Raymond James Posts Mixed January Sales Data

Assets administered by advisors and managed by the firm, though, were up both year over year and sequentially

Raymond James (RJF) said late Wednesday that its January fees and commissions dropped slightly from last year but improved from the previous period. Meanwhile, assets under management grew both year over year and sequentially.

“January showed significant improvement in the stock market as the S&P 500 was up 4.4% for the month.  This had a positive impact on our operating statistics, especially in the Private Client Group segment,” said CEO Paul Reilly (left), in a statement. 

Securities commissions and fees generated by Raymond James’ 5,400 financial advisors, both private client and institutional, totaled $182 million in January 2012, down 2% from January 2011 but up 6% from December 2011.

Assets under administration grew 6% from last year and 4% from December to total $281 billion in January 2012. In addition, assets under management were up 9% from last year and 6% from last month at $37 billion. “The improvements for the month are a result of both advancing equity markets and continued net inflows,” according to the company.

Raymond January said it also saw improvement over the prior month in both its equity and fixed-income capital markets businesses. The number of lead managed equity offerings increased over last month (to seven from six) and from January last year (when the company had five offerings), though revenues from this work “remain lackluster,” according to the company. 

Net loans at Raymond James Bank were flat compared to last month but up 17% from last year.

The company expects to close its purchase of Morgan Keegan in April and the acquisition of the Allied Irish Bank Canadian loan portfolio later this quarter.

“The Morgan Keegan integration planning has continued to stay on track, and we have successfully completed the sale of 11,075,000 common shares as part of the acquisition financing,” Reilly said. “We remain excited about the long term strategic benefits and potential increase in earnings power this combination will bring.

Raymond James said Friday that its executives had met recently with more than 550 of Morgan Keegan advisors and employees. In addition, the company said Tuesday it raised nearly $360 million for the Morgan Keegan deal through its recent public offering.

“We are pleased with the January positive trend which has continued into February.  Despite the recent results and our optimistic long term outlook, we are cautious in the near term as the economic environment is still uncertain,” Reilly concluded.

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