US-listed Raymond James Financial has released financial results for the three months ending 30 June 2022.

This week Raymond James Financial, headquartered in St Petersburg, Florida reported a 10 per cent rise in net revenues for the three months ending June 30, 2022, reaching $2.72 billion, compared with the same period last year and up 2 per cent from the previous quarter.

This was largely driven by higher short-term interest rates on Raymond James Bank Deposit Program (“RJBDP”) fees from third-party banks and net interest income, which more than offset the declines in total brokerage revenues and investment banking revenues resulting from the challenging market environment, the firm said in a statement.

All four operating segments generated record net revenues, and the private client group, capital markets, and asset management segments generated record pre-tax income during the first nine months of the fiscal year, the US-listed firm said.

Quarterly net income available to common shareholders declined by 3 per cent compared with the prior year and 7 per cent compared with the preceding quarter, reflecting increased business development expenses and a higher bank loan provision for credit losses, the firm said.

Domestic private client group net new asset growth reached 9.4 per cent over the prior 12 months, the firm continued.

Record net loans in the bank segment of $41.8 billion were also recorded, which includes 8 per cent sequential growth at Raymond James Bank and $11.8 billion of loans acquired with TriState Capital Bank, up 75 per cent over June 2021 and 50 per cent over March 2022, the firm said.

Net interest income and RJBDP fees from third-party banks totaled $370 million during the quarter, up 102 per cent over the prior year’s fiscal third quarter and 65 per cent over the preceding quarter.

For the first nine months of the fiscal year for 2022, annualized returns on common equity reached 16.3 per cent, annualized return on tangible common equity was18.7 per cent, and annualized adjusted return on tangible common equity was 20.1 per cent.

Welcoming the results, chairman and CEO Paul Reilly said: “Despite the challenging economic conditions during the quarter, our solid financial performance reinforces our diversified and client-focused business model.”  

“Furthermore, strong financial advisor retention and recruiting results helped us achieve attractive organic growth, with domestic private client group net new asset growth of 9.4 per cent over the prior 12 months,” he added.

Raymond James, which operates in a number of jurisdictions, is a diversified financial services company providing private client group, capital markets, asset management, banking and other services to individuals and corporations, with total client assets of $1.13 trillion. As regularly reported in FWR, it operates a network model, bringing scores of wealth managers and teams into its system.