In the quarter ended March 31, nine of the 11 broker-dealers tracked by ThinkAdvisor reported increased earnings over the year-ago period. Client assets at all 11 BDs grew in the first quarter, despite a 4.3% drop in the S&P 500 and a 10.3% fall in the Nasdaq Composite Index during the period.
Of the two firms that reported a drop in earnings in the first quarter of 2025, one had a substantial decrease — tied to a $132 million payment it must make to cover damages and other costs incurred by investors who purchased structured notes from one of its advisors.
Across the broader financial sector, 74% of firms reporting first-quarter earnings through May 9 beat analysts’ estimates, according to FactSet Research Systems — including Bank of America and JPMorgan Chase. However, only 49% reported revenue that topped estimates in the first quarter.
“The economy is facing considerable turbulence (including geopolitics), with the potential positives of tax reform and deregulation, and the potential negatives of tariffs and ‘trade wars,’ ongoing sticky inflation, high fiscal deficits, and still rather high asset prices and volatility,” said JPMorgan Chair and CEO Jamie Dimon in a statement on April 11. “As always, we hope for the best, but prepare the firm for a wide range of scenarios.”
The second-quarter earnings season for the financial sector kicks off on July 11, when JPMorgan and Morgan Stanley will report their latest results.
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