For second-quarter 2002, NYSE specialists reported after-tax profits of $85 million, a 21.3 percent decline from the year-ago quarter's $108 million. Total specialist revenue dropped by 14.9 percent in second-quarter 2002, to $384 million, from $451 million in second-quarter 2001. In the first six months of 2002, specialists reported after-tax profits of $184 million on revenues of $798 million, compared to after tax-profits of $253 million on revenues of $975 million in the first six months of 2001. Comparative financial results are charted below:
| 2th Qtr. 2002 | 2th Qtr.2001 | 1st Qtr. 2002 | Y-T-D 2002 | Y-T-D 2001 | |
| Revenues | $ 39,005 | $ 50,798 | $ 38,564 | $ 77,551 | $ 108,858 |
| Expenses | 36,994 | 47,979 | 35,544 | 72,538 | 101,900 |
| After-Tax Profit/Loss | 1,307 | 1,832 | 1,951 | 3,258 | 4,522 |
| After-Tax
Annualized Return on Capital & Subordinations |
3.5% | 5.0% | 5.2% | 4.4% | 6.3% |
| Assets** | 2,755,231 | 2,562,618 | 2,784,150* | 2,755,231 | 2,562,618 |
| Capital & Subordinations | 147,925 | 146,179 | 149,677 | 147,925 | 146,179 |
| Commission Revenues | 7,109 | 6,668 | 7,041 | 14,150 | 14,153 |
| Number of Firms Reporting | 248 | 258 | 254 | 257 | 267 |
| Number of Profitable Firms | 169 | 171 | 181 | 181 | 196 |
| Aggregate
Pre-Tax Earnings of Profitable Firms |
3,494 | 3,482 | 3,712 | 7,206 | 8,163 |
| Number of Unprofitable Firms | 79 | 87 | 73 | 76 | 71 |
| Aggregate
Pre-Tax Loss of Unprofitable Firms |
(1,482) | (663) | (710) | (2,192) | (1,205) |
| 2th Qtr. 2002 | 2th Qtr. 2001 | 1st Qtr. 2002 | Y-T-D 2002 | Y-T-D 2001 | |
| Revenues | $ 384 | $ 451 | $ 414 | $ 798 | $ 975 |
| Expenses | 233 | 267 | 238*** | 471 | 540 |
| After-Tax Profit | 85 | 108 | 99*** | 184 | 253 |
| After-Tax
Annualized Return on Capital |
7.9% | 11.9%*** | 9.2%*** | 8.5% | 15.0%*** |
* Record level
** Regulatory Requirements Amended June 2001
*** Restated
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.
