Shinhan Investment's net profit for the third quarter this year falls more than 77 percent from the previous quarter. The result reflects weaker brokerage income as stock trading value declines and a swing to a loss in its product management business.

Shinhan Investment's third-quarter net profit is 65.3 billion won, down 77.4 percent from 289.3 billion won in the previous quarter, Shinhan Financial Group said on Monday. It is down 35.0 percent from 100.5 billion won a year earlier.

Third-quarter operating profit is 83.4 billion won, down 77.0 percent from 362.0 billion won in the previous quarter and down 42.2 percent from 144.1 billion won a year earlier. Operating revenue also falls to 367.8 billion won, down 52.4 percent from the previous quarter and down 15.4 percent from a year earlier.

Fee income is 278.7 billion won, down 47.2 percent from the previous quarter. Brokerage fees fall 47.2 percent to 203.0 billion won, and financial product fees drop 53.9 percent to 26.5 billion won. Investment banking (IB) fees fall 19.6 percent from the previous quarter to 24.8 billion won.

Weakness in the product management business is also pronounced. Product management revenue, which posted a profit of 73.0 billion won in the second quarter, swings to a loss of 56.5 billion won in the third quarter. Net interest income is 145.7 billion won, down 15.1 percent from the previous quarter but up 10.3 percent from a year earlier.

Still, cumulative results this year maintain a sharp increase from a year earlier.

Shinhan Investment's net profit for the first three quarters totals 642.9 billion won, up 78.9 percent from 359.4 billion won a year earlier. Cumulative operating profit rises 79.8 percent to 831.7 billion won, and operating revenue increases 45.0 percent to 1.84 trillion won.

Cumulative brokerage fees are 880.9 billion won, up 134.4 percent from a year earlier, and financial product fees rise 114.4 percent to 112.2 billion won. IB fees, however, fall 29.8 percent to 98.1 billion won.