Wall Street firms will more than double profit this year to US$15 billion, as rising stocks and renewed confidence among ordinary investors fuel sales and fees, the Securities Industry Association said on Friday.

The higher pretax profit would make 2003 the third most profitable year for U.S. securities firms, the SIA said.

“The three-year downturn in securities industry performance appears to be over,” said SIA Chief Economist Frank Fernandez in an interview. “We are seeing broad-based top-line revenue growth, which we expect to be sustainable in the second half. The big story for us is that the retail investor has come back.”

The SIA said that second quarter profits were the highest in two years, and included improved results in underwriting and commission fees, in addition to fixed-income trading.

The U.S. industry’s profits for the second quarter are expected to reach US$3.9 billion, up from the first quarter’s US$3.5 billion, which was three times the US$1.1 billion earned in the fourth quarter of 2002.

The improved performance is the result of increased revenues from underwriting and commissions, as well as fixed-income trading.