RJF - Earnings call transcript Q1 2025 | Raymond James Financial, Inc.

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Kristina Waugh

Good evening, and welcome to Raymond James Financial's Fiscal 2025 First Quarter Earnings Call. This call is being recorded and will be available for replay on the company's Investor Relations website. I'm Kristie Waugh, Senior Vice President of Investor Relations. Thank you for joining us.

call President, Chair Financial Paul Oorlog. the Officer, Chief Officer, on Reilly; Paul Shoukry; me today and are Executive Butch With and Chief presentation Raymond available The today Relations Investor website. on reviewed being James' is

prepared questions. the line remarks, open will Following the operator for the

call to but benefits this are litigation strategic or to, of of economic concerning industry financial constitute your not developments made attention market that objectives, statements our These future acquired X. timing and and limited Slide acquisitions conditions, level Calling our forward-looking results, success businesses, business note anticipated and statements. Please certain during anticipated may and include, prospects, statements general integrating in results conditions. of information regulatory

intends, future could, any and intended plans, estimates, words forward-looking on addition, well would necessarily In projects, depends statements. or may, events will, verbs future anticipates, the such should as and statements that as as are such as other expects, identify conditional forecasts to believes,

no website. note to consider differ these our you available Forms there urge Please X-K, and that expressed We XX-K risks our statements. which assurance can described Form from that those most on materially in the will subsequent in not results actual recent are be

call Now Paul? and over I'm turn happy CEO, to the Chair to Paul Reilly.

Paul Reilly

for Kristie. us you, Thank today. you Good joining Thank evening.

been over moment As and they have the we and investors a all. I'm I the thank sure to begin inform have constructive, years. take my helped XXst to you always and quarterly final And CEO, earnings call appreciated dialogue want as shareholders. our These has conversations

believe The commitment both and to and performance. their future it and have deep a is translates and collective next bright. following along team will believe Paul he our I annual I great leadership and deliver takes bring to abilities in with for the team, very the leadership when He, the his our our excited future. I'm meeting. Board leading confidence results how month experience over Shoukry culture

I'm not riding the sunset though. off to

Chairman, me I experience be are of Paul any will components The reigns when James it, and supporting he supported he me when ago. Executive the needs Tom of important years As handed continuity counsel just as transition. XX

our strong quarter. ended first generated With that, quarter. quarter-end our record levels to the of showcasing well achieved with net capital and fee-based get and PCG assets help We the remain in the second-highest and growth income, the into revenues people across fiscal drive all period We ample business, complementary invest the to and our very of accounts results funding, We continue healthy positioned With businesses. and let's we a record technology to our pipeline. in net and diverse businesses. strength

reported net common income with on slightly per amounting $XXX revenues to record X. million, fiscal in earnings Beginning to diluted Slide available The $X.XX. billion record first of net quarter's of quarter the the below previous share for firm resulting $X.XX shareholders record,

common equity capital common base. on Excluding diluted on our and to expenses adjusted XX.X%, million returns quarter to of shareholders acquisitions, per a $XXX adjusted equity XX.X% generated or given $X.XX for common particularly with annualized return the strong income available of share. great tangible net equaled result, strong We related return annualized

recruiting $XXX were X high-quality XX% new record efforts by a and Group Private financial time, up of unchanged in under accounts foreign Moving under primarily impacted year-over-year client is by our net assets discussed. retaining rates previously Over advisers. Client departure to increased Sequentially, at were fee-based billion. nearly negatively driven financial to exchange $XXX ongoing billion, in assets quarter-end were management and assets administration large client Slide X. to assets by $X.XX Total assets we to trillion. and

the of PCG X% annualized the new net a assets. during equaled $XX quarter Domestic the rate beginning billion, domestic representing period assets on growth

The we last approximately in our of primarily been a contractor call, As quarter's X was growth quarter asset $X division. departure this impacting billion net domestic new X.X%, the those the independent large branch on was described AUA. for would've in impact Adjusting strong approximately assets, our earnings result. performance of

under Over XX assets employee XX assets all approximately and contractor domestic XX-month Custody $XX advisers year-over-year. firms platforms. client billion Services Including our $XX division, months, our $XXX trailing months RIA XX% recruited RCS, at nearly $XXX up channels. to of production quarter million client the of prior financial to and recruited which we refer past our of of recruited we billion billion previous assets with client of into we as assets RCS over across administration, total independent the the finished with their and

of Following both the pipeline in Perry's near-term the the in to large fiscal division ran advisers recruitment momentum advisers to given be our Overall, fiscal serving Jodi long-term particular, our XXXX quarter, lead multiple our remain PCG on about options. recruiting. fourth strong the affiliation we optimistic role teams. growth, the under and achieved We leadership. took previously our ICD focused results recruiting high-quality across we continues and and, Jodi and strong firm-wide remain

the record adviser Shoukry can continue more. down transition do period, service on high watched I our our to capabilities satisfaction Despite Paul score, to believing continue have double during we

of high-quality continue and advisers, attract robust capabilities a Raymond to advisers. client-first for us technology destination enable James values to choice Our retain making and

continued securities-based Total Of Enhanced due increase record $XX.X were quarter, quarter. of growth. Bank primarily to reflecting as to X% well over grew quarter clients' Program X% X% residential in billion, at the domestic a in loans end quarter sweep balances grew the XXXX. mortgage the Savings as September the $XX.X and preceding cash higher grew over note, X% sweep the balances loans, which a billion,

a to to strong due Group to administration on pretax and by record equity PCG of Moving higher Results the $XXX billion. market Slide addition $X.XX were new firm. compared Client million net previous net assets X. generated income assets quarterly Private the the revenue of bolstered to under year of

