SWS Sees 25% Lift in 2Q

Dallas-based financial services firm SWS Group Inc., parent of Southwest Securities Inc., saw its net income climb 25% for the second quarter of its fiscal year, which ended Dec. 31. Officials said a large part of the growth come through the acquisition of brokerage firm M.L. Stern & Co.

Net revenue for the quarter was $100.2 million, up $27.4 million from the same period last year. The increase was led by growth in commissions and gains on principal transactions.

The company credited the April acquisition of M.L. Stern of Beverly Hills, Calif., with helping to increase commissions to its institutional brokerage business.

“Many times our various business units respond differently to market volatility, changes in interest rates, and economic conditions,” SWS president and chief executive officer Donald Hultgren said in a written statement. “The recent economic and interest rate environment has created opportunities for our fixed-income businesses. In addition, our overall performance has been enhanced on the retail side by the acquisition of M.L. Stern, an organization with strong fixed-income capabilities.”

In addition to Southwest Securities, SWS Group includes SWS Financial Services Inc.

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