Raymond James Financial Reports 17% Revenue Growth in Q1 Fiscal 2025

Raymond James Financial, Inc. reported a strong financial performance for the first quarter of fiscal 2025, ending December 31, 2024, with net revenues of $3.54 billion, a 17% increase from $3.01 billion in the same period last year. The company achieved a pre-tax income of $749 million, up 19% from $630 million, and net income available to common shareholders rose 21% to $599 million, translating to earnings per diluted share of $2.86, a 23% increase from $2.32 in the prior year. The firm’s return on common equity for the quarter was 20.4%, compared to 19.1% in the previous year.

The increase in revenues was primarily driven by higher asset management and related administrative fees, which rose significantly due to increased client assets in fee-based accounts resulting from equity market appreciation. Investment banking revenues also saw a notable increase, attributed to favorable market conditions, particularly in merger and acquisition activities. However, the firm experienced a decline in combined net interest income and RJBDP fees from third-party banks, which decreased by 4% due to lower interest rates compared to the prior year.

Operationally, Raymond James Financial reported a total of 204,910,034 shares of common stock outstanding as of February 5, 2025. The company has been actively managing its capital structure, with a recent authorization for common stock repurchases of up to $1.5 billion, replacing a previous authorization. During the quarter, the firm repurchased 310,302 shares for $50 million at an average price of $161.13 per share. The firm also increased its quarterly cash dividend by 11% to $0.50 per share.

In terms of strategic developments, Raymond James Financial continues to focus on growth through its Private Client Group (PCG) segment, which reported total client assets under administration of $1.56 trillion. The firm’s financial advisor recruiting pipeline remains solid, contributing to net new assets growth. The company is also investing in technology to enhance client services and support growth, which has led to increased non-compensation expenses.

Looking ahead, Raymond James Financial anticipates challenges in the second quarter due to two fewer billable days, which may impact asset management fees and net interest income. However, the firm remains optimistic about its investment banking revenues, expecting continued benefits from a conducive market environment for transaction closings. The company is well-positioned for long-term growth, supported by a strong capital position and a healthy pipeline of client assets.