Major brokerage firms in South Korea struggled during the third quarter of 2018, data released on Wednesday shows, reversing the record earnings achieved in both the first half and second quarter of this year.
According to a report from Yonhap, an English-speaking local news agency in South Korea, brokers such as Samsung Securities Co., Korea Investment & Securities Co., and Mirae Asset Daewoo Co. reported a drop in earnings, based on regulatory filings from the brokers.
The disappointing results are largely due to a lackluster showing of the local stock market. In the July to September period, Mirae Asset Daewoo Co. recorded an operating profit of 98.8 billion won (US$87.09 million) on a consolidated basis.
According to its regulatory filing, this is down by 41.5 percent when compared to the same period of the previous year. Net profit fell even further, dropping by 43.1 percent year-on-year to hit 76.5 billion won.
Garlicoin - The Next DogeGo to article >>
However, the broker did see an increase in sales, jumping by 7.4 percent when compared to the third quarter of 2017 to reach 2.38 trillion won.
In a statement, the company said of its results: “The decrease is due to a drop in our customers’ total turnover of stock trading and the derivatives market.”
Samsung Securities Co. also published a drop in its third-quarter earnings. During the period, operating profit dropped by 20.2 percent year-on-year, hitting 92.3 billion won. Net operating profit also declined by 26.5 percent to 64.2 billion won. Sales were also down by 7.7 percent.
Korea Investment & Securities Co. Reports a Slight Earnings Decline
While Korea Investment & Securities Co. also reported sluggish results, the fall was only slight when compared to Samsung Securities and Mirae Asset Daewoo. For the third quarter, operating profit fell slightly by 3.8 percent when compared to the same period in 2017, coming in at 161.5 billion won. Net profit was also down by 6.2 percent.