Wall Street’s profits soar in H1, surpassing pre-pandemic levels – DiNapoli

Wall Street’s profits have experienced a remarkable surge in the first half of 2024, far exceeding the highs seen during the pandemic. According to a report by New York State Comptroller Thomas P. DiNapoli, the city’s securities industry raked in $23.2 billion in pretax profits during the first half of the year, a staggering 79.3 per cent increase compared to the same period in 2023.

This surge is primarily driven by a robust performance in securities trading, underwriting, and selling activities. If this momentum continues, annual profits for 2024 could surpass the record-breaking highs of $58.4 billion set in 2021.

While the pandemic years saw exceptional profits, DiNapoli noted that 2022 and 2023 were more in line with pre-pandemic averages. The recent surge in profits can be attributed in part to rising interest rates, which have boosted revenue from transactions. However, increased expenses due to higher interest rates have somewhat offset these gains.

Despite the positive outlook, DiNapoli cautioned that several domestic and international uncertainties could pose risks to the industry in the coming months. His office will continue to monitor these developments closely.

Overall, the strong performance of Wall Street’s securities industry is a positive sign for New York City’s economy. The increased profits are expected to boost tax revenues for both the state and city governments.

Attribution: Office of the New York State Comptroller