SEOUL, April 28 (Yonhap) — Major South Korean securities companies racked up weak earnings in the first quarter mainly due to the market rout caused by the coronavirus outbreak, industry data showed Tuesday.
Of the major brokerage houses, KB Securities Co. posted an operating loss of 20.8 billion won (US$17 million) in the January-March period, swinging from last year’s operating profit of 117.6 billion won.
The firm logged a net loss of 14.7 billion won, compared with a profit of 87.3 billion won a year ago.
Shinhan Investment Corp. saw its quarterly operating profit drop 18 percent on-year to stand at 58 billion won, with its net profit down 34.1 percent to 46.7 billion won.
Hana Financial Investment Co.’s operating profit fell 24.97 percent to 64.1 billion won, and net profit slid 25.07 percent to stand at 46.7 billion won.’
The tumble was attributed mainly to the losses incurred by the COVID-19 pandemic, such as plunging asset values and postponed IPOs.
The coronavirus has also cast a gloom on other big-name securities firms that have not released their earnings yet.
Kyobo Securities Co. estimated the combined net profit of six such brokerages houses, including Mirae Asset Securities Co., NH Investment & Securities Co. and Samsung Securities Co., will shrink 60.5 percent from a year ago.