NYSE Member Firms Report Second-Quarter 2006 Results

New York Stock Exchange member firms that conduct business with the public reported second-quarter 2006 after-tax profits of $2.95 billion and revenues of $78.64 billion, compared to $1.13 billion in after-tax profits on revenues of $53.32 billion in the second-quarter of 2005.

For the second quarter of 2006, NYSE specialists reported after-tax profit of $26 million. During the same period last year, the specialists reported an after-tax profit of $33 million. Total specialist revenue in the second quarter of 2006 was $215 million, compared to $220 million in the second quarter of 2005. Comparative financial results are charted below:

NYSE Member Firms Dealing with the Public
($ in millions)

	2nd Qtr. 2006	2nd Qtr. 2005	1st Qtr. 2006
Revenues	$78,635*	$53,323	$77,563
Expenses	$74,100*	$51,583	$72,829
After-Tax Profit/(Loss)	$2,948	$1,131	$3,078
After-Tax Annualized Return on Capital	5.8%	2.5%	6.3%
Assets	$4,584,734*	$4,167,420	$4,504,236
Capital & Subordinations	$204,959*	$180,632	$199,194
Commission Revenues	$6,979	$6,118	$7,164
Number of Firms Reporting	213	225	216
Number of Profitable Firms	151	152	170
Aggregate Pre-Tax Earnings of Profitable Firms	$4,722	$3,077	$5,702
Number of Unprofitable Firms	62	73	46
Aggregate Pre-Tax Loss of Unprofitable Firms	($187)	($1,337)	($968)

NYSE Specialists
($ in millions)

	2nd Qtr. 2006	2nd Qtr. 2005	1st Qtr. 2006
Revenues	$215	$220	$577*
Expenses	$166	$161	$196
After-Tax Profit/(Loss)	$26	$33	$212*
After-Tax Annualized Return on Capital	2.5%	3.1%	19.9%

* Record level

Note: The increased specialists’ revenue and after-tax profit in the first quarter of 2006 resulted primarily from gains recorded in connection with the consummation of the merger between NYSE and Archipelago Holdings, Inc, on March 7, 2006, in which the specialists exchanged their NYSE memberships for shares of NYSE Group, Inc. common stock and cash.

For member firms dealing with the public, the figures collected by NYSE Regulation 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.

NYSE Member Firms Dealing with Public (Financial Summary) (pdf)

Statement of Income (Loss) and Expense Unconsolidated (pdf)

Statement of Financial Condition (pdf)