Sep 30, 2020

Raymond James Q4 2020 Earnings Report

Raymond James Financial reported record quarterly net revenues driven by higher asset management and investment banking revenues.

Key Takeaways

Raymond James Financial reported Q4 2020 results with record quarterly net revenues of $2.08 billion, up 3% year-over-year and 13% sequentially. Quarterly net income was $209 million, or $1.50 per diluted share. The company achieved record client assets under administration and financial assets under management.

Record quarterly net revenues of $2.08 billion, up 3% over prior year’s fiscal fourth quarter and 13% over the preceding quarter

Quarterly net income of $209 million, or $1.50 per diluted share, and adjusted quarterly net income of $249 million, or $1.78 per diluted share

Record quarter-end for client assets under administration of $930.1 billion and financial assets under management of $153.1 billion

Record 8,239 Private Client Group financial advisors, net increases of 228 over September 2019 and 84 over June 2020

Total Revenue
$2.08B
Previous year: $2.02B
+2.8%
EPS
$1.19
Previous year: $1.33
-10.5%
PCG Assets Under Admin
$883B
Previous year: $798B
+10.6%
PCG Assets Fee Based
$475B
Previous year: $409B
+16.2%
Gross Profit
$7.66B
Previous year: $7.43B
+3.2%
Cash and Equivalents
$5.39B
Previous year: $3.96B
+36.2%
Free Cash Flow
$1.37B
Previous year: $642M
+113.7%
Total Assets
$47.5B
Previous year: $38.8B
+22.3%

Raymond James

Raymond James

Raymond James Revenue by Segment

Forward Guidance

Raymond James is well positioned entering fiscal 2021, with strong capital ratios and quarter-end records for client assets and the number of Private Client Group financial advisors.

Positive Outlook

  • Financial advisor recruiting activity remains robust across all of our affiliation options
  • Investment banking pipelines are strong
  • Strong capital ratios
  • Quarter-end records for client assets
  • Record number of Private Client Group financial advisors

Challenges Ahead

  • High degree of economic uncertainty associated with the ongoing COVID-19 pandemic
  • Continued headwinds from near-zero short-term interest rates
  • Closings may be affected if economic conditions deteriorate.

Revenue & Expenses

Visualization of income flow from segment revenue to net income