Securities firms under major financial holding groups emerged as key profit drivers in the first quarter, posting strong earnings on the back of a stock market rally.
Brokerage units of South Korea's five largest financial groups reported a combined net profit of 1.23 trillion won ($836 million), up 132.3 percent from 529 billion won in the previous quarter.
NH Investment & Securities led with 475.7 billion won in net profit, followed by KB Securities with 347.8 billion won and Shinhan Investment Corp. with 288.4 billion won. Hana Securities posted 103.3 billion won, while Woori Investment & Securities recorded 14 billion won.
The surge was driven by a sharp increase in brokerage commissions amid a booming stock market. The Kospi and Kosdaq rose about 28 percent and 30 percent, respectively, in the first quarter, drawing strong capital inflows.
Although markets pulled back 19 percent in March on geopolitical tensions, trading activity remained elevated as retail investors capitalized on volatility.
Average daily trading value jumped more than 80 percent from the previous quarter to around 67 trillion won — more than triple the 10-year average of 18 trillion won.
NH Investment & Securities, the top performer, saw brokerage commission income rise 57.4 percent on-quarter to 349.5 billion won, with domestic stock transaction value surging 91.4 percent to 850 trillion won.
KB Securities also posted strong results, with wealth management operating profit climbing 63.1 percent to 509.9 billion won, raising its contribution to group net profit to 18.4 percent. Shinhan Investment Corp. reported fee income of 407.4 billion won, up 47.6 percent, while brokerage commissions rose 56 percent to 293.5 billion won, lifting its share of group earnings to 17.8 percent.
Hana Securities and Woori Investment & Securities also saw gains, with Hana’s commission income rising 37.4 percent to 195.3 billion won. Woori, in its first year of operations, posted a 173.3 percent jump in non-interest income.
In contrast, the investment banking segment — traditionally a key profit driver — remained subdued, with growth of around 10 percent, weighed down by a slowdown in the real estate project financing market.
ch0221@heraldcorp.com
