With rates cut to near zero in response to the pandemic, the industry’s interest income has fallen by nearly half. In 2020, total interest income was $ 6.1 billion, up from $ 11.9 billion in 2019.
Yet in most other areas, industry revenues increased, or at least remained stable, more than offsetting this weakness, according to the report.
Total industry commission revenue nearly doubled from $ 2.1 billion in 2019 to over $ 4.0 billion last year.
Commission revenue (which excludes trailing commissions and business advisory commissions) increased from $ 9.1 billion in 2019 to $ 9.9 billion in 2020.
Overall investment banking revenues grew from $ 3.1 billion to $ 3.54 billion in 2020, as underwriting of debt and equity securities increased as part of an increase in investment banking activities. funding.
Equity subscription income fell from just under $ 1.1 billion in 2019 to almost $ 1.4 billion, and debt underwriting fell from just under $ 900 million to $ 1.1 billion in 2020.
Mutual fund income and fixed income trading income were both essentially flat in 2020.
On the cost side, operating expenses fell from $ 9.5 billion to $ 9.95 billion in 2020.
In the end, the vast majority of companies (83%) ended the year in the dark. The IIAC reported that only 29 of the 170 companies in the sector recorded losses for 2020.
In addition, employment in the industry fell from 43,356 before the pandemic to 44,529 by the end of the year.