Shinhan Securities saw its third-quarter operating profit fall more than 40% from a year earlier, as slower stock trading volume cut brokerage fee income and trading and product management results deteriorated.
Third-quarter operating profit came to 83.4 billion won ($58 million), down 42.2% from 144.1 billion won a year earlier, according to quarterly earnings data released by Shinhan Financial Group (055550) on the 27th. The figure was 77.0% lower than the 362 billion won posted in the previous quarter. Net profit fell 35.0% to 65.3 billion won from 100.5 billion won in the third quarter of last year, and dropped 77.4% from 289.3 billion won in the preceding quarter.
The market slowdown weighed on detailed revenue measures as well. Fee income totaled 278.7 billion won in the third quarter, down 47.2% from 527.9 billion won in the previous quarter. Of that, brokerage commissions came to 203 billion won, down 47.2% from 384.4 billion won a quarter earlier.
Cumulative results for the year remain far above last year's levels. Operating profit for the first nine months reached 831.7 billion won, up 79.8% from 462.6 billion won a year earlier. Cumulative net profit rose 78.9% to 642.9 billion won from 359.4 billion won.
"Operating revenue shrank as brokerage fee income declined on slower trading volume and product management income fell amid rising interest rates, which pushed net profit lower than the previous quarter," an official at Shinhan Financial Group said.