Capital driven M&A higher Markets of best of and banking segment grew revenues. quarterly quarter M&A net generated for Results million. third-best revenues this and by second $XX XX% revenues a investment primarily revenues. for $XXX Net marked pretax the revenues the million Our income quarter year-over-year,

The on of assets $XXX compared management income market and quarter record net Asset segment were of pretax under financial net accounts. Management million. the million year attributable prior revenues appreciation PCG higher inflows generated Results fee-based $XXX due to record largely to into to

income Bank X preceding interest The a quarter. sequential margin the of generated $XXX to while X% $XXX pretax and net of points of On compared million revenues Bank segment income net segment increased net interest declined basis X.X% million. basis,

call financial turn CFO, And results the our detail. to now Butch? Oorlog, I'll to Butch over review in the

Jonathan Oorlog

Thank you, Paul.

the billion $X.XX over Turning to Consolidated net Slide XX% increase reached first X% a a representing prior quarter, revenues X. sequentially. year and the record in rise a

XX% year billion, related to Asset the above $X.XX billion, preceding the representing X% administrative and year up the fee-based the growth prior over prior XX% domestic quarter. fees grew preceding over to and PCG grew over $XXX slightly quarter. management and assets

PCG. account second As approximately due discuss we $XXX to year-over-year days, net billing grew decrease of look administrative service are our ahead, given fees interest primarily in related X by and and million X% brokerage and in Brokerage I'll fiscal revenues quarter. fees asset to higher income revenues X% shortly. fewer expected management

XX% and increased million X% $XXX of revenues year-over-year sequentially. Banking Investment

slowdown in very M&A a XX% quarter, revenues, quarter which year-over-year following XX% Other primarily strong we First Following typically continued in strong results due fiscal first benefit the $XX in the where to preceding revenues, result high see revenues housing grew million sequentially. to business seasonal quarter. lower a declined quarter affordable sequentially from and investments preceding its the

to the representing ended quarter client of X. preceding Enhanced quarter and X% cash Moving X.X% domestic Program at PCG Savings to domestic the billion, sweep $XX.X up compared Slide assets. Clients' and balances

So quarterly $X.X $X.X sweep quarter, far the in approximately fee nearly of by due decreased domestic billion billion. have second billings to primarily fiscal balances cash

balances to the Bank the Slide X.X% while XX. quarter third-party net points million, as the quarter. during that decreased Turning late net occurred yield with X.XX% basis preceding $XXX the preceding basis points basis The as X margin to X the was from segment due for fees interest interest rate banks the income XX and average XX XX RJBDP RJBDP quarter that X% basis point Combined on occurred in to point to cuts quarter. rate to cut third-party the well down banks compared down primarily was fed

any our quarter, X% current to fiscal and including days. are and X% on results, part mind, Based of in down by and the we quarter fees sheet, of Keep actions actual aggregate will fee fewer billings, driven impacting rates quarter-end second that deposit rate many impact the in balances in would loan and be balances. variables X balance including the to upcoming RJBDP during large billing quarter, factors second third-party net there NII expect

the billion, for Slide Turning expenses consolidated to and XX.X%. was total $X.XX XX. compensation expense on ratio the Compensation quarter was

Excluding acquisition-related ratio adjusted compensation the was expenses, XX%. compensation

a annual along of year, be the expense. our calendar compensation of payroll second reset beginning arising the from effective of X, at January will impact taxes As on cycle reflected the quarter and with salary increases fiscal reminder, each in the our

million lower decrease a sequentially professional to due provision in bank largely for $XXX a decreased X% and Noncompensation credit expenses losses of fees. loan

our items $X.X loss year, the non-GAAP presented unexpected over we year. and measures, billion, representing about prior growth fiscal credit same the loan be regulatory for approximately the bank and noncompensation adjustments provision excluding the expenses, losses, For for in noncompensation to expect financial legal figure non-GAAP adjusted XX%

to over will we business growth support maintaining while expenses. Importantly, controllable continue to across the discipline invest

investment FDIC which the for and as in as such, the fees, continued supporting growth As for costs. insurance higher example, drives, in our our of reflects technology majority advisers business, increase premiums our sub-advisory overall recruiting leading projected this financial expectations well

Slide margin quarters. trend the X past XX over pretax shows the

pretax plus target margin quarter, our achieving generated This of and a XX.X% XX% of adjusted margin of we XX.X%, pretax margin.

