Raymond James Financial Inc

Latest Results (23.05.2024):

Revenue Growth

In the fiscal second quarter of 2024, Raymond James Financial Inc. reported a significant increase in net revenues, reaching $3.12 billion. This marks a 9% rise compared to the same quarter in the previous year and a 3% increase from the preceding quarter. The growth was primarily driven by higher asset management and related administrative fees, which totaled $1.52 billion.

Net Income Highlights

Raymond James Financial Inc. achieved a net income available to common shareholders of $474 million, or $2.22 per diluted share, in the fiscal second quarter of 2024. After adjusting for $26 million of expenses related to acquisitions, the adjusted net income available to common shareholders was $494 million, or $2.31 per diluted share. This represents a 12% increase over the prior year's fiscal second quarter.

Private Client Group Performance

The Private Client Group segment of Raymond James Financial Inc. saw record quarterly net revenues of $2.34 billion, up 9% year-over-year and 5% from the previous quarter. This segment also reported a quarterly pre-tax income of $444 million, reflecting a 1% increase from both the prior year's fiscal second quarter and the preceding quarter. The growth in this segment was supported by a 19% increase in client assets under administration, reaching $1.39 trillion.

Asset Management Success

Raymond James Financial Inc.'s Asset Management segment also reported impressive results, with record quarterly net revenues of $252 million, which is a 17% increase from the prior year's fiscal second quarter and 7% over the preceding quarter. The segment's pre-tax income rose to $100 million, up 22% year-over-year and 8% sequentially, driven by higher financial assets under management and net inflows into fee-based accounts.

Bank Segment Challenges

The Bank segment of Raymond James Financial Inc. faced some challenges, with quarterly net revenues down 21% year-over-year to $424 million and a 4% decrease from the preceding quarter. The segment's pre-tax income also declined by 18% to $75 million. These results were largely due to a decrease in the net interest margin, which fell by 97 basis points compared to the prior year's fiscal second quarter, primarily because of increased interest expense from higher-cost funding.