Raymond James Financial (RJF) said profits of $125.5 million, or $0.87 per share for the quarter ending June 30, were down 6% from the year-ago period, when it reported net income of $133.2 million, or $0.91 per share.
Adjusted earnings of $134 million, or $0.93 cents per share, topped analysts’ expectations. In addition, revenue improved 3% to $1.39 billion, topping estimates.
“For the first three quarters of fiscal 2016, each of our core operating segments generated record revenues, enabling the firm to generate record net revenues of $3.94 billion during this period, which reinforces the value of our client-focused, diversified business model,” said CEO Paul Reilly in a statement. “Looking forward, our growth should continue to be aided by the new records we achieved for client assets under administration, financial assets under management, the number of Private Client Group financial advisors and net loans outstanding at Raymond James Bank.”
Private Client Group assets held in fee-based accounts ended the quarter at $206.7 billion, representing over 40% of total client assets in the segment and growth of 11% year over year. Total Private Client Group assets rose 7% from last year to $534.5 billion.
Revenues for the unit “were also helped by a rise in account and service fees, which was primarily attributable to higher fees earned on client cash balances in the Raymond James Bank Deposit Program as well as growth in mutual fund service fees,” the company says. Its total sales were $903.2 million, a 1% increase from the year-ago period.