very $X.X quarter and our target. a sequential of XX% capitalized. On assets capital the the total were $X.X remained X we parent billion, billion total strong. above ratio corporate and of With RJF decline. remain XX%, well quarter-end, capital our ratio Slide Liquidity XX, ended leverage each $XX.X at well at billion, Tier X% cash a at

provide the a continue Our period. tax recognized tax during to being reflecting rate the quarter XX.X%, capital growth. invest significant The was benefit share-based flexibility for for vested and that levels opportunistic effective compensation in

effective XX%. to to tax our XXXX, rate estimate fiscal be we XX% approximately still For

XX the Directors Board and a up billion, common capital authorization. common on increased cash Slide stock replacing December, In over $X.XX to quarterly to XX% summary dividend past of shares the $X.X actions quarters. X share previous provides of per the repurchases the of our authorized

stock $XXX share. repurchased at an average shares the per During for of $XX million common the quarter, firm of XXX,XXX price

$X.XX approved remained the approximately billion authorization. XX, January under repurchase of Board's As stock common

opportunistic be we'll we to incremental expect with offset share-based forward, compensation and Going to share continue repurchases. dilution,

present capital our remain with levels, Given we capital stated to levels maintain line in our committed and liquidity targets.

ended The assets Lastly, losses, provide portfolio segment Bank loan The the quarter XX, for total of loans, solid. the loans for X percentage assets at on low percentage of a at total investment, at basis prior key we held metrics a XX remained ended credit basis our X.XX%. the of basis quarter Bank for criticized as as credit allowance Slide the quality down loans points points and investment, from quarter. remained credit segment. Bank of Nonperforming XX points, held for

the and an on quarter. a but percentage preceding mix has the carry for XX% reserve, credit that Bank we a more held loans and as levels economic and impact XX%, loan lower balance Bank loan allowance continue respectively, securities-based due our appropriate We closely X believe toward to for balances. loans account X.XX%, which investment residential losses corporate points allowance now basis loans mortgages, monitor loan our of of lower down loan portfolios. for portfolio The represents percentage allowance from The largely factors total may corporate trended shift to was

Now I'll Paul to call discuss turn outlook. Shoukry our the over Paul? to

Paul Shoukry

you, Thank Butch.

fiscal results with some of calendar days, XXXX pleased seasonal I fewer are and headwinds strong always We quarter. reset And taxes with the this about first and beyond. optimistic quarter has am our payroll while the billable

related Private large quarter's impacted in and the segment, us Markets be and to fewer pipeline. In results in for quarter became a we and X banking more the by number still results billable adviser improved negatively joining as Capital by second-best see activity the Client of in and M&A, quarter pleased are it's particularly which which fees. for investment we're history. will solid, In continuation expect to approximate management days, recruiting of Group, the had But environment decline our an X% the team encouraged we its this market in results remains result next asset constructive

reinforce we strategic this in backdrop. environment and in Our past the results and patient and past healthy we the M&A Capital the the years, quarter for conducive approach a several market made quarters during capabilities. long-term over The along banking pipeline, investment levels fiscal challenging were year, of rest over given remain have even market investments and our our near-record X more outstanding, with platform well-positioned and our optimistic a Markets

is Fixed but begun the the market the business. still depository our see some Income business, sector challenging, In to improvement of we've in

With moderating the to managing outlook be and in for engaged their clients curve starting portfolio. securities steepening, short-term rates yield the more are depository

will in long-term in confident growth growth of In the drive under Private fee-based assets strong we're Asset assets Management financial that Client segment, of accounts Group the management.

help management Investment James addition, drive time. further expect In growth over Raymond we to

securities-based get by continue we seen the rates, level further lend the rate recent with positioned increases fed's within are the loan demand have comfortable risk well client current capital, we cash ample balances loan disciplined as segment, Bank guidelines. our segment activity more increase the to cuts. With as supported clients and to of In across

meet position, per and And fit will pace of and organic cultural investing that we commitment the quarter we be front footed XX% if a positioned our being good strong $X.X capital And deploy pursuing share of billion. to in to increase remains our $X.XX and our well continue cannot stock speaking while the we to dividend those quarter, in did buybacks of per fit. strategic shares particular this authorized repurchases by repurchase growth criteria decelerated of growth share unchanged are in acquisitions initiatives. to our common aforementioned Meanwhile, up Board capital

X not future. excited and been and could spending I associates bankers, energized about advisers, country be much I our past our traveling financial the meeting months, the Over my of with have time investment clients. more across

their We have really achieve clients financial every focus people their great who objectives. on day helping

And our differentiated proposition more best be businesses. across our to and of continues more both all of world's value

the of and to anchored in unique will clients, people makes and breadth are first. serve advisers, products long our We and associates, which culture preferred that and over us having with destination strong combined is of on term. drive a This scope for we current the believe growth prospective complex putting needs capabilities bankers both industry-leading

decision a hear best associates James, in I thing Raymond financial was the powerful regret the from associates not do all it affiliating advisers did to made a few career is most The they years and and help biggest earlier. and with clients. the That consistently values every our their is they work our they their professionals ever have serve do and is testament to financial great really each unique day

and our For making entire special thank leadership team, want for such James Raymond associates of that, I advisers our a place. behalf to on

questions? remarks. That Operator, line concludes for the prepared please our will you open

