SWS Group posts results 31 August 2010Dallas Reporter: Ben Wilkie
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SWS Group has announced its fourth quarter and fiscal 2010 results. It posted a net loss of USD305,000 for its fourth quarter, and a net loss of USD2.9 million for the financial year.
Revenues fell in both reports compared to the same periods last year.
Net revenues were down USD14.7 million in fiscal 2010 from fiscal 2009, driven in large part by a USD21.5 million decrease in commissions and a USD7.0 million decline in net interest. The decrease in commission revenue was primarily due to lower taxable fixed income commissions in the institutional segment as a result of tighter spreads and reduced market volatility.
The decrease in net interest resulted from lower spreads in the institutional segment's securities lending business and reduced investment in tax-exempt auction rate bonds in the municipal business.
"Our brokerage segments performed well and all showed improved results from the third quarter in spite of very difficult economic conditions," said James H. Ross, chief executive officer of SWS Group, Inc. "Our banking segment, while significantly improved from the third quarter, continued to address declines in commercial real estate values."
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