Broker-dealer earnings in the third quarter rose as much as 74% from a year ago, with nearly all firms reporting Q3 earnings growth near or higher than 19%. One BD did report a small loss, tied to one-time acquisition expenses, but its adjusted earnings improved by 25%.
"Over the past quarter, we continued to make progress against our key priorities, while delivering strong business results and record adjusted earnings per share," said LPL CEO Rich Steinmeier, in a statement when the firm released its latest results. "We continue to seek opportunities to improve our advisors' efficacy in the market."
According to research provider FactSet, the financial sector's Q3 increase in net profit margins was 20.2% versus 17.0% last year. The group's actual earnings were 8.8% higher than estimates for the quarter. Morgan Stanley, for instance, had earnings of $2.80 versus an estimated $2.10.
As to what BDs and other firms can expect in the coming months, JPMorgan CEO Jamie Dimon says the U.S. economy has "remained resilient." Still, he cautions, "there continues to be a heightened degree of uncertainty stemming from complex geopolitical conditions, tariffs and trade uncertainty, elevated asset prices and the risk of sticky inflation."
In terms of stock performance, the NYSE Arca Securities Broker/Dealer Index is up 21.5% so far this year as of Wednesday. It's dropped 4.4% in the past month, however.
See the accompanying gallery for 11 broker-dealers' most recent financial results.
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