Raymond James Financial Reports Fiscal Second Quarter of 2025 Results

Rhea-AI Summary

Raymond James Financial (NYSE: RJF) reported strong fiscal Q2 2025 results with quarterly net revenues of $3.40 billion, up 9% year-over-year but down 4% sequentially. Net income reached $493 million, or $2.36 per diluted share, with adjusted earnings of $507 million ($2.42 per diluted share).

The company achieved record first-half fiscal 2025 performance with net revenues of $6.94 billion and pre-tax income of $1.42 billion, up 13% and 15% respectively year-over-year. Client assets under administration grew to $1.54 trillion, while Private Client Group assets in fee-based accounts increased to $872.8 billion.

During Q2, RJF repurchased $250 million of common stock at $146 per share average, followed by an additional $190 million in April 2025 at $125 per share. The company maintains strong capital positions with a total capital ratio of 24.8% and tier 1 leverage ratio of 13.3%.

Positive

• Record first-half fiscal 2025 results with net revenues of $6.94 billion (+13% YoY)
• Strong capital position with total capital ratio of 24.8% and tier 1 leverage ratio of 13.3%
• Private Client Group assets in fee-based accounts up 9% YoY to $872.8 billion
• Record net loans of $48.3 billion, up 9% YoY
• Continued share repurchases totaling $440 million between Q2 and April 2025

Negative

• Quarterly net revenues down 4% sequentially
• Investment banking revenues declined 35% sequentially due to market conditions
• Total clients' domestic cash sweep balances decreased 3% quarter-over-quarter
• Higher effective tax rate of 26.2% due to nondeductible losses
• Pre-tax income decreased 10% sequentially

Insights

Financial Analyst

Raymond James delivered strong YoY growth with record half-year results despite sequential weakness in investment banking, demonstrating business model resilience.

Raymond James Financial's fiscal Q2 2025 results reveal robust year-over-year performance with quarterly revenues of $3.40 billion (+9% YoY) despite being -4% sequentially. The company posted net income of $493 million ($2.36 per share), or $507 million adjusted ($2.42 per share).

The company's diversified business model is proving particularly valuable in the current environment. Most impressive is their first-half fiscal 2025 performance, which set records for both revenues ($6.94 billion, +13% YoY) and pre-tax income ($1.42 billion, +15% YoY). This faster earnings growth relative to revenue indicates margin expansion and operational efficiency.

Segment performance shows varied results: Private Client Group revenue grew 6% YoY despite pre-tax income declining 3%, suggesting some cost pressures. Fee-based assets increased 9% YoY to $872.8 billion, with domestic net new assets of $8.8 billion (annualized growth of 2.6%).

Capital Markets displayed volatility with revenues up 23% YoY but down 18% sequentially, with investment banking particularly affected (down 35% QoQ). The Bank segment delivered standout results with pre-tax income surging 56% YoY on just 2% revenue growth, driven by NIM expansion to 2.67% and record net loans of $48.3 billion.

Capital management remains shareholder-friendly with $250 million in share repurchases during Q2 and an additional $190 million in April, while maintaining strong capital ratios (total capital ratio: 24.8%, tier 1 leverage: 13.3%) well above regulatory requirements.

ST. PETERSBURG, Fla., April 23, 2025 (GLOBE NEWSWIRE) --

• Quarterly net revenues of $3.40 billion, up 9% over the prior year’s fiscal second quarter and down 4% compared to the preceding quarter
• Quarterly net income available to common shareholders of $493 million, or $2.36 per diluted share; quarterly adjusted net income available to common shareholders of $507 million(1), or $2.42 per diluted share(1)
• Client assets under administration of $1.54 trillion and Private Client Group assets in fee-based accounts of $872.8 billion, up 6% and 9%, respectively, over March 2024
• Total clients’ domestic cash sweep and Enhanced Savings Program (“ESP”) balances of $57.8 billion, down 1% compared to March 2024 and 3% compared to December 2024
• Repurchased $250 million of common stock during the fiscal second quarter; Repurchased an additional $190 million of shares in April 2025
• Record net revenues of $6.94 billion and record pre-tax income of $1.42 billion for the first half of fiscal 2025, up 13% and 15%, respectively, over the first half of fiscal 2024
• Annualized return on common equity of 18.4% and annualized adjusted return on tangible common equity of 22.1%(1) for the first six months of fiscal 2025 

