iM Securities posted weaker results than a year earlier this year in the first half due to higher selling, general and administrative expenses. The brokerage institutional sector grew on the back of increased stock market transaction value, but weakness in product operations and the investment banking (IB) institutional sector dragged down results.
According to the Financial Supervisory Service's electronic disclosure system on the 27th, iM Securities' operating profit in the first half of this year was 51.7 billion won, down 21.7% from the same period last year. Net profit also fell 21.2% to 42.6 billion won.
Net operating revenue rose 9.8% on-year to 178.3 billion won, but selling, general and administrative expenses increased 30.1% to 123.6 billion won, hurting profitability.
On a second-quarter basis, operating profit was 27.5 billion won, up 1.1% from the previous quarter. In contrast, net profit fell 12.1% over the same period to 21.0 billion won.
By business institutional sector, retail led performance. Second-quarter brokerage revenue came to 41.4 billion won, up 167.1% from a year earlier, driven by the increase in stock market transaction value.
In contrast, the product operations institutional sector recorded revenue of only 2.7 billion won amid market volatility and other factors, down 92.0% from a year earlier. IB and project financing (PF) institutional sector revenue also fell 62.3% to 4.9 billion won.
An iM Securities official said, "The retail share of net operating revenue has expanded significantly compared with the past," noting it was "due to the increase in market transaction value." The official added, "We plan to continue expanding our fee revenue base, focusing on digital and overseas stock institutional sectors."