Record Profits in a Volatile Market

In a remarkable display of resilience, domestic securities firms in South Korea have reported a net profit of approximately 2.4 trillion won in the first quarter of this year, mirroring the performance of the same period last year.

Performance Highlights

Large securities firms witnessed enhanced performance in investment banking, bonds, and foreign exchange sectors, attributed to recent interest rate cuts. Meanwhile, small and medium-sized firms saw slight improvements, thanks to increased overseas stock commissions and the reversal effect of last year's provisions.

Financial Health and Sector Analysis

The average net capital ratio of securities companies rose to 818.5%, with all firms exceeding the regulatory requirement. Fee income saw a 4.9% increase, driven by refinancing demands, despite a dip in brokerage fees due to decreased trading volume.

Proprietary trading profits declined by 6.5%, with derivative-related losses offsetting gains in bond-related profits. Fund-related profits also fell, impacted by overseas market adjustments.

Looking Ahead

Amid ongoing market uncertainties and economic risks, the Financial Supervisory Service pledges to monitor the liquidity and soundness of securities companies closely, ensuring preparedness for potential challenges.