DOW JONES NEWSWIRES
SWS Group Inc.'s (SWS) fiscal fourth-quarter income dropped 57%
as investment losses and higher expenses dragged down profit.
The Southwestern bank, which didn't participate in the
government's TARP program, is expanding its investment-banking
business this summer after performing better in the financial
meltdown than many larger institutions.
For the quarter ended June 26, SWS's profit fell to $3.61
million, or 13 cents a share, from $8.37 million, or 31 cents a
share, a year earlier.
The latest period included 12 cents in charges tied to stock
holdings in NYSE Euronext (NYX) and U.S. Home Systems Inc. (USHS),
which the company disclosed earlier this month. Excluding that
charge, SWS had projected a profit of 12 cents to 14 cents.
Analysts polled by Thomson Reuters expected 20 cents a share.
Net revenue rose 13% to $99 million, the high end of the
company's view of $97 million to $99 million.
The company's clearing segment brought in $5.79 million in
revenue, down 29% from last year. The retail segment saw $27.6
million in revenue, down 12% from last year. And banking recorded
$20 million, down 36%.
Total non-interest expenses jumped 23% to $93.8 million.
SWS shares were inactive in late trading after closing the
regular session at $14.75. The stock price, which has been
volatile, is down more than 20% from its early-2009 peak.
-By Alexandra Scaggs and Lauren Pollock, Dow Jones Newswires;
212-416-2356; lauren.pollock@dowjones.com
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