Securities firms double monthly profits

Staff writer, with CNA

Wed, Oct 17, 2012 - Page 13

Securities companies operating in Taiwan saw their monthly profits double last month due largely to handsome gains from the sale of a piece of property by a securities firm, the Taiwan Stock Exchange (TWSE) said yesterday.

The 84 securities companies posted NT$3.14 billion (US$108 million) in net profit, up 106.8 percent from August, the TWSE said.

The sharp increase was due mainly to Horizon Securities (宏遠證券) gaining about NT$2.02 billion from the sale last month of a commercial property in central Taipei, the stock exchange said.

Were it not for that transaction, the securities firms would have recorded a slight monthly decline in profit from August, when net profit was NT$1.52 billion, the TWSE said.

It added that 57 of the 84 securities companies had made a net profit, while 27 suffered a net loss.

Among the 48 integrated securities firms, 35 recorded gains and 13 incurred losses, while 21 out of the 35 dedicated brokerages reported profits and 14 lost money, the TWSE said.

The only futures commission merchant in Taiwan — Yuanta Futures Co (元大期貨) — had a net profit of NT$858,000 last month, the stock exchange said.

Integrated securities firms are allowed to engage in a wide range of activities that include brokering trade, proprietary trading and underwriting, while securities brokers can only trade equities.

Last month, Horizon Securities topped the integrated securities firms’ revenue list, posting NT$1.81 billion in net profit. It was followed by Yuanta Polaris Securities Co (元大寶來證券) with NT$232 million, KGI Securities Co (凱基證券) with NT$163.7 million, Grand Cathay Securities Corp (大華證券) with NT$145.47 million and President Securities Corp (統一證券) with NT$124.36 million.

In the first nine months of this year, Yuanta Polaris Securities was ranked the most profitable integrated securities firm with a net profit of NT$3.35 billion. Horizon Securities was second with a net profit of NT$1.76 billion, followed by KGI Securities with NT$1.26 billion, Pacific Securities Co (太平洋證券) with NT$1.10 billion and SinoPac Securities Co (永豐金證券) with NT$1.07 billion.