Direct Answer
109 SEC filers are classified under the Standard Industrial Classification codes that describe the diversified financial services industry, and their latest annual reports show $469.1 billion of combined revenue and a median operating margin of -45.7%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics.
Industry Overview
Diversified financial services firms combine lending, advice, trading, insurance and payments in one group, spreading revenue sources. Results reflect the mix of businesses and how well capital is allocated. The first numbers to compare across companies here are revenue by segment, return on equity and capital ratios.
Key Industry Metrics
- Revenue by segment: Income broken out by lending, advice, trading, insurance and payments. It shows which businesses carry results and how cyclical the mix is.
- Return on equity: Net income as a share of shareholders' equity. It blends several businesses, so compare it with the cost of equity and with each segment.
- Capital ratios: Regulatory capital relative to risk, at group level. Strong readings allow dividends and buybacks, and thin ones restrict capital return.
- Expense ratio: Costs relative to revenue, or to premiums for insurance parts. A falling ratio shows scale benefits, while a rising one flags investment or weaker control.
- Credit quality: Loan losses, overdue balances and reserves across the group. They show how well underwriting holds up, and lead future provisions.
Primary Macro Drivers
- Interest rates: Rates affect lending margins and fee-based businesses, so rate changes flow through several segments and show up in return on equity.
- Market activity: Trading and advisory revenue follow market volumes and conditions, so activity levels move revenue by segment.
- Credit cycle: Loan losses and provisions move with the economy across lending lines, affecting credit quality and capital ratios.
- Regulation: Capital, liquidity and conduct rules apply across businesses, limiting growth and payouts and adding cost.
Major Risks
- Complexity: Many different businesses are hard to monitor and manage, and weak units can be masked by strong ones. Watch segment disclosures and capital allocation.
- Credit and market risk: Shocks to funding or credit markets can hit lending and trading at once. Watch credit quality, revenue by segment and capital ratios.
- Regulatory capital: Higher requirements can limit growth, dividends and buybacks. Watch capital ratios and regulatory announcements.
- Segment concentration: If one segment provides most earnings, the group follows that cycle. Compare revenue by segment over several years.
Industry Characteristics
| Characteristic | Profile |
|---|---|
| Cyclicality | Cyclical |
| Capital Intensity | High |
| Regulatory Intensity | High |
| Industry Maturity | Mature |
| Geographic Importance | U.S. / Global |
Diversified Financial Services Filers in the SEC Record
109 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification codes 6199, 6211, 6282. Their latest fiscal years end between 2022 and 2026, and together they reported $469.1 billion of revenue. Median revenue growth over the prior year was 9.5%. Median operating margin was -45.7% and median net margin -2.7%. Median total liabilities were 54% of total assets, and 51 of 109 reported a profit in their latest year.
| Company | Revenue | Growth | Operating margin | Net margin | Year |
|---|---|---|---|---|---|
| Morgan Stanley | $70.6 billion | 14.4% | n/a | 23.9% | FY 2025 |
| Galaxy Digital Inc. | $60.4 billion | 41.8% | n/a | -0.4% | FY 2025 |
| Goldman Sachs Group Inc | $58.3 billion | 8.9% | n/a | 29.5% | FY 2025 |
| American Express Co | $41.3 billion | 6.4% | n/a | 26.2% | FY 2025 |
| Apollo Global Management, Inc. | $32.0 billion | 22.7% | n/a | 10.6% | FY 2025 |
| Blackrock, Inc. | $24.2 billion | 89.3% | 29.1% | 22.9% | FY 2025 |
| Kkr & Co. Inc. | $19.5 billion | -11.0% | n/a | 12.2% | FY 2025 |
| Ameriprise Financial Inc | $18.9 billion | 5.5% | n/a | 18.8% | FY 2025 |
The 8 largest of 109 by revenue. Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. A company's SIC code reflects its main business as the SEC records it, so it can differ from how an index provider or analyst classifies the company, and a diversified group appears under only one code.
Where to Go Next
The Diversified Financial Services guide describes how the industry earns money, what to measure and what can go wrong. To see how it compares, read the neighbouring industries in the same sector, then apply the same checks to a specific company.
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Frequently Asked Questions
What are the main KPIs for the Diversified Financial Services industry?
Key performance indicators for the Diversified Financial Services industry include: Revenue by segment, Return on equity, Capital ratios, Expense ratio, Credit quality. Which matter most depends on the company's model, so compare them across several companies rather than relying on one.
How cyclical is the Diversified Financial Services industry?
The Diversified Financial Services industry is cyclical, meaning its revenues and earnings tend to expand during economic expansions and contract during downturns. Investors should monitor leading economic indicators and interest rate trends when evaluating timing.
What are the biggest risks in the Diversified Financial Services industry?
The primary risks for Diversified Financial Services companies include: Complexity, Credit and market risk, Regulatory capital, Segment concentration. Investors should assess each company's exposure to these factors and its track record of navigating them.