Raymond James’ profits in the first quarter of the fiscal year outpace mergers and acquisitions, and investment banking revenues rise (NYSE:RJF)

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Raymond James Financial (NYSE: RJF) begins fiscal 2022 with record first-quarter net income growth of 43%, driven by record assets related management and administration fees and record investment banking revenue, said Chairman and CEO Paul Reilly.

“Furthermore, we are well positioned to enter the second quarter of the fiscal year, with record client assets under management of $1.26T, record financial assets under management of $203.2B, record net loans to Raymond James Bank by $26.1B and strong activity levels in both advisor recruitment and investment banking,” he said.

Q4 Adjusted EPS of $2.12 beats analysts’ average estimate of $1.76; goes from $2.06 in the previous quarter and from $1.49 in the same period of the previous year.

Total revenue of $2.82 billion in the first quarter, beating the consensus of $2.65 billion, fell from $2.70 billion in the fourth quarter of 2021 and from $2.22 billion in the first quarter of 2021.

Total non-interest expense of $2.22 billion increased from $2.14 billion in the fourth quarter of 2021 and from $1.82 billion in the year-ago quarter, compensation expense, commissions and benefits increased to $1.88 billion from $1.77 billion in the prior quarter and $1.50 billion in the prior year quarter. .

Private Client Group assets under administration of $1.20T increased 23% from December 2020 and 8% from September 2021. Group assets in fee-based accounts of $677.8B increased increased by 27% compared to a year ago and by 8% compared to the end of the fourth quarter of 2021.

Capital Markets net income of $614m was up 11% Q/Q and 36% Y/Y, with pre-tax income of $201m up 10% Q/Q and 62% Y/ Y. The segment achieved record M&A revenue of $271 million, up 26% from the fourth quarter of 2021 and 82% from the first quarter of 2021. Investment banking revenue of $412 million jumped 18% from the prior quarter and 62% from the prior year quarter.

Conference call January 27 at 8:15 a.m.

Earlier, Raymond James Financial non-GAAP EPS of $2.12 beats of $0.36

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