Key facts
- Raymond James Financial reported increased profit in its third and fourth quarters.
- Strong performance in the capital markets unit and a rebound in dealmaking boosted earnings.
- Private client group assets under administration reached a record $1.86 trillion.
- Capital markets revenue increased significantly in both quarters.
- Global M&A activity showed resilience and growth.
Raymond James Financial reported an increase in profit for both its third and fourth quarters, primarily driven by the strong performance of its capital markets division and a resurgence in dealmaking.
The company's private client group saw its assets under administration rise by 18% to a record $1.86 trillion, with net revenue in this unit climbing 14% to $2.84 billion, fueled by higher asset management fees. CEO Paul Shoukry highlighted the continued strength in the private client group, noting that fee-based assets reached a record $1.15 trillion.
In the third quarter, capital markets revenue increased by 25% to $477 million, and total investment banking revenue saw a 40% jump to $285 million. Adjusted net income available to common shareholders rose to $620 million, or $3.14 per share, compared to $449 million, or $2.18 per share, in the prior year.
For the fourth quarter, capital markets net revenues were $513 million, up from $483 million a year earlier. Adjusted net income stood at $635 million, or $3.11 per share, compared to $621 million, or $2.95 per share, in the year-ago period. The private client group also experienced a 7% revenue increase in the fourth quarter. Shoukry expressed confidence in the company's positioning for fiscal year 2026, citing record client asset levels and a strong investment banking pipeline.