Retail Brokerage and Distribution Report Q1 2023—Profitability Update

The Full-Service Brokerage Channel Proves Immune to the Pandemic

In our previous profitability report in 2015, we witnessed growth in both revenue and expenses that yielded a modest, albeit positive, profit margin in the industry, led by the Big Six banks. After the initial downturn at the start of the pandemic, the industry witnessed exceptional growth in assets and new clients within the full-service brokerage channel. This updated analysis highlights the impact the Big Six and Non-Big Six faced in maximizing profits during this unprecedented period. It also showcases the resiliency of these firms to improve profit margins in a channel with a high level of expenses, in a time of dynamic change.