Fiscal 2Q25 Results Certain statements made in this presentation and the associated conference call may constitute "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information concerning future strategic objectives, business prospects, anticipated savings, financial results (including expenses, earnings, liquidity, cash flow and capital expenditures), industry or market conditions (including changes in interest rates and inflation), ...

Raymond James Financial, Inc. (RJF) reported $3.4 billion in revenue for the quarter ended March 2025, representing a year-over-year increase of 9.1%. EPS of $2.42 for the same period compares to $2.31 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $3.43 billion, representing a surprise of -0.72%. The company delivered an EPS surprise of -0.82%, with the consensus EPS estimate being $2.44.While investors scrutinize revenue and earnings changes year-over-year and how they compare ...

April 23, 2025 FOR IMMEDIATE RELEASE Media Contact: Steve Hollister, 727.567.2824 Investor Contact: Kristina Waugh, 727.567.7654 raymondjames.com/news-and-media/press-releases RAYMOND JAMES FINANCIAL REPORTS FISCAL SECOND QUARTER OF 2025 RESULTS ST. PETERSBURG, Fla. – Raymond James Financial, Inc. (NYSE: RJF) today reported net revenues of $3.40 billion and net income available to common shareholders of $493 million, or $2.36 per diluted share, for the fiscal second quarter ended March 31, 2025. Excluding $ ...

Core Insights - Raymond James Financial, Inc. reported record net revenues of $3.40 billion and net income of $493 million for the fiscal second quarter ended March 31, 2025, with adjusted net income of $507 million [1][5] - The company achieved record net revenues of $6.94 billion and pre-tax income of $1.42 billion for the first half of fiscal 2025, reflecting a 13% and 15% increase over the same period in fiscal 2024 [2][3] Financial Performance - Quarterly net revenues increased by 9% compared to the prior year's fiscal second quarter, while pre-tax income rose by 10%, driven by higher asset management fees, brokerage revenues, and investment banking revenues [2][5] - Sequentially, quarterly net revenues and pre-tax income decreased by 4% and 10%, respectively, primarily due to lower investment banking revenues [2][5] - For the first six months of fiscal 2025, earnings per diluted share reached $5.22, a 15% increase year-over-year, with adjusted earnings per diluted share at $5.36, up 14% [3] Segment Results - The Private Client Group and Asset Management segments generated record net revenues and pre-tax income during the first half of fiscal 2025 [3] - Capital Markets segment saw a 23% year-over-year increase in quarterly net revenues, mainly from higher investment banking and fixed income brokerage revenues, although there was an 18% sequential decrease due to lower investment banking activity [8][15] Client Assets and Capital Management - Client assets under administration totaled $1.54 trillion, with Private Client Group assets in fee-based accounts at $872.8 billion, reflecting a 6% and 9% increase, respectively, over March 2024 [5][6] - The company repurchased $250 million of common stock during the fiscal second quarter and an additional $190 million in April 2025, with approximately $1.01 billion remaining under the repurchase authorization [17] Tax and Regulatory Compliance - The effective tax rate for the quarter was 26.2%, influenced by nondeductible losses on the company-owned life insurance portfolio [13] - The total capital ratio stood at 24.8% and the tier 1 leverage ratio at 13.3%, both well above regulatory requirements [17]

