Raymond James Financial, Inc. (RJF) Bundle
A Brief History of Raymond James Financial, Inc.
Raymond James Financial, Inc. (NYSE: RJF) has established itself as a leading diversified financial services company. As of 2024, it provides an array of services including private client group, capital markets, asset management, and banking. The firm has approximately 8,800 financial advisors and total client assets amounting to $1.57 trillion.
Financial Performance Overview
For the fiscal year ending September 30, 2024, Raymond James reported record net revenues of $12.82 billion, reflecting a 10% increase from the previous fiscal year. The net income available to common shareholders was $2.06 billion, or $9.70 per diluted share, marking a 22% rise compared to the prior year.
| Financial Metric | 2024 | 2023 | Change (%) |
|---|---|---|---|
| Net Revenues ($ billion) | 12.82 | 11.62 | 10% |
| Net Income ($ billion) | 2.06 | 1.73 | 19% |
| Earnings per Diluted Share ($) | 9.70 | 7.97 | 22% |
Segment Performance
The firm's key segments include Private Client Group, Capital Markets, and Asset Management. In 2024, the Private Client Group achieved record net revenues of $9.46 billion, a 9% increase year-over-year. Meanwhile, Capital Markets reported robust growth, especially in investment banking revenues, which surged by 58% to $306 million in the fourth quarter.
| Segment | Net Revenues ($ billion) | Pre-Tax Income ($ billion) | Year-over-Year Change (%) |
|---|---|---|---|
| Private Client Group | 9.46 | 1.79 | 9% |
| Capital Markets | 1.57 | 0.67 | 21% |
| Asset Management | 6.19 | 0.42 | 16% |
Market Position and Client Assets
As of September 30, 2024, Raymond James reported record assets under administration of $1.51 trillion, an increase of 25% from the previous year. The firm also saw significant net inflows into fee-based accounts, amounting to $60.7 billion for the fiscal year.
| Client Asset Metrics | 2024 | 2023 | Change (%) |
|---|---|---|---|
| Assets Under Administration ($ trillion) | 1.51 | 1.21 | 25% |
| Net New Assets ($ billion) | 60.7 | 57.0 | 5.5% |
Stock Performance and Shareholder Returns
In fiscal 2024, Raymond James returned approximately $1.3 billion to shareholders through share repurchases and dividends. The firm repurchased 7.7 million shares at an average price of $117 per share, leaving $645 million available under its repurchase authorization.
The firm maintained strong capital ratios, with a total capital ratio of 24.1% and a Tier 1 leverage ratio of 12.8%, both of which are well above regulatory requirements.
| Capital Ratios | 2024 | 2023 |
|---|---|---|
| Total Capital Ratio (%) | 24.1 | 22.8 |
| Tier 1 Leverage Ratio (%) | 12.8 | 11.9 |
The effective tax rate for the fourth quarter of 2024 was 20.8%, reflecting a favorable impact from non-taxable valuation gains associated with the corporate-owned life insurance portfolio.
Overall, Raymond James Financial, Inc. has demonstrated significant growth and resilience in a competitive market, positioning itself favorably for future opportunities.
A Who Owns Raymond James Financial, Inc. (RJF)
Ownership Structure
As of 2024, Raymond James Financial, Inc. (RJF) has a diverse ownership structure, comprising institutional investors, individual shareholders, and company executives.
Major Shareholders
The largest institutional shareholders include:
- BlackRock, Inc. - 9.2% ownership
- The Vanguard Group, Inc. - 8.1% ownership
- State Street Corporation - 5.5% ownership
- Wellington Management Co. LLP - 4.5% ownership
- J.P. Morgan Chase & Co. - 3.2% ownership
Insider Ownership
Insider ownership is also significant, with key executives holding substantial shares:
- Paul Reilly (Chairman & CEO) - 1.1 million shares
- Jennifer H. McCarty (CFO) - 250,000 shares
- Other executives and board members collectively hold approximately 1.5 million shares.
Shareholder Composition Table
| Shareholder Type | Percentage Ownership | Number of Shares (approx.) |
|---|---|---|
| BlackRock, Inc. | 9.2% | 6.3 million |
| The Vanguard Group, Inc. | 8.1% | 5.5 million |
| State Street Corporation | 5.5% | 3.8 million |
| Wellington Management Co. LLP | 4.5% | 3.1 million |
| J.P. Morgan Chase & Co. | 3.2% | 2.2 million |
| Insider Holdings | ~2.5% | 1.8 million |
Recent Changes in Ownership
In 2024, Raymond James Financial, Inc. repurchased approximately 2.6 million shares for $300 million, reflecting a strategic move to enhance shareholder value.
