Raymond James Financial Reports Fiscal Second Quarter of 2024 Results - Seite 3

“Our advisor and client-focused culture and robust technology capabilities continue to drive strong advisor recruiting activity,” said Reilly. “Record PCG net revenues reflected 19% annual growth of client assets, driven by rising equity markets and net new assets⁽²⁾.”

Capital Markets

• Quarterly net revenues of $321 million, up 6% over the prior year’s fiscal second quarter and down 5% compared to the preceding quarter
• Quarterly pre-tax loss of $17 million
• Quarterly investment banking revenues of $171 million, up 18% over the prior year’s fiscal second quarter and 1% over the preceding quarter

Quarterly net revenues grew 6% over the prior-year quarter primarily the result of higher investment banking revenues. Sequentially, quarterly net revenues declined 5%, primarily driven by lower fixed income brokerage revenues and M&A and advisory revenues, partially offset by higher debt underwriting revenues.

“Investment banking revenues increased slightly from the preceding quarter driven primarily by higher debt underwriting revenues,” said Reilly. “Our M&A pipeline and new business activity remain healthy; however, the timing of closings remains difficult to predict.”

Asset Management

• Record quarterly net revenues of $252 million, up 17% over the prior year’s fiscal second quarter and 7% over the preceding quarter
• Quarterly pre-tax income of $100 million, up 22% over the prior year’s fiscal second quarter and 8% over the preceding quarter
• Record financial assets under management of $227 billion, up 17% over March 2023 and 5% over December 2023

Record quarterly net revenues grew 17% year-over-year and 7% sequentially largely attributable to higher financial assets under management due to higher equity markets and net inflows into fee-based accounts in the Private Client Group.

Bank

• Quarterly net revenues of $424 million, down 21% compared to the prior year’s fiscal second quarter and 4% compared to the preceding quarter
• Quarterly pre-tax income of $75 million, down 18% compared to both the prior year’s fiscal second quarter and the preceding quarter
• Bank segment net interest margin (“NIM”) of 2.66% for the quarter, down 97 basis points compared to the prior year’s fiscal second quarter and 8 basis points compared to the preceding quarter
• Net loans of $44.1 billion, up 1% over March 2023 and down slightly compared to December 2023

Quarterly net revenues declined 21% year-over-year and 4% sequentially due to lower NIM. The Bank segment’s NIM decreased 8 basis points during the quarter to 2.66%, largely the result of increased interest expense from higher-cost funding as ESP balances replaced a portion of lower-cost Raymond James Bank Deposit Program client cash sweep balances, which were swept to third-party banks.