Assets and Liabilities - Total assets at fair value on a recurring basis as of December 31, 2025, amount to $8,829 million, with $990 million in Level 1, $7,946 million in Level 2, and $11 million in Level 3[25] - Total liabilities at fair value on a recurring basis as of December 31, 2025, amount to $1,247 million, with $416 million in Level 1, $953 million in Level 2, and $2 million in Level 3[25] - The company reported a total of $8,950 million in assets at fair value on a recurring basis as of September 30, 2025[26] - The company’s total liabilities at fair value on a recurring basis as of September 30, 2025, amount to $1,252 million[26] - Total trading assets as of December 31, 2025, are $1,530 million, which includes $92 million in Level 1 and $1,434 million in Level 2[25] - Total trading liabilities as of December 31, 2025, are $883 million, which includes $229 million in Level 1 and $654 million in Level 2[25] Securities and Investments - Available-for-sale securities as of December 31, 2025, total $6,648 million, with $429 million in Level 1 and $6,219 million in Level 2[25] - The total available-for-sale securities amounted to $6,648 million as of December 31, 2025, down from $6,888 million on September 30, 2025[46] - The company reported unrealized losses of $477 million on total securities, with $185 million in losses for securities held for less than 12 months and $5,442 million for those held for 12 months or more[51] - The total amount of tax-exempt loans remained stable at $1,148 million, with no significant changes in credit quality indicators[94] - The company has unfunded commitments of $112 million as of December 31, 2025, primarily related to renewable energy tax credit investments[144] Loans and Credit Quality - The total loans held for investment increased to $53,715 million as of December 31, 2025, up from $51,603 million as of September 30, 2025, reflecting a growth of approximately 4.1%[78] - Nonaccrual loans totaled $122 million as of December 31, 2025, compared to $109 million as of September 30, 2025, indicating an increase of approximately 11.9%[83] - The allowance for credit losses (ACL) as a percentage of total loans held for investment decreased to 0.82% as of December 31, 2025, from 0.88% as of September 30, 2025[78] - The credit quality of the bank loan portfolio shows that as of December 31, 2025, 21,461 million in SBL loans were classified as "Pass," while 54 million were classified as "Special Mention," indicating a stable credit quality[94] - Total C&I loans classified as "Pass" amounted to $10,708 million, with 15 million classified as "Special Mention," suggesting a focus on maintaining credit quality[94] Revenue and Income - Total revenues for the three months ended December 31, 2025, were $4.176 billion, with net revenues of $3.735 billion after interest expense[169] - Non-interest revenues amounted to $3.169 billion for the same period, with asset management and related administrative fees contributing $1.999 billion[169] - Net interest income for the three months ended December 31, 2025, was $569 million, compared to $529 million for the same period in 2024, reflecting an increase of 7.6%[174] - The company reported a total of $746 million in C&I loans for 2025, compared to $744 million in 2024, indicating a stable performance in this segment[95] - The company reported a total of $49 million in tax-exempt loans for 2025, consistent with the previous year's figures, indicating stability in this segment[95] Capital and Shareholder Information - As of December 31, 2025, RJF's Tier 1 capital ratio was 23.2%, exceeding the required minimum of 8.5%[181] - RJF's total capital ratio as of December 31, 2025, was 24.3%, above the required minimum of 10.5%[181] - The Board of Directors authorized common stock repurchases of up to $2 billion in December 2025, replacing the previous authorization[161] - Common shares outstanding decreased from 203.3 million at the beginning of the period to 197.0 million at the end of the period for the three months ended December 31, 2025[160] - Dividends per common share declared increased to $0.54 for the three months ended December 31, 2025, compared to $0.50 in 2024[163] Regulatory and Compliance - The effective income tax rate for the three months ended December 31, 2025, was 22.7%, higher than the 21.3% effective tax rate for fiscal year 2025[135] - The estimated upper end of the range of reasonably possible aggregate loss for legal and regulatory matters was approximately $10 million as of December 31, 2025[154] - The company has outstanding commitments to extend credit totaling $64,092 million as of December 31, 2025, compared to $62,422 million on September 30, 2025, indicating an increase of 2.68%[140] Miscellaneous - The company announced an agreement to acquire a majority stake in GreensLedge Holdings LLC, expected to close in fiscal 2026, enhancing its securitization and advisory capabilities[146] - An agreement was reached to acquire Clark Capital Management Group, expected to close in fiscal 2026, which will operate as an independent boutique investment manager within the Asset Management segment[147] - The total amount of collateral received under reverse repurchase agreements was $4,354 million as of December 31, 2025, compared to $4,003 million as of September 30, 2025[71] - The total amount of repurchase agreements increased to $368 million as of December 31, 2025, from $325 million as of September 30, 2025[67] - The company redeemed all 80,500 outstanding shares of Series B Preferred Stock on January 2, 2026, for an aggregate redemption value of $81 million[156]

