Seoul: Securities companies in South Korea experienced a slight decrease in net profit for the first quarter, attributed to a reduction in profits from derivatives trading and funds, recent data revealed.
According to Yonhap News Agency, the combined net profit of 60 domestic securities firms amounted to 2.44 trillion won (US$1.79 billion) during the January-March period. This figure represents a 1.1 percent decline from the 2.46 trillion won profit recorded in the same period last year, as indicated by the data from the Financial Supervisory Service.
The securities firms did, however, see a 4.9 percent increase in net income from commission fees, reaching approximately 3.36 trillion won in the first quarter. This rise was supported by a surge in overseas stock trading. Conversely, their combined income from their own investment or stock trading fell by 6.5 percent to 3.13 trillion won during the same timeframe.
The data also showed an increase in the firms' combined assets, which rose 5.7 percent year-on-year to 797.4 trillion won. Similarly, their debts increased by 6.3 percent to 704.7 trillion won. The capital base of these firms saw a modest growth of 1.2 percent year-on-year, reaching 92.7 trillion won.
In a related development, three futures firms reported a net profit of 20.5 billion won in the first quarter, marking an 8.8 percent decline from the previous year, as highlighted by the data.