Raymond James Financial Inc (RJF) Reports Fiscal Fourth Quarter and Fiscal 2023 Results
Raymond James Financial Inc (NYSE:RJF) reported record annual net revenues of $11.62 billion and net income of $1.73 billion for fiscal 2023.
The company's fiscal fourth quarter saw net revenues of $3.05 billion, up 8% over the prior year's fiscal fourth quarter.
Net income available to common shareholders for the fiscal fourth quarter was $432 million, or $2.02 per diluted share.
Client assets under administration reached $1.26 trillion and financial assets under management of $196.4 billion.
Raymond James Financial Inc (NYSE:RJF) released its earnings report on October 25, 2023, revealing record annual net revenues of $11.62 billion and net income available to common shareholders of $1.73 billion for fiscal 2023. This represents an increase of 6% and 15%, respectively, over fiscal 2022. The company's return on common equity stood at 17.7% and adjusted return on tangible common equity at 22.5% for fiscal 2023.
Fourth Quarter Performance
For the fiscal fourth quarter, Raymond James reported record quarterly net revenues of $3.05 billion, an 8% increase over the prior years fiscal fourth quarter and a 5% increase over the preceding quarter. The quarterly net income available to common shareholders was $432 million, or $2.02 per diluted share. After excluding $34 million of expenses related to acquisitions, the adjusted net income available to common shareholders was $457 million, or $2.13 per diluted share.
Segment Results
The Private Client Group and Bank segments generated record net revenues and the Private Client Group generated record pre-tax income for the fiscal year. The Private Client Group reported record quarterly net revenues of $2.27 billion, up 14% over the prior years fiscal fourth quarter. The Capital Markets segment saw a decrease in net revenues by 15% compared to the prior years fiscal fourth quarter. The Asset Management segment reported quarterly net revenues of $236 million, up 9% over the prior years fiscal fourth quarter. The Bank segment reported quarterly net revenues of $451 million, up 5% over the prior years fiscal fourth quarter.
Company's Outlook
Despite the challenging macroeconomic environment, the company generated record net revenues and net income for fiscal year 2023. The CEO, Paul Reilly, stated,
Our third consecutive year of record results once again highlights the strength of our diverse and complementary businesses. We enter fiscal 2024 with strong client asset levels and healthy pipelines for growth across the business; however, given uncertainty around interest rates and geopolitical conditions, we remain relentlessly focused on maintaining strong capital ratios and a flexible balance sheet to support our results in any market environment."
Financial Tables
The earnings report also included comprehensive financial tables detailing the company's performance over the fiscal year and the fourth quarter. These tables provide a detailed breakdown of revenues, net income, earnings per share, and other key financial metrics, offering a clear picture of the company's financial health and performance.
Conclusion
In conclusion, Raymond James Financial Inc (NYSE:RJF) demonstrated strong performance in fiscal 2023, achieving record annual net revenues and net income. Despite challenges in the macroeconomic environment, the company remains focused on maintaining strong capital ratios and a flexible balance sheet to support future results.
Explore the complete 8-K earnings release (here) from Raymond James Financial Inc for further details.
This article first appeared on GuruFocus.
