Raymond James Financial (NYSE:RJF) Q4 2025 Earnings Call October 22, 2025 05:00 PM ET Company ParticipantsPaul Shoukry - CEOKristie Waugh - SVP of Investor RelationsButch Oorlog - CFODevin Ryan - Head of Financial Technology ResearchCraig Siegenthaler - Managing DirectorMichael Cyprys - Managing DirectorConference Call ParticipantsBill Katz - Senior Equity AnalystBrennan Hawken - Senior Equity Research AnalystNone - AnalystDan Fannon - Research AnalystMichael Choe - Investment Banking Credit AnalystKristie ...

Financial Data and Key Metrics Changes - The company reported quarterly net revenues of $3.7 billion, an increase of 8% year-over-year and 10% sequentially [6][18] - For fiscal 2025, record net revenues reached $14.1 billion, representing a 10% growth, while record pre-tax income was $2.71 billion, up 3% from fiscal 2024 [7][15] - Quarterly pre-tax income was $731 million, a decline of 4% compared to the previous year but an increase of 30% from the preceding quarter [6][15] Business Line Data and Key Metrics Changes - The Private Client Group achieved record quarterly net revenues of $2.66 billion, with pre-tax income of $416 million, driven by higher assets under administration [16][17] - The Capital Markets segment generated net revenues of $513 million, a 6% year-over-year increase, and pre-tax income of $90 million, with a robust 35% sequential growth [17][18] - The Asset Management segment reported record pre-tax income of $132 million on net revenues of $314 million, attributed to higher financial assets under management and strong net inflows [17][18] - The Bank segment's net revenues were $459 million, with pre-tax income of $133 million, reflecting continued loan growth [18][19] Market Data and Key Metrics Changes - The company ended the quarter with record client assets under administration of $1.6 trillion, an 11% year-over-year growth [8] - Domestic net new assets were nearly $18 billion for the quarter, representing a 5% annualized growth rate [9] - The bank segment's loans reached a record $51.6 billion, primarily due to a 22% annual growth in securities-based lending balances [12][25] Company Strategy and Development Direction - The company is focused on organic growth complemented by strategic acquisitions, maintaining a disciplined approach to capital deployment [13][14] - Investments in technology, including a $1 billion commitment to enhance advisor efficiency and client experience, are a priority [4][10] - The acquisition of Greensledge, a boutique investment bank, is expected to enhance the company's capabilities in structured credit and securitizations [11][73] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's competitive positioning and long-term growth strategy, emphasizing a stable platform for advisors [30][31] - The company anticipates continued strong demand for securities-based loans in a lower interest rate environment [44][68] - Management highlighted the importance of maintaining a strong balance sheet and liquidity to support growth initiatives [27][28] Other Important Information - The company returned over $1.5 billion to shareholders through dividends and share repurchases in fiscal 2025 [15][29] - The effective tax rate for the quarter was 17.4%, with an estimated rate of 24% to 25% for fiscal 2026 [28] Q&A Session Summary Question: Can you elaborate on the recruiting success across segments? - Management noted broad-based recruiting success across all affiliation options, with a strong pipeline entering fiscal 2026 [33][35] Question: What are the goals for AI initiatives? - The company aims to enhance infrastructure resilience, improve service efficiency, and provide tailored advice through AI investments [36][38] Question: What is the outlook for loan growth in a lower interest rate environment? - Management expects securities-based loans to continue being the highest growth category, with potential acceleration as rates decrease [44][68] Question: How will the company fund growth? - The company plans to utilize third-party deposits and manage its securities portfolio to support growth [58][60] Question: What are the criteria for future acquisitions? - The company emphasizes cultural fit, strategic alignment, and financial sensibility as key criteria for acquisitions [79][80]