Southwest Securities 2010 profit falls 20 pct on shrinking commissions

China's Southwest Securities Co., the country's leading brokerage, said Tuesday its profits fell 20 percent year on year in 2010 due to the lackluster performance of the country's stock markets and shrinking commissions.

Net profits fell to 805.28 million yuan (122 million U.S. dollars) from 1 billion yuan in 2009. Earnings per share stood at 0.39 yuan, compared with 0.54 yuan a year earlier, the brokerage said in a statement filed with the Shanghai Stock Exchange.

The Chongqing-based company said its profit decline was partly due to the country's volatile stock markets. China was among the world's worst performing equity markets last year as the benchmark Shanghai Composite Index tumbled 14.3 percent.

Falling commission income was another reason behind the company's profit decline. Its commissions dropped 11.97 percent year on year to 787 million yuan last year, due to fierce competition among brokerage firms.

Source: Xinhua

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