Raymond James Profit Up

Revenue growth is weak at the broker.
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Raymond James

(RJF) - Get Report

reported a 14% rise in its fourth-quarter profit, but revenue growth was lackluster.

The firm earned $50.9 million, or 44 cents a share, compared with $44.7 million, or 39 cents a share, in the year-ago period. Net revenue rose 4% to $587 million.

Analysts, as surveyed by Thomson Financial, were looking for earnings of 43 cents a share on revenue of $580 million.

Despite beating the analyst estimate by a penny, the quarter was a mixed one for Raymond James.

Revenue from commissions and fees was unchanged from a year ago at $375 million. Meanwhile, investment banking plunged 27% to $46 million.

The quarter was saved by a big 122% surge in interest-related revenue to $149 million. The surge no doubt stems from customers paying higher rates on margin accounts for borrowed stock.

The firm said its optimistic that "growth will continue'' in 2007.