July 27, 2011

Raymond James Taps New Exec to Continue PCG Earnings Momentum

The private-client group now has about 5,100 advisors and $278 billion in assets worldwide



After reporting better-than-expected earnings last week, Raymond James Financial said Tuesday that it hired Greg Williams for a new position within the private-client group. Williams will be the senior vice president and managing director of private-client group administration, the company says.

chet helck“Over nearly five decades, Raymond James developed one of the best performing and most respected private-client organizations in the industry,” said company COO Chet Helck (left) in a press release. “With his depth of experience and corporate knowledge, Greg is the perfect choice to help us strengthen and improve our practice.”

Williams is set to improve productivity for the PCG by working with other executives in the group and “further align functions supporting Raymond James financial advisors and their clients,” the company explains. He will report directly to Helck.

Williams is a 17-year veteran of Raymond James and is currently chief administrative officer for the independent-channel subsidiary Raymond James Financial Services, as well as a member of the RJFS board of directors.

"Part of my role is to share best practices," Williams said in an interview Wednesday. For instance, he will work with Raymond James' subsidiaries in the United Kingdom and Canada to expand their business in the independent channel.

"Overall, I'll be working administratively to improve the efficiency of our private-client operations," explained Williams. "We have great products and services and will work to further align them as we make a big push in retirement next year. As we make improvements in efficiency for advisors and their practices that translates into better results for the parent company, as well." 

Quarterly Earnings

Raymond James Financial reported net income of $46.8 million, or $0.37 per share, for the period ended June 30 vs. income of $60.7 million, or $0.48 per share, for the year-ago period on July 20. Analysts had expected the firm to have EPS of $0.33.

Excluding a $45 million pre-tax charge for the repurchase of auction rate securities, net income would have been $74.9 million, or $0.59 per share in the most-recent period, a 23% increase over the prior year’s quarter and a slight decrease from a strong earlier quarter this year, the company says.

Net revenues were $850.4 million, up 14% year over year, and “essentially flat” with the prior quarter, Raymond James said in a press release.

The firm reported quarterly records for assets under management ($36.6 billion) and assets under administration ($278 billion) as of June 30, 2011.

paul reilly“Most of our businesses performed well this quarter,” said CEO Paul Reilly (left), in a press release. The private client group, and Raymond James Bank had particularly good quarters notwithstanding the choppy markets. Asset management and emerging markets also had solid results.

 

PCG Results

The private-client group had 5,093 financial advisors as of June 30 vs. 5,095 a year ago and 5,066 in the prior quarter. In the United States, Raymond James has 4,492 FAs vs. 4,515 a year ago and 4,472 in the previous three-month period.

Client assets under administration were $278 billion as of June 30, up from $231 billion a year ago and $275 billion in the earlier quarter.

Revenues for PCG grew to $557.0 million in the period ended June 30, up from $486.6 million a year ago and $556.6 million in the earlier quarter, Pre-tax income for the unit was $53.3 million, a jump of about 19% from $44.8 million in the year-ago period and an increase of 16% from $46.0 million in the earlier period.

Private-client operations accounted for about 64% of Raymond James’ total sales of $868 million in the most recent quarter and 68% of pre-tax income of $78.7 million.

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