Raymond James and Ameriprise Financial reported relatively strong earnings from their wealth management divisions, including strength in advisor recruiting that both firms predict will continue into the latter half of the year.
Raymond James CEO Paul Shoukry, in his second quarterly earnings call in the top job, said the advisor pipeline was the strongest the firm had seen in nearly 20 years across the independent contractor, employee and independent RIA channels.
“When we speak to the teams who have been with Raymond James for a long time, we really haven’t seen this type of acceleration in activity since the financial crisis,” Shoukry said on a call Wednesday after market close. “Of course, the advisors that we are talking to know are much larger than the advisors that were talking to us after the financial crisis as a safe haven.”
In its third fiscal quarter ending June 30, Raymond James brought in independent contractor and employee channel advisors with $336 million in trailing 12-month production and $52 billion in client assets. When including the RIA and custody service divisions, that figure was $60 billion.
“Based on a robust recruiting pipeline and strong level of commitments, we’re even more optimistic about our momentum and growth over the coming quarters,” Shoukry said.
Citizens Bank analyst Devin Ryan wrote in a note following the earnings that his team was keeping its “market outperform” rating on the firm.
“Overall, Raymond James is exiting the quarter with accelerating business momentum across its operating segments,” he wrote. “We are encouraged by the positively trending wealth management organic growth the company spoke to, given that this has been an area of investor attention recently.”
The firm had 8,800 financial advisors as of March 31, the most recent figure available.
Raymond James’s Private Client Group, its largest division, reported net revenue increased by 3% quarter-over-quarter to $2.49 billion, partly due to higher asset management and related administrative fees and growth in fee-based accounts. Overall income in the division fell 7% to $411 million, “primarily due to the impact of lower interest rates,” according to the firm.
Total net revenue, including capital markets, asset management and banking, was $3.4 billion, 5% above 2024’s fiscal third quarter. Adjusted net income was $449 million, or $2.18 per diluted share, for the fiscal third quarter ended on June 30. That compares to $508 million in net income, or $2.39 per diluted share, in the same period for 2024.
When answering analyst questions, Shoukry said private equity involvement in the advisor space, particularly in RIA roll-ups, continues to create pressure on recruiting as Raymond James is “competing with big checks.” He also said that even PE firms are seeing that “advisor valuations have gotten lofty,” and that some may be pausing.
“I think they are getting to the point now somewhat of an inflection point in that business where they are trying to figure out what’s next [and asking] how much higher can those multiples go?” he said. “Is there a public market for that type of multiple? Are there strategic buyers for that type of multiple? Is there another private equity buyer or continuation fund?”
Ameriprise CEO Says Net Advisor Count Up, As Are Recruiting Packages
In its earnings released Thursday morning, Ameriprise reported a 4% quarter-over-quarter increase in net revenue to $4.3 billion and a 7% jump in adjusted operating earnings per diluted share to $9.11.
On a call with analysts, Ameriprise Chairman and CEO Jim Cracchiolo said that “while markets were volatile in the quarter, client activity remained strong.”
Cracchiolo also said advisor productivity grew by double digits, hitting a record for the Minneapolis-based independent broker/dealer. In addition, assets under management, administration and advisement reached a record high of $1.6 trillion, up 9% compared to the end of the third quarter.
The firm recruited 73 advisors in the quarter, compared to 52 advisors added in the same quarter last year. That count, however, is lower than the 82 advisors brought on during the first quarter of 2025.
In answering analyst questions, Cracchiolo said there are buyers in the market for advisors making “irrational” offers that are “well above the economics.”
He said Ameriprise “had to raise our packages a bit based on the competitive range.” However, he also noted that the firm would continue to be selective in its advisor recruiting and would not chase “over-the-top” offers.
When asked by an analyst if the firm feared losing out on talent due to its approach, he said, “Our net advisor count is actually up, so that’s not a concern that we have per se,” and also forecast a strong third-quarter for advisor recruiting.
The firm has most recently reported having over 10,000 advisors. It is also in a legal dispute with competitor LPL Financial over allegations of stolen client data for advisors who moved from Ameriprise to LPL.
Overall, Ameriprise’s advice and wealth management division saw pre-tax-adjusted operating earnings drop to $812 million compared to $848 million in the same quarter last year. According to the firm, the results were due to the “impact from market volatility on fee-based earnings within the quarter, as well as lower interest revenue from the 100-basis-point reduction in the federal funds effective rate in late 2024.“
Adjusted operating net revenue for the division rose 6% to $2.8 billion from higher client assets, and the company added that “the equity market recovery in June positions us well as we enter the third quarter.”
Cracchiolo noted that market volatility is driven by global trade policy uncertainty and normal seasonal tax payment trends. Earlier this month, wirehouses Bank of America, Morgan Stanley and Wells Fargo also reported relatively favorable results after weathering volatile markets following President Donald Trump’s changes to U.S. trade and tariff policy.
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