Raymond James Financial Reports Fiscal Third Quarter of 2024 Results
Raymond James Financial reported strong fiscal Q3 2024 results, with record quarterly net revenues of $3.23 billion, up 11% year-over-year. Net income available to common shareholders reached $491 million, or $2.31 per diluted share. Adjusted net income was $508 million, or $2.39 per diluted share.
Highlights include:
- Record client assets under administration of $1.48 trillion, up 15% from June 2023
- Private Client Group assets in fee-based accounts at $820.6 billion, up 18% year-over-year
- Domestic Private Client Group net new assets of $16.5 billion, representing 5.2% annualized growth
- Total clients' domestic cash sweep and ESP balances of $56.4 billion, down 3% from both June 2023 and March 2024
The company repurchased approximately 2 million shares for $243 million during the quarter.
- Record quarterly net revenues of $3.23 billion, up 11% year-over-year
- Net income available to common shareholders of $491 million, up from previous year
- Record client assets under administration of $1.48 trillion, up 15% year-over-year
- Private Client Group assets in fee-based accounts reached $820.6 billion, up 18% year-over-year
- Domestic Private Client Group net new assets of $16.5 billion, representing 5.2% annualized growth
- Record net loans of $45.1 billion, up 4% year-over-year
- Strong capital ratios with total capital ratio at 23.6% and tier 1 leverage ratio at 12.7%
- Total clients' domestic cash sweep and ESP balances down 3% compared to both June 2023 and March 2024
- Bank segment net interest margin decreased to 2.64%, down 62 basis points year-over-year
- Capital Markets segment reported a quarterly pre-tax loss of $14 million
Raymond James Financial's fiscal Q3 2024 results demonstrate robust growth and financial strength. The company reported record quarterly net revenues of
The Private Client Group segment showed particularly strong performance, with record assets under administration of
However, the Bank segment faced some headwinds, with net revenues down
The company's capital position remains strong, with a total capital ratio of
Overall, Raymond James' diversified business model and strong market position have enabled it to deliver solid results in a challenging environment. The company's ability to grow assets and generate new business while maintaining a strong balance sheet positions it well for continued success.
Raymond James' fiscal Q3 results reflect broader trends in the wealth management industry. The record
The company's success in attracting net new assets, with a
However, the decline in clients' domestic cash sweep and Enhanced Savings Program balances, down
The Capital Markets segment's performance, with investment banking revenues up
Looking ahead, Raymond James' strong recruiting pipeline and growing assets position it well to capitalize on industry consolidation and the increasing demand for comprehensive wealth management services. However, the company will need to navigate potential headwinds such as market volatility, interest rate fluctuations and regulatory changes to maintain its growth trajectory.
- Record client assets under administration of
$1.48 trillion and record Private Client Group assets in fee-based accounts of$820.6 billion , up15% and18% , respectively, over June 2023 - Domestic Private Client Group net new assets(1) of
$16.5 billion for the fiscal third quarter, annualized growth from beginning of period assets of5.2% - Record quarterly net revenues of
$3.23 billion , up11% over the prior year’s fiscal third quarter and4% over the preceding quarter - Quarterly net income available to common shareholders of
$491 million , or$2.31 per diluted share; quarterly adjusted net income available to common shareholders of$508 million (2), or$2.39 per diluted share(2) - Total clients’ domestic cash sweep and Enhanced Savings Program (“ESP”) balances of
$56.4 billion , down3% compared to both June 2023 and March 2024 - Record net revenues of
$9.36 billion and record net income available to common shareholders of$1.46 billion for the first nine months of fiscal 2024, up9% and12% , respectively, over the first nine months of fiscal 2023 - Repurchased approximately 2 million shares of common stock for
$243 million during the fiscal third quarter - Annualized return on common equity of
18.2% and annualized adjusted return on tangible common equity of22.5% (2) for the first nine months of fiscal 2024
Raymond James Financial, Inc. (NYSE: RJF) today reported net revenues of
Record quarterly net revenues increased
For the first nine months of the fiscal year, record net revenues of
“We generated another strong quarter of results with record revenues, record client assets, record bank loans and strong domestic Private Client Group net new asset annualized growth of
Segment Results
Private Client Group
- Record quarterly net revenues of
$2.42 billion , up11% over the prior year’s fiscal third quarter and3% over the preceding quarter - Quarterly pre-tax income of
$441 million , up7% over the prior year’s fiscal third quarter and down1% compared to the preceding quarter - Record Private Client Group assets under administration of
$1.42 trillion , up15% over June 2023 and2% over March 2024 - Record Private Client Group assets in fee-based accounts of
$820.6 billion , up18% over June 2023 and3% over March 2024 - Domestic Private Client Group net new assets(1) of
$16.5 billion for the fiscal third quarter, or annualized growth from beginning of period assets of5.2% ; Domestic Private Client Group net new assets(1) of$47.7 billion for the first nine months of fiscal 2024, or annualized growth from beginning of period assets of5.8% - Total clients’ domestic cash sweep and ESP balances of
$56.4 billion , down3% compared to both the prior year’s fiscal third quarter and the preceding quarter
Record quarterly net revenues grew
“As we remain focused on retaining, supporting and attracting high-quality financial advisors, we generated strong domestic net new assets of
Capital Markets
- Quarterly net revenues of
$330 million , up20% over the prior year’s fiscal third quarter and3% over the preceding quarter - Quarterly pre-tax loss of
$14 million - Quarterly investment banking revenues of
$173 million , up23% over the prior year’s fiscal third quarter and1% over the preceding quarter
Quarterly net revenues grew
“Investment banking revenues increased slightly from the preceding quarter driven by higher debt and equity underwriting revenues, whereas M&A revenues declined,” said Reilly. “We continue to be optimistic about our healthy M&A pipeline and new business activity; however, timing of closings remains difficult to predict.”
Asset Management
- Record quarterly net revenues of
$265 million , up17% over the prior year’s fiscal third quarter and5% over the preceding quarter - Quarterly pre-tax income of
$112 million , up26% over the prior year’s fiscal third quarter and12% over the preceding quarter - Record financial assets under management of
$229.3 billion , up14% over June 2023 and1% over March 2024
Record quarterly net revenues grew
Bank
- Quarterly net revenues of
$418 million , down19% compared to the prior year’s fiscal third quarter and1% compared to the preceding quarter - Quarterly pre-tax income of
$115 million , up74% over the prior year’s fiscal third quarter and53% over the preceding quarter - Bank segment net interest margin (“NIM”) of
2.64% for the quarter, down 62 basis points compared to the prior year’s fiscal third quarter and 2 basis points compared to the preceding quarter - Record net loans of
$45.1 billion , up4% over June 2023 and2% over March 2024
Quarterly pre-tax income grew
The credit quality of the loan portfolio remains solid, with criticized loans as a percent of total loans held for investment ending the quarter at
Other
During the fiscal third quarter, the firm repurchased 2 million shares of common stock for
A conference call to discuss the results will take place today, Wednesday, July 24, 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. A replay of the call will be available at the same location until October 23, 2024. For a 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. The company has approximately 8,800 financial advisors. Total client assets are
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.
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