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::
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) |
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.