Kiwoom Securities, Growing Expectations for Record Annual Performance Since Inception

Operating Profit of 355.5 Billion KRW in Q3... Ranked No.1 in Securities Industry

[Asia Economy Reporter Oh Ju-yeon] Kiwoom Securities announced on the 18th that it ranked first in the domestic securities industry for Q3 consolidated operating profit and net profit. The ROE (Return on Equity), which indicates a company's profit-generating ability relative to its equity capital, also recorded 27.1%, achieving the top position in the industry.

Kiwoom Securities achieved a quarterly record high with Q3 consolidated operating profit increasing by 314% year-on-year to 355.5 billion KRW, and net profit rising by 295% to 263.4 billion KRW.

This surpassed the previous quarterly record high achieved in Q2 (operating profit of 314 billion KRW, net profit of 219.9 billion KRW) within just one quarter.

The cumulative operating profit for Q3 reached 679.8 billion KRW, and net profit was 492.8 billion KRW, significantly exceeding the 473.7 billion KRW and 362.8 billion KRW recorded in 2019, respectively, bringing the company close to achieving its highest annual performance since its founding.

The ROE (annualized), a capital efficiency indicator, stood at 27.1%, demonstrating a significant gap compared to the industry average and proving the highest level of profit-generating capability.

As a financial platform operator, Kiwoom Securities has maintained the No. 1 market share in the domestic stock market for 15 consecutive years. It has expanded its market dominance by diversifying its business portfolio and revenue structure within the retail sector, not only through its established domestic stock brokerage but also by increasing the proportion of overseas stocks and overseas derivatives recently.

The average daily trading volume, which recorded 31.1 trillion KRW in Q3, showed a slight slowdown in October but rebounded to 30.1 trillion KRW in November, showing an upward trend.

Investor deposits, which once exceeded 60 trillion KRW in Q3, decreased to 47 trillion KRW last month but have recently recovered to 56 trillion KRW. Along with this, the number of new accounts opened through Kiwoom Securities this year exceeded 2.67 million by mid-November. The explosive increase in new account openings has led to growth in customer deposits and active accounts, contributing to a substantial increase in retail division profits.

Beyond the retail division, despite the deteriorated business environment due to the COVID-19 pandemic, the IB division has maintained steady growth in corporate bond underwriting and real estate finance. The wholesale division recorded outstanding performance in stock and bond brokerage for corporations as well as over-the-counter derivatives. The investment management division, focusing on reducing profit volatility and strengthening risk management, is expanding the proportion of medium-risk, medium-return assets. Across all business divisions, balanced growth and revenue diversification are being achieved.

A Kiwoom Securities official stated, "We are expanding our dominance not only through business diversification across all operating divisions but also by diversifying the revenue portfolio within the retail division. In the future, we will evolve into the best asset management financial platform by bringing WM services into the mainstream through an online asset management platform beyond stocks."

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