You can call it Ray. You can call it Ray Jay. But Raymond James Financial will do just fine. The company offers investment and financial planning services primarily through subsidiary Raymond James & Associates (RJA), which provides securities brokerage, investment banking, and financial advisory services in North America and Europe; and Raymond James Financial Services, which offers financial planning and brokerage services through independent financial advisors, as well as through alliances with community banks. Other divisions provide asset management, trust, and banking services. Raymond James Financial has more than 2,300 traditional branches, satellite offices, and independent contractor branches.
The company's business is divided into several primary segments. The Private Client Group is the largest, accounting for more than 60% of the company's revenue; it provides retail brokerage and financial planning services to nearly 2 million customers, mainly in the US, Canada, and the UK. The Asset Management segment, which oversees some $40 billion on behalf of clients, includes Eagle Asset Management, Eagle Boston Investment Management, Eagle Fund Distributors, Raymond James Trust, and investment advisory programs through agreements with other asset managers.
Raymond James Financial's capital markets segment handles investment banking and equity research services. It is building the business through acquisitions. In one of its largest to date in any segment, the company in 2012 bought the investment banking and brokerage business of Morgan Keegan from Regions Financial for $1.2 billion.
Raymond James Financial previously purchased boutique investment bank Lane, Berry & Co. International in Boston in 2009 and Chicago-based investment bank and brokerage Howe Barnes Hoefer & Arnett in 2011. Not long after the latter deal, Raymond James Financial said it hopes to be a "serial niche acquirer" of brokerages, boutique investment banks, and asset managers.
Raymond James Bank (RJ Bank), securities lending, proprietary investments, and the Emerging Markets segment, which is involved in joint ventures in Latin America, help to round out Raymond James Financial's operations.
RJ Bank acquired the Canadian operations of Allied Irish Banks in 2012, adding a portfolio of approximately $430 million in loan commitments. In conjunction with the deal, RJ Bank launched a new finance company in Canada, which will help the company grow its corporate and real estate banking business. It's part of Raymond James Financial's strategy of expanding its corporate lending business to additional markets.
Raymond James Financial posted record revenues of nearly $3.4 billion and record earnings of some $278 million for fiscal 2011. Those figures represent increases of 14% and 22%, respectively, over the prior year. The company attributed its positive results in part to increased client activity in its Private Client Group and Asset Management segments as investor confidence improved along with the overall economy.
Executive chairman Thomas James owns about 18% of Raymond James Financial. – less