Penson files figures
09 March 2011 New York
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Penson Worldwide Inc. has filed its annual report for 2010.
For the year ended December 31, 2010, the firm generated net revenues of $288.3 million. Clearing and commission fees, net interest income, technology revenues and other revenues comprised 53 per cent, 24 per cent, seven per cent and 16 per cent of net revenues, respectively. Approximately 40 per cent of securities correspondents generate both clearing and technology revenue. In addition, some customers generate revenue from both securities and futures trading.
As an integral part of the securities clearing relationships, Penson maintains a significant margin lending business with correspondents and their customers. Under these margin lending arrangements, Penson extends credit to its correspondents and their customers so that they may purchase securities on margin.
As is typical in margin lending arrangements, Penson extends credit for a portion of the purchase price of the securities, which is collateralised by existing securities and cash in the accounts of the correspondents and their customers. Penson also earns interest income from both securities and futures operations by investing customers’ cash and it engages in securities lending activities as a means of financing the business and generating additional interest income. Over the past year, net interest revenues increased from $65.9 million in 2009 to $68.5 million in 2010, representing approximately 23 per cent and 24 per cent of aggregate net revenues, respectively.
For the year ended December 31, 2010, the firm generated net revenues of $288.3 million. Clearing and commission fees, net interest income, technology revenues and other revenues comprised 53 per cent, 24 per cent, seven per cent and 16 per cent of net revenues, respectively. Approximately 40 per cent of securities correspondents generate both clearing and technology revenue. In addition, some customers generate revenue from both securities and futures trading.
As an integral part of the securities clearing relationships, Penson maintains a significant margin lending business with correspondents and their customers. Under these margin lending arrangements, Penson extends credit to its correspondents and their customers so that they may purchase securities on margin.
As is typical in margin lending arrangements, Penson extends credit for a portion of the purchase price of the securities, which is collateralised by existing securities and cash in the accounts of the correspondents and their customers. Penson also earns interest income from both securities and futures operations by investing customers’ cash and it engages in securities lending activities as a means of financing the business and generating additional interest income. Over the past year, net interest revenues increased from $65.9 million in 2009 to $68.5 million in 2010, representing approximately 23 per cent and 24 per cent of aggregate net revenues, respectively.
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