- Record client assets under administration of $1.45 trillion
and record Private Client Group assets in fee-based accounts of
$798.8 billion, up 18% and 20%, respectively, over March
2023
- Record quarterly net revenues of $3.12 billion, up 9% over
the prior year’s fiscal second quarter and 3% over the preceding
quarter
- Quarterly net income available to common shareholders of
$474 million, or $2.22 per diluted share; quarterly adjusted net
income available to common shareholders of $494 million(1), or
$2.31 per diluted share(1)
- Total clients’ domestic cash sweep and Enhanced Savings
Program (“ESP”) balances of $58.2 billion, up 11% over March 2023
and slightly above December 2023
- Record net revenues of $6.13 billion and record net income
available to common shareholders of $971 million for the first half
of fiscal 2024, up 8% and 4%, respectively, over the first half of
fiscal 2023
- Annualized return on common equity of 18.3% and annualized
adjusted return on tangible common equity of 22.8%(1) for the first
half of fiscal 2024
Raymond James Financial, Inc. (NYSE: RJF) today reported net
revenues of $3.12 billion and net income available to common
shareholders of $474 million, or $2.22 per diluted share, for the
fiscal second quarter ended March 31, 2024. Excluding $26 million
of expenses related to acquisitions, quarterly adjusted net income
available to common shareholders was $494 million(1), or $2.31 per
diluted share(1).
Record quarterly net revenues increased 9% over the prior year’s
fiscal second quarter and 3% over the preceding quarter, primarily
driven by higher asset management and related administrative fees
which grew to $1.52 billion. Quarterly net income available to
common shareholders increased 12% over the prior year’s fiscal
second quarter, largely due to higher net revenues along with a
legal and regulatory net reserve release of $32 million in the
quarter. Compared to the preceding quarter, net income available to
common shareholders decreased 5%, largely due to a reset of payroll
taxes and salary increases in the fiscal second quarter.
For the first six months of the fiscal year, record net revenues
of $6.13 billion increased 8%, record earnings per diluted share of
$4.54 increased 7%, and record adjusted earnings per diluted share
of $4.71(1) increased 9% over the first half of fiscal 2023. The
Private Client Group segment generated record net revenues and
pre-tax income, and the Asset Management segment produced record
net revenues, during the first six months of the fiscal year. For
this period, annualized return on common equity was 18.3% and
annualized adjusted return on tangible common equity was
22.8%(1).
“We generated record quarterly net revenues of $3.12 billion in
the fiscal second quarter fueled by robust year-over-year growth in
client assets under administration of 18%, reflecting market growth
and solid financial advisor retention and recruiting in the Private
Client Group,” said Chair and CEO Paul Reilly. “Entering the back
half of the fiscal year, we are well positioned with record client
assets and ample capital to support business growth.”
Segment ResultsPrivate Client
Group
- Record quarterly net revenues of $2.34 billion, up 9% over
the prior year’s fiscal second quarter and 5% over the preceding
quarter
- Quarterly pre-tax income of $444 million, up 1% over both
the prior year’s fiscal second quarter and the preceding
quarter
- Record Private Client Group assets under administration of
$1.39 trillion, up 19% over March 2023 and 6% over December
2023
- Record Private Client Group assets in fee-based accounts of
$798.8 billion, up 20% over March 2023 and 7% over December
2023
- Domestic Private Client Group net new assets(2) of $9.6
billion for the fiscal second quarter; Domestic PCG net new
assets(2) of $31.2 billion, or annualized growth from beginning of
period assets of 5.7%, for the first half of the fiscal
year
- Total clients’ domestic cash sweep and ESP balances of $58.2
billion, up 11% over March 2023 and up slightly over December
2023
Record quarterly net revenues grew 9% year-over-year and 5%
sequentially predominantly driven by higher asset management and
related administrative fees, reflecting growth of assets in
fee-based accounts during the year, along with higher brokerage
revenues.
“Our advisor and client-focused culture and robust technology
capabilities continue to drive strong advisor recruiting activity,”
said Reilly. “Record PCG net revenues reflected 19% annual growth
of client assets, driven by rising equity markets and net new
assets(2).”
Capital Markets
- Quarterly net revenues of $321 million, up 6% over the prior
year’s fiscal second quarter and down 5% compared to the preceding
quarter
- Quarterly pre-tax loss of $17 million
- Quarterly investment banking revenues of $171 million, up
18% over the prior year’s fiscal second quarter and 1% over the
preceding quarter
Quarterly net revenues grew 6% over the prior-year quarter
primarily the result of higher investment banking revenues.
Sequentially, quarterly net revenues declined 5%, primarily driven
by lower fixed income brokerage revenues and M&A and advisory
revenues, partially offset by higher debt underwriting
revenues.
“Investment banking revenues increased slightly from the
preceding quarter driven primarily by higher debt underwriting
revenues,” said Reilly. “Our M&A pipeline and new business
activity remain healthy; however, the timing of closings remains
difficult to predict.”
