NH Investment & Securities said on the 23rd that it achieved its highest-ever quarterly results, posting operating profit of 636.7 billion won and net profit of 475.7 billion won in the first quarter.
These figures were up 120.3% and 128.5%, respectively, from a year earlier, with an annualized return on equity (ROE) of 19.6%.
NH Investment & Securities said that since Chief Executive Yun Byung-un took office, its strategy to diversify revenue by business division and strengthen its customer base has continued to deliver strong results.
The brokerage institutional sector benefited from a surge in domestic stock market transaction value. First-quarter brokerage fee revenue was 349.5 billion won, up 57.4% from the previous quarter. As the average daily transaction value of domestic stocks rose 80.5% from the previous quarter to 66.8 trillion won, NH Investment & Securities' domestic stock fee revenue came to 309.7 billion won.
NH Investment & Securities' market share (M/S) also rose 0.5 percentage point (p) from the previous quarter to 10.7%. Domestic stock consignment assets were 316 trillion won and the contracted amount was 850 trillion won, up 17.6% and 91.4%, respectively, from the previous quarter.
Financial product sales fee revenue was 49.1 billion won, up 87.7% from the previous quarter. Thanks to a strong stock market, sales centered on investment products such as wraps and funds increased. Wealth management fees, collective investment securities handling fees, and trust fees all rose sharply from the previous quarter.
Total financial product assets were 173 trillion won, holding at the previous quarter's level, while the number of high-net-worth (HNW) clients rose to 358,000 with 100 million won or more and 24,000 with 1 billion won or more, up 15.2% and 13.6%, respectively, from the previous quarter.
The investment banking (IB) institutional sector recorded quarterly fee revenue of 97.2 billion won. It maintained the No. 1 position with a 30.9% market share in equity capital markets (ECM) bookrunning. It also ranked first in initial public offering (IPO) bookrunning with a 37.4% share. It likewise holds the industry's top spot as lead manager of financial bonds (FB) with a 32.0% share.
In the asset management institutional sector, trading and investment gains and related interest balance improved 21.5% from the previous quarter to 424.2 billion won. Despite a trend of rising interest rates, through strategic asset allocation it achieved 243.0 billion won in trading and investment gains and 181.2 billion won in interest related to asset management. The WM-related interest balance increased 8.1% from the previous quarter to 127.4 billion won, helped by growth in average client deposits and securities credit balances.
Chief Executive Yun Byung-un said, "These record quarterly results are the outcome of even growth across all divisions, and the revenue diversification and customer base strengthening strategies pursued since I took office are translating into results," adding, "We will cultivate the integrated managed account (IMA) as a new growth engine and deliver productive finance so the capital market can contribute to real-economy growth."
Yun added, "Even amid an uncertain business environment, including Middle East-driven geopolitical risk and heightened interest rate and exchange rate volatility, we will conduct companywide risk management thoroughly and establish ourselves as a securities firm trusted by both shareholders and customers."