Q2 2025 Raymond James Financial Inc Earnings Call Transcript
Key Points
- Raymond James Financial Inc (RJF) reported strong financial results with quarterly net revenues of $3.4 billion and pre-tax income of $671 million, reflecting year-over-year growth of 9% and 10%, respectively.
- The Private Client Group ended the quarter with $1.54 trillion of client assets under administration, representing a year-over-year growth of 6%.
- The firm achieved record net revenues of $6.9 billion and record pre-tax income of $1.4 billion for the first six months of fiscal 2025, up 13% and 15% over the first half of fiscal 2024.
- Raymond James Financial Inc (RJF) was ranked number one in the 2025 J.D. Power Survey for Advised Investor Satisfaction and Industry Trust.
- The company has resumed share repurchases, buying back $250 million of common stock during the quarter and an additional $190 million in April, reflecting confidence in its long-term returns.
- The investment banking segment faced challenges due to market uncertainty and heightened volatility, impacting the timing of closings.
- Net new assets (NNA) were lower this quarter, similar to the same quarter in fiscal 2024, although there was improvement throughout the quarter.
- The fixed income market at the start of the third quarter is challenging, with market and interest rate uncertainty posing significant headwinds.
- The bank segment's net interest income grew only 1% sequentially, with a 7-basis point expansion of net interest margin to 2.67%, indicating modest growth.
- The company is no longer pursuing certain M&A opportunities due to valuation concerns, which may impact future growth prospects.
(audio in progress) fiscal 2025 second-quarter earnings call. This call is being recorded and will be available for replay on the company's Investor Relations website. I'm Kristina Waugh, Senior Vice President of Investor Relations. Thank you for joining us.
With me on the call today are Chief Executive Officer, Paul Shoukry; and Chief Financial Officer, Butch Oorlog. The presentation being reviewed today is available on our Investor Relations website following the prepared remarks, the operator will open line for questions.
Calling your attention to slide 2. Please note that certain statements made during this call may constitute forward-looking statements. These statements include, but are not limited to, information concerning futures, strategic objectives, business prospects, financial results, industry or market conditions, anticipated timing and benefits of our acquisitions, or our level of success in integrating acquired businesses. anticipated results of litigation in regulatory development.
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