Raymond James Financial Reports Fiscal Third Quarter of 2025 Results

Rhea-AI Summary

Raymond James Financial (NYSE:RJF) reported strong fiscal Q3 2025 results with record net revenues of $10.34 billion and pre-tax income of $1.98 billion for the first nine months of fiscal 2025, up 10% and 5% respectively year-over-year. The quarter saw net revenues of $3.40 billion, up 5% from the previous year, with net income of $435 million, or $2.12 per diluted share.

The company achieved record client assets under administration of $1.64 trillion and Private Client Group assets in fee-based accounts of $943.9 billion, marking 11% and 15% increases respectively. During Q3, RJF repurchased $451 million of common stock at an average price of $137 per share. The quarter included a $58 million legal reserve related to a settlement of bond underwriting matters.

The company maintained strong capital ratios with a total capital ratio of 24.3% and tier 1 leverage ratio of 13.1%, celebrating its 150th consecutive quarter of profitability.

Positive

• Record net revenues of $10.34B and pre-tax income of $1.98B for first nine months of fiscal 2025
• Record client assets under administration reached $1.64T, up 11% year-over-year
• Private Client Group assets in fee-based accounts hit record $943.9B, up 15%
• Strong capital position with 24.3% total capital ratio
• Domestic Private Client Group net new assets of $11.7B for Q3
• Investment banking revenues increased 17% year-over-year to $203M
• Record net loans of $49.8B, up 10% year-over-year

Negative

• $58M legal reserve increase for settlement of bond underwriting matter
• Total clients' domestic cash sweep balances declined 4% quarter-over-quarter to $55.2B
• Capital Markets segment reported quarterly pre-tax loss of $54M
• Private Client Group pre-tax income decreased 7% year-over-year

Insights

Financial Analyst

Raymond James delivers strong Q3 with record assets under administration despite legal settlement impact on earnings.

Raymond James Financial reported a mixed fiscal Q3 2025, with record client assets under administration of $1.64 trillion (up 11% year-over-year) and quarterly revenues of $3.40 billion (up 5% YoY). While top-line growth remained solid, quarterly net income available to common shareholders decreased to $435 million ($2.12 per diluted share), primarily due to a $58 million legal reserve related to bond underwritings from 2013-2015.

The firm's Private Client Group continues to be the growth engine, with fee-based assets reaching a record $943.9 billion (up 15% YoY), driving a 7% increase in asset management fees to $1.46 billion. The segment attracted $11.7 billion in net new assets during the quarter, representing annualized growth of 3.4%. This strong asset gathering ability demonstrates Raymond James' competitive position in attracting financial advisors and their clients.

Capital Markets performance was mixed, with investment banking revenues up 17% YoY to $203 million, but the segment posted a pre-tax loss of $54 million due to the legal settlement. The Asset Management segment delivered record pre-tax income of $125 million (up 12% YoY) on $291 million in revenue, benefiting from higher financial assets under management of $263.2 billion.

The Bank segment showed impressive growth with net loans reaching $49.8 billion (up 10% YoY), particularly in securities-based lending which grew 5% quarter-over-quarter. The bank's net interest margin expanded to 2.74%, up 7 basis points sequentially, reflecting improved asset mix and lower funding costs.

Raymond James maintained strong capital deployment, repurchasing $451 million of common stock during the quarter at an average price of $137. The firm's capital position remains robust with a total capital ratio of 24.3% and tier 1 leverage ratio of 13.1%, well above regulatory requirements.

The company's diversified business model continues to deliver consistent profitability – this quarter marked Raymond James' 150th consecutive quarter of profit. With record client assets, strong recruiting momentum, and a solid investment banking pipeline, the firm appears well-positioned despite macroeconomic uncertainties.