Operator

first JMP. comes Citizens Your Instructions] with [Operator Devin line the Ryan the question from of

Devin Ryan

on there, to say it's just question, I And but obviously, And be congratulations before pleasure. a been you'll want I to career. a know ask still a great I really Paul Reilly

So thank you.

on question XX% but And quite guys capital. on hit XX% Tier billion that's $X.X just leverage the a this ratio, bit you know First call, above X in ratio. your I

going generate capital year. to earnings dollars more a You're of probably couple next through over billion the of

for the You only million $XXX dividend. need about

so. of So year excess next billion the maybe or $X call over that

obviously, good at you're about, think pretty to want just pace. You growing loans

that do rank of seem kind X So you support you talk think loan And would beyond about or lot of work ratio And demand? how down growth without acquisitions? would priorities priorities the you actually Tier over can most next a you capital can use? can just year that, level then you the the for Because other attractive there. of it

Paul Shoukry

Yes, is twice our still Thanks, capitalized. still requirement the that to Devin. ratio, to regulatory to target get XX% which well is be

strong that the organic of analysis your we our recruiting foremost, that told and all to first bad so affiliation looking the prioritize, in, Investment also which, Banking in capital associates. still all not always The well, and advisers, recruiting across are that across have very and options but good same And in Bank. businesses pipeline is a investing our clients business we at now, Asset is have levers we quite position was as our growth, our you be of excess and Management and and we

used of the couple the get particularly as clients then growing declined. rates of the Bank have and Client has new to speaking And and strong really loan the sheet, short-term balance over Private growth, the loans last level to quarters of rates Group securities-based clients, rebounded been

best the that growth our feel seeing so there, the Client in is category which we the synergy Private and that risk-adjusted are And has clients. with we Group returns most loan

of It We know to and there topic and have want has a to then amount thing thing get last few been looking we growth, organic of of diligence can't That's fit, a do fund at while other price the the turn lot acquisitions. the to shareholders. of have not any them front-footed is And raise sense or don't strategic filters. good due on cultural say then And to around capital do doing a activity fit whether acquisitions last or a tight we're the go will buybacks in will outside that we for have that we large there. for and we has line. close want to our But acquisitions. about we makes have -- be to -- than finish we much been the -- we

can other And depending uses turn we our what which saw other something And If in the with that the of that drive up -- capital just I next to then of deployment, the don't there for quarters, described. last buybacks you the back those levers in prioritize lever or last preceding see behind we we sort that we dividends consumption quarter. hoping deceleration on up the buybacks, over the pace take down that sort take turn the is that so is buybacks we're will saw kind up of we quarter. several the capital

Devin Ryan

it. Really Got thorough the appreciate Paul. response there,

a -- a segment business about for Just great XX%. Capital to basis, XXXX, recover to follow-up, of normal?" assuming recovery last obviously were it'd In continues what to look digits were think will trying just potential segment about year. to the you Markets activity XXXX, north as margin, a like Just you be on "more something think mid-single

So do would feel you Or you XX%? looks on to recovery like the frame like back you can based a just get how what above today? business composition guys

Paul Shoukry

I XX% would, income sides both Markets, cylinders. fixed most require the would above side speaking, of Capital tell likely to equities broadly running the be business, of the most the on you, for and business,

to other Market a both so okay, probably one's Capital quarter the result, we And strong the of reasonable and at around Capital XX%. XX% bit quarter. businesses a segment. Investment of are X good M&A and is little -- in stronger running That's if softer Banking the fixed X result We whereas a pretty had a is income Markets saw result this for what a is for not

don't at and during as cylinders levels the numbers But side saw the same of pretax of -- both all their natural they the of equities revenues time, is COVID run of of which kind record given backdrop. the sort the atypical are fixed macroeconomic businesses, on typically we hedges for over-XX% was income really

XX% XX% we XX-ish saying percent, So that is over long-winded would cycles. something with very way happy be to of

Operator

comes KBW. of from Voigt next line question Kyle with Your the

Kyle Voigt

the right compensation been revenues. to of on X XX%. ratio, first the percentage have adviser last a question around a compensable wanted as The Maybe on focus comp quarters

that years the range better been generally of part I the to the XX% employees shifting X on a of bit. know the I you've XX% advisers for during or mix has think last platform towards so. been zone of recently in

on Just run kind level ratio an of is and better wondering whether that XX% rate. this if impact a comp that's near having lower adviser

Paul Shoukry

new look that to at a or rate. Hard run Yes. X and quarters X call

or think something it if fiscal year the for entire right like I around that. look XX.X% at was you XXXX,

assistance. recruit around So dynamic that's period a time, long would point there's sort what the time of production, you're over is as But there bounces that from I But the grow quarter-to-quarter. to. more grows describing. probably over you fixed mix advisers that a of as base you of that the amortizes there's It also transition

production And the there some can scale there grow modest to that in. transition kind the is you advantage see of benefit you as assistance so some relative

recruiting Now we're heavily. still

grow So revenue as that transition the of has well, growing. been systems will still come and but on

the that With the amortization the recruiting results XX% year-over-year, S&P at fast. XXX not assets is assistance transition for growing and fee-based

Kyle Voigt

Great.

