The U.S. Securities Industry Association reports that brokerage profits fell in the third quarter.

The SIA says that NYSE member-firms posted third-quarter pre-tax profits of US$3 billion, down 45% from the second quarter’s $5.4 billion.

According to the SIA’s Research Report, an overall decline in trading gains at the firms was the primary cause for the drop.

Total revenues were US$33.7 billion, down from the second quarter’s US$39.5 billion. Mutual fund sales revenue and asset management fees showed stronger results, while revenues from underwriting activities and brokerage commissions declined.

SIA chief economist Frank Fernandez points out that, although the results were well below earlier expectations, the third quarter still exceeded profits registered in six of the past eight quarters. And, as a result of continued cost cutting and revenue gains in earlier quarters, profits in 2003 are expected to exceed US$16.3 billion, which would be the second highest on record.

Profits for the industry in the first nine months of 2003 reached $11.96 billion, more than double the results for the comparable period last year.