Raymond James quarterly profit jumps on wealth management, capital markets strength

Oct 23 (Reuters) – Raymond James reported a near 36% jump in adjusted fourth-quarter profit on Wednesday, driven by robust performance in its capital markets and wealth management businesses.
Quarterly net revenue jumped 9% to about $2.48 billion in the firm’s private client group unit, primarily driven by higher asset management and related administrative fees and brokerage revenues.
The unit, which provides financial planning, investment advisory, and securities transaction services to clients through financial advisers, generates more than two-thirds of the company’s revenue.
In the private client group, assets under administration jumped 25% to about $1.51 trillion, while domestic net new assets came in at $13 billion for the fourth quarter.
Capital markets was another bright spot, with quarterly net revenue surging 42% to $483 million from a year earlier.
Economic resilience and surging markets have given corporate executives the confidence to strike deals and pursue stock and debt offerings.
Raymond James was the traditional “lead left” underwriter on Guardian Pharmacy’s $112 million initial public offering in September.
The firm also advised regional lender First Busey on its $917 million deal struck in August to buy smaller rival CrossFirst Bankshares.
Total investment banking revenue rose 56% to $315 million.
“We are well positioned entering fiscal 2025 with record client asset levels, healthy pipelines for growth across the business and ample funding to support balance sheet growth,” said CEO Paul Reilly.
Wall Street giant Morgan Stanley had posted a 56% surge in investment banking fees, while Goldman Sachs saw a 20% gain and JPMorgan Chase a 31% jump.
Deals announced globally in 2024 totaled $909 billion as of Sept. 30, up 22% year-on-year, Dealogic data showed.
Raymond James’ total net revenue rose 13% to $3.46 billion.
Adjusted net income available to common shareholders rose to $621 million, or $2.95 per share, in the three months ended Sept. 30, from $457 million, or $2.13 per share, a year earlier.
Shares of the company rose nearly 1% after the bell.
(Reporting by Jaiveer Singh Shekhawat and Arasu Kannagi Basil in Bengaluru; Editing by Sriraj Kalluvila)