Raymond James Financial Reports Fiscal Third Quarter of 2024 Results

Core Insights - The company reported record client assets under administration of $1.48 trillion and record Private Client Group assets in fee-based accounts of $820.6 billion, reflecting increases of 15% and 18% respectively compared to June 2023 [1][5][6] - Quarterly net revenues reached $3.23 billion, an increase of 11% year-over-year and 4% sequentially, primarily driven by higher asset management and related administrative fees [2][6] - The company achieved a quarterly net income available to common shareholders of $491 million, or $2.31 per diluted share, with adjusted net income of $508 million, or $2.39 per diluted share [1][2] Financial Performance - For the first nine months of fiscal 2024, record net revenues totaled $9.36 billion, up 9% from the same period in fiscal 2023, with earnings per diluted share increasing by 15% to $6.85 [3][4] - The Private Client Group and Asset Management segments generated record net revenues and pre-tax income during the first nine months of the fiscal year [3] - The company repurchased approximately 2 million shares of common stock for $243 million during the fiscal third quarter [1][12] Segment Results Private Client Group - The Private Client Group reported record quarterly net revenues of $2.42 billion, up 11% year-over-year and 3% sequentially [5] - Record assets under administration in the Private Client Group reached $1.42 trillion, a 15% increase over June 2023 [5][6] - Domestic Private Client Group net new assets for the fiscal third quarter were $16.5 billion, reflecting an annualized growth rate of 5.2% [5][7] Capital Markets - Quarterly net revenues in the Capital Markets segment were $330 million, up 20% year-over-year, driven by higher investment banking revenues [7][8] - Investment banking revenues increased slightly from the preceding quarter, primarily due to higher debt and equity underwriting revenues [8] Asset Management - The Asset Management segment achieved record quarterly net revenues of $265 million, up 17% year-over-year [8] - Financial assets under management reached $229.3 billion, an increase of 14% over June 2023 [8] Banking - The Bank segment reported quarterly net revenues of $418 million, down 19% year-over-year, but pre-tax income increased by 74% due to lower expenses [9] - Record net loans amounted to $45.1 billion, up 4% over June 2023 [9][10] Capital and Shareholder Returns - The company maintained a total capital ratio of 23.6% and a tier 1 leverage ratio of 12.7%, both exceeding regulatory requirements [12] - The firm has repurchased $600 million of common shares through the first nine months of fiscal 2024, with approximately $945 million remaining under the Board's approved repurchase authorization [12]