Raymond James Financial, a Florida-based financial-services company, has announced impressive results for the end of 2023. The company reported record assets under administration (AUA) of $1.37 trillion and assets under management (AUM) of $215 billion. These figures represent a double-digit year-over-year growth of 17% and 16%, respectively.
Strong Financial Performance
For its fiscal first quarter, which concluded on December 31, Raymond James reported adjusted net income of $514 million. This outstanding performance resulted in record earnings per share of $2.40. The company exceeded the consensus estimate from Zacks Investment Research, which projected earnings per share of $2.25.
Market Trends
As of midday Thursday, Raymond James shares were trading at approximately $111, a slight decrease of 1% compared to the previous day’s close. Meanwhile, the S&P 500 index experienced a 0.3% increase during the same period.
Success in the Private Client Group
Raymond James CEO, Paul Reilly, acknowledged the strength of the company’s largest division, the private client group. This division manages both the employee and independent financial advisors of the company. During the quarter, the private client group attracted an impressive $21.6 billion in net new assets.
Raymond James Financial has achieved remarkable growth and financial success, positioning itself as a leader in the financial-services industry.
Record Results for Raymond James in Last Fiscal Year
In a recent conference call with analysts, Raymond James CEO, Paul Reilly, expressed his astonishment at the company’s record-breaking performance. Despite the uncertainties of the past year, the last fiscal year ended on a high note with record earnings per share and client assets. Reilly attributed this success to the firm’s unwavering commitment to executing their strategic priorities, which center around their advisor and client-focused cultures.
While the private client group experienced a slight decline in advisor headcount in the fiscal fourth quarter of 2023, the group still managed to maintain solid financial advisor retention and recruiting efforts. At the end of 2022, Raymond James reported 8,699 advisors in this group.
Impressively, the private client group closed the latest quarter with a staggering $746.6 billion in fee-based accounts, marking an 18% increase from the previous year. This figure also represents a remarkable 9% increase from the previous quarter. Furthermore, the group closed the period with $1.31 trillion in assets under administration.
The net revenue for the private client group saw a significant 8% increase to $2.23 billion, primarily driven by higher asset management fees and other administrative fees.
Raymond James’s outstanding performance in the last fiscal year is a true testament to their dedication to their advisors and clients. Despite the challenges faced, the firm’s focus on executing strategic priorities has yielded remarkable results, setting them apart in the industry.
Net Revenue Dips by 1%
The fiscal third quarter of 2023 witnessed a slight decline in net revenue, primarily due to a sequential decrease in administrative fees and investment banking revenue. However, this was partially offset by an increase in brokerage fees, according to Raymond James.