(Reuters) -Wall Street is on track for another bumper year, with its profit from securities trading and underwriting expected to exceed $60 billion, the Office of the New York State Comptroller said in a report.
The industry's profitability was driven by higher supervisory fees and a jump in underwriting activities, while also benefiting from a rise in interest income amid elevated rates, according to the report.
State Comptroller Thomas DiNapoli expects the growth rate in profit and bonuses in the sector
to help generate higher-than-expected city and state tax collections.
The industry's soaring fortunes continue from the prior year, when profits soared 90% to $49.9 billion, the fourth-highest level on record, despite concerns over inflation, interest rates and tariffs.
A multi-year rally in various asset classes, including equities and cryptocurrencies, has led to heightened trading and underwriting activity in a number of securities, boosting income at financial firms.
The industry's profit of $30.4 billion for the first half of 2025 was at a much quicker pace, compared with the year-earlier period, according to the report.
"The securities industry has not only weathered these challenges, but has shown robust performance growth in 2025," the report said.
Securities trading and account supervision helped financial firms to capitalize on the market uncertainty as investors made changes to their portfolios. Volatility in the markets often leads to higher activity, which bodes well for trading firms.
The Cboe Daily Volatility index, which measures equity market risk, saw an average daily close of 19.3 in 2025 through September, as per the report. That level was well above the 2023 and 2024 numbers.
Activity in cryptocurrency and bond issuance also picked up in 2025, it added.
(Reporting by Pritam Biswas in Bengaluru; Editing by Anil D'Silva)
