Raymond James AUM Surge Masks Loan Slowdown
The brokerage’s assets under management jumped 35% YoY to $342.7 billion in May, fueled by an April acquisition.
Raymond James Financial’s (RJF) asset-gathering engine accelerated in the fiscal third quarter, even as its bank loan book stalled. Financial assets under management surged 35% year-over-year to $342.7 billion in May, up from 22% annual growth in April, after the April 30 acquisition of Clark Capital Management Group added $37 billion in AUM. The gain lifted total client assets under administration to $1.92 trillion, a 21% annual increase that marked a slight moderation from April’s 22% pace.
The Private Client Group, which accounts for roughly two-thirds of revenue, saw fee-based assets grow 27% year-over-year to $1.157 trillion in May, outpacing the 22% annual growth recorded in February. Management attributed the pickup to advisor recruiting and market appreciation, though quarter-over-quarter growth in client assets under administration slowed to 3% in May from 6% in April.
On the balance sheet, average bank loans were flat quarter-over-quarter at $55.3 billion in May after rising 1% in April and 14% year-over-year. The deceleration stemmed from offsetting mix shifts: securities-based loans and residential mortgages expanded, while corporate lending contracted. Deposits offered a brighter signal. Clients’ domestic cash sweep and Enhanced Savings Program balances rebounded 3% year-over-year to $55.8 billion in May, reversing a 4% annual decline in February and signaling stabilization after seasonal tax outflows.
The custody-and-asset-management franchise’s results underscored its resilience in a choppy rate environment. While loan growth has cooled, the firm’s focus on fee-based revenue streams—bolstered by acquisitions and advisor recruitment—kept top-line momentum intact. With deposit outflows contained and AUM growth reaccelerating, Raymond James appears positioned to weather a potential Fed easing cycle without a sharp compression in net interest margins.
Management has not provided formal guidance, but the May metrics suggest the firm’s diversified model remains a buffer against macro volatility. The Clark Capital integration, now complete, should continue to lift AUM growth in the coming quarters, while the stabilization in deposit balances eases pressure on funding costs. For now, the story is one of asset accumulation outpacing loan demand—a dynamic that may persist if the Fed holds rates higher for longer.