Hanyang Securities saw second-quarter net profit rise more than 40% from a year earlier, driven by growth in trading and retail. Broadening its revenue sources from its traditional focus on bonds and the debt capital market (DCM) to exchange-traded fund (ETF) liquidity providing (LP), stock lending brokerage, and margin lending also supported results.
Hanyang Securities said on the 18th that second-quarter net profit rose 44.5% on-year to 19.7 billion won. Operating profit increased 43.3% to 25.5 billion won over the same period, and operating revenue jumped 229.9% to 813.0 billion won.
On a cumulative first-half basis, operating profit was 51.5 billion won and net profit was 38.3 billion won. Compared with the same period last year, they rose 9.1% and 10.4%, respectively.
By segment, trading and retail posted standout growth. The trading segment benefited from a strong domestic stock market and expanded ETF LP operations, while the retail segment led an improvement in results as brokerage commissions from increased stock trading and interest income from margin lending grew.
Hanyang Securities is expanding its business scope beyond its existing trading, DCM, and bond-centered structure into stock lending brokerage and margin lending. To bolster retail competitiveness, it is pushing a revamp of its mobile trading system (MTS) while also increasing financial products such as online special-rate repurchase agreements (RP) and target-conversion funds.
It is also preparing to enter the over-the-counter derivatives business to secure new revenue sources. Centered on the financial engineering division, it is proceeding with procedures to obtain related licenses, and it has strengthened its capital base through asset revaluation and a paid-in capital increase in preparation for the new business.
It also plans to continue its shareholder return policy. Hanyang Securities paid a cash dividend of 1,600 won per common share last year, recording a consolidated payout ratio of 37.4%. This year, it plans to maintain a payout ratio of at least 30% and a minimum dividend of 1,600 won per common share, as presented in its plan to enhance corporate value.
A Hanyang Securities official said, "Since the change of the largest shareholder in June last year, we have been pushing continuous structural improvements, such as reorganizing our business portfolio and building a new growth foundation," adding, "We will further strengthen the competitiveness of our existing businesses and expand our revenue base through new businesses such as over-the-counter derivatives to sustain growth."