April 22 (Reuters) - Raymond James Financial reported a rise in second-quarter profit on Wednesday, helped by an artificial intelligence-fueled market rally that pushed its fee-generating assets to a record high.
Though U.S. markets have been volatile due to concerns from the Iran war and a broader software selloff, they have remained relatively sturdy.
Optimism around artificial intelligence-driven growth, resilient economic data and expectations that major central banks were nearing the end of their tightening cycles kept the equity markets steady.
A rallying stock market helps asset managers as higher stock prices lift assets under management, raking in more in fees without inflows.
Its total assets under administration, which include functions such as custody and account servicing, rose 15% to $1.76 trillion, lifting management and administration fees by 17% to $2.02 billion.
Revenue from its private client group - the company's biggest source of revenue - rose 13% to $2.81 billion. The unit provides specialized financial services such as wealth management to high-net-worth individuals, families and businesses.
Volatile markets are beneficial for brokerage service providers as traders look to capitalize on broader market moves and hedge against potential losses, driving higher volumes.
The St. Petersburg, Florida-based company's capital markets revenue rose 17% to $464 million.
Net interest income - the spread between what it pays out on deposits and earns on loans - for the quarter fell to $960 million from $963 million a year prior.
Profit in the quarter was $564 million, or $2.83 per share, compared with $507 million, or $2.42 per share, a year earlier.
(Reporting by Atharva Singh & Utkarsh Shetti in Bengaluru; Editing by Pooja Desai)
