As the Dow Jones industrial average ended the day above 20,000 on Wednesday, Raymond James Financial reported earnings and revenue for the final three months of 2016 that beat analysts’ estimates.
The firm had net income of $146.6 million, or $1.00 per share, in the period ending Dec. 31 vs. $106.3 million, or $0.73 per share — a jump of 38%. Meanwhile, sales grew 17% year over year to $1.49 billion.
“We are proud that we were able to generate record quarterly net revenues enabled by record net revenues in several of our core operating segments,” said CEO Paul Reilly, in a statement. “We are also encouraged by ending the quarter with records for several of our key revenue drivers including client assets under administration, financial assets under management and net loans at RJ Bank.”
The advisor division says it had quarterly net revenues of $1.04 billion, a jump of 19% over the year-ago period and 8% over the prior quarter.
Quarterly pretax income was $73.4 million, an increase of 6% from a year ago but down 31% from the preceding quarter; the company says this decline resulted primarily from “elevated reserves associated with legal matters.”
Assets under administration ended the year at $585.6 billion, a jump of 24% from December 2015 and 2% from September 2016. Private Client Group assets in fee-based accounts stand at $240.2 billion, or 41% of total AUA, representing a 26% increase from last year and a 4% jump from the earlier quarter.
The firm says revenues for the unit were driven by strong growth of assets in fee-based accounts, increased earnings on cash balances and higher transactional commissions. They also benefited from the Alex. Brown and 3Macs acquisitions, which closed during the quarter ended Sept. 30.