The securities subsidiary of Korea Investment Holdings(071050), Korea Investment & Securities Co., posted results in the first half of this year that were close to last year's full-year profit.
On the 6th, Korea Investment & Securities Co. said in a preliminary earnings filing that it recorded 2.1701 trillion won in operating profit on a consolidation basis for the first half. That was up 89.1% from a year earlier. Net profit for the same period rose 68.9% to 1.7311 trillion won.
This is on par with last year's full-year operating profit. Last year, Korea Investment & Securities Co.'s operating profit and net profit on a consolidation basis were 2.3427 trillion won and 2.0135 trillion won, respectively.
Second-quarter results drove the strong first-half performance. Korea Investment & Securities Co.'s second-quarter operating profit on a consolidation basis jumped 92.38% from a year earlier to 1.2102 trillion won. It set a new record high for a quarterly basis. Second-quarter revenue rose 94.66% to 12.8956 trillion won, and net profit increased 64.02% to 946.4 billion won.
By segment, brokerage (BK) contributed 41.2%, trading 27%, investment banking (IB) 16%, and wealth management (WM) 15.8%. Korea Investment & Securities Co. said, "Competitiveness in the retail channel connects to IB deal sourcing, and investment capabilities in turn lead to stable revenue from retail financial products, establishing an organic synergy structure."
First, thanks to a strong stock market, brokerage commission revenue increased 44.2% from the previous quarter. In the wealth management segment, commissions rose 106.8% on robust sales of financial products such as issuance-backed notes, integrated managed accounts (IMA), and beneficiary certificates. The investment banking segment and the trading segment also maintained solid results.