Brokerages post record quarterly net profit of 4.33 trillion won in Q1

South Korean brokerages posted combined net profit of more than 4 trillion won in the first quarter of this year, setting a record for any single quarter. The surge was driven by a sharp rise in brokerage commissions as stock trading volumes soared, along with improved performance in proprietary trading. Total assets at domestic brokerages exceeded 1,000 trillion won for the first time, and financial soundness indicators remained above regulatory thresholds.

The 61 domestic brokerages collectively earned 4.3271 trillion won ($316 million) in net profit for the period in the first quarter, up 77.1 percent — or 1.8843 trillion won — from 2.4428 trillion won in the same period last year, according to the Financial Supervisory Service's preliminary first-quarter earnings report for securities and futures firms, released Friday. Compared with the previous quarter's 1.8606 trillion won, net profit surged 132.6 percent, or 2.4665 trillion won, in just three months.

First-quarter net profit amounted to 44.9 percent of the full-year net profit for 2025 — 9.6455 trillion won — which itself was the highest annual figure on record. The industry, in other words, earned nearly half of last year's full-year profit in a single quarter. Fee revenue totaled 6.6929 trillion won ($4.38 billion), up 3.3283 trillion won, or 98.9 percent, from 3.3646 trillion won in the same period last year.

Brokerage commissions — the largest contributor to earnings — jumped 165.8 percent year-on-year, or 2.6835 trillion won, to 4.3020 trillion won as domestic equity trading volumes expanded sharply. Quarterly trading volume on the main bourse, including the alternative trading system, reached 2,775 trillion won, up 333.1 percent from 641 trillion won in the same period a year earlier.

Asset management fee revenue rose 89.4 percent year-on-year to 672.1 billion won, driven by higher fund sales and discretionary investment management fees. Investment banking fee revenue, however, was largely flat at 944.5 billion won, barely changed from 943.7 billion won in the same period last year.

Proprietary trading profit rose 30.8 percent year-on-year to 4.1026 trillion won, from 3.1368 trillion won. Gains on equities and funds — including exchange-traded funds — climbed 7.2046 trillion won, supported by a rise in domestic indexes. Derivatives-related profit fell 3.9396 trillion won, however, and bond trading profit dropped 2.2993 trillion won as market interest rates rose.

Profit from other assets fell 192.9 billion won, or 15.6 percent, year-on-year to 1.0406 trillion won. Loan-related profit rose 574.9 billion won on expanded credit lending interest income, but foreign exchange-related profit fell 767.8 billion won as the won weakened to around 1,510 per dollar.

Total assets at domestic brokerages reached 1,098.4 trillion won as of the end of the first quarter, up 154 trillion won, or 16.3 percent, from the end of last year — surpassing the 1,000 trillion won mark for the first time.

The average net capital ratio, a key financial soundness indicator, rose 84.9 percentage points from the end of last year to 999.5 percent. All brokerages exceeded the regulatory minimum of 100 percent.

The average leverage ratio rose 24.6 percentage points over the same period to 718.3 percent, with all brokerages remaining within the regulatory ceiling of 1,100 percent.

The three domestic futures firms also benefited from the buoyant market, posting combined first-quarter net profit of 32.65 billion won — up 45.6 percent from 22.43 billion won in the previous quarter.