Hi Investment & Securities, Operating Profit Surpasses 110 Billion Won for the First Time in H1

Net Profit of 86.5 Billion KRW in First Half, Achieving 77.5% of Previous Year's Annual Net Profit

[Asia Economy Reporter Park Jihwan] Hi Investment & Securities announced on the 30th that it achieved an operating profit of 116.2 billion KRW on a consolidated basis for the first half of this year.

This is the highest operating profit ever recorded for a half-year period, surpassing 110 billion KRW for the first time. It represents a 108.1% increase compared to the same period last year. Following a record annual operating profit of 134 billion KRW last year, the company has reached the 100 billion KRW mark in operating profit within just half a year, signaling the start of substantial earnings growth. The profit contribution within DGB Financial Group was 26.2%, up 5.1 percentage points from the same period last year, expanding its presence within the group.

The net profit for the first half was 86.5 billion KRW, a 79.8% increase compared to the same period last year, exceeding 77.5% of the previous year's annual net profit. The key management indicator, Return on Equity (ROE), stood at 15.9%, up 5.8 percentage points from the same period last year and 4.7 percentage points from the end of last year, showing steady improvement.

On a non-consolidated basis, operating profit was 116.1 billion KRW and net profit was 84.6 billion KRW, increasing by 111.9% and 95.8% respectively compared to the same period last year. This growth was mainly driven by increased earnings in all business sectors, particularly in the core IB/PF business and asset management business.

The net operating income of the IB/PF business was 137 billion KRW, a 32.8% increase compared to the same period last year. The revenue scale significantly increased due to the continuous strong performance in the real estate finance sector. Major transactions included the Magok MICE complex development project and the Daegu Suseong-gu apartment development project.

The contingent liabilities ratio to equity capital was 103.7%. Due to contingent liability management through sell-down activation, it decreased by 26.3 percentage points compared to the same period last year and by 13.3 percentage points compared to the previous quarter.

In the IB division, the company conducted a direct IPO listing as the sole underwriter of Innodep for the first time in nine years. The ECM division's revenue scale expanded by participating as an underwriting group for CJ CGV convertible bonds, among others.

The net operating income of the brokerage business was 46.4 billion KRW, a 25.7% increase compared to the same period last year. The increase in market trading volume led to higher revenue compared to the same period last year. The number of non-face-to-face (smart branch) customers reached 60,000, a 140.0% increase compared to the same period last year due to activation of the non-face-to-face sector and increased customer inflow.

The net operating income of the asset management business recorded 40 billion KRW, a 267.0% increase compared to the same period last year. The revenue scale of the asset management business greatly expanded due to strong performance in the over-the-counter derivatives management sector and increased valuation gains in proprietary investment such as PI investment.

Kim Kyung-kyu, CEO of Hi Investment & Securities, said, "Thanks to the strong performance across all business divisions, we were able to continue achieving record-high earnings. We will do our best to maintain the current growth momentum by strengthening market responses to the spread of COVID-19, adding new complex branches, and actively creating profit opportunities such as activating US stock trading."

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