Raymond James Financial(RJF) - 2024 Q3 - Quarterly Results

Client Assets and Administration - Record client assets under administration of $1.48 trillion and Private Client Group assets in fee-based accounts of$ 820.6 billion, up 15% and 18% respectively over June 2023[4] - Domestic Private Client Group net new assets of $16.5 billion for the fiscal third quarter, annualized growth from beginning of period assets of 5.2%[4] - Total clients' domestic cash sweep and Enhanced Savings Program balances of$ 56.4 billion, down 3% compared to both June 2023 and March 2024[4] - Record financial assets under management of $229.3 billion, up 14% over June 2023 and 1% over March 2024[16] - Client assets under administration increased to$ 1,476.2 billion as of June 30, 2024, up 15% from $1,280.9 billion in June 2023 and 2% from$ 1,449.1 billion in March 2024[27] - Private Client Group assets under administration reached $1,415.7 billion as of June 30, 2024, a 15% increase from$ 1,227.0 billion in June 2023 and 2% growth from $1,388.8 billion in March 2024[27] - Private Client Group assets in fee-based accounts grew to$ 820.6 billion as of June 30, 2024, up 18% from $697.0 billion in June 2023 and 3% from$ 798.8 billion in March 2024[27] - Financial assets under management increased to $229.3 billion as of June 30, 2024, a 14% rise from$ 200.7 billion in June 2023 and 1% growth from $226.8 billion in March 2024[27] - Domestic Private Client Group net new assets for the nine months ended June 30, 2024, totaled$ 47,740 million, compared to $59,085 million in the same period of 2023[27] - Total advisors increased to 8,782 as of June 30, 2024, up 1% from 8,704 in June 2023 and flat compared to 8,761 in March 2024[27] - Clients' domestic cash sweep and Enhanced Savings Program balances totaled$ 56,448 million as of June 30, 2024, down 3% from $57,978 million in June 2023 and$ 58,217 million in March 2024[27] - Total client assets reached $1.48 trillion, with approximately 8,800 financial advisors[44] Financial Performance - Record quarterly net revenues of$ 3.23 billion, up 11% over the prior year's fiscal third quarter and 4% over the preceding quarter[4] - Quarterly net income available to common shareholders of $491 million, or$ 2.31 per diluted share; adjusted net income available to common shareholders of $508 million, or$ 2.39 per diluted share[4] - Record net revenues of $9.36 billion and net income available to common shareholders of$ 1.46 billion for the first nine months of fiscal 2024, up 9% and 12% respectively over the first nine months of fiscal 2023[4] - Annualized return on common equity of 18.2% and annualized adjusted return on tangible common equity of 22.5% for the first nine months of fiscal 2024[4] - Repurchased approximately 2 million shares of common stock for $243 million during the fiscal third quarter[4] - Net revenues for the three months ended June 30, 2024, increased by 11% to$ 3,228 million compared to $2,907 million in the same period last year[21] - Pre-tax income for the three months ended June 30, 2024, rose by 33% to$ 644 million from $486 million in the prior year period[21] - Net income available to common shareholders for the three months ended June 30, 2024, increased by 33% to$ 491 million compared to $369 million in the same period last year[21] - Adjusted earnings per common share – diluted for the three months ended June 30, 2024, grew by 29% to$ 2.39 from $1.85 in the prior year period[21] - Total revenues for the nine months ended June 30, 2024, increased by 15% to$ 10,920 million compared to $9,477 million in the same period last year[25] - Asset management and related administrative fees for the nine months ended June 30, 2024, rose by 16% to$ 4,534 million from $3,917 million in the prior year period[25] - Investment banking revenues for the nine months ended June 30, 2024, increased by 22% to$ 543 million compared to $446 million in the same period last year[25] - Interest income for the nine months ended June 30, 2024, grew by 16% to$ 3,159 million from $2,729 million in the prior year period[25] - Compensation, commissions, and benefits for the nine months ended June 30, 2024, increased by 12% to$ 6,054 million compared to $5,407 million in the same period last year[25] - Earnings per common share – diluted for the nine months ended June 30, 2024, rose by 15% to$ 6.85 from $5.95 in the prior year period[25] - Total net revenues increased by 9% to$ 9,359 million in Q3 2024 compared to $8,566 million in Q3 2023[31] - Private Client Group net revenues grew by 9% to$ 6,983 million in Q3 2024 from $6,389 million in Q3 2023[31] - Capital Markets net revenues rose by 13% to$ 989 million in Q3 2024 from $873 million in Q3 2023[31] - Asset Management net revenues increased