Raymond James Financial Reports Fiscal Fourth Quarter and Fiscal 2024 Results

Rhea-AI Summary

Raymond James Financial reported record financial results for fiscal 2024, with annual net revenues reaching $12.82 billion (up 10%) and net income available to common shareholders of $2.06 billion (up 19%). The fourth quarter saw record net revenues of $3.46 billion and net income of $601 million ($2.86 per diluted share). Client assets under administration reached a record $1.57 trillion, with Private Client Group assets in fee-based accounts at $875.2 billion. The company maintained strong capital ratios and returned approximately $1.3 billion to shareholders through share repurchases and dividends in fiscal 2024.

Positive

• Record annual net revenues of $12.82 billion, up 10% YoY
• Record net income of $2.06 billion, up 19% YoY
• Strong return on common equity of 18.9%
• Client assets under administration reached record $1.57 trillion
• Domestic Private Client Group net new assets of $60.7 billion for fiscal 2024
• Investment banking revenues up 58% YoY to $306 million in Q4

Negative

• Bank segment net interest margin declined 25 basis points YoY
• Criticized loans increased to 1.47% from 1.15% in previous quarter

Insights

Financial Analyst

Raymond James delivered exceptional fiscal Q4 and 2024 results, with $3.46B quarterly revenues (13% YoY growth) and $601M net income ($2.86 EPS). The 10% annual revenue growth to $12.82B and 19% increase in net income showcase robust performance across segments. Key highlights include record client assets of $1.57T and strong domestic net new assets of $60.7B for fiscal 2024.

The Private Client Group and Asset Management segments achieved record results, while Capital Markets showed significant improvement with investment banking revenues up 58% YoY. The firm maintains strong capital ratios with a 24.1% total capital ratio and continues shareholder-friendly policies through $900M in share repurchases during fiscal 2024.

The bank segment's performance remains solid despite NIM pressure, with record net loans of $46.0B and well-maintained credit quality metrics.

Market Research Analyst

The market environment has become notably more constructive for Raymond James, particularly in investment banking where M&A activity has picked up significantly. The 28% growth in fee-based assets to $875.2B indicates strong client engagement and recurring revenue potential. The firm's diverse business model is proving resilient, with wealth management providing stable growth while capital markets activities rebound.

The healthy M&A pipeline and improving market conditions suggest continued momentum into fiscal 2025. The 5.5% organic growth rate in domestic net new assets demonstrates strong client acquisition and retention capabilities. The firm's robust capital position and flexible balance sheet provide ample room for both organic growth and potential strategic acquisitions.

ST. PETERSBURG, Fla., Oct. 23, 2024 (GLOBE NEWSWIRE) --

• Record annual net revenues of $12.82 billion and record net income available to common shareholders of $2.06 billion for fiscal 2024, up 10% and 19%, respectively, over fiscal 2023
• Return on common equity of 18.9% and adjusted return on tangible common equity of 23.3%(1) for fiscal 2024
• Record quarterly net revenues of $3.46 billion, up 13% over the prior year’s fiscal fourth quarter and 7% over the preceding quarter
• Record quarterly net income available to common shareholders of $601 million, or $2.86 per diluted share; record quarterly adjusted net income available to common shareholders of $621 million(1), or $2.95 per diluted share(1)
• Record client assets under administration of $1.57 trillion and record Private Client Group assets in fee-based accounts of $875.2 billion, up 25% and 28%, respectively, over September 2023
• Domestic Private Client Group net new assets(2) of $13.0 billion for the fiscal fourth quarter and $60.7 billion for fiscal 2024, annualized growth from beginning of period assets of 4.0% and 5.5%, respectively
• Total clients’ domestic cash sweep and Enhanced Savings Program (“ESP”) balances of $57.9 billion, up 3% compared to both September 2023 and June 2024
• Returned approximately $1.3 billion of capital to shareholders through the combination of share repurchases and dividends in fiscal 2024

Raymond James Financial, Inc. (NYSE: RJF) today reported record net revenues of $3.46 billion and net income available to common shareholders of $601 million, or $2.86 per diluted share, for the fiscal fourth quarter ended September 30, 2024. Excluding $25 million of expenses related to acquisitions, quarterly adjusted net income available to common shareholders was $621 million(1), or $2.95 per diluted share(1).

Record quarterly net revenues increased 13% over the prior year’s fiscal fourth quarter and 7% over the preceding quarter, primarily driven by higher asset management and related administrative fees and investment banking revenues. Record quarterly net income available to common shareholders increased 39% over the prior year’s fiscal fourth quarter largely due to higher net revenues and lower provisions for legal and regulatory matters.

