Brokerage Houses Score Big Gains as Markets Soar
E. F. Hutton Group, Paine Webber Group and Phibro-Salomon reported sharply higher profits for the first three months of the year, bolstered by surging stock and bond markets.
Phibro-Salomon amassed record quarterly net income of $190 million. That was up from $141 million in the corresponding three months last year, which had included $18 million in one-time gains.
Revenue grew to $7.1 billion from $6.2 billion.
Phibro-Salomon, with headquarters in New York, is the financial holding company for the Wall Street powerhouse Salomon Bros., which provides a range of financial services, such as investment banking and securities trading.
John H. Gutfreund, Phibro-Salomon’s chairman and chief executive, said: “The strong performance in this first quarter resulted from our strategy of positioning the company to benefit from the growth of the capital markets.”
E. F. Hutton, meanwhile, said its net income came to $40.1 million on record quarterly revenue of $895 million during the first quarter. Hutton Group, also based in New York, is a corporate parent with subsidiaries operating in investment banking, securities and commodities trading and insurance.
Hutton Chairman and Chief Executive Robert Fomon said the latest earnings were the highest in 11 quarters and the third highest in the company’s history.
In last year’s first quarter, Hutton’s profit totaled $24.1 million on revenue of $759 million.
Paine Webber said its net earnings grew to $29.2 million on revenue of $594 million in the three months ended March 31, which is the company’s second quarter. A year earlier, earnings amounted to $8.5 million and revenue was $438.9 million.
Paine Webber, with principal offices in New York, is a holding company that together with its subsidiaries forms one of the largest investment service firms.