The wealth management group, which operates in a number of countries, became the latest to report results for the three months to June 30.

Florida-based Raymond James yesterday reported net revenues of $1.83 billion and net income of $172 million, or $1.23 per diluted share, for the three months ended June 30. Net income fell by 34 per cent on the same period in 2019.

The 5 per cent year-on-year fall in quarterly net revenues compared with the prior year’s quarter was largely driven by the impact of lower short-term interest rates on both net interest income and Raymond James Bank Deposit Program fees from third-party banks.

Raymond James said that the 11 per cent sequential decline in quarterly net revenues was mainly caused by lower short-term interest rates and lower asset management and related administrative fees, primarily based on private client group assets in fee-based accounts at the beginning of the quarter.

“While financial advisor transitions were initially disrupted by the crisis, particularly for our employee affiliation as offices were closed, recruiting activity is now strong for all of our affiliation options, facilitated by our significant technology investments over the past several years,” chairman and chief executive Paul Reilly, said. “Although lower interest rates have negatively affected our financial performance, the record results generated in our fixed income business during the quarter highlight the benefit of having diverse and complementary businesses.”

Private Client Group
At the private client group, quarterly net revenues were $1.25 billion, falling by 8 per cent on a year before. Quarterly pre-tax income was $91 million, sliding by 35 per cent on a year earlier.

Private client group assets under administration were $833.1 billion, rising by 6 per cent over June 2019 and 14 per cent over March 2020. PCG assets in fee-based accounts were $443.0 billion, rising by 11 per cent over June 2019 and 16 per cent over March 2020. 

There was a record number of PCG financial advisors standing at 8,155, net increases of 251 over June 2019 and seven over March 2020.