New York Stock Exchange (NYSE) dealers reported that their profits were more than halved in the second quarter, compared to the previous quarter.
NYSE member firms that conduct business with the public reported second quarter after-tax profits of slightly over US$2.1 billion, down from US$4.7 billion in the prior quarter. However, this was more or less in line with the second quarter of 2011.
Total revenues were down to approximately US$37.0 billion in the second quarter, compared with over US$42.0 billion in the first quarter, and US$39.7 billion in the same quarter last year. Expenses were also down to US$33.8 billion from US$34.8 billion in the first quarter.
Just 92 firms were profitable in the second quarter, down from 116 in the first quarter. And, they reported aggregate pre-tax earnings of US$3.9 billion, down from US$7.4 billion in Q1.
The revenue data includes firms that trade primarily for their own account, but excludes designated market makers. Revenues are predominantly derived from investment banking, trading, commissions, and interest.