Samsung Securities, Strong Earnings and Attractive Dividends

[Asia Economy Reporter Song Hwajeong] Samsung Securities recorded solid earnings in the third quarter of this year and is also expected to have attractive dividend prospects.

According to the Financial Supervisory Service's electronic disclosure system on the 21st, Samsung Securities posted an operating profit of 316.9 billion KRW in the third quarter, a 165% increase compared to the same period last year. This is the largest quarterly performance on record. Im Heeyeon, a researcher at Shinhan Financial Investment, analyzed, "They delivered a surprise earnings performance that greatly exceeded market consensus," adding, "Thanks to the low volatility in profit and loss in the trading division, they achieved a significant profit improvement compared to competitors."

Strong profit generation is expected in the fourth quarter and next year as well. Yu Geuntak, a researcher at Kiwoom Securities, said, "Although the average daily trading volume has somewhat decreased compared to the previous quarter entering the fourth quarter, even if brokerage commission income across securities firms declines compared to the previous quarter, Samsung Securities will show differentiation from other companies in terms of costs," and analyzed, "Among large securities firms, Samsung Securities has a high proportion of retail-related profits and is free from issues such as unsold overseas real estate and related assets, which were the most affected by COVID-19 in the investment banking (IB) sector, giving it a cost advantage over other firms."

Baek Doosan, a researcher at Korea Investment & Securities, forecasted, "Contrary to concerns, domestic and overseas stock trading volumes are maintaining a solid level, and due to the rise in European stock markets, derivative operation performance is expected to remain strong until the first half of next year."

Expectations for dividends are also increasing. Researcher Yu explained, "With the annual net profit expected to be at the highest level this year and considering last year's dividend payout ratio (38%), a high dividend yield of 7.0% is expected at the current stock price level." Kim Eungap, a researcher at IBK Investment & Securities, also said, "Considering the pace of profit growth up to the third quarter and the possibility of maintaining the dividend payout ratio, dividends per share (DPS) and dividend yield exceeding forecasts can be sufficiently expected."

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