Raymond Jamess quarterly profit rises on capital markets strength

Oct 22 (Reuters) - Raymond James Financial reported a rise in fourth-quarter profit on Wednesday, as a rebound in dealmaking raked in more for its investment banking business.

Shares of the company, which have gained about 7% in 2025, were up about 1% after the bell.

Global mergers and acquisitions made a comeback in the July-September quarter as boardrooms looked past trade policy-driven macro anxiety and pushed the pedal on pent-up demand to strike big-ticket deals.

Global megadeals hit $1.26 trillion during the July-September quarter, up 40% from a year earlier, marking the second-largest third-quarter total on record, according to Dealogic data.

Big banks in the U.S. such as JPMorgan Chase and Bank of America have also benefited during the quarter from a rebound in dealmaking.

Raymond James' capital markets net revenues came in at $513 million in the fourth quarter, up from $483 million a year earlier.

Its adjusted net income available to common shareholders stood at $635 million, or $3.11 per share, in the three months ended September 30, compared with $621 million, or $2.95, in the year-ago period.

"As we enter fiscal 2026, we are well positioned with record client asset levels, a strong investment banking pipeline, robust growth opportunities across the business and ample capital and liquidity," CEO Paul Shoukry said in a statement.

Private client group, which also showed a 7% rise in revenue during the fourth quarter, is the company's biggest source of revenue.

The unit provides specialized financial services such as wealth management to high-net-worth individuals, families and businesses. (Reporting by Pritam Biswas in Bengaluru; Editing by Shreya Biswas)