Stockbrokers' Profits Increased by 85% in 2007 Q3

The total value of transactions and overall profitability of the securities industry increased significantly in the third quarter of 2007, the latest issue of the SFC’s Financial Review of the Securities Industry shows.

The total value of transactions of all categories of stock exchange participant brokers continued to record growth in the third quarter of 2007, with increases over the previous quarter ranging from 41% to 52%.

The overall net profit of all stock exchange participant brokers was $12.08 billion, 85% higher than the previous quarter. The net profits of Category A, B and C brokers were $4.5 billion (+114% from previous quarter), $5.2 billion (+78%) and $2.3 billion (+58%) respectively.

The report also provides an analysis of the financial position of all securities dealers and securities margin financiers, which include exchange participants and non-exchange participants. Their combined net profit increased significantly by 54% to $20.8 billion mainly due to a 41% increase in net securities commission income.

The Financial Review of the Securities Industry for July – September 2007 is attached.

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