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Securities firms' net profit rises 50% in 2014

Securities firms' net profit rises 50% in 2014

Taipei, Jan. 17 (CNA) Securities companies operating in Taiwan saw their net profit increase by more than 50 percent year-on-year in 2014, largely because of higher market turnover and gains made by the benchmark index, according to the Taiwan Stock Exchange (TWSE). Taiwan's 78 securities companies totaled NT$31.3 billion (US$991 million) in net profit in 2014, up 53 percent from a year earlier after turnover rose 17.6 percent year-on-year to NT$23 trillion and the weighted index rose about 8 percent. The increase in turnover boosted fee income of brokerages by about 18 percent, or NT$7.4 billion, from a year earlier, while higher share prices helped proprietary brokerages enjoy a 7.7 percent increase, or an additional NT$980 million, in net profit for the year. The data showed that Taiwan's 45 integrated securities companies posted combined net profit of NT$30.22 billion in 2014, compared with NT$19.51 billion in 2013. Thirty-eight of the 45 firms were profitable.
The TWSE statistics indicated that Taiwan's 32 dedicated securities brokers recorded NT$1.06 billion in net profit in 2014, up from about NT$872 million recorded a year earlier, with 23 firms profitable and nine reporting losses. The only futures commission merchant in Taiwan -- Yuanta Futures -- posted a net loss of NT$867,000 in 2014, compared with a net profit of NT$128,000 recorded a year earlier. In Taiwan, integrated securities firms are allowed to engage in a wide range of activities that include brokering trades, proprietary trading and underwriting, while dedicated securities brokers can only broker and trade equities. Last year, the 78 securities companies had a return on equity of 6.53 percent, up from 4.27 percent registered a year earlier, while their earnings per share stood at NT$0.988, compared with NT$0.624 the previous year. In December alone, the 78 securities firms posted a combined net profit of NT$3.32 billion, up 113.30 percent from a month earlier, after share prices on the main board rose 1.31 percent and average daily turnover grew 6.3 percent month-on-month, the TWSE said. In the month, 61 of the 78 firms were profitable, including the only futures commission merchant, the exchange said. (By Tien Yu-pin and Frances Huang)


Updated : 2021-09-22 02:29 GMT+08:00