Raymond James Financial on Wednesday reported record net quarterly revenue of $1.69 billion and record net income of $193.5 million for its fiscal fourth quarter ended September.
Annual net revenues of $6.37 billion also set a new mark along with record annual net income of $636.2 million.
Pre-tax income in the firm’s private client unit—its largest business by far—contributed to the streak, hitting a record $373 million for the year. Net revenues in the retail business totaled $4.42 billion over 12 months, also a record. Assets under administration by advisors hit a high of $659.5 billion, an increase of 15 percent from a year ago.
Results were fueled by growth in fee accounts and higher interest rates, along with the bull market in stocks.
The current fiscal first quarter “should look pretty good” if the markets hold up, chief executive Paul Reilly told analysts on a call Thursday. But for the rest of the year “the big question mark is the stock market.”
Raymond James’ independent contractor business is its fastest-growing channel, Reilly said.
The independent unit, Raymond James Financial Services (RJFS), added 257 advisors during the fiscal year, bringing total headcount to 4,305.
Raymond James Associates, the employee channel, saw a net loss of 57 advisors over the year, to 3,041.
The firm has a “substantial backlog” in recruiting, Reilly said, with $80 million worth of recruited revenue committed so far this year. “Most of those [advisors] will show up,” he said.
Earlier this year, the firm cut payouts for both its independent and employee reps, saying the changes were needed to fund investments in the firm and adjust for higher production levels that earn progressively higher payouts. The RJFS pay plan was also redone to be product-neutral and comply with the DOL rule.