New York Stock Exchange (NYSE) brokerage firms saw their profits decline in 2013, despite the fact that revenues rose from the previous year.
The NYSE reported that aggregate after-tax profits for its member firms declined to $10.9 billion (all figures in U.S. dollars) from $15.5 billion in the previous year. The profit drop came as expenses rose year-over-year, overwhelming the fact that revenues actually increased slightly (from $161.5 billion in 2012 to $162.4 billion in 2013).
Aggregate profits for the industry’s profitable firms declined from 2012 to 2013, and, at the same time, the total losses of the unprofitable firms increased year-over-year.
In the fourth quarter of 2013, total after-tax profits reached $2.1 billion on revenues of approximately $41.7 billion, compared with profits of $2.2 billion on revenues of about $37.7 billion in the third quarter of 2013, the NYSE noted. And, in the fourth quarter a year ago, profits reached $4.1 billion.
The results are from NYSE member firms that conduct business with the public, including firms that trade primarily for their own account, but excluding designated market makers.