Press Release

January 23, 2008
Printable version (PDF)

RAYMOND JAMES FINANCIAL, INC.
ANNOUNCES FIRST QUARTER RESULTS

ST. PETERSBURG, Fla. – Raymond James Financial, Inc. today reported a 5 percent decrease over the prior year’s quarterly net income to $56,242,000 or $0.47 per diluted share, for the first quarter ended December 31, 2007. In comparison, the firm earned $59,395,000, or $0.50 per diluted share, for 2007’s first quarter. Net revenues increased 14 percent to $685,827,000, while gross revenues grew 17 percent to $829,191,000.

“Although we have avoided the losses directly attributed to the subprime financial debacle experienced by many large banks and securities firms, our results have been negatively impacted by the fallout. As a result, our earnings are down 5 percent from last year’s comparable first quarter in spite of a 14 percent increase in net revenues,” stated Chairman and CEO Thomas A. James.

“Good relative results in our Private Client Group, Asset Management Group and Raymond James Bank have been overshadowed by a $10 million reduction in the Capital Markets segment’s profits. Part of that decline relates to the absence of the largest merger fee in our history, which occurred in last year’s first quarter. As a result of the stock market’s volatility and apparently negative direction, underwriting activity has also come to a virtual standstill, which accounts for the rest of the decline. Absent this factor, Raymond James would have achieved earnings generally in line with analysts’ estimates,” James continued.

“The real question is whether the current market decline will worsen as a result of a combination of increasing risk of a recession and higher rates of inflation. Although I do not claim to have a crystal ball, that risk has certainly escalated in recent weeks as employment statistics have weakened. If investor perception worsens and/or actual corporate earnings results manifest that reality, results in the financial services sector will continue to disappoint. We will do our best to navigate these troubled waters. In any case, I remain confident that we will continue to outperform our peers.”

The company will conduct its quarterly conference call Thursday, January 24, at 4:15 p.m. EST. The telephone number is 877-777-1972. The call will also be available on demand on the company’s website, raymondjames.com, under “About Our Company,” “Investor Relations,” “Financial Reports,” “Quarterly Analyst Conference Call.” 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.) and Raymond James Investment Services Limited, a majority-owned independent contractor subsidiary in the United Kingdom, have a total of more than 4,770 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 $217 billion, of which $37.3 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’ 2007 annual report on Form 10-K, which is available on raymondjames.com and sec.gov.

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