ST. PETERSBURG, Fla., Oct. 27, 2021 (GLOBE NEWSWIRE) --

Record quarterly net revenues of $2.70 billion, up 30% over the prior year's fiscal fourth quarter and 9% over the preceding quarter
Record quarterly net income of $429 million, or $2.02 per diluted share⁽¹⁾, and quarterly adjusted net income of $437 million⁽²⁾, or $2.06 per diluted share^{(1) (2)}
Record annual net revenues of $9.76 billion, record annual net income of $1.40 billion, or $6.63 per diluted share⁽¹⁾, and annual adjusted net income of $1.49 billion⁽²⁾, or $7.05 per diluted share^{(1) (2)}
Quarter-end records for client assets under administration of $1.18 trillion, financial assets under management of $191.9 billion, and net loans at Raymond James Bank of $25.0 billion
Record Private Client Group financial advisors of 8,482, net increases of 243 over September 2020 and 69 over June 2021
Annualized return on equity for the quarter of 21.3% and annualized adjusted return on tangible common equity for the quarter of 24.1%⁽²⁾

ST. PETERSBURG, Fla – Raymond James Financial, Inc. (NYSE:RJF) today reported net revenues of $2.70 billion and net income of $429 million, or $2.02 per diluted share⁽¹⁾, for the fiscal fourth quarter ended September 30, 2021. Excluding $10 million of acquisition-related expenses, quarterly adjusted net income was $437 million⁽²⁾, or $2.06 per diluted share^{(1) (2)}. Quarterly net revenue growth was driven by record investment banking revenues and record asset management and related administrative fees, primarily due to higher Private Client Group assets in fee-based accounts.

Compared to the prior fiscal year, net revenues of $9.76 billion increased 22% in fiscal 2021, net income of $1.40 billion increased 72% and adjusted net income of $1.49 billion⁽²⁾ increased 74%. Return on equity for the fiscal year was 18.4% and adjusted return on tangible common equity was 21.6%⁽²⁾.

"In fiscal 2021, we've proven once again that focusing on our time-tested client-first strategy of providing outstanding service to our advisors and their clients will guide us through uncertain market, economic and global conditions, in this case in record-setting fashion," said Chairman and CEO Paul Reilly. "Through a combination of diverse and complementary businesses, we generated record results for the firm in fiscal 2021, which included record net revenues and pre-tax income in the Private Client Group, Capital Markets and Asset Management segments. We are well positioned entering fiscal 2022, with strong capital ratios and quarter-end records for client assets, the number of Private Client Group financial advisors and net loans at Raymond James Bank. Furthermore, financial advisor recruiting activity remains robust across all of our affiliation options and our investment banking pipelines are strong."

Segment Results

Private Client Group

Record quarterly net revenues of $1.80 billion, up 29% over the prior year's fiscal fourth quarter and 6% over the preceding quarter
Record quarterly pre-tax income of $222 million, up 78% over the prior year's fiscal fourth quarter and 14% over the preceding quarter
Record annual net revenues of $6.61 billion and annual pre-tax income of $749 million, up 19% and 39%, respectively, over fiscal 2020
Record quarter-end Private Client Group assets under administration of $1.12 trillion, up 26% over September 2020 and 1% over June 2021
Record quarter-end Private Client Group assets in fee-based accounts of $627.1 billion, up 32% over September 2020 and 2% over June 2021
Record Private Client Group financial advisors of 8,482, net increases of 243 over September 2020 and 69 over June 2021
Record clients' domestic cash sweep balances of $66.7 billion, up 20% over September 2020 and 6% over June 2021

Record quarterly results were primarily attributable to higher asset management and related administrative fees, reflecting record assets in fee-based accounts largely driven by the net addition of financial advisors and equity market appreciation during the year.

"Advisors are attracted to our robust technology capabilities and client-first values, particularly as they continue to adapt how they serve and meet the needs of their clients in an ever-changing environment," said Reilly. "Through a combination of strong retention and record recruiting, we finished the fiscal year with a record 8,482 financial advisors, representing a net increase of 243 during the year. Entering fiscal 2022, financial advisor recruiting activity remains strong across our employee, independent contractor and independent RIA affiliation options."

Capital Markets

Record quarterly net revenues of $554 million, up 35% over the prior year's fiscal fourth quarter and 24% over the preceding quarter
Record quarterly pre-tax income of $183 million, up 73% over the prior year's fiscal fourth quarter and 59% over the preceding quarter
Record annual net revenues of $1.89 billion and record annual pre-tax income of $532 million, up 46% and 136%, respectively, over fiscal 2020
Record quarterly investment banking revenues of $350 million, up 67% over the prior year's fiscal fourth quarter and 32% over the preceding quarter
Record merger & acquisition and advisory (M&A) revenues of $215 million, up 119% over the prior year's fiscal fourth quarter and 41% over the preceding quarter

Record quarterly results were driven by record M&A revenues and record equity underwriting revenues. Furthermore, Tax Credit Funds revenues were strong and fixed income brokerage revenues remained solid during the quarter.

