[Click eStock] "Surprise Earnings" Korea Financial Group Expected to Surpass 1 Trillion Won Net Profit This Year

1Q Net Profit 401.8 Billion Won... Record Quarterly High
Strong Performance Across All Sectors from Brokerage to IB and ECM

[Asia Economy Reporter Minwoo Lee] With Korea Financial Group posting a 'surprise performance' in the first quarter of this year, there are forecasts that its annual net profit will exceed 1 trillion won.

On the 18th, Daishin Securities raised its forecast for Korea Financial Group's annual net profit this year by 15.5% to 1.12 trillion won. Along with this, the target stock price was also raised by 8.7% to 125,000 won. The investment rating was maintained as a buy. The closing price on the previous day was 103,000 won.

This is interpreted as a result of the 'surprise performance' that greatly exceeded expectations in the first quarter. Korea Financial Group recorded a controlling shareholder net profit of 401.8 billion won in the first quarter of this year. This marks a turnaround to profit compared to the same period last year and a 17.3% increase compared to the previous quarter. It also exceeded the market consensus of 350.6 billion won by 14.6%. This is the highest quarterly profit ever.

Excellent performance was achieved across all sectors. Brokerage commission income reached 159.9 billion won as the first quarter trading volume exceeded 30 trillion won. This is an increase of 58.1% compared to the same period last year and 45.7% compared to the previous quarter. Not only domestic stock commissions but also overseas stock commission income increased by 70.2% year-on-year, totaling 34.4 billion won.

Asset management commission income surged 80.1% compared to the first quarter of last year, reaching 55.2 billion won. It was explained that the increase in wrap account sales had a significant impact. Corporate finance (IB) income also set a record high, increasing 95.7% from the first quarter of last year to 167.6 billion won. Researcher Hyejin Park of Daishin Securities explained, "The strong performance in equity capital markets (ECM), including co-lead management of SK Bioscience, and a significant increase in project financing (PF) advisory fees contributed to this. Since last year, PF advisory fees have stood out, generating more than twice the average quarterly revenue."

She continued, "Despite concerns, trading income showed a strong trend with over 100 billion won in revenue due to various dividend inflows. Korea Investment Partners also recorded a consolidated profit of 16.2 billion won from the sale gains as major investments such as Hughes Games and Hyper Games were liquidated," she analyzed.

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