Despite lower expenses and higher revenue in 2018, Finra posted a net loss of $68.7 million for the year, according to news reports.
Net revenue rose from $919 million in 2017 to $946.1 million in 2018, InvestmentNews writes, citing the industry self-regulator’s recently released annual report.
Expenses, meanwhile, fell from $992.3 million in 2017 to $975.3 million in 2018, according to the publication. But Finra’s investment portfolio posted a $51.1 million drop, which combined with the loss from operations and “other incremental input factors” added up to a $68.7 million net loss, InvestmentNews writes.
The decline in the investment portfolio represented a 2.3% drop for 2018 compared to an increase of 8.8% the year prior, according to the publication.
What’s more, as the regulator first said in its budget summary earlier, its expenses are projected to exceed operating revenue in 2019, Finra chief executive Robert Cook reiterated in a statement accompanying the annual report cited by InvestmentNews.
Finra also disclosed that four of its executives earned over $1 million in 2018, according to the publication.
Cook earned $2.9 million, while Todd Diganci, executive vice president and chief financial and administrative officer, earned $1.4 million, InvestmentNews writes, citing the regulator’s report.
Steven Randich, Finra’s executive vice president and chief information officer, earned $1.3 million, and Robert Colby, the regulator’s executive vice president and chief legal officer, took home $1.1 million, according to the report cited by the publication.