Southwest Securities’ retail division continues to be a boon for the firm.

The brokerage unit ended its fiscal year on a strong note as performance improved and the firm continued to invest for future growth. The division, which appointed a new director to oversee advisor platforms in June, also increased advisor compensation by $1.1 million and added three advisors to its private client group. 

Moreover, the division reversed course from last year’s $2 million net loss to land a profit of $2.5 million from $110 million in revenue as assets under management rose 43%. Meanwhile, the firm reported a net loss of $6.7 million and revenue of $271 million in 2013 compared to a $6 million net loss and $293 million in revenue for 2012.

 “Our retail, clearing and banking segments collectively grew revenue and reported improved performance for both the fourth quarter and 2013 fiscal year, as equity markets continued to strengthen and economic conditions improved,” Southwest Securities’ CEO, James H. Ross, said in a statement.

Assets under management leapt up from $761 million in June of last year to $1.1 billion in the fourth quarter this year, which increased fee revenue by $1 million, the firm reported.

Helping to boost profit, expenses at the retail unit declined because of a $2.5 million drop in legal expenses.

Total, the Dallas-based firm has more than 500 advisors concentrated in the Southwest.