Just on new growth. net follow-up a asset

noted ex you're really to single-digit similar a that offboarded, I healthy think would kind high XXXX to wondering think still in to to need that accelerate NNA but X.X% $X and the large what you what you billion branch rate, generating of obviously, growth XXXX. back rate happen

or higher you in competition whether recruiting. competition, wondering industry there's simply think Just related that's churn channels for certain

Paul Reilly

Yes.

had I recruiting take lumpy record advisers a and can a it's is join -- off is. healthy. of going think end, be the year year came We lot as our at and very pipeline very, little just it a to

that lot build a a up of then it lot And by and year, when come, when their them good asset So we is a and recruits for a to while, just on. they recruit bring takes how base. you pushed of

the So and still a But joining about look as little we're good we NNA moving for if us, advisers we the should down long been we think pipeline. It slower. expect and you like expect the trend. strong really up while are industry, it's optimistic as a feel looks I the with -- and

Operator

of Your the comes from Cowen. line next Katz Bill with question TD

William Katz

Paul both guys. again, and to Paul, of you congrats

of discussed. said of think can be talk of growing Wondering caught interested you either call. geographically, you where a of scale. further sort I'd on twice you significant maybe amount if or you're to to now in could this ear, most curious There's platform, sort you when the it at capital, you of where level Just need prioritize the sort comment segment in my the of front-footed terms that sort you've as

Paul Shoukry

our Group sort our so both again, acquisition and makes Yes. say, been shareholders, have from and pursuits on of priority, to is very I pretty that good with acquisitions. top business, The also consistent. a organic equity would Private also deployment our for terms value right business biggest of difficult, that's being priorities Client space in that also our a sense space, so But now. perspective aggressive the especially fit, fit an strategic private cultural firms find and is in

that's So top our -- priority. but

the to But managers. necessarily are something on we looking us continuing asset look good years. organic have And shown front, of at those platform over look that's would past various several of for hires at then Capital that management asset are Those front. Markets, us again, for growth deals to And the the lift-outs, M&A that team profiles. most And accretive and firms to also on verticals. seen niche management at very not looking strengthen than we have asset more showing that and kind acquisitions us so the our been be been

So really, looking across all of our businesses.

have to lot and provide clients our one solutions headroom and We share market the that we to expanding businesses. continue of growing expanding in of each our a

And from have an aligned priorities the with so that those of sort perspective. -- we are acquisition that's

Paul Reilly

Paul, mean, absolutely add just agree. And to on I to

You too. asked about geography,

but still the to have certainly platform. our at to look we've percentage best anywhere. open. we'll We're really smallest lot First, try In gaining get advisers you But a the markets. it's We're of grown wide Coast, market our it's adviser a lot a other good the West share market if the for fast take room growing northeast, but market in on looking a behind pace, share, share. of at

that opportunity recruiting. lot to business And so a to we continue have through believe grow we organically in of

Paul Shoukry

and in Canada well. the And as U.K. also

So lot those to Canada, continue are as in growing we well. have a markets that there -- of headroom

So in. markets we're that are interested those

William Katz

follow-up, mentioned about Terrific. Okay. nonprovision billion. $X.X you noncomp being a as And

question. business? thinking much decay operating the were macro a given the revenue we about just how that bit maybe be more potentially to So if further should And then of perspective? little X-part scaling just backdrop from How sustainable the a a margin, is flex

Paul Shoukry

flex, Yes. We a we revenues. -- not some in there of expenses flex line those to -- because with that right lot is experience want grow necessarily

group So up expand the we grows fees fee-based open new and and branches. investment branch branches sub-advisory grow as assets, expense with

insurance expenses we grow And so FDIC as the grow banks.

want And grow so that expenses those growing. means because to are we revenues

to is there your we your I guess answer question want the flex but is necessarily not that to answer So flex -- to experience.

of to flex, next that, over always but We're growth in and X don't committed long flex terms of beyond. the from discretionary try is our Outside the to at the next quarter-to-quarter. investing looking there in We we're expense discretionary short manage term, really term. needs the -- X, years

so And what investment those committed backdrop or objectives macroeconomic to the revenue what stay to want short-term we like profile the short-term of looks independent looks like.

Operator

comes Your next Fannon Jefferies. question from the line with of Dan

Daniel Fannon

last that on up question. follow to wanted Just

the growth course investments in business. a Sounds normal terms in of the some and of like that's

think spending about as you of the around on a do priorities rate? a bit we elevated, and Or in is reasonable multiyear view your XX% run level basis, noncomp given As a investing business? some this

Paul Shoukry

XX% that No. with fees grow assets, up the Again, investment fee-based sub-advisory year-over-year. was

that see growing love to because year-over-year grow would means our fee-based much. that that continue we assets are XX% to So

of And so piece decelerate, revenue correlated XX% certainly of will growth revenue the reasonable I each it. couple over drivers would with expenses, years. look associated at But have say been the to the that that the last has But experiencing decelerate. you been overall, we've and naturally