On CNBC's “Halftime Report Final Trades,” Brian Belski, CEO at Humilis Investment Strategies, named Raymond James Financial, Inc. (NYSE:RJF) as his final trade.On the earnings front, Raymond James, on Jan. 28, reported quarterly earnings of $2.86 per share. It missed the analyst consensus estimate of $2.88 per share. The firm reported quarterly sales of $3.735 billion, missing the analyst consensus estimate of $3.92 billion.Anastasia Amoroso, Partners Group managing director and chief investment strategist, ...

Raymond James Financial Inc. (NYSE:RJF) ranks among the biggest publicly traded asset managers. On January 28, Raymond James Financial Inc. (NYSE:RJF) reported mixed first-quarter fiscal 2026 results, with solid revenue growth offset by declining profits and margins across a number of major indicators. The company reported net revenues of $3.7 billion, a 6% rise year-over-year. Conversely, pre-tax income fell 3% from the same period last year, while net income available to common shareholders fell 6% year- ...

You can find original article here WealthManagement. Subscribe to our free daily WealthManagement newsletters. Raymond James, the wealth manager and investment bank that was touting its long-term recruiting focus on earnings this week, announced Friday it has brought on an advisory team from Bank of America’s Merrill Lynch that had been managing $1 billion in client assets. The team of four financial advisors and two client service associates has joined Raymond James’ employee advisor channel to serve f ...

Core Insights - Raymond James Financial reported a 22% increase in recruiting and retention-related compensation in its fiscal first quarter ending December 31, 2025, as part of its strategy to attract financial advisors [1][5] - The firm successfully recruited advisors with approximately $13 billion in client assets and a trailing 12-month production of $96 million, marking a strong performance despite seasonal slowdowns [2] - The company achieved an annualized net new asset growth of 8%, totaling $31 billion, which is the second-best result in its history [2] Recruitment and Advisor Growth - The recruiting activity at Raymond James is described as robust and broad-based, with a recent tilt towards independent contractor channels [3] - As of the end of fiscal year 2025, the firm reached a record of 8,943 financial advisors, reflecting a 2% increase from the previous year [3] Competitive Landscape - Increased competition is noted in the financial advisory space, particularly from private equity-backed firms, but Raymond James emphasizes its long-term stability and ongoing investments in technology [4] - The firm recently introduced a proprietary artificial intelligence agent for advisors, named Rai, to enhance its service offerings [4] Financial Metrics - The recruiting and retention-related compensation for the first fiscal quarter was reported at $107 million, a 22% increase quarter-over-quarter [5] - The average compensation ratio for advisors was 65.4%, excluding acquisition-related expenses, with total compensation expenses amounting to $2.45 billion [6]

Key Takeaways RJF posted fiscal Q1 adjusted EPS of $2.86, beating estimates but down 2% year over year.Revenues rose 6% to a record $3.74B, driven by asset management and client asset growth.Capital markets revenues fell 21%, and non-interest expenses climbed 8% from the prior year.Raymond James’ (RJF)  first-quarter fiscal 2026 (ended Dec. 31) adjusted earnings of $2.86 per share beat the Zacks Consensus Estimate of $2.83. However, the bottom line declined 2% from the prior-year quarter.Results benefited p ...

In order to continue retaining and attracting the best advisers, we continue making investments in our platform and offerings. For example, our private wealth adviser program and expanded alternative investments platform supports advisers and focus on high net worth clients. We continue to make investments and implement solutions to automate and streamline processes that provide advisers with incremental time to invest in their client relationships. Highlighting this is our newly launched proprietary digita ...

