Raymond James’ Private Client Group saw its advisor ranks shrink in its fiscal third quarter than ended in June — due in part to the way that it counts them — and assets tumble, but the unit posted record revenues regardless.

The business had 8,616 advisors at the end of June, down from 8,730 at the end of March, according to the firm’s latest quarterly earnings report.

“Financial advisor retention and recruiting remain strong across our multiple affiliation options,” chairman and chief executive officer Paul Reilly said in the report. “Adjusting for the transfer of 188 advisors during the quarter, primarily from one firm, to our [RIA and custody services] division where advisors are not included in our advisor count but assets are generally retained, the number of financial advisors increased 74 over the preceding quarter.”

Private Client Group assets under administration, however, dropped 11% during the latest quarter, to $1.07 trillion, which was also 3% lower year-over-year, according to the report.

Fee-based account assets in the unit also fell 11% since the end of March, to $606.7 billion, which was also 2% lower year-over-year, the company says.

Nonetheless, net revenues in the Private Client Group during the latest quarter hit a record $1.96 billion, which was 2% higher than in the quarter ending in March and 15% higher year-over-year, according to the report.

The growth during the quarter was due to higher fees in the firm’s bank deposit program as well as net interest, which together “more than offset the sequential declines in asset management and related administrative fees and brokerage revenues,” Raymond James said.

The year-over-year growth in revenues, meanwhile, were due to the growth in asset management and related administrative fees, as well as in the bank deposit fees and net interest income, according to the report.

That in turn helped the unit reach a record $251 million in pre-tax income in the latest quarter, which was 18% higher than in the prior quarter and 29% higher year-over-year, the company says.

The Private Client Group includes advisors employed by Raymond James & Associates and Alex. Brown; advisors contracted through Raymond James Financial; and independent broker-dealers and registered investment advisor firms through the RIA and custody services division.

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