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

• Record net revenues of $10.34 billion and record pre-tax income of $1.98 billion for the first nine months of fiscal 2025, up 10% and 5%, respectively, over the first nine months of fiscal 2024

• Record client assets under administration of $1.64 trillion and record Private Client Group assets in fee-based accounts of $943.9 billion, up 11% and 15%, respectively, over June 2024

• Quarterly net revenues of $3.40 billion, up 5% over the prior year’s fiscal third quarter and flat compared to the preceding quarter

• Quarterly net income available to common shareholders of $435 million, or $2.12 per diluted share; quarterly adjusted net income available to common shareholders of $449 million(1), or $2.18 per diluted share(1)

• Repurchased $451 million of common stock during the fiscal third quarter

• Annualized return on common equity of 17.1% and annualized adjusted return on tangible common equity of 20.5%(1) for the first nine 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 $435 million, or $2.12 per diluted share, for the fiscal third quarter ended June 30, 2025. Excluding $19 million of expenses related to acquisitions, quarterly adjusted net income available to common shareholders was $449 million(1), or $2.18 per diluted share(1). The results for the period included a $58 million reserve increase associated with the settlement of a legal matter related to bond underwritings for a specific issuer, sold to institutional investors between 2013 to 2015. Although the firm maintains it had strong defenses and denied any liability, given the complexity of the case and the unpredictability of litigation outcomes, it determined to resolve the long-running dispute without admission of wrongdoing.

“This quarter we celebrate the firm’s 150^th consecutive quarter of profitability, highlighting the strength of our diverse and complementary businesses and our ongoing commitment to always putting clients first,” said CEO Paul Shoukry. “We are encouraged by the significant growth in our financial advisor recruiting pipeline, as more advisors continue to recognize our unique culture, comprehensive capabilities, strong balance sheet, and our steadfast commitment to maintaining independence. Our investment banking pipeline remains strong, and we are growing increasingly optimistic about macroeconomic conditions although the environment remains uncertain. Looking ahead, we enter the fiscal fourth quarter well positioned, supported by record client assets and significant capital to drive further business growth.”

Quarterly net revenues increased 5% over the prior year’s fiscal third quarter and approximated the preceding quarter level, with continued growth in asset management and related administrative fees which increased to $1.73 billion. Primarily the result of the impact of the aforementioned legal reserve, net income available to common shareholders decreased. For the fiscal third quarter, annualized return on common equity and annualized adjusted return on tangible common equity were 14.3% and 17.2%(1), respectively.
For the first nine months of the fiscal year, record net revenues of $10.34 billion increased 10%, record earnings per diluted share of $7.35 increased 7%, and record adjusted earnings per diluted share of $7.55(1) increased 6% over the first nine months of fiscal 2024. The Private Client Group segment net revenues and the Asset Management segment net revenues and pre-tax income were record results during the first nine months of fiscal 2025. Annualized return on common equity was 17.1% and annualized adjusted return on tangible common equity was 20.5%(1).

Segment Results

Private Client Group

• Quarterly net revenues of $2.49 billion, up 3% over the prior year’s fiscal third quarter and slightly higher compared to the preceding quarter

• Quarterly pre-tax income of $411 million, down 7% compared to the prior year’s fiscal third quarter and 5% compared to the preceding quarter

• Record Private Client Group assets under administration of $1.57 trillion, up 11% over June 2024 and 7% over March 2025

• Record Private Client Group assets in fee-based accounts of $943.9 billion, up 15% over June 2024 and 8% over March 2025

• Domestic Private Client Group net new assets(2) of $11.7 billion for the fiscal third quarter, or annualized growth from beginning of period assets of 3.4%; Fiscal year-to-date, domestic Private Client Group net new assets of $34.5 billion or 3.3% annualized

• Total clients’ domestic cash sweep and ESP balances of $55.2 billion, down 2% compared to the prior year’s fiscal third quarter and 4% compared to the preceding quarter

Quarterly net revenues rose 3% year-over-year mainly driven by higher asset management and related administrative fees which were partially offset by the impacts of lower short-term interest rates. During the same period, PCG assets in fee-based accounts grew by 15%, primarily due to market appreciation and net asset inflows. This contributed to a 7% rise in asset management and related administrative fees, reaching $1.46 billion. Pre-tax income declined year-over-year primarily due to the impact of lower interest rates.

