Raymond James Financial Inc RJF

Alternate Symbol(s): RJF.P.B

Financial Services Asset Management

Raymond James Financial, Inc. is a diversified financial services company providing private client group (PCG), capital markets, asset management, banking and other services to individuals, corporations and municipalities. The Company's PCG services include financial planning, investment advisory and securities transaction services, which are provided to clients through financial advisors. Its capital markets services include investment banking, institutional sales, securities trading, equity research, and the syndication and management of investments in low-income housing funds and funds of a similar nature. Its asset management services include asset management, portfolio management and related administrative services that are provided to retail and institutional clients. Its banking services provide various types of loans, including securities-based loans, corporate loans (commercial and industrial, and commercial real estate), residential mortgage loans and tax-exempt loans.

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Raymond James Financial Inc

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Post by bc4uon Jan 24, 2013 1:52am

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RAYMOND JAMES FINANCIAL REPORTS FIRST QUARTER RESU

RAYMOND JAMES FINANCIAL REPORTS FIRST QUARTER RESULTS, 100 CONSECUTIVE PROFITABLE QUARTERS

JANUARY 23, 2013
ST. PETERSBURG, Fla. - Raymond James Financial, Inc. today reported record quarterly net revenues of $1.1 billion for the
first fiscal quarter of 2013, up 4 percent from the preceding quarter and up 42 percent from the prior year's first quarter.
Net income for the quarter was a record $85.9 million, or $0.61 per diluted share, up from $0.60 per diluted share from the
preceding quarter and up from $0.53 per diluted share, or 15 percent, from the prior year's quarter. Excluding $17.4 million of
pretax acquisition-related expenses, net income would have been $96.6(1) million or $0.69(1) per fully diluted share, flat with the
preceding quarter but up 30 percent over last year's quarter.
“The company generated impressive revenue given the market environment,” said CEO Paul Reilly. “This quarter, the bottom
line was satisfactory given that we continue to operate as planned at elevated support levels while we move toward completion
of the Morgan Keegan integration.
“More important, this represents the firm's 100th consecutive quarter of profitability, dating back to Black Monday in 1987. This is
a testament to our strength and stability derived from conservative management principles instilled by Bob and Tom James and
practiced throughout our 50-year history.”
Although the S&P 500 was down 1 percent for the quarter, financial assets under management grew to $46.5 billion, up 8.6
percent from the preceding quarter and up 33 percent from the previous year's quarter, aided by the $3.1 billion of assets from
the acquired interest in ClariVest Asset Management, LLC. Assets under administration also reached a new record of $392.0
billion, up slightly from the preceding quarter and up 45.4 percent from last year's quarter.
The Private Client Group reported solid results as revenue grew 3 percent over the preceding quarter. Pretax income was up 5
percent over the preceding quarter as compensation and technology expenses continue to remain elevated during the Morgan
Keegan integration. Recruiting activity remains robust. The decrease in financial advisors was once again driven in large part
by attrition of lower producing Morgan Keegan advisors. Retention levels remain extremely high for those Morgan Keegan
advisors offered retention packages. Productivity for financial advisors reached record highs for both our employee and
independent contractor divisions.
Capital Markets recorded 4 percent revenue growth over the preceding quarter driven by an impressive performance by the
Equity Capital Markets division, which set a quarterly record for investment banking revenues. This was driven by both a vibrant
underwriting calendar and record M&A activity. The Fixed Income division had a sequentially weaker quarter in both
commission volume and trading profits. Trading profits were adversely impacted by the sudden increase in tax-free interest
rates during the month of December.
Asset Management continued its steady performance. Revenue was up 7 percent over the preceding quarter while pretax
income increased 18 percent. Additionally, the investment in ClariVest and the addition of a small/mid-cap team in the quarter
should help continue its growth trajectory.
Raymond James Bank continued its growth as net loans grew by $468 million, or 5.9 percent, over the preceding quarter.
Despite that increase, the provision for loan losses was relatively low as the credit quality of the overall loan portfolio continues
to improve.
The Morgan Keegan integration remains on schedule and we expect to convert the Private Client Group to the Raymond James
system next month. “Morgan Keegan advisors are excited about getting access to our systems and products,” said Reilly. “We
will continue to run at elevated support levels through the conversion and look to achieve our efficiency targets after integration
is completed late in this fiscal year,” he continued.
“I am proud of our team of professionals and support staff and all they have accomplished during this integration,” stated Reilly.
“I am confident that this combination will result in a stronger and better positioned organization.”
(1) Refer to the discussion and reconciliation of the GAAP results to the non-GAAP measures that follows the consolidated statement of income.
The company will conduct its quarterly conference call Thursday, January 24, at 8:15 a.m. ET. For a listen-only connection, visit
raymondjames.com/analyst call for a live audio webcast. The subjects to be covered may include forward-looking information.
Questions may be posed to management by participants on the analyst call-in line, and in response the company may disclose
additional material information.