Smaller brokerage firms log better returns
gettyimagesbankBy Anna J. ParkSmaller brokerage firms turn out to have higher return on equity (ROE) ― the measure of a company's net income, divided by its shareholders' equity ― as well as higher return on assets (ROA), compared to major securities firms. According to data compiled by the Korea Investors Service, KTB Investment & Securities logged the highest ROE among local brokerage firms, as of the end of the third quarter. The firm's ROE of 36.9 percent is much higher than bigger companies, including Samsung Securities' 19.45 percent, NH Securities' 16.18 percent and Mirae Asset Securities' 13.16 percent.Other smaller and medium-sized brokerage firms ― Kiwoom Securities, Heungkuk Securities, HanYang Securities, and eBest Securities ― all logged ROEs in the 20 percent range, which is higher than their bigger competitors.In terms of ROA, Heungkuk Securities recorded the highest figure of 5.7 percent, which is 3.3 percentage points higher than its year-on-year figure. KTB Investment & Securities, BNK Investment, eBest Investment and Kiwoom Securities followed the list, as
Dec 10, 2021By Anna J. Park