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NYSE Member Firms Report Fourth-Quarter 2002 Results

Date 12/03/2003

New York Stock Exchange member firms that conduct business with the public reported fourth-quarter 2002 after-tax profits of $695 million and revenues of $35.51 billion, a 62.1 percent and 16.0 percent decline, respectively, compared to $1.8 billion in after-tax profits on revenues of $42.29 billion in fourth-quarter 2001. In 2002, the firms reported after-tax profits of $4.52 billion on revenues of $148.68 billion, compared with $6.76 billion on revenues of $194.79 billion in 2001.

For fourth-quarter 2002, NYSE specialists reported after-tax profits of $106 million, a 1.9 percent increase from the year-ago quarter's $104 million. Total specialist revenue declined by 10.4 percent in fourth-quarter 2002, to $407 million, from $454 million in fourth-quarter 2001. In 2002, specialists reported after-tax profits of $397 million on revenues of $1.65 billion, compared to after tax-profits of $414 million on revenues of $1.78 billion in 2001. Comparative financial results are charted below::

Member Firms Dealing with the Public
($ in millions)
  4th Qtr. 2002 4th Qtr.2001 3rd Qtr. 2002 Y-T-D 2002 Y-T-D 2001
Revenues $ 35,509 $ 42,291 $ 35,616 $ 148,676 $ 194,790
Expenses 34,441 39,468 34,748 141,727 184,386
After-Tax Profit/Loss 695 1,835 564 4,517 6,762
After-Tax Annualized
Return on Capital & Subordinations
1.9% 4.9% 1.5% 3.6% 4.6%
Assets*** 2,647,372 2,718,199 2,717,779 2,647,372 2,718,199
Capital & Subordinations 144,573 148,924 145,791 144,573 148,924
Commission Revenues 6,691 6,618 6,730 27,571 26,833
Number of Firms Reporting 240 261 244 263 277
Number of Profitable Firms 137 153 155 166 178
Aggregate Pre-Tax Earnings
of Profitable Firms
3,101 4,643 2,273 12,580 15,613
Number of Unprofitable Firms 103 108 89 97 99
Aggregate Pre-Tax Loss
of Unprofitable Firms
(2,032) (1,820) (1,406) (5,630) (5,208)

NYSE Specialists
($ in millions)
  4th Qtr. 2002 4th Qtr. 2001 3rd Qtr. 2002 Y-T-D 2002 Y-T-D 2001
Revenues $ 407 $ 454 $ 440 $ 1,645 $ 1,776
Expenses 217 266 251 939 1,061*
After-Tax Profit 106 104 107 397 414
After-Tax Annualized
Return on Capital
9.6% 10.1%** 9.8% 9.1% 11.3%**

* Record level
** Restated
*** Regulatory Requirements Amended June 2001

Note: For member firms dealing with the public, the figures collected by the NYSE include revenue from all sources, including trading, interest and commission income. Since the NYSE member firm community is made up of corporations and partnerships, after-tax earnings are presented on a pro-forma basis assuming a regular corporate tax rate or credit of 35 percent.

The category of member firms dealing with the public generally excludes specialists, but includes firms that primarily trade for their own account, rather than doing a public business.

After-tax earnings for NYSE specialist units are based on an aggregate tax rate of 44 percent for federal and local taxes.