Make us your home page
Instagram

Raymond James cites financial "malaise" in reporting 90% profit drop

Raymond James Financial Inc. blamed a widening "malaise" in the financial sector in posting a 90 percent drop in quarterly profits and the first-ever loss for its Raymond James Bank unit.

The St. Petersburg financial services company said late Wednesday that net income for its second fiscal quarter ended March 31 fell to $6.1 million, or 5 cents per diluted share, compared with $59.8 million, or 50 cents a share, in the year-ago quarter. Net revenue dropped 15 percent to $589.7 million.

"As we have been forecasting for some time, the malaise in the financial sector, which has migrated to the general economy, has manifested itself in Raymond James Bank's loan portfolio," chairman and chief executive Thomas A. James said in a statement.

Citing worsening conditions in both real estate and its corporate sector, Raymond James recorded a $75 million provision for loan losses, three times the $25 million set aside in the previous quarter. The provision included a $28 million chargeoff on a single loan to a commercial mortgage real estate investment trust, other smaller chargeoffs and additions to its reserves.

The company's pool of nonperforming loans swelled $79 million in the quarter to $143 million. The real estate downturn triggered a pretax loss of $12.4 million at Raymond James bank. About $1.4 billion of the bank's commercial loan portfolio is in real estate.

James declined to project future bank results, but said the bank expects to increase its loan loss reserves at least through this calendar year.

The company's shares are down approximately 19 percent since it previewed its dour quarter last week. It released earnings after the close of markets Wednesday.

Jeff Harrington can be reached at jharrington@sptimes.com or (727) 893-8242.

Raymond James cites financial "malaise" in reporting 90% profit drop 04/22/09 [Last modified: Wednesday, April 22, 2009 11:41pm]
Photo reprints | Article reprints

© 2017 Tampa Bay Times

    

Join the discussion: Click to view comments, add yours

Loading...
  1. There's a bar in Tampa where you can roller skate and eat sushi

    Food & Dining

    Roller skating, it's not just for kids birthday parties and the 1970s anymore.

    The exterior of Pattinis features this mural by Art Aliens! [Pattinis South Tampa via Facebook]
  2. Lockdown: Florida's 97,000 prison inmates confined through weekend

    State Roundup

    All of Florida's 97,000 state prison inmates are on lockdown — and will remain confined to their dorms at least through the weekend — in response to unspecified threats about possible uprisings, officials from the Florida Department of Corrections confirmed Thursday.

    Blackwater River Correctional Facility. [Florida Department of Corrections]
  3. Carnival announces five more cruises from Tampa to Cuba

    Tourism

    TAMPA — Carnival Cruise Line is adding five more cruises from Tampa to Cuba in 2018, Port Tampa Bay announced Thursday.

      Carnival Cruise Line announced additional cruises to  Cuba. Pictured is its Paradise cruise ship departing on its inaugural voyage to Cuba from Tampa. | [MONICA HERNDON | Times]
  4. Engage Behavioral Health expands into Wesley Chapel

    Business

    On Aug. 5, Engage Behavioral Health celebrated the grand opening of a new clinic in Wesley Chapel.

    hillsevbiz081117: Jennifer Phelps is the CEO & Founder of Engage Behavioral Health. Photo courtesy of Engage Behavioral Health.
  5. Former owner of Sirata Beach Resort purchases two Tampa Bay shopping centers

    Real Estate

    ST. PETERSBURG — After selling the Sirata Beach Resort and Conference in February, Nicklaus of Florida, Inc., has purchased two Tampa Bay shopping centers to diversify the firm's portfolio in the area. Colliers International, representing the sellers, announced the transaction this week.

    Sirata Beach Resort and Conference Center, one of Tampa Bay's last family-owned beach hotels, was sold to a Texas-based company, Crescent Real Estate LLC for $108.19 million. [LARA CERRI | Times]