Daniel Fannon

then Understood. up growth. following on And organic just

if could characterize today prior the strong. the like quite or last recruiting periods versus last quarter that of still start Wondering is backlog in Sounds year. you

noted. you've also then had you And some headwinds that in the of attrition some had

or that do platforms quantify noted XXXX, or known that. things had already here aren't forward look anticipate you to you are As there -- kind in Just gone? that of fully some be you other that might leaving

Paul Reilly

quarter. large one big is The publicity. totally That -- No. almost receive one the This was that's even Yes. essentially gone.

gone behind so side. assets. some We of that's the RAA to and -- attrition. but we regretted on RAA, anything have kept the of The leading people always biggest So had think big see there's movement us. historically to that that have gone we don't We've X% attrition, fortunately type that

fourth quarter, fiscal Usually, the first this And like -- have think seen because and through big have is had bit in we just slower year fourth -- then hop we'll really might pipeline, and a Banking, a join you going off quarter you I normally little and when you're very little people but quarter, that we strong Investment backlog, it the burned a close your quarter. in. you in just the quarter, when a

we So very the to and bigger. you keep a -- billion get seeing in strong, teams -- $XX timing is is pipeline the always Again, teams bigger But look, little if up assets. off. the

And very, be will so always in good it we pipeline. feel very as about been. It's it's line it. quarter-to-quarter. confident lumpy as a -- It's not really business, not the strong But straight but it's we're

Operator

line Your the of Hawken UBS. next Brennan question comes from with

Brennan Hawken

So party curious third one, primarily RJBDP of about basis the points this confirm, with XX really on to policy bank, quarter. is moves on the -- average down side wanted I rate. yield revenue that

the at beta been if balances. partial the has have you experienced And the you fed will And can remain ESP that continue what tied we Should level and so to far? offset roughly -- that, those the offset the us beta let would offset deposit that know beta so deposit be you've therefore, on to think maybe cuts?

Paul Shoukry

X course, quarter. rate have of impact a rate next I I Yes. in the full And reasonable assumption -- think that's cuts quarter we'll, the forward. going mean the of this

but that the And been averaging to has beta so XX% balances, closer think sweep around but on much deposit -- like than on ESP, higher the XXX%. products highest-yielding the I

that's beta for the of for look up did products on what way -- way And on similar with deposit various we as sort so rates. that the it the down as and the -- would anticipated

Brennan Hawken

that pretty growth think the going moving the fiscal Got SBL forward? understanding loan think in then the we -- it. increasing through confidence C&I are should improving, about but year you and we about And how how seems And that you given should -- thinking been about fiscal is -- has into 'XX? optimism growth strong, business environment as

Paul Shoukry

flow origination been relationships, client it's that have in muted. this Yes. mean certainly new relatively active I we still still spaces we're the cover, been especially in and space, but for challenging

given hopefully been the extremely We spreads. the up expect to have we And then tight in have pick seen backdrop. flow macro just XXXX, that really

we're growth terms risk-adjusted so returns. force our not in the don't And spreads pursuing that to of by thresholds going meet

normal when the time meantime, And new of would more the recover clients continue more we portfolio tap gets normal growth year. But in to lines. to establish to volume their lines see kind as the levels. securities-based continued and for over loan levels. In spreads into so We'll tell of existing the hopefully, hope course will

Operator

Blostein Alex of line the from Goldman Sachs. comes question with next Your

Alexander Blostein

I'd build. target like quarters capital consistent, capital continues back very feels to realistically to intent, a us and right? I we you give your particular I quarter, it's It years, I sense management the go like discussion. guess, here know get time. can are know and but to it's Not to been but and when you of over the over to framework, a you to bring But expect as there? down any

of what you in the kind that's past. also and to deals a you've things to closer are front, similar interesting the named lot deal you're like held said sounds then back, but that on it again, you of And

So what walk not, you're inorganically? And should when in capital add ratio that to type to target? likely, looking is of that we more if of expect at down to terms your the least, businesses

Paul Reilly

Yes.

pretty I clarification. for Paul because answered understand asking and think why -- me thoroughly, Let you're I the question

we've And on. uses, a held that best back are buybacks we because think of may I felt be felt the we we there was on when use of other that road capital.

opportunity, going to benefit. shareholder if -- ratio. something it's don't like prudent because strategic have to We're do the we And long-term and we to an we're have that it, feel back the capital do going it's capital just acquire going going committed to something, we we're it. lower if quickly. do it because of And catch ratio. And there's the we're do to up that when And so to not the we we're to

showed our we the commitment. I time that did think targets people were actually surprised buyback last when

up fun. We slow for for slowed can we up prudent fees. And

don't then Fun it's go XX-ish We capital we -- operate. the don't stuff, But have XX%. And comfortable, to chase of like it. but operating use we hard, -- want where think at prefer again, to timing, So XX so we but... is and kind right? to that's

Paul Shoukry

we horizon, eternity our I extremely years at last balance were with since velocity or industry made the it's our feels of the done time, sheet acquisitions couple us. for long cultural time period a that ago. being you And not sense valuation over in know a the And it of consider short over of years but being seems period of at were And perhaps the X meet very it potential it's were a when years. X happened years, not terms in of like XX%, -- across or out fit especially just last low it's was over but time, X entire growth that the fit didn't and to ones criteria good come there acquisitions strategic harder by what's

