323 Total $ 473 $ — $ — $ — $ 473 |
BANK LOANS, NET (Tables)
BANK LOANS, NET (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
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, 2020 September 30, 2019 $ in millions Balance % Balance % Loans held for investment: C&I loans $ 7,731 36 % $ 8,098 38 % CRE construction loans 219 1 % 185 1 % CRE loans 3,695 17 % 3,652 17 % Tax-exempt loans 1,290 6 % 1,241 6 % Residential mortgage loans 4,917 23 % 4,454 21 % SBL and other 3,631 17 % 3,349 16 % Total loans held for investment 21,483 20,979 Net unearned income and deferred expenses (12) (12) Total loans held for investment, net 21,471 20,967 Loans held for sale, net 86 — 142 1 % Total loans held for sale and investment 21,557 100 % 21,109 100 % Allowance for loan losses (334) (218) Bank loans, net $ 21,223 $ 20,891 |
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, 2020 Purchases $ — $ — $ 113 $ 113 Sales $ 265 $ 27 $ — $ 292 Nine months ended June 30, 2020 Purchases $ 363 $ 5 $ 371 $ 739 Sales $ 285 $ 27 $ — $ 312 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 |
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 90 days or more and accruing Total past due and accruing Nonaccrual Current and accruing Total loans held for investment June 30, 2020 C&I loans $ — $ — $ — $ 1 $ 7,730 $ 7,731 CRE construction loans — — — — 219 219 CRE loans — — — 6 3,689 3,695 Tax-exempt loans — — — — 1,290 1,290 Residential mortgage loans: First mortgage loans 4 — 4 14 4,875 4,893 Home equity loans/lines — — — — 24 24 SBL and other — — — — 3,631 3,631 Total loans held for investment $ 4 $ — $ 4 $ 21 $ 21,458 $ 21,483 September 30, 2019 C&I loans $ — $ — $ — $ 19 $ 8,079 $ 8,098 CRE construction loans — — — — 185 185 CRE loans — — — 8 3,644 3,652 Tax-exempt loans — — — — 1,241 1,241 Residential mortgage loans: First mortgage loans 2 — 2 16 4,409 4,427 Home equity loans/lines — — — — 27 27 SBL and other — — — — 3,349 3,349 Total loans held for investment $ 2 $ — $ 2 $ 43 $ 20,934 $ 20,979 |
Summary of Impaired Loans | The following table provides a summary of RJ Bank’s impaired loans. June 30, 2020 September 30, 2019 $ in millions Gross Unpaid Allowance Gross Unpaid Allowance Impaired loans with allowance for loan losses: C&I loans $ 1 $ 1 $ 1 $ 19 $ 20 $ 6 Residential - first mortgage loans 8 10 1 11 13 1 Total 9 11 2 30 33 7 Impaired loans without allowance for loan losses: CRE loans 7 12 — 8 13 — Residential - first mortgage loans 11 16 — 11 17 — Total 18 28 — 19 30 — Total impaired loans $ 27 $ 39 $ 2 $ 49 $ 63 $ 7 |
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 2020 2019 2020 2019 C&I loans $ 2 $ 26 $ 10 $ 19 CRE loans 6 10 7 4 Residential - first mortgage loans 19 24 20 25 Total average impaired loan balance $ 27 $ 60 $ 37 $ 48 |
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, 2020 C&I loans $ 7,384 $ 281 $ 66 $ — $ 7,731 CRE construction loans 219 — — — 219 CRE loans 3,341 262 92 — 3,695 Tax-exempt loans 1,290 — — — 1,290 Residential mortgage loans: First mortgage loans 4,861 9 23 — 4,893 Home equity loans/lines 24 — — — 24 SBL and other 3,631 — — — 3,631 Total loans held for investment $ 20,750 $ 552 $ 181 $ — $ 21,483 September 30, 2019 C&I loans $ 7,870 $ 152 $ 76 $ — $ 8,098 CRE construction loans 185 — — — 185 CRE loans 3,630 — 22 — 3,652 Tax-exempt loans 1,241 — — — 1,241 Residential mortgage loans: First mortgage loans 4,392 10 25 — 4,427 Home equity loans/lines 27 — — — 27 SBL and other 3,349 — — — 3,349 Total loans held for investment $ 20,694 $ 162 $ 123 $ — $ 20,979 |
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, 2020 Balance at beginning of period $ 197 $ 3 $ 88 $ 11 $ 18 $ 7 $ 324 Provision/(benefit) for loan losses 59 1 20 2 1 (2) 81 Net (charge-offs)/recoveries: Charge-offs (1) (71) — (2) — — — (73) Recoveries — — — — 1 — 1 Net (charge-offs)/recoveries (71) — (2) — 1 — (72) Foreign exchange translation adjustment 1 — — — — — 1 Balance at end of period $ 186 $ 4 $ 106 $ 13 $ 20 $ 5 $ 334 Nine months ended June 30, 2020 Balance at beginning of period $ 139 $ 3 $ 46 $ 9 $ 16 $ 5 $ 218 Provision for loan losses 118 1 62 4 3 — 188 Net (charge-offs)/recoveries: Charge-offs (1) (71) — (2) — — — (73) Recoveries — — — — 1 — 1 Net (charge-offs)/recoveries (71) — (2) — 1 — (72) Foreign exchange translation adjustment — — — — — — — Balance at end of period $ 186 $ 4 $ 106 $ 13 $ 20 $ 5 $ 334 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 (1) — — — — — — — Recoveries 1 — — — — — 1 Net recoveries 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 (1) (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 (1) Charge-offs related to loan sales amounted $61 million for both the three and nine months ended June 30, 2020 and $2 million for the nine months ended June 30, 2019. |
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, 2020 C&I loans $ 1 $ 185 $ 186 $ 1 $ 7,730 $ 7,731 CRE construction loans — 4 4 — 219 219 CRE loans — 106 106 6 3,689 3,695 Tax-exempt loans — 13 13 — 1,290 1,290 Residential mortgage loans 1 19 20 25 4,892 4,917 SBL and other — 5 5 — 3,631 3,631 Total $ 2 $ 332 $ 334 $ 32 $ 21,451 $ 21,483 September 30, 2019 C&I loans $ 6 $ 133 $ 139 $ 19 $ 8,079 $ 8,098 CRE construction loans — 3 3 — 185 185 CRE loans — 46 46 8 3,644 3,652 Tax-exempt loans — 9 9 — 1,241 1,241 Residential mortgage loans 1 15 16 28 4,426 4,454 SBL and other — 5 5 — 3,349 3,349 Total $ 7 $ 211 $ 218 $ 55 $ 20,924 $ 20,979 |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
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, 2020 Private Equity Interests $ 33 $ 4 LIHTC funds 246 159 Restricted Stock Trust Fund 19 19 Total $ 298 $ 182 September 30, 2019 Private Equity Interests $ 65 $ 4 LIHTC funds 80 5 Restricted Stock Trust Fund 14 14 Total $ 159 $ 23 |
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 and liabilities of the VIEs which we consolidate and which are included on our Condensed Consolidated Statements of Financial Condition. Intercompany balances are eliminated in consolidation and not reflected in the following table. $ in millions June 30, 2020 September 30, 2019 Assets: Cash, cash equivalents and cash segregated pursuant to regulations $ 7 $ 7 Other investments 32 63 Other assets 240 75 Total assets $ 279 $ 145 Liabilities: Other payables $ 156 $ 4 Total liabilities $ 156 $ 4 Noncontrolling interests $ 50 $ 60 |
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, 2020 September 30, 2019 $ in millions Aggregate Aggregate Our risk Aggregate Aggregate Our risk Private Equity Interests $ 4,404 $ 107 $ 61 $ 6,317 $ 117 $ 63 LIHTC funds 6,218 1,977 25 6,001 2,221 64 Other 216 130 5 205 115 4 Total $ 10,838 $ 2,214 $ 91 $ 12,523 $ 2,453 $ 131 |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Schedule of Lease Costs | The components of lease expense were as follows. $ in million Three months ended June 30, 2020 Nine months ended June 30, 2020 Operating lease costs $ 25 $ 71 Variable lease costs $ 6 $ 18 |
Schedule of Operating Lease Maturities | Maturities of lease liabilities as of June 30, 2020 were as follows. Maturity of lease liabilities for fiscal year ended September 30, $ in millions Remainder of 2020 $ 18 2021 102 2022 79 2023 63 2024 46 After 2024 85 Total lease payments 393 Less: interest 42 Present value of lease liabilities $ 351 |
Schedule of Supplemental Cash Flow Information | Statement of cash flows supplemental information $ in millions Three months ended June 30, 2020 Nine months ended June 30, 2020 Cash outflows - lease liabilities $ 26 $ 73 Non-cash - ROU assets recorded for new and modified leases $ 21 $ 60 |
Schedule of Future Minimum Rental Payments for Operating Leases | As of the date of adoption, our undiscounted minimum annual rental commitments under operating leases were materially unchanged from the disclosure in Note 17 of our 2019 Form 10-K, which is included in the following table. Fiscal year ended September 30, $ in millions 2020 $ 103 2021 95 2022 79 2023 66 2024 49 Thereafter 127 Total $ 519 |
BANK DEPOSITS (Tables)
BANK DEPOSITS (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
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, 2020 September 30, 2019 $ in millions Balance Weighted-average rate Balance Weighted-average rate Savings and money market accounts $ 24,106 0.01 % $ 21,654 0.25 % Certificates of deposit 1,088 1.98 % 605 2.33 % NOW accounts 156 1.92 % 6 0.01 % Demand deposits (non-interest-bearing) 22 — 16 — Total $ 25,372 0.11 % $ 22,281 0.31 % |
Scheduled Maturities of Certificates of Deposit | The following table sets forth the scheduled maturities of certificates of deposit. June 30, 2020 September 30, 2019 $ in millions Denominations Denominations Denominations Denominations Three months or less $ 71 $ 30 $ 24 $ 19 Over three through six months 55 73 26 21 Over six through twelve months 28 22 75 37 Over one through two years 36 198 32 36 Over two through three years 58 149 40 93 Over three through four years 56 156 66 47 Over four through five years 7 149 38 51 Total certificates of deposit $ 311 $ 777 $ 301 $ 304 |
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 2020 2019 2020 2019 Savings, money market, and NOW accounts $ 2 $ 29 $ 20 $ 96 Certificates of deposit 5 4 15 9 Total interest expense on deposits $ 7 $ 33 $ 35 $ 105 |
OTHER BORROWINGS (Tables)
OTHER BORROWINGS (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following table details the components of other borrowings. $ in millions June 30, 2020 September 30, 2019 FHLB advances $ 875 $ 875 Mortgage notes payable and other 15 19 Total other borrowings $ 890 $ 894 |
SENIOR NOTES PAYABLE (Tables)
SENIOR NOTES PAYABLE (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | The following table summarizes our senior notes payable. $ in millions June 30, 2020 September 30, 2019 5.625% senior notes, due 2024 $ 250 $ 250 3.625% senior notes, due 2026 500 500 4.65% senior notes, due 2030 500 — 4.95% senior notes, due 2046 800 800 Total principal amount 2,050 1,550 Unaccreted premium/(discount) 9 11 Unamortized debt issuance costs (15) (11) Total senior notes payable $ 2,044 $ 1,550 |
COMMITMENTS, CONTINGENCIES AN_2
COMMITMENTS, CONTINGENCIES AND GUARANTEES COMMITMENTS, CONTINGENCIES AND GUARANTEES (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
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, 2020 September 30, 2019 Open-end consumer lines of credit (primarily SBL) $ 11,397 $ 9,328 Commercial lines of credit $ 1,373 $ 1,527 Unfunded loan commitments $ 592 $ 599 Standby letters of credit $ 30 $ 40 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table presents the net change in AOCI 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, 2020 AOCI as of beginning of period $ 149 $ (191) $ (42) $ 83 $ (52) $ (11) OCI: OCI before reclassifications and taxes (29) 32 3 7 (7) 3 Amounts reclassified from AOCI, before tax — — — — 2 2 Pre-tax net OCI (29) 32 3 7 (5) 5 Income tax effect 8 — 8 (2) 1 7 OCI for the period, net of tax (21) 32 11 5 (4) 12 AOCI as of end of period $ 128 $ (159) $ (31) $ 88 $ (56) $ 1 Nine months ended June 30, 2020 AOCI as of beginning of period $ 110 $ (135) $ (25) $ 21 $ (19) $ (23) OCI: OCI before reclassifications and taxes 23 (24) (1) 90 (51) 38 Amounts reclassified from AOCI, before tax — — — — 2 2 Pre-tax net OCI 23 (24) (1) 90 (49) 40 Income tax effect (5) — (5) (23) 12 (16) OCI for the period, net of tax 18 (24) (6) 67 (37) 24 AOCI as of end of period $ 128 $ (159) $ (31) $ 88 $ (56) $ 1 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) |
REVENUES (Tables)
REVENUES (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables present our sources of revenues by segment. For further information about our significant accounting policies related to revenue recognition, see Note 2 of our 2019 Form 10-K. See Note 22 of this Form 10-Q for additional information on our segment results. Three months ended June 30, 2020 $ in millions Private Client Group Capital Markets Asset Management RJ Bank Other and intersegment eliminations Total Revenues: Asset management and related administrative fees $ 715 $ 1 $ 157 $ — $ (6) $ 867 Brokerage revenues: Securities commissions: Mutual and other fund products 131 2 2 — (1) 134 Insurance and annuity products 88 — — — — 88 Equities, ETFs and fixed income products 84 37 — — — 121 Subtotal securities commissions 303 39 2 — (1) 343 Principal transactions (1) 16 127 — — — 143 Total brokerage revenues 319 166 2 — (1) 486 Account and services fees: Mutual fund and annuity service fees 82 — 1 — — 83 RJBDP fees 63 1 — — (44) 20 Client account and other fees 32 1 2 — (4) 31 Total account and service fees 177 2 3 — (48) 134 Investment banking: Merger & acquisition and advisory — 60 — — — 60 Equity underwriting 7 35 — — — 42 Debt underwriting — 37 — — — 37 Total investment banking 7 132 — — — 139 Other: Tax credit fund revenues — 20 — — — 20 All other (1) 4 — 1 9 (1) 13 Total other 4 20 1 9 (1) 33 Total non-interest revenues 1,222 321 163 9 (56) 1,659 Interest income (1) 31 4 — 181 1 217 Total revenues 1,253 325 163 190 (55) 1,876 Interest expense (4) (2) — (12) (24) (42) Net revenues $ 1,249 $ 323 $ 163 $ 178 $ (79) $ 1,834 (1) These revenues are generally not in scope of the accounting guidance for revenue from contracts with customers. 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: Merger & acquisition and advisory — 80 — — — 80 Equity underwriting 10 27 — — — 37 Debt underwriting — 22 — — — 22 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 (1) These revenues are generally not in scope of the accounting guidance for revenue from contracts with customers. Nine Months Ended June 30, 2020 $ in millions Private Client Group Capital Markets Asset Management RJ Bank Other and intersegment eliminations Total Revenues: Asset management and related administrative fees $ 2,330 $ 4 $ 510 $ — $ (16) $ 2,828 Brokerage revenues: Securities commissions: Mutual and other fund products 438 6 6 — (2) 448 Insurance and annuity products 288 — — — — 288 Equities, ETFs and fixed income products 274 107 — — (1) 380 Subtotal securities commissions 1,000 113 6 — (3) 1,116 Principal transactions (1) 50 298 — — (3) 345 Total brokerage revenues 1,050 411 6 — (6) 1,461 Account and services fees: Mutual fund and annuity service fees 260 — 2 — (1) 261 RJBDP fees 267 1 — — (139) 129 Client account and other fees 96 4 10 — (16) 94 Total account and service fees 623 5 12 — (156) 484 Investment banking: Merger & acquisition and advisory — 192 — — — 192 Equity underwriting 29 117 — — — 146 Debt underwriting — 90 — — — 90 Total investment banking 29 399 — — — 428 Other: Tax credit fund revenues — 50 — — — 50 All other (1) 20 4 2 20 (49) (3) Total other 20 54 2 20 (49) 47 Total non-interest revenues 4,052 873 530 20 (227) 5,248 Interest income (1) 125 22 1 635 16 799 Total revenues 4,177 895 531 655 (211) 6,047 Interest expense (19) (14) — (51) (52) (136) Net revenues $ 4,158 $ 881 $ 531 $ 604 $ (263) $ 5,911 (1) These revenues are generally not in scope of the accounting guidance for revenue from contracts with customers. 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: Merger & acquisition and advisory — 286 — — — 286 Equity underwriting 25 72 — — — 97 Debt underwriting — 56 — — — 56 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 (1) These revenues are generally not in scope of the accounting guidance for revenue from contracts with customers. |