"Driven by the continued investment and overall strength in the Global Equities and Investment Banking and Fixed Income platforms, Capital Markets generated record results in fiscal 2021 bolstered by record investment banking and fixed income brokerage revenues," said Reilly. "Entering fiscal 2022, investment banking pipelines remain robust and conditions are conducive to continued strength in fixed income brokerage activity."

Asset Management

Record quarterly net revenues of $238 million, up 29% over the prior year's fiscal fourth quarter and 6% over the preceding quarter
Record quarterly pre-tax income of $114 million, up 46% over the prior year's fiscal fourth quarter and 9% over the preceding quarter
Record annual net revenues of $867 million and record annual pre-tax income of $389 million, up 21% and 37%, respectively, over fiscal 2020
Record quarter-end financial assets under management of $191.9 billion, up 25% over September 2020 and slightly above June 2021

Record quarterly results were primarily attributable to growth of financial assets under management driven by net inflows to fee-based accounts in the Private Client Group, partially offset by market depreciation and net outflows for Carillon Tower Advisers during the quarter.

Raymond James Bank

Quarterly net revenues of $176 million, up 9% compared to the prior year's fiscal fourth quarter and 4% over the preceding quarter
Quarterly pre-tax income of $81 million, up 145% over the prior year's fiscal fourth quarter and down 22% compared to the preceding quarter
Annual net revenues of $672 million and annual pre-tax income of $367 million, down 12% and up 87%, respectively, compared to fiscal 2020
Record net loans of $25.0 billion, up 18% over September 2020 and 5% over June 2021
Net interest margin (NIM) of 1.92% for the quarter, down 17 basis points compared to the prior year's fiscal fourth quarter and flat compared to the preceding quarter

Net revenue growth was largely due to higher asset balances. Net loans grew 18% year-over-year and 5% sequentially, driven by higher securities-based loans to Private Client Group clients and growth in corporate loans. Year-over-year pre-tax income growth was due to the aforementioned revenue growth and a lower bank loan provision for credit losses in the current quarter. The bank loan allowance for credit losses as a percent of loans held for investment ended the quarter at 1.27%, down from 1.65% in September 2020 and 1.34% in June 2021.

Other

The Other segment included $18 million of valuation gains on private equity investments during the quarter, of which $5 million were attributable to noncontrolling interests and were offset in other expenses. At the end of the quarter, the total capital ratio was 26.2%⁽³⁾ and the tier 1 leverage ratio was 12.6%⁽³⁾, both well above the regulatory requirements.

A conference call to discuss the results will take place tomorrow morning, Thursday, October 28, at 8:15 a.m. ET. The live audio webcast, and the presentation which management will review on the call, will be available at www.raymondjames.com/investor-relations/financial-information/quarterly-earnings. For a listen-only connection to the conference call, please dial: 800-918-9477 (conference code: 21998510). An audio replay of the call will be available at the same location until December 31, 2021.

Click here to view full earnings results, earnings supplement, and earnings presentation.

About Raymond James Financial, Inc.

Raymond James Financial, Inc. (NYSE:RJF) is a leading diversified financial services company providing private client group, capital markets, asset management, banking and other services to individuals, corporations and municipalities. The company has approximately 8,500 financial advisors. Total client assets are $1.18 trillion. Public since 1983, the firm is listed on the New York Stock Exchange under the symbol RJF. Additional information is available at www.raymondjames.com.

Forward-Looking Statements

Certain statements made in this press release may constitute "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information concerning future strategic objectives, business prospects, anticipated savings, financial results (including expenses, earnings, liquidity, cash flow and capital expenditures), industry or market conditions, demand for and pricing of our products, acquisitions (including our proposed acquisitions of Charles Stanley Group PLC and TriState Capital Holdings, Inc.) and divestitures, anticipated results of litigation, regulatory developments, and general economic conditions. In addition, any other statement that necessarily depends on future events, is intended to identify forward-looking statements. Forward-looking statements are not guarantees, and they involve risks, uncertainties and assumptions. Although we make such statements based on assumptions that we believe to be reasonable, there can be no assurance that actual results will not differ materially from those expressed in the forward-looking statements. We caution investors not to rely unduly on any forward-looking statements and urge you to carefully consider the risks described in our filings with the Securities and Exchange Commission (the "SEC") from time to time, including our most recent Annual Report on Form 10-K, and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, which are available at www.raymondjames.com and the SEC's website at www.sec.gov. We expressly disclaim any obligation to update any forward-looking statement in the event it later turns out to be inaccurate, whether as a result of new information, future events, or otherwise.

Media Contact: Steve Hollister
Raymond James
727.567.2824

Investor Contact: Kristina Waugh
Raymond James
727.567.7654

Raymond James Financial Reports Fourth Quarter and Fiscal 2021 Results