Raymond James Financial Inc. reported record fourth-quarter net revenues of $2.70 billion, a 30% jump from a year earlier and 9% over the preceding quarter.
Also at record levels was quarterly net income, which was at $429 million, or $2.02 per diluted share, and quarterly adjusted net income of $437 million, or $2.06 per diluted share, the company said in a news release.
The St. Petersburg, Fla.-based company attributed quarterly net revenue growth to record investment banking revenues and record asset management and related administrative fees, primarily due to higher private client group assets in fee-based accounts.
The company’s fee-based accounts resulted in record growth, largely driven by the net addition of financial advisors and equity market appreciation during the year. It reported assets under management of $191.9 billion, up 25% over last year and slightly above the third quarter, and net loans at Raymond James Bank of $25 billion. Private client group assets under administration were $1.12 trillion, up 26% over last year and 1% over June; private client group assets in fee-based accounts reached $627.1 billion, up 32% over last year and 2% over June 2021; and private client group had a year-over-year net gain of 243 financial advisors for a total of 8,482, 69 over June.
“Advisors are attracted to our robust technology capabilities and client-first values, particularly as they continue to adapt how they serve and meet the needs of their clients in an ever-changing environment,” chairman and CEO Paul Reilly said in a statement. “In fiscal 2021, we’ve proven once again that focusing on our time-tested client-first strategy of providing outstanding service to our advisors and their clients will guide us through uncertain market, economic and global conditions, in this case in record-setting fashion."
The company also had record revenues of $215 million in the merger and acquisition and advisory category, bolstered by record investment banking and fixed-income brokerage revenues. The record result represented an increase of 119% over the prior year’s fiscal fourth quarter and 41% over last quarter.
Pointing to strong capital ratios and quarter-end records for client assets, the number of private client group financial advisors and net loans at Raymond James Bank, Reilly said the company is well positioned to enter fiscal 2022. He further noted that advisor recruiting remains robust across employee, independent contractor and independent RIA affiliation options.