Raymond James Financial (RJF) Q4 Earnings call transcript Oct 23, 2024

In the recent fiscal fourth quarter earnings call, Raymond James Financial reported a record-breaking performance, underscoring the strength and resilience of the company. Despite facing significant challenges in the form of natural disasters and market uncertainties, Raymond James managed to maintain its momentum, setting new records for net revenues, net income, and earnings per share.

Robust Financial Performance

Raymond James concluded fiscal 2024 with record net revenues and net income, demonstrating the robustness and diversification of its business model. The company reported record quarterly net revenues of $3.46 billion, net income available to common shareholders of $601 million, and earnings per diluted share of $2.86. Excluding expenses related to acquisitions, adjusted net income available to common shareholders was $621 million or $2.95 per diluted share.

Client Assets at an All-Time High

Raymond James continued to see growth in client assets, reaching record levels of $1.57 trillion. This achievement was driven by rising equity markets and solid adviser retention and recruiting in the Private Client Group. Domestic net new assets were $13 billion for the quarter, representing a 4% annualized growth rate, while for the fiscal year, domestic net new assets were $60.7 billion, representing a 5.5% growth rate.

Strategic Recruiting Efforts

The company's recruiting efforts in the fourth quarter were particularly noteworthy, with financial advisers joining the firm with approximately $100 million of trailing 12-month production and $17.5 billion of client assets at their previous firms. These recruits, along with assets recruited into the growing RIA & Custody Services division, totaled $22.3 billion in client assets for the quarter, surpassing the previous best quarter in terms of recruited assets.

Looking Ahead

Raymond James remains optimistic about its future prospects, with a focus on serving advisers across its multiple affiliation options. The company's robust technology capabilities and client-first values continue to enable it to retain and attract high-quality advisers, ensuring it remains a destination of choice in the industry.

Conclusion

Raymond James Financial's strong fourth quarter and fiscal year performance highlights its ability to navigate challenges and capitalize on opportunities. With a focus on growth, innovation, and client service, the company is well-positioned to continue its trajectory of success in the face of an evolving market landscape.