Core Insights - Raymond James Financial, Inc. reported net revenues of $3.40 billion and net income of $435 million for the fiscal third quarter ended June 30, 2025, marking a 5% increase in quarterly net revenues compared to the prior year [1][2] - The firm celebrated its 150th consecutive quarter of profitability, highlighting strong growth in financial advisor recruitment and a robust investment banking pipeline [2] - For the first nine months of fiscal 2025, record net revenues reached $10.34 billion, a 10% increase year-over-year, with record earnings per diluted share of $7.35, up 7% [2][5] Financial Performance - Quarterly adjusted net income available to common shareholders was $449 million, or $2.18 per diluted share, after excluding $19 million in acquisition-related expenses [1][2] - Annualized return on common equity was 17.1% and annualized adjusted return on tangible common equity was 20.5% for the first nine months of fiscal 2025 [2][5] - The effective tax rate for the quarter was 22.6%, benefiting from nontaxable corporate-owned life insurance gains [15] Segment Results Private Client Group - Record net revenues of $10.34 billion and pre-tax income of $1.98 billion for the first nine months of fiscal 2025, up 10% and 5% respectively [5] - Record client assets under administration reached $1.64 trillion, with fee-based accounts totaling $943.9 billion, reflecting increases of 11% and 15% year-over-year [5][11] - Domestic Private Client Group net new assets for the fiscal third quarter were $11.7 billion, with a year-to-date total of $34.5 billion [11] Capital Markets - Quarterly net revenues increased 15% year-over-year, driven by higher investment banking and brokerage revenues [9][12] - The investment banking pipeline remains strong, although the current macroeconomic environment is uncertain [9] Asset Management - Quarterly net revenues rose 3% year-over-year, primarily due to higher asset management fees, which reached $1.46 billion [7][10] - Record financial assets under management were reported at $263.2 billion, up 15% over June 2024 [13] Banking - The bank segment reported a net interest margin of 2.74%, up 10 basis points year-over-year, with net loans increasing by 3% [14] Shareholder Actions - The company repurchased $451 million of common stock during the fiscal third quarter at an average price of $137 per share [15]

Core Insights - Raymond James has welcomed financial advisor Robert Chanin to its employee advisor channel, Raymond James & Associates (RJA), enhancing its wealth management capabilities for high-net-worth clients [1][3] - Chanin brings over 45 years of industry experience and previously managed approximately $750 million in client assets at Stifel [1][2] - The firm emphasizes its commitment to providing seasoned advisors with the freedom to serve clients while maintaining robust resources and support [2][3] Company Overview - Raymond James & Associates, Inc. is a leader in financial planning and wealth management services, catering to individuals, high-net-worth families, corporations, and municipalities [3] - As of May 31, 2025, total client assets managed by Raymond James are approximately $1.58 trillion [3]

Core Insights - Raymond James (RJF) is expected to report a slight decline in earnings for Q3 fiscal 2025, while revenues are projected to increase year-over-year [1][3] Financial Performance - In the last quarter, RJF's earnings fell short of the Zacks Consensus Estimate due to higher non-interest expenses and subdued investment banking (IB) performance, although strong brokerage performance in Capital Markets and robust results from the Private Client Group and Asset Management segments provided some support [2] - The Zacks Consensus Estimate for RJF's Q3 earnings is $2.37, reflecting a nearly 1% decline from the previous year, while the sales estimate of $3.36 billion indicates a 4.1% growth [3] Investment Banking (IB) Fees - Global M&A activity improved in the reported quarter, leading to an expected rise in RJF's advisory fees, despite initial market volatility due to tariff announcements [4] - The IPO market saw a resurgence, positively impacting RJF's underwriting fees, with IB fees estimated at $212.1 million, representing a 15.9% year-over-year increase [5] Trading Revenues - Client activity and market volatility were strong in the June-ended quarter, driven by trade war concerns and sustained high interest rates, suggesting solid growth in RJF's trading revenues [6] Net Interest Income (NII) - The Federal Reserve's decision to maintain interest rates at 4.25-4.5% is expected to have a favorable impact on RJF's NII, although higher funding costs may offset some gains [7] - The consensus estimate for interest income is $980.4 million, indicating a 7.2% decline, while RJF's own estimate is $1.01 billion [8] Expenses - Non-interest expenses are projected to rise nearly 6% due to advisor hiring and inflationary pressures, with total non-interest expenses expected to reach $2.74 billion, a 5.9% year-over-year increase [9][10] Earnings Surprise Potential - The likelihood of RJF beating the Zacks Consensus Estimate is high, supported by a positive Earnings ESP of +1.24% and a Zacks Rank of 3 (Hold) [11][12]

The market expects Raymond James Financial, Inc. (RJF) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended June 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on July 23, might help the stock move higher if these key numbe ...

Core Insights - Raymond James Ltd. has entered a strategic collaboration with FNZ to enhance its wealth management systems and improve client and advisor experiences nationwide [1][4] - The partnership will utilize FNZ's integrated wealth management platform, featuring AI-driven tools and advanced digital capabilities [2][3] - Raymond James plans to invest approximately $1 billion globally in fiscal year 2025, focusing on technology upgrades and cybersecurity [5][8] Investment and Technology Strategy - The collaboration with FNZ represents a significant investment in modern infrastructure aimed at improving efficiency and personalization in wealth management [2][3] - The new platform will provide advisors with a user-friendly interface, enhancing client interactions and offering real-time capabilities [3][4] - The investment aligns with Raymond James' goal to establish itself as a leader in financial technology and innovation [5][8] Market Position and Performance - The strategic investment reinforces Raymond James Ltd.'s position as a preferred choice for top advisors in Canada, emphasizing innovation and client service [4] - In the past three months, shares of Raymond James have increased by 6.4%, which is lower than the industry average rise of 13.2% [6]

Summary of Raymond James Financial (RJF) Conference Call Company Overview - **Company**: Raymond James Financial (RJF) - **Industry**: Financial Services - **Total Client Assets**: Over $1.5 trillion [2] Key Points and Arguments Revenue Growth Expectations - **Long-term Revenue Goal**: Exceed $20 billion by 2030, implying an 8% annual growth rate, which is slower than the 13% growth over the past five years [5][6] - **Market Conditions**: Growth expectations are conservative, factoring in potential equity market depreciation [6] Competitive Positioning - **Critical Mass and Growth Potential**: Raymond James has the necessary scale to invest in technology and products while maintaining growth potential across all business lines [7][9] - **Technology Investment**: Approximately $1 billion is being invested in technology, primarily in the wealth management sector [8][35] Value Proposition - **Best of Both Worlds**: The company aims to combine the capabilities of larger firms with the culture of smaller firms, enhancing its appeal to financial professionals [11][12] - **Recruitment Success**: The culture at Raymond James is a significant draw for advisers, with many expressing regret for not joining sooner [29][30] Market Environment and Client Behavior - **Increased Demand for Advisers**: Volatility in the market has reinforced the value of financial advisers, leading clients to remain engaged and disciplined in their long-term financial plans [15][16] - **Investment Banking Activity**: Current tariff uncertainties are dampening M&A activity, with a need for clarity around tariffs to stimulate deal-making [20][21] Growth Opportunities - **Market Share Expansion**: Significant growth opportunities exist in high-wealth markets like the Northeast and West Coast, where current market share is below national averages [24][25] - **Recruitment Strategy**: The company is focused on attracting high-quality advisers, with potential for hundreds of new recruits in targeted markets [27][28] Technology and AI Integration - **AI as a Game Changer**: The company is investing in AI to enhance adviser productivity and client service, with a dedicated team to explore AI opportunities [39][40] - **Data Quality**: Emphasis on the importance of clean and organized data for effective AI deployment [44][45] Lending and Cash Management - **Securities-Based Lending Growth**: A 15% year-over-year growth in securities-based lending has been observed, with optimism for continued recovery [50][52] - **Cash Sweep Balances**: Stability in cash sweep balances is necessary for declaring victory in this area, with a focus on increasing client cash balances [55][56] Competitive Advantages - **Strong Balance Sheet**: The firm’s solid financial position is becoming a competitive advantage as advisers seek stability in uncertain markets [63][64] - **Quality Over Quantity**: Raymond James prioritizes a high-touch service model and quality adviser relationships over sheer size [62][65] Additional Important Insights - **Cultural Importance**: The preservation of company culture is a top priority, as it significantly impacts adviser satisfaction and retention [30][31] - **Market Dynamics**: The current environment is leading advisers to reassess their affiliations, with a growing interest in firms with strong balance sheets [63][64] This summary encapsulates the key insights and strategic directions discussed during the Raymond James Financial conference call, highlighting the company's growth ambitions, competitive positioning, and market dynamics.

Summary of Raymond James Financial's Analyst and Investor Day Company Overview - **Company**: Raymond James Financial - **Event**: 2025 Analyst and Investor Day - **Location**: St. Petersburg, Florida Key Industry Insights - **Market Position**: Raymond James aims to be the best firm for financial professionals and their clients, emphasizing a culture that respects client relationships and advisor independence [10][11] - **Growth Metrics**: Over the past 15 years, client assets grew from approximately $250 billion to over $1.6 trillion, representing a compound annual growth rate (CAGR) of about 14% [12] - **Revenue Growth**: Net revenues increased from less than $3 billion to around $13 billion, reflecting an 11% growth rate [12] - **Market Capitalization**: Market cap rose from $3 billion to approximately $28-29 billion, indicating a 16% annual growth rate [13] Strategic Focus - **Client-Centric Approach**: The firm prioritizes client needs in all strategic decisions, believing that success for clients will lead to success for shareholders [14][15] - **Long-Term Vision**: Raymond James focuses on sustainable growth over short-term gains, with a commitment to long-term profitability [15][41] - **Financial Strength**: The company maintains a total capital ratio of 25%, significantly above the regulatory requirement of 10%, with $2.5 billion in excess capital [23][24] Business Segments - **Private Client Group (PCG)**: Represents about 70% of revenues, with 8,731 advisors managing $1.48 trillion in assets. Fee-based assets have grown at a 16% CAGR over the past five years [73][74] - **Capital Markets**: Opportunities for growth in investment banking and sales and trading, with a focus on expanding market share in Europe and the U.S. [60][61] - **Asset Management**: The firm has a $100 billion asset management segment with significant growth potential [61] Technology and Innovation - **Investment in Technology**: Raymond James plans to invest nearly $1 billion in technology, primarily in wealth management, to enhance competitiveness [34][46] - **Artificial Intelligence**: A Chief AI Officer role was created to focus on increasing efficiencies, data-driven insights, and cybersecurity [46][47] Mergers and Acquisitions (M&A) - **M&A Strategy**: The firm emphasizes cultural fit and strategic alignment in potential acquisitions, focusing on enhancing the overall value rather than merely increasing size [50][51] - **Market Disruption**: Ongoing M&A activity in the industry creates both challenges and opportunities for Raymond James, particularly in recruiting high-quality advisors [54][57] Competitive Landscape - **Market Share Opportunities**: Significant growth potential exists in the Northeast and West regions of the U.S., where market share is currently lower than the national average [40][60] - **Advisor Recruitment**: The firm is experiencing strong recruitment activity, particularly from advisors seeking a stable and supportive environment [58] Conclusion - **Future Goals**: Raymond James aims to exceed $20 billion in revenues by 2030, with a focus on sustainable growth and maintaining a strong cultural identity [52][53] - **Commitment to Advisors**: The firm seeks to inspire and empower financial professionals, ensuring they have the resources and support needed to succeed [76][78]

2025 Analyst & Investor Day JUNE 5, 2025 Welcome & Agenda Kristie Waugh Senior Vice President, Investor Relations and FP&A Forward-looking statements 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, l ...

[Part I: Financial Information](index=3&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) This section presents the unaudited financial statements and management's analysis of financial condition and operations [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements for the quarter ended March 31, 2025, with detailed notes [Condensed Consolidated Statements of Financial Condition](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Financial%20Condition) Total assets increased slightly to $83.13 billion, driven by bank loans, while liabilities decreased and equity grew to $12.23 billion Condensed Consolidated Statements of Financial Condition (in millions) | Account | March 31, 2025 | September 30, 2024 | | :--- | :--- | :--- | | **Total assets** | **$83,132** | **$82,992** | | Cash and cash equivalents | $9,662 | $10,998 | | Bank loans, net | $48,273 | $45,994 | | **Total liabilities** | **$70,905** | **$71,325** | | Bank deposits | $56,403 | $56,010 | | Accrued compensation, commissions and benefits | $1,914 | $2,325 | | **Total shareholders' equity** | **$12,227** | **$11,667** | [Condensed Consolidated Statements of Income and Comprehensive Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20and%20Comprehensive%20Income) Net revenues for Q2 2025 increased 9% to $3.40 billion, with net income rising 4% to $495 million, and diluted EPS at $2.36 Key Performance Indicators (in millions, except per share amounts) | Metric | Q2 2025 | Q2 2024 | YoY Change | Six Months 2025 | Six Months 2024 | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Net revenues | $3,403 | $3,118 | +9% | $6,940 | $6,131 | +13% | | Pre-tax income | $671 | $609 | +10% | $1,420 | $1,239 | +15% | | Net income | $495 | $476 | +4% | $1,095 | $974 | +12% | | Diluted EPS | $2.36 | $2.22 | +6% | $5.22 | $4.54 | +15% | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating activities provided $947 million in cash, while investing activities used $1.60 billion, and financing activities used $463 million Net Cash Flow for Six Months Ended March 31 (in millions) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $947 | $934 | | Net cash used in investing activities | $(1,596) | $(109) | | Net cash provided by/(used in) financing activities | $(463) | $266 | [Notes to Condensed Consolidated Financial Statements (Unaudited)](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) Detailed notes cover fair value measurements, bank loan portfolio, deposits, and regulatory capital, providing context to financial statements - As of March 31, 2025, **11% of assets and 2% of liabilities were measured at fair value** on a recurring basis. Level 3 assets represented less than 1% of assets measured at fair value[37](index=37&type=chunk) - The bank loan portfolio grew to **$48.5 billion** (held for investment) as of March 31, 2025, up from $46.3 billion at September 30, 2024. The Allowance for Credit Losses (ACL) as a percentage of total loans held for investment decreased to **0.93%** from 0.99%[80](index=80&type=chunk) - Total bank deposits increased to **$56.4 billion** as of March 31, 2025, with **86% of these deposits being FDIC-insured**[126](index=126&type=chunk)[128](index=128&type=chunk) - The company and its bank subsidiaries were categorized as 'well-capitalized' as of March 31, 2025, with RJF's CET1 ratio at **23.3%** against a 7.0% requirement[188](index=188&type=chunk)[190](index=190&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=51&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 and H1 2025 financial results, highlighting revenue growth, segment performance, liquidity, capital, and risk management practices [Executive Overview](index=53&type=section&id=Executive%20overview) Q2 2025 net revenues grew 9% to $3.40 billion, driven by asset management and investment banking, while maintaining a strong capital position Q2 2025 Financial Highlights vs. Q2 2024 (in millions, except per share) | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Net revenues | $3,403 | $3,118 | 9% | | Pre-tax income | $671 | $609 | 10% | | Net income available to common shareholders | $493 | $474 | 4% | | Earnings per common share – diluted | $2.36 | $2.22 | 6% | - Key revenue drivers for the quarter included higher asset management fees due to increased PCG client assets, stronger brokerage revenues from fixed income, and improved investment banking activity[219](index=219&type=chunk) - The firm repurchased **1.7 million shares for $250 million** in Q2 2025 and maintained a strong capital position with a Tier 1 leverage ratio of **13.3%** and **$2.5 billion in corporate cash**[223](index=223&type=chunk) [Results of Operations by Segment](index=67&type=section&id=Results%20of%20operations) Segment performance highlights include PCG revenue growth, increased Capital Markets activity, and significant pre-tax income growth in Asset Management and Bank segments Segment Pre-Tax Income for Q2 (in millions) | Segment | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Private Client Group | $431 | $444 | (3)% | | Capital Markets | $36 | $(17) | NM | | Asset Management | $121 | $100 | +21% | | Bank | $117 | $75 | +56% | - PCG client assets under administration (AUA) reached **$1.48 trillion**, with assets in fee-based accounts at **$872.8 billion** as of March 31, 2025[259](index=259&type=chunk) - Capital Markets investment banking revenues increased **21% YoY to $207 million** in Q2 2025, driven by more favorable market conditions[284](index=284&type=chunk)[285](index=285&type=chunk) - Asset Management's total financial assets under management (AUM) grew to **$245.0 billion** as of March 31, 2025, up from $226.8 billion a year prior[298](index=298&type=chunk) [Liquidity and Capital Resources](index=79&type=section&id=Liquidity%20and%20capital%20resources) The firm maintains a strong liquidity and capital position with $83.1 billion in assets, $12.2 billion in equity, and robust capital ratios RJF Regulatory Capital Ratios (March 31, 2025) | Ratio | Actual | Required | | :--- | :--- | :--- | | Tier 1 leverage | 13.3% | 4.0% | | CET1 | 23.3% | 7.0% | | Tier 1 capital | 23.5% | 8.5% | | Total capital | 24.8% | 10.5% | - As of March 31, 2025, the company had **$2.49 billion in corporate cash**, including cash held at the parent and loaned to its subsidiary RJ&A[345](index=345&type=chunk) - The company has significant available credit, with **$9.49 billion from the FHLB** and **$3.4 billion from the FRB discount window** as of March 31, 2025[359](index=359&type=chunk)[360](index=360&type=chunk) - In December 2024, the Board authorized a new **$1.5 billion share repurchase program**. As of March 31, 2025, **$1.2 billion remained available** under this authorization[167](index=167&type=chunk)[223](index=223&type=chunk) [Risk Management](index=88&type=section&id=Risk%20management) The firm employs an ERM program to manage market, credit, liquidity, and operational risks, with focus on CRE loans Daily Value-at-Risk (VaR) for Trading Portfolios (Six months ended March 31, 2025) | $ in millions | High | Low | Period-end (Mar 31, 2025) | Average | | :--- | :--- | :--- | :--- | :--- | | Daily VaR | $4 | $1 | $3 | $3 | Bank Operations Net Interest Income Sensitivity (as of March 31, 2025) | Instantaneous Rate Change (bps) | Projected Change in NII | | :--- | :--- | | +200 | +3% | | +100 | +2% | | -100 | (4)% | | -200 | (9)% | - Nonperforming loans were **$214 million**, or **0.44% of total loans** held for sale and investment, as of March 31, 2025[428](index=428&type=chunk) - The firm is closely monitoring risks in its CRE loan portfolio, especially office real estate, due to remote work policies and high interest rates. The office real estate concentration is **7% of the total corporate bank loan portfolio**[443](index=443&type=chunk)[445](index=445&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=97&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) Quantitative and qualitative disclosures about market risk are referenced to the 'Risk Management' section of the MD&A - Disclosures about market risk are provided in the MD&A section of this report[452](index=452&type=chunk) [Item 4. Controls and Procedures](index=97&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal control over financial reporting - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures are effective as of the end of the period[455](index=455&type=chunk) - No changes occurred during the quarter ended March 31, 2025, that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[456](index=456&type=chunk) [Part II: Other Information](index=100&type=section&id=PART%20II%20OTHER%20INFORMATION) This section provides additional information including legal proceedings, equity sales, and other disclosures [Item 1. Legal Proceedings](index=100&type=section&id=Item%201.%20Legal%20Proceedings) The company reported no new material legal proceedings for the period - The report states 'None' for this item, indicating no new material legal proceedings to disclose[459](index=459&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=100&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales but detailed common stock repurchases, including a new $1.5 billion authorization Share Repurchases for the Quarter Ended March 31, 2025 | Month | Total Shares Purchased | Average Price Per Share | Shares Purchased Under Program | Remaining Authorization (End of Month) | | :--- | :--- | :--- | :--- | :--- | | January 2025 | 23,435 | $162.69 | — | $1,450M | | February 2025 | 315,686 | $158.54 | 315,391 | $1,400M | | March 2025 | 1,402,024 | $142.78 | 1,399,870 | $1,200M | | **Q2 Total** | **1,741,145** | **$145.91** | **1,715,261** | **$1,200M** | [Item 5. Other Information](index=101&type=section&id=Item%205.%20Other%20Information) The company reported that none of its directors or officers adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during the three months ended March 31, 2025 - No directors or officers adopted or terminated a Rule 10b5-1 trading arrangement during the quarter[467](index=467&type=chunk)

Group 1 - Albert Anthony is a Croatian-American media personality and analyst for financial media platforms, focusing on dividend stocks and general market commentary [1] - The author has covered over 200 companies across multiple sectors and has gained over 1,000 followers since 2023 [1] - Albert Anthony has experience as an analyst in the IT sector and has worked for a top 10 financial firm in the US [1] Group 2 - The author plans to launch a new book in 2025 on Amazon discussing his methodology for stock rating [1] - Albert Anthony & Co. is a sole proprietorship registered in Austin, Texas [1] - The author does not provide personalized financial advice and does not hold material positions in any rated stocks at the time of rating [1]