Raymond James Reports 27% Profit Growth, Weaker Cash Sweep Results

Raymond James Financial’s latest earnings topped analysts’ estimates with adjusted profits of $508 million for the period ending June 30 — up 27% from a year ago. Earnings per share rose 29% from the same quarter last year to $2.39, while net revenues jumped 11% to $3.2 billion.

Its shares traded up 4%, at $117, as of 1 p.m. Thursday in New York. 

“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 5.2%,” said Chair and CEO Paul Reilly, who is stepping down from this role next year.

Private Client, Other Results

The firm’s PCG segment had net revenues of $2.42 billion, up 11% from a year ago; its quarterly pre-tax income grew 7% to $441 million.

Assets under administration were $1.42 trillion, up 15% from June 2023, with assets in fee-based accounts totalling $820.6 billion — up 18%. 

In the U.S., net new assets were $16.5 billion in the latest period versus $14.4 billion in the year-ago period. They were $47.7 billion for the nine months ended June 30.

Total domestic cash sweep and related balances in the unit’s Enhanced Savings Program, however, fell 3% from the year-ago period to $56.4 billion. As a result, these balances represented about 4.3% of total U.S. private client assets versus 5.2% a year ago. 

The firm’s advisor headcount is now 8,782 — up 78 from a year ago. 

This includes 4,970 independent advisors, down 80 from June 2023, and 3,812 employee reps, up 158.

“Recruiting activity remains strong and existing and prospective advisors continue to be attracted to our advisor and client-focused culture and leading technology and product offerings,” Reilly said. 

Also in the period ending June 30, the firm’s capital markets unit reported a loss of $14 million, and Raymond James repurchased about 2 million shares of its common stock for $243 million.