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Raymond James Financial Quarterly Report for Q3 Ended Jun 30, 2024

Filing Date
Filed August 6, 2024
Period End
June 30, 2024
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 · Jun ’16Jun ’16
  2. Material agreement8-K · Feb ’19Feb ’19
  3. Leadership change8-K · Dec ’22Dec ’22
  4. Leadership change8-K · Sep ’26Sep ’26

01—Abstract

Summary

Summary of the 10-Q filed August 6, 2024. Cited figures are marked; the original filing is the authoritative source.

Raymond James Financial, Inc. reported fiscal third-quarter 2024 results (quarter ended June 30, 2024) with net revenues of $3.23 billiona, up 11% from the prior-year quarter, and pre-tax income of $644 million, up 33%.

Net income available to common shareholders was $491 millionb and diluted earnings per share were $2.31, compared with $1.71 a year earlier. For the nine months, net revenues were $9.36 billion (up 9%), pre-tax income was $1.88 billion (up 11%), and diluted EPS was $6.85. Growth was driven mainly by higher asset management and related administrative fees, which rose 17% in the quarter on higher fee-based client assets, while combined net interest income and RJBDP fees from third-party banks declined as deposit funding shifted to higher-cost ESP balances.

Bank segment net interest margin fell to 2.64% from 3.26%. The balance sheet remained well capitalized, with the Tier 1 leverage ratio at 12.7% and total capital ratio at 23.6% as of June 30, 2024, and the firm reported $2.1 billionc of cash at the parent. The company repurchased 2.0 million shares for $243 million in the quarter and stated it expects to accelerate repurchases.

Total client assets under administration were $1.48 trilliond, and bank loans, net were $45.1 billion. The filing also discloses a settlement in principle with the SEC's Division of Enforcement over records preservation practices, including a $50 million civil monetary penalty accrued at June 30, 2024, subject to SEC final approval. Management cautioned that future economic deterioration could increase bank loan provisions for credit losses, that short-term interest rate changes affect RJBDP fee and net interest income, and that the expected fourth-quarter outlook includes higher asset management fees and improving investment banking revenues.

02—Key points

Key Highlights

  1. Net revenues of $3.23 billion for the quarter, up 11% year over year; pre-tax income of $644 million, up 33%.
  2. Diluted EPS of $2.31 for the quarter versus $1.71 a year earlier; annualized ROCE of 17.8% and ROTCE of 21.2%.
  3. Asset management and related administrative fees rose to $1.61 billion in the quarter from $1.37 billion, driven by higher fee-based client assets.
  4. Combined net interest income and RJBDP fees from third-party banks declined to $672 million from $708 million, as deposit mix shifted to higher-cost ESP balances.
  5. Bank segment net interest margin decreased to 2.64% from 3.26%, and the bank loan provision was a $10 million benefit versus a $54 million provision a year earlier.
  6. Capital remained strong, with a Tier 1 leverage ratio of 12.7% and total capital ratio of 23.6%; $944 million remained under the repurchase authorization.
  7. Settlement in principle with the SEC's Division of Enforcement on records preservation, including a $50 million civil monetary penalty accrued, subject to SEC final approval.

03—One dollar

04—Financials

Financial Highlights

Figures from 10-QQ3 FY2024filed August 6, 2024
Revenue$3.76BNet Income$492.00M13.1% Net MarginEPS (Diluted)$2.31Total Assets$80.63BCash & Equivalents$9.10BFree Cash Flow$655.00M

Financial Statements

Q3 FY2024 against Q3 FY2023

Line itemQ3 FY2024Q3 FY2023Change
Revenue$3.76B$3.29B+14.2%
Net Income$492.00M$369.00M+33.3%
EPS (Basic)$2.37$1.75+35.4%
EPS (Diluted)$2.31$1.71+35.1%
Shares Outstanding (Basic)206.80M210.10M−1.6%
Shares Outstanding (Diluted)212.30M214.80M−1.2%

05—Questions

Frequently Asked Questions

  1. How did Raymond James perform in the fiscal third quarter of 2024?

    Net revenues were $3.23 billion, up 11%, and pre-tax income was $644 million, up 33%. Net income available to common shareholders was $491 million, up 33%, and diluted EPS was $2.31 versus $1.71 a year earlier.

  2. What drove revenue growth?

    Higher asset management and related administrative fees, which rose to $1.61 billion from $1.37 billion, largely due to higher PCG client assets in fee-based accounts from market appreciation and advisor recruiting. Brokerage revenues and investment banking also increased.

  3. Were there any negative trends in the results?

    Combined net interest income and RJBDP fees from third-party banks fell to $672 million from $708 million, as higher-cost ESP deposits replaced lower-cost RJBDP balances and interest expense rose significantly. Bank segment net revenues decreased 19%.

  4. How much capital did the company return to shareholders?

    In the quarter, the company repurchased 2.0 million shares for $243 million at an average price of $121.98, and paid a quarterly common dividend of $0.45 per share. Management stated it expects to accelerate share repurchases given its capital and liquidity levels.

  5. What regulatory matter does the filing disclose?

    The firm reached a settlement in principle with the SEC's Division of Enforcement over its compliance with records preservation requirements for business communications sent over unapproved electronic messaging channels. It includes a $50 million civil monetary penalty, accrued as of June 30, 2024, and remains subject to SEC review and final approval.

06—Continue

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