Raymond James Financial, Inc. (NYSE: RJF) today reported net revenues of $3.40 billion and net income available to common shareholders of $493 million, or $2.36 per diluted share, for the fiscal second quarter ended March 31, 2025. Excluding $19 million of expenses related to acquisitions, quarterly adjusted net income available to common shareholders was $507 million(1), or $2.42 per diluted share(1).

“I am pleased with our record results for the first six months of fiscal 2025, with record net revenues of $6.94 billion and record pre-tax income of $1.42 billion, up 13% and 15% over the first six months of fiscal 2024, respectively,” said CEO Paul Shoukry. “Financial advisor recruiting activity remains strong across all of our affiliation options, reflecting the attractiveness of our unique advisor- and client-focused culture coupled with leading capabilities enabling advisors to provide high-quality financial advice to their clients. The investment banking pipeline remains robust, although the timing of closings has been impacted by the macroeconomic uncertainty associated with tariff negotiations. Our strong balance sheet, with capital well above regulatory requirements and corporate cash well in excess of our targets, should help us navigate this period from a position of strength.”

Compared to the prior-year quarter, quarterly net revenues increased 9% and pre-tax income increased 10% primarily driven by higher asset management and related administrative fees, brokerage revenues and investment banking revenues. Sequentially, quarterly net revenues and pre-tax income decreased 4% and 10%, respectively, predominantly driven by lower investment banking revenues. The sequential decrease in net income available to common shareholders was also impacted by a higher effective tax rate in the quarter. For the fiscal second quarter, annualized return on common equity and annualized adjusted return on tangible common equity were 16.4% and 19.7%(1), respectively.

For the first six months of the fiscal year, record net revenues of $6.94 billion increased 13%, record earnings per diluted share of $5.22 increased 15%, and record adjusted earnings per diluted share of $5.36(1) increased 14% over the first six months of fiscal 2024. The Private Client Group and Asset Management segments generated record net revenues and pre-tax income during the first six months of fiscal 2025. Annualized return on common equity was 18.4% and annualized adjusted return on tangible common equity was 22.1%(1).

Segment Results
Private Client Group

• Quarterly net revenues of $2.49 billion, up 6% over the prior year’s fiscal second quarter and down 2% compared to the preceding quarter
• Quarterly pre-tax income of $431 million, down 3% compared to the prior year’s fiscal second quarter and 7% compared to the preceding quarter
• Private Client Group assets under administration of $1.48 trillion, up 6% over March 2024 and down 1% compared to December 2024
• Private Client Group assets in fee-based accounts of $872.8 billion, up 9% over March 2024 and nearly flat from December 2024
• Domestic Private Client Group net new assets(2) of $8.8 billion for the fiscal second quarter, or annualized growth from beginning of period assets of 2.6%; Fiscal year-to-date, domestic Private Client Group net new assets of $22.9 billion or 3.3% annualized
• Total clients’ domestic cash sweep and ESP balances of $57.8 billion, down 1% compared to the prior year’s fiscal second quarter and 3% compared to the preceding quarter

PCG quarterly net revenues grew 6% year-over-year primarily driven by higher asset management and related administrative fees which were partially offset by the impacts of lower short-term interest rates. Over the same period, PCG assets in fee-based accounts grew 9% driven by market appreciation and net asset inflows. Sequentially, quarterly net revenues declined 2% mainly due to lower asset management and related administrative fees resulting from fewer billable days in the quarter.

