Raymond James Financial (NYSE: RJF) reported record third-quarter fiscal 2026 net revenues of $3.93 billion, up 16% year-over-year. Net income available to common shareholders reached $595 million, driven by growth in the Private Client Group and record bank loans.

Financial Performance

The firm’s pre-tax income increased 33% year-over-year to $750 million. Adjusted net income, which excludes acquisition-related expenses, stood at $620 million, resulting in record adjusted earnings per diluted share of $3.14. The pretax margin for the quarter was 19.1%, while the adjusted pretax margin was 19.9%.

Segment Highlights

The Private Client Group (PCG) generated record quarterly net revenues of $2.84 billion, up 14% year-over-year. Pre-tax income for the segment grew 3% to $423 million, as revenue gains were partially offset by lower interest rates and investments in recruiting. Client assets under administration reached a record $1.86 trillion, up 18% year-over-year. Domestic net new assets totaled $21.7 billion, representing a 5.0% annualized growth rate.

Capital Markets revenues rose to $477 million, supported by higher M&A advisory and debt underwriting revenues. However, pre-tax income for the segment was $48 million, reflecting elevated deal-related expenses. The Asset Management segment reported record net revenues of $362 million and pre-tax income of $143 million, benefiting from market appreciation and a partial-quarter contribution from the acquired Clark Capital.

The Bank segment achieved record pre-tax income of $206 million on net revenues of $488 million. Loans ended the quarter at a record $56.2 billion, driven by securities-based lending balances that increased 34% year-over-year. A loan loss reserve release contributed to the segment's profitability.

What the Numbers Show

Compensation expense was $2.58 billion, resulting in a total compensation ratio of 65.7%. The adjusted compensation ratio, excluding acquisition-related costs, was 65.5%, down 20 basis points sequentially. This indicates that despite significant investments in recruiting and technology, including the rollout of the proprietary AI assistant 'Raymond', the firm maintained discipline in its cost structure relative to revenue growth. Non-compensation expenses fell 5% year-over-year to $599 million, aided by the absence of a prior-year legal settlement reserve.

Capital Deployment

Raymond James returned $506 million to shareholders in the quarter through dividends and share repurchases. The firm repurchased $400 million of common shares at an average price of $152 per share. Over the past 12 months, total capital returned to shareholders neared $2 billion, representing 86% of earnings. The Tier 1 leverage ratio stood at 11.7%, well above regulatory requirements, with approximately $1.5 billion of excess capital capacity available before reaching the firm's conservative target of 10%.

Raymond James Financial (NYSE: RJF) appointed Chief Operating Officer Scott Curtis to lead its Bank Segment, effective January 1, 2027. The move initiates a planned succession from Steve Raney, who served as Bank Segment President for 21 years.

Raney will transition into an executive consulting role to facilitate an orderly handover. He will continue serving as chair of the Raymond James Bank board and remain on the boards of TriState Capital Bank and the firm’s two trust companies.

Leadership Transition Details

Curtis has served on the Raymond James Bank board since 2019. In addition to leading the Bank Segment, he will retain oversight of Raymond James Investment Management, Marketing, Corporate Real Estate, and Office and Procurement Services.

Raney will work closely with Curtis and the broader Bank Segment leadership team during the transition period. He will also remain a member of select bank committees.

Asset Management Shifts

Chief Strategy Officer Tarek Helal will assume oversight of the Asset Management Services (AMS) division starting January 1, 2027. This responsibility is in addition to his current duties as Chief Strategy Officer.