13 Best & Worst Broker-Dealers: Q2 Earnings, 2013

Posted on December 4th, 2013 at 3:16 PM


According to ThinkAdvisor, some large organizations have maintained their momentum, while some smaller BDs showed both weaker than expected and surprisingly strong results. Here are 13 companies, ranked in terms of how they out- or underperformed their broker-dealer rivals.

13th Place


Investors Capital saw its profits fall from $0.04 per share, in Q2 2012 to a net loss $0.05 per share, in Q2 2013, for a total drop of $622,000 over the second quarter last year. Total revenue, though, grew 11% to $23.08 million vs. $20.8 million in the year-ago period.  Total expenses, however, increased $3.40 million or 16.7% to $23.75 million.

12th Place


Ladenburg Thalmann Financial Services reported a net loss of $5.5 million or $(0.04) per share compared with a net loss of $5 million, or $(0.03) per share in the comparable 2012 period, for a total drop of $500,000. Its second-quarter 2013 revenues were $193.9 million, a 19% increase from revenues of $163.4 million in the second quarter of 2012.

11th Place


Raymond James reported net income of $84 million, or $0.59 per share, up 7% from the year-ago quarter and 5% from the preceding period.

It also had net revenues of $1.11 billion in the most recent quarter, up 2% from the year-ago quarter but down 3% from the preceding quarter.


10th Place


Stifel Financial had a 13% jump in its GAAP net income for the most-recent period: $29.4 million, or $0.40 per share, vs. $26.1 million, or $0.42 per share, a year ago, which attributes to the record revenues in Global Wealth Management unit and Private Client Group.

9th Place


LPL Financial boosted its profits 14% in the second quarter: The independent broker-dealer said its net income was $45.1 million, or $0.42 a share, up from $39.5 million, or $0.35 a share, last year. Total revenue grew 12% from last year to $1.02 billion, with recurring revenue representing the majority — nearly 66% — of net revenue in the second quarter.

8th Place


Wells Fargo, currently the biggest U.S. mortgage lender, saw its second-quarter profit grow 19.5%. Net income rose to $5.52 billion, or $0.98, from $4.62 billion, or $0.82 per share. Revenue, though, expanded just 0.5% to $21.4 billion from $21.3 billion.

7th Place


Citigroup reported a stronger-than-expected 26% rise in adjusted quarterly profits thanks to stronger home prices, which reduced mortgage losses, and better trading revenue. Adjusted net income rose to $3.89 billion, or $1.25 per share, in the second quarter, from $3.08 billion, or $1 per share, a year earlier. Adjusted revenue jumped 8% to $20 billion.

6th Place


JPMorgan Chase says its profits rose about 31% on strong results in investment banking business, credit card operations and mortgage lending. Net earnings were $6.496 billion, or $1.60 a share, on revenue of nearly $26 billion vs. earnings of $4.96 billion, or $1.21 per share, on sales of about $22 billion a year earlier.

5th Place


The second-quarter profit improved nearly 32% to 690 million Swiss francs ($742 million), or 0.18 Swiss francs per share, from 524 million Swiss francs ($563 million), or 0.14 Swiss francs per share, a year ago. Sales across the company grew 15% year over year to 7.4 billion Swiss francs ($8 billion), though they dropped 5% from the earlier quarter.

4th Place


Morgan Stanley beat analysts’ expectations with a 42% jump in net income attributable to common shareholders to $802 million, or $0.41 per share, from $564 million, or $0.29 per share, in the year-ago period. Total revenue jumped 22% from last year and 4% from the previous quarter to $8.50 billion, while expenses increased roughly 12% year over year and 2% quarter over quarter to $6.73 billion.

3rd Place


The second-quarter net income ofAmeriprise Financial rose 44% to $322 million, or $1.54 per share, vs. $224 million, or $0.99 per diluted share, a year ago. Adjusted earnings were $352 million, or $1.69 per share, compared with $254 million, or $1.13 per share, a year ago. Operating net revenues grew 9% to $2.75 billion, which is primarily driven by robust client net inflows, increased client activity and market appreciation, partially offset by the decline in net investment income from low interest rates.

2nd Place


Bank of America’s second-quarter net income rose 63% to $4.0 billion, or $0.32 per share, from $2.5 billion, or $0.19 per share, a year ago, which beat analysts’ estimates. Revenue improved 3% to $22.9 billion from $22.2 billion last year.

1st Place


Goldman Sachs said its second-quarterprofits rose 101% over last year’s results. The investment bank earned $1.93 billion (before dividends) for the period ending June 30, or $3.70 a share, vs. $962 million, or $1.78 a year earlier. These results beat estimates, as revenue climbed 30% to $8.6 billion from $6.6 billion a year ago.

Related Attorneys: James J. Eccleston


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