Investment advisory firms suffer 85% drop in 2016 fiscal year profit

By a2016032

Published : June 9, 2017 - 09:57

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The combined net profit of 162 investment advisory firms in South Korea plunged 85 percent on year in the 2016 fiscal year, hit by a sharp decline in commission fees and new contracts, data showed Friday.

Competition was intensifying among investment advisory firms while new contracts declined during the April 2016-March 2017 period, forcing them to cut commission fees, the Financial Supervisory Service said in a statement.

(Yonhap)

The investment advisory firms reported a combined net profit of 96 billion won ($85.5 million) during the fiscal year, compared with a profit of 112.9 billion won a year earlier.

Their average return on equity, a measure of profitability, stood at 3 percent, down 14.1 percentage points from a year ago, according to the data.

At the end of March this year, their combined contract volume fell 35.5 percent on year to 15.8 trillion won, the data showed. (Yonhap)

Investment advisory firms suffer 85% drop in 2016 fiscal year profit

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