• Domestic Private Client Group net new asset(1) growth of 9.0% for the fiscal year and 8.3% annualized for the fiscal fourth quarter
• Record quarterly net revenues of $2.83 billion, up 5% over the prior year’s fiscal fourth quarter and 4% over the preceding quarter
• Quarterly net income available to common shareholders of $437 million, or $1.98 per diluted share, and quarterly adjusted net income available to common shareholders of $459 million(2), or $2.08 per diluted share(2)
• Record annual net revenues of $11.0 billion, record annual net income available to common shareholders of $1.51 billion, or $6.98 per diluted share, and record annual adjusted net income available to common shareholders of $1.62 billion(2), or $7.49 per diluted share(2)
• Client assets under administration of $1.09 trillion and financial assets under management of $173.8 billion
• Record net loans in the Bank segment of $43.2 billion, up 73% over September 2021 and 3% over June 2022
• Net interest income and Raymond James Bank Deposit Program (“RJBDP”) fees from third-party banks of $606 million during the quarter, up 206% over the prior year’s fiscal fourth quarter and 64% over the preceding quarter
• Annualized return on common equity for the quarter of 18.7% and annualized adjusted return on tangible common equity for the quarter of 24.1%(2)

Raymond James Financial, Inc. (NYSE: RJF) today reported net revenues of $2.83 billion and net income available to common shareholders of $437 million, or $1.98 per diluted share, for the fiscal fourth quarter ended September 30, 2022. Excluding $30 million of expenses related to acquisitions, quarterly adjusted net income available to common shareholders was $459 million(2), or $2.08 per diluted share(2).

Quarterly net revenues grew 5% over the prior year’s fiscal fourth quarter and 4% over the preceding quarter, largely driven by the benefit of higher short-term interest rates on net interest income and RJBDP fees from third-party banks, which more than offset declines in asset management and related administrative fees and total brokerage revenues largely attributable to the decline in equity markets.

Quarterly net income available to common shareholders increased 2% compared to the prior year’s fiscal fourth quarter reflecting the aforementioned revenue growth which was partially offset by higher non-compensation expenses and a higher effective tax rate. The fiscal fourth quarter included a full quarter of results for TriState Capital(3) and SumRidge Partners(4) which added approximately $25 million of incremental non-compensation expenses sequentially, excluding bank loan provision for credit losses. The effective tax rate for the quarter increased to 28.7%, primarily attributable to nondeductible losses on the corporate owned life insurance portfolio.

Compared to the prior fiscal year, record net revenues of $11.0 billion increased 13%, record pre-tax income increased 13%, record earnings per diluted share of $6.98 increased 5%, and adjusted earnings per diluted share of $7.49(2) increased 3%. Return on common equity for the fiscal year was 17.0% and adjusted return on tangible common equity was 21.1%(2).

“Notwithstanding the challenging and volatile market environment during the fiscal year, we generated record results with annual net revenues and pre-tax income growth of 13%, which was driven by strong organic growth, particularly in the Private Client Group segment, the benefit of higher short-term interest rates and, most importantly, our advisors’ and associates’ unwavering focus on always putting their clients first,” said Chair and CEO Paul Reilly. “We also made significant progress deploying capital over the past year, successfully completing our strategic acquisitions of Charles Stanley, TriState Capital and SumRidge Partners. We are well positioned entering fiscal 2023 with strong capital ratios and a flexible balance sheet, which should support our results in any market environment.”

Segment Results

Private Client Group

• Record quarterly net revenues of $1.99 billion, up 11% over the prior year’s fiscal fourth quarter and 2% over the preceding quarter
• Record quarterly pre-tax income of $371 million, up 67% over the prior year’s fiscal fourth quarter and 48% over the preceding quarter
• Record annual net revenues of $7.71 billion and record annual pre-tax income of $1.03 billion, up 17% and 38%, respectively, over fiscal 2021
• Private Client Group assets under administration of $1.04 trillion, down 7% compared to September 2021 and 3% compared to June 2022
• Private Client Group assets in fee-based accounts of $586.0 billion, down 7% compared to September 2021 and 3% compared to June 2022
• Private Client Group financial advisors of 8,681(5) increased 199 over September 2021 and 65 over June 2022
• Clients’ domestic cash sweep balances of $67.1 billion, up 1% over September 2021 and down 12% compared to June 2022

Growth in quarterly net revenues and pre-tax income was driven primarily by the increases in RJBDP fees and net interest income which more than offset the market-driven declines in asset management and related administrative fees and brokerage revenues.

Total clients’ domestic cash sweep balances ended the quarter at $67.1 billion, up 1% over September 2021 and down 12% compared to June 2022. The sequential decline reflects expected cash sorting activity given the higher short-term interest rate environment, which has continued in October. These balances do not include any high-yield savings deposits or money market fund balances.

“Our client-first values and leading technology and product offerings resulted in strong retention and recruitment of financial advisors in fiscal 2022, which led to robust domestic Private Client Group net new assets of approximately $95 billion, or 9% of beginning of period assets,” said Reilly. “Entering fiscal 2023, financial advisor recruiting activity remains strong across our employee, independent contractor and independent RIA affiliation options.”

Capital Markets

• Quarterly net revenues of $399 million, down 28% compared to the prior year’s fiscal fourth quarter and up 4% over the preceding quarter
• Quarterly pre-tax income of $66 million, down 64% compared to the prior year’s fiscal fourth quarter and up 8% over the preceding quarter
• Quarterly investment banking revenues of $207 million, down 41% compared to the prior year’s fiscal fourth quarter and 5% compared to the preceding quarter
• Annual net revenues of $1.81 billion and annual pre-tax income of $415 million, down 4% and 22%, respectively, compared to a record fiscal 2021

Quarterly net revenues declined 28% compared to the prior-year quarter largely driven by lower investment banking revenues and fixed income brokerage revenues. Sequentially, quarterly net revenues grew 4% as increases in the affordable housing investments business and M&A revenues offset declines in brokerage and underwriting revenues.