INTEREST INCOME AND INTEREST _2
INTEREST INCOME AND INTEREST EXPENSE (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
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 2020 2019 2020 2019 Interest income: Assets segregated pursuant to regulations $ 3 $ 14 $ 25 $ 46 Trading instruments 4 7 17 20 Available-for-sale securities 23 18 60 51 Margin loans 18 30 66 93 Bank loans, net of unearned income and deferred expenses 157 221 561 655 Loans to financial advisors 5 5 15 14 Corporate cash and all other 7 26 55 82 Total interest income $ 217 $ 321 $ 799 $ 961 Interest expense: Bank deposits $ 7 $ 33 $ 35 $ 105 Trading instruments sold but not yet purchased 1 2 3 6 Brokerage client payables 3 5 9 16 Other borrowings 5 5 15 16 Senior notes payable 24 19 61 55 Other 2 9 13 23 Total interest expense 42 73 136 221 Net interest income 175 248 663 740 Bank loan loss (provision)/benefit (81) 5 (188) (16) Net interest income after bank loan loss (provision)/benefit $ 94 $ 253 $ 475 $ 724 |
REGULATORY CAPITAL REQUIREMEN_2
REGULATORY CAPITAL REQUIREMENTS (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
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 To be well-capitalized $ in millions Amount Ratio Amount Ratio Amount Ratio RJF as of June 30, 2020: CET1 $ 6,351 24.8 % $ 1,152 4.5 % $ 1,664 6.5 % Tier 1 capital $ 6,351 24.8 % $ 1,536 6.0 % $ 2,047 8.0 % Total capital $ 6,661 26.0 % $ 2,047 8.0 % $ 2,559 10.0 % Tier 1 leverage $ 6,351 14.5 % $ 1,749 4.0 % $ 2,187 5.0 % RJF as of September 30, 2019: CET1 $ 5,971 24.8 % $ 1,085 4.5 % $ 1,567 6.5 % Tier 1 capital $ 5,971 24.8 % $ 1,446 6.0 % $ 1,928 8.0 % Total capital $ 6,207 25.8 % $ 1,928 8.0 % $ 2,410 10.0 % Tier 1 leverage $ 5,971 15.7 % $ 1,525 4.0 % $ 1,906 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 To be well-capitalized $ in millions Amount Ratio Amount Ratio Amount Ratio RJ Bank as of June 30, 2020: CET1 $ 2,247 12.8 % $ 790 4.5 % $ 1,141 6.5 % Tier 1 capital $ 2,247 12.8 % $ 1,053 6.0 % $ 1,404 8.0 % Total capital $ 2,468 14.1 % $ 1,404 8.0 % $ 1,755 10.0 % Tier 1 leverage $ 2,247 7.6 % $ 1,187 4.0 % $ 1,484 5.0 % RJ Bank as of September 30, 2019: CET1 $ 2,246 13.2 % $ 764 4.5 % $ 1,103 6.5 % Tier 1 capital $ 2,246 13.2 % $ 1,018 6.0 % $ 1,358 8.0 % Total capital $ 2,458 14.5 % $ 1,358 8.0 % $ 1,697 10.0 % Tier 1 leverage $ 2,246 8.8 % $ 1,021 4.0 % $ 1,276 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, 2020 September 30, 2019 Raymond James & Associates, Inc. : (Alternative Method elected) Net capital as a percent of aggregate debit items 46.1 % 39.7 % Net capital $ 1,183 $ 1,056 Less: required net capital (51) (53) Excess net capital $ 1,132 $ 1,003 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
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 2020 2019 2020 2019 Income for basic earnings per common share: Net income $ 172 $ 259 $ 609 $ 769 Less allocation of earnings and dividends to participating securities — (1) (1) (1) Net income attributable to RJF common shareholders $ 172 $ 258 $ 608 $ 768 Income for diluted earnings per common share: Net income $ 172 $ 259 $ 609 $ 769 Less allocation of earnings and dividends to participating securities — (1) (1) (1) Net income attributable to RJF common shareholders $ 172 $ 258 $ 608 $ 768 Common shares: Average common shares in basic computation 137.1 140.4 137.9 141.8 Dilutive effect of outstanding stock options and certain RSUs 2.3 3.2 2.6 3.0 Average common shares used in diluted computation 139.4 143.6 140.5 144.8 Earnings per common share: Basic $ 1.25 $ 1.84 $ 4.41 $ 5.42 Diluted $ 1.23 $ 1.80 $ 4.33 $ 5.30 Stock options and certain RSUs excluded from weighted-average diluted common shares because their effect would be antidilutive 1.8 0.2 1.6 0.5 |
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, 2020 2019 2020 2019 Dividends per common share - declared $ 0.37 $ 0.34 $ 1.11 $ 1.02 Dividends per common share - paid $ 0.37 $ 0.34 $ 1.08 $ 0.98 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenue from Segments to Consolidated | The following table presents information concerning operations in these segments. Three months ended June 30, Nine months ended June 30, $ in millions 2020 2019 2020 2019 Net revenues: Private Client Group $ 1,249 $ 1,351 $ 4,158 $ 3,978 Capital Markets 323 251 881 781 Asset Management 163 177 531 513 RJ Bank 178 215 604 630 Other (20) (4) (72) (2) Intersegment eliminations (59) (63) (191) (183) Total net revenues $ 1,834 $ 1,927 $ 5,911 $ 5,717 Pre-tax income/(loss): Private Client Group $ 91 $ 140 $ 414 $ 436 Capital Markets 62 24 119 77 Asset Management 60 65 206 184 RJ Bank 14 138 163 384 Other (29) (25) (106) (60) Total pre-tax income $ 198 $ 342 $ 796 $ 1,021 |
Reconciliation of Net Income (Loss) from Segments to Consolidated | The following table presents information concerning operations in these segments. Three months ended June 30, Nine months ended June 30, $ in millions 2020 2019 2020 2019 Net revenues: Private Client Group $ 1,249 $ 1,351 $ 4,158 $ 3,978 Capital Markets 323 251 881 781 Asset Management 163 177 531 513 RJ Bank 178 215 604 630 Other (20) (4) (72) (2) Intersegment eliminations (59) (63) (191) (183) Total net revenues $ 1,834 $ 1,927 $ 5,911 $ 5,717 Pre-tax income/(loss): Private Client Group $ 91 $ 140 $ 414 $ 436 Capital Markets 62 24 119 77 Asset Management 60 65 206 184 RJ Bank 14 138 163 384 Other (29) (25) (106) (60) Total pre-tax income $ 198 $ 342 $ 796 $ 1,021 |
Reconciliation of Other Significant Items from Segments to Consolidated | The following table presents our net interest on a segment basis. Three months ended June 30, Nine months ended June 30, $ in millions 2020 2019 2020 2019 Net interest income/(expense): Private Client Group $ 27 $ 46 $ 106 $ 139 Capital Markets 2 — 8 3 Asset Management — 1 1 3 RJ Bank 169 208 584 610 Other and intersegment eliminations (23) (7) (36) (15) Net interest income $ 175 $ 248 $ 663 $ 740 The following table presents goodwill, which was included in our total assets, on a segment basis. $ in millions June 30, 2020 September 30, 2019 Goodwill: Private Client Group $ 276 $ 275 Capital Markets 120 120 Asset Management 69 69 Total $ 465 $ 464 |
Reconciliation of Total Assets from Segment to Consolidated | The following table presents our total assets on a segment basis. $ in millions June 30, 2020 September 30, 2019 Total assets: Private Client Group $ 11,655 $ 9,042 Capital Markets 2,301 2,287 Asset Management 367 401 RJ Bank 28,830 25,516 Other 1,529 1,584 Total $ 44,682 $ 38,830 |
Revenues, Income Before Provision for Income Taxes and Excluding Noncontrolling Interests, and Total Assets, Classified by Major Geographic Areas | The following table presents our net revenues and pre-tax income classified by major geographic area in which they were earned. Three months ended June 30, Nine months ended June 30, $ in millions 2020 2019 2020 2019 Net revenues: U.S. $ 1,706 $ 1,793 $ 5,501 $ 5,318 Canada 86 101 293 290 Europe 42 33 117 109 Total $ 1,834 $ 1,927 $ 5,911 $ 5,717 Pre-tax income/(loss): U.S. $ 191 $ 330 $ 770 $ 994 Canada 5 12 26 35 Europe (1) 2 — — (8) Total $ 198 $ 342 $ 796 $ 1,021 (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 fiscal first quarter of 2019. The following table presents our total assets by major geographic area in which they were held. $ in millions June 30, 2020 September 30, 2019 Total assets: U.S. $ 41,459 $ 35,978 Canada 3,099 2,754 Europe 124 98 Total $ 44,682 $ 38,830 |
Long-lived Assets by Geographic Areas | 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, 2020 September 30, 2019 Goodwill: U.S. $ 433 $ 433 Canada 24 23 Europe 8 8 Total $ 465 $ 464 |
ORGANIZATION AND BASIS OF PRE_2
ORGANIZATION AND BASIS OF PRESENTATION (Details) | Jun. 30, 2020 |
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 | Jun. 30, 2020 | Oct. 01, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Right-of-use asset | $ 326 | $ 333 |
Operating lease liabilities | $ 351 | $ 357 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:PrepaidExpenseAndOtherAssets | |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilities |
FAIR VALUE, Recurring Fair Valu
FAIR VALUE, Recurring Fair Value Measurements (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Sep. 30, 2019 |
Assets, Fair Value Disclosure | ||
Available-for-sale securities | $ 5,630 | $ 3,093 |
Derivative assets, gross | 605 | 465 |
Amount of derivative assets offset | (153) | (127) |
Net amounts presented on the Condensed Consolidated Statements of Financial Condition | 452 | 338 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Total trading instruments sold but not yet purchased | 154 | 296 |
Derivative liabilities | 535 | 434 |
Total amounts offset | (141) | (121) |
Net amounts presented on the Condensed Consolidated Statements of Financial Condition | 394 | 313 |
Recurring | ||
Assets, Fair Value Disclosure | ||
Total debt securities | 325 | 647 |
Equity securities | 9 | 13 |
Brokered certificates of deposit | 12 | 45 |
Trading Securities, Other Security | 15 | 3 |
Total trading instruments | 361 | 708 |
Available-for-sale securities | 5,630 | 3,093 |
Amount of derivative assets offset | (153) | (127) |
Net amounts presented on the Condensed Consolidated Statements of Financial Condition | 452 | 338 |
All other investments | 224 | 219 |
Total assets at fair value on a recurring basis | 6,770 | 4,504 |
Netting adjustments | (153) | (127) |
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 112 | 291 |
Equity securities | 42 | 4 |
Other | 1 | |
Total trading instruments sold but not yet purchased | 154 | 296 |
Net amounts presented on the Condensed Consolidated Statements of Financial Condition | 394 | 313 |
Netting adjustments | (141) | (121) |
Total liabilities at fair value on a recurring basis | 548 | 609 |
Recurring | Municipal and provincial obligations | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 1 | |
Recurring | Corporate obligations | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 3 | 22 |
Recurring | Government and agency obligations | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 105 | 269 |
Recurring | Non Agency CMOs And ABS | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 3 | |
Recurring | Municipal and provincial obligations | ||
Assets, Fair Value Disclosure | ||
Total debt securities | 82 | 267 |
Recurring | Corporate obligations | ||
Assets, Fair Value Disclosure | ||
Total debt securities | 52 | 103 |
Recurring | Government and agency obligations | ||
Assets, Fair Value Disclosure | ||
Total debt securities | 82 | 79 |
Recurring | Agency mortgage-backed securities (“MBS”) and collateralized mortgage obligations (“CMOs”) | ||
Assets, Fair Value Disclosure | ||
Total debt securities | 102 | 147 |
Recurring | Non-agency CMOs and asset-backed securities (“ABS”) | ||
Assets, Fair Value Disclosure | ||
Total debt securities | 7 | 51 |
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 recurring basis | 6,697 | 4,421 |
Recurring | Level 1 | ||
Assets, Fair Value Disclosure | ||
Total debt securities | 27 | 20 |
Equity securities | 9 | 12 |
Brokered certificates of deposit | 0 | 0 |
Trading Securities, Other Security | 0 | 0 |
Total trading instruments | 36 | 32 |
Available-for-sale securities | 16 | 10 |
Derivative assets, gross | 15 | 3 |
All other investments | 201 | 194 |
Total assets at fair value on a recurring basis | 268 | 239 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 106 | 271 |
Equity securities | 42 | 4 |
Other | 0 | |
Total trading instruments sold but not yet purchased | 148 | 275 |
Derivative contracts liability, gross | 17 | 4 |
Total liabilities at fair value on a recurring basis | 165 | 279 |
Recurring | Level 1 | Municipal and provincial obligations | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 1 | |
Recurring | Level 1 | Corporate obligations | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 0 | 2 |
Recurring | Level 1 | Government and agency obligations | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 105 | 269 |
Recurring | Level 1 | Non Agency CMOs And ABS | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 0 | |
Recurring | Level 1 | Municipal and provincial obligations | ||
Assets, Fair Value Disclosure | ||
Total debt securities | 5 | 0 |
Recurring | Level 1 | Corporate obligations | ||
Assets, Fair Value Disclosure | ||
Total debt securities | 6 | 8 |
Recurring | Level 1 | Government and agency obligations | ||
Assets, Fair Value Disclosure | ||
Total debt securities | 16 | 12 |
Recurring | Level 1 | Agency mortgage-backed securities (“MBS”) and collateralized mortgage obligations (“CMOs”) | ||
Assets, Fair Value Disclosure | ||
Total debt securities | 0 | 0 |
Recurring | Level 1 | Non-agency CMOs and asset-backed securities (“ABS”) | ||
Assets, Fair Value Disclosure | ||
Total debt securities | 0 | 0 |
Recurring | Level 2 | ||
Assets, Fair Value Disclosure | ||
Total debt securities | 298 | 627 |
Equity securities | 0 | 1 |
Brokered certificates of deposit | 12 | 45 |
Trading Securities, Other Security | 0 | 0 |
Total trading instruments | 310 | 673 |
Available-for-sale securities | 5,614 | 3,083 |
Derivative assets, gross | 590 | 462 |
All other investments | 1 | 1 |
Total assets at fair value on a recurring basis | 6,515 | 4,219 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 6 | 20 |
Equity securities | 0 | 0 |
Other | 0 | |
Total trading instruments sold but not yet purchased | 6 | 20 |
Derivative contracts liability, gross | 518 | 430 |
Total liabilities at fair value on a recurring basis | 524 | 450 |
Recurring | Level 2 | Municipal and provincial obligations | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 0 | |
Recurring | Level 2 | Corporate obligations | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 3 | 20 |
Recurring | Level 2 | Government and agency obligations | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 0 | 0 |
Recurring | Level 2 | Non Agency CMOs And ABS | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 3 | |
Recurring | Level 2 | Municipal and provincial obligations | ||
Assets, Fair Value Disclosure | ||
Total debt securities | 77 | 267 |
Recurring | Level 2 | Corporate obligations | ||
Assets, Fair Value Disclosure | ||
Total debt securities | 46 | 95 |
Recurring | Level 2 | Government and agency obligations | ||
Assets, Fair Value Disclosure | ||
