Net profit jumps 77% on-year as stock trading boom lifts brokerage commissions, trading volumes. Headquarters of the Financial Supervisory Service (FSS) South Korea's securities firms posted a record quarterly net profit of 4.33 trillion won ($2.63 billion) in the first quarter this year, driven by a surge in stock trading activity, Financial Supervisory Service data showed Friday.According to the FSS's provisional operating results, the combined net profit of 61 brokerages rose 77.1 percent on-year to 4.33 trillion won in the January-March period from 2.44 trillion won a year earlier.The figure more than doubled from 1.86 trillion won in the previous quarter, rising 132.6 percent over the three-month period.The first-quarter profit accounted for 44.9 percent of the industry's record annual net profit of 9.65 trillion won posted in 2025, meaning brokerages earned nearly half of last year's profit in just one quarter.Commission income nearly doubled to 6.69 trillion won from 3.36 trillion won a year earlier.Brokerage commissions surged 165.8 percent on-year to 4.3 trillion won, as domestic stock trading activity jumped, accounting for most of the increase.Quarterly trading value in the stock market, including alternative trading systems, soared 333.1 percent on-year to 2,775 trillion won from 641 trillion won a year earlier.Wealth management fees rose 89.4 percent on-year to 672.1 billion won, supported by increased fund sales and discretionary investment services.By contrast, investment banking fees were little changed at 944.5 billion won, compared to 943.7 billion won a year earlier.Proprietary trading income rose 30.8 percent on-year to 4.1 trillion won from 3.14 trillion won.Equity and fund gains, including those from exchange-traded funds, increased by 7.2 trillion won, supported by rising domestic stock indexes.However, derivatives-related income fell by 3.94 trillion won, while bond-related income declined by 2.3 trillion won, as market interest rates rose.Net gains from other assets fell 15.6 percent on-year to 1.04 trillion won.Loan-related income increased by 574.9 billion won on higher interest income from margin lending, but foreign exchange-related income declined by 767.8 billion won, as the won weakened sharply against the US dollar.Total assets at securities firms rose 16.3 percent from the end of 2025 to 1,098.4 trillion won, surpassing the 1,000 trillion won mark.The average net capital ratio, a key measure of financial soundness, rose 84.9 percentage points from the end of last year to 999.5 percent. All securities firms remained above the regulatory minimum of 100 percent.The average leverage ratio increased 24.6 percentage points to 718.3 percent, with all firms remaining within the regulatory ceiling of 1,100 percent.The country's three futures companies also benefited from strong market conditions, posting combined net profit of 32.7 billion won in the first quarter, up 45.6 percent from 22.4 billion won in the previous quarter."Uncertainties in the financial market persist amid heightened volatility in the domestic stock market, prolonged instability in the Middle East and rising exchange rates and market interest rates," the FSS said.The FSS said it would continue strengthening oversight of real estate project financing exposures and improve liquidity regulations and broader risk management measures.