(November 15 – 10:55 ET) –
Most financial services industries
experienced lower profitability
in 1998, according to the latest
numbers from Statistics Canada.
The independent brokerage business
remains the most profitable.
Among the financials, Schedule
I chartered banks posted the best
overall profitability in 1998,
a 10.8% return on capital.
That’s down from 11.5% in 1997.
However, between 1996 and 1998,
independent investment dealers had
the strongest businesses with an
annual average return of 13.7%.
They were trailed closely by the
bank dealers, who recorded a
13.2% return over the period.
The banks themselves came third
at 11.7%.
The worst performers were
consumer and business finance
firms, with a 5.5% return;
schedule II banks at 5.9%;
followed by finance leasing firms,
trusts and life insurers.
While he independent brokers
come out tops Statscan found that
their returns are very volatile,
with their success coming largely
on the strength of a 26.5%
return in 1996, dropping to
a 10.4% return in 1997, and
just 4.1% last year.
-IE Staff
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