Raymond James FY25: Wealth Management Engine Drives Record Revenue

Financial statements can often feel like a dense forest of numbers, but digging into the 10-K filing of a major financial institution offers a clear view of the economic landscape. Today, we are breaking down the fiscal year 2025 results for Raymond James Financial (RJF). For those unfamiliar, Raymond James is a diversified financial services holding company based in St. Petersburg, Florida. While it may not have the instant name recognition of a "bulge bracket" bank like Goldman Sachs, it is a massive player in the wealth management space, serving "Main Street" investors, independent financial advisors, and mid-market corporations.

You can view the full filing here.

To visualize how the money moves through Raymond James—from interest income and commissions down to the bottom line—take a look at the flow diagram below.

The Wealth Management Engine

The headline for fiscal year 2025 is growth. Raymond James reported record net revenues of $14.07 billion, a 10% increase over the previous year. Net income available to common shareholders rose to $2.13 billion, or $10.30 per diluted share.

The primary driver of this machine remains the Private Client Group (PCG). This segment accounts for the lion's share of the business, generating $10.18 billion in net revenues. The story here is tied directly to market performance. As stock and bond markets rallied, the value of assets in client accounts grew.

• Assets Under Administration (AUA): Reached a record $1.67 trillion, up 11% year-over-year.
• Fee-Based Assets: Comprise 60.5% of AUA. This is critical because fee-based accounts provide recurring revenue, smoothing out the volatility of commission-based trading.

Capital Markets: The Thaw Begins

For the past two years, investment banking across the globe has been in a slump due to high interest rates and economic uncertainty. Raymond James' filing suggests the winter is over. The Capital Markets segment saw net revenues jump 20% to $1.77 billion, while pre-tax income skyrocketed 118% to $146 million.

This was driven by a resurgence in investment banking revenues, which grew 26%. The company cited "more favorable market conditions" leading to more mergers and acquisitions (M&A) and underwriting deals. For investors looking for signs of a broader economic "soft landing," this uptick in deal activity is a positive signal.

The "Cash Sweep" Headwind

One area requiring scrutiny is the Raymond James Bank Deposit Program (RJBDP). This is a "cash sweep" program where uninvested client cash is moved into interest-bearing accounts at banks, generating fees for Raymond James.

While still profitable, fees from third-party banks within this program dropped 20% to $486 million. This decline reflects a challenging environment where clients are moving cash into higher-yielding alternatives (like Treasuries) or demanding higher rates on their cash, which compresses the "spread" the firm can earn. This is a structural challenge facing the entire brokerage industry, from Charles Schwab to LPL Financial.

Summary

Raymond James delivered a solid fiscal 2025, balancing the headwinds of higher funding costs in its banking division with robust growth in wealth management and a sharp recovery in investment banking. The firm’s reliance on asset-based fees makes it sensitive to market corrections, but its diversified model—combining a massive advisor network with a rebounding capital markets arm—positions it well against competitors. As the interest rate environment evolves in 2026, the key metric to watch will be how effectively they manage net interest margins while retaining client cash.