Market Capitalization
As of September 30, 2024, the market capitalization of Raymond James Financial, Inc. was approximately $8.5 billion, with total assets reported at $82.99 billion.
Stock Performance
The stock price of RJF has shown a growth trend, with a year-over-year increase of approximately 22%, driven by robust financial performance.
Client Assets
Raymond James Financial reported client assets under administration of $1.57 trillion, marking a 25% increase from the previous year.
Financial Overview
| Financial Metric | Q4 2024 | Q4 2023 |
|---|---|---|
| Net Revenues | $3.46 billion | $3.05 billion |
| Net Income | $601 million | $432 million |
| Earnings per Share (Diluted) | $2.86 | $2.02 |
| Total Assets | $82.99 billion | $78.36 billion |
| Total Common Equity | $11.59 billion | $10.14 billion |
Conclusion on Ownership Trends
The ownership landscape of Raymond James Financial, Inc. continues to evolve with significant institutional backing and robust insider holdings, reflecting confidence in the company’s strategic direction and financial health.
Raymond James Financial, Inc. (RJF) Mission Statement
Overview of Mission Statement
Raymond James Financial, Inc. (RJF) operates with a mission focused on delivering personalized financial services to its clients, emphasizing trust, integrity, and the provision of innovative solutions. The company aims to empower its clients to achieve their financial goals through a wide range of investment and wealth management services.
Core Values
- Client Centricity: Prioritizing the needs and goals of clients in every aspect of the business.
- Integrity: Upholding the highest standards of honesty and ethical behavior.
- Innovation: Continuously seeking new and effective ways to serve clients and enhance services.
- Collaboration: Fostering teamwork and partnerships both internally and externally.
Financial Performance Indicators
As of fiscal year 2024, Raymond James Financial reported significant financial metrics that underscore its commitment to delivering shareholder value while fulfilling its mission:
| Metric | FY 2024 | FY 2023 | Change (%) |
|---|---|---|---|
| Net Revenues | $12.82 billion | $11.62 billion | 10% |
| Net Income Available to Common Shareholders | $2.06 billion | $1.73 billion | 19% |
| Earnings Per Share (Basic) | $9.94 | $8.16 | 22% |
| Return on Common Equity | 18.9% | 17.7% | 6.77% |
| Client Assets Under Administration | $1.57 trillion | $1.26 trillion | 25% |
Service Offerings
The company offers a diverse range of services that align with its mission statement, including:
- Wealth Management
- Investment Banking
- Asset Management
- Capital Markets Services
- Banking Solutions
Client Engagement and Growth
In fiscal 2024, Raymond James Financial achieved substantial growth in client engagement metrics:
| Metric | FY 2024 | FY 2023 | Change (%) |
|---|---|---|---|
| Net New Assets (Domestic Private Client Group) | $60.7 billion | $73.3 billion | -17.8% |
| Total Clients’ Domestic Cash Sweep and Enhanced Savings Program Balances | $57.9 billion | $56.4 billion | 2.7% |
| Total Financial Advisors | 8,787 | 8,712 | 0.86% |
Conclusion on Mission Alignment
Raymond James Financial's mission is reflected in its robust financial performance and commitment to client service. The company’s strategic initiatives and operational metrics demonstrate its focus on achieving long-term goals while maintaining a client-first approach.
How Raymond James Financial, Inc. (RJF) Works
Company Overview
Raymond James Financial, Inc. (NYSE: RJF) operates as a diversified financial services company providing a range of services including private client group, capital markets, asset management, and banking. As of September 30, 2024, the company reported total client assets under administration of $1.57 trillion, reflecting a 25% increase year-over-year.
Financial Performance
For the fiscal year ending September 30, 2024, Raymond James achieved record net revenues of $12.82 billion, a 10% increase from $11.62 billion in the previous year. Net income available to common shareholders was $2.06 billion, representing a 19% increase compared to $1.73 billion in fiscal 2023. The earnings per diluted share rose to $9.70, up from $7.97 in the prior year.
| Metrics | Fiscal Year 2024 | Fiscal Year 2023 | Change (%) |
|---|---|---|---|
| Net Revenues ($ billion) | 12.82 | 11.62 | 10% |
| Net Income ($ billion) | 2.06 | 1.73 | 19% |
| Earnings Per Share ($) | 9.70 | 7.97 | 22% |
Segment Performance
Raymond James operates in several key segments, each contributing to the overall financial performance:
- Private Client Group: Generated record net revenues of $9.46 billion, up 9% year-over-year.
- Capital Markets: Reported quarterly net revenues of $483 million, a 42% increase from the previous year, driven by strong investment banking performance.
- Asset Management: Achieved record net revenues of $1.03 billion, a 16% increase over the previous year.
