- Record quarterly net revenues of $3.54 billion, up 17% over
the prior year’s fiscal first quarter and 2% over the preceding
quarter
- Quarterly net income available to common shareholders of
$599 million, or $2.86 per diluted share; quarterly adjusted net
income available to common shareholders of $614 million(1), or
$2.93 per diluted share(1)
- Client assets under administration of $1.56 trillion and
record quarter-end Private Client Group assets in fee-based
accounts of $876.6 billion, up 14% and 17%, respectively, over
December 2023
- Domestic Private Client Group net new assets(2) of $14.0
billion for the fiscal first quarter, annualized growth from
beginning of period assets of 4.0%
- Total clients’ domestic cash sweep and Enhanced Savings
Program (“ESP”) balances of $59.7 billion, up 3% compared to both
December 2023 and September 2024
- Increased quarterly cash dividend on common shares 11% to
$0.50 per share and authorized common stock repurchases of up to
$1.5 billion
Raymond James Financial, Inc. (NYSE: RJF) today reported net
revenues of $3.54 billion and net income available to common
shareholders of $599 million, or $2.86 per diluted share, for the
fiscal first quarter ended December 31, 2024. Excluding $20 million
of expenses related to acquisitions, quarterly adjusted net income
available to common shareholders was $614 million(1), or $2.93 per
diluted share(1).
Compared to the prior-year quarter, record quarterly net
revenues increased 17% and net income available to common
shareholders increased 21% primarily driven by higher asset
management and related administrative fees and investment banking
revenues. Sequentially, quarterly net revenues increased 2%
primarily driven by higher asset management and related
administrative fees partially offset by lower affordable housing
investments business revenues. Quarterly net income available to
common shareholders nearly matched the record level from the
preceding quarter. For the fiscal first quarter, annualized return
on common equity and annualized adjusted return on tangible common
equity were 20.4% and 24.6%(1), respectively.
“Fiscal 2025 started strong with year-over-year revenue growth
of 17% and net income growth of 21% in the fiscal first quarter,
driven by record asset management and related administrative fees
and robust investment banking revenues,” said Chair and CEO Paul
Reilly. “Despite some seasonal headwinds, we are optimistic
entering the fiscal second quarter with strong client asset levels,
solid loan growth and healthy activity levels for both financial
advisor recruiting and investment banking.”
Segment ResultsPrivate Client
Group
- Record quarterly net revenues of $2.55 billion, up 14% over
the prior year’s fiscal first quarter and 3% over the preceding
quarter
- Quarterly pre-tax income of $462 million, up 5% over the
prior year’s fiscal first quarter and slightly higher than the
preceding quarter
- Private Client Group assets under administration of $1.49
trillion, up 14% over December 2023 and down 1% compared to
September 2024
- Record quarter-end Private Client Group assets in fee-based
accounts of $876.6 billion, up 17% over December 2023 and up
slightly over September 2024
- Domestic Private Client Group net new assets(2) of $14.0
billion for the fiscal first quarter, or annualized growth from
beginning of period assets of 4.0%
- Total clients’ domestic cash sweep and ESP balances of $59.7
billion, up 3% over both the prior year’s fiscal first quarter and
the preceding quarter
Record quarterly net revenues grew 14% year-over-year and 3%
sequentially primarily driven by higher asset management and
related administrative fees.
“The Private Client Group achieved record revenues in the fiscal
first quarter largely driven by client asset growth over the
prior-year quarter,” said Reilly. “Our client-first values,
multiple affiliation model, and robust technology capabilities
continue to support strong retention and fuel the strength and
quality of the recruiting pipeline. In the fiscal quarter, we
generated domestic net new assets of $14.0 billion(2), an
annualized growth rate of 4.0%, a solid result despite the impact
of the previously-announced departure of one large independent
branch on the end-of-period asset levels.”
Capital Markets
- Quarterly net revenues of $480 million, up 42% over the
prior year’s fiscal first quarter and down 1% compared to the
preceding quarter
- Quarterly investment banking revenues of $317 million, up
86% over the prior year’s fiscal first quarter and 4% over the
preceding quarter
- Quarterly pre-tax income of $74 million, up $71 million over
the prior year’s fiscal first quarter and down $21 million compared
to the preceding quarter
Quarterly net revenues grew 42% year-over-year primarily driven
by robust investment banking growth. Sequentially, quarterly net
revenues declined 1% mostly due to seasonally lower affordable
housing investments business revenues. M&A and advisory
revenues of $226 million grew 92% over the prior year’s fiscal
first quarter and 10% over the preceding quarter.
“The robust M&A results this quarter reflect a second
consecutive quarter of realization of the pipeline and the
investments we’ve made in our platform and people over the years,”
said Reilly. “We remain optimistic for the rest of the fiscal year
as the market environment is more conducive to transaction closings
and our platform and capabilities are well positioned.”
Asset Management
- Record quarterly net revenues of $294 million, up 25% over
the prior year’s fiscal first quarter and 7% over the preceding
quarter
- Record quarterly pre-tax income of $125 million, up 34% over
the prior year’s fiscal first quarter and 8% over the preceding
quarter
- Financial assets under management of $243.9 billion, up 13%
over December 2023 and just under the September 2024
levels
The increase in quarterly net revenues and pre-tax income over
the prior year’s fiscal first quarter is 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 $425 million, down 4% compared to
the prior year’s fiscal first quarter and 2% compared to the
preceding quarter
- Quarterly pre-tax income of $118 million, up 28% over the
prior year’s fiscal first quarter and 20% over the preceding
quarter
- Record net loans of $47.2 billion, up 7% over December 2023
and 3% over September 2024
- Bank segment net interest margin (“NIM”) of 2.60% for the
quarter, down 14 basis points compared to the prior year’s fiscal
first quarter and 2 basis points compared to the preceding
quarter
- Bank loan provision for credit losses was nominal in the
fiscal first quarter, $12 million lower than the prior year’s
fiscal first quarter and $22 million lower than the preceding
quarter
Quarterly pre-tax income increased 20% over the preceding
quarter predominantly driven by a lower bank loan provision for
credit losses, which offset a decline in net revenues. Net loans
grew over the prior year’s fiscal first quarter and preceding
quarter largely driven by continued growth of securities-based
loans and residential mortgages.
The credit quality of the loan portfolio remains solid.
Criticized loans as a percent of total loans held for investment
ended the quarter at 1.26%, down from 1.47% in the preceding
quarter. Bank loan allowance for credit losses as a percent of
total loans held for investment was 0.95%, and bank loan allowance
for credit losses on corporate loans as a percent of corporate
loans held for investment was 1.93%.
Other
The effective tax rate was 19.9% for the quarter, reflecting a
tax benefit recognized for share-based compensation that vested
during the quarter.
In December, the Board of Directors increased the quarterly cash
dividend on common shares 11% to $0.50 per share and authorized
common stock repurchases of up to $1.5 billion, replacing the
previous authorization. During the fiscal first quarter, the firm
repurchased 310 thousand shares of common stock for $50 million at
an average price of $161 per share. As of January 24, 2025,
approximately $1.45 billion remained available under the Board’s
approved common stock repurchase authorization. At the end of the
quarter, the total capital ratio was 25.0%(3) and the tier 1
leverage ratio was 13.0%(3), both well above regulatory
requirements.
A conference call to discuss the results will take place today,
Wednesday, January 29, 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.
An audio replay of the call will be available at the same location
until April 29, 2025. For a listen-only connection to the
conference call, please dial: 888-596-4144 (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. Total
client assets are $1.56 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), anticipated timing and benefits
of our acquisitions, and our level of success integrating acquired
businesses, 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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