There were nine investment firms operating in the investment firm market at the end of the first quarter. Two new investment firms entered the market during the first quarter.
Client assets held and managed by investment firms decreased by 51% in the first quarter to 259 million euros.
|Q4 2021||Change||Q1 2022|
|Value of client assets||533 mln €||↓||259 mln €|
|Value of assets of investment firms||120 mln €||↓||112 mln €|
|Profit/loss||4.6 mln €||↑||11.1 €|
|Net income||11.2 mln €||↑||18.0 mln €|
|Return on equity (cumulative, annualised)||6.1%||↑||20.9%|
The investment firm sector earned 18 million euros in net revenue in the first quarter, which is 61% more than in the previous quarter. The growth came mainly from profits from trading. Markets became more turbulent from the conflict between Russia and Ukraine and this made clients more active, allowing extraordinarily high revenue to be earned by the sector.
The sector earned 11 million euros of net profit in the first quarter, which is 2.5 times the amount earned last year in total. Three of the nine firms in the sector ended in profit.
Coverage of Pillar 1 equity requirements in the investment firm sector was 445% on average. Pillar 1 coverage was 368% in the first quarter. The liquid assets of investment firms increased by 42% over the quarter, and liquidity coverage improved from 374% to 518%.