Capital Markets

• Quarterly net revenues of $396 million, up 23% over the prior year’s fiscal second quarter and down 18% compared to the preceding quarter
• Quarterly investment banking revenues of $207 million, up 21% over the prior year’s fiscal second quarter and down 35% compared to the preceding quarter
• Quarterly pre-tax income of $36 million

Year-over-year, quarterly net revenues increased 23%, driven mainly by higher investment banking and fixed income brokerage revenues. Sequentially, net revenues decreased 18% due to lower investment banking revenues, despite higher fixed income brokerage revenues. The macroeconomic uncertainty and heightened volatility resulted in unfavorable market conditions during the quarter which led to decreased investment banking activity; however, the investment banking pipeline remains strong.

Asset Management

• Quarterly net revenues of $289 million, up 15% over the prior year’s fiscal second quarter and down 2% compared to the preceding quarter
• Quarterly pre-tax income of $121 million, up 21% over the prior year’s fiscal second quarter and down 3% compared to the preceding quarter
• Financial assets under management of $245.0 billion, up 8% over March 2024 and slightly above the December 2024 levels

The increase in quarterly net revenues and pre-tax income over the prior year’s fiscal second quarter is largely attributable to higher financial assets under management due to higher market appreciation and net inflows into fee-based accounts in the Private Client Group.

Bank

• Quarterly net revenues of $434 million, up 2% over both the prior year’s fiscal second quarter and the preceding quarter
• Quarterly pre-tax income of $117 million, up 56% over the prior year’s fiscal second quarter and down 1% compared to the preceding quarter
• Record net loans of $48.3 billion, up 9% over March 2024 and 2% over December 2024
• Bank segment net interest margin (“NIM”) of 2.67% for the quarter, up 1 basis point over the prior year’s fiscal second quarter and 7 basis points over the preceding quarter

Net loans grew 2% over the preceding quarter, mainly driven by continued growth of securities-based loans. Bank segment NIM expanded by 7 basis points to 2.67%, largely a result of a favorable asset mix shift, along with a higher portion of lower cost deposits, which contributed to sequential quarterly net revenue growth of 2%. The loan portfolio continues to maintain strong credit quality and healthy reserves.

Other

The effective tax rate for the quarter was 26.2%, reflecting nondeductible losses on the company-owned life insurance portfolio.

During the fiscal second quarter, the firm repurchased common stock of $250 million at an average price of $146 per share. Subsequent to quarter-end, the firm repurchased additional shares of common stock for $190 million at an average price of $125 per share. As of April 21, 2025, approximately $1.01 billion remained available under the Board’s approved common stock repurchase authorization. At the end of the quarter, the total capital ratio was 24.8%(3) and the tier 1 leverage ratio was 13.3%(3), both well above regulatory requirements.

A conference call to discuss the results will take place today, Wednesday, April 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 July 23, 2025. For a listen-only connection to the conference call, please dial: 888-596-4144 (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. Total client assets are $1.54 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.

Media Contact: Steve Hollister
Raymond James
727.567.2824

Investor Contact: Kristina Waugh
Raymond James
727.567.7654

FAQ

What were Raymond James Financial's (RJF) key financial metrics for Q2 2025?

RJF reported Q2 2025 net revenues of $3.40 billion (+9% YoY), net income of $493 million, and earnings of $2.36 per diluted share. Adjusted earnings were $507 million or $2.42 per diluted share.

How much stock did RJF repurchase in Q2 2025 and at what price?

RJF repurchased $250 million of common stock during Q2 at an average price of $146 per share, plus an additional $190 million in April 2025 at $125 per share.

What is Raymond James Financial's (RJF) assets under administration for Q2 2025?

RJF reported total client assets under administration of $1.54 trillion, with Private Client Group assets in fee-based accounts at $872.8 billion, up 6% and 9% year-over-year respectively.

How did RJF's Private Client Group perform in Q2 2025?

The Private Client Group generated quarterly net revenues of $2.49 billion (+6% YoY) and pre-tax income of $431 million, with domestic net new assets of $8.8 billion representing 2.6% annualized growth.

What was RJF's investment banking revenue in Q2 2025?

Investment banking revenues were $207 million, up 21% year-over-year but down 35% sequentially due to macroeconomic uncertainty affecting deal closings.