KBW, an investment bank, has reported that its GAAP net loss was $22.1 million, or $0.71 per diluted share, for the fourth quarter ended December 31, 2008, compared to GAAP net income of $3.6 million, or $0.11 per diluted share, for the corresponding quarter in 2007.
Total revenues for the fourth quarter of 2008 were $42.56 million, as compared to $105.36 earned during the same quarter in 2007.
For the year ended December 31, 2008, the company has reported a GAAP net loss of $62.3 million, or $2.02 per diluted share, compared to $27.3 million, or $0.86 per diluted share, for the year ended December 31, 2007.
Total revenues for the year 2008 decreased to $242.22 million from $427.53 million for the year ended December 31, 2007.
John Duffy, chairman and CEO of KBW, said: The market environment deteriorated materially in the fourth quarter having a negative impact upon all of our businesses and investments. The continued deterioration in the credit and equity markets resulted in the reduction in the carrying value of financial assets that we held on our balance sheet.
The carrying value of our financial assets was reflected at fair value and the dislocation that occurred in the markets in the quarter resulted in additional significant negative valuation adjustments. We continue to have very low balance sheet leverage and a strong capital base.
