Skip to content
AnalystLens

Raymond James Financial Annual Report, Year Ended Sep 30, 2007

Filing Date
Filed November 29, 2007
Period End
September 30, 2007
Security
RJF
In the record · 2016–202610-K1010-Q338-K266

RJF filed 10 annual reports (10-K), 33 quarterly reports (10-Q) and 266 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · May ’17May ’17
  2. Leadership change8-K · Dec ’19Dec ’19
  3. Leadership change8-K · Dec ’21Dec ’21
  4. FY2025 annual report10-K · Nov ’25Nov ’25

01—Abstract

Summary

Summary of the 10-K filed November 29, 2007. Cited figures are marked; the original filing is the authoritative source.

Raymond James Financial, Inc. (RJF) reported record annual results for fiscal year ended September 30, 2007, marking the fourth consecutive year of record revenues and earnings.

Total revenues were $3,109,579 thousanda ($3.11 billion), up 18% from the prior year, and net income was $250,430 thousand ($250.4 million), up 17%. Net revenues were $2.61 billion, up 11%, and net interest income rose 31%, driven largely by RJBank's growth. Diluted EPS was $2.11, compared with $1.85 in fiscal 2006.

Growth was concentrated in the Private Client Group, where pre-tax earnings rose to $219.9 millionb from $168.5 million, and in RJBank, whose revenues grew to $279.6 million from $114.7 million on a bank sweep program that moved client cash deposits into the bank. Total assets reached $16.25 billion at year-end, up from $11.52 billion, largely reflecting RJBank loan growth and bank deposits. Capital Markets pre-tax earnings declined 12% to $69.0 million on lower underwriting activity and weaker fixed income trading in the fourth quarter.

The filing also highlights risks: RJBank recorded a $32 millionc provision for loan losses as loans doubled, $300.6 million of syndicated loans were unsettled at year-end, and the company disclosed a pending Turkish tax assessment of about $7.6 million. The company also agreed to acquire a 51% stake in Law Enforcement Associates and substantially all assets of Sirchie Finger Print Laboratories, with its share of the purchase price of about $50 million.

02—Key points

Key Highlights

  1. Record fiscal 2007 total revenues of $3.11 billion, up 18%, and net income of $250.4 million, up 17%, the fourth consecutive year of record results.
  2. Net revenues of $2.61 billion rose 11%, with net interest income up 31% to $227.3 million.
  3. Diluted EPS of $2.11 versus $1.85 in fiscal 2006; book value per share of $15.07 at year-end.
  4. Private Client Group pre-tax earnings rose to $219.9 million from $168.5 million; RJA Financial Advisors increased average production 22% to $493,000.
  5. RJBank revenues more than doubled to $279.6 million and pre-tax earnings rose to $27.0 million, but a $32 million loan loss provision weighed on results.
  6. Capital Markets pre-tax earnings fell 12% to $69.0 million on lower underwriting commissions and a difficult fourth-quarter fixed income trading environment.
  7. Total assets grew to $16.25 billion from $11.52 billion, with $300.6 million of syndicated loans purchased but not yet settled at year-end.

03—Questions

Frequently Asked Questions

  1. How did Raymond James perform financially in fiscal 2007?

    The company reported record total revenues of $3,109,579 thousand and net income of $250,430 thousand for the year ended September 30, 2007, up 18% and 17% respectively from fiscal 2006. Diluted earnings per share were $2.11.

  2. What drove the growth in net interest income?

    Net interest income rose 31% to $227.3 million. RJBank was the main contributor, with net interest income increasing over 100%, supported by a second bulk transfer of $1.3 billion in client cash deposits in March 2007 and new client cash balances.

  3. What risks did the filing disclose related to RJBank's growth?

    Rapid loan growth required a provision of over $32 million for loan losses in 2007, and the filing notes that growth generally charges earnings in the period when loans are added. The company also had $300.6 million of syndicated loans not yet settled at September 30, 2007, expected to settle by December 31, 2007.

  4. What legal or tax matters are disclosed?

    The Turkish affiliate, Raymond James Yatyrym Menkul Kyymetler A.S., was assessed approximately $7.6 million for 2001 by Turkish tax authorities and is contesting the assessment. Potential liability for 2002 through 2004 could range from a few hundred thousand dollars to $7.5 million. The company also says the outcome of its other lawsuits and arbitrations is not expected to have a material adverse impact on its financial position or results of operations.

  5. What acquisitions did the company announce?

    In September 2007, a 100% owned indirect subsidiary, Sirchie Acquisition Company, LLC, agreed to acquire 51% of Law Enforcement Associates Corporation and substantially all assets of Sirchie Finger Print Laboratories, Inc. The company's share of the purchase price is approximately $50 million, with closing expected before January 31, 2008.

04—Continue

← View all 10-K filings