Haitong Securities Co and GF Securities reported flat net earnings in the first quarter of this year, ending last year's dazzling results, due to declining commissions and fluctuating proprietary business.

Thirteen brokerages listed on the Chinese mainland earned a combined 36.88 billion yuan (US$5.40 billion) in net income last year, but many of them reported a decline in weak first-quarter earnings.

"Their first-quarter reports indicated decline in commissions and a mixed performance in proprietary business and investment banking business," said Wang Dali, an analyst at Southwest Securities Co.

Net income of Haitong, the country's second-largest brokerage, rose 1.55 percent in the first three months from a year earlier to 1.01 billion yuan, or 0.12 yuan per share, it said in a statement to the Shanghai Stock Exchange yesterday.

It posted a 38 percent jump in net income of 4.7 billion yuan last year, according to a separate statement.

The broker said commissions declined amid fierce competition among brokers, but the launch of innovative products will widen income sources.

The Shanghai Composite Index declined about 5 percent in the first quarter, compared with an 80 percent increase last year.

Meanwhile, net profit at GF Securities Co dropped 6.1 percent to 870 million yuan in the first quarter from a year earlier, with its commission declining 13.6 percent to 1.25 billion yuan, according to its statement to the Shenzhen Stock Exchange yesterday.

In 2009, the broker's profit surged 48.8 percent to 4.69 billion yuan, with commissions up 59 percent.

"Its first-quarter performance was within expectations, although commissions and its proprietary business declined," said Guotai Jun'an Securities Co.