Raymond James Financial’s (RJF) earnings declined 39% as the economic downturn continues to affect the company, but the results marked a sharp improvement from the previous quarter. CEO Thomas James said “like the rest of corporate America, improved short-term profit results don’t reflect much revenue growth, symptomatic of the continuing deep recession.”
Net revenue fell 16% year-over-year to $624.8 million, which is a 6% improvement sequentially. Most major sources of the firm’s revenues recorded double-digit percentage declines form a year earlier, including 16% in securities commissions and fees to $405.9 mlilion. Revenue from investment banking fell 43% while revenue from investment advisory fees was down 46%.
The company recorded a $29.8 million provision for loan losses, more than double a year ago, but down 60% sequentially. The regional brokerage has suffered along with the rest of the sector from credit deterioration and weak economic conditions. However, the company decided in May to turn down a capital injection from the government.
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Peter J. Lazaroff, Investment Analyst
Thursday, July 23, 2009
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