Capital Markets

• Quarterly net revenues of $381 million, up 15% over the prior year’s fiscal third quarter and down 4% compared to the preceding quarter

• Quarterly investment banking revenues of $203 million, up 17% over the prior year’s fiscal third quarter and down 2% compared to the preceding quarter

• Quarterly pre-tax loss of $54 million reflects the impact of the aforementioned $58 million legal reserve in the quarter

Quarterly net revenues increased 15% over the prior year period, driven mainly by higher investment banking, fixed income brokerage and equity brokerage revenues. Sequentially, quarterly net revenues decreased 4% largely due to lower M&A revenues and fixed income brokerage revenues partially offset by higher underwriting and affordable housing investments business revenues. The quarterly pre-tax loss was largely due to the impact of the aforementioned legal reserve. The investment banking pipeline remains strong and while we are increasingly optimistic regarding macroeconomic conditions, the current environment remains uncertain.

Asset Management

• Quarterly net revenues of $291 million, up 10% over the prior year’s fiscal third quarter and 1% over the preceding quarter

• Record quarterly pre-tax income of $125 million, up 12% over the prior year’s fiscal third quarter and 3% over the preceding quarter

• Record financial assets under management of $263.2 billion, up 15% over June 2024 and 7% over March 2025

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

• Quarterly net revenues of $458 million, up 10% over the prior year’s fiscal third quarter and 6% over the preceding quarter

• Quarterly pre-tax income of $123 million, up 7% over the prior year’s fiscal third quarter and 5% over the preceding quarter

• Record net loans of $49.8 billion, up 10% over June 2024 and 3% over March 2025

• Bank segment net interest margin (“NIM”) of 2.74% for the quarter, up 10 basis points over the prior year’s fiscal third quarter and 7 basis points over the preceding quarter

Net loans increased by 3% over the preceding quarter, primarily due to ongoing growth in securities-based lending, which rose by 5% in the quarter. Bank segment NIM improved by 7 basis points to 2.74%, attributable mainly to a favorable shift in asset mix and a higher proportion of lower cost deposits. These factors contributed to a 6% sequential increase in quarterly net revenues. The credit quality of the loan portfolio remains strong.

Other

The effective tax rate for the quarter was 22.6%, reflecting the favorable impact of nontaxable corporate-owned life insurance gains in the quarter.   During the fiscal third quarter, the firm repurchased common stock of $451 million at an average price of $137 per share. As of June 30, 2025, $749 million remained available under the Board’s approved common stock repurchase authorization. At the end of the quarter, the total capital ratio was 24.3%(3) and the tier 1 leverage ratio was 13.1%(3), both well above regulatory requirements.  

A conference call to discuss the results will take place today, Wednesday, July 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 October 22, 2025. For a listen-only connection to the conference call, please dial: 888-596-4144 (conference code: 3778589).

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 $1.64 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 (RJF) key financial results for Q3 2025?

Raymond James reported Q3 2025 net revenues of $3.40 billion, up 5% year-over-year, with net income of $435 million or $2.12 per diluted share. Adjusted earnings were $2.18 per share.

How much did Raymond James (RJF) spend on stock buybacks in Q3 2025?

Raymond James repurchased $451 million of common stock during Q3 2025 at an average price of $137 per share.

What was Raymond James (RJF) assets under administration in Q3 2025?

Raymond James reached record client assets under administration of $1.64 trillion, representing an 11% increase from June 2024.

How did Raymond James (RJF) investment banking perform in Q3 2025?

Investment banking revenues were $203 million, up 17% year-over-year but down 2% quarter-over-quarter, with management noting a strong pipeline despite uncertain market conditions.

What was the impact of the legal settlement on Raymond James (RJF) Q3 2025 results?

Raymond James recorded a $58 million reserve increase related to settling a legal matter concerning bond underwritings from 2013-2015, which impacted the Capital Markets segment's quarterly results.