Hyundai Motor Securities Q1 'Earnings Surprise'... Operating Profit Up 18% YoY

Net Income Also Increased by 20.7% Year-on-Year to 24.6 Billion KRW

[Asia Economy Reporter Kum Boryeong] Hyundai Motor Securities recorded an 'earnings surprise' in the first quarter.

Hyundai Motor Securities announced on the 23rd that its first-quarter operating profit on a consolidated basis was 33.1 billion KRW. This represents a 17.7% increase compared to 28.1 billion KRW in the same period last year. Compared to the previous quarter, it more than tripled.

Net profit for the period showed a 20.7% increase from the same period last year, reaching 24.6 billion KRW. This also tripled compared to the previous quarter.

By segment, the retail and bond businesses showed remarkable growth. The retail segment saw a surge in brokerage commission profits due to an increase in trading volume driven by a rapid rise in new individual investors. A Hyundai Motor Securities official explained, "We did not join the trend of reducing securities firms' retail networks that has continued since 2016, maintaining our sales network with 15 branches and 6 sub-branches nationwide, focusing on customer services such as activating non-face-to-face trading and innovating the Mobile Trading System (MTS), which proved effective."

The IRP business, which is expanding in line with the retirement timing of baby boomers, continues its growth trend. In the first quarter alone, reserves increased by 127.3 billion KRW, surpassing 700 billion KRW.

In the bond business, a clear preference for safe assets amid an unstable market led to excellent performance across all areas including management and brokerage. Coupled with a favorable interest rate environment, this drove the first-quarter earnings surprise.

The Investment Banking (IB) division also showed solid performance despite a challenging environment. The IB division's first-quarter net operating income was approximately 20 billion KRW, a 2.6% increase compared to the same period last year.

A Hyundai Motor Securities official said, "The first quarter reminded us once again that 'the best defense is the best offense.' It is encouraging that each business division is growing together despite rapidly changing external environmental variables. We plan to continue our efforts to enhance the competitiveness of each business division with thorough risk management at the core."

This content was produced with the assistance of AI translation services.