Raymond James Financial boosts quarterly profit

Jan 24 2013, 11:58 IST
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Raymond James Financial boosts quarterly profit. (Reuters) Raymond James Financial boosts quarterly profit. (Reuters)
SummaryRaymond James Financial Inc said quarterly profit rose 27.6 percent, boosted by strong performance from its brokerage and capital markets divisions.

Raymond James Financial Inc said quarterly profit rose 27.6 percent, boosted by strong performance from its brokerage and capital markets divisions.

The St. Petersburg, Florida-based company on Wednesday reported net income of $85.9 million, or 61 cents a share, in the fiscal first quarter ended Dec. 31, up from $67.3 million, or 53 cents, in the year-earlier period.

Excluding charges related to the company's takeover of Memphis-based Morgan Keegan from Regions Financial Corp, earnings rose 43 percent to $96.6 million, or 69 cents a share. Analysts on average had forecast earnings of 68 cents a share, according to Thomson Reuters I/B/E/S.

Net revenue rose 42 percent to $1.11 billion from a year earlier, above analyst expectations of $1.08 billion.

Year-over-year comparisons are skewed by the firm's $1.2 billion takeover of Morgan Keegan, which expanded its network of brokers by about 20 percent and added to Raymond James' fixed-income business.

Brokerage revenue rose 35 percent from the prior year to $712.8 million, fueled by strong recruiting activity of top advisers. Total client assets rose 45 percent to $392 billion, including roughly $22 billion in institutional assets.

The firm's ranks of U.S. advisers shrank by 25 during the quarter to a total of 5,427 at the end of December, which Raymond James attributed primarily to the attrition of lower-producing Morgan Keegan advisers.

"Retention levels remain extremely high for those Morgan Keegan advisers offered retention packages," the company said in a statement.

Including the UK, Canada and custody businesses, the firm had 6,289 advisers and representatives at the end of December.

Capital markets revenue surged 82 percent to $247.6 million, driven by strong mergers-and-acquisitions and underwriting activity.

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