Q1 2026 Raymond James Financial Inc Earnings Call Transcript
Key Points
- Raymond James Financial Inc (RJF) reported record net revenues of $3.7 billion for the fiscal first quarter.
- The firm achieved an annualized return on common equity of 18% and an annualized adjusted return on tangible common equity of 21.4%.
- The Private Client Group generated record quarterly net revenues of $2.77 billion, driven by higher assets under administration.
- Raymond James Financial Inc (RJF) recruited financial advisers with trailing 12-month production totaling nearly $460 million and over $63 billion of client assets.
- The firm announced the acquisition of Clark Capital Management, enhancing its asset management capabilities with over $46 billion in combined discretionary and nondiscretionary assets.
- Capital Markets results declined this quarter, primarily due to lower M&A and advisory revenues.
- The firm's pretax margin was 19.5%, slightly below the adjusted target of 20%.
- Interest rate reductions impacted the Private Client Group's non-compensable revenues, with rates declining 125 basis points since November 2024.
- Net interest income and RJBDP fees from third-party banks are expected to decline by 3% in the second quarter due to fewer interest-earning days and lower yields.
- Non-compensation expenses increased by 8% over the year-ago quarter, driven by investments in technology and recruiting-related costs.
Good evening, and welcome to Raymond James Financial's fiscal first-quarter 2026 earnings call. This call is being recorded and will be available for replay for 30 days on the company's Investor Relations website. I'm Kristie Waugh, Senior Vice President of Investor Relations. Thank you for joining us.
With me on the call today are Chief Executive Officer, Paul Shoukry; and Chief Financial Officer, Butch Oorlog. The presentation being reviewed today is available on our Investor Relations website. Following the prepared remarks, the operator will open the line for questions.
Calling your attention to slide 2. Please note that certain statements made during this call may constitute forward-looking statements. These statements include, but are not limited to, information concerning future strategic objectives, business prospects, financial results, industry or market conditions, anticipated timing and benefits of our acquisitions and our level of success in integrating acquired businesses,
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