PROFITS at Davy, the country's oldest and biggest stock broking firm, are understood to have hit about €15m last year.

The broker posted a summary statement of its finances on its website last week, indicating a profit of about €6m, but it is understood that the actual figure was higher, with sources pointing to a profit in "high teen" millions.

According to the statement, Davy had retained profits of €115.6m at the end of 2009, up from €109.7m. Shareholders' funds at the end of last year were €135.6m.

Despite the slump in the Irish equity market, the company says all areas of its business have fared well. As the only broker that is a primary dealer in Irish government bonds, it will have received a boost from commissions earned on the state's monthly bond sales.

"Although trading conditions remained difficult in global and domestic equity markets during 2009, the diversified nature of the business reduced the impact of the slowdown," Davy's statement said. It added that its regulatory capital was "three and a half times the statutory requirement".

Davy has been profitable each month this year. It advised Bank of Ireland on its rights issue in May and it acts as broker to nine of the 10 biggest stock market-quoted companies. It made substantial inroads in repaying huge borrowings built up when its management bought the broker out from Bank of Ireland in 2006 for €350m. Senior management – including Tony Garry, Kyran McLaughlin and Brian Davy – remain its biggest investors.

Meanwhile, it is believed that no final decision has been made on who will chair Goodbody Stockbrokers following its sale by AIB to Kerry-based financial services group Fexco last week for €24m. Current chairman Mon O'Driscoll is a senior executive in AIB. It is thought Fexco may replace him with one of its own executives. It is unlikely that Fexco's chairman, former Tánaiste and Labour party leader Dick Spring, will assume the role. Spring was government appointed to the board of AIB.