(October 20 – 11:00 ET) – The U.S. securities industry has yet another record year in the bag. Revenues and profits for the first nine months of 2000 should exceed the record results achieved for the full-year 1999, both for domestic and worldwide operations, says a recent Securities Industry Association report.
Based on third-quarter market conditions and early reporting of public firms’ results versus second-quarter actual results, SIA researchers estimate that global industry pre-tax profits will hit US$46.7 billion, up from 1999’s record of $41.6 billion. On an annualized basis, they project industry profits for 2000 could reach $62.3 billion, a 50% increase over 1999, which was itself up 89% from 1998.
Gross global revenue in the third quarter alone is estimated to reach US$112 billion, slightly below the record $113 billion in the first quarter 2000. Pre-tax profits for the third quarter are estimated to reach $12.5 billion, down from $20.9 billion in Q1 2000 and $13.3 billion in Q2 2000.
Through the first eight months, underwriting volume totaled US$1.14 trillion, and could surpass last year’s total $1.32 trillion as deals in a clogged equity pipeline are released and an increase in corporate bond issuance comes to bear.
The SIA estimates a possible US$1.8 trillion annual record total. Equity issuance is up 38% from last year, with IPO volume totaling $66.9 billion, almost double the $38.6 billion raised during the same period last year.
-IE Staff