Table 2 HISTORICAL CONSOLIDATED REVENUES AND EXPENSES OF BROKER-DEALERS WITH SECURITIES RELATED REVENUES OF $500,000 OR MORE A. Assets Table 3 HISTORICAL BALANCE SHEET FOR BROKER-DEALERS WITH 7. Total assets $32,750 $25,189 $23.787 $30,826 $48,075 $51,747 $59,315 $76,438 $111,281 B. Liabilities 8. Money borrowed.. 9. Payables to other broker-dealers and non-customers $14,398 $9,878 $10,421 $9,488 $11,802 $26.503 $27,565 $34,267 $ 42,969 4,370 2,936 2,919 3,568 4,785 5,460 5,481 6,975 12,650 8.326 14,486 22,007 16. Total liabilities and capital $32,750 $25,189 $23,787 $30.826 $48,075 $51,747 $59,315 $76.438 $111,281 'The balance sheet for 1977 is not comparable with previous years' data because of changes in the reporting form. Sources: Form X-17A-10 and FOCUS Reports Securities Industry Dollar In 1980 Data for carrying/clearing firms only are presented here to allow for more detail, as reporting requirements for introducing and carrying/clearing firms differ and data aggregation of these two types of firms necessarily results in loss of detail. The 86 percent of industry revenues earned by carrying/clearing firms in 1980 suggests that this group is a suitable proxy for the industry. Securities commissions accounted for 33.3 cents of each revenue dollar earned in 1980. Trading gains and margin interest contributed 21.9 cents and 12.1 cents, respectively. Together these three items accounted for 67.3 cents of each revenue dollar eamed, a slight decline from the 1979 level of 67.7 cents. In terms of dollars, these three items accounted for $11,973 million of the $17,783 million of total revenues eamed by carrying/clearing firms. Total expenses consumed 85.2 cents of every revenue dollar generated, a decrease from 89.0 cents in 1979, as the industry's pre-tax profit margin increased from 11.0 cents per revenue dollar to 14.8 cents. Interest expenses accounted for 21.1 cents in 1980, compared to 24.0 cents in 1979. Registered representatives' compensation amounted to 19.7 cents, and clerical and administrative employees' expenses consumed 15.7 cents of each revenue dollar. These two employee-related items comprised 35.4 cents of the revenue dollar, a decrease of one cent from the 1979 level. In dollar terms, registered representatives' compensation rose 58% to $3,506 million, and clerical and administrative employees' expenses rose 35 percent to $2,792 million in 1980. Together they consumed $6,298 million of the $17,783 million in total revenues. The "all other expense" category, which includes promotional costs, regulatory fees and expenses and miscellaneous items, accounted for 12.3 cents of the revenue dollar, compared to 11.4 cents in 1979. |