Asset Management
- Record quarterly net revenues of $252 million, up 17% over
the prior year’s fiscal second quarter and 7% over the preceding
quarter
- Quarterly pre-tax income of $100 million, up 22% over the
prior year’s fiscal second quarter and 8% over the preceding
quarter
- Record financial assets under management of $227 billion, up
17% over March 2023 and 5% over December 2023
Record quarterly net revenues grew 17% year-over-year and 7%
sequentially largely attributable to higher financial assets under
management due to higher equity markets and net inflows into
fee-based accounts in the Private Client Group.
Bank
- Quarterly net revenues of $424 million, down 21% compared to
the prior year’s fiscal second quarter and 4% compared to the
preceding quarter
- Quarterly pre-tax income of $75 million, down 18% compared
to both the prior year’s fiscal second quarter and the preceding
quarter
- Bank segment net interest margin (“NIM”) of 2.66% for the
quarter, down 97 basis points compared to the prior year’s fiscal
second quarter and 8 basis points compared to the preceding
quarter
- Net loans of $44.1 billion, up 1% over March 2023 and down
slightly compared to December 2023
Quarterly net revenues declined 21% year-over-year and 4%
sequentially due to lower NIM. The Bank segment’s NIM decreased 8
basis points during the quarter to 2.66%, largely the result of
increased interest expense from higher-cost funding as ESP balances
replaced a portion of lower-cost Raymond James Bank Deposit Program
client cash sweep balances, which were swept to third-party
banks.
The credit quality of the loan portfolio is solid, with
criticized loans as a percent of total loans held for investment
ending the quarter at 1.21%, up from 1.06% in the preceding
quarter. Bank loan allowance for credit losses as a percent of
total loans held for investment was 1.06%, and bank loan allowance
for credit losses on corporate loans as a percent of corporate
loans held for investment was 2.05%.
Other
The effective tax rate for the quarter was 21.8%, reflecting the
favorable impact of nontaxable corporate owned life insurance gains
in the quarter.
During the fiscal second quarter, the firm repurchased 1.70
million shares of common stock for $207 million at an average price
of $122 per share. In April, the firm repurchased an additional $43
million of shares for a total of $400 million to date this fiscal
year leaving approximately $1.14 billion available under the
Board’s approved common stock repurchase authorization. At the end
of the quarter, the total capital ratio was 23.3%(3) and the tier 1
leverage ratio was 12.3%(3), both well above regulatory
requirements.
A conference call to discuss the results will take place today,
Wednesday, April 24, at 5:00 p.m. ET. The live audio webcast, and
the presentation which management will review on the call, will be
available at
www.raymondjames.com/investor-relations/financial-information/quarterly-earnings.
A replay of the call will be available at the same location until
July 24, 2024. For a connection to the conference call, please
dial: 800-715-9871 (conference code: 3778589).
Click here to view full earnings results, earnings
supplement, and earnings presentation.
About Raymond James Financial, Inc.
Raymond James Financial, Inc. (NYSE: RJF) is a leading
diversified financial services company providing private client
group, capital markets, asset management, banking and other
services to individuals, corporations and municipalities. The
company has approximately 8,800 financial advisors. Total client
assets are $1.45 trillion. Public since 1983, the firm is listed on
the New York Stock Exchange under the symbol RJF. Additional
information is available at www.raymondjames.com.
Forward-Looking Statements
Certain statements made in this press release may constitute
“forward-looking statements” under the Private Securities
Litigation Reform Act of 1995. Forward-looking statements include
information concerning future strategic objectives, business
prospects, anticipated savings, financial results (including
expenses, earnings, liquidity, cash flow and capital expenditures),
industry or market conditions (including changes in interest rates
and inflation), demand for and pricing of our products (including
cash sweep and deposit offerings), acquisitions, anticipated
results of litigation, regulatory developments, and general
economic conditions. In addition, future or conditional verbs
such as “will,” “may,” “could,” “should,” and “would,” as well as
any other statement that necessarily depends on future events, are
intended to identify forward-looking statements.
Forward-looking statements are not guarantees, and they involve
risks, uncertainties and assumptions. Although we make such
statements based on assumptions that we believe to be reasonable,
there can be no assurance that actual results will not differ
materially from those expressed in the forward-looking
statements. We caution investors not to rely unduly on any
forward-looking statements and urge you to carefully consider the
risks described in our filings with the Securities and Exchange
Commission (the “SEC”) from time to time, including our most recent
Annual Report on Form 10-K, and subsequent Quarterly Reports on
Form 10-Q and Current Reports on Form 8-K, which are available at
www.raymondjames.com and the SEC’s website at www.sec.gov. We
expressly disclaim any obligation to update any forward-looking
statement in the event it later turns out to be inaccurate, whether
as a result of new information, future events, or otherwise.
Media Contact: Steve Hollister
Raymond James
727.567.2824
Investor Contact: Kristina Waugh
Raymond James
727.567.7654
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