Total debt securities | 66 | 67 |
Recurring | Level 2 | Agency mortgage-backed securities (“MBS”) and collateralized mortgage obligations (“CMOs”) | ||
Assets, Fair Value Disclosure | ||
Total debt securities | 102 | 147 |
Recurring | Level 2 | Non-agency CMOs and asset-backed securities (“ABS”) | ||
Assets, Fair Value Disclosure | ||
Total debt securities | 7 | 51 |
Recurring | Level 3 | ||
Assets, Fair Value Disclosure | ||
Total debt securities | 0 | 0 |
Equity securities | 0 | 0 |
Brokered certificates of deposit | 0 | 0 |
Trading Securities, Other Security | 15 | 3 |
Total trading instruments | 15 | 3 |
Available-for-sale securities | 0 | 0 |
Derivative assets, gross | 0 | 0 |
All other investments | 22 | 24 |
Total assets at fair value on a recurring basis | 67 | 90 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 0 | 0 |
Equity securities | 0 | 0 |
Other | 1 | |
Total trading instruments sold but not yet purchased | 0 | 1 |
Derivative contracts liability, gross | 0 | 0 |
Total liabilities at fair value on a recurring basis | 0 | 1 |
Recurring | Level 3 | Municipal and provincial obligations | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 0 | |
Recurring | Level 3 | Corporate obligations | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 0 | 0 |
Recurring | Level 3 | Government and agency obligations | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 0 | 0 |
Recurring | Level 3 | Non Agency CMOs And ABS | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 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 |
Recurring | Level 3 | Non-agency CMOs and asset-backed securities (“ABS”) | ||
Assets, Fair Value Disclosure | ||
Total debt securities | 0 | 0 |
Recurring | Interest rate | ||
Assets, Fair Value Disclosure | ||
Interest rate - matched book | 351 | 280 |
Amount of derivative assets offset | (153) | (127) |
Net amounts presented on the Condensed Consolidated Statements of Financial Condition | 101 | 58 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Matched book | 351 | 280 |
Total amounts offset | (141) | (121) |
Net amounts presented on the Condensed Consolidated Statements of Financial Condition | 30 | 25 |
Recurring | Interest rate | Level 1 | ||
Assets, Fair Value Disclosure | ||
Interest rate - matched book | 0 | 0 |
Derivative assets, gross | 15 | 3 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Matched book | 0 | 0 |
Derivative liabilities | 17 | 4 |
Recurring | Interest rate | Level 2 | ||
Assets, Fair Value Disclosure | ||
Interest rate - matched book | 351 | 280 |
Derivative assets, gross | 239 | 182 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Matched book | 351 | 280 |
Derivative liabilities | 154 | 142 |
Recurring | Interest rate | Level 3 | ||
Assets, Fair Value Disclosure | ||
Interest rate - matched book | 0 | 0 |
Derivative assets, gross | 0 | 0 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Matched book | 0 | 0 |
Derivative liabilities | 0 | 0 |
Recurring | Foreign exchange | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Net amounts presented on the Condensed Consolidated Statements of Financial Condition | 12 | 2 |
Recurring | Foreign exchange | Level 1 | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative contracts liability, gross | 0 | 0 |
Recurring | Foreign exchange | Level 2 | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liabilities | 12 | 2 |
Recurring | Foreign exchange | Level 3 | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative contracts liability, gross | 0 | 0 |
Recurring | Other | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Net amounts presented on the Condensed Consolidated Statements of Financial Condition | 1 | 6 |
Recurring | Other | Level 1 | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liabilities | 0 | 0 |
Recurring | Other | Level 2 | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liabilities | 1 | 6 |
Recurring | Other | Level 3 | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liabilities | 0 | 0 |
Other investments | Recurring | ||
Assets, Fair Value Disclosure | ||
Private equity investments not measured at NAV | 30 | 63 |
Private equity investments measured at NAV | 73 | 83 |
Other investments | Recurring | Level 1 | ||
Assets, Fair Value Disclosure | ||
Private equity investments not measured at NAV | 0 | 0 |
Other investments | Recurring | Level 2 | ||
Assets, Fair Value Disclosure | ||
Private equity investments not measured at NAV | 0 | 0 |
Other investments | Recurring | Level 3 | ||
Assets, Fair Value Disclosure | ||
Private equity investments not measured at NAV | $ 30 | $ 63 |
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, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Sep. 30, 2019 | |
Percentage of instruments measured at fair value on a recurring basis | |||||
Instruments measured at fair value, percentage of assets (in hundredths) | 15.00% | 15.00% | 12.00% | ||
Instruments measured at fair value, percentage of liabilities (in hundredths) | 1.00% | 1.00% | 2.00% | ||
Instruments measured at fair value, level 3, percentage of assets (in hundredths) | 1.00% | 1.00% | 2.00% | ||
Trading instruments | Other | |||||
Changes in Level 3 recurring fair value measurements, liabilities [Roll Forward] | |||||
Fair value beginning of period | $ 0 | $ (7) | $ (1) | $ (7) | |
Total gains/(losses) included in earnings | 0 | 0 | 0 | 2 | |
Purchases and contributions | 0 | 7 | 2 | 16 | |
Sales and distributions | 0 | (3) | (1) | (14) | |
Transfers: | |||||
Into Level 3 | 0 | 0 | 0 | 0 | |
Out of Level 3 | 0 | 0 | 0 | 0 | |
Fair value end of period | 0 | (3) | 0 | (3) | |
Unrealized gains/(losses) for the period included in earnings for instruments held at the end of the reporting period | 0 | 0 | 0 | 0 | |
Trading instruments | Trading instruments | |||||
Changes in Level 3 recurring fair value measurements, assets [Roll Forward] | |||||
Fair value beginning of period | 21 | 2 | 3 | 1 | |
Total gains/(losses) included in earnings | (5) | (1) | (2) | (1) | |
Purchases and contributions | 11 | 26 | 64 | 86 | |
Sales and distributions | (12) | (26) | (50) | (85) | |
Transfers: | |||||
Into Level 3 | 0 | 0 | 0 | 0 | |
Out of Level 3 | 0 | 0 | 0 | 0 | |
Fair value end of period | 15 | 1 | 15 | 1 | |
Unrealized gains/(losses) for the period included in earnings for instruments held at the end of the reporting period | 2 | 1 | 1 | 1 | |
Private equity and other investments | Private equity investments | |||||
Changes in Level 3 recurring fair value measurements, assets [Roll Forward] | |||||
Fair value beginning of period | 30 | 59 | 63 | 56 | |
Total gains/(losses) included in earnings | 0 | 0 | (32) | 0 | |
Purchases and contributions | 0 | 0 | 0 | 3 | |
Sales and distributions | 0 | 0 | (1) | 0 | |
Transfers: | |||||
Into Level 3 | 0 | 0 | 0 | 0 | |
Out of Level 3 | 0 | 0 | 0 | 0 | |
Fair value end of period | 30 | 59 | 30 | 59 | |
Unrealized gains/(losses) for the period included in earnings for instruments held at the end of the reporting period | 0 | 0 | (32) | 0 | |
Private equity and other investments | All other | |||||
Changes in Level 3 recurring fair value measurements, assets [Roll Forward] | |||||
Fair value beginning of period | 22 | 67 | 24 | 67 | |
Total gains/(losses) included in earnings | 0 | (2) | (2) | (2) | |
Purchases and contributions | 0 | 0 | 0 | 0 | |
Sales and distributions | 0 | 0 | 0 | 0 | |
Transfers: | |||||
Into Level 3 | 0 | 0 | 0 | 0 | |
Out of Level 3 | 0 | 0 | 0 | 0 | |
Fair value end of period | 22 | 65 | 22 | 65 | |
Unrealized gains/(losses) for the period included in earnings for instruments held at the end of the reporting period | $ 0 | $ (2) | $ (2) | $ (2) |
FAIR VALUE, Significant Assumpt
FAIR VALUE, Significant Assumptions Used in Valuation of Level 3 Financial Instruments (Details) - Recurring $ in Millions | Jun. 30, 2020USD ($) | Sep. 30, 2019USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets at fair value on a recurring basis | $ 6,770 | $ 4,504 |
Level 3 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets at fair value on a recurring basis | 67 | 90 |
Private equity investments | Level 3 | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets at fair value on a recurring basis | $ 30 | $ 63 |
Discount rate | Private equity investments | Level 3 | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Multiple applied to revenue | 25 | 25 |
EBITDA Multiple | Private equity investments | Level 3 | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Multiple applied to revenue | 9 | 12.5 |
FAIR VALUE, Investments in Priv
FAIR VALUE, Investments in Private Equity Measured at Net Asset Value Per Share (Details) - Other investments - Recurring - USD ($) $ in Millions | Jun. 30, 2020 | Sep. 30, 2019 |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Private equity investments measured at NAV | $ 73 | $ 83 |
Private equity investments not measured at NAV | 30 | 63 |
Total private equity investments | 103 | 146 |
Total equity attributable to Raymond James Financial, Inc. | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Unfunded commitment | 9 | 15 |
Total private equity investments | 81 | 99 |
Noncontrolling interests | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Total private equity investments | $ 22 | $ 47 |
FAIR VALUE, Financial Instrumen
FAIR VALUE, Financial Instruments Measured at Fair Value on a Nonrecurring Basis (Details) - Nonrecurring - USD ($) $ in Millions | 9 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Sep. 30, 2019 | |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | |||
Other assets: other real estate owned | $ 1 | $ 1 | |
Level 2 | |||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | |||
Other assets: other real estate owned | 1 | 1 | |
Level 3 | |||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | |||
Other assets: other real estate owned | 0 | 0 | |
Loans held for sale | |||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | |||
Bank loans, net | 21 | 66 | |
Loans held for sale | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | |||
Bank loans, net | 21 | 66 | |
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 | 18 | 21 | |
Discounted cash flow | Bank loans: impaired loans - residential | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | |||
Bank loans, net | 5 | 7 | |
Discounted cash flow | Bank loans: impaired loans - residential | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | |||
Bank loans, net | 13 | 14 | |
Collateral or discounted cash flow | Bank loans: impaired loans - corporate | |||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | |||
Bank loans, net | 7 | 21 | |
Collateral or discounted 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 | |
Collateral or discounted cash flow | Bank loans: impaired loans - corporate | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | |||
Bank loans, net | $ 7 | $ 21 | |
Minimum | Discounted cash flow | Bank loans: impaired loans - residential | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | |||
Prepayment term | 7 years | 7 years | |
Maximum | Discounted cash flow | Bank loans: impaired loans - residential | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | |||
Prepayment term | 12 years | 12 years | |
Weighted average | Discounted cash flow | Bank loans: impaired loans - residential | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | |||
Prepayment term | 10 years 4 months 24 days | 10 years 4 months 24 days |
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, 2020 | Sep. 30, 2019 |
Carrying amount | ||
Financial assets: | ||
Bank loans, net | $ 21,177 | $ 20,783 |
Financial liabilities: | ||
Bank deposits - certificates of deposit | 1,088 | 605 |
Senior notes payable | 2,044 | 1,550 |
Recurring | Total estimated fair value | ||
Financial assets: | ||
Bank loans, net | 21,343 | 20,785 |
Financial liabilities: | ||
Bank deposits - certificates of deposit | 1,126 | 617 |
Senior notes payable | 2,413 | 1,760 |
Recurring | Level 2 | Total estimated fair value | ||
Financial assets: | ||
Bank loans, net | 65 | 75 |
Financial liabilities: | ||
Bank deposits - certificates of deposit | 0 | 0 |
Senior notes payable | 2,413 | 1,760 |
Recurring | Level 3 | Total estimated fair value | ||
Financial assets: | ||
Bank loans, net | 21,278 | 20,710 |
Financial liabilities: | ||
Bank deposits - certificates of deposit | 1,126 | 617 |
Senior notes payable | $ 0 | $ 0 |
AVAILABLE-FOR-SALE SECURITIES,
AVAILABLE-FOR-SALE SECURITIES, Amortized Cost and Fair Values of AFS Securities (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Sep. 30, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities | $ 5,630 | $ 3,093 |
RJ Bank | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost basis | 5,512 | 3,065 |
Gross unrealized gains | 119 | 32 |
Gross unrealized losses | (1) | (4) |
Available-for-sale securities | 5,630 | 3,093 |
RJ Bank | Agency residential MBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost basis | 2,895 | 1,555 |
Gross unrealized gains | 69 | 20 |
Gross unrealized losses | (1) | (1) |
Available-for-sale securities | 2,963 | 1,574 |
RJ Bank | Agency commercial MBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost basis | 570 | 305 |
Gross unrealized gains | 20 | 5 |
Gross unrealized losses | 0 | 0 |
Available-for-sale securities | 590 | 310 |
RJ Bank | Agency CMOs | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost basis | 2,032 | 1,195 |
Gross unrealized gains | 29 | 7 |
Gross unrealized losses | 0 | (3) |
Available-for-sale securities | 2,061 | 1,199 |
RJ Bank | Other securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost basis | 15 | 10 |
Gross unrealized gains | 1 | 0 |
Gross unrealized losses | 0 | 0 |
Available-for-sale securities | $ 16 | $ 10 |
AVAILABLE-FOR-SALE SECURITIES_2
AVAILABLE-FOR-SALE SECURITIES, Contractual Maturities (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Sep. 30, 2019 |
Carrying value | ||
Total | $ 5,630 | $ 3,093 |
RJ Bank | ||
Amortized cost | ||
Within one year | 12 | |
After one but within five years | 211 | |
After five but within ten years | 1,508 | |
After ten years | 3,781 | |
Cost basis | 5,512 | 3,065 |
Carrying value | ||
Within one year | 12 | |
After one but within five years | 218 | |
After five but within ten years | 1,552 | |
After ten years | 3,848 | |
Total | $ 5,630 | 3,093 |
Weighted-average yield | ||
Within one year (in hundredths) | 1.99% | |
After one but within five years (in hundredths) | 2.29% | |
After five but within ten years (in hundredths) | 2.05% | |
After ten years (in hundredths) | 1.82% | |
Total (in hundredths) | 1.90% | |
RJ Bank | Agency residential MBS | ||
Amortized cost | ||
Within one year | $ 0 | |
After one but within five years | 27 | |
After five but within ten years | 1,130 | |
After ten years | 1,738 | |
Cost basis | 2,895 | 1,555 |
Carrying value | ||
Within one year | 0 | |
