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Asset managers' Q3 earnings plunge 30 pct

All Headlines 08:51 December 04, 2017

SEOUL, Dec. 4 (Yonhap) -- Asset management companies in South Korea saw their third-quarter earnings tumble nearly 30 percent on-year due to decreased nonoperating income, the financial watchdog said Monday.

The combined net income of the 195 asset managers in the country came to 170.3 trillion won (US$157 million) in the July-September period, down 29.7 percent from a year earlier and 8 percent from three months earlier, according to the Financial Supervisory Service (FSS).

The decline stemmed mainly from a drop in their income from equity investments, though their aggregate operating income rose 6.1 percent on-quarter to 206.3 billion won.

According to the FSS, 82 asset management firms, or about 42 percent of the total, lost money during the three-month period, with the remainder turning a profit.

Choi Jong-ku (3rd from L), chairman of the Financial Services Commission, presides over a meeting of asset management CEOs in Seoul on Sept. 26, 2017, in this file photo. (Yonhap)

The number of loss-making asset managers was up 19 from the previous quarter.

Noting more asset managers lost money in the quarter due to a rise in the number of new entrants, the watchdog said it will step up monitoring of newly established companies and market risks.

Their return on equity, a key measure of profitability, stood at 12.8 percent as of the end of September, down 1.7 percentage points from three months earlier.

Their combined assets increased 1 percent on-quarter to 950 trillion won, with their total workforce gaining 4 percent to 7,090.
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