by 16% to$ 752 million in Q3 2024 from $649 million in Q3 2023[31] - Bank segment net revenues decreased by 18% to$ 1,283 million in Q3 2024 from $1,562 million in Q3 2023[31] - Pre-tax income grew by 11% to$ 1,883 million in Q3 2024 from $1,695 million in Q3 2023[31] - Quarterly net revenues of$ 3.23 billion, with net income available to common shareholders of $491 million, or$ 2.31 per diluted share, for the fiscal third quarter ended June 30, 2024[37] - Private Client Group quarterly net revenues of $330 million, up 20% year-over-year and 3% sequentially[39] - Quarterly investment banking revenues of$ 173 million, up 23% year-over-year and 1% sequentially[39] - Record quarterly net revenues grew 17% year-over-year and 5% sequentially, driven by higher financial assets under management[40] - Quarterly pre-tax income grew 74% year-over-year, driven by lower expenses and a bank loan benefit for credit losses[42] - Asset management and related administrative fees increased to $1.364 billion, up 17% year-over-year and 6% sequentially[32] - Total brokerage revenues reached$ 409 million, up 17% year-over-year[32] - Total account and service fees were $531 million, down 3% year-over-year and sequentially[32] - Pre-tax income for the quarter was$ 441 million, up 7% year-over-year but down 1% sequentially[32] - Return on common equity increased to 17.8% in June 2024, up from 14.9% in June 2023[48] - Adjusted pre-tax margin improved to 20.7% in June 2024, compared to 18.1% in June 2023[48] - Total revenues grew by 14% to $3.762 billion in June 2024, up from$ 3.293 billion in June 2023[49] - Net income available to common shareholders rose by 33% to $491 million in June 2024, compared to$ 369 million in June 2023[49] - Earnings per common share (diluted) increased by 35% to $2.31 in June 2024, up from$ 1.71 in June 2023[49] - Total assets reached $80.628 billion in June 2024, a 4% increase from$ 77.633 billion in June 2023[52] - Book value per share grew by 14% to $54.08 in June 2024, compared to$ 47.34 in June 2023[52] - Tier 1 capital ratio improved to 22.2% in June 2024, up from 20.6% in June 2023[52] - Investment banking revenues increased by 23% to $514 million in June 2024, compared to$ 419 million in June 2023[61] - Pre-tax loss decreased by 67% to $28 million in June 2024, down from$ 84 million in June 2023[61] - Total asset management and related administrative fees increased by 17% YoY to $254 million in June 2024 compared to$ 217 million in June 2023[62] - Net interest income decreased by 18% YoY to $1,245 million in June 2024 compared to$ 1,518 million in June 2023[64] - Total non-interest expenses decreased by 21% YoY to $1,001 million in June 2024 compared to$ 1,269 million in June 2023[64] - Net income available to common shareholders increased by 33% YoY to $491 million in June 2024 compared to$ 369 million in June 2023[70] - Adjusted net income available to common shareholders increased by 27% YoY to $508 million in June 2024 compared to$ 399 million in June 2023[70] - Adjusted pre-tax income increased by 27% YoY to $667 million in June 2024 compared to$ 526 million in June 2023[70] - Adjusted pre-tax margin for the fiscal third quarter of 2024 was 20.7%, compared to 18.1% in the same period last year[71] - Total compensation ratio adjusted for non-GAAP measures was 64.4% for the fiscal third quarter of 2024, down from 62.7% in the prior year period[71] - Adjusted basic earnings per share for the fiscal third quarter of 2024 was $2.45, up from$ 1.89 in the same quarter last year[72] - Adjusted diluted earnings per share for the fiscal third quarter of 2024 was $2.39, compared to$ 1.85 in the prior year period[72] - Total common equity attributable to Raymond James Financial was $11,118 million as of June 30, 2024, up from$ 9,870 million a year earlier[73] - Tangible common equity attributable to Raymond James Financial was $9,370 million as of June 30, 2024, compared to$ 8,071 million a year ago[73] - Book value per share increased to $54.08 as of June 30, 2024, from$ 47.34 a year earlier[73] - Tangible book value per share rose to $45.57 as of June 30, 2024, up from$ 38.71 in the prior year period[73] - Total expenses related to acquisitions were $0.11 per share for the fiscal third quarter of 2024, down from$ 0.19 per share in the same quarter last year[72] - Total non-GAAP adjustments, net of tax, were $0.08 per share for the fiscal third quarter of 2024, compared to$ 0.14 per share in the prior year period[72] - Average tangible common equity for the three months ended June 30, 2024 was $9,258 million, compared to$ 8,071 million for the same period in 2023[75] - Adjusted average tangible common equity for the three months ended June 30, 2024 was $9,266 million, compared to$ 8,086 million