After one but within five years | 28 | |
After five but within ten years | 1,160 | |
After ten years | 1,775 | |
Total | 2,963 | 1,574 |
RJ Bank | Agency commercial MBS | ||
Amortized cost | ||
Within one year | 12 | |
After one but within five years | 170 | |
After five but within ten years | 285 | |
After ten years | 103 | |
Cost basis | 570 | 305 |
Carrying value | ||
Within one year | 12 | |
After one but within five years | 175 | |
After five but within ten years | 298 | |
After ten years | 105 | |
Total | 590 | 310 |
RJ Bank | Agency CMOs | ||
Amortized cost | ||
Within one year | 0 | |
After one but within five years | 11 | |
After five but within ten years | 81 | |
After ten years | 1,940 | |
Cost basis | 2,032 | 1,195 |
Carrying value | ||
Within one year | 0 | |
After one but within five years | 11 | |
After five but within ten years | 82 | |
After ten years | 1,968 | |
Total | 2,061 | 1,199 |
RJ Bank | Other securities | ||
Amortized cost | ||
Within one year | 0 | |
After one but within five years | 3 | |
After five but within ten years | 12 | |
After ten years | 0 | |
Cost basis | 15 | 10 |
Carrying value | ||
Within one year | 0 | |
After one but within five years | 4 | |
After five but within ten years | 12 | |
After ten years | 0 | |
Total | $ 16 | $ 10 |
AVAILABLE-FOR-SALE SECURITIES_3
AVAILABLE-FOR-SALE SECURITIES, Gross Unrealized Losses and Fair Value and Significant Assumptions (Details) - RJ Bank - USD ($) $ in Millions | Jun. 30, 2020 | Sep. 30, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Estimated far value less than 12 months | $ 433 | $ 313 |
Unrealized losses less than 12 months | (1) | (1) |
Estimated fair value 12 months or more | 0 | 509 |
Unrealized losses 12 months or more | 0 | (3) |
Total estimated fair value | 433 | 822 |
Total unrealized losses | (1) | (4) |
Agency residential MBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated far value less than 12 months | 284 | 166 |
Unrealized losses less than 12 months | (1) | 0 |
Estimated fair value 12 months or more | 0 | 114 |
Unrealized losses 12 months or more | 0 | (1) |
Total estimated fair value | 284 | 280 |
Total unrealized losses | (1) | (1) |
Agency commercial MBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated far value less than 12 months | 0 | |
Unrealized losses less than 12 months | 0 | |
Estimated fair value 12 months or more | 44 | |
Unrealized losses 12 months or more | 0 | |
Total estimated fair value | 44 | |
Total unrealized losses | 0 | |
Agency CMOs | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated far value less than 12 months | 149 | 145 |
Unrealized losses less than 12 months | 0 | (1) |
Estimated fair value 12 months or more | 0 | 351 |
Unrealized losses 12 months or more | 0 | (2) |
Total estimated fair value | 149 | 496 |
Total unrealized losses | $ 0 | (3) |
Other securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated far value less than 12 months | 2 | |
Unrealized losses less than 12 months | 0 | |
Estimated fair value 12 months or more | 0 | |
Unrealized losses 12 months or more | 0 | |
Total estimated fair value | 2 | |
Total unrealized losses | $ 0 |
AVAILABLE-FOR-SALE SECURITIES_4
AVAILABLE-FOR-SALE SECURITIES, Narrative (Details) | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2020USD ($)position | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)position | Jun. 30, 2019USD ($) | Sep. 30, 2019USD ($) | |
Debt Securities, Available-for-sale [Line Items] | |||||
Duration, available for sale securities | 3 years | ||||
Available-for-sale securities | $ 5,630,000,000 | $ 5,630,000,000 | $ 3,093,000,000 | ||
Proceeds from sales of available-for-sale securities | 222,000,000 | $ 0 | 222,000,000 | $ 0 | |
Federal National Mortgage Association (FNMA) | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized cost basis | 3,780,000,000 | 3,780,000,000 | |||
Available-for-sale securities | 3,860,000,000 | 3,860,000,000 | |||
Federal Home Loan Mortgage Corporation (FHLMC) | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized cost basis | 1,440,000,000 | 1,440,000,000 | |||
Available-for-sale securities | 1,470,000,000 | 1,470,000,000 | |||
RJ Bank | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized cost basis | 5,512,000,000 | 5,512,000,000 | 3,065,000,000 | ||
Available-for-sale securities | $ 5,630,000,000 | $ 5,630,000,000 | $ 3,093,000,000 | ||
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 | 26 | 26 |
DERIVATIVE ASSETS AND DERIVAT_3
DERIVATIVE ASSETS AND DERIVATIVE LIABILITIES, Derivative Assets and Liability Fair Value (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Sep. 30, 2019 |
Derivative assets | ||
Derivative assets | $ 605 | $ 465 |
Counterparty netting | (41) | (24) |
Cash collateral netting | (112) | (103) |
Total amounts offset | (153) | (127) |
Net amounts presented on the Condensed Consolidated Statements of Financial Condition | 452 | 338 |
Financial instruments | (373) | (297) |
Net amount | 79 | 41 |
Notional amount | 20,456 | 15,537 |
Derivative liabilities | ||
Derivative liabilities | 535 | 434 |
Counterparty netting | (41) | (24) |
Cash collateral netting | (100) | (97) |
Total amounts offset | (141) | (121) |
Net amounts presented on the Condensed Consolidated Statements of Financial Condition | 394 | 313 |
Financial instruments | (351) | (280) |
Net amount | 43 | 33 |
Derivatives not designated as hedging instruments | ||
Derivative assets | ||
Derivative assets | 605 | 464 |
Notional amount | 18,764 | 13,831 |
Derivative liabilities | ||
Derivative liabilities | 528 | 433 |
Derivatives not designated as hedging instruments | Interest rate - matched book | ||
Derivative assets | ||
Interest rate - matched book | 351 | 280 |
Notional amount | 2,182 | 2,296 |
Derivative liabilities | ||
Interest rate - matched book | 351 | 280 |
Derivatives not designated as hedging instruments | Interest rate - other | ||
Derivative assets | ||
Derivative assets | 254 | 184 |
Notional amount | 15,443 | 10,690 |
Derivative liabilities | ||
Derivative liabilities | 171 | 146 |
Derivatives not designated as hedging instruments | Foreign exchange | ||
Derivative assets | ||
Derivative assets | 0 | 0 |
Notional amount | 623 | 573 |
Derivative liabilities | ||
Derivative liabilities | 5 | 1 |
Derivatives not designated as hedging instruments | Other | ||
Derivative assets | ||
Derivative assets | 0 | 0 |
Notional amount | 516 | 272 |
Derivative liabilities | ||
Derivative liabilities | 1 | 6 |
Derivatives designated as hedging instruments | ||
Derivative assets | ||
Derivative assets | 0 | 1 |
Notional amount | 1,692 | 1,706 |
Derivative liabilities | ||
Derivative liabilities | 7 | 1 |
Derivatives designated as hedging instruments | Interest rate | ||
Derivative assets | ||
Derivative assets | 0 | 1 |
Notional amount | 850 | 850 |
Derivative liabilities | ||
Derivative liabilities | 0 | 0 |
Derivatives designated as hedging instruments | Foreign exchange | ||
Derivative assets | ||
Derivative assets | 0 | 0 |
Notional amount | 842 | 856 |
Derivative liabilities | ||
Derivative liabilities | $ 7 | $ 1 |
DERIVATIVE ASSETS AND DERIVAT_4
DERIVATIVE ASSETS AND DERIVATIVE LIABILITIES, Derivative Gain (Loss) Recognized in AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Cash flow hedges | $ (4) | $ (19) | $ (37) | $ (49) |
Total gains/(losses) in AOCI, net of taxes | (25) | (31) | (19) | (35) |
Interest rate | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Cash flow hedges | (4) | (19) | (37) | (49) |
Foreign exchange | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net investment hedges | $ (21) | $ (12) | $ 18 | $ 14 |
DERIVATIVE ASSETS AND DERIVAT_5
DERIVATIVE ASSETS AND DERIVATIVE LIABILITIES (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2021 | |
Derivative [Line Items] | |||||
Gain (loss) excluded from assessment of hedge effectiveness | $ 0 | $ 0 | $ 0 | $ 0 | |
Interest expense | $ 42,000,000 | $ 73,000,000 | $ 136,000,000 | $ 221,000,000 | |
RJ Bank | |||||
Derivative [Line Items] | |||||
Maximum length of time hedged in cash flow hedge | 7 years | ||||
Forecast | Reclassification out of accumulated other comprehensive income | |||||
Derivative [Line Items] | |||||
Interest expense | $ 15,000,000 |
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, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Principal transactions/other revenues | Interest rate | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in fair value of derivative asset or liability | $ 0 | $ 2 | $ 5 | $ 4 |
Other revenues | Foreign exchange | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in fair value of derivative asset or liability | (19) | (8) | 13 | 14 |
Compensation, commissions and benefits expense | Other | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in fair value of derivative asset or liability | $ 0 | $ 0 | $ (1) | $ 5 |
DERIVATIVE ASSETS AND DERIVAT_7
DERIVATIVE ASSETS AND DERIVATIVE LIABILITIES, Risk (Details) | Jun. 30, 2020credit_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, 2020 | Sep. 30, 2019 |
Reverse repurchase agreements | ||
Gross amounts of recognized assets/liabilities | $ 193 | $ 343 |
Gross amounts offset on the Condensed Consolidated Statements of Financial Condition | 0 | 0 |
Net amounts presented on the Condensed Consolidated Statements of Financial Condition | 193 | 343 |
Gross amounts not offset on the Condensed Consolidated Statements of Financial Condition | (193) | (343) |
Net amounts | 0 | 0 |
Securities borrowed | ||
Gross amounts of recognized assets/liabilities | 300 | 248 |
Gross amounts offset on the Condensed Consolidated Statements of Financial Condition | 0 | 0 |
Net amounts presented on the Condensed Consolidated Statements of Financial Condition | 300 | 248 |
Gross amounts not offset on the Condensed Consolidated Statements of Financial Condition | (293) | (243) |
Net amounts | 7 | 5 |
Repurchase agreements | ||
Gross amounts of recognized assets/liabilities | 228 | 150 |
Gross amounts offset on the Condensed Consolidated Statements of Financial Condition | 0 | 0 |
Net amounts presented on the Condensed Consolidated Statements of Financial Condition | 228 | 150 |
Gross amounts not offset on the Condensed Consolidated Statements of Financial Condition | (228) | (150) |
Net amounts | 0 | 0 |
Securities loaned | ||
Gross amounts of recognized assets/liabilities | 88 | 323 |
Gross amounts offset on the Condensed Consolidated Statements of Financial Condition | 0 | 0 |
Net amounts presented on the Condensed Consolidated Statements of Financial Condition | 88 | 323 |
Gross amounts not offset on the Condensed Consolidated Statements of Financial Condition | (78) | (311) |
Net amounts | $ 10 | $ 12 |
COLLATERALIZED AGREEMENTS AND_4
COLLATERALIZED AGREEMENTS AND FINANCINGS, Collateral (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Sep. 30, 2019 |
Collateral Received that Can be Resold or Repledged [Abstract] | ||
Collateral we received that was available to be delivered or repledged | $ 2,516 | $ 2,931 |
Collateral that we delivered or repledged | $ 723 | $ 897 |
COLLATERALIZED AGREEMENTS AND_5
COLLATERALIZED AGREEMENTS AND FINANCINGS, Encumbered Assets (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Sep. 30, 2019 |
Financial instruments owned, at fair value, pledged to counterparties that: | ||
Had the right to deliver or repledge | $ 334 | $ 591 |
Did not have the right to deliver or repledge | 65 | 65 |
Bank loans, net pledged at Federal Home Loan Bank (“FHLB”) and the Federal Reserve Bank (“FRB”) | $ 5,352 | $ 4,653 |
COLLATERALIZED AGREEMENTS AND_6
COLLATERALIZED AGREEMENTS AND FINANCINGS, Repurchase Agreements, Repurchase-to-Maturity Transactions and Securities Loaned Accounted For As Secured Borrowings (Details) $ in Millions | Jun. 30, 2020USD ($)agreements | Sep. 30, 2019USD ($)agreements |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | $ 228 | $ 150 |
Total | $ 316 | $ 473 |
Number of repurchase to maturity agreements | agreements | 0 | 0 |
Government and agency obligations | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | $ 104 | $ 70 |
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 | 124 | 80 |
Equity securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities loaned | 88 | 323 |
Overnight and continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 228 | 150 |
Total | 316 | 473 |
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 | 104 | 70 |
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 | 124 | 80 |
Overnight and continuous | Equity securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities loaned | 88 | 323 |
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 | Jun. 30, 2020USD ($)portfolioSegment | Sep. 30, 2019USD ($) |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loan portfolio segments | portfolioSegment | 6 | |
Loans held for investment: | ||
Loans held for investment: | $ 21,483 | $ 20,979 |
Net unearned income and deferred expenses | (12) | (12) |
Total loans held for investment, net | 21,471 | 20,967 |
Loans held for sale, net | 86 | 142 |
Total loans held for sale and investment | 21,557 | 21,109 |
Allowance for loan losses | (334) | (218) |
Bank loans, net | $ 21,223 | $ 20,891 |
Associated percentage of each major loan category in loan portfolios [Abstract] | ||
Loans held for sale, net (in hundredths) | 0.00% | 1.00% |
Total loans held for sale and investment (in hundredths) | 100.00% | 100.00% |
C&I loans | ||
Loans held for investment: | ||
Loans held for investment: | $ 7,731 | $ 8,098 |
Associated percentage of each major loan category in loan portfolios [Abstract] | ||
Loans held for investment (in hundredths) | 36.00% | 38.00% |
CRE construction loans | ||
Loans held for investment: | ||
Loans held for investment: | $ 219 | $ 185 |
Associated percentage of each major loan category in loan portfolios [Abstract] | ||
Loans held for investment (in hundredths) | 1.00% | 1.00% |
CRE loans | ||
Loans held for investment: | ||
Loans held for investment: | $ 3,695 | $ 3,652 |
Associated percentage of each major loan category in loan portfolios [Abstract] | ||
Loans held for investment (in hundredths) | 17.00% | 17.00% |
Tax-exempt loans | ||
Loans held for investment: | ||
Loans held for investment: | $ 1,290 | $ 1,241 |
Associated percentage of each major loan category in loan portfolios [Abstract] | ||
Loans held for investment (in hundredths) | 6.00% | 6.00% |
Residential mortgage loans | ||
Loans held for investment: | ||
Loans held for investment: | $ 4,917 | $ 4,454 |
Associated percentage of each major loan category in loan portfolios [Abstract] | ||
Loans held for investment (in hundredths) | 23.00% | 21.00% |
SBL and other | ||
Loans held for investment: | ||
Loans held for investment: | $ 3,631 | $ 3,349 |
Associated percentage of each major loan category in loan portfolios [Abstract] | ||
