The U.S. Securities Industry Association released industry profit reports for 2005 and data for the first quarter of 2006, which suggested the new year started strongly.

The SIA said that results for NASD-reporting firms in the first quarter were impressive. Profits for these firms were US$3.1 billion, a jump of 62.0% over the immediately preceding quarter and 73.8% above the same year-earlier period, and the best quarterly result in more than five years.

“For NASD-reporting firms, the first quarter of 2006 was exceptionally strong – the best quarterly result in five years,” said Frank Fernandez, SIA’s chief economist. “Although final figures for NYSE-reporting firms for the same period have not yet been released, it is clear based on public filings that the securities industry is off to a strong start in 2006 and prospects for industry performance this year looks promising.”

For the full year 2005, securities industry profits were US$17.6 billion, 15.2% below the US$20.7 billion earned in 2004, but still the fifth highest on record, the industry association said. Industry profits combine the results for NYSE-reporting firms and NASD-reporting firms to find the total for all firms doing a public business in the US.

NASD-reporting firms alone earned US$8.1 billion in profits in 2005, a 15.5% increase above the US$7 billion recorded in 2004, but still below the record results of US$10.6 billion in 2000. The SIA said that US$1.9 billion of the NASD firm’s 2005 profits came in the fourth quarter, a 13.9% drop from the previous quarter.