Raymond James Financial (RJF) Q4 2024 earnings summary

Executive summary

• Achieved record net revenues of $3.46 billion and net income of $601 million in Q4, with adjusted net income of $621 million and adjusted EPS of $2.95, both up over 38% year-over-year.

• Fiscal year 2024 saw record net revenues of $12.82 billion and net income of $2.06 billion, up 10% and 19% year-over-year, respectively.

• Client assets under administration reached a record $1.57 trillion, up 25% year-over-year, with fee-based accounts at $875 billion.

• Returned approximately $1.3 billion to shareholders through dividends and share repurchases, repurchasing 7.7 million shares for $900 million in fiscal 2024.

• Adjusted earnings per share for Q4 were $2.95, up 38% year-over-year.

Financial highlights

• Q4 net revenues up 13% year-over-year and 7% sequentially; asset management and related fees grew 15% year-over-year.

• Q4 annualized return on common equity was 21.2%; adjusted return on tangible common equity was 25.8%.

• Book value per share at year-end was $57.03, up 17% year-over-year; tangible book value per share was $48.43, up 21%.

• Pre-tax margin for fiscal 2024 was 20.6%; adjusted pre-tax margin was 21.4%.

• Net interest margin for Q4 was 2.62% firmwide, 3.34% for the bank segment.

Outlook and guidance

• Entering fiscal 2025 with record client asset levels, strong growth pipelines, and ample capital.

• Expect asset management and related fees to benefit from a 6% sequential increase in PCG fee-based assets.

• Advisor recruiting remains robust, with a strong pipeline of large teams.

• Optimism for continued growth in M&A and advisory revenues, supported by a robust pipeline.

• Management remains focused on maintaining strong capital ratios and a flexible balance sheet.