RAYMOND JAMES FINANCIAL, INC.

Red flags

• Net bank loans reached $51.567 billion, up from $45.994 billion, while the allowance for credit losses was $452 million, or only 0.88% of held-for-investment loans.
• Securities-based lending was $19.775 billion, the largest portfolio segment, making collateral values and client leverage important downside variables.
• Total liabilities rose 6% to $75.73 billion; the increase included $2.89 billion of bank deposits and $1.48 billion of senior notes payable, increasing funding and interest-rate sensitivity.
• The firm reports daily malicious cyber activity and acknowledges that layered controls may fail to detect or remediate sophisticated attacks in time.