For the fiscal year, record net revenues of $12.82 billion increased 10%, record earnings per diluted share of $9.70 increased 22%, and record adjusted earnings per diluted share of $10.05(1) increased 21% over fiscal 2023. The Private Client Group and Asset Management segments generated record net revenues and pre-tax income for the fiscal year. Return on common equity was 18.9% and adjusted return on tangible common equity was 23.3%(1) for fiscal 2024.

“We generated record net revenues and record net income for the fourth quarter and fiscal year 2024,” said Chair and CEO Paul Reilly. “Our record performance highlights the strength of our diverse and complementary businesses. 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. We are focused on maintaining strong capital ratios and a flexible balance sheet to support our results in any market environment.”

Segment Results
Private Client Group

• Record quarterly net revenues of $2.48 billion, up 9% over the prior year’s fiscal fourth quarter and 2% over the preceding quarter
• Quarterly pre-tax income of $461 million, down 3% compared to the prior year’s fiscal fourth quarter and up 5% over the preceding quarter
• Record annual net revenues of $9.46 billion and record annual pre-tax income of $1.79 billion, up 9% and 1%, respectively, over fiscal 2023
• Record Private Client Group assets under administration of $1.51 trillion, up 25% over September 2023 and 6% over June 2024
• Record Private Client Group assets in fee-based accounts of $875.2 billion, up 28% over September 2023 and 7% over June 2024
• Domestic Private Client Group net new assets(2) of $13.0 billion for the fiscal fourth quarter, or annualized growth from beginning of period assets of 4.0%; Domestic Private Client Group net new assets(2) of $60.7 billion for fiscal 2024, or growth from beginning of year assets of 5.5%
• Total clients’ domestic cash sweep and ESP balances of $57.9 billion, up 3% over both the prior year’s fiscal fourth quarter and the preceding quarter

Record quarterly net revenues grew 9% year-over-year and 2% sequentially primarily driven by higher asset management and related administrative fees and brokerage revenues, reflecting growth of client assets during the year.

“The Private Client Group achieved record results in fiscal 2024 as client assets exceeded $1.5 trillion driven by strong equity markets and net new asset growth,” said Reilly. “In the fiscal year, we generated domestic net new assets of $60.7 billion(2), a growth rate of 5.5%, as we remain focused on retaining, supporting and attracting high-quality financial advisors across our multiple affiliation options.”

Capital Markets

• Quarterly net revenues of $483 million, up 42% over the prior year’s fiscal fourth quarter and 46% over the preceding quarter
• Quarterly pre-tax income of $95 million
• Quarterly investment banking revenues of $306 million, up 58% over the prior year’s fiscal fourth quarter and 77% over the preceding quarter
• Annual net revenues of $1.47 billion, up 21% over fiscal 2023; Annual pre-tax income of $67 million

Quarterly net revenues grew 42% year-over-year and 46% sequentially primarily the result of higher investment banking revenues. M&A and advisory revenues of $205 million grew 45% over the prior year’s fiscal fourth quarter.

“Investment banking results increased significantly driven by robust M&A and advisory revenues as the market environment became more constructive in support of transaction closings in the quarter,” said Reilly. “Our M&A pipeline remains healthy, and we are optimistic investments in our platform and people should drive growth in fiscal 2025.”

Asset Management

• Record quarterly net revenues of $275 million, up 17% over the prior year’s fiscal fourth quarter and 4% over the preceding quarter
• Record quarterly pre-tax income of $116 million, up 16% over the prior year’s fiscal fourth quarter and 4% over the preceding quarter
• Record annual net revenues of $1.03 billion and record annual pre-tax income of $421 million, up 16% and 20%, respectively, over fiscal 2023
• Record financial assets under management of $244.8 billion, up 25% over September 2023 and 7% over June 2024

Record quarterly net revenues grew 17% year-over-year and 4% sequentially largely attributable to higher financial assets under management due to higher equity markets and net inflows into fee-based accounts in the Private Client Group. 

