RayJay’s Recruiting Back Up, Private Client Group Client AUA Up 11% YoY

By Alex Padalka October 29, 2020

Raymond James saw substantial growth in its advisor ranks as well as client assets during the latest quarter but pre-tax income in its Private Client Group remains significantly lower year-over-year.

The company had a net increase of 84 Private Client Group financial advisors during the latest quarter, ending September with 8,239 advisors, which was also 228 more than it had at the end of September 2019, according to the company’s fiscal fourth-quarter earnings report.

Recruiting has picked up since the prior quarter, when the firm had a net increase of seven advisors, which Raymond James chairman and CEO Paul Reilly had attributed to negative impacts from the Covid-19 pandemic.

“As we enter fiscal 2021, financial advisor recruiting activity remains strong across our employee, independent contractor and independent RIA affiliation options,” he says in the company’s latest earnings report.

Assets under administration in the Private Client Group, meanwhile, reached $883.3 billion by the end of September, which was a 6% gain from the end of June and a 11% rise year-over-year, according to the latest earnings report. Assets in fee-based accounts rose 7% during the latest quarter, to $475.3 billion, which was also 16% higher year-over-year, the company says.

Clients’ domestic cash sweep balances in the Private Client Group rose 7% during the quarter ending in September, to $55.6 billion, which was also 47% higher year-over-year, according to the report.

The Private Client Group saw a 12% boost in quarterly net revenues since the end of June, posting $1.39 billion in the quarter ending in September, Raymond James says. That was only 1% higher year-over-year, however, according to the report.

For the 12 months ending in September, Private Client Group had a record $5.6 billion in net revenues, which was a 4% increase year over year, meanwhile, Raymond James says.

And while the $125 million the unit saw in pre-tax income in the latest quarter was a 37% jump from the quarter ending in June, that was still 13% lower year over year, according to the report. The firm attributes the drop primarily to the negative impact of short-term interest rates.

Pre-tax income for the 12 months ending in September, meanwhile, was $539 million in the Private Client Group, which was 7% lower year over year, according to the report.

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