Core Viewpoint - Raymond James (RJF) is expected to report a year-over-year increase in earnings and revenues for the second quarter of fiscal 2025, with earnings estimated at $2.44 per share, reflecting a 5.6% growth from the previous year, and revenues projected at $3.43 billion, indicating a 9.9% increase [1][3]. Financial Performance - In the last quarter, RJF's earnings surpassed the Zacks Consensus Estimate, driven by strong performance in investment banking and brokerage within the Capital Markets segment, alongside solid results from the Private Client Group and Asset Management segments [2]. - The consensus estimate for investment banking fees is $255.8 million, representing a 42.9% year-over-year increase, while RJF's own estimate is $253.1 million [7]. - Trading revenues are anticipated to show solid growth due to robust client activity and market volatility during the quarter [8]. Interest Income and Expenses - The Federal Reserve maintained interest rates at 4.25%-4.5%, which is expected to have a favorable impact on RJF's net interest income (NII), although higher funding costs may offset some benefits [9]. - The consensus estimate for interest income is $993.1 million, indicating a decline of 5.3%, while RJF's estimate is $1.01 billion [10]. - Total non-interest expenses are projected to reach $2.75 billion, reflecting a 9.6% year-over-year increase due to competitive pressures and inflation [12]. Management Outlook - Management expects asset management and related administrative fees to decline nearly 2% from the prior quarter [13]. - The company has a history of earnings surprises, having outperformed the Zacks Consensus Estimate three times in the last four quarters, with an average beat of 7.75% [3]. Market Conditions - The global mergers and acquisitions landscape showed marginal improvement, primarily driven by the Asia Pacific region, although overall deal value and volume were less impressive than anticipated [4]. - The IPO market is exhibiting cautious optimism amid market volatility and rising flotation costs, while bond issuance volume remains strong due to solid investor demand [6].

Core Insights - Raymond James has launched its proprietary AI Search technology, which utilizes generative artificial intelligence to enhance service excellence for financial advisors and associates [1] - The firm is committed to investing in innovation that improves service levels and saves time for advisors by providing a streamlined question and answer experience [2] - The strategic framework for AI innovation at Raymond James is built on three pillars: data-driven insights, enhanced service models, and secure applications [3] Technology and Investment - AI Search is designed to reduce the time advisors spend searching for information by integrating into existing knowledge centers, thus avoiding the need for new system adoption [2] - The firm invests $975 million annually in technology improvements to support the advisor-client relationship [5] - AI Search includes a real-time voting system to gather feedback on the quality of its results, ensuring reliability [3] Development and Implementation - The development of AI Search includes human checkpoints to minimize errors and maintain transparency and flexibility [4] - The technology is developed in close collaboration with financial advisors to ensure it meets their needs [5] Company Overview - Raymond James Financial, Inc. is a diversified financial services company with total client assets of $1.58 trillion [6]

Company Overview - Raymond James Financial, Inc. (RJF) shares increased by 9.2% to close at $136.28, following a period of 10.6% loss over the past four weeks, indicating a significant recovery in stock performance [1][2] - The stock's rally was supported by strong trading volume, with more shares exchanged than usual, reflecting heightened investor interest [1] Market Context - The surge in RJF shares was attributed to broader market strength, particularly after President Donald Trump's announcement of a 90-day suspension on tariffs for non-retaliating countries, which alleviated trade tensions and improved market sentiment [2] Earnings Expectations - RJF is projected to report quarterly earnings of $2.48 per share, representing a year-over-year increase of 7.4%, with expected revenues of $3.45 billion, up 10.6% from the previous year [3] - However, the consensus EPS estimate for the quarter has been revised 4% lower in the last 30 days, which may indicate potential challenges in sustaining stock price appreciation [4] Industry Comparison - RJF operates within the Zacks Financial - Investment Bank industry, where another company, Robinhood Markets, Inc. (HOOD), saw a significant increase of 23.5% in its stock price, closing at $42.21, despite a -6% return over the past month [4] - Robinhood's consensus EPS estimate for its upcoming report has changed by -0.6% to $0.35, reflecting a substantial year-over-year increase of 94.4% [5]

Core Insights - Raymond James is enhancing its leadership team to strengthen its platform for financial advisors, appointing Doug Brigman as president of Asset Management Services and Michelle Lynch as senior vice president of Practice Management and Growth Consulting [1][6]. Group 1: Leadership Appointments - Doug Brigman will assume the role of president of Asset Management Services effective October 1, 2025, succeeding Erik Fruland, who is retiring after over 34 years with the firm [2]. - Brigman has been with Raymond James since 2008 and has held various leadership positions, including chief administrative officer and president of Raymond James Insurance Group [3]. - Michelle Lynch will take on the newly created role of senior vice president, Practice Management and Growth Consulting, effective May 5, 2025, focusing on supporting financial advisors throughout their business lifecycle [6]. Group 2: Strategic Focus - The firm aims to provide a premier platform for financial advisors, emphasizing fee-based investment solutions, consultation, and service excellence [2][4]. - Brigman expressed a commitment to enhancing collaboration among internal business units to support the growth of the advisory platform [5]. - Lynch highlighted the importance of helping advisors build and grow their businesses according to their unique needs and those of their clients [7]. Group 3: Company Overview - Raymond James Financial, Inc. is a diversified financial services company with total client assets amounting to $1.58 trillion [10].