Loans held for investment (in hundredths) | 17.00% | 16.00% |
BANK LOANS, NET, Originations,
BANK LOANS, NET, Originations, Purchases, and Sales (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Loans held for sale | ||||
Financing Receivables, Schedule of Purchases and Sales [Line Items] | ||||
Loans held for sale originated or purchased | $ 185 | $ 522 | $ 1,330 | $ 1,790 |
Proceeds from sale of loans held-for-sale | 130 | 159 | 564 | 516 |
Loans held for investment | ||||
Financing Receivables, Schedule of Purchases and Sales [Line Items] | ||||
Purchases | 113 | 389 | 739 | 1,226 |
Sales | 292 | 7 | 312 | 100 |
Loans held for investment | C&I loans | ||||
Financing Receivables, Schedule of Purchases and Sales [Line Items] | ||||
Purchases | 0 | 247 | 363 | 937 |
Sales | 265 | 7 | 285 | 100 |
Loans held for investment | CRE loans | ||||
Financing Receivables, Schedule of Purchases and Sales [Line Items] | ||||
Purchases | 0 | 10 | 5 | 35 |
Sales | 27 | 0 | 27 | 0 |
Loans held for investment | Residential mortgage loans | ||||
Financing Receivables, Schedule of Purchases and Sales [Line Items] | ||||
Purchases | 113 | 132 | 371 | 254 |
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, 2020 | Sep. 30, 2019 |
Analysis of payment status of loans held for investment [Abstract] | ||
Loans held for investment: | $ 21,483 | $ 20,979 |
Nonaccrual | 21 | 43 |
Performing nonaccrual loans | 6 | 32 |
Other assets | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Other real estate owned | 2 | 3 |
30-89 days and accruing | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Loans held for investment: | 4 | 2 |
90 days or more and accruing | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Loans held for investment: | 0 | 0 |
Total past due and accruing | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Loans held for investment: | 4 | 2 |
Current and accruing | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Loans held for investment: | 21,458 | 20,934 |
C&I loans | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Loans held for investment: | 7,731 | 8,098 |
Nonaccrual | 1 | 19 |
C&I loans | 30-89 days and accruing | ||
Analysis of payment status of loans held for investment [Abstract] | ||
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] | ||
Loans held for investment: | 0 | 0 |
C&I loans | Total past due and accruing | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Loans held for investment: | 0 | 0 |
C&I loans | Current and accruing | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Loans held for investment: | 7,730 | 8,079 |
CRE construction loans | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Loans held for investment: | 219 | 185 |
Nonaccrual | 0 | 0 |
CRE construction loans | 30-89 days and accruing | ||
Analysis of payment status of loans held for investment [Abstract] | ||
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] | ||
Loans held for investment: | 0 | 0 |
CRE construction loans | Total past due and accruing | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Loans held for investment: | 0 | 0 |
CRE construction loans | Current and accruing | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Loans held for investment: | 219 | 185 |
CRE loans | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Loans held for investment: | 3,695 | 3,652 |
Nonaccrual | 6 | 8 |
CRE loans | 30-89 days and accruing | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Loans held for investment: | 0 | 0 |
CRE loans | 90 days or more and accruing | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Loans held for investment: | 0 | 0 |
CRE loans | Total past due and accruing | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Loans held for investment: | 0 | 0 |
CRE loans | Current and accruing | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Loans held for investment: | 3,689 | 3,644 |
Tax-exempt loans | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Loans held for investment: | 1,290 | 1,241 |
Nonaccrual | 0 | 0 |
Tax-exempt loans | 30-89 days and accruing | ||
Analysis of payment status of loans held for investment [Abstract] | ||
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] | ||
Loans held for investment: | 0 | 0 |
Tax-exempt loans | Total past due and accruing | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Loans held for investment: | 0 | 0 |
Tax-exempt loans | Current and accruing | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Loans held for investment: | 1,290 | 1,241 |
Residential - first mortgage loans | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Loans held for investment: | 4,893 | 4,427 |
Nonaccrual | 14 | 16 |
Residential - first mortgage loans | 30-89 days and accruing | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Loans held for investment: | 4 | 2 |
Residential - first mortgage loans | 90 days or more and accruing | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Loans held for investment: | 0 | 0 |
Residential - first mortgage loans | Total past due and accruing | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Loans held for investment: | 4 | 2 |
Residential - first mortgage loans | Current and accruing | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Loans held for investment: | 4,875 | 4,409 |
Residential mortgage - home equity loans/lines | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Loans held for investment: | 24 | 27 |
Nonaccrual | 0 | 0 |
Residential mortgage - home equity loans/lines | 30-89 days and accruing | ||
Analysis of payment status of loans held for investment [Abstract] | ||
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] | ||
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] | ||
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] | ||
Loans held for investment: | 24 | 27 |
SBL and other | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Loans held for investment: | 3,631 | 3,349 |
Nonaccrual | 0 | 0 |
SBL and other | 30-89 days and accruing | ||
Analysis of payment status of loans held for investment [Abstract] | ||
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] | ||
Loans held for investment: | 0 | 0 |
SBL and other | Total past due and accruing | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Loans held for investment: | 0 | 0 |
SBL and other | Current and accruing | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Loans held for investment: | 3,631 | 3,349 |
Residential mortgage loans | One-to-four family residential mortgage loans | ||
Analysis of payment status of loans held for investment [Abstract] | ||
Financing receivable past due | $ 6 | $ 7 |
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, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Sep. 30, 2019 | |
Gross recorded investment | |||||
Gross recorded investment, impaired loans with allowance for loan losses | $ 9 | $ 9 | $ 30 | ||
Gross recorded investment, impaired loans without allowance for loan losses | 18 | 18 | 19 | ||
Gross recorded investment | 27 | 27 | 49 | ||
Unpaid principal balance | |||||
Unpaid principal balance, impaired loans with allowance for loan losses | 11 | 11 | 33 | ||
Unpaid principal balance, impaired loans without allowance for loan losses | 28 | 28 | 30 | ||
Unpaid principal balance | 39 | 39 | 63 | ||
Impaired loans with allowance for loan losses, allowance for losses | 2 | 2 | 7 | ||
Loan and Lease Receivables, Impaired | |||||
Average impaired loan balance | 27 | $ 60 | 37 | $ 48 | |
C&I loans | |||||
Gross recorded investment | |||||
Gross recorded investment, impaired loans with allowance for loan losses | 1 | 1 | 19 | ||
Unpaid principal balance | |||||
Unpaid principal balance, impaired loans with allowance for loan losses | 1 | 1 | 20 | ||
Impaired loans with allowance for loan losses, allowance for losses | 1 | 1 | 6 | ||
Loan and Lease Receivables, Impaired | |||||
Impaired loan, troubled debt restructurings | 19 | ||||
Average impaired loan balance | 2 | 26 | 10 | 19 | |
CRE loans | |||||
Gross recorded investment | |||||
Gross recorded investment, impaired loans without allowance for loan losses | 7 | 7 | 8 | ||
Unpaid principal balance | |||||
Unpaid principal balance, impaired loans without allowance for loan losses | 12 | 12 | 13 | ||
Loan and Lease Receivables, Impaired | |||||
Impaired loan, troubled debt restructurings | 6 | 6 | 8 | ||
Average impaired loan balance | 6 | 10 | 7 | 4 | |
Residential - first mortgage loans | |||||
Gross recorded investment | |||||
Gross recorded investment, impaired loans with allowance for loan losses | 8 | 8 | 11 | ||
Gross recorded investment, impaired loans without allowance for loan losses | 11 | 11 | 11 | ||
Unpaid principal balance | |||||
Unpaid principal balance, impaired loans with allowance for loan losses | 10 | 10 | 13 | ||
Unpaid principal balance, impaired loans without allowance for loan losses | 16 | 16 | 17 | ||
Impaired loans with allowance for loan losses, allowance for losses | 1 | 1 | 1 | ||
Loan and Lease Receivables, Impaired | |||||
Impaired loan, troubled debt restructurings | 16 | 16 | $ 18 | ||
Average impaired loan balance | $ 19 | $ 24 | $ 20 | $ 25 |
BANK LOANS, NET, Credit Quality
BANK LOANS, NET, Credit Quality of Held for Investment Loan Portfolio (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Sep. 30, 2019 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment: | $ 21,483 | $ 20,979 |
Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment: | 20,750 | 20,694 |
Special mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment: | 552 | 162 |
Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment: | 181 | 123 |
Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment: | 0 | 0 |
C&I loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment: | 7,731 | 8,098 |
C&I loans | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment: | 7,384 | 7,870 |
C&I loans | Special mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment: | 281 | 152 |
C&I loans | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment: | 66 | 76 |
C&I loans | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment: | 0 | 0 |
CRE construction loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment: | 219 | 185 |
CRE construction loans | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment: | 219 | 185 |
CRE construction loans | Special mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment: | 0 | 0 |
CRE construction loans | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment: | 0 | 0 |
CRE construction loans | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment: | 0 | 0 |
CRE loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment: | 3,695 | 3,652 |
CRE loans | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment: | 3,341 | 3,630 |
CRE loans | Special mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment: | 262 | 0 |
CRE loans | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment: | 92 | 22 |
CRE loans | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment: | 0 | 0 |
Tax-exempt loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment: | 1,290 | 1,241 |
Tax-exempt loans | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment: | 1,290 | 1,241 |
Tax-exempt loans | Special mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment: | 0 | 0 |
Tax-exempt loans | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment: | 0 | 0 |
Tax-exempt loans | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment: | 0 | 0 |
Residential – first mortgage loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment: | 4,893 | 4,427 |
Residential – first mortgage loans | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment: | 4,861 | 4,392 |
Residential – first mortgage loans | Special mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment: | 9 | 10 |
Residential – first mortgage loans | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment: | 23 | 25 |
Residential – first mortgage loans | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment: | 0 | 0 |
Home equity loans/lines | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment: | 24 | 27 |
Home equity loans/lines | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment: | 24 | 27 |
Home equity loans/lines | Special mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment: | 0 | 0 |
Home equity loans/lines | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment: | 0 | 0 |
Home equity loans/lines | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment: | 0 | 0 |
SBL and other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment: | 3,631 | 3,349 |
SBL and other | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment: | 3,631 | 3,349 |
SBL and other | Special mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment: | 0 | 0 |
SBL and other | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans held for investment: | 0 | 0 |
SBL and other | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
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, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Changes in the allowance for loan losses [Roll Forward] | ||||
Provision/(benefit) for loan losses | $ 81 | $ (5) | $ 188 | $ 16 |
Net (charge-offs)/recoveries: | ||||
Charge-offs related to loan sales | 61 | 61 | 2 | |
Loans held for investment | ||||
Changes in the allowance for loan losses [Roll Forward] | ||||
Balance at beginning of period | 324 | 218 | 218 | 203 |
Provision/(benefit) for loan losses | 81 | (5) | 188 | 16 |
Net (charge-offs)/recoveries: | ||||
Charge-offs (1) | (73) | 0 | (73) | (6) |
Recoveries | 1 | 1 | 1 | 2 |
Net (charge-offs)/recoveries | (72) | 1 | (72) | (4) |
Foreign exchange translation adjustment | 1 | 1 | 0 | 0 |
Balance at end of period | 334 | 215 | 334 | 215 |
Loans held for investment | C&I loans | ||||
Changes in the allowance for loan losses [Roll Forward] | ||||
Balance at beginning of period | 197 | 140 | 139 | 123 |
Provision/(benefit) for loan losses | 59 | (8) | 118 | 13 |
Net (charge-offs)/recoveries: | ||||
Charge-offs (1) | (71) | 0 | (71) | (3) |
Recoveries | 0 | 1 | 0 | 1 |
Net (charge-offs)/recoveries | (71) | 1 | (71) | (2) |
Foreign exchange translation adjustment | 1 | 1 | 0 | 0 |
Balance at end of period | 186 | 134 | 186 | 134 |
Loans held for investment | CRE construction loans | ||||
Changes in the allowance for loan losses [Roll Forward] | ||||
Balance at beginning of period | 3 | 3 | 3 | 3 |
Provision/(benefit) for loan losses | 1 | 1 | 1 | 1 |
Net (charge-offs)/recoveries: | ||||
Charge-offs (1) | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Net (charge-offs)/recoveries | 0 | 0 | 0 | 0 |
Foreign exchange translation adjustment | 0 | 0 | 0 | 0 |
Balance at end of period | 4 | 4 | 4 | 4 |
Loans held for investment | CRE loans | ||||
Changes in the allowance for loan losses [Roll Forward] | ||||
Balance at beginning of period | 88 | 45 | 46 | 47 |
