Best & Worst Broker-Dealers: Q4 Earnings, 2023

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Six large broker-dealers reported a drop in earnings in the final quarter of 2023, with five posting positive results after adjustments.

Some firms’ fourth-quarter and annual results were affected by fees imposed on institutions by the Federal Deposit Insurance Corp. following the regional banking crisis last year.

These special assessments and other one-time payments, or gains in one case, led many broker-dealers to report adjusted earnings for Q4 2023. Some firms reported both adjusted net income (or earnings) and earnings per share, but several BDs just announced one adjusted figure. 

Two firms had significant losses: Citigroup, now in cost-cutting mode and laying off 20,000 staff members; and UBS, digesting Credit Suisse — which it bought for $3.2 billion a year ago.

Related: Best & Worst Broker-Dealers: Q3 Earnings, 2023

“Wealth revenues were down in 2023 and we fully recognize that this business isn’t where it needs to be,” CEO Jane Fraser said in a statement last month. 

As for UBS, it expects to wrap up its integration of Credit Suisse by the end of 2026 and aims for its Global Wealth Management unit to top $5 trillion of invested assets over the next five years — or about $100 billion of net new assets each year through 2025 and then around $200 billion annually by 2028, according to its 2023 annual report. 

Raymond James said its U.S.-based Private Client Group posted a yearly growth rate of nearly 8% for net new assets, based on its latest results. 

Financial firms kick off the first-quarter earnings season of 2024 on April 12, when Bank of America, Citigroup, JPMorgan and Wells Fargo plan to report their latest results.

(Credit: Chris Nicholls/ALM)

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