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(Photo= Yonhap news) |
[Alpha Biz= Reporter Kim Sangjin] Securities firms recorded a combined net profit of 2.5 trillion won in the first quarter, thanks to increased stock market trading volume.
According to the Financial Supervisory Service (FSS), excluding one-time factors, the net profit of 60 securities firms in the first quarter totaled 2.5141 trillion won, an increase of 363.5 billion won (16.9%) compared to the same period last year (2.1506 trillion won).
Breakdown shows that commission income increased by 441.0 billion won (15.9%) to 3.2176 trillion won compared to the same period last year (2.7766 trillion won). Custodian fees, driven by an increase in stock trading volume, reached 1.6211 trillion won, up 263.5 billion won (9.4%) from the same period last year.
In the Investment Banking (IB) sector, commission income increased by 1.063 trillion won (14.0%) to 8.649 trillion won, thanks to the expansion of corporate bond issuances. Asset management sector commission income increased by 338 billion won (12.6%) to 3.022 trillion won. Trading gains increased by 125.2 billion won (3.9%) compared to the same period last year to 3.523 trillion won.
As of the end of the first quarter, the total assets of securities firms stood at 722.6 trillion won, an increase of 35.9 trillion won (5.2%) from the end of last year. Debt increased by 35 trillion won (5.8%) from 601.5 trillion won at the end of last year to 636.5 trillion won at the end of the first quarter. As of the end of March, the average net capital ratio of securities firms was 730.9%, down 3.8 percentage points from the end of last year (734.7%). The average leverage ratio increased from 646.1% to 650.8%, up 4.7 percentage points.
The FSS explained that all securities firms met the regulatory ratios for net capital and leverage (within 100% and 1100%, respectively). The FSS also noted that while the first-quarter performance of securities firms improved across the board, there is a possibility of future profitability decline due to high interest rates, inflation, and the restructuring of real estate project financing (PF).
AlphaBIZ Kim SangJin(letyou@alphabiz.co.kr)
