Raymond James Financial said its profits rose nearly 40% from last year to $601 million, or $2.86 per diluted share, for the period ended Sept. 30. Excluding $25 million of expenses related to acquisitions, adjusted net income jumped 36% to $621 million, or $2.95 per diluted share.
Net revenues of $3.46 billion increased 13% over the prior year's fiscal fourth quarter and 7% over the preceding quarter, mainly due to "higher asset management and related administrative fees and investment banking revenues," the company explained in a press release.
Both its adjusted earnings and revenues for the latest period topped equity analysts' estimates.
Over the past 12 months (for the 2024 fiscal year), the firm grew its net revenues 10% from the year-ago period to $12.82 billion. It also expanded earnings per diluted share by 22% to $9.70, or by 21% on an adjusted basis to $10.05, for the latest fiscal year.
"Our record performance highlights the strength of our diverse and complementary businesses," said Chair and CEO Paul Reilly, in a statement. "We are well positioned entering fiscal 2025 with record client asset levels, healthy pipelines for growth across the business and ample funding to support balance sheet growth."
Private Client Results
Within the firm's Private Client Group, the number of financial advisors jumped by 75 from a year ago to 8,787 as of Sept 30 — with 4,961 independent representatives and 3,826 employee advisors.
The business unit's assets under administration jumped 25% from a year ago to $1.51 trillion, with assets in fee-based accounts growing 28% to $875.2 billion.
In the U.S., net new assets were $13.0 billion in the fiscal fourth quarter, representing an annualized growth rate of 4.0%.
Total domestic cash sweep and related balances were $57.9 billion, up 3% over the prior year's fiscal fourth quarter.
The unit's net revenues grew 9% from a year ago to $2.48 billion in the latest quarter, but its pre-tax income of $461 million was down 3%.
For the full fiscal year, private client net revenues were $9.46 billion, a jump of 9% over 2023 fiscal year, and pre-tax income was $1.79 billion, up 1%.
"In the fiscal year, we generated domestic net new assets of $60.7 billion, a growth rate of 5.5%, as we remain focused on retaining, supporting and attracting high-quality financial advisors across our multiple affiliation options," Reilly said.
One day ahead of its earnings news, Raymond James said it added a team that includes five advisors, who previously managed roughly $1 billion with Merrill Lynch, to its employee channel in Williamsville, New York.
They are now doing business as Scott Klein Gates Gandolfo Wealth Management of Raymond James and serve business owners, endowments and foundations, families and individuals, retirees and retirement plans.
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