Total client assets under administration (AUA) reached $1.51 trillion in the PCG segment, marking a 25% increase compared to the previous year. This growth reflects successful client acquisition and retention strategies.

The firm continues to emphasize the recruitment and retention of financial advisors, with a department dedicated to providing practice education and management resources. This is a key strategy for sustaining long-term growth and client service.

The acquisition of TriState Capital has broadened the firm's service offerings and client base, particularly in the commercial banking and asset management sectors. This strategic move enhances diversification and revenue streams.

The compensation ratio, or the ratio of compensation, commissions and benefits expense to net revenues, was 64.1%, compared with 62.8% for the prior year. The increase in the compensation ratio primarily resulted from changes in our revenue mix due to increases in compensable revenues compared with the prior year, as well as a decrease in combined net interest income and RJBDP fees from third-party banks, which have little associated direct compensation.

The company has developed a business continuity program to provide reasonable assurance that operations will continue in the event of disruptions at critical facilities or other business disruptions. This demonstrates proactive risk management and preparedness.

The firm conducts ongoing and robust succession planning for roles within two levels of the Executive Committee, ensuring a strong pipeline of candidates for senior positions. This indicates a commitment to leadership development and organizational stability.

The company acknowledges the ongoing threat of cyber-attacks and information security breaches, emphasizing the potential for significant liability and reputational damage. This highlights the importance of robust cybersecurity measures.

The firm notes the increasing pace and breadth of rulemaking affecting financial and public company regulation, as well as heightened scrutiny from regulators. This could lead to increased compliance costs and potential penalties.

Significant volatility in our clients' cash sweep and bank deposit balances and higher costs in sourcing such balances could negatively affect our net revenues, our Bank segment's growth, and our regulatory capital ratios.

The financial services industry is intensely competitive, with competition from larger securities firms, banks, insurance companies, and fintech companies. This necessitates continuous innovation and client focus.

The firm's ability to compete effectively depends on attracting, retaining, and motivating qualified financial advisors, investment bankers, and other specialized personnel. The labor market continues to experience elevated levels of turnover and competition.

The PCG business faces risks from financial advisors departing to form independent RIAs or joining third-party RIAs, reducing the number of affiliated advisors and reported AUA.

The firm emphasizes the importance of technology to increase efficiency and reduce costs, highlighting the technical and financial risks associated with developing and maintaining technology systems.

The business continuity program has been developed to provide reasonable assurance that the company will continue to operate in the event of disruptions at critical facilities or other business disruptions. This ensures operational stability.

The amount of attorneys' fees incurred in connection with the defense of litigation, claims and/or regulatory matters could be substantial and might materially and adversely affect our results of operations.

Like other financial services firms, we experience malicious cyber activity directed at our computer systems, software, networks, and users on a daily basis. We seek to continuously monitor for and nimbly react to any and all such malicious cyber activity, and we develop our systems to protect our technology infrastructure and data from misuse, misappropriation, or corruption.

We also rely on numerous third-party service providers to conduct other aspects of our business operations, and we face similar risks relating to them. While we regularly conduct security assessments on these third-party vendors, we cannot be certain that their information security protocols are sufficient to withstand a cyber-attack or other security breach.

Communications and information processing expenses increased due to continued investments in technology to benefit our clients and advisors and to support our growth.

During the year ended September 30, 2024, we repurchased 7.7 million shares of our common stock under the Board of Directors' common stock repurchase authorization for $900 million at an average price of $117 per share.

The company continues to invest in human talent and innovative technology in order to better manage cybersecurity risk.

In total, we returned $1.3 billion of capital to shareholders through the combination of share repurchases and dividends in the fiscal year.

Our enhanced compensation practices aim to achieve pay equity at all organizational levels for female and ethnically diverse associates. Each year, we conduct pay equity studies in the U.S., U.K., and Canada.

To that end, we offer programs including healthcare insurance, health and flexible savings accounts, paid time off, family leave, flexible work arrangements, tuition assistance, counseling services, as well as on-site services at our corporate offices in St. Petersburg, Florida and Memphis, Tennessee, which include health clinics and a fitness center.

We are subject to a variety of risks, including reputational risk, associated with environmental, social, and governance matters. As a large financial institution, we have multiple stakeholders, including our shareholders, clients, associates, federal and state regulatory authorities, and the communities in which we operate, and these stakeholders will often have differing priorities and expectations regarding such matters.

We are engaged in various financial services businesses. As such, we are affected by domestic and international macroeconomic and political conditions, as well as economic output levels, interest and inflation rates, employment levels, prices of commodities, consumer confidence levels, changes in consumer spending, international trade policy, and fiscal and monetary policy.

Macroeconomic conditions may also be negatively affected by domestic or international events, including natural disasters, political unrest, the indirect impact of wars and conflicts, such as the wars in Ukraine and Israel, or public health epidemics and pandemics, as well as by a number of factors in the global financial markets that may be detrimental to our operating results.

The labor market remains competitive, and we face competition for talent across all aspects of our business, as well as competition with non-traditional firms, such as technology companies.