$12B profit for Wall St. amid surge

ALBANY — Wall Street profits — just like the stock market — are off to a bullish start in 2017.

State Controller Thomas DiNapoli reported Monday that securities industry profits totaled $12.3 billion during the first half of the year, 33% higher than the $9.3 billion Wall Street firms earned during the same period in 2016.

DiNapoli’s report found that profits are being driven by higher revenues from trades and underwriting, which rose 29% from the same period a year ago on the strength of the financial markets. Revenue from wealth management was up 20%.

The soaring first half came after a 2016 in which Wall Street ended three years of declines and saw profits increase by 21% to $17.3 billion. Those profits were driven by cost-cutting efforts and lower settlement costs stemming from the financial crisis.

DiNapoli noted that the stock market has responded “positively” since President Trump took office in January.

“When Wall Street does well, state and city tax collections benefit,” DiNapoli said, while cautioning against further slashing of regulations.