The wirehouse also reported record revenue of over $2 billion for the recent quarter.

The firm is preparing for the fiduciary rule and contesting a lawsuit alleging that Raymond James allowed a $350 million fraud to be perpetuated.

Revenue in 2016 from the retail brokerage business slipped 6% to $281 million from $300 million in 2015.

While fourth-quarter revenue from brokerage services posted a sharp 20% over-over-year decline, the overall wealth management business still managed to come out ahead.

Fourth-quarter revenue jumped 19% year-over-year, while profits soared 57%.

James Gorman laid out plans for the wealth management unit, which turned in record earnings for the fourth quarter.

The advisory business ended the year on a strong note, boosted by growth in net interest income, which rose 14% year-over-year.

The business, which includes Merrill Lynch, said profits were up 1.8% year-over-year, but down 9% from the previous quarter.

CEO Ron Kruszewski says market conditions and the fiduciary rule are dampening growth at the firm and throughout the industry.

Amid reports of a possible sale, assets rise and expenses fall.