The firm reported record quarterly net revenues of $2.7 billion and record quarterly net income of $429 million, or earnings per diluted share of $2.02, which reflects the impact of the three for two stock split in September.
Excluding the $10 million of acquisition-related expenses, quarterly adjusted net income was $437 million and adjusted earnings per diluted share equaled $2.06.
Annualized return on equity for the quarter was 21.3% and adjusted annualized return on tangible common equity was 24.1%, a very impressive result, especially in the near zero-rate environment and given our strong capital position.
We ended the quarter with record total client assets under administration of $1.18 trillion, up 27% on a year-over-year basis and 1% sequentially.
We also achieved record PCG assets and fee-based accounts of $627 billion and record financial assets under management of $192 billion.
We ended the quarter with records of 8482 financial advisors, net increases of 243 over the prior period and 69% over the preceding quarter, representing a new record during the fiscal year we recruited financial advisors with approximately $330 million of trailing 12-month production and approximately $54 billion of client assets to our domestic independent contractor and employee channels.
Also in the Private Client Group, advisors generated domestic net new assets of approximately $83 billion in fiscal 2021, representing 10% of domestic PCG assets at the beginning of the fiscal year, a very strong result reflecting our excellent retention and record recruiting.
Also worth noting on the slide is the impressive loan growth at Raymond James Bank during the quarter, up 5% sequentially to a record $25 billion.
The Private Client Group generated record quarterly net revenues of $1.8 billion and pre-tax income of $222 million, a 12.3% pre-tax margin reflecting significant operating leverage over the past year.
The Capital Markets segment generated record quarterly net revenues of $554 million and pre-tax income of $183 million, representing an extremely impressive 33% pre-tax margin to net revenues.
The Asset Management segment generated record net revenues of $238 million and record pre-tax income of $114 million, up 29% and 46% over the year ago period respectively.
Raymond James Bank generated quarterly net revenues of $176 million and pre-tax income of $81 million.
Quarterly net revenues increased 9% over the year ago quarter, as higher levels of earning assets offset year-over-year compression in the bank's net interest margin.
Sequentially, net revenues grew 4% due to higher asset balances during the quarter.
Looking at the fiscal year 2021 results on slide seven, we generated record net revenues of $9.76 billion, up 22% over fiscal year 2020 and record net income of $1.4 billion, up 73% over fiscal 2020.
Excluding losses on the extinguishment of debt and acquisition-related expenses during the year, adjusted net income was $1.49 billion, up 74% over adjusted net income in fiscal 2020.
Record quarterly net revenues of $2.7 billion grew 30% year-over-year and 9% sequentially.
Record asset management fees grew 8% sequentially, commensurate with the sequential increase in the beginning of the quarter balance of fee-based assets.
Private Client Group assets and fee-based accounts were up 2% during the fiscal fourth quarter, providing a modest tailwind for this line item for the first quarter of fiscal 2022.
Consolidated brokerage revenues of $541 million grew 9% over the prior year, but declined 2% from the preceding quarter.
Brokerage revenues in PCG were up 17% on a year-over-year basis, but flat sequentially due to lower trading volumes, which offset the benefit from higher asset balances and associated trailing commissions.
For the fiscal year, brokerage revenues were up 13% to a record $2.2 billion, reflecting records for both PCG and fixed income, which had a fantastic year that was a testament to their leading position in the depository segment.
Account and service fees of $170 million increased 21% year-over-year and 6% sequentially, largely due to higher average mutual fund assets driving higher associated service fees.
Other revenues of $74 million were up 35% sequentially, primarily due to higher tax credit funds revenues.
We also had $18 million of private equity valuation gains during the quarter of which approximately $5 million were attributable to non-controlling interest reflected in other expenses.
Clients' domestic cash sweep balances, which are the primary source of funding for our interest-earning assets and the balances with third-party banks that generate RJBDP fees ended the quarter at a record $66.7 billion, up 6% over the preceding quarter and representing 6.3% of domestic PCG client assets.
