Although the securities industry contributed $5.1 billion to New York City’s budget in fiscal year 2024 via business and personal income taxes, it was down 5.9 percent from fiscal year 2023. This is according to a report issued by New York state comptroller Thomas DiNapoli about the securities industry in New York City.
According to DiNapoli, after clocking record performance during COVID-19, securities industry profits have returned to levels more typical prior to the pandemic. Profits in 2022 ($25.8 billion) and in 2023 ($26.3 billion) were in line with the five-year pre-pandemic average, as the Federal Reserve increased interest rates to cool inflation.
These higher rates caused financial firms’ interest liability on outstanding debt to rise substantially, as borrowing costs were elevated.
For 2024, the city expects industry profits to decline slightly from the past two years, forecasting a drop of 5.7 percent in the most recent financial plan. However, i
