The combined net profit of 165 investment advisory firms in South Korea more than tripled on-quarter in the fiscal first quarter of this year, thanks to a rise in commission fees as the stock market rallied, data showed Wednesday.
The investment advisory firms reported a combined net profit of 28.4 billion won ($25.1 million) during the fiscal first quarter, which ended in June, compared to a profit of 8.6 billion won in the previous quarter, according to the data from the Financial Supervisory Service.
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(Yonhap) |
Their average return on equity, a measure of profitability, stood at 19.7 percent, up 13.7 percentage points from a quarter earlier.
At the end of June, their combined contract volume fell 16 percent on-quarter to 13.3 trillion won, the data showed.
In a statement, the FSS said the combined contract volume of investment advisory firms has been on a steady decline since 2015.
The FSS will step up its monitoring into potential financial risks of small and medium-sized investment advisory firms, it said. (Yonhap)
