UPDATE 1-Wall Street earned $10.5 bln in 1st half-NY comptroller

(Adds details on bonuses, salaries)

Oct 9 (Reuters) - New York City's securities industry earned$10.5 billion in the first half of 2012, down from the firsthalf of 2011, though it is on pace to end the year with $15billion of profits, barring adverse developments, a report bythe state comptroller said on T ues day.

New York State Comptroller Thomas DiNapoli said theindustry earned $12.6 billion in the first half of 2011.

Europe's sovereign debt crisis caused banks and brokeragesto lose $4.9 billion in the second half of 2011, and theindustry ended the year with only $7.7 billion of profits, thereport said.

Securities-linked activities accounted for 14 percent of thestate's tax revenue in fiscal 2011, down from 20 percent in2008.

Wall Street is the bedrock of the city and state economies,and the industry's struggles since the financial crisis havehurt tax revenues and spawned deficits.

For New York City, the decline in tax revenue was a bit lesssevere, falling to 7 percent from 12 percent. The state dependsmore on business and personal income taxes.

The comptroller said cash bonuses paid to securitiesindustry workers who live in New York City likely will fall in2012 for the second year in a row, dipping below his earlier$19.7 billion estimate for 2011. That was down 13.5 percent from2010.

"The securities industry remains in transition andvolatility in profits and employment show that we have not yetreached the new normal," DiNapoli said.

The average salary for a securities industry worker rose 0.5percent to $362,950 in 2011. That remains below theapproximately $400,000 average in 2007.

Wall Street employed about 168,700 people in August, butDiNapoli said there has been a sharp decline in recent monthsand the contractions likely will continue for the rest of 2012.

DiNapoli stressed the economic impact of the securitiesindustry on New York City. Last year, New York Stock Exchangemember firms paid 23.2 percent of all the wages earned byprivate sector employees in the city, although Wall Streetaccounts for only 5.3 percent of the private sector's jobs.

Each new person hired by the securities industry creates twomore jobs in other industries in New York City - and another jobin the rest of the state, mainly in the suburbs, DiNapoli said.The additional jobs cover a wide range of professions, fromflorists to lawyers, economists say.

(Reporting by Joan Gralla; Editing by Dan Grebler)