Against a background of tough markets, Raymond James – which operates a large franchise of advisory businesses in the UK – said commissions and fees dropped by 2 per cent from the same quarter in 2007 and net revenues were flat on a year before. Investment banking revenues were down by 39 per cent over the past 12 months.

The firm, headquartered in Florida, said the decline in its net income was magnified by a higher-than-normal 41 per cent tax rate caused by declines in the market value of certain securities.

“While we have successfully avoided almost all of the carnage suffered by the larger firms in the financial services sector through abstaining from participating in subprime mortgages, credit default swaps and high leverage, the fallout has definitely affected us,” said chairman and chief executive Thomas James in a statement.

“Traumatic times test a company’s strategic business plan, and the quality and soundness of its operational platform. In fact, our recruiting activity has never been more active and opportunities abound for an organization that is well-capitalised and well-run. Raymond James has proven its ability to withstand adversity and is poised to participate in the recovery, which should take place in the second half of 2009,” Mr James said.