RJF · 10-Q · 2026Q2 · Full report

Interest Rate Environment

RAYMOND JAMES FINANCIAL INC · 2026-08-05 · Importance 54 · Surprise 14

Raymond James’ banking operations are exposed to interest-rate movements through a portfolio of cash, securities-based lending, commercial and real estate loans, residential mortgages, tax-exempt loans and available-for-sale securities funded primarily by client deposits. The firm’s modeled 12-month net interest income is $2.119 billion under an instantaneous 200-basis-point rate increase, up 8% from the base case of $1.967 billion, while a 200-basis-point decline reduces projected net interest income by 12% to $1.724 billion. At June 30, 2026, the available-for-sale securities portfolio had a fair value of $6.50 billion, a 2.46% weighted-average yield and an effective duration of approximately 3.29, implying an estimated 3.29% value change for each 100-basis-point rate movement. Economic value of equity remained within Board-approved limits as of June 30, 2026.

Key facts

• The Fed lowered the federal funds target rate a total of 125 basis points since the beginning of fiscal 2025, bringing the target range to 3.50% to 3.75% by the end of fiscal first quarter of 2026 where it remained through fiscal third quarter of 2026 source
• Bank segment net interest margin decreased to 2.71% from 2.74% for the prior-year quarter source