(February 28 – 16:00 ET) – The Securities Industry Association in the U.S. says that 1999 was a record year for the securities industry, with pre-tax profits topping out at US$16.3 billion.
1999 blew away the previous record of US$12.2 billion, recorded in 1997. Industry profits boomed in the fourth quarter to put the year into the record books. “Actual fourth-quarter 1999 results defied all predictions,” said Frank Fernandez, SIA senior vice president and chief economist. “The industry posted an astounding $6.8 billion in pre-tax profits during the last three months of 1999.”
Revenue gains were seen in principal trading, up 85% to US$36.4 billion. Commission revenue was up 21% to US$29.3 billion. Underwriting and margin interest revenue each rose about 10% to US$12.1 billion and US$13.4 billion respectively. Asset management fees grew 27% to US$11.5 billion and mutual fund revenue was up just 7% to US$6.7 billion. Research revenue exploded, albeit from a low level, up 183% to US$157 million from US$55 million in 1998.
Similar figures are not yet available for the Canadian industry, although through the third quarter Canadian industry performance was weakening.
– IE Staff