Updated with correction.
Wall Street produced $13 billion in profits for the first half of 2023, down 4.3% from the year-earlier period, New York state Comptroller Thomas P. DiNapoli announced Oct. 12.
"The securities industry's two years of record profits helped stabilize New York's economy in difficult times," Mr. DiNapoli said in a news release referring to full-year results for 2020 and 2021.
"Since then, the industry has maintained profits consistent with pre-pandemic levels," he said. "But these are volatile times in America and globally, and Wall Street's relatively stable profits and employment levels could change quickly. Further declines could weaken New York's tax revenue from the securities industry and have repercussions for our state and city budgets."
DiNapoli in issuing the regular first-half report noted his analysis "is traditionally measured by the pretax profits of the broker-dealer operations of New York Stock Exchange member firms," the news release said. There are now 132 member firms, down from more than 200 in 2007 before the global financial crisis.
In 2022, full-year Wall Street profits of $25.8 billion fell 55.8% compared with full-year 2021. "If the rate of decline in profits in the first half of 2023 holds steady for the rest of the year, annual profits could fall to $24.7 billion," the news release said. "However, economic uncertainties could cause profits to decline even more in the second half."
Securities industry employment in New York was 190,800 last year, up 10,500 from 2021. "Preliminary data for the current year to date shows the industry is on pace to add an additional 4,300 jobs in 2023," the report said.
The average annual salary including bonuses on Wall Street was $497,420 last year, down an inflation-adjusted 9.2% from the $548,040 in 2021, which was a record, the report said.