1H Securities Industry Net Profit Falls 62% from a Year Ago

SEOUL, KOREA- The aggregate net profit of securities houses in the first half of this year has plunged more than 60 percent from the same period last year. According to data on 1H 2013 (April to September) securities company financial performance released by the Financial Supervisory Service on November 11, the net profit earned by all 62 securities firms for the six-month period was 251.6 billion won, down 62.6 percent from 674.5 billion won a year ago. By quarter, the second-quarter net profit rose slightly to 132.4 billion won from 119.2 billion won in the first quarter.

The big decline in the securities houses' net profit was largely due to a fall in incomes from bond transactions by 634.4 billion won from the same period in 2012. Their fee incomes also declined 74.3 billion won (-2.4%). Meanwhile, the companies' marketing expenses fell 253.6 billion won (-6.3%) due to closure of underperforming sales offices and layoffs.

Of the 62 companies, 26 were in the red. The first-half return on equity was 0.6 percent (1.2% in annual rate), down 1.0 percentage point from the same six-month period last year.

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