Raymond James Bank
Driven by continued growth in its loan portfolio and bolstered by a rising interest rate environment, Raymond James Bank posted record net revenues and pre-tax income in fiscal year 2018 – increases of 23% and 20% over fiscal 2017, respectively.
KEY PERFORMANCE DRIVERS
- Recruiting success in the Private Client Group and continued integration into advisors’ practices
- A rising interest rate environment that provided year-over-year expansion of net interest margin
- Broad-based loan growth, influenced by increased offering of high-net-worth lending solutions
Continued focus on Private Client Group support
PCG advisor growth has organically driven growth of cash management and lending programs – for example, securities based loan balances, which are up 27% in 2018 – but greater penetration of this natural market is an ongoing priority. In 2018, the bank established a team of consultants to provide individualized support for advisors and created a Cash & Lending Institute that will commence early in fiscal year 2019, both designed to better educate advisors on the benefits of banking products.
Expansion of services for high-net-worth clients
Over the last two years, Raymond James Bank has expanded its offering for high-net-worth and ultra-high-net-worth clients, beginning with the introduction of a Private Wealth Mortgage channel for these clients, which has helped to drive total originated mortgage balances up almost 31% over the last five years. In 2018, the bank initiated the Structured Lending division, hiring an experienced team of professionals to serve extremely wealthy clients with multifaceted borrowing needs, while continuing our commitment to sound underwriting and comprehensive risk management.
Ongoing diversification of corporate banking
In fiscal 2018, the bank continued to diversify its corporate lending business, expanding its relationships with large corporate agent banks in North America and Europe, completing loan participations with several new banks, and adding a new real estate banker to develop relationships on the West Coast. Meanwhile, even as taxexempt lending slowed overall due to changes from the Tax Cuts and Jobs Act of 2017, that business has grown to $1.23 billion since its inception four years ago
While Raymond James Bank is clearly focused on meeting the needs of clients and navigating the ever-changing market and regulatory environment, it continues to be vigilant in its business practices and conservative in its product offerings. Looking ahead, there is significant opportunity for growth; however, the bank will continue to be strongly committed to robust risk management and solid financial discipline, in keeping with the core values that have historically driven Raymond James’ success.