- Bank: Reported annual net revenues of $1.72 billion, down 15% from fiscal 2023, primarily due to lower net interest income.
| Segment | Net Revenues ($ million) | Change (%) |
|---|---|---|
| Private Client Group | 9,460 | 9% |
| Capital Markets | 1,472 | 21% |
| Asset Management | 1,030 | 16% |
| Bank | 1,720 | -15% |
Client Assets and New Business
As of September 30, 2024, total client assets under administration reached $1.57 trillion. The Private Client Group reported net new assets of $60.7 billion for fiscal 2024, representing a growth rate of 5.5% from the beginning of the year.
| Client Asset Metrics | Value ($ billion) | Change (%) |
|---|---|---|
| Total Client Assets Under Administration | 1,571.1 | 25% |
| Private Client Group Assets Under Administration | 1,507.0 | 25% |
| Private Client Group Net New Assets | 60.7 | 5.5% |
Capital Ratios and Financial Health
Raymond James maintains strong capital ratios, with a total capital ratio of 24.1% and a Tier 1 capital ratio of 22.8% as of September 30, 2024. The company’s return on common equity was reported at 18.9% for the fiscal year.
| Capital Ratios | Value (%) |
|---|---|
| Total Capital Ratio | 24.1 |
| Tier 1 Capital Ratio | 22.8 |
| Return on Common Equity | 18.9 |
Shareholder Returns
In fiscal 2024, Raymond James returned approximately $1.3 billion to shareholders through share repurchases and dividends. The company repurchased 7.7 million shares at an average price of $117 per share during the fiscal year.
| Shareholder Returns | Value ($ billion) |
|---|---|
| Total Capital Returned | 1.3 |
| Shares Repurchased (million) | 7.7 |
| Average Price Per Share ($) | 117 |
How Raymond James Financial, Inc. (RJF) Makes Money
Revenue Segments
Raymond James Financial, Inc. operates through several key segments that contribute to its overall revenue, including the Private Client Group, Capital Markets, Asset Management, and Banking.
Private Client Group
The Private Client Group is the largest segment, generating significant revenue through asset management and related administrative fees, brokerage revenues, and account service fees.
| Metrics | Q4 2024 | Q4 2023 | % Change |
|---|---|---|---|
| Net Revenues | $2.48 billion | $2.27 billion | 9% |
| Pre-tax Income | $461 million | $477 million | (3%) |
| Assets Under Administration | $1.51 trillion | — | 25% |
| Assets in Fee-Based Accounts | $875.2 billion | — | 28% |
| Net New Assets (Annual) | $60.7 billion | — | 5.5% |
Capital Markets
The Capital Markets segment focuses on investment banking and advisory services, which saw substantial growth in recent quarters.
| Metrics | Q4 2024 | Q4 2023 | % Change |
|---|---|---|---|
| Net Revenues | $483 million | $341 million | 42% |
| Pre-tax Income | $95 million | ($7 million) | NM |
| Investment Banking Revenues | $306 million | $194 million | 58% |
| M&A and Advisory Revenues | $205 million | $141 million | 45% |
Asset Management
Raymond James has also expanded its Asset Management services, contributing to revenue growth through higher asset management fees.
| Metrics | Q4 2024 | Q4 2023 | % Change |
|---|---|---|---|
| Net Revenues | $275 million | $236 million | 17% |
| Pre-tax Income | $116 million | $100 million | 16% |
| Assets Under Management | $244.8 billion | — | 25% |
Banking Segment
The Banking segment provides interest income primarily through loans and deposits, although it faced slight revenue declines recently.
| Metrics | Q4 2024 | Q4 2023 | % Change |
|---|---|---|---|
| Net Revenues | $433 million | $451 million | (4%) |
| Pre-tax Income | $98 million | $78 million | 26% |
| Net Loans | $46.0 billion | — | 5% |
| Net Interest Margin | 2.62% | — | (25 bps) |
Overall Financial Performance
For the fiscal year 2024, Raymond James reported strong overall financial performance with significant year-over-year growth.
| Metrics | FY 2024 | FY 2023 | % Change |
|---|---|---|---|
| Total Net Revenues | $12.82 billion | $11.62 billion | 10% |
| Net Income Available to Common Shareholders | $2.06 billion | $1.73 billion | 19% |
| Earnings per Share (Diluted) | $9.70 | $7.97 | 22% |
| Return on Common Equity | 18.9% | 17.7% | — |
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Article updated on 8 Nov 2024
Resources:
- Raymond James Financial, Inc. (RJF) Financial Statements – Access the full quarterly financial statements for Q4 2024 to get an in-depth view of Raymond James Financial, Inc. (RJF)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Raymond James Financial, Inc. (RJF)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.