Core Viewpoint - Raymond James Financial, Inc. reported strong first-quarter fiscal 2025 earnings, surpassing estimates, but shares have underperformed the S&P 500 in the past month, raising questions about future performance [1][2]. Financial Performance - Adjusted earnings for Q1 fiscal 2025 were $2.93 per share, exceeding the Zacks Consensus Estimate of $2.75, and reflecting a 22% increase from the prior-year quarter [2][3]. - Net income available to common shareholders was $599 million, or $2.86 per share, up from $497 million, or $2.32 per share, in the prior-year quarter [3]. - Quarterly net revenues reached $3.54 billion, a 17% year-over-year increase, surpassing the Zacks Consensus Estimate of $3.48 billion [4]. Segment Performance - The Capital Markets segment saw a 42% increase in revenues, while the Private Client Group and Asset Management segments reported growths of 14% and 25%, respectively [4]. - The Bank segment experienced a 4% decline in revenues, and the "Others" category saw a significant 54% drop [4]. Expense Analysis - Non-interest expenses rose 17% year-over-year to $2.79 billion, primarily due to increased compensation, commissions, and investment sub-advisory fees [5]. - No bank loan provision for credit losses was recorded in the reported quarter, contrasting with $12 million in the prior-year quarter [5]. Asset Management - As of December 31, 2024, client assets under administration totaled $1.56 trillion, a 14% increase from the prior-year quarter, while financial assets under management grew 13% to $243.9 billion [6]. Balance Sheet Strength - Total assets were $82.28 billion, down 1% from the prior quarter, while total equity increased by 2% to $11.84 billion [7]. - Book value per share rose to $57.89 from $51.32 a year ago, and the total capital ratio improved to 25% from 23% [7]. Return on Equity - The annualized return on common equity was 20.4%, up from 19.1% a year ago [8]. Share Repurchase Activity - In the reported quarter, the company repurchased 0.3 million shares for $50 million [9]. Future Outlook - For fiscal 2025, management anticipates non-compensation expenses to be approximately $2.1 billion, reflecting about 10% growth from the previous year [11]. - Management expects a sequential decline of 2-3% in aggregate net interest income and related fees due to two fewer billing days in the second quarter [12]. - The effective tax rate for fiscal 2025 is estimated to be around 24% to 25% [12]. Estimate Trends - There has been an upward trend in estimates revisions over the past month, indicating positive sentiment among investors [13][15]. VGM Scores - Raymond James Financial holds an average Growth Score of C, a Momentum Score of F, and a Value Score of B, resulting in an aggregate VGM Score of C [14].

Core Viewpoint - Raymond James Financial, Inc. (RJF) is experiencing significant selling pressure, with a recent decline of 11.1% over the past four weeks, but is now positioned for a potential trend reversal as it enters oversold territory, supported by analyst expectations of better-than-previously predicted earnings [1] Group 1: Technical Indicators - The Relative Strength Index (RSI) is utilized to identify oversold stocks, with a reading below 30 indicating that a stock may be oversold [2] - RJF's current RSI reading is 29, suggesting that the heavy selling pressure may be exhausting, indicating a potential reversal in trend [5] Group 2: Fundamental Indicators - There is a strong consensus among sell-side analysts that RJF's earnings estimates for the current year have increased by 1.4% over the last 30 days, which typically correlates with price appreciation [6] - RJF holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, indicating a strong potential for a turnaround [7]