Both Raymond James (RJF) and Ameriprise Financial (AMP) beat earnings estimates for the quarter ended June 30. The two broker-dealers, which have employee and independent advisors, reported their latest quarterly results late Wednesday.
Raymond James said its net income improved 9% in the quarter ended June 30 to $133.2 million, or $0.91 per share, from $122.7 million, or $0.85 per share, a year earlier. Net revenue was about $1.3 billion.
“We continue to benefit from very robust financial advisor retention and recruiting results, which has helped us achieve quarter-end records for both client assets under administration and financial assets under management,” said CEO Paul Reilly, in a statement. “All of our businesses are well-positioned for sustainable, long-term growth, as we maintain an unwavering commitment to serving our clients.”
The Private Client Group had net revenues of $892 million, a 9% jump from a year ago, and quarterly pretax income of $86.4 million, a 6% year-over-year improvement.
The unit’s assets under administration were $475.4 billion, up 5% from a year ago and 1% from the earlier quarter. Fee-based assets (at 39% of AUA) stood at $186.2 billion on June 30 — a jump of 11% from a year ago.
The number of financial advisors in the company is 6,507, a gain of 256 reps from last year and 123 from the earlier quarter.
“Our success in retaining and recruiting financial advisors in an intensely competitive environment validates the attractiveness of our platform, which provides a unique combination of a client-focused culture enabled by a full-service product and technology offering,” said Reilly.
Based on the PCG’s past 12 months of fees and commissions, which total roughly $2.914 billion, the advisors have an average production level of $447,800 for the year ended June 30.