As we continue to experience growing cash balances and less demand from third-party banks during fiscal 2021, $10.8 billion of client cash is being held in the client interest program at the broker dealer.
On slide 12, it was great to see an 8% sequential increase in the combined net interest income and BDP fees from third-party banks to $198 million.
This growth was largely attributable to strong asset growth and a resilient net interest margin at Raymond James Bank, which remained right at 1.92% for the quarter.
We expect the bank's NIM to settle right around 1.9% over the next couple of quarters.
The average yield on RJBDP balances with third-party banks remained flat at 29 basis points in the quarter.
The compensation ratio decreased sequentially from 67.2% to 65.8% largely due to record revenues in the capital markets segment, which had a very low 52% compensation ratio during the quarter.
Given our current revenue mix and disciplined management of expenses, we are confident we can maintain a compensation ratio of 70% or lower in this near-zero short-term interest rate environment.
And as we experienced in fiscal 2021, we can do meaningfully better than 70% with Capital Markets revenues at or near these record levels, which is our expectation for at least the next quarter or two.
Non-compensation expenses of $361 million decreased 15% sequentially, primarily driven by the $98 million loss, on extinguishment of debt in the fiscal third quarter.
Just as a reminder, business development expenses totaled about $200 million in fiscal 2019, before the start of the pandemic.
Additionally, whereas we had a $32 million net benefit for credit losses in fiscal 2021, we would expect bank loan loss provisions for credit losses associated with net loan growth, in fiscal 2022.
Pre-tax margin was 20.8% in the fiscal fourth quarter of 2021.
And adjusted pre-tax margin was 21.2%, which was boosted by record revenues and still relatively subdued business development expenses.
At our Analyst and Investor Day in June, we outlined a pre-tax margin target of 15% to 16% in this near-zero interest rate environments.
On slide 15, at the end of the quarter, total assets were approximately $61.9 billion an 8% sequential increase, reflecting solid growth of loans at Raymond James Bank as well as a substantial increase in client cash balances being held on the balance sheet.
The total capital ratio of 26.2% and a Tier 1 leverage ratio of 12.6% are both over double the regulatory requirements to be well capitalized, giving us significant flexibility to continue being opportunistic and grow the business.
You can see that RJF corporate cash at the parent ended the quarter at $1.15 billion, decreasing 26% during the quarter, as we have restricted the cash that we plan on using to close on the Charles Stanley acquisition, which we currently expect to close in the first or second quarter of fiscal 2022, for as soon as we receive the requisite regulatory approvals.
During the fiscal year, we repurchased nearly 1.5 million shares, split adjusted for $118 million.
As of October 27th, $632 million remained under the current share repurchase authorization.
Criticized loans declined and non-performing assets remain low at just 20 basis points.
The bank loan loss provision of $5 million was primarily driven by strong loan growth during the quarter.
The bank loan allowance for credit losses as a percent of loans held for investment, declined from 1.34% in the preceding quarter to 1.27% at quarter end.
For the corporate portfolios these allowances are higher at around 2.25%.
In the Private Client Group segment, results will benefit modestly by starting the fiscal first quarter with a 2% sequential increase of assets in fee-based accounts.

Summary:
The firm reported record quarterly net revenues of $2.7 billion and record quarterly net income of $429 million, or earnings per diluted share of $2.02, which reflects the impact of the three for two stock split in September.
Excluding the $10 million of acquisition-related expenses, quarterly adjusted net income was $437 million and adjusted earnings per diluted share equaled $2.06.
Record quarterly net revenues of $2.7 billion grew 30% year-over-year and 9% sequentially.
You can see that RJF corporate cash at the parent ended the quarter at $1.15 billion, decreasing 26% during the quarter, as we have restricted the cash that we plan on using to close on the Charles Stanley acquisition, which we currently expect to close in the first or second quarter of fiscal 2022, for as soon as we receive the requisite regulatory approvals.