12 Best & Worst Broker-Dealers: Q3 Earnings, 2022

This quarter, only three of the 12 broker-dealers tracked each quarter by ThinkAdvisor reported positive year-over year growth in their profits and earnings per share — down from four BDs in the second quarter of 2022.

In the third quarter, the S&P 500 declined 5.3 versus a drop of 16.1% in the second quarter of 2022. Financial services stocks in the index dropped 5.0% overall in Q3’22.

Many broker-dealers and a total of 34 financial services firms discussed tough economic conditions during their most recent earnings calls, with 54% of financial firms specifically using the term “recession,” according to FactSet research.

“Notwithstanding the challenging and volatile market environment during the fiscal year, we generated record results with annual net revenues and pretax income growth of 13%, which was driven by strong organic growth … the benefit of higher short-term interest rates and, most importantly, our advisors’ and associates’ unwavering focus on always putting their clients first,” said Raymond James Chair and CEO Paul Reilly in a statement on Oct. 26, when the firm released its most recent results.

As for trends in client assets, Raymond James reported a 7% year-over-year decrease and a 3% fall from the prior quarter to $1.04 trillion in Private Client Group assets under administration for the period ending Sept. 30.

Financial firms kick off the fourth quarter and year-end earnings season on Jan. 13, when JPMorgan and Wells Fargo plan to report their results.

(Image: Chris Nicholls/ALM)

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