[Click eStock] "Samsung Securities Demonstrates Next-Level Profit Scale"

[Asia Economy Reporter Park Jihwan] Korea Investment & Securities evaluated that Samsung Securities' net profit for the first quarter of this year was 289 billion KRW, exceeding market expectations by more than 20%, showing a now larger scale of profit. Accordingly, they maintained the investment opinion of 'Buy' and a target price of 56,000 KRW.

Baek Doosan, a researcher at Korea Investment & Securities, stated, "The first quarter controlling net profit was 289 billion KRW, exceeding market expectations by 22%," and added, "This is a 128% increase compared to the previous quarter."

According to Korea Investment & Securities, Samsung Securities' pure trust fees were 248 billion KRW, a 28% increase from the previous quarter. Domestic stock revenue was 193 billion KRW, up 19% quarter-on-quarter, and overseas stock revenue was 47.8 billion KRW, up 82%.

Financial product sales revenue was 91.2 billion KRW, down 3% from the previous quarter. This was due to a 17% decrease in derivative-linked securities fees caused by a decline in early redemption profits. However, operating profit and financial balance reached 219.7 billion KRW, a 264% increase from the previous quarter. The financial balance increased due to adjustments in credit provision focused on profitability, and operating profit remained solid despite increased interest rate volatility, according to researcher Baek.

Underwriting and advisory fees were 59.7 billion KRW, a 25% increase from the previous quarter. Researcher Baek Doosan explained, "While the equity capital market (ECM) remained solid, structured finance revenue also showed a favorable trend, increasing 18% quarter-on-quarter to 41.5 billion KRW."

The annual net profit for this year is forecasted to be 817.7 billion KRW, a 61% increase compared to the previous year. Researcher Baek said, "Brokerage and asset management performance are highly sensitive," adding, "The high growth of overseas stock-focused brokerage and the solid performance of operating profit despite increased volatility are positive." He further added, "Investment banking (IB) is positive in terms of performance visibility due to increased structured finance revenue."

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