KBW loss widens as weak trading hits commissions
Aug 2 (Reuters) - KBW Inc posted a bigger second-quarter loss as lower trading volumes for financial services stocks hurt commissions, eclipsing a steady rise in M&A advisory revenue.
Net loss for the quarter widened to $5.4 million, or 19 cents per share, from $4.2 million, or 14 cents per share, a year earlier.
Total revenue fell 13 percent to $55.4 million.
"While the timing of the recovery in our sector continues to be uncertain, this is the second consecutive quarter positively impacted by M&A and advisory transactions revenue," Chief Executive Tom Michaud said.
Investment banking revenue was up 66 percent to $25.3 million for the quarter, primarily due to higher M&A and advisory revenue.
Commissions revenue, however, was down 23 percent at $24.6 million.
KBW shares closed at $15.52 on Wednesday on the New York Stock Exchange.