Provision/(benefit) for loan losses | 20 | 1 | 62 | 2 |
Net (charge-offs)/recoveries: | ||||
Charge-offs (1) | (2) | 0 | (2) | (3) |
Recoveries | 0 | 0 | 0 | 0 |
Net (charge-offs)/recoveries | (2) | 0 | (2) | (3) |
Foreign exchange translation adjustment | 0 | 0 | 0 | 0 |
Balance at end of period | 106 | 46 | 106 | 46 |
Loans held for investment | Tax-exempt loans | ||||
Changes in the allowance for loan losses [Roll Forward] | ||||
Balance at beginning of period | 11 | 8 | 9 | 9 |
Provision/(benefit) for loan losses | 2 | 1 | 4 | 0 |
Net (charge-offs)/recoveries: | ||||
Charge-offs (1) | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Net (charge-offs)/recoveries | 0 | 0 | 0 | 0 |
Foreign exchange translation adjustment | 0 | 0 | 0 | 0 |
Balance at end of period | 13 | 9 | 13 | 9 |
Loans held for investment | Residential mortgage loans | ||||
Changes in the allowance for loan losses [Roll Forward] | ||||
Balance at beginning of period | 18 | 17 | 16 | 17 |
Provision/(benefit) for loan losses | 1 | (1) | 3 | (2) |
Net (charge-offs)/recoveries: | ||||
Charge-offs (1) | 0 | 0 | 0 | 0 |
Recoveries | 1 | 0 | 1 | 1 |
Net (charge-offs)/recoveries | 1 | 0 | 1 | 1 |
Foreign exchange translation adjustment | 0 | 0 | 0 | 0 |
Balance at end of period | 20 | 16 | 20 | 16 |
Loans held for investment | SBL and other | ||||
Changes in the allowance for loan losses [Roll Forward] | ||||
Balance at beginning of period | 7 | 5 | 5 | 4 |
Provision/(benefit) for loan losses | (2) | 1 | 0 | 2 |
Net (charge-offs)/recoveries: | ||||
Charge-offs (1) | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Net (charge-offs)/recoveries | 0 | 0 | 0 | 0 |
Foreign exchange translation adjustment | 0 | 0 | 0 | 0 |
Balance at end of period | $ 5 | $ 6 | $ 5 | $ 6 |
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, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 |
Recorded investment | ||||||
Total loans held for investment | $ 21,483 | $ 20,979 | ||||
Reserve for unfunded lending commitments [Abstract] | ||||||
Reserve for unfunded lending commitments | 11 | 9 | ||||
C&I loans | ||||||
Recorded investment | ||||||
Total loans held for investment | 7,731 | 8,098 | ||||
CRE construction loans | ||||||
Recorded investment | ||||||
Total loans held for investment | 219 | 185 | ||||
CRE loans | ||||||
Recorded investment | ||||||
Total loans held for investment | 3,695 | 3,652 | ||||
Tax-exempt loans | ||||||
Recorded investment | ||||||
Total loans held for investment | 1,290 | 1,241 | ||||
SBL and other | ||||||
Recorded investment | ||||||
Total loans held for investment | 3,631 | 3,349 | ||||
Loans held for investment | ||||||
Allowance for loan losses | ||||||
Individually evaluated for impairment | 2 | 7 | ||||
Collectively evaluated for impairment | 332 | 211 | ||||
Total allowance for loan losses | 334 | $ 324 | 218 | $ 215 | $ 218 | $ 203 |
Recorded investment | ||||||
Individually evaluated for impairment | 32 | 55 | ||||
Collectively evaluated for impairment | 21,451 | 20,924 | ||||
Total loans held for investment | 21,483 | 20,979 | ||||
Loans held for investment | C&I loans | ||||||
Allowance for loan losses | ||||||
Individually evaluated for impairment | 1 | 6 | ||||
Collectively evaluated for impairment | 185 | 133 | ||||
Total allowance for loan losses | 186 | 197 | 139 | 134 | 140 | 123 |
Recorded investment | ||||||
Individually evaluated for impairment | 1 | 19 | ||||
Collectively evaluated for impairment | 7,730 | 8,079 | ||||
Total loans held for investment | 7,731 | 8,098 | ||||
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 | 4 | 3 | 3 |
Recorded investment | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 219 | 185 | ||||
Total loans held for investment | 219 | 185 | ||||
Loans held for investment | CRE loans | ||||||
Allowance for loan losses | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 106 | 46 | ||||
Total allowance for loan losses | 106 | 88 | 46 | 46 | 45 | 47 |
Recorded investment | ||||||
Individually evaluated for impairment | 6 | 8 | ||||
Collectively evaluated for impairment | 3,689 | 3,644 | ||||
Total loans held for investment | 3,695 | 3,652 | ||||
Loans held for investment | Tax-exempt loans | ||||||
Allowance for loan losses | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 13 | 9 | ||||
Total allowance for loan losses | 13 | 11 | 9 | 9 | 8 | 9 |
Recorded investment | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 1,290 | 1,241 | ||||
Total loans held for investment | 1,290 | 1,241 | ||||
Loans held for investment | Residential mortgage loans | ||||||
Allowance for loan losses | ||||||
Individually evaluated for impairment | 1 | 1 | ||||
Collectively evaluated for impairment | 19 | 15 | ||||
Total allowance for loan losses | 20 | 18 | 16 | 16 | 17 | 17 |
Recorded investment | ||||||
Individually evaluated for impairment | 25 | 28 | ||||
Collectively evaluated for impairment | 4,892 | 4,426 | ||||
Total loans held for investment | 4,917 | 4,454 | ||||
Loans held for investment | SBL and other | ||||||
Allowance for loan losses | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 5 | 5 | ||||
Total allowance for loan losses | 5 | $ 7 | 5 | $ 6 | $ 5 | $ 4 |
Recorded investment | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 3,631 | 3,349 | ||||
Total loans held for investment | $ 3,631 | $ 3,349 |
VARIABLE INTEREST ENTITIES, Pri
VARIABLE INTEREST ENTITIES, Primary Beneficiary - Aggregate Assets and Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Sep. 30, 2019 |
Private Equity Interests | ||
Variable interest entity, consolidated, aggregate assets and liabilities [Abstract] | ||
Aggregate assets | $ 33 | $ 65 |
Aggregate liabilities | 4 | 4 |
LIHTC funds | ||
Variable interest entity, consolidated, aggregate assets and liabilities [Abstract] | ||
Aggregate assets | 246 | 80 |
Aggregate liabilities | 159 | 5 |
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 | 298 | 159 |
Aggregate liabilities | $ 182 | $ 23 |
VARIABLE INTEREST ENTITIES, P_2
VARIABLE INTEREST ENTITIES, Primary Beneficiary - Carrying Value of Assets, Liabilities and Equity (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2018 |
Assets: | ||||
Cash, cash equivalents and cash segregated pursuant to regulations | $ 8,837 | $ 5,971 | $ 5,952 | $ 5,941 |
Other assets | 1,572 | 1,020 | ||
Total assets | 44,682 | 38,830 | ||
Liabilities: | ||||
Other payables | 1,243 | 518 | ||
Total liabilities | 37,667 | 32,187 | ||
Noncontrolling interests | 50 | 62 | ||
Total VIEs - primary beneficiary | ||||
Assets: | ||||
Cash, cash equivalents and cash segregated pursuant to regulations | 7 | 7 | ||
Other investments | 32 | 63 | ||
Other assets | 240 | 75 | ||
Total assets | 279 | 145 | ||
Liabilities: | ||||
Other payables | 156 | 4 | ||
Total liabilities | 156 | 4 | ||
Noncontrolling interests | $ 50 | $ 60 |
VARIABLE INTEREST ENTITIES, Not
VARIABLE INTEREST ENTITIES, Not the Primary Beneficiary - Aggregate Assets, Liabilities Exposure to Loss (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Sep. 30, 2019 |
Private Equity Interests | ||
Variable interest entity, nonconsolidated, carrying amount of assets and liabilities [Abstract] | ||
Aggregate assets | $ 4,404 | $ 6,317 |
Aggregate liabilities | 107 | 117 |
Our risk of loss | 61 | 63 |
LIHTC funds | ||
Variable interest entity, nonconsolidated, carrying amount of assets and liabilities [Abstract] | ||
Aggregate assets | 6,218 | 6,001 |
Aggregate liabilities | 1,977 | 2,221 |
Our risk of loss | 25 | 64 |
Other | ||
Variable interest entity, nonconsolidated, carrying amount of assets and liabilities [Abstract] | ||
Aggregate assets | 216 | 205 |
Aggregate liabilities | 130 | 115 |
Our risk of loss | 5 | 4 |
Total VIEs - not primary beneficiary | ||
Variable interest entity, nonconsolidated, carrying amount of assets and liabilities [Abstract] | ||
Aggregate assets | 10,838 | 12,523 |
Aggregate liabilities | 2,214 | 2,453 |
Our risk of loss | $ 91 | $ 131 |
GOODWILL AND IDENTIFIABLE INT_2
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS, NET (Details) | Jan. 01, 2020USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Impairment | $ 0 |
LEASES - Operating Lease Assets
LEASES - Operating Lease Assets and Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Oct. 01, 2019 |
Leases [Abstract] | ||
Weighted-average remaining lease term (years) | 5 years | |
Weighted-average discount rate | 3.84% | |
Operating lease assets | $ 326 | $ 333 |
Operating lease liabilities | $ 351 | $ 357 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:PrepaidExpenseAndOtherAssets | |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilities |
LEASES - Lease Cost (Details)
LEASES - Lease Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Jun. 30, 2020 | Jun. 30, 2020 | |
Leases [Abstract] | ||
Operating lease costs | $ 25 | $ 71 |
Variable lease cost | $ 6 | $ 18 |
LEASES - Operating Lease Maturi
LEASES - Operating Lease Maturities (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Oct. 01, 2019 |
Lessee, Lease, Description [Line Items] | ||
Remainder of 2020 | $ 18 | |
2021 | 102 | |
2022 | 79 | |
2023 | 63 | |
2024 | 46 | |
After 2024 | 85 | |
Total lease payments | 393 | |
Less: interest | 42 | |
Present value of lease liabilities | 351 | $ 357 |
Legally binding minimum lease payments | $ 188 | |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Contract term | 5 years | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Contract term | 11 years |
LEASES - Supplemental Cash Flow
LEASES - Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Jun. 30, 2020 | Jun. 30, 2020 | |
Leases [Abstract] | ||
Cash outflows - lease liabilities | $ 26 | $ 73 |
Non-cash - ROU assets recorded for new and modified leases | $ 21 | $ 60 |
LEASES LEASES - Future Minimum
LEASES LEASES - Future Minimum Rental Commitments (Details) $ in Millions | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 103 |
2021 | 95 |
2022 | 79 |
2023 | 66 |
2024 | 49 |
Thereafter | 127 |
Total | $ 519 |
BANK DEPOSITS, Summary of Bank
BANK DEPOSITS, Summary of Bank Deposits (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Sep. 30, 2019 |
Bank deposits: | ||
Savings and money market accounts | $ 24,106 | $ 21,654 |
Certificates of deposit | 1,088 | 605 |
NOW accounts | 156 | 6 |
Demand deposits (non-interest-bearing) | 22 | 16 |
Total bank deposits | $ 25,372 | $ 22,281 |
Weighted-average rate [Abstract] | ||
Savings and money market accounts, weighted-average rate (in hundredths) | 0.01% | 0.25% |
Certificates of deposit, weighted-average rate (in hundredths) | 1.98% | 2.33% |
NOW accounts, weighted-average rate (in hundredths) | 1.92% | 0.01% |
Demand deposits (non-interest-bearing), weighted-average rate (in hundredths) | 0.00% | 0.00% |
Total bank deposits, weighted-average rate (in hundredths) | 0.11% | 0.31% |
Related party deposit liabilities | $ 185 | $ 163 |
Time deposit amount that exceeds FDIC insurance limit | $ 47 |
BANK DEPOSITS, Schedule Maturit
BANK DEPOSITS, Schedule Maturities of Certificates of Deposit (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Sep. 30, 2019 |
Scheduled maturities of certificates of deposit, denominations greater than or equal to $100,000 [Abstract] | ||
Three months or less | $ 71 | $ 24 |
Over three through six months | 55 | 26 |
Over six through twelve months | 28 | 75 |
Over one through two years | 36 | 32 |
Over two through three years | 58 | 40 |
Over three through four years | 56 | 66 |
Over four through five years | 7 | 38 |
Total certificates of deposit | 311 | 301 |
Scheduled maturities of certificates of deposit, denominations less than 100,000 [Abstract] | ||
Three months or less | 30 | 19 |
Over three through six months | 73 | 21 |
Over six through twelve months | 22 | 37 |
Over one through two years | 198 | 36 |
Over two through three years | 149 | 93 |
Over three through four years | 156 | 47 |
Over four through five years | 149 | 51 |
Total certificates of deposit | $ 777 | $ 304 |
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, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Interest expense on deposits [Abstract] | ||||
Savings, money market, and NOW accounts | $ 2 | $ 29 | $ 20 | $ 96 |
Certificates of deposit | 5 | 4 | 15 | 9 |
Total interest expense on deposits | $ 7 | $ 33 | $ 35 | $ 105 |
OTHER BORROWINGS, Schedule of O
OTHER BORROWINGS, Schedule of Other Borrowings (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Sep. 30, 2019 |
Other Borrowings [Line Items] | ||
Total other borrowings | $ 890 | $ 894 |
Mortgage notes payable and other | ||
Other Borrowings [Line Items] | ||
Long-term debt | 15 | 19 |
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, 2020 | Sep. 30, 2019 | Feb. 19, 2019 | |
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 | 0.50% | 2.17% | |
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% | ||
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 |
SENIOR NOTES PAYABLE (Details)
SENIOR NOTES PAYABLE (Details) - Senior Notes - USD ($) $ in Millions | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | May 31, 2017 | Jul. 31, 2016 | Mar. 31, 2012 |
Debt Instrument [Line Items] | ||||||
Senior notes payable | $ 2,050 | $ 1,550 | ||||
Unaccreted premium/(discount) | 9 | 11 | ||||
Unamortized debt issuance costs | (15) | (11) | ||||
Total senior notes payable | 2,044 | 1,550 | ||||
Senior Notes Due 2024 | ||||||
Debt Instrument [Line Items] | ||||||
Senior notes payable | 250 | 250 | ||||
Stated interest rate | 5.625% | |||||
Senior Notes Due 2026 | ||||||
Debt Instrument [Line Items] | ||||||
Senior notes payable | 500 | 500 | ||||
Stated interest rate | 3.625% | |||||
Senior Notes Due 2030 | ||||||
Debt Instrument [Line Items] | ||||||
Senior notes payable | 500 | 0 | ||||
Stated interest rate | 4.65% | |||||
Senior Notes Due 2046 | ||||||
Debt Instrument [Line Items] | ||||||
Senior notes payable | $ 800 | $ 800 | ||||
Stated interest rate | 4.95% | 4.95% |
SENIOR NOTES PAYABLE Narrative
SENIOR NOTES PAYABLE Narrative (Details) - Senior Notes - USD ($) | Mar. 31, 2020 | May 31, 2017 | Jul. 31, 2016 | Mar. 31, 2012 |
Senior Notes Due 2024 | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, face amount | $ 250,000,000 | |||
Stated interest rate | 5.625% | |||
Percentage of principal amount of notes redeemed | 100.00% | |||
Basis spread used in determining redemption price | 0.50% | |||
Senior Notes Due 2026 | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, face amount | $ 500,000,000 | |||
Stated interest rate | 3.625% | |||
Percentage of principal amount of notes redeemed | 100.00% | |||
Basis spread used in determining redemption price | 0.35% | |||
Senior Notes Due 2030 | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, face amount | $ 500,000,000 | |||
Stated interest rate | 4.65% | |||
Percentage of principal amount of notes redeemed | 100.00% | |||
Basis spread used in determining redemption price | 0.50% | |||
