NYSE Member Firms Report Fourth-Quarter 2002 Results

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.