Turning to our segment results, PCG, our largest segment, generated record net revenues of $7.7 billion, an increase of 17% over fiscal 2021, and record pre-tax income of $1.0 billion, a 38% increase over 2021. Record net revenues were driven by higher assets in fee-based accounts for most of the year and a robust net increase in the number of financial advisors, along with the benefit of higher short-term interest rates. Fiscal 2022 concluded with PCG assets under administration of $1.04 trillion and PCG assets in fee-based accounts of $586 billion, both down 7% compared to the end of fiscal 2021. Positive impacts of strong net inflows of client assets, which included robust domestic PCG net new assets of approximately $95 billion, or 9% of beginning of period assets, along with the Charles Stanley acquisition, were more than offset by the decline in market values with the S&P 500 declining 17% year-over-year.

We ended the year with approximately 8,680 financial advisors affiliated with the firm, a net increase of nearly 200 advisors. Excluding the impact of advisors transitioning to our RIA and Custody Services (RCS) division, where we typically retain the client assets but do not include the advisors in our firm count, the number of financial advisors increased approximately 420 in fiscal 2022. Despite a competitive environment, our regrettable attrition of advisors remained extremely low at approximately 1% in fiscal 2022. Meanwhile, financial advisors with approximately $320 million of trailing 12-month production and approximately $43 billion of assets at their prior firms joined Raymond James’ domestic independent contractor and employee channels during the year. Our financial advisor recruiting pipeline is strong across all affiliation options as our client-first values and leading technology and product offerings continue to resonate with current and prospective advisors.

The Capital Markets segment had another strong year given the difficult market environment. Net revenues of $1.8 billion and pre-tax income of $415 million, decreased by 4% and 22%, respectively, compared to record results in fiscal 2021. The tailwind we experienced in investment banking activity in fiscal 2021 was replaced in fiscal 2022 with heightened market volatility and geopolitical concerns, reducing activity levels across the industry. Despite these challenges, we generated record merger and acquisition (M&A) revenues of $709 million, which partially offset lower equity and debt underwriting results. The strength in M&A results is a testament to our investments in niche businesses and additions of senior talent.

Fixed income brokerage revenues declined due to lower levels of client activity, particularly with small- and mid-sized depositories, as these clients are experiencing declines in deposits and have less cash available to invest in securities. This dynamic will lead to a challenging environment in fiscal 2023. While this headwind exists, we expect the recently acquired SumRidge Partners to enhance our current position in the rapidly evolving fixed income and trading technology marketplace.

The Asset Management segment generated record net revenues of $914 million, which increased 5%, and pre-tax income of $386 million, which decreased 1% compared to fiscal 2021. Record net revenues were driven by higher PCG assets in fee-based accounts for most of the year. However, financial assets under management ended the year at $174 billion, representing a 9% decline year-over-year, as strong net inflows in fee-based accounts in PCG were offset by fixed income and equity market declines, along with net outflows for Raymond James Investment Management. Financial assets under management started fiscal 2023 lower, however, we are confident that strong growth of assets in fee-based accounts in the PCG segment will drive long-term growth of financial assets under management.

Bank segment net revenues of $1.1 billion increased 61%, while pre-tax income of $382 million increased 4%, over fiscal 2021. Higher loan balances, including nearly $11.5 billion of loans acquired with TriState Capital Bank, and net interest margin (NIM) expansion during the year led to strong revenue growth. Despite strong revenue growth, pre-tax income growth was muted due primarily to a higher bank loan provision for credit losses in fiscal 2022 in contrast to the bank loan benefit for credit losses in the prior year, along with higher Raymond James Bank Deposit Program (RJBDP) fees paid to PCG largely due to rising interest rates. Net loans increased 73% to end the fiscal year at $43.2 billion driven by the loans acquired with TriState Capital Bank, along with the growth of loans to PCG clients and corporate loans at Raymond James Bank. Reflecting higher short-term interest rates and the relatively high concentration of floating-rate assets, the Bank segment’s NIM increased 44 basis points during the fiscal year to 2.39%. The credit quality of the loan portfolio remained strong, with criticized loans as a percent of total loans held for investment ending the fiscal year at 1.14%, down from 3.27% at September 2021. Bank loan allowance for credit losses as a percent of total loans held for investment was 0.91%, and bank loan allowance for credit losses on corporate loans as a percent of corporate loans held for investment was 1.73%. The Bank segment is well positioned for a continued rise in short-term interest rates, and we have ample funding and capital to grow the balance sheet prudently.

Complementing the outstanding performance within our businesses, we also achieved several other notable accomplishments during the fiscal year:

• Our associates and advisors continue to give back and support the communities where we live and work. This year during Raymond James Cares Month, an annual tradition of month-long focused giving, more than 2,800 advisors and associates volunteered over 7,000 hours to benefit approximately 230 charitable organizations across the United States, Canada and the U.K. Additionally, between associate contributions and a company match, Raymond James raised $7.2 million for communities across the United States through its 2021 United Way campaign and our associates raised nearly $450,000 for the American Heart Association through the 2021 Heart Walk. While it is incredible to see our associates and advisors step up year after year for these annual giving events, recently I was humbled by the resilience of our associates, advisors and the community impacted by Hurricane Ian, as well as by the extraordinary response across the firm to assist in the support and recovery for those in need. Associates collected two semi-trucks of supplies, which were sent to our Fort Myers branch system to be distributed by advisors and associates in the area. Additionally, the firm raised close to $1 million from corporate, executive leadership and associate donations to aid in relief efforts.

• In our 2020 pledge to the Black community, we committed to distribute $1.5 million over three years to support advancement of our Black communities, racial equality, financial literacy and empowerment, and volunteerism opportunities. To date, we have distributed $975,000 to 12 high-impact charitable organizations across 10 cities. The remaining funds are expected to be distributed by June 2023, fulfilling the initial three-year commitment. I encourage you to review our 2022 Corporate Responsibility Report to learn more about these organizations. These partnerships are complements to our sustained relationships with national organizations, such as Junior Achievement and Habitat for Humanity, as well as local programs we have cultivated over many years in the Tampa Bay community, where we are headquartered.

• In addition to our six associate inclusion networks, and in partnership with business units across the firm, we have established 20 department-specific diversity & inclusion councils. Our goal across all inclusion networks and councils is to raise cultural awareness, develop leaders, build networks and be a valued resource to our businesses.

• Raymond James was also recognized in other major lists for overall corporate reputation and diversity and inclusion programs, and the number of advisors who were named to industry lists across various categories has grown significantly, approaching 530 advisors.

This year, we also are expressing our deep appreciation for Susan Story’s tenure on the Raymond James Board of Directors. Since joining us in 2008 as a director and becoming our lead independent director in 2016, she’s helped guide us not only to sustained growth and profitability, but also through the Great Recession, COVID-19 and today’s complicated and challenging economic environment. As her time with us comes to an end, I join the other directors in expressing our appreciation for her counsel and contributions, leaving behind an excellent example for the incoming lead independent director Jeff Edwards.

While there are many uncertainties heading into fiscal 2023, I’m confident that with our strong capital and liquidity position, along with a flexible balance sheet, we are well positioned to drive growth across our businesses. In times like these it is even more important that we stay true to our culture – focusing on serving clients, remaining conservative and making decisions for the long term.

Our client-first culture is special – something that has been built day by day through the diligent efforts of our associates and advisors to support each other and clients over the past 60 years. I want to thank every associate and advisor for their unwavering dedication to serving clients, which results in long-term profitability through different market environments.