SEOUL, Sept 8 (Yonhap) – Asset management firms in South Korea saw their combined net profits collapse in the second quarter of this year on massive investment losses amid slacking financial markets, data showed on Thursday.
The combined net income of 380 companies from April to June was 170.1 billion won ($122.6 million), down 72 percent from the same period last year, according to preliminary data from the Financial Supervisory Service (FSS).
The slump was attributed to losses on portfolio investments as local stock markets remained sluggish amid concerns about rising interest rates and slowing economic growth.
The companies posted a combined loss of 117.8 billion won on their securities investments in the second quarter, a turnaround from a profit of 167 billion won a year earlier.
Their commission income also fell 2.1 percent year-on-year to 1.08 trillion won.
Return on equity, an important indicator of profitability, also fell to 5.7 percent from 24 percent in the previous year.
Of the wealth management firms, 146 companies reported a profit while 234 others reported a loss during the quarter.
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