iM Securities' net profit and operating profit for the first half of this year fell more than 20% from a year earlier. Operating revenue more than tripled as transactions in financial products and derivatives increased sharply, but related expenses also rose.
According to iM Securities' semiannual report on the 14th, consolidated net profit for the first half of this year was 42.6 billion won, down 21.2% from 54.1 billion won in the same period last year. Operating profit was 51.7 billion won, down 21.7% from 66.1 billion won a year earlier. In contrast, operating revenue was 4.2379 trillion won, up 257.5%.
Profit also declined when looking only at the second quarter. Consolidated net profit was 20.9 billion won, down 21.8% from a year earlier, and operating profit was 27.5 billion won, down 16.3%. Over the same period, operating revenue rose about 260% to 2.5781 trillion won.
First-half top-line growth was driven by an expansion in transactions of financial products and derivatives. Revenue related to financial products was 2.718 trillion won, up about 505% from a year earlier, and profit related to derivatives was 1.2094 trillion won, up 148.1%. Fee revenue also increased 88.4% to 126 billion won. However, interest revenue fell 3.6% to 158.6 billion won.
Along with the expansion in transactions, related expenses also rose sharply. First-half operating expenses were 4.1861 trillion won, up about 274% from 1.1192 trillion won a year earlier. As expenses related to financial products and losses related to derivatives both increased, the rise in operating revenue did not translate into higher profit.
The brokerage division benefited from increased stock market transactions. First-half commission revenue from brokerage was 76.3 billion won, up sharply from 27.8 billion won a year earlier. In the wealth management division, assets under custody for collective investment securities totaled 23 trillion won, trust custody totaled 5.6 trillion won, and wrap account custody totaled 300 billion won. Handling fees for collective investment securities were 5.7 billion won, trust fees 700 million won, and wealth management fees 3.3 billion won.
In the investment banking (IB) division, first-half underwriting and arrangement fees came to 7.3 billion won. Mandated offering amounts totaled 13 trillion won, and underwriting amounts totaled 17 trillion won.