New York Stock Exchange firms returned to profitability in the first quarter, the NYSE reported Tuesday.

NYSE firms that conduct business with the public (a group that excludes designated market makers) reported a first quarter after-tax profit of US$5.35 billion on revenues of US$39.1 billion. Revenues are predominantly derived from investment banking, trading, commissions, and interest.

This compares with US$14.55 billion in after-tax losses on revenues of US$49.42 billion in the first quarter of 2008; and US$7.3 billion in after-tax losses in the fourth quarter of 2008 on revenues of just US$23.5 billion.

Firms’ expenses are down sharply to just US$30.9 billion in the first quarter this year, down sharply from US$71.8 billion in the same quarter last year, and even down from the fourth quarter’s US$34.7 billion.

The number of profitable firms is up to 134 from 118 in the first quarter of 2008 and 99 in the fourth quarter.

IE