Bank

• Quarterly net revenues of $433 million, down 4% compared to the prior year’s fiscal fourth quarter and up 4% over the preceding quarter
• Quarterly pre-tax income of $98 million, up 26% over the prior year’s fiscal fourth quarter and down 15% compared to the preceding quarter
• Annual net revenues of $1.72 billion and annual pre-tax income of $380 million, down 15% and up 2% compared to fiscal 2023, respectively
• Bank segment net interest margin (“NIM”) of 2.62% for the quarter, down 25 basis points compared to the prior year’s fiscal fourth quarter and 2 basis points compared to the preceding quarter
• Record net loans of $46.0 billion, up 5% over September 2023 and 2% over June 2024

Quarterly pre-tax income increased 26% year-over-year predominantly driven by lower expenses which more than offset a decline in net revenues, which was mostly due to lower NIM. Sequentially, pre-tax income declined 15% as a higher bank loan provision for credit losses more than offset growth in net revenues, which included higher net interest income driven largely by loan growth in both securities-based loans and residential mortgage loans.

The credit quality of the loan portfolio remained solid. Criticized loans as a percent of total loans held for investment ended the quarter at 1.47%, up from 1.15% in the preceding quarter. Bank loan allowance for credit losses as a percent of total loans held for investment was 0.99%, and bank loan allowance for credit losses on corporate loans as a percent of corporate loans held for investment was 1.99%, each relatively flat with the preceding quarter.

Other

The effective tax rate was 20.8% for the quarter, primarily reflecting the favorable impact of non-taxable valuation gains associated with the corporate-owned life insurance portfolio. During the fiscal fourth quarter, the firm repurchased 2.6 million shares of common stock for $300 million at an average price of $115 per share. In total, the firm repurchased 7.7 million shares of common stock for $900 million at an average price of $117 per share in fiscal 2024, leaving approximately $645 million available under the Board of Directors’ approved common stock repurchase authorization. At the end of the quarter, the total capital ratio was 24.1%(3) and the tier 1 leverage ratio was 12.8%(3), both well above regulatory requirements.

A conference call to discuss the results will take place today, Wednesday, October 23, at 5:00 p.m. ET. The live audio webcast, and the presentation which management will review on the call, will be available at www.raymondjames.com/investor-relations/financial-information/quarterly-earnings. An audio replay of the call will be available at the same location until January 22, 2025. For a listen-only connection to the conference call, please dial: 800-715-9871 (conference code: 3778589).

Click here to view full earnings results, earnings supplement, and earnings presentation.

About Raymond James Financial, Inc.

Raymond James Financial, Inc. (NYSE: RJF) is a leading diversified financial services company providing private client group, capital markets, asset management, banking and other services to individuals, corporations and municipalities. The company has approximately 8,800 financial advisors. Total client assets are $1.57 trillion. Public since 1983, the firm is listed on the New York Stock Exchange under the symbol RJF. Additional information is available at www.raymondjames.com.

Forward-Looking Statements

Certain statements made in this press release may constitute “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information concerning future strategic objectives, business prospects, anticipated savings, financial results (including expenses, earnings, liquidity, cash flow and capital expenditures), industry or market conditions (including changes in interest rates and inflation), demand for and pricing of our products (including cash sweep and deposit offerings), anticipated timing and benefits of our acquisitions, and our level of success integrating acquired businesses, anticipated results of litigation, regulatory developments, and general economic conditions.  In addition, future or conditional verbs such as “will,” “may,” “could,” “should,” and “would,” as well as any other statement that necessarily depends on future events, are intended to identify forward-looking statements.  Forward-looking statements are not guarantees, and they involve risks, uncertainties and assumptions.  Although we make such statements based on assumptions that we believe to be reasonable, there can be no assurance that actual results will not differ materially from those expressed in the forward-looking statements.  We caution investors not to rely unduly on any forward-looking statements and urge you to carefully consider the risks described in our filings with the Securities and Exchange Commission (the “SEC”) from time to time, including our most recent Annual Report on Form 10-K, and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, which are available at www.raymondjames.com and the SEC’s website at www.sec.gov.  We expressly disclaim any obligation to update any forward-looking statement in the event it later turns out to be inaccurate, whether as a result of new information, future events, or otherwise.

FAQ

What was Raymond James Financial's (RJF) revenue for fiscal 2024?

Raymond James Financial reported record annual net revenues of $12.82 billion for fiscal 2024, representing a 10% increase from fiscal 2023.

How much did Raymond James (RJF) earn per share in Q4 2024?

Raymond James earned $2.86 per diluted share in Q4 2024, with adjusted earnings of $2.95 per diluted share excluding acquisition-related expenses.

What was Raymond James' (RJF) total client assets under administration in 2024?

Raymond James reported record client assets under administration of $1.57 trillion, representing a 25% increase from September 2023.

How much capital did Raymond James (RJF) return to shareholders in fiscal 2024?

Raymond James returned approximately $1.3 billion to shareholders through share repurchases and dividends in fiscal 2024.