Cowen sees YoY securities finance earnings boost 22 February 2021US Reporter: Alex Pugh
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Financial services firm Cowen’s 2020 institutional services earnings, which includes its securities finance business, saw a substantial year-on-year (YoY) increase to $189.97 million in 2020.
The firm’s full-year revenue from institutional services, which also include prime services, clearing, commission management and recapture, increased 29 per cent YoY from $135.18 million in 2019.
2020 earnings also overwrite the modest YoY decline in 2019 when full-year earnings dropped from $139.54 million in 2018.
Institutional services revenue for each quarter of 2020 outperformed the comparable period in 2019, peaking in Q4 when earnings hit $53.5 million last year, compared to $32.6 million in Q4 2019.
The strong results contributed to Cowen’s overall brokerage revenue boost which hit $652.65 million in 2020, representing a substantial increase from 2019’s $459.14 million figure.
Cowen declined to comment on the drivers behind the growth or offer insight on how big a role securities finance revenue played.
Elsewhere, Cowen appointed Joram Siegel as its first head of fixed income and outsourced trading last month, taking on the newly-created role as part of Cowen’s expansion of its outsourced trading team.
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