X like we with XX% were last in agree target. years. know XX% a I long just our it time. But did we X ago, So acquisitions years seemed you, time over We over here X

deploying to you And asking front-footed to us prudent the and we'll on committed of is and that with be getting back be We'll also to you capital. so XX%, telling disciplined context that kind be patient we'll years. we're down what of we're X but be in we're

Alexander Blostein

mean problem, Yes. Fair end the that. the enough. of I I high-class so day, at get

guys Investment you for question Second the revenues around advisory within is Banking.

but peak-ish sort million a of off. the I think M&A now, levels, without quarters even approaching taking for cycle of running kind north in at $XXX of X really row that's

revenues the -- you adviser prior to drivers higher So current of of the over maybe business have the context the could couple M&A underlying us of think do And about frame peak, years? the as unfolds? cycle in get cycle the get ultimately help could how the you last how new as much think much expanded

Paul Reilly

with start let's story strong, So maybe the pipelines, with that pipeline, past looks that. the believes. green but strong we're shoots, like everyone in And very just industry

been than fees, analyze first large quarters, quarter doing million. X we were quarter, -- wouldn't the over are We But X last stronger early we've recovery last X -- deals. people So the I quarter. last most. $XX We had an had

would -- that'd pipeline to So it's challenging to looks lumpy. be be rate a it's the that, I not quarter, say think assumption good run although And think, very that next M&A hard smooth, good. be to is that going

quicker out the our of little than run quickly, more maybe rate got would be. So gates a we

taking just middle cautious the the that in be peak. [ I'd good growing the rate but extending number recovery, ] a of at So not it, although at run we've been

Operator

Global of question Seaport line Mitchell the Jim Securities. comes Your next from with

James Mitchell

next It guidance based that NII. like NIM is on the just seemingly Maybe the quarter for on stable. your sounds pretty

asset loan We like growth and you starting have up, looking little have to a growth picking and deposits still get repricing. it's turning better

to X NII or through with think start X to trajectory forward curve, about think So in trying it is on year I next just a quarter? like. the beyond 'XX better little quarterly full the and the cuts could fair to trajectory looks only mean maybe get what I'm

Paul Shoukry

Yes. Jim, our as well. that's right. hope absolutely That's

this We have X quarter. fewer billable upcoming days

for be think So beyond NII. NII for that it can that's and that, stabilize, tailwind rates that, be That's forward. we is the to tailwind going headwind. as assuming we to a a goal, stabilize as the NIM assets, grow But

James Mitchell

the rates? seems Xs. to on those NIM. like book that a follow-up dragged as quicker the just the you of think time by than little you're kind being any you're can multiyear securities frame a that? on the yielding then -- sense yielding X.XX% a the mortgage on book How books could to get of and It down do frame currently start give Is that? we -- when more kind in And around maybe -- story? about back Okay. Is current the it market around

Jonathan Oorlog

that's Jim, question. a great Yes.

occur $X.X XX rate. see at next remaining of maturities smaller that rata terms the the and quarters. pro other then fund not the repricing a about decreasing X the repricing growth book run About And available-for-sale we're those loan amounts is bank. In or million next billion the with of that in months, maturing repricing, -- $XXX -- will quarter we to maturities the over the over using associated

loan those for other repricing elements of growth. for SBL and growth that and upcoming past loans that in this quarters deployed the the talked the will quarter So we and be about loan

Paul Shoukry

-- us as We kind kind from in those of turn over headwind securities a roll higher-yielding assets. turn a to of tailwind and for mature to

Operator

question comes with line next from Stanley. Your of Morgan Cyprys Michael the

Michael Cyprys

that year. bit on the to billion I wanted hoping Just back fiscal on some the areas noncomp a guide on. the you of was focused more for major you're investment little elaborate $X.X expense for circle could

unpack a just on little color the here fiscal has major the areas I bit more broadly been bit provide and a maybe you think help of some that the maybe quantify investments, types more technology investment of technology one, in more for 'XX. could

Paul Shoukry

Yes.

Analyst technology, I of particular, provide Day in is and because help area as efficient about we their save that the to with to us a spend is more more speak and clients could time really in ultimately broader their want advisers clients in the detail think services street something focus to a for next at Investor big way. we more so deeper they time

efficient. require the investing underlying and be the that so processes automation also more process, And the in to technology

that well Private really investing capital of our technology across and that businesses. in infrastructure also And Client and as doing markets so the across we're all Group, business

a we underappreciated I to at Investor but than Day it an maybe carve highlight strength call, detail the something certainly James, more to underappreciated will advisers. think earnings can try on probably So Analyst that time and an is we out at really because real provide not Raymond a by and by question street, good the strength our

And that culture. terms also they have us, And downgrade your "Wow, actually going the you a office in join in Oftentimes, to that. to bring from investing largest across day we of But great technology I firms a more than not, we're to we such in often X visits as guys highlighting well tell upgrade." or Raymond after country. we're to So because better in we thought advisers home do so to to it's James with the have increase automation technology need am realizing spending now platform the efficiency. be an job to a going

the the the about next making years. several over So we're business excited investments we're across technology

