Yahoo Finance

• Net Revenues: $3.4 billion for the fiscal second quarter, up 9% year-over-year.

• Pre-Tax Income: $671 million, a 10% increase over the year-ago quarter.

• Net Income Available to Common Shareholders: $493 million.

• Earnings Per Diluted Share: $2.36; adjusted earnings per diluted share of $2.42.

• Pre-Tax Margin: 19.7%; adjusted pre-tax margin of 20.3%.

• Return on Common Equity: 16.4%; adjusted return on tangible common equity of 19.7%.

• Client Assets Under Administration: $1.54 trillion, a 6% year-over-year growth.

• Net New Assets: $8.8 billion, representing a 2.6% annualized growth rate.

• Loans: Ended the quarter at a record $48.3 billion.

• Share Repurchases: $250 million during the quarter at an average share price of $146; additional $190 million in April at $125 per share.

• Private Client Group Revenues: $2.49 billion, driven by 6% higher assets under administration.

• Capital Markets Revenues: $396 million, with a 23% year-over-year growth.

• Asset Management Revenues: $289 million, with strong net inflows of $3.7 billion.

• Bank Segment Revenues: $434 million, with a net interest margin of 2.67%.

• Compensation Expense: $2.2 billion, with a total compensation ratio of 64.8%.

• Non-Compensation Expenses: $528 million, a 2% sequential increase.

• Effective Tax Rate: 26.2% for the quarter.

• Warning! GuruFocus has detected 2 Warning Sign with RJF.

Release Date: April 23, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Raymond James Financial Inc (NYSE:RJF) reported strong financial results with quarterly net revenues of $3.4 billion and pre-tax income of $671 million, reflecting year-over-year growth of 9% and 10%, respectively.

• The Private Client Group ended the quarter with $1.54 trillion of client assets under administration, representing a year-over-year growth of 6%.

• The firm achieved record net revenues of $6.9 billion and record pre-tax income of $1.4 billion for the first six months of fiscal 2025, up 13% and 15% over the first half of fiscal 2024.

• Raymond James Financial Inc (NYSE:RJF) was ranked number one in the 2025 J.D. Power Survey for Advised Investor Satisfaction and Industry Trust.

• The company has resumed share repurchases, buying back $250 million of common stock during the quarter and an additional $190 million in April, reflecting confidence in its long-term returns.

Negative Points

• The investment banking segment faced challenges due to market uncertainty and heightened volatility, impacting the timing of closings.

• Net new assets (NNA) were lower this quarter, similar to the same quarter in fiscal 2024, although there was improvement throughout the quarter.

• The fixed income market at the start of the third quarter is challenging, with market and interest rate uncertainty posing significant headwinds.

• The bank segment's net interest income grew only 1% sequentially, with a 7-basis point expansion of net interest margin to 2.67%, indicating modest growth.

• The company is no longer pursuing certain M&A opportunities due to valuation concerns, which may impact future growth prospects.