S Korea Securities Cos' FY2008 Net Profit Fall 54%

SEOUL -(Dow Jones)- The combined profit of 60 securities companies operating in South Korea fell 54% during the fiscal year 2008 ended March 31 due to a drop in brokerage commission as a result of the stock market slowdown, the Financial Supervisory Service said Monday.
Securities companies in South Korea posted a combined KRW2.04 trillion in net profit in 2008, compared with KRW4.41 trillion in the preceding year, the FSS said in a statement.
Return on equity of the brokerage firms fell to 6.7% in 2008 from 17.0%.
The net profit of 20 foreign-owned brokerage firms fell 30.1% to KRW711 billion, while that of locally owned companies fell 61% to KRW1.33 trillion, the FSS said.
The average net capital ratio of securities companies, a key measurement of financial health, was at 615.7% at the end of March, up from 591.2% a year earlier, and much higher than the 150% threshold recommended by the FSS.