Michael Cyprys

shot the over sort firm question update you an and the on think give had today, for although couple be you'll some if of me across the years. think the anyway. Investor what experimenting can advancement where set, business here the a how way, a And it ask the thinking maybe you for where to hoping could it most maybe just AI, next you'll DeepSeek just like given as potential about just I'll there do give it of curious could was over I maybe be just you deployment. But tell weekend, along you learnings impactful how the bit faster you're on you're have save maybe the Day. just could, But of I seems it little a about If opportunity

thinking curious you're Just how from an about that standpoint. and innovation cost-to-deploy

Paul Shoukry

Day. definitely for Analyst topic Investor It's a

monitoring formal at, But So about and that we only And is looking deployment making about that been businesses. looking more actively investment in across investments we that. discussions and at. you're something to actively we that be but are right have active our it not are and

a also changes have the changes, that know going think. Because will we how out, it's sooner conviction process. themselves as those couple a don't we than the think But result you manifest has we of of in years next that so the going exactly probably point in still it's because of over conviction lot we it's early management team substantial to lot -- know I

in and is really, use in cases. use everyone understanding piloting potential the the for industry and cases really proactive to monitoring to be key and is the our and So testing -- deploying for the and us development potential

a certainly team is be to in the something in up at that a more Day. discuss do detail are and process we ready of setting Analyst dedicated more formal that way and something the So more Investor will we in to way

Operator

of line the from comes question final Steven Wolfe Chubak with Research. Your

Steven Chubak

and look and the forward obviously Paul Paul, Congrats, engaging yes, in certainly. new Paul role, to

trends. for for me quick cash question They quite resilient were on a industry sweep So the in quarter peers. you and just

lag, however, this sweep actions or you cash of some at growth to point NII to year balance have impacted hoping any what Your with the ahead? the in could may growth. And year, promotions, was speak for changes cash I poised did growth which some in public the peers. underwriting stabilize you're

Paul Shoukry

Yes.

look if you'll year-over-year But think trends, trends. see there. quarter-to-quarter at different look you we think I trends at I

us both our programs, we offering, special program, foremost, balances platform. Program, clients, always of suite when about put offering. the served the and new programs, very also for the decisions purchase and well and on that thinking money first cash rates around of fund offer and any period the clients best our very So have in And make we we market the competitive money over cash first Enhanced a some what's we cash those a of for time. we're and Savings long

certainly into in gotten some dynamic have sorting may the as And have rates down noise and which the highlighting, started outside later when has to you're especially come quarter-to-quarter it. innings, that -- of blips

some saying to just performed the the as were if better, have providing than And been as about of being to we happen. since we transparent what sort -- a over was about around industry know, of what thought long we've you and the consistent time, look rest you start, balances. would consistent, others not happen Steven, maybe of going cash guidance about what period despite If very well,

Steven Chubak

Paul. I if helpful, here, questions That's ask X could have And cleanup just I quickly.

in trends. higher? decline is positive rate, in The the first slightly markets run And on the assuming the ratio, given You were just what more flow cited the quarter, comp markets a the this is reasonable capital then XX% drove whether equity continues? backdrop constructive AUM

to Just of understand underpinning the that. drivers some want

Paul Reilly

about that that unusual for was the FX, talk chunk. nice U.K. X% lot territory. would've X that and I'll Canada big A the some not the in us. of But doesn't mean this down And something actually was they're big anymore to usually in the be us. positive is But the fit being then -- left, -- which it'll that of firm portfolio, about the I which delta quarter. really brought actually with the us AUA trends. a talk after

just that about is look strong. can we a we're or assets. in things think growth there's I asset which in of And our figured one-off nothing before, And some lag. I see and quarter, been again, the was were it like we of the we terms there worried we So why very think growth has that blip

On Paul the take comp that. Butch, you ratio, I want to if don't know, or

Paul Shoukry

guidance interest under even a able our ratio to ratio, XX% the for do little keep we even comp started comp firm, and the The coming rates has bit. -- to certainly have in that been have been though as

segment. capital reversals first compare year from It's the sorts especially our certainly quarter-to-quarter, the year-end we and to bounces of quarter of around quarter to things. the because have markets last those it hard fiscal So fiscal in

So making to a longer-term -- I always encourage at of folks would trend look encourage kind I comparisons. when

Operator

Q&A session. conference turn will to That remarks. concludes closing Paul Reilly over now back the our I for

Paul Reilly

really I it. thank I all appreciate Well, you attending, do and for

I As very shareholders, is valuable opening, in the the and feedback. us this to said

even So I honest, open -- we constructive you dialogue. hope a you we're to give and in appreciate call tried while. and I that a always us though very felt the information. you front-footed good sandbaggers once a accurate But

but I for And be the them you I'll so thank at it. I to appreciated appreciate minimum, it. that'll may calls, -- a that. be on be So listening not

Paul Thanks talk and next for and your we'll Butch, to and support you call.

Operator

for you today's all gentlemen, Thank that joining. and concludes call. Ladies

You may now disconnect.

Raymond James Financial (RJF) 29 Jan 252025 Q1 Earnings call transcript