Go to Contents Go to Navigation

Brokerage firms' net income rises on brisk stock trade

All Headlines 09:22 August 29, 2016

SEOUL, Aug. 29 (Yonhap) -- The net profits of 54 securities firms in South Korea rose 1.5 percent on-quarter to 621.4 billion won (US$557.8 million) in the second quarter of the year, government data showed Monday.

Revenue from brokerage commissions came to 1.99 trillion won during the period, up 13.5 percent from a quarter earlier, on an increase in the stock trade following the Bank of Korea's interest rate cut and Britain's decision to leave the European Union, according to the data compiled by the Financial Supervisory Service (FSS).

In contrast, proprietary trading income dropped 23.9 percent to 708.3 billion won, mainly attributable to huge stock-related losses.

Return on equity (ROE) stood at 2.7 percent as of June 30.

The total assets of the securities firms increased 1.1 percent on-quarter to 384.6 trillion won in the second quarter. The amount of total debts came to 348.5 trillion won, up 1 percent from the previous quarter.

"(Local) securities companies were seen having reaped stable revenue despite an external impact, such as worsened conditions for the operation of derivatives-linked securities, since the latter half of last year," an FSS official said. "As elements for potential market instability linger, we will increase our monitoring of data on their fiscal soundness."

lcd@yna.co.kr
(END)

HOME TOP
Send Feedback
How can we improve?
Thanks for your feedback!