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Raymond James Financial 8-K Report, Financial Results (Jul 24, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed July 24, 2024
Period End
July 24, 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 8-K filed July 24, 2024. Cited figures are marked; the original filing is the authoritative source.

Raymond James Financial, Inc. reported record fiscal third-quarter 2024 results for the quarter ended June 30, 2024.

Net revenues were $3.23 billiona, up 11% from the prior year's fiscal third quarter and up 4% from the preceding quarter. Net income available to common shareholders was $491 million, or $2.31 per diluted share, compared with $369 million ($1.71 per diluted share) a year earlier. Excluding $23 million of acquisition-related expenses, adjusted net income available to common shareholders was $508 million, or $2.39 per diluted share.

Growth was driven primarily by asset management and related administrative fees, which rose to $1.61 billionb, and a bank loan benefit for credit losses compared with a provision in the prior-year periods. Client metrics were at record levels. Client assets under administration reached $1.48 trillion, up 15% year over year, and Private Client Group assets in fee-based accounts reached $820.6 billion, up 18%.

Domestic Private Client Group net new assets were $16.5 billionc for the quarter, an annualized growth rate of 5.2%. Total clients' domestic cash sweep and Enhanced Savings Program balances declined 3% to $56.4 billion. For the first nine months of fiscal 2024, record net revenues were $9.36 billion, up 9%, and diluted earnings per share were $6.85, up 15%.

The company repurchased approximately 2 million shares for $243 milliond in the quarter and had approximately $945 million remaining under its repurchase authorization. At quarter end, the total capital ratio was 23.6% and the tier 1 leverage ratio was 12.7%.

The Bank segment's net interest margin was 2.64%, down 62 basis points from the prior year, while Bank pre-tax income rose 74% to $115 million. The filing furnishes the earnings press release, a financial supplement and an earnings presentation as exhibits.

02—Key points

Key Highlights

  1. Record quarterly net revenues of $3.23 billion, up 11% year over year and 4% sequentially.
  2. Net income available to common shareholders of $491 million, or $2.31 per diluted share; adjusted diluted EPS of $2.39, excluding $23 million of acquisition-related expenses.
  3. Client assets under administration of $1.48 trillion (up 15%) and Private Client Group fee-based account assets of $820.6 billion (up 18%), both records.
  4. Domestic Private Client Group net new assets of $16.5 billion, an annualized growth rate of 5.2%.
  5. Clients' domestic cash sweep and ESP balances fell 3% to $56.4 billion; Bank segment net interest margin was 2.64%, down 62 basis points year over year.
  6. Repurchased about 2 million shares for $243 million in the quarter, with roughly $945 million remaining under the authorization.
  7. Capital remained strong, with a total capital ratio of 23.6% and a tier 1 leverage ratio of 12.7% at quarter end.

03—Questions

Frequently Asked Questions

  1. What drove the increase in quarterly revenue and earnings?

    Net revenues rose 11% year over year, primarily driven by higher asset management and related administrative fees, which reached $1.61 billion. Net income also benefited from a bank loan benefit for credit losses, compared with a provision in the prior-year periods.

  2. How did client asset growth and net new assets perform?

    Client assets under administration reached a record $1.48 trillion, up 15% over June 2023. Domestic Private Client Group net new assets were $16.5 billion for the quarter, an annualized growth rate of 5.2%, compared with 5.4% a year earlier and 3.2% in the preceding quarter.

  3. What happened to cash sweep and Enhanced Savings Program balances?

    Total clients' domestic cash sweep and ESP balances were $56.4 billion, down 3% compared with both June 2023 and March 2024. The filing states that these balances are a source of fee and deposit revenue for the firm.

  4. How is the Bank segment performing?

    Bank segment net revenues were $418 million, down 19% year over year, mostly due to lower net interest margin. Pre-tax income rose 74% to $115 million, predominantly because expenses fell and the segment recorded a loan loss benefit rather than a provision.

  5. What capital return and capital position did the company report?

    The company repurchased about 2 million shares for $243 million in the quarter at an average price of $122 per share and had approximately $945 million left under its repurchase authorization. Total capital ratio was 23.6% and tier 1 leverage ratio was 12.7%, which the company described as well above regulatory requirements.

04—Continue

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