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Raymond James Adds Advisors, but Private Client Profits Falter

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Raymond James reported a jump in its advisor headcount to 8,239 advisors as of Sept. 30  up 228 from a year ago and 84 from June 30.

Its total Private Client Group asset level was $883.3 billion, up 11% over September 2019. Fee-based asset grew 16% from a year ago to $475.3 billion. 

“We are well positioned entering fiscal 2021, with strong capital ratios and quarter-end records for client assets and the number of Private Client Group financial advisors,” said Chairman and CEO Paul Reilly in a statement.

“Moreover, financial advisor recruiting activity remains robust across all of our affiliation options, and our investment banking pipelines are strong,” Reilly added. 

(The firm’s current fiscal year started Oct. 1.) 

PCG’s quarterly net revenues were $1.39 billion, up 1% over the prior year’s fiscal fourth quarter, while its pretax income of $125 million was down 13% from the year-ago period.

The unit includes 4,835 independent advisors and 3,404 employee advisors.

More Corporate Results

Wednesday’s earnings news comes about six weeks after Raymond James let go some 500 employees or roughly 4% of its workforce, and one month after it announced plans to merge the investment advisor and custody & clearing businesses into the newly created RIA & Custody Services Division.

Firmwide, net revenues were $2.08 billion as of Sept. 30, up 3% from a year ago and ahead of the $1.95 billon Zacks’ consensus estimate.  

This growth was tied to “higher asset management and related administrative fees, investment banking revenues, and brokerage revenues, which were partially offset by the negative impact of lower short-term interest rates,” the company said. 

Meanwhile, adjusted net income was $249 million, or $1.78 per diluted share  down 12% and 11% respectively from the year-ago period, and also ahead of estimates. 

These results exclude one-time charges of $46 million tied to job cuts and a $7 million loss associated with the pending disposition of some operations in France.

“While this fiscal year brought challenges we couldn’t have predicted, I’m incredibly proud of our associates’ and advisors’ unwavering commitment to continue providing excellent service to clients,” Reilly stated. 


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