Hi Investment & Securities Reports Operating Profit of 49 Billion KRW in Q3... Strong Performance in Core IB and PF Businesses

Q3 Consolidated Cumulative Net Profit of 85.9 Billion KRW... Surpassing Previous Year's Net Profit
Stable Performance in Corporate and Real Estate Finance Maintained

Kim Kyung-kyu, CEO of Hi Investment & Securities

[Asia Economy Reporter Ji-hwan Park] Hi Investment & Securities posted strong results in the third quarter of this year, with consolidated operating profit increasing by 127.9% year-on-year to 49 billion KRW. Net profit also rose by 127.7% during the same period, reaching 37.8 billion KRW. As a result, the cumulative consolidated operating profit for the third quarter reached 104.8 billion KRW, and net profit hit 85.9 billion KRW, already surpassing last year's full-year net profit of 84.9 billion KRW.

Despite the spread of the novel coronavirus disease (COVID-19), stable performance was achieved in the core existing businesses of corporate finance (IB) and project financing (PF). In particular, it is evaluated that steady growth was maintained throughout the year, centered on these core business sectors.

The performance of the IB and PF sectors continued with real estate PF business results, achieving net operating revenue of 51.1 billion KRW in the third quarter, a 39.2% increase compared to 36.7 billion KRW in the same period last year.

Especially, Hi Investment & Securities' real estate finance division diversified its business sites into non-apartment housing and maximized profitability through discovering high-quality deals and short-term sales (sell-downs). A representative real estate PF transaction includes the Daejeon Bokyong-dong Knowledge Industry Center PF.

Other business divisions such as brokerage, bond management, and proprietary investment (PI) also performed well. This year, the brokerage division saw a significant expansion in commission brokerage revenue due to increased trading volume in the domestic stock market. It recorded net operating revenue of 24.2 billion KRW in the third quarter, a 146.9% increase compared to 9.8 billion KRW in the same period last year.

The asset management division also achieved stable operating income in the bond management sector through arbitrage trading. Supported by improved sales and trading (S&T) division earnings, including gains from proprietary investment (PI) valuation and over-the-counter derivatives income, it achieved net operating revenue of 19.7 billion KRW in the third quarter. This represents an 18.0% increase compared to 16.7 billion KRW in the same period last year.

Wealth management (WM) income, interest, and other income sectors also showed increases compared to the same period last year, contributing to the strong third-quarter performance. On the 26th of last month, Hi Investment & Securities opened its fifth combined branch, the DIGNITY Centum City Center, in Centum City, Haeundae-gu, Busan, in partnership with DGB Daegu Bank. The company plans to continue opening additional combined branches at strategic locations in the future.

A representative from Hi Investment & Securities stated, "We will do our best to maintain stable profit growth by focusing on thorough risk management in the remaining fourth quarter."

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