Raymond James Financial(RJF) - 2025 Q4 - Annual Results

Financial Performance - Record net revenues of $3.73 billion for the fiscal fourth quarter, up 8% year-over-year and 10% sequentially[4] - Net income available to common shareholders for the fourth quarter was $603 million, or $2.95 per diluted share; adjusted net income was $635 million, or $3.11 per diluted share[4] - Annual net revenues reached $14.07 billion for fiscal 2025, a 10% increase from fiscal 2024, with earnings per diluted share of $10.30, up 6%[5] - Total revenues for the twelve months ended September 30, 2025, were $15,912 million, a 7% increase from $14,923 million in 2024[30] - Total revenues for the twelve months ended September 30, 2025, increased by 7% to $10,282 million compared to $9,578 million for the same period in 2024[45] - Total net revenues for the fiscal year ended September 30, 2025, increased by 10% to $14,065 million compared to $12,821 million for the previous year[39] Client Assets and Growth - Record client assets under administration of $1.73 trillion, with Private Client Group assets in fee-based accounts increasing by 15% year-over-year to $1.01 trillion[4] - Domestic Private Client Group net new assets for the fourth quarter totaled $17.9 billion, reflecting an annualized growth rate of 5.0%[4] - Client assets under administration reached $1,730.6 billion, marking a 10% increase from $1,571.1 billion year-over-year[32] - Private Client Group assets in fee-based accounts grew to $1,008.1 billion, a 15% increase from $875.2 billion year-over-year[32] - Domestic Private Client Group net new assets totaled $17,930 million, with an annualized growth rate of 5.0%[32] Investments and Acquisitions - Significant investments of approximately $1 billion in technology, including AI, to enhance service and deliver data-driven insights[3] - The recently announced acquisition of GreensLedge Holdings LLC is expected to close later in fiscal 2026, enhancing the capital markets business[13] Income and Expenses - Pre-tax income decreased by 4% to $731 million compared to $760 million in the prior year quarter, but increased by 30% from $563 million in the previous quarter[26] - Total non-interest expenses for the quarter were $2,996 million, an increase of 11% from $2,702 million in the prior year quarter[28] - Total non-interest expenses for the twelve months ended September 30, 2025, were $8,462 million, reflecting a 10% increase from $7,674 million in 2024[45] Equity and Capital Ratios - Annualized return on common equity for the fourth quarter was 19.6%, while the adjusted return on tangible common equity was 23.9%[5] - Total capital ratio at the end of the quarter was 24.1%, well above regulatory requirements[19] - Total common equity attributable to Raymond James Financial, Inc. rose to $12.4 billion, reflecting a 7% increase from $11.6 billion year-over-year[32] - Common equity tier 1 capital ratio remained stable at 22.9% compared to 22.6% year-over-year[32] Interest Income and Loans - Net interest income and RJBDP fees for the quarter were $653 million, a 4% decrease from $678 million year-over-year[33] - The bank segment reported a net interest income of $551 million for the quarter, compared to $532 million in the previous quarter[34] - Total bank deposits rose to $57,634 million, reflecting a cost of 2.68%, compared to $54,862 million at 3.40% in the previous quarter[34] - Bank loans, net, increased by 12% to $51.6 billion as of September 30, 2025, compared to $46.0 billion in 2024[58] Earnings Per Share - Basic earnings per share increased by 3% to $3.03 from $2.93 in the prior year quarter, and diluted earnings per share also rose by 3% to $2.95 from $2.86[26] - Adjusted diluted earnings per share for the twelve months ended September 30, 2025, was $10.66, up from $10.05 in the previous year, indicating a growth of 6.1%[65] - Adjusted basic earnings per share rose to $3.19 in Q4 2025, compared to $3.03 in Q4 2024, reflecting a year-over-year increase of 5.3%[65] Tax and Regulatory Compliance - The effective tax rate for the quarter was 17.4%, down from 20.8% in the same quarter of 2024[26] - Total criticized loans as of September 30, 2025, were $660 million, a decrease of 3% from $679 million in 2024[58] Miscellaneous - The firm returned over $1.5 billion to shareholders through common share repurchases and dividends in fiscal 2025[4] - The company experienced a $58 million reserve increase associated with a legal settlement, impacting the Capital Markets segment for both Q4 2025 and the twelve months ended September 30, 2025[71]