Taiwan brokers post bumper profits after bourse rally

18 August 2014   Category: News, Asia, Global, Taiwan   By Hui Ching-hoo

Taiwan’s securities brokerages secured growth of more than 81% year-on-year in accumulated profits, or around NT$19.4 billion (US$647 million), for the first seven months of the year following a bullish run on the island’s stock market.

According to figures from the Taiwan Stock Exchange (TSE), the bourse’s total trading volume between January and July was up 23% to NT$14 trillion. The increase in turnover significantly buoyed brokers’ transaction income by 29%, or NT$6.8 billion, during the period.

However, securities houses’ monthly profits saw a decline of 32.66% month-on-month in July to around NT$2.55 billion. The findings showed that 36 out of 59 registered securities brokerages managed to keep their business in the black.

The benchmark TSE Weighted Index has risen by 9.46% in the year-to-date, according to Bloomberg data.

Separately, galvanised by the increase in transactions, the TSE’s pre-tax profit grew 15.7% year-on-year in the second quarter to NT$749.8 billion from NT$651.6 billion in the previous year. Meanwhile, its operating revenue was up 4.68% to NT$12.34 trillion, from NT$11.68 trillion.