Q3 Asset Management Firms' Net Profit 420.8 Billion KRW... 3.6% Decrease YoY

Financial Supervisory Service Announces Q3 Asset Management Firms' Business Performance

Planning_Yeouido Securities District, Park One, LG Twin Towers. Photo by Hyunmin Kim kimhyun81@

The net profit of asset management companies in the third quarter was 420.8 billion KRW, showing a decrease compared to the same period last year and the previous quarter. This was due to a significant decline in securities investment income in the third quarter.

According to the "2024 Third Quarter Asset Management Company Business Performance" report released by the Financial Supervisory Service on the 25th, the net profit of asset management companies in the third quarter was 420.8 billion KRW, down 3.6% from the same period last year and down 26.9% from the previous quarter. Operating profit during the same period was 398.7 billion KRW, up 15.6% from the same period last year but down 13.9% compared to the previous quarter.

The Financial Supervisory Service noted that although fee income of asset management companies increased, net profit declined due to a decrease in securities investment gains.

In the third quarter, fee income was 1.1183 trillion KRW, up 13.6% from the same period last year and up 3.2% from the previous quarter. On the other hand, the securities investment profit and loss segment recorded a loss of 30.4 billion KRW. This was a decrease of 54.5 billion KRW compared to the same period last year and a decrease of 116.1 billion KRW compared to the previous quarter.

Among the total 483 asset management companies, 222 posted profits while 261 recorded losses. The ratio of loss-making companies increased by 10.3 percentage points from 43.7% in the second quarter of this year to 54.0%.

The assets under management (based on fund custody and discretionary investment contracts) of asset management companies amounted to 1,633.8 trillion KRW, an increase of 21.6 trillion KRW (1.3%) compared to the end of June.

Fund custody was 102.7 trillion KRW, and discretionary investment contracts were 606.8 trillion KRW, increasing by 18.9 trillion KRW (1.9%) and 2.7 trillion KRW (0.4%) respectively compared to the end of June. Among the fund custody, public funds accounted for 396.2 trillion KRW (38.6%) and private funds accounted for 630.8 trillion KRW (61.4%). Public funds increased by 6.5 trillion KRW and private funds increased by 12.4 trillion KRW compared to the end of June.

The Financial Supervisory Service stated, "We will monitor the entire fund market, including bond funds, in preparation for market volatility due to future interest rate changes and international situations, while also checking the financial and profit and loss status of asset management companies."