Asset management companies fell 72% sharply in Q2 amid sluggish stock markets

0

An electronic sign in Hana Bank's trading floor in Seoul on June 2, 2022 shows that the benchmark Korea Composite Stock Price Index (KOSPI) fell 26.91 points, or 1 percent, to close at 2,658.99.  South Korean stocks fell sharply as fears of a possible recession in the global economy continued to weigh on investor sentiment.  (Yonhap)

An electronic sign in Hana Bank’s trading floor in Seoul on June 2, 2022 shows that the benchmark Korea Composite Stock Price Index (KOSPI) fell 26.91 points, or 1 percent, to close at 2,658.99. South Korean stocks fell sharply as fears of a possible recession in the global economy continued to weigh on investor sentiment. (Yonhap)

SEOUL, Sep 8 (Korea Bizwire)Asset management companies in South Korea saw their combined net profits plunge in the second quarter of this year due to massive investment losses in sluggish financial markets, data showed on Thursday.

The combined net income of 380 companies was 170.1 billion won ($122.6 million) in the April-June period, down 72 percent from the same period a year earlier. , according to preliminary data from the Financial Monitoring Service (FSS).

The fall was blamed on losses in securities 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 reversal from a profit of 167 billion won a year earlier.

Their commission income also fell 2.1% year-on-year to 1.08 trillion won.

Their return on equity, a major indicator of profitability, was also down to 5.7% from 24% a year earlier.

Among asset management companies, 146 companies posted a profit, while another 234 posted a loss in the quarter.

(Yonhap)


Share.

Comments are closed.