Net Revenue: Net revenue for the fiscal fourth quarter was $3.46 billion, a record high.
Net Income: Net income available to common stockholders is $601 million.
Earnings per share (EPS): Diluted earnings per share of $2.86.
Adjusted Net Income: Adjusted net income, excluding acquisition-related costs, was $621 million, or $2.95 per diluted share.
Return on common stock: Return on common stock is 21.2% per annum.
Adjusted return on tangible common stock: Annualized adjusted return is 25.8%.
Stock Repurchases: During the quarter, we repurchased 2.6 million shares for $300 million.
Customer Assets: Total assets under management increased to $1.57 trillion.
Private client group assets: fee-based accounts increased to $875 billion.
Financial assets under management: increased to $245 billion.
Domestic net new assets: $13 billion in the quarter, representing 4% annual growth.
Hiring Results: Hired a financial advisor with $100 million in 12-month production and $17.5 billion in client assets.
Private Client Group Revenue: Recorded quarterly net revenue of $2.48 billion.
Capital Markets Revenue: Quarterly net revenue was $483 million, an increase of 42% from the prior year period.
Asset Management Revenue: Recorded net revenue of $275 million.
Banking segment revenues: Net revenues of $433 million.
Net interest margin: Net interest margin for the banking sector is 2.62%.
Compensation cost: $2.16 billion, total compensation ratio 62.4%.
Pre-tax margin: 22% pre-tax margin, adjusted pre-tax margin 22.7%.
Total assets: $83 billion, up 3% sequentially.
Effective tax rate: 20.8% for the quarter.
Release date: October 23, 2024
For a complete record of financial statements, see Complete Record of Financial Statements.
Raymond James Financial, Inc. (NYSE:RJF) reported record fourth-quarter net revenue of $3.46 billion and net income available to common stockholders of $601 million. did.
The company achieved strong annualized returns on common capital of 21.2% and adjusted annualized returns on tangible common capital of 25.8%.
Client assets increased to record levels, with total assets under management increasing 6% sequentially to $1.57 trillion.
The retail customer group generated record quarterly net revenue of $2.48 billion and pre-tax income of $461 million.
Raymond James Financial, Inc. (NYSE:RJF) returned approximately $1.3 billion of capital to shareholders during its fiscal year through stock repurchases and dividends.
The company faced challenges from hurricanes Helen and Milton, which affected communities in the southeast, including its headquarters in St. Petersburg.
Approximately $5 billion in assets will be transferred off the platform in early fiscal year 2025 as the relationship with OSJ leaves the independent contractor sector.
The banking sector’s net interest margin decreased by 2 basis points compared to the previous quarter to 2.62%.
Non-coverage expenses increased 10% sequentially, primarily due to bank loan provisions for credit losses.
Although there are signs of improvement in the deposit sector, the fixed income business still faces challenges.
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Q: Can you tell us more about the performance and future outlook for the Capital Markets division, particularly with regard to M&A activity? A: CEO Paul Reilly believes that interest rate expectations and capital availability are improving the M&A environment. said. The company’s activity has increased significantly and major transactions have been completed. Although specific numbers are not provided, the market is more favorable and there is room for growth. President Paul Shukri said the company’s profit margin was 20.6% this year, a healthy level considering its business structure, adding that the company’s long-term goal is to grow revenue faster than expenses.
Q: What are the factors influencing demand for corporate financing? And how might this change? A: President Paul Shukri says companies are looking for more attractive debt options. He explained that lower interest rates could help as the country seeks M&A activity is an important driver of financing needs, so an increase in M&A could indicate an increase in demand for corporate financing.
Q: Please tell us about your outlook for non-remuneration expenses in the next period and your investment areas. A: President Paul Shukri said that non-compensation spending is primarily related to growth, with technology investments being a key focus. The company aims to remain competitive by providing advisors with best-in-class technology and is expected to continue to grow both in percentage and absolute value.
Q: What is the advisor hiring pipeline like? And what trends are you seeing in terms of advisor retention and recruitment? A: CEO Paul Reilly says he is seeing strong results in both advisor retention and recruitment. , said more businesses are hiring. The company is a target for large teams because of its technology platform and services for high-net-worth individuals. The pipeline remains strong and the company is comfortable with a backlog of orders.
Q: What is your strategy to manage your balance sheet and lending capacity amid rising demand? A: CEO Paul Reilly emphasizes that the company has sufficient cash and capital and a consistent risk appetite I did. The focus is on maintaining low risk on the C&I side and waiting for favorable spreads and risk tolerance. On the customer side, there is plenty of cash available and ready for loans, and the company is not limiting the bank’s growth.
For a complete record of financial statements, see Complete Record of Financial Statements.
This article first appeared on GuruFocus.