Financial Data and Key Metrics Changes - The company reported record net revenues of $3.7 billion for the fiscal first quarter, with net income available to common shareholders at $562 million and earnings per diluted share of $2.79 [12] - Adjusted net income available to common shareholders was $577 million, resulting in adjusted earnings per diluted share of $2.86, with a pre-tax margin of 19.5% and an adjusted pre-tax margin of 20% [13] - The annualized return on common equity was 18%, and the annualized adjusted return on tangible common equity was 21.4% [13] Business Line Data and Key Metrics Changes - The Private Client Group generated pre-tax income of $439 million on record quarterly net revenues of $2.77 billion, driven by higher assets under administration [14] - The Capital Markets segment generated quarterly net revenues of $380 million and a pre-tax income of $9 million, with revenues declining year-over-year and sequentially due to lower M&A and advisory revenues [14][15] - The asset management segment achieved record pre-tax income of $143 million on record net revenues of $326 million, attributed to higher financial assets under management and strong net inflows [15] - The bank segment generated net revenues of $487 million and record pre-tax income of $173 million, with net interest income growing 6% sequentially [15] Market Data and Key Metrics Changes - The company reported net new asset annualized growth of 8% this quarter, with $31 billion of net new assets, marking the second-best quarter ever [5][31] - Total client assets recruited over the past twelve months exceeded $69 billion across all platforms, reflecting strong recruiting momentum [6] Company Strategy and Development Direction - The company is focused on long-term capital deployment, including investments in technology, acquisitions, and share repurchases, with a commitment to maintaining a strong balance sheet [5][10] - Recent acquisitions, including Clark Capital Management and GreensLedge, are aimed at enhancing the platform and expanding capabilities [9][11] - The company emphasizes a culture that respects advisor independence and ownership, which is seen as a differentiator in attracting and retaining financial advisors [7][32] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth driven by a robust advisor recruiting pipeline and strong commitments from prospective advisors [7] - The company acknowledged headwinds from lower interest rates and seasonal impacts typical in the second fiscal quarter but remains focused on generating long-term sustainable growth [27][28] - Management highlighted the importance of personal relationships and a stable platform for advisors, which is expected to differentiate the company in a competitive environment [28][41] Other Important Information - The company repurchased $400 million of common stock at an average share price of $162 during the quarter, with a Tier 1 Leverage Ratio of 12.7% [11][24] - The effective tax rate for the quarter was 22.7%, with an expectation of approximately 24%-25% for fiscal 2026 [24] Q&A Session Summary Question: On net new assets and areas of strength - Management noted that $31 billion of net new assets in the quarter was broad-based, with strong retention of existing advisors and a robust recruiting activity [31][32] Question: On sustainability of net new assets growth - Management expressed confidence in sustaining growth based on strong pipelines and advisor satisfaction, despite competitive pressures [41][54] Question: On capital markets outlook and revenue growth - Management indicated a strong pipeline in capital markets, with expectations for revenue to improve above the current quarter's level [46][61] Question: On M&A results and advisory performance - Management acknowledged challenges in comparing results with peers but emphasized long-term growth trends and sector expertise [82][84] Question: On non-compensation expenses and technology investments - Management highlighted ongoing investments in technology as a key driver of non-compensation expenses, balancing growth with operational efficiency [88][89]

Raymond James Financial (NYSE:RJF) Q1 2026 Earnings call January 28, 2026 05:00 PM ET Company ParticipantsButch Oorlog - CFOCraig Siegenthaler - Managing Director and the North American Head of Diversified FinancialsDevin Ryan - Director of Financial Technology ResearchKristie Waugh - SVP of Investor RelationsPaul Shoukry - CEOConference Call ParticipantsBen Budish - Senior Equity AnalystBill Katz - Senior Equity AnalystBrennan Hawken - Managing Director and Senior Equity AnalystDan Fannon - Managing Direct ...

Raymond James Financial (NYSE:RJF) Q1 2026 Earnings call January 28, 2026 05:00 PM ET Speaker8Good evening, and welcome to Raymond James Financial's Fiscal First Quarter 2026 earnings call. This call is being recorded and will be available for replay for 30 days on the company's investor relations website. I'm Christie Waugh, Senior Vice President of Investor Relations. Thank you for joining us. With me on the call today are Chief Executive Officer, Paul Shoukry, and Chief Financial Officer, Butch Oorlog. T ...