In line with 2007 public company annual reports, U.S. broker dealers reported full-year financial results well below 2006 levels. While total, or gross, revenues reached a record high $474.2 billion (up 8.6 percent from 2006) total expenses grew even faster, up 17.3 percent to a record high $473.4 billion. Net revenues (total revenues less interest expense) fell 7.7 percent to $204.0 billion and pre-tax profits fell 97.7 percent to $777.4 million compared to the $33.1 billion earned in 2006.

Credits

SIFMA Research

• Managing Director, Research: Kyle Brandon
• Research Analyst: Paul Rainy