Senior Notes Due 2046 | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, face amount | $ 300,000,000 | $ 300,000,000 | ||
Stated interest rate | 4.95% | 4.95% | ||
Percentage of principal amount of notes redeemed | 100.00% | |||
Basis spread used in determining redemption price | 0.45% | |||
Senior Notes Due 2046, Additional | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, face amount | $ 500,000,000 |
INCOME TAXES (Details)
INCOME TAXES (Details) | 9 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 23.50% | 24.80% |
COMMITMENTS, CONTINGENCIES AN_3
COMMITMENTS, CONTINGENCIES AND GUARANTEES, Commitments and Contingencies (Details) $ in Millions | 9 Months Ended |
Jun. 30, 2020USD ($)agreements | |
Independent venture capital or private equity investment commitment | |
Commitments [Line Items] | |
Amount of commitment | $ 38 |
Commitment to lend to RJTCF | |
Commitments [Line Items] | |
Amount of commitment | $ 130 |
Number of days that investments in project partnerships typically sold | 90 days |
Forward GNMA MBS purchase commitments | |
Commitments [Line Items] | |
Amount of commitment | $ 426 |
Expected time of purchase (in days) | 90 days |
Underwriting commitment | |
Commitments [Line Items] | |
Number of open underwriting commitments | agreements | 11 |
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, 2020 | Sep. 30, 2019 |
Commitments and Contingencies Disclosure [Abstract] | ||
Open-end consumer lines of credit (primarily SBL) | $ 11,397 | $ 9,328 |
Commercial lines of credit | 1,373 | 1,527 |
Unfunded loan commitments | 592 | 599 |
Standby letters of credit | $ 30 | $ 40 |
COMMITMENTS, CONTINGENCIES AN_5
COMMITMENTS, CONTINGENCIES AND GUARANTEES, Guarantees (Details) | Jun. 30, 2020USD ($) |
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 |
Other investments | Financial Guarantee | |
Guarantees [Abstract] | |
Current exposure of guarantees | $ 13,000,000 |
COMMITMENTS, CONTINGENCIES AN_6
COMMITMENTS, CONTINGENCIES AND GUARANTEES, Legal and Regulatory Matters Contingencies (Details) $ in Millions | Jun. 30, 2020USD ($) |
Pending Litigation | Various lawsuits | |
Loss Contingencies [Line Items] | |
Range of loss portion not accrued | $ 125 |
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, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance beginning of period | $ 6,643 | |||
OCI: | ||||
Total other comprehensive income/(loss), net of tax | $ 12 | $ 11 | 24 | $ 17 |
Balance end of period | 7,015 | 6,564 | 7,015 | 6,564 |
Net investment hedges | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance beginning of period | 149 | 114 | 110 | 88 |
OCI: | ||||
OCI before reclassifications and taxes | (29) | (16) | 23 | 18 |
Amounts reclassified from AOCI, before tax | 0 | 0 | 0 | 0 |
Pre-tax net OCI | (29) | (16) | 23 | 18 |
Income tax effect | 8 | 4 | (5) | (4) |
Total other comprehensive income/(loss), net of tax | (21) | (12) | 18 | 14 |
Balance end of period | 128 | 102 | 128 | 102 |
Net investment hedges | Accounting Standards Update 2016-01 | Cumulative Effect, Period of Adoption, Adjustment | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance beginning of period | 0 | |||
Currency translations | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance beginning of period | (191) | (142) | (135) | (111) |
OCI: | ||||
OCI before reclassifications and taxes | 32 | 18 | (24) | (13) |
Amounts reclassified from AOCI, before tax | 0 | 0 | 0 | 0 |
Pre-tax net OCI | 32 | 18 | (24) | (13) |
Income tax effect | 0 | 0 | 0 | 0 |
Total other comprehensive income/(loss), net of tax | 32 | 18 | (24) | (13) |
Balance end of period | (159) | (124) | (159) | (124) |
Currency translations | Accounting Standards Update 2016-01 | Cumulative Effect, Period of Adoption, Adjustment | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance beginning of period | 0 | |||
Subtotal: net investment hedges and currency translations | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance beginning of period | (42) | (28) | (25) | (23) |
OCI: | ||||
OCI before reclassifications and taxes | 3 | 2 | (1) | 5 |
Amounts reclassified from AOCI, before tax | 0 | 0 | 0 | 0 |
Pre-tax net OCI | 3 | 2 | (1) | 5 |
Income tax effect | 8 | 4 | (5) | (4) |
Total other comprehensive income/(loss), net of tax | 11 | 6 | (6) | 1 |
Balance end of period | (31) | (22) | (31) | (22) |
Subtotal: net investment hedges and currency translations | Accounting Standards Update 2016-01 | Cumulative Effect, Period of Adoption, Adjustment | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance beginning of period | 0 | |||
Available- for-sale securities | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance beginning of period | 83 | (9) | 21 | (46) |
OCI: | ||||
OCI before reclassifications and taxes | 7 | 32 | 90 | 90 |
Amounts reclassified from AOCI, before tax | 0 | 0 | 0 | 0 |
Pre-tax net OCI | 7 | 32 | 90 | 90 |
Income tax effect | (2) | (8) | (23) | (25) |
Total other comprehensive income/(loss), net of tax | 5 | 24 | 67 | 65 |
Balance end of period | 88 | 15 | 88 | 15 |
Available- for-sale securities | Accounting Standards Update 2016-01 | Cumulative Effect, Period of Adoption, Adjustment | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance beginning of period | (4) | |||
Cash flow hedges | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance beginning of period | (52) | 12 | (19) | 42 |
OCI: | ||||
OCI before reclassifications and taxes | (7) | (24) | (51) | (64) |
Amounts reclassified from AOCI, before tax | 2 | (1) | 2 | (4) |
Pre-tax net OCI | (5) | (25) | (49) | (68) |
Income tax effect | 1 | 6 | 12 | 19 |
Total other comprehensive income/(loss), net of tax | (4) | (19) | (37) | (49) |
Balance end of period | (56) | (7) | (56) | (7) |
Cash flow hedges | Accounting Standards Update 2016-01 | Cumulative Effect, Period of Adoption, Adjustment | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance beginning of period | 0 | |||
Accumulated other comprehensive income/ (loss) | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance beginning of period | (11) | (25) | (23) | (27) |
OCI: | ||||
OCI before reclassifications and taxes | 3 | 10 | 38 | 31 |
Amounts reclassified from AOCI, before tax | 2 | (1) | 2 | (4) |
Pre-tax net OCI | 5 | 9 | 40 | 27 |
Income tax effect | 7 | 2 | (16) | (10) |
Total other comprehensive income/(loss), net of tax | 12 | 11 | 24 | 17 |
Balance end of period | $ 1 | $ (14) | $ 1 | (14) |
Accumulated other comprehensive income/ (loss) | Accounting Standards Update 2016-01 | Cumulative Effect, Period of Adoption, Adjustment | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance beginning of period | $ (4) |
REVENUES, Disaggregation of Rev
REVENUES, Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Sep. 30, 2019 | |
Disaggregation of Revenue [Line Items] | |||||
Principal transactions | $ 143 | $ 93 | $ 345 | $ 262 | |
Noninterest Income | 1,659 | 1,679 | 5,248 | 4,977 | |
All other | 13 | 11 | (3) | 46 | |
Interest income | 217 | 321 | 799 | 961 | |
Total revenues | 1,876 | 2,000 | 6,047 | 5,938 | |
Interest expense | (42) | (73) | (136) | (221) | |
Net revenues | 1,834 | 1,927 | 5,911 | 5,717 | |
Receivables related to contracts with customers | 320 | 320 | $ 347 | ||
Asset management and related administrative fees | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 867 | 879 | 2,828 | 2,527 | |
Total brokerage revenues | |||||
Disaggregation of Revenue [Line Items] | |||||
Noninterest Income | 486 | 451 | 1,461 | 1,357 | |
Subtotal securities commissions | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 343 | 358 | 1,116 | 1,095 | |
Mutual and other fund products | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 134 | 150 | 448 | 458 | |
Insurance and annuity products | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 88 | 105 | 288 | 308 | |
Equities, ETFs and fixed income products | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 121 | 103 | 380 | 329 | |
Total account and service fees | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 134 | 183 | 484 | 559 | |
Mutual fund and annuity service fees | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 83 | 84 | 261 | 243 | |
RJBDP fees | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 20 | 66 | 129 | 214 | |
Client account and other fees | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 31 | 33 | 94 | 102 | |
Total investment banking | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 139 | 139 | 428 | 439 | |
Merger & acquisition and advisory | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 60 | 80 | 192 | 286 | |
Equity underwriting | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 42 | 37 | 146 | 97 | |
Debt underwriting | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 37 | 22 | 90 | 56 | |
Total other | |||||
Disaggregation of Revenue [Line Items] | |||||
Noninterest Income | 33 | 27 | 47 | 95 | |
Tax credit fund revenues | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 20 | 16 | 50 | 49 | |
Operating segments | Private Client Group | |||||
Disaggregation of Revenue [Line Items] | |||||
Principal transactions | 16 | 20 | 50 | 59 | |
Noninterest Income | 1,222 | 1,305 | 4,052 | 3,839 | |
All other | 4 | 3 | 20 | 19 | |
Interest income | 31 | 56 | 125 | 170 | |
Total revenues | 1,253 | 1,361 | 4,177 | 4,009 | |
Interest expense | (4) | (10) | (19) | (31) | |
Net revenues | 1,249 | 1,351 | 4,158 | 3,978 | |
Operating segments | Private Client Group | Asset management and related administrative fees | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 715 | 718 | 2,330 | 2,063 | |
Operating segments | Private Client Group | Total brokerage revenues | |||||
Disaggregation of Revenue [Line Items] | |||||
Noninterest Income | 319 | 346 | 1,050 | 1,048 | |
Operating segments | Private Client Group | Subtotal securities commissions | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 303 | 326 | 1,000 | 989 | |
Operating segments | Private Client Group | Mutual and other fund products | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 131 | 147 | 438 | 449 | |
Operating segments | Private Client Group | Insurance and annuity products | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 88 | 105 | 288 | 308 | |
Operating segments | Private Client Group | Equities, ETFs and fixed income products | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 84 | 74 | 274 | 232 | |
Operating segments | Private Client Group | Total account and service fees | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 177 | 228 | 623 | 684 | |
Operating segments | Private Client Group | Mutual fund and annuity service fees | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 82 | 85 | 260 | 250 | |
Operating segments | Private Client Group | RJBDP fees | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 63 | 111 | 267 | 342 | |
Operating segments | Private Client Group | Client account and other fees | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 32 | 32 | 96 | 92 | |
Operating segments | Private Client Group | Total investment banking | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 7 | 10 | 29 | 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 | Equity underwriting | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 7 | 10 | 29 | 25 | |
Operating segments | Private Client Group | Debt underwriting | |||||
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] | |||||
Noninterest Income | 4 | 3 | 20 | 19 | |
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 | 127 | 74 | 298 | 203 | |
Noninterest Income | 321 | 251 | 873 | 778 | |
All other | 0 | (1) | 4 | 1 | |
Interest income | 4 | 10 | 22 | 29 | |
Total revenues | 325 | 261 | 895 | 807 | |
Interest expense | (2) | (10) | (14) | (26) | |
Net revenues | 323 | 251 | 881 | 781 | |
Operating segments | Capital Markets | Asset management and related administrative fees | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 1 | 2 | 4 | 5 | |
Operating segments | Capital Markets | Total brokerage revenues | |||||
Disaggregation of Revenue [Line Items] | |||||
Noninterest Income | 166 | 104 | 411 | 306 | |
Operating segments | Capital Markets | Subtotal securities commissions | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 39 | 30 | 113 | 103 | |
Operating segments | Capital Markets | Mutual and other fund products | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 2 | 1 | 6 | 4 | |
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 | 37 | 29 | 107 | 99 | |
Operating segments | Capital Markets | Total account and service fees | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 2 | 1 | 5 | 3 | |
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 | 1 | 0 | 1 | 0 | |
Operating segments | Capital Markets | Client account and other fees | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 1 | 1 | 4 | 3 | |
Operating segments | Capital Markets | Total investment banking | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 132 | 129 | 399 | 414 | |
Operating segments | Capital Markets | Merger & acquisition and advisory | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 60 | 80 | 192 | 286 | |
Operating segments | Capital Markets | Equity underwriting | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 35 | 27 | 117 | 72 | |
Operating segments | Capital Markets | Debt underwriting | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 37 | 22 | 90 | 56 | |
Operating segments | Capital Markets | Total other | |||||
Disaggregation of Revenue [Line Items] | |||||
Noninterest Income | 20 | 15 | 54 | 50 | |
Operating segments | Capital Markets | Tax credit fund revenues | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 20 | 16 | 50 | 49 | |
Operating segments | Asset Management | |||||
Disaggregation of Revenue [Line Items] | |||||
Principal transactions | 0 | 0 | 0 | 0 | |
Noninterest Income | 163 | 176 | 530 | 510 | |
All other | 1 | 1 | 2 | 1 | |
Interest income | 0 | 1 | 1 | 3 | |
Total revenues | 163 | 177 | 531 | 513 | |
Interest expense | 0 | 0 | 0 | 0 | |
Net revenues | 163 | 177 | 531 | 513 | |
Operating segments | Asset Management | Asset management and related administrative fees | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 157 | 165 | 510 | 475 | |
Operating segments | Asset Management | Total brokerage revenues | |||||
Disaggregation of Revenue [Line Items] | |||||
Noninterest Income | 2 | 2 | 6 | 7 | |
Operating segments | Asset Management | Subtotal securities commissions | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 2 | 2 | 6 | 7 | |
Operating segments | Asset Management | Mutual and other fund products | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 2 | 2 | 6 | 7 | |
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 | 3 | 8 | 12 | 27 | |
Operating segments | Asset Management | Mutual fund and annuity service fees | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 1 | 0 | 2 | 2 | |
Operating segments | Asset Management | RJBDP fees | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 0 | 1 | 0 | 3 | |
Operating segments | Asset Management | Client account and other fees | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 2 | 7 | 10 | 22 | |
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 | Merger & acquisition and advisory | |||||
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 | Debt underwriting | |||||
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] | |||||
Noninterest Income | 1 | 1 | 2 | 1 | |
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 | 0 | 1 | |
Noninterest Income | 9 | 7 | 20 | 20 | |
All other | 9 | 7 | 20 | 19 | |
Interest income | 181 | 246 | 635 | 732 | |
Total revenues | 190 | 253 | 655 | 752 | |
Interest expense | (12) | (38) | (51) | (122) | |
Net revenues | 178 | 215 | 604 | 630 | |
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] | |||||
Noninterest Income | 0 | 0 | 0 | 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 | Merger & acquisition and advisory | |||||
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 | Debt underwriting | |||||
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] | |||||
Noninterest Income | 9 | 7 | 20 | 19 | |
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] | |||||
Net revenues | (20) | (4) | (72) | (2) | |
Other and intersegment eliminations | Other and intersegment eliminations | |||||
Disaggregation of Revenue [Line Items] | |||||
Principal transactions | 0 | (1) | (3) | (1) | |
Noninterest Income | (56) | (60) | (227) | (170) | |
All other | (1) | 1 | (49) | 6 | |
Interest income | 1 | 8 | 16 | 27 | |
Total revenues | (55) | (52) | (211) | (143) | |
Interest expense | (24) | (15) | (52) | (42) | |
Net revenues | (79) | (67) | (263) | (185) | |
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) | (6) | (16) | (16) | |
Other and intersegment eliminations | Other and intersegment eliminations | Total brokerage revenues | |||||
Disaggregation of Revenue [Line Items] | |||||
Noninterest Income | (1) | (1) | (6) | (5) | |
Other and intersegment eliminations | Other and intersegment eliminations | Subtotal securities commissions | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | (1) | 0 | (3) | (4) | |
Other and intersegment eliminations | Other and intersegment eliminations | Mutual and other fund products | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | (1) | 0 | (2) | (2) | |
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 | (1) | (2) | |
Other and intersegment eliminations | Other and intersegment eliminations | Total account and service fees | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | (48) | (54) | (156) | (155) | |
Other and intersegment eliminations | Other and intersegment eliminations | Mutual fund and annuity service fees | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 0 | (1) | (1) | (9) | |
Other and intersegment eliminations | Other and intersegment eliminations | RJBDP fees | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | (44) | (46) | (139) | (131) | |
Other and intersegment eliminations | Other and intersegment eliminations | Client account and other fees | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | (4) | (7) | (16) | (15) | |
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 | 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 | Equity underwriting | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 0 | 0 | 0 | 0 | |
Other and intersegment eliminations | Other and intersegment eliminations | Debt underwriting | |||||
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] | |||||
Noninterest Income | (1) | 1 | (49) | 6 | |
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 |
INTEREST INCOME AND INTEREST _3
INTEREST INCOME AND INTEREST EXPENSE (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Interest income: | ||||
Assets segregated pursuant to regulations | $ 3 | $ 14 | $ 25 | $ 46 |
Trading instruments | 4 | 7 | 17 | 20 |
Available-for-sale securities | 23 | 18 | 60 | 51 |
Margin loans | 18 | 30 | 66 | 93 |
Bank loans, net of unearned income and deferred expenses | 157 | 221 | 561 | 655 |
Loans to financial advisors | 5 | 5 | 15 | 14 |
Corporate cash and all other | 7 | 26 | 55 | 82 |
Total Interest income | 217 | 321 | 799 | 961 |
Interest expense: | ||||
Bank deposits | 7 | 33 | 35 | 105 |
Trading instruments sold but not yet purchased | 1 | 2 | 3 | 6 |
Brokerage client payables | 3 | 5 | 9 | 16 |
Other borrowings | 5 | 5 | 15 | 16 |
Senior notes payable | 24 | 19 | 61 | 55 |
Other | 2 | 9 | 13 | 23 |
Total interest expense | 42 | 73 | 136 | 221 |
Net interest income | 175 | 248 | 663 | 740 |
Bank loan loss (provision)/benefit | (81) | 5 | (188) | (16) |
Net interest income after bank loan loss (provision)/benefit | $ 94 | $ 253 | $ 475 | $ 724 |
SHARE-BASED AND OTHER COMPENSAT
SHARE-BASED AND OTHER COMPENSATION, Share-based Compensation Plans (Details) - Stock Incentive Plan 2012 $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2020USD ($)plan$ / sharesshares | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)plan$ / sharesshares | Jun. 30, 2019USD ($) | |
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 | 100 | 1,700 | ||
RSUs granted during period, weighted-average grant-date fair value (in usd per share) | $ / shares | $ 64.98 | $ 87.76 | ||
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 | $ 22 | $ 20 | $ 89 | $ 81 |
Total pre-tax compensation costs not yet recognized, net of forfeitures | $ 196 | $ 196 | ||
Compensation costs not yet recognized, period of recognition | 3 years 2 months 12 days |
REGULATORY CAPITAL REQUIREMEN_3
REGULATORY CAPITAL REQUIREMENTS (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Sep. 30, 2019 |
Raymond James Financial Inc | ||
Common Equity Tier 1 Capital (to Risk-Weighted Assets) | ||
Actual, amount | $ 6,351 | $ 5,971 |
Actual, ratio | 24.80% | 24.80% |
Requirement for capital adequacy purposes, amount | $ 1,152 | $ 1,085 |
Requirement for capital adequacy purposes, ratio (in hundredths) | 4.50% | 4.50% |
To be well capitalized under regulatory provisions, amount | $ 1,664 | $ 1,567 |
To be well capitalized under regulatory provisions, ratio (in hundredths) | 6.50% | 6.50% |
Tier 1 Capital (to Risk-Weighted Assets) | ||
Actual, amount | $ 6,351 | $ 5,971 |
Actual, ratio | 24.80% | 24.80% |
Requirement for capital adequacy purposes, amount | $ 1,536 | $ 1,446 |
Requirement for capital adequacy purposes, ratio (in hundredths) | 6.00% | 6.00% |
To be well capitalized under regulatory provisions, amount | $ 2,047 | $ 1,928 |
To be well capitalized under regulatory provisions, ratio (in hundredths) | 8.00% | 8.00% |
Total Capital (to Risk-Weighted Assets) | ||
Actual, amount | $ 6,661 | $ 6,207 |
Actual, ratio | 26.00% | 25.80% |
Requirement for capital adequacy purposes, amount | $ 2,047 | $ 1,928 |
Requirement for capital adequacy purposes, ratio (in hundredths) | 8.00% | 8.00% |
To be well capitalized under regulatory provisions, amount | $ 2,559 | $ 2,410 |
To be well capitalized under regulatory provisions, ratio (in hundredths) | 10.00% | 10.00% |
Tier 1 leverage | ||
Actual, amount | $ 6,351 | $ 5,971 |
Actual, ratio | 14.50% | 15.70% |
Requirement for capital adequacy purposes, amount | $ 1,749 | $ 1,525 |
Requirement for capital adequacy purposes, ratio (in hundredths) | 4.00% | 4.00% |
To be well capitalized under regulatory provisions, amount | $ 2,187 | $ 1,906 |
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 | $ 2,247 | $ 2,246 |
Actual, ratio | 12.80% | 13.20% |
Requirement for capital adequacy purposes, amount | $ 790 | $ 764 |
Requirement for capital adequacy purposes, ratio (in hundredths) | 4.50% | 4.50% |
To be well capitalized under regulatory provisions, amount | $ 1,141 | $ 1,103 |
To be well capitalized under regulatory provisions, ratio (in hundredths) | 6.50% | 6.50% |
Tier 1 Capital (to Risk-Weighted Assets) | ||
Actual, amount | $ 2,247 | $ 2,246 |
Actual, ratio | 12.80% | 13.20% |
Requirement for capital adequacy purposes, amount | $ 1,053 | $ 1,018 |
Requirement for capital adequacy purposes, ratio (in hundredths) | 6.00% | 6.00% |
To be well capitalized under regulatory provisions, amount | $ 1,404 | $ 1,358 |
To be well capitalized under regulatory provisions, ratio (in hundredths) | 8.00% | 8.00% |
Total Capital (to Risk-Weighted Assets) | ||
Actual, amount | $ 2,468 | $ 2,458 |
Actual, ratio | 14.10% | 14.50% |
Requirement for capital adequacy purposes, amount | $ 1,404 | $ 1,358 |
Requirement for capital adequacy purposes, ratio (in hundredths) | 8.00% | 8.00% |
To be well capitalized under regulatory provisions, amount | $ 1,755 | $ 1,697 |
To be well capitalized under regulatory provisions, ratio (in hundredths) | 10.00% | 10.00% |
Tier 1 leverage | ||
Actual, amount | $ 2,247 | $ 2,246 |
Actual, ratio | 7.60% | 8.80% |
Requirement for capital adequacy purposes, amount | $ 1,187 | $ 1,021 |
Requirement for capital adequacy purposes, ratio (in hundredths) | 4.00% | 4.00% |
To be well capitalized under regulatory provisions, amount | $ 1,484 | $ 1,276 |
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) | 46.10% | 39.70% |
Net capital | $ 1,183 | $ 1,056 |
Less: required net capital | (51) | (53) |
Excess net capital | $ 1,132 | $ 1,003 |
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, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income for basic earnings per common share: | ||||
Net income | $ 172 | $ 259 | $ 609 | $ 769 |
Less allocation of earnings and dividends to participating securities | 0 | (1) | (1) | (1) |
Net income attributable to RJF common shareholders | 172 | 258 | 608 | 768 |
Income for diluted earnings per common share: | ||||
Net income | 172 | 259 | 609 | 769 |
Less allocation of earnings and dividends to participating securities | 0 | (1) | (1) | (1) |
Net income attributable to RJF common shareholders | $ 172 | $ 258 | $ 608 | $ 768 |
Common shares: | ||||
Average common shares in basic computation (in shares) | 137.1 | 140.4 | 137.9 | 141.8 |
Dilutive effect of outstanding stock options and certain restricted stock units (in shares) | 2.3 | 3.2 | 2.6 | 3 |
Average common shares used in diluted computation (in shares) | 139.4 | 143.6 | 140.5 | 144.8 |
Earnings per common share: | ||||
Basic (in dollars per share) | $ 1.25 | $ 1.84 | $ 4.41 | $ 5.42 |
Diluted (in dollars per share) | $ 1.23 | $ 1.80 | $ 4.33 | $ 5.30 |
Stock options and certain restricted stock units excluded from weighted-average diluted common shares because their effect would be antidilutive (in shares) | 1.8 | 0.2 | 1.6 | 0.5 |
Dividends per common share declared and paid: [Abstract] | ||||
Dividends per common share - declared (in dollars per share) | $ 0.37 | $ 0.34 | $ 1.11 | $ 1.02 |
Dividends per common share - paid (in dollars per share) | $ 0.37 | $ 0.34 | $ 1.08 | $ 0.98 |
SEGMENT INFORMATION, Informatio
SEGMENT INFORMATION, Information Concerning Operations (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)segment | Jun. 30, 2019USD ($) | Sep. 30, 2019USD ($) | |
Segment Reporting Information [Line Items] | |||||
Number of operating segments | segment | 5 | ||||
Revenues: | |||||
Total net revenues | $ 1,834 | $ 1,927 | $ 5,911 | $ 5,717 | |
Pre-tax income | |||||
Total pre-tax income | 198 | 342 | 796 | 1,021 | |
Net interest income (expense): | |||||
Net interest income | 175 | 248 | 663 | 740 | |
Total assets: | |||||
Total assets | 44,682 | 44,682 | $ 38,830 | ||
Goodwill: | |||||
Goodwill | 465 | 465 | 464 | ||
Operating segments | Private Client Group | |||||
Revenues: | |||||
Total net revenues | 1,249 | 1,351 | 4,158 | 3,978 | |
Pre-tax income | |||||
Total pre-tax income | 91 | 140 | 414 | 436 | |
Net interest income (expense): | |||||
Net interest income | 27 | 46 | 106 | 139 | |
Total assets: | |||||
Total assets | 11,655 | 11,655 | 9,042 | ||
Goodwill: | |||||
Goodwill | 276 | 276 | 275 | ||
Operating segments | Capital Markets | |||||
Revenues: | |||||
Total net revenues | 323 | 251 | 881 | 781 | |
Pre-tax income | |||||
Total pre-tax income | 62 | 24 | 119 | 77 | |
Net interest income (expense): | |||||
Net interest income | 2 | 0 | 8 | 3 | |
Total assets: | |||||
Total assets | 2,301 | 2,301 | 2,287 | ||
Goodwill: | |||||
Goodwill | 120 | 120 | 120 | ||
Operating segments | Asset Management | |||||
Revenues: | |||||
Total net revenues | 163 | 177 | 531 | 513 | |
Pre-tax income | |||||
Total pre-tax income | 60 | 65 | 206 | 184 | |
Net interest income (expense): | |||||
Net interest income | 0 | 1 | 1 | 3 | |
Total assets: | |||||
Total assets | 367 | 367 | 401 | ||
Goodwill: | |||||
Goodwill | 69 | 69 | 69 | ||
Operating segments | RJ Bank | |||||
Revenues: | |||||
Total net revenues | 178 | 215 | 604 | 630 | |
Pre-tax income | |||||
Total pre-tax income | 14 | 138 | 163 | 384 | |
Net interest income (expense): | |||||
Net interest income | 169 | 208 | 584 | 610 | |
Total assets: | |||||
Total assets | 28,830 | 28,830 | 25,516 | ||
Operating segments | Other | |||||
Revenues: | |||||
Total net revenues | (20) | (4) | (72) | (2) | |
Pre-tax income | |||||
Total pre-tax income | (29) | (25) | (106) | (60) | |
Total assets: | |||||
Total assets | 1,529 | 1,529 | $ 1,584 | ||
Intersegment eliminations | |||||
Revenues: | |||||
Total net revenues | (59) | (63) | (191) | (183) | |
Other and intersegment eliminations | Other | |||||
Revenues: | |||||
Total net revenues | (79) | (67) | (263) | (185) | |
Net interest income (expense): | |||||
Net interest income | $ (23) | $ (7) | $ (36) | $ (15) |
SEGMENT INFORMATION, Classified
SEGMENT INFORMATION, Classified by Major Geographic Areas (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Sep. 30, 2019 | |
Revenues: | |||||
Total net revenues | $ 1,834 | $ 1,927 | $ 5,911 | $ 5,717 | |
Pre-tax income | |||||
Total pre-tax income | 198 | 342 | 796 | 1,021 | |
Total assets: | |||||
Total assets | 44,682 | 44,682 | $ 38,830 | ||
Goodwill: | |||||
Goodwill | 465 | 465 | 464 | ||
U.S. | |||||
Revenues: | |||||
Total net revenues | 1,706 | 1,793 | 5,501 | 5,318 | |
Pre-tax income | |||||
Total pre-tax income | 191 | 330 | 770 | 994 | |
Total assets: | |||||
Total assets | 41,459 | 41,459 | 35,978 | ||
Goodwill: | |||||
Goodwill | 433 | 433 | 433 | ||
Canada | |||||
Revenues: | |||||
Total net revenues | 86 | 101 | 293 | 290 | |
Pre-tax income | |||||
Total pre-tax income | 5 | 12 | 26 | 35 | |
Total assets: | |||||
Total assets | 3,099 | 3,099 | 2,754 | ||
Goodwill: | |||||
Goodwill | 24 | 24 | 23 | ||
Europe | |||||
Revenues: | |||||
Total net revenues | 42 | 33 | 117 | 109 | |
Pre-tax income | |||||
Total pre-tax income | 2 | $ 0 | 0 | (8) | |
Disposition-related expenses for loss on sale of operations | $ 15 | ||||
Total assets: | |||||
Total assets | 124 | 124 | 98 | ||
Goodwill: | |||||
Goodwill | $ 8 | $ 8 | $ 8 |