Press Release

Release No. 0107-18
January 23, 2007
Printable version (PDF)

RAYMOND JAMES FINANCIAL, INC.
ANNOUNCES FIRST QUARTER RESULTS

ST. PETERSBURG, Fla. – Raymond James Financial, Inc. today reported a 32 percent increase over the prior year’s quarterly unaudited net income to $59,395,000, or $0.50 per diluted share, for the first quarter ended December 31, 2006. In comparison, the firm earned $45,109,000, or $0.40 per diluted share, for fiscal 2006’s first quarter. Net revenues increased 15 percent to $603,900,000, while gross revenues grew 23 percent to $709,629,000.

“Favorable conditions in the equity markets extended into fiscal 2007, generating robust growth in all domestic market segments in the December quarter. The Private Client Group set the tone as pre-tax income surged 47 percent as commissions and fees experienced healthy increases. Although investment banking revenues attained a new record for the first quarter as a result of vibrant merger and acquisition fee revenues, continuing lackluster fixed income results conjoined with languid equity institutional commissions depressed Capital Markets net income. On the other hand, Raymond James Bank doubled its pre-tax net income and the Asset Management Group attained a 34 percent increase in pre-tax income based on an expanding asset base, which reached $33.9 billion on December 31, 2006,” stated Chairman and CEO Thomas A. James.

“Fueled by growth in Raymond James Bank and increases in cash balances in the broker-dealers, net interest achieved a new record quarterly contribution of $52.5 million. In addition, favorable adjustments in bonus accruals impacted the quarter by about $10 million or $3 million more than last year, but won’t be a contributing factor in the remaining quarters,” he continued.

“While market conditions are still buoyant, lower corporate earnings growth combined with continuing restrictive monetary policy may delimit our ability to maintain our recent rate of profit expansion.”

The company will conduct its quarterly conference call January 24 at 4:15 p.m. EST. The telephone number is 800-773-5520. The call will also be available on demand on the company’s Website, raymondjames.com, under “About Our Company,” “Financial Results and SEC Filings.” The subjects to be covered may also include forward-looking information. Questions may be posed to management by participants on the call, and in response the company may disclose additional material information.

Raymond James Financial (NYSE-RJF) is a Florida-based diversified holding company providing financial services to individuals, corporations and municipalities through its subsidiary companies. Its three wholly owned broker/dealers, Raymond James & Associates, Raymond James Financial Services and Raymond James Ltd., have more than 4,600 financial advisors serving approximately 1.6 million accounts in 2,200 locations throughout the United States, Canada and overseas. In addition, total client assets are approximately $193 billion, of which $33.9 billion are managed by the firm’s asset management subsidiaries.

To the extent that Raymond James makes or publishes forward-looking statements (regarding economic conditions, management expectations, strategic objectives, business prospects, anticipated expense savings, financial results, anticipated results of litigation and regulatory proceedings, and other similar matters), a variety of factors, many of which are beyond Raymond James’ control, could cause actual results and experiences to differ materially from the expectations and objectives expressed in these statements. These factors are described in Raymond James’ 2006 annual report on Form 10-K, which is available on raymondjames.com and sec.gov.

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For more information, please contact Tracey Bustamante at 727-567-2824.
Please visit the Raymond James Press Center at raymondjames.com/media.