July 23 (Reuters) - Raymond James Financial ( RJF )

reported a decline in third-quarter profit on Wednesday, as

reduced interest income offset strong performance in its capital

markets division.

U.S. banks have faced pressure on interest income as

elevated interest rates prompt customers to move cash into

higher-yielding alternatives, such as money market funds, in

pursuit of better returns.

In the company's private client group unit, assets under

administration rose 11% to about $1.57 trillion, while domestic

net new assets totaled $11.7 billion for the third quarter ended

June 30.

The quarterly net revenue in the private client group unit

increased 3% to about $2.49 billion, driven by higher asset

management and related administrative fees.

Net interest income and fees from company's Bank Deposit

Program with third-party banks for the quarter fell 2.4% to $656

million compared to the same period last year.

Capital markets revenue increased 15% year-on-year to $381

million, while total investment banking revenue climbed 17% to

$203 million.

Raymond James Financial's ( RJF ) adjusted net income available

to common shareholders fell to $449 million, or $2.18 per share,

from $508 million, or $2.39 per share, compared to a year

earlier.