“Following last year’s record results, the Capital Markets segment generated its second highest revenues and pre-tax income in fiscal 2022 bolstered by record M&A revenues,” said Reilly. “Looking ahead, heightened volatility and macroeconomic uncertainties will continue to impact capital markets activity. However, investments we have made in expanding our M&A platform and adding high-quality expertise and capabilities, including the recent acquisition of technology-driven fixed income market maker SumRidge Partners, should position us well over the long term.”

Asset Management

• Quarterly net revenues of $216 million, down 9% compared to the prior year’s fiscal fourth quarter and 5% compared to the preceding quarter
• Quarterly pre-tax income of $83 million, down 27% compared to the prior year’s fiscal fourth quarter and 11% compared to the preceding quarter
• Record annual net revenues of $914 million and annual pre-tax income of $386 million, up 5% and down 1%, respectively, compared to fiscal 2021
• Financial assets under management of $173.8 billion, down 9% compared to September 2021 and 5% compared to June 2022

The decline of quarterly net revenues and pre-tax income was largely attributable to lower financial assets under management, as net inflows into fee-based accounts in the Private Client Group were offset by fixed income and equity market declines.

Bank

• Record quarterly net revenues of $428 million, up 143% over the prior year’s fiscal fourth quarter and 55% over the preceding quarter
• Quarterly pre-tax income of $123 million, up 52% over the prior year’s fiscal fourth quarter and 66% over the preceding quarter
• Bank segment net interest margin (“NIM”) of 2.91% for the quarter, up 99 basis points over the prior year’s fiscal fourth quarter and 50 basis points over the preceding quarter
• Record annual net revenues of $1.08 billion and annual pre-tax income of $382 million, up 61% and 4%, respectively, over fiscal 2021
• Record net loans of $43.2 billion, up 73% over September 2021 and 3% over June 2022

Quarterly net revenue and pre-tax income growth was primarily due to the inclusion of TriState Capital Bank for a full quarter, as well as NIM expansion. The Bank segment’s NIM increased 50 basis points during the quarter to 2.91%, reflecting higher short-term interest rates and the relatively high concentration of floating-rate assets. Net loans grew 3% over the preceding quarter primarily driven by higher residential mortgages and corporate loans. TriState Capital Bank also generated sequential growth of securities-based loans. The credit quality of the loan portfolio remained strong, with criticized loans as a percent of total loans held for investment ending the quarter at 1.14%, down from 3.27% at September 2021 and 1.63% at June 2022. Bank loan allowance for credit losses as a percent of total loans held for investment was 0.91%, and bank loan allowance for credit losses on corporate loans as a percent of corporate loans held for investment was 1.73%.

Other

The firm repurchased 600,000 shares of common stock for approximately $62 million at an average price of approximately $104 per share in the fiscal fourth quarter. Including additional share repurchases totaling $38 million in October, approximately $800 million remained available under the Board’s approved share repurchase authorization as of October 26, 2022. At the end of the quarter, the total capital ratio was 20.5%(6) and the tier 1 leverage ratio was 10.3%(6), both well above the regulatory requirements.

A conference call to discuss the results will take place tomorrow morning, Thursday, October 27, at 8:15 a.m. ET. The live audio webcast, and the presentation which management will review on the call, will be available at www.raymondjames.com/investor-relations/financial-information/quarterly-earnings.  For a listen-only connection to the conference call, please dial: 800-694-6012 (conference code: 22021089).  An audio replay of the call will be available at the same location until December 31, 2022. 

Click here to view full earnings results, earnings supplement, and earnings presentation.

About Raymond James Financial, Inc.

Raymond James Financial, Inc. (NYSE: RJF) is a leading diversified financial services company providing private client group, capital markets, asset management, banking and other services to individuals, corporations and municipalities.  The company has approximately 8,700 financial advisors. Total client assets are $1.09 trillion. Public since 1983, the firm is listed on the New York Stock Exchange under the symbol RJF. Additional information is available at www.raymondjames.com.

Forward-Looking Statements

Certain statements made in this press release may constitute “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information concerning future strategic objectives, business prospects, anticipated savings, financial results (including expenses, earnings, liquidity, cash flow and capital expenditures), industry or market conditions, demand for and pricing of our products, acquisitions, divestitures, anticipated results of litigation, regulatory developments, and general economic conditions. In addition, future or conditional verbs such as “will” and “should,” as well as any other statement that necessarily depends on future events, are intended to identify forward-looking statements. Forward-looking statements are not guarantees, and they involve risks, uncertainties and assumptions. Although we make such statements based on assumptions that we believe to be reasonable, there can be no assurance that actual results will not differ materially from those expressed in the forward-looking statements. We caution investors not to rely unduly on any forward-looking statements and urge you to carefully consider the risks described in our filings with the Securities and Exchange Commission (the “SEC”) from time to time, including our most recent Annual Report on Form 10-K, and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, which are available at www.raymondjames.com and the SEC’s website at www.sec.gov. We expressly disclaim any obligation to update any forward-looking statement in the event it later turns out to be inaccurate, whether as a result of new information, future events, or otherwise.

Media Contact: Steve Hollister
Raymond James
727.567.2824

Investor Contact: Kristina Waugh
Raymond James
727.567.7654