The Korea Herald

지나쌤

Most brokerages shine in 2015, but outlook gloomy

By KH디지털2

Published : Feb. 2, 2016 - 11:33

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A majority of Korean securities companies logged record profits in 2015 thanks to brisk stock trading amid low interest rates, data showed Tuesday.

But the prospect for this year is far from rosy as lingering concerns over the global economy would hurt investor sentiment to nibble at the bottom line.

Samsung Securities Co. posted an operating profit of 376.7 billion won ($313.2 million) last year, up a whopping 125.6 percent from the previous year and its highest since 2007.

The operating profit of NH Investment & Securities Co. came to 314.1 billion in 2015, up 150.4 percent on-year and the biggest since 2007. 

Kyobo Securities Co. also enjoyed its largest profit in 15 years of 97.3 billion won last year, and HMC Investment Securities Co. saw its profit nearly quadruple on-year to 68.2 billion, the largest since its establishment in 2008.

Other brokerage houses, whose earnings data are not yet available, were also estimated to have posted the largest earnings in years.

According to market researcher FnGuide, the operating profit of Hyundai Securities Co. probably jumped more than six times in 2015, and Daeshin Securities' earnings are forecast to grow more than 250 percent.

The surge is mainly attributable to a huge inflow of floating funds into the stock market amid low interest rates and the subsequent increase in stock trading and commissions, according to experts.  

In 2015, a total of 262.8 billion shares were traded on the main KOSPI and the tech-laden KOSDAQ markets, up from the previous year's 155 billion.

The popularity in a variety of products, including equity-linked securities, also bolstered their bottom line.

But the boom is unlikely continue into this year amid bleak prospects for the stock market due to the global economic slowdown, watchers said.

"The protracted economic downturn and high chances of interest rate hikes would drive investors out of the stock market which would hurt securities firms' operating profits," said Kang Seung-gun, a researcher at Daeshin Securities Co.

According to FnGuide, Meritz Securities Co. will likely experience a 16 percent fall in its operating profit this year to 399.4 billion won, and Daeshin Securities is expected to log 157.5 billion won in profit, down from this year's 171.9 billion. (Yonhap)