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NEW YORK STOCK EXCHANGE MEMBER FIRMS REPORT PROFITS IN THIRD QUARTER 1991

            NEW YORK STOCK EXCHANGE MEMBER FIRMS REPORT
                  PROFITS IN THIRD QUARTER 1991
    NEW YORK, Dec. 30 /PRNewswire/ --  New York Stock Exchange member firms that do business with the public reported an after-tax profit of $842 million in third quarter 1991, compared with an after-tax loss of $124 million a year ago.  In second quarter 1991 the firms reported an after-tax profit of $859 million.
    Higher Revenues Reported
    Revenues in the 1991 third quarter rose to $15.249 billion, up 16.5 percent from third quarter 1990's revenues of $13.088 billion.  Second quarter 1991's revenues were $14.850 billion.
    Third quarter 1991's after-tax profit represented an 8.9 percent annual return on the member firms' average net worth of $37.952 billion during the period.  In third quarter 1990, after-tax results represented a 1.4 percent annual loss on the member firms' average net worth of $36.460 billion during the period.  Second quarter 1991 produced a 9.4 percent annual return on average net worth of $36.529 billion.
    Expenses for third quarter 1991 increased 5.3 percent to $13.974 billion, from $13.276 billion in the same quarter in 1990.  Second quarter 1991's expenses were $13.548 billion.
    The NYSE said about 74 percent of the 322 firms reporting for the quarter were profitable.  The 238 profitable firms reported aggregate pre-tax earnings of $1.430 billion; the 84 unprofitable firms reported an aggregate loss of $155 million before taxes.
    The figures collected by the NYSE include revenue from all sources, including trading, interest and commission income.
    Since the NYSE member firm community is made up of corporations and partnerships, after-tax earnings are presented on a pro-forma basis assuming a regular corporate tax rate or credit of 34 percent.
    Commission revenue amounted to 16.1 percent of total member firm revenue of $15.249 billion in third quarter 1991, down from 17.5 percent in third quarter 1990 and 17.3 percent in second quarter 1991.
    Record Third Quarter Assets
    The NYSE also reported that during third quarter 1991, member firms' assets -- which include cash, receivables, securities and property -- rose 14.3 percent from the same quarter last year to a record $631.324 billion.  Third quarter 1990 assets were $552.237 billion; second quarter 1991's assets were $597.202 billion, the previous record.
    Capital -- ownership equity and subordinated liabilities -- rose 8.4 percent from a year ago to $39.124 billion.  Third quarter 1990's level was $36.078 billion.  Second quarter 1991's capital was $36.779 billion.
    Specialists' Earnings Rise
    For third quarter 1991, NYSE specialists reported an after-tax profit of $14 million, compared with a loss of $19 million in the same period of 1990, and a profit of $14 million in second quarter 1991.
    Third quarter 1991 revenues were $93 million, compared with $32 million in third quarter 1990, and $96 million in second quarter 1991.
    After-tax annualized return on specialists' capital was 7.1 percent in third quarter 1991, compared to a 10.8 percent loss for the same period in 1990.  The second quarter 1991 return was 7.3 percent.
    After-tax earnings for NYSE specialist units are based on an aggregate tax rate of 41 percent for federal and local taxes.
                NYSE MEMBER FIRMS DEALING WITH THE PUBLIC (A)
                         Quarterly Income Comparison
                             (Dollars in millions)
                                       All Firms
           Period                 Count      Before Tax       After Tax
    Third Quarter 1991             322         $1,275          $   842
    Third Quarter 1990             334         $ (188)         $  (124)
    First Nine Months 1991         328         $4,028          $ 2,658
    First Nine Months 1990         352         $   34          $    23
                                     Profitable Firms
           Period                  Count      Before Tax       After Tax
    Third Quarter 1991              238         $1,430          $   944
    Third Quarter 1990              161         $  445          $   294
    First Nine Months 1991          268         $4,126          $ 2,723
    First Nine Months 1990          183         $1,277          $   843
                                     Unprofitable Firms
           Period                  Count      Before Tax       After Tax
    Third Quarter 1991               84         $ (155)         $  (102)
    Third Quarter 1990              173         $ (633)         $  (418)
    First Nine Months 1991           60         $ ( 98)         $  ( 65)
    First Nine Months 1990          169        $(1,243)         $  (820)
    (A) Generally excludes specialists, but includes firms that primarily trade for their own account, rather than doing a public business.
                 NEW YORK STOCK EXCHANGE SPECIALISTS BUSINESS
               Comparative Statement of Income -- 1991 and 1990
                           (Dollars in Millions)
                                  Third Quarter          Nine Months
                                  1991     1990        1991        1990
    Revenues                      $ 93     $ 32        $321        $199
    Expenses                        70       65         213         208
    Income Before Taxes             23      (33)        108          (9)
    Provision for Taxes (B)          9      (14)         44          (4)
    Net Profit                    $ 14     $(19)       $ 64        $ (5)
    (B) Average tax rate in the third quarter 1991 was 41 percent.
    -0-        12/30/91
    /CONTACT:  Ray Pellecchia, 212-656-2065, or Catherine Maroney, 212-656-8685, both of New York Stock Exchange/ CO:  New York Stock Exchange ST:  New York IN:  FIN SU: SM -- NY034 -- 5717 12/30/91 15:55 EST
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No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1991 Gale, Cengage Learning. All rights reserved.

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Date:Dec 30, 1991
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