for the same period in 2023[75] - Return on common equity for the three months ended June 30, 2024 was 17.8%, compared to 14.9% for the same period in 2023[75] - Adjusted return on common equity for the three months ended June 30, 2024 was 18.4%, compared to 16.1% for the same period in 2023[75] - Return on tangible common equity for the three months ended June 30, 2024 was 21.2%, compared to 18.3% for the same period in 2023[75] - Adjusted return on tangible common equity for the three months ended June 30, 2024 was 21.9%, compared to 19.7% for the same period in 2023[75] - Total expenses related to acquisitions for the three months ended June 30, 2024 were $11 million, compared to$ 20 million for the same period in 2023[75] - Total non-GAAP adjustments, net of tax for the three months ended June 30, 2024 were $8 million, compared to$ 15 million for the same period in 2023[75] - Average common equity for the three months ended June 30, 2024 was $11,012 million, compared to$ 9,873 million for the same period in 2023[75] - Average goodwill and identifiable intangible assets, net for the three months ended June 30, 2024 was $1,889 million, compared to$ 1,930 million for the same period in 2023[75] - Total net revenues increased by 11% to $3,228 million in June 2024 from$ 2,907 million in June 2023[78] - Pre-tax income for the Bank segment surged by 74% to $115 million in June 2024 from$ 66 million in June 2023[78] - Total asset management and related administrative fees increased by 16% to $720 million in June 2024 from$ 620 million in June 2023[84] - Pre-tax income for Asset Management grew by 22% to $305 million in June 2024 from$ 251 million in June 2023[84] - Net interest income decreased by 18% to $406 million compared to June 30, 2023, and by 2% compared to March 31, 2024[85] - Net revenues declined by 19% to$ 418 million compared to June 30, 2023, and by 1% compared to March 31, 2024[85] - Total non-interest expenses decreased by 32% to $303 million compared to June 30, 2023, and by 13% compared to March 31, 2024[85] - Pre-tax income increased by 74% to$ 115 million compared to June 30, 2023, and by 53% compared to March 31, 2024[85] - Net interest margin (net yield on interest-earning assets) was 2.64% for the three months ended June 30, 2024, down from 3.26% in the same period last year[90] - Bank loan provision/(benefit) for credit losses was $(10) million for the three months ended June 30, 2024, compared to$ 54 million in the same period last year[90] - Net charge-offs decreased by 60% to $6 million compared to June 30, 2023, and by 79% compared to March 31, 2024[90] - Average common equity increased to$ 11,012 million for the three months ended June 30, 2024, up from $9,873 million in the same period last year[96] - Total expenses related to acquisitions were$ 11 million for the three months ended June 30, 2024, down from $20 million in the same period last year[96] - Adjusted average common equity was$ 11,020 million for the three months ended June 30, 2024, up from $9,888 million in the same period last year[96] Bank Segment Performance - Bank segment net interest margin of 2.64% for the quarter, down 62 basis points compared to the prior year's fiscal third quarter and 2 basis points compared to the preceding quarter[17] - Net interest income and RJBDP fees from third-party banks were$ 672 million for the three months ended June 30, 2024, a 5% decrease from $708 million in June 2023 and 2% decline from$ 689 million in March 2024[27] - Average yield on RJBDP - third-party banks was 3.41% for the three months ended June 30, 2024, compared to 3.37% in June 2023 and 3.59% in March 2024[27] - Bank segment net revenues decreased by 18% to $1,283 million in Q3 2024 from$ 1,562 million in Q3 2023[31] - Total interest-earning assets increased to $73,498 million in Q3 2024 from$ 72,413 million in Q3 2023, with an annualized average rate of 5.73%[28] - Securities-based loans (SBL) interest income rose to $269 million in Q3 2024 from$ 251 million in Q3 2023, with an annualized average rate of 7.10%[28] - Commercial and industrial (C&I) loans interest income increased to $194 million in Q3 2024 from$ 202 million in Q3 2023, with an annualized average rate of 7.70%[28] - Firmwide net interest margin improved to 2.86% in Q3 2024 from 2.91% in Q2 2024[28] - Total assets in the Bank segment increased by 2% YoY to $60,574 million in June 2024 compared to$ 59,506 million in June 2023[67] - Bank loans, net increased by 4% YoY to $45,149 million in June 2024 compared to$ 43,345 million in June 2023[67] - Total nonperforming assets increased by 26% YoY to $160 million in June 2024 compared to$ 127 million in June 2023[67] - Total criticized loans increased by 27% YoY to $523 million in June 2024 compared to$