Woori Investment & Securities reported on the 25th that it achieved a net profit of 1 billion won in the first quarter of this year. This figure is a decrease of 92.3% compared to a net profit of 13 billion won for Woori Financial Group in the first quarter of last year. Woori Investment & Securities was established in July last year following the merger of Woori Financial Group and POSCO Securities.
On this day, Woori Financial Group announced that Woori Investment & Securities reported first quarter sales of 40 billion won, a decrease of 13% compared to the previous year.
In terms of net operating income, interest income decreased by 21.9% to 25 billion won, while non-interest income increased by 7.1% to 15 billion won. Non-interest income was reported to be around 3 billion won from corporation-related fees, which was similar to the previous year, and profits related to securities increased from 11 billion won to 12 billion won, a rise of 7%.
Woori Investment & Securities noted that net interest income decreased as the average balance of loan assets declined compared to the same period last year, while non-interest income increased due to factors such as fees related to investment banking. Costs associated with the merger increased, resulting in higher selling and administrative expenses.
Woori Investment & Securities plans to launch active business initiatives starting in the second quarter. The firm obtained a comprehensive securities business license from the financial authorities on the 19th of last month, which allows it to engage in investment banking. Subsequently, the home trading system (HTS) and mobile trading system (MTS) were also launched in the same month.
A representative of Woori Investment & Securities said, "Since receiving official approval last month, we are actively expanding operations in sales and trading, direct investment, and are focusing on establishing the foundation for profit realization in the securities business this year."
They added, "After the second quarter of this year, we will focus more on credit management and profits related to securities, gradually expanding net operating income."