February 23, 2024



Raymond James’ wealth management arm posted another record quarter despite stand still Consultants grow after impressive hiring drive last year.

The St. Petersburg, Fla.-based firm reported record first-quarter revenue for its wealth business, Domestic Private Client Group, and said it added $21.5 billion in net assets during the quarter, the results showed. release Wednesday.

Strong wealth segment results helped company-wide profits of $427 million rise 32% over the past year, despite a 16% decline from the previous quarter.

“PCG continued to generate strong organic growth, again evident in this quarter, as we continue to focus on retaining, supporting and attracting high-quality financial advisors,” Chairman and Chief Executive Officer Paul Reilly said on the earnings call.

However, the company added a net 27 advisors over the past quarter, implying a mere 0.3% increase in total advisors. The lackluster record comes after the firm added just 18 net new advisors during the quarter. The regional brokerage and wealth advisor ended the quarter with 8,726 advisors, still down from 8,730 a year earlier.

Advisers hired over the past year manage nearly $38 billion in assets at their legacy firms, Reilly said, and that “in our current advisor hiring pipeline, we have several engagements from teams that are $5 million to $20 million in annual turnover. promise.”

The company missed estimates with $1.93 per diluted share, missing analysts by 18% consensus $2.36.

In addition, the domestic cash settlement balance was $52.2 billion, down 32% from $76.5 billion in the same period last year and down 14% from $60.4 billion in the previous quarter.corporate bank be late keep the game customer cash Competitive income product but trying to make up for lost time with the recently launched enhanced savings plan for qualified Account – requires at least $100,000 to open, among other conditions.

The program added $2.75 billion in deposits last month, bringing the total to $4.5 billion as of this week, Reilly said.

“In the wake of the collapse of Silicon Valley Bank, a significant portion of these new balances came from brand new customers for the company, underscoring the appeal of the product, where Raymond James is seen as a source of strength and stability,” Chief Financial Officer Paul Shukry said. Said on the phone.

Bloomberg Intelligence analyst Neil Sipes said the results appear to be consistent with those Yesterday at StifelA rival regional firm also saw record revenue in its wealth arm.

He added that the recent slowdown in hiring doesn’t necessarily reflect the larger picture of “modest” growth in the firm’s advisory workforce and a steady rise in net new assets — an arguably more important metric. Nearly $22 billion in net new assets is “pretty strong” for Raymond James and represents 8 percent annualized organic growth, Sipes said.

“Clients are either continuing to add money to their Raymond James accounts, or they are acquiring new clients,” Sipes said, adding, “Part of this may be that turbulent times lead people to seek more advice.”

To see the highlights of Raymond James’ first-quarter earnings, scroll down the slideshow. In response to reports of the company’s fourth-quarter earnings, Click here. Looking at the third quarter results, Click here.

Note: Raymond James’ private client group includes Raymond James Financial Services, an independent brokerage firm, Raymond James & Associates, an employee wealth management firm, and Registered Investment Advisor & Custody Services, the firm’s custodian.