Securities firms see rise in 2013 net profit
January 21, 2014, 12:09 am TWN
TAIPEI -- Securities companies operating in Taiwan enjoyed a more than 13-percent annual increase in net profit for 2013, reflecting a growing local equity market, according to the Taiwan Stock Exchange (TWSE).
The TWSE said 81 securities companies in Taiwan recorded NT$20.38 billion (US$679 million) in net profit, up 13.3 percent from a year earlier, while the weighted index on the main board rose about 912 points or 11.85 percent during the same period.
Among the 46 integrated securities firms, 39 posted profits and 7 suffered losses in 2013, while 24 of 34 dedicated brokerages reported profits and 10 incurred losses, the exchange said.
The 46 integrated securities firms posted NT$19.51 billion in net profit, while the 34 dedicated brokerages registered NT$871.79 million in net profit, the exchange said.
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 trade equities.
The only futures commission merchant in Taiwan — Yuanta Futures
— reported a net profit of NT$128,000 last year, the TWSE said.
Last year, the 81 securities companies recorded NT$0.624 in earnings per share (EPS) on average, compared with NT$0.552 in 2012, while their average return on equity (ROE) stood at 4.36 percent, down from 3.90 percent.
The average EPS of the 46 integrated securities firms was NT$0.620 in 2013, up from NT$0.534 in 2012, while their average ROE rose to 4.38 percent from 3.82 percent.
The 34 dedicated securities brokers posted NT$0.743 in EPS in 2013, down from NT$1.051 in 2012, and their average ROE fell to 4.03 percent from 5.49 percent a year earlier.
In December alone, the 81 securities companies posted NT$2.16 billion in net profit, up 72.39 percent from November. Of the